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To the","page_number":14,"box":{"x":69,"y":774,"width":819,"height":11}},{"id":"5dde2b42-2c38-48e2-9e2b-91c0e7ee811d","block_type":"box","text":"extent the Fund uses CFTC Derivatives, it intends to do so below such prescribed levels and will not market itself as","page_number":14,"box":{"x":69,"y":789,"width":827,"height":11}},{"id":"3330470f-11da-4835-b852-f22f31705bf5","block_type":"box","text":"a “commodity pool” or a vehicle for trading such instruments. Accordingly, BlackRock has claimed an exclusion from","page_number":14,"box":{"x":69,"y":804,"width":827,"height":12}},{"id":"a66a06d5-2fb7-4c10-bcdb-aa587958a395","block_type":"box","text":"the definition of the term “commodity pool operator” under the Commodity Exchange Act (“CEA”) pursuant to Rule","page_number":14,"box":{"x":68,"y":819,"width":812,"height":12}},{"id":"89a81938-d208-4cbe-a3bd-986ebeb514da","block_type":"box","text":"4.5 under the CEA. BlackRock is not, therefore, subject to registration or regulation as a “commodity pool operator”","page_number":14,"box":{"x":69,"y":835,"width":825,"height":11}},{"id":"d3623bc7-93c8-4897-8f6b-4b2992dc6e03","block_type":"box","text":"under the CEA in respect of the Fund.","page_number":14,"box":{"x":69,"y":850,"width":265,"height":11}},{"id":"f8163469-8545-4a97-9299-084d80081632","block_type":"box","text":"I-5","page_number":14,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"5746acce-3055-4e6c-8a80-1c2f551c0869","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":14,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4fbe7f5f-8745-4f44-8929-be927e2694c5","block_type":"box","text":"II. 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Concentrate its investments in a par ticular industry, as that term is used in the Investment Company Act.","page_number":15,"box":{"x":135,"y":173,"width":770,"height":11}},{"id":"e16a2fb8-d18d-4d01-b125-6c9fe4b415fc","block_type":"box","text":"2. Borrow money, except as permitted under the Investment Company Act.","page_number":15,"box":{"x":134,"y":196,"width":529,"height":11}},{"id":"9e7d515e-2737-43b7-bf88-3d25b4b49cac","block_type":"box","text":"3. Issue senior securities to the extent such issuance would violate the Investment Company Act.","page_number":15,"box":{"x":134,"y":219,"width":694,"height":11}},{"id":"5d969fc3-c654-491f-9822-7fc54cc60e8c","block_type":"box","text":"4. 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Underwrite securities issued by others, except to the extent that the sale of por tfolio securities by the","page_number":15,"box":{"x":134,"y":309,"width":746,"height":11}},{"id":"69c8f79d-c414-4cc9-9a81-0abe4e33af32","block_type":"box","text":"Fund may be deemed to be an underwriting or as otherwise permitted by applicable law.","page_number":15,"box":{"x":102,"y":325,"width":627,"height":11}},{"id":"cffbdc66-6169-43f6-961d-dbc05fc984ee","block_type":"box","text":"6. Purchase or sell commodities or commodity contracts, except as permitted by the Investment Company","page_number":15,"box":{"x":134,"y":347,"width":757,"height":11}},{"id":"6abf14b6-a795-467d-a488-5c389aad6dd4","block_type":"box","text":"Act.","page_number":15,"box":{"x":101,"y":362,"width":25,"height":9}},{"id":"93b46efb-8c4c-47a1-96ee-75f33f875eb7","block_type":"box","text":"7. 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The Commission staff has taken the position","page_number":15,"box":{"x":68,"y":528,"width":811,"height":12}},{"id":"53e42f2c-66db-42ac-8425-9a09663dea6e","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":15,"box":{"x":68,"y":543,"width":833,"height":12}},{"id":"945d0b20-b2db-4c5c-8fc9-f00a36db12e5","block_type":"box","text":"the same industry or group of industries constitutes concentration. It is possible that interpretations of concentration","page_number":15,"box":{"x":68,"y":559,"width":836,"height":11}},{"id":"8875ba92-7482-4505-866d-e6580e23c04c","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":15,"box":{"x":69,"y":574,"width":815,"height":11}},{"id":"8f00388c-53dd-4284-bdfe-b4308a659fcb","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":15,"box":{"x":70,"y":589,"width":813,"height":11}},{"id":"e0a65163-3485-4c89-bb53-9dfe1b023318","block_type":"box","text":"securities of the U.S. Government and its agencies or instrumentalities; securities of state, territory, possession or","page_number":15,"box":{"x":69,"y":604,"width":823,"height":11}},{"id":"57092708-feb1-4174-9892-d41bcc173b9b","block_type":"box","text":"municipal governments and their authorities, agencies, instrumentalities or political subdivisions; and repurchase","page_number":15,"box":{"x":69,"y":619,"width":809,"height":11}},{"id":"1731a790-2040-4279-a3d0-ef3cebf73006","block_type":"box","text":"agreements collateralized by any such obligations. Accordingly, issuers of the foregoing securities will not be","page_number":15,"box":{"x":69,"y":634,"width":772,"height":12}},{"id":"626e63b9-f8b7-42e4-aa4d-b631e526092b","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":15,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"81e3ac4a-4041-4a60-afe1-c8cbde5a4385","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":15,"box":{"x":67,"y":664,"width":829,"height":12}},{"id":"3af9a6b2-7497-463a-bfd6-efde2641b803","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":15,"box":{"x":69,"y":680,"width":805,"height":11}},{"id":"5ed3c756-792b-437d-8ed7-f261d7732f43","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":15,"box":{"x":69,"y":695,"width":840,"height":11}},{"id":"f59d83cb-c98f-4ead-8c94-6e2abdaf651a","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":15,"box":{"x":69,"y":710,"width":803,"height":11}},{"id":"27e4993b-a791-4c01-8548-3cc4c44e702a","block_type":"box","text":"indexes, and/or as defined by Fund management. 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(The","page_number":15,"box":{"x":70,"y":793,"width":836,"height":11}},{"id":"8d557d5a-c405-457f-8125-00d3e5c5cbd7","block_type":"box","text":"Fund’s total assets include the amounts being borrowed.) To limit the risks attendant to borrowing, the Investment","page_number":15,"box":{"x":70,"y":808,"width":816,"height":11}},{"id":"9cc29d05-a9e0-465c-aa25-da90ca38c845","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":15,"box":{"x":69,"y":823,"width":812,"height":12}},{"id":"477f62c3-4364-4593-b763-c7c4f6bb0b96","block_type":"box","text":"borrowings. Asset coverage means the ratio that the value of the Fund’s total assets (including amounts borrowed),","page_number":15,"box":{"x":69,"y":838,"width":824,"height":12}},{"id":"bb489533-2485-4e3c-b575-309ea3b315aa","block_type":"box","text":"minus liabilities other than borrowings, bears to the aggregate amount of all borrowings. Borrowing money to","page_number":15,"box":{"x":69,"y":853,"width":775,"height":12}},{"id":"82daa17a-3eba-41dc-950b-0793b24fca4a","block_type":"box","text":"increase por tfolio holdings is known as “leveraging.” Cer tain trading practices and investments, such as reverse","page_number":15,"box":{"x":70,"y":869,"width":801,"height":11}},{"id":"e473fddd-1403-4910-a28c-68dc68d08818","block_type":"box","text":"repurchase agreements, may be considered to be borrowings or involve leverage and thus are subject to the","page_number":15,"box":{"x":69,"y":884,"width":772,"height":11}},{"id":"34686801-4f97-48b7-9fd0-8f2987f07d86","block_type":"box","text":"Investment Company Act restrictions. In accordance with Rule 18f–4 under the Investment Company Act, when the","page_number":15,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"18a9ca58-d976-40d1-938f-84c4aafd2b7f","block_type":"box","text":"I-6","page_number":15,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"3cebb0cf-d4f9-4f00-a92b-3730d6644b26","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":15,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"52ec9254-d0ef-4e28-80a9-3c12c90fb608","block_type":"box","text":"Fund engages in reverse repurchase agreements and similar financing transactions, the Fund may either (i) maintain","page_number":16,"box":{"x":70,"y":45,"width":828,"height":11}},{"id":"62158737-f5e8-450f-8060-675046e59958","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":16,"box":{"x":69,"y":60,"width":803,"height":11}},{"id":"ef095d89-dd3a-4761-80d1-04e0b158ca40","block_type":"box","text":"(ii) treat such transactions as “derivatives transactions” and comply with Rule 18f–4 with respect to such","page_number":16,"box":{"x":69,"y":75,"width":751,"height":11}},{"id":"b71ae468-cceb-415b-bdab-75e95a8c86af","block_type":"box","text":"transactions. Shor t-term credits necessary for the settlement of securities transactions and arrangements with","page_number":16,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"b5ac044b-fca9-481b-ad48-e197a4cb002c","block_type":"box","text":"respect to securities lending will not be considered to be borrowings under the policy. Practices and investments that","page_number":16,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"877bc54e-1eb4-407e-a053-f236e022e42c","block_type":"box","text":"may involve leverage but are not considered to be borrowings are not subject to the policy.","page_number":16,"box":{"x":69,"y":120,"width":643,"height":12}},{"id":"d4cf380d-18ab-47a7-8de7-4561206afd71","block_type":"box","text":"With respect to the fundamental policy relating to underwriting set for th in (5) above, the Investment Company","page_number":16,"box":{"x":101,"y":143,"width":788,"height":11}},{"id":"c53a0aab-27b4-48bc-be87-b7a205679467","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":16,"box":{"x":68,"y":158,"width":840,"height":11}},{"id":"8fc3ef7a-c7e1-4bc0-828e-11d2cb15e912","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":16,"box":{"x":70,"y":173,"width":808,"height":11}},{"id":"d3bfbb2e-54c7-4e2f-a1ae-53796c60382f","block_type":"box","text":"commitments of up to 25% of its assets under cer tain circumstances. Those circumstances currently are that the","page_number":16,"box":{"x":69,"y":188,"width":811,"height":11}},{"id":"ece90397-fb4b-4b25-85ab-d995954240ff","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":16,"box":{"x":69,"y":203,"width":838,"height":12}},{"id":"6a082dba-1c6e-4ca9-bec7-911d6acb0246","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":16,"box":{"x":68,"y":218,"width":818,"height":12}},{"id":"108bc983-af69-4c8f-bb11-90b1ae509597","block_type":"box","text":"fund engaging in transactions involving the acquisition or disposition of por tfolio securities may be considered to be","page_number":16,"box":{"x":68,"y":234,"width":826,"height":11}},{"id":"c4406645-4d77-4f45-8a91-2b9557f21937","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":16,"box":{"x":69,"y":249,"width":822,"height":11}},{"id":"a6e702b6-4a5c-4410-8a80-93965783c1a0","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":16,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"5e06cf23-bded-430f-9817-04ebdf8bc10d","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":16,"box":{"x":69,"y":279,"width":823,"height":11}},{"id":"5cad61c4-ae00-427d-915c-c4dadfc409f6","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":16,"box":{"x":68,"y":294,"width":796,"height":11}},{"id":"6ac6224d-6e74-4b2f-b063-4e13c6281ce7","block_type":"box","text":"underwriter under the Securities Act or is otherwise engaged in the underwriting business to the extent permitted by","page_number":16,"box":{"x":69,"y":309,"width":830,"height":11}},{"id":"9516d29f-ff87-4cbe-8c68-46b352bd6ae1","block_type":"box","text":"applicable law.","page_number":16,"box":{"x":69,"y":325,"width":102,"height":10}},{"id":"126439e5-fe98-490d-aa23-14c63180d6c3","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":16,"box":{"x":101,"y":347,"width":778,"height":11}},{"id":"561c0ebb-1668-46a7-b5c3-3a51dd2cf7f9","block_type":"box","text":"does not prohibit the fund from making loans (including lending its securities); however, Commission staff","page_number":16,"box":{"x":69,"y":362,"width":756,"height":11}},{"id":"e6a984c4-363f-4754-8f9e-51585ae2346a","block_type":"box","text":"interpretations currently prohibit funds from lending more than one-third of their total assets (including lending its","page_number":16,"box":{"x":70,"y":377,"width":807,"height":12}},{"id":"7b9b3be2-1e40-495c-8643-004afc7925b0","block_type":"box","text":"securities), except through the purchase of debt obligations or the use of repurchase agreements. In addition,","page_number":16,"box":{"x":69,"y":392,"width":784,"height":12}},{"id":"c005cf8a-567a-4c2f-8fef-16fe395fce9f","block_type":"box","text":"collateral arrangements with respect to options, forward currency and futures transactions and other derivative","page_number":16,"box":{"x":69,"y":407,"width":791,"height":12}},{"id":"74f5c668-062e-4b67-8987-11b5a0e73fe6","block_type":"box","text":"instruments (as applicable), as well as delays in the settlement of securities transactions, will not be considered","page_number":16,"box":{"x":70,"y":423,"width":803,"height":11}},{"id":"59000add-e55a-44aa-ba73-d9d936cfbc34","block_type":"box","text":"loans.","page_number":16,"box":{"x":70,"y":438,"width":40,"height":9}},{"id":"344057ec-23d1-49b3-b621-32e19c3cb132","block_type":"box","text":"The Fund is currently classified as a diversified fund under the Investment Company Act. This means that the","page_number":16,"box":{"x":101,"y":460,"width":777,"height":12}},{"id":"b7e6a0fe-7758-4700-9e98-d9dcdc8684f8","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":16,"box":{"x":70,"y":475,"width":751,"height":12}},{"id":"6f7d08cd-6b38-4a4c-a6a5-5a12b68ef31a","block_type":"box","text":"Government, its agencies or instrumentalities and (ii) securities of other investment companies) if, with respect to","page_number":16,"box":{"x":69,"y":491,"width":813,"height":11}},{"id":"b6f87aa6-4701-4973-ba3b-71bb88684a87","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":16,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"5b6bb397-4d2f-4f4b-a0fa-7c893e4a4bb0","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":16,"box":{"x":69,"y":521,"width":781,"height":11}},{"id":"7806fad3-1b75-48a5-ba95-8994f61749a3","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":16,"box":{"x":69,"y":536,"width":759,"height":11}},{"id":"e30c36cb-4630-44cd-9c67-69afd5480753","block_type":"box","text":"Investment Company Act, the Fund cannot change its classification from diversified to non-diversified without","page_number":16,"box":{"x":70,"y":551,"width":774,"height":11}},{"id":"43361c61-00f1-440a-8137-2f498d1993a5","block_type":"box","text":"shareholder approval.","page_number":16,"box":{"x":69,"y":566,"width":153,"height":11}},{"id":"13d71deb-ec19-4dab-82f1-0af7444ee28a","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":16,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"1ab824dc-87f2-46f6-9cf6-3846f0a465cf","block_type":"box","text":"approval, the Fund may not:","page_number":16,"box":{"x":69,"y":604,"width":197,"height":11}},{"id":"f3753840-3a06-4db9-910b-aba5ee7752c3","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":16,"box":{"x":134,"y":627,"width":742,"height":11}},{"id":"98d66599-4d05-4878-bec2-8430f1329710","block_type":"box","text":"Company Act. As a matter of policy, however, the Fund will not purchase shares of any registered open-end","page_number":16,"box":{"x":102,"y":642,"width":759,"height":11}},{"id":"bbfff38f-5fbb-49e1-bd58-62a9ea06702b","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":16,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"e3907235-2f2b-4d44-bd01-d023db86ec49","block_type":"box","text":"funds” provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are","page_number":16,"box":{"x":101,"y":672,"width":761,"height":11}},{"id":"15f6717f-3796-4029-a95c-7e603bb087e1","block_type":"box","text":"purchased by another investment company investor in reliance on the provisions of subparagraph (G) of Section","page_number":16,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"58042ee0-8c3b-4b0a-93d0-40fb2f34e80e","block_type":"box","text":"12(d)(1).","page_number":16,"box":{"x":102,"y":702,"width":60,"height":11}},{"id":"8511c9da-d108-4ece-a12b-5cd3fc79bd0f","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":16,"box":{"x":134,"y":725,"width":765,"height":11}},{"id":"c5748a8c-5095-4aff-8b6e-0b5a93784ecb","block_type":"box","text":"Prospectus and SAI, as amended from time to time, and applicable law.","page_number":16,"box":{"x":102,"y":740,"width":509,"height":11}},{"id":"cd428fc9-f706-48c4-afb9-477c5f80e6a2","block_type":"box","text":"Unless otherwise indicated or with respect to policies adopted pursuant to Rule 35d-1 under the Investment","page_number":16,"box":{"x":102,"y":763,"width":771,"height":11}},{"id":"6051e3e9-7f23-4baf-bfb9-cba4bd64b99f","block_type":"box","text":"Company Act, all limitations under the Fund’s fundamental or non-fundamental investment restrictions apply only at","page_number":16,"box":{"x":69,"y":778,"width":822,"height":11}},{"id":"1f76125d-2b49-4f5e-b6fd-fec4ffe245d1","block_type":"box","text":"the time that a transaction is under taken. Any change in the percentage of the Fund’s assets invested in cer tain","page_number":16,"box":{"x":68,"y":793,"width":803,"height":11}},{"id":"7b4bc626-1ce8-4dcc-b789-10c60edabea1","block_type":"box","text":"securities or other instruments resulting from market fluctuations or other changes in the Fund’s total assets will not","page_number":16,"box":{"x":69,"y":808,"width":835,"height":11}},{"id":"e417bdd6-167d-408c-9cfe-b323632f056e","block_type":"box","text":"require the Fund to dispose of an investment until BlackRock determines that it is practicable to sell or close out the","page_number":16,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"63877f81-cfaa-4f73-aa73-7540c4094bd9","block_type":"box","text":"investment without undue market or tax consequences.","page_number":16,"box":{"x":70,"y":839,"width":393,"height":10}},{"id":"e193b9b8-3f6a-418b-b120-e16970c96891","block_type":"box","text":"I-7","page_number":16,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"02fabae5-eca8-4e4b-96c8-20d564db06e2","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":16,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4c8b16c6-daed-48cc-8376-1296c3b630a3","block_type":"box","text":"III. Information on Trustees and Officers","page_number":17,"box":{"x":69,"y":45,"width":290,"height":9}},{"id":"0b26275d-8c18-4899-9b90-3e5ab764085d","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Trustee”), thir teen of whom are not “interested persons” of","page_number":17,"box":{"x":101,"y":67,"width":788,"height":11}},{"id":"e535e157-6763-4a7a-bc03-e3d3fe946062","block_type":"box","text":"the Trust as defined in the Investment Company Act (the “Independent Trustees”). The registered investment","page_number":17,"box":{"x":68,"y":82,"width":779,"height":12}},{"id":"e193fdfb-8890-43e2-93df-b9acfaf2efd0","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":17,"box":{"x":69,"y":98,"width":837,"height":11}},{"id":"2fab90d3-d443-470b-bb7e-6472151df1c6","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":17,"box":{"x":70,"y":113,"width":793,"height":11}},{"id":"294b0276-f95f-44b2-a4f8-eaa580eaef42","block_type":"box","text":"Complex”). The Trust is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":17,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"d5ca211b-b5a5-418d-8edd-a3c8929fea9d","block_type":"box","text":"The Trustees also oversee as board members the operations of the other open-end registered investment companies","page_number":17,"box":{"x":68,"y":143,"width":837,"height":11}},{"id":"2e39942e-0994-49ea-9a75-c77771713f00","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":17,"box":{"x":70,"y":158,"width":335,"height":11}},{"id":"ae8bf564-67b4-4849-a76b-d44db79365c2","block_type":"box","text":"The Board has overall responsibility for the oversight of the Trust and the Fund. The Chair of the Board is an","page_number":17,"box":{"x":101,"y":181,"width":769,"height":11}},{"id":"3c9d20ee-75c2-496b-94a5-7b0dcacb3491","block_type":"box","text":"Independent Trustee, and the Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The","page_number":17,"box":{"x":70,"y":196,"width":827,"height":11}},{"id":"166bf561-f8bd-4cea-96e3-2ebf4f8dc4cf","block_type":"box","text":"Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance","page_number":17,"box":{"x":70,"y":211,"width":821,"height":11}},{"id":"64c20040-66f9-430e-b493-4da8491f707a","block_type":"box","text":"Committee, a Per formance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board","page_number":17,"box":{"x":69,"y":226,"width":835,"height":11}},{"id":"6d432484-8d39-4c9e-b251-171c1208de2e","block_type":"box","text":"is to preside at all meetings of the Board and to act as a liaison with service providers, officers, attorneys and other","page_number":17,"box":{"x":70,"y":241,"width":830,"height":11}},{"id":"d5b477eb-0412-452a-b818-df5495cfea6d","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee per forms a similar role with respect to the","page_number":17,"box":{"x":68,"y":256,"width":789,"height":12}},{"id":"7b012d9c-08d1-456c-a6e3-d8d26c6eb219","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also per form such other functions as may be","page_number":17,"box":{"x":69,"y":271,"width":810,"height":12}},{"id":"9b4380b0-0245-4c59-b21a-fe059894247c","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":17,"box":{"x":69,"y":286,"width":809,"height":12}},{"id":"32a24fb5-a9bd-405e-9157-d011ef5e453a","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":17,"box":{"x":70,"y":302,"width":794,"height":11}},{"id":"d3a6a945-919a-439b-bd4e-906446750291","block_type":"box","text":"regular meetings five times a year, and may hold special meetings if required before its next regular meeting. Each","page_number":17,"box":{"x":69,"y":317,"width":816,"height":11}},{"id":"5fa62769-e641-4f3e-9db6-a33a97bca97d","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and repor ts","page_number":17,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"c6d97251-52d1-4572-8fbb-a118a77f15a0","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":17,"box":{"x":70,"y":347,"width":811,"height":11}},{"id":"96024bea-0bd9-4107-882d-2f892cde082c","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":17,"box":{"x":68,"y":362,"width":809,"height":11}},{"id":"8f2127d8-10b3-4cbf-aa2a-4b7474938d19","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":17,"box":{"x":69,"y":377,"width":825,"height":12}},{"id":"1542c05e-a41c-4f62-bea0-ef95701cfe48","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":17,"box":{"x":69,"y":392,"width":441,"height":12}},{"id":"31379f7b-dccc-4036-b37b-a9e8f2875343","block_type":"box","text":"The Board has engaged the Manager to manage the Fund on a day-to-day basis. The Board is responsible for","page_number":17,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"6350470b-5d88-4bb4-804c-8645d8468278","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":17,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"8505470e-fc91-48fd-bfd4-038c4afcaba8","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Trust’s char ter, and the Fund’s","page_number":17,"box":{"x":68,"y":445,"width":820,"height":11}},{"id":"33c1644c-8f2f-43db-9b26-0b654567ab00","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s per formance, operations","page_number":17,"box":{"x":70,"y":460,"width":812,"height":12}},{"id":"38b5b108-aeec-4952-a5b3-d4453b1ddd78","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":17,"box":{"x":69,"y":475,"width":819,"height":12}},{"id":"f7acc1a2-cfa5-47cd-bc92-1d3d0ca66c1a","block_type":"box","text":"the operations of the Fund.","page_number":17,"box":{"x":68,"y":491,"width":192,"height":11}},{"id":"12fa0c9c-f23f-4640-be89-bb85b9cef863","block_type":"box","text":"Day-to-day risk management with respect to the Fund is the responsibility of the Manager or of sub-advisers or","page_number":17,"box":{"x":102,"y":513,"width":785,"height":12}},{"id":"8b6b71fa-4d96-4e80-93fe-dc7da09546bd","block_type":"box","text":"other service providers (depending on the nature of the risk), subject to the supervision of the Manager. The Fund is","page_number":17,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"c4a37c03-315f-45d0-97a8-6474f6312270","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":17,"box":{"x":69,"y":543,"width":832,"height":12}},{"id":"d1f831eb-1ba1-4f57-8969-46845410f658","block_type":"box","text":"there are a number of risk management functions per formed by the Manager and the sub-advisers or other service","page_number":17,"box":{"x":68,"y":559,"width":820,"height":11}},{"id":"d6d90938-2acf-4052-895b-9a71a17a275b","block_type":"box","text":"providers, as applicable, it is not possible to eliminate all of the risks applicable to the Fund. Risk oversight forms","page_number":17,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"01cdfeb1-315b-4141-bfb4-1ee8657e2377","block_type":"box","text":"par t of the Board’s general oversight of the Fund and is addressed as par t of various Board and Committee","page_number":17,"box":{"x":70,"y":589,"width":767,"height":11}},{"id":"03c18c35-8ae4-444b-83c2-8a5bafc0603b","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews repor ts from, among others, management, the","page_number":17,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"f7a0962c-39ea-4b4e-adfd-6b12e2179984","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":17,"box":{"x":70,"y":619,"width":803,"height":11}},{"id":"5bfd77ee-0ad3-408c-a9cf-d2670f97aa8b","block_type":"box","text":"adviser or its affiliates, as appropriate, regarding risks faced by the Fund and management’s or the service provider’s","page_number":17,"box":{"x":69,"y":634,"width":840,"height":12}},{"id":"6c8e6c65-c769-40a2-b2bf-aea5affd9ea9","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees,","page_number":17,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"0ace01d1-dc05-4bb6-90c2-87bada17c119","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":17,"box":{"x":69,"y":664,"width":817,"height":12}},{"id":"b81dfa4c-a902-48a9-8c0c-1ced4c625f6a","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":17,"box":{"x":69,"y":680,"width":812,"height":11}},{"id":"13a855d5-292a-4c07-a338-b4848c896ebb","block_type":"box","text":"testing of the Trust’s compliance program and repor ts to the Board regarding compliance matters for the Fund and","page_number":17,"box":{"x":68,"y":695,"width":818,"height":11}},{"id":"6fd45deb-daa7-47ab-929e-8ff5709057fa","block_type":"box","text":"its service providers. The Independent Trustees have engaged independent legal counsel to assist them in","page_number":17,"box":{"x":70,"y":710,"width":759,"height":11}},{"id":"1d5d9289-5765-4a7a-a28f-466219ae548e","block_type":"box","text":"per forming their oversight responsibilities.","page_number":17,"box":{"x":70,"y":725,"width":299,"height":11}},{"id":"a865fdca-1688-47fc-8200-5fa1c70491df","block_type":"box","text":"Audit Committee.","page_number":17,"box":{"x":101,"y":748,"width":122,"height":9}},{"id":"1bf6f956-e5a2-4d17-b0c5-4ee61742c872","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":17,"box":{"x":229,"y":748,"width":673,"height":11}},{"id":"5d335230-cd1d-41f8-bd01-4c6ac15b4721","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Trustees.","page_number":17,"box":{"x":68,"y":763,"width":831,"height":11}},{"id":"ed2ef5f2-019f-466b-9216-c206be80a8bf","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":17,"box":{"x":68,"y":778,"width":820,"height":11}},{"id":"af3b476f-77b8-49ad-af01-7ec920d6669d","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":17,"box":{"x":68,"y":793,"width":823,"height":11}},{"id":"7ee880f8-807d-4d03-9dd2-1bb30d1d8cbe","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":17,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"373eeba7-1769-47d2-b0a3-78457755afd4","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":17,"box":{"x":70,"y":823,"width":825,"height":11}},{"id":"6926f307-7820-40a7-98ed-1a8801eb1db9","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":17,"box":{"x":70,"y":838,"width":807,"height":12}},{"id":"56ff4008-8963-41b3-829c-9dc805b9e373","block_type":"box","text":"fees for the Fund; (3) review the conduct and results of each independent audit of the Fund’s annual financial","page_number":17,"box":{"x":68,"y":853,"width":781,"height":11}},{"id":"1131ff51-037d-40e3-bdb6-8d51a52435b3","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":17,"box":{"x":69,"y":869,"width":834,"height":11}},{"id":"913d97f5-6a24-4ed6-a679-8a4799680379","block_type":"box","text":"regarding the accounting or financial repor ting policies and practices of the Fund and the internal controls of the Fund","page_number":17,"box":{"x":69,"y":884,"width":838,"height":11}},{"id":"db23176b-25ce-4acf-970c-1f165cb58984","block_type":"box","text":"and cer tain service providers; (5) oversee the per formance of the Fund’s Independent Registered Public Accounting","page_number":17,"box":{"x":69,"y":899,"width":825,"height":11}},{"id":"c3abc155-1824-4065-8d7b-d714533b3834","block_type":"box","text":"I-8","page_number":17,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"35229abd-27ea-40aa-93b4-bfc0c6212591","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":17,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"32be6209-1c53-40d2-92a0-5de582ab3dfd","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":18,"box":{"x":70,"y":45,"width":809,"height":11}},{"id":"db5897d0-ce49-4316-9bc6-9de0567c6549","block_type":"box","text":"per formance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":18,"box":{"x":70,"y":60,"width":815,"height":11}},{"id":"1f6acba4-e116-4ec3-b33f-d151b7223748","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial repor ting and controls;","page_number":18,"box":{"x":69,"y":75,"width":774,"height":11}},{"id":"5aa5429e-85bc-4373-8d75-f211610e40e5","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":18,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"64c2c831-5020-4bbd-9078-fa2f19e3ef8a","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":18,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"9bbee068-69a9-4293-a258-63e6525aa534","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written char ter for the Audit Committee.","page_number":18,"box":{"x":69,"y":120,"width":812,"height":12}},{"id":"c20a9330-184b-4d57-b848-c7f901f321a9","block_type":"box","text":"During the fiscal year ended May 31, 2026, the Audit Committee met four times.","page_number":18,"box":{"x":70,"y":135,"width":574,"height":12}},{"id":"4203e900-39bb-43dd-aaac-d934718901dd","block_type":"box","text":"Governance and Nominating Committee.","page_number":18,"box":{"x":102,"y":158,"width":286,"height":11}},{"id":"cdd7d22c-fb16-49a5-80b6-0eb5783e87da","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":18,"box":{"x":394,"y":158,"width":464,"height":11}},{"id":"2b12af03-8425-4e51-8e84-c7727330e875","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton,","page_number":18,"box":{"x":70,"y":173,"width":838,"height":11}},{"id":"70bf1b85-5229-4618-ba8f-baa446ed5836","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Trustees. The principal responsibilities of the","page_number":18,"box":{"x":70,"y":188,"width":784,"height":11}},{"id":"f151d846-d661-4fd8-a81e-bec399a04441","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Trustees of the Trust and","page_number":18,"box":{"x":69,"y":203,"width":803,"height":12}},{"id":"c3f35fea-d99d-47aa-89cc-0082db9adf48","block_type":"box","text":"recommend Independent Trustee nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":18,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"43c24d04-fd3f-45a1-8cf5-fe37f9254889","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":18,"box":{"x":70,"y":234,"width":828,"height":11}},{"id":"9a11d49e-fdc5-4bc7-a41a-879321b2e064","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":18,"box":{"x":70,"y":249,"width":809,"height":11}},{"id":"5da29471-e1cd-46cc-985d-9356966616c5","block_type":"box","text":"and make recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters","page_number":18,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"5e3090ee-d84d-4905-aa5e-f7fa2f2ec762","block_type":"box","text":"and develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to","page_number":18,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"0fd6aa4f-49ef-440d-b577-8e794ebed987","block_type":"box","text":"Board policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of","page_number":18,"box":{"x":70,"y":294,"width":813,"height":11}},{"id":"7c451554-356e-45d0-8cd6-8e67ec9a0896","block_type":"box","text":"ethics as they relate to Independent Trustees; and (7) under take such other duties and responsibilities as may from","page_number":18,"box":{"x":69,"y":309,"width":829,"height":11}},{"id":"69e409ce-d2f5-4d9b-be15-466df1bf736e","block_type":"box","text":"time to time be delegated by the Board to the Governance Committee. The Governance Committee may consider","page_number":18,"box":{"x":68,"y":324,"width":804,"height":12}},{"id":"5993f590-db10-4178-81e0-4edb694c1e97","block_type":"box","text":"nominations for Trustees made by the Fund’s shareholders as it deems appropriate. Under the Trust’s Amended and","page_number":18,"box":{"x":69,"y":339,"width":832,"height":12}},{"id":"0f6c9f44-3263-4092-9cac-1f7634200d6e","block_type":"box","text":"Restated Code of Regulations (“Bylaws”), shareholders must follow cer tain procedures to nominate a person for","page_number":18,"box":{"x":70,"y":355,"width":801,"height":11}},{"id":"15d28cd4-8a2e-4147-8d41-d57b2a38bb87","block_type":"box","text":"election as a Trustee at a shareholder meeting at which Trustees are to be elected. Under these advance notice","page_number":18,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"5e72832d-2b24-486c-95fe-2f546bad51b1","block_type":"box","text":"procedures, notice of the proposed nominee to the Secretary of the Trust must be delivered to or mailed and","page_number":18,"box":{"x":70,"y":385,"width":776,"height":11}},{"id":"2e751d41-d008-496a-ab5b-c7bb0b748759","block_type":"box","text":"received at the principal executive offices of the Trust not later than the close of business on the fifth day following","page_number":18,"box":{"x":69,"y":400,"width":821,"height":11}},{"id":"c18d1241-da79-495f-97bf-cbd91a8b6b82","block_type":"box","text":"the day on which notice of the date of the meeting was mailed or public disclosure of the date of the meeting was","page_number":18,"box":{"x":68,"y":415,"width":812,"height":11}},{"id":"1fd5b4c2-351e-40b5-ac13-fb4632f63a8b","block_type":"box","text":"made, whichever first occurs. The Trust’s Bylaws provide that notice of a proposed nomination must include cer tain","page_number":18,"box":{"x":69,"y":430,"width":823,"height":11}},{"id":"a36731d7-f2eb-44f8-8a74-f8201671549a","block_type":"box","text":"information about the shareholder and the nominee, as well as cer tain other information, including a written consent","page_number":18,"box":{"x":70,"y":445,"width":832,"height":12}},{"id":"3ba02db1-c3ef-4ba5-a289-486c2a95df83","block_type":"box","text":"of the proposed nominee to serve if elected. Reference is made to the Trust’s Bylaws for more details. The Board","page_number":18,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"91b76a00-ca6a-4acc-b90d-87148a753ce2","block_type":"box","text":"has adopted a written char ter for the Governance Committee. During the fiscal year ended May 31, 2026, the","page_number":18,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"9d3e0f26-cdfe-4892-9320-206aec7b8bdc","block_type":"box","text":"Governance Committee met ten times.","page_number":18,"box":{"x":69,"y":491,"width":274,"height":9}},{"id":"406e8e3e-74c7-405d-9705-d585ca079ff8","block_type":"box","text":"Compliance Committee.","page_number":18,"box":{"x":102,"y":513,"width":168,"height":11}},{"id":"9efd373a-4425-4ab3-82a1-41872c137c74","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":18,"box":{"x":276,"y":513,"width":629,"height":11}},{"id":"68e01fcf-db5f-4819-9454-090d508f90e8","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":18,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"3321ae86-e072-4a8c-b1f8-3d18530894fa","block_type":"box","text":"whom are Independent Trustees. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":18,"box":{"x":68,"y":543,"width":771,"height":12}},{"id":"d711ee4b-1b2c-4eb2-93ae-f14fafef965d","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Trust, the fund-related activities of","page_number":18,"box":{"x":69,"y":559,"width":835,"height":11}},{"id":"b2c65c6a-062d-4870-88ec-01655cc12522","block_type":"box","text":"BlackRock and any sub-adviser and the Trust’s third-par ty service providers. The Compliance Committee’s","page_number":18,"box":{"x":70,"y":574,"width":754,"height":11}},{"id":"06940547-8224-4657-9473-8350deb9c5f5","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Trust and its","page_number":18,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"5ab5893b-dea0-48e9-951d-e55b1dfb1ee9","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":18,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"e64d26a8-29bd-4b84-9489-47fd27d56fc9","block_type":"box","text":"and, where appropriate, recommend policies concerning the Trust’s compliance with applicable law; (3) review","page_number":18,"box":{"x":69,"y":619,"width":785,"height":11}},{"id":"5dfbc9dd-ea09-4bec-9240-834b42b729b9","block_type":"box","text":"repor ts from, oversee the annual per formance review of, and make cer tain recommendations and determinations","page_number":18,"box":{"x":69,"y":634,"width":811,"height":11}},{"id":"0bdbe03d-dcdb-436c-9b77-5879c08a9045","block_type":"box","text":"regarding the Trust’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":18,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"2af82f35-47dc-45e3-81c0-e9897e3241ba","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":18,"box":{"x":69,"y":664,"width":812,"height":12}},{"id":"1faf3f86-2d2e-4d39-8bbf-1bd066667836","block_type":"box","text":"and (4) under take such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":18,"box":{"x":69,"y":680,"width":825,"height":11}},{"id":"d2e9a46e-41a7-4d86-a872-df6f4f5de448","block_type":"box","text":"Compliance Committee. The Board has adopted a written char ter for the Compliance Committee. During the fiscal","page_number":18,"box":{"x":69,"y":695,"width":811,"height":11}},{"id":"63d990ff-2352-4cd3-b8f3-e3a894133234","block_type":"box","text":"year ended May 31, 2026, the Compliance Committee met four times.","page_number":18,"box":{"x":68,"y":710,"width":502,"height":11}},{"id":"851be749-9a77-4888-8513-611854e98637","block_type":"box","text":"Per formance Oversight Committee.","page_number":18,"box":{"x":102,"y":732,"width":248,"height":12}},{"id":"78e297e8-48ec-45dd-99b4-04c4cb5022d4","block_type":"box","text":"The members of the Per formance Oversight Committee (the “Per formance","page_number":18,"box":{"x":356,"y":732,"width":531,"height":12}},{"id":"fc3abc3a-0579-4b72-bace-f92286a8f6ec","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton, Neil A.","page_number":18,"box":{"x":69,"y":748,"width":829,"height":11}},{"id":"fea15093-1f83-4543-8fe0-7421210c26d1","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Trustees. The Per formance Oversight Committee’s purpose is","page_number":18,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"431810fe-c5ec-44f4-a61e-405cc711fa3c","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to its agreed","page_number":18,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"75569dce-4c92-4b2d-b0d4-c94283fc8513","block_type":"box","text":"upon per formance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":18,"box":{"x":69,"y":793,"width":816,"height":11}},{"id":"3aaa2929-7d90-439e-869e-542b1bfea408","block_type":"box","text":"agreements. The Per formance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":18,"box":{"x":69,"y":808,"width":782,"height":11}},{"id":"4abc2797-6988-4ab3-9914-beed72fb4b64","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":18,"box":{"x":70,"y":823,"width":829,"height":11}},{"id":"d0da94d5-da5b-4a75-af1c-973e9dfdb4a1","block_type":"box","text":"and practices; (2) review information on the Fund’s investment per formance; (3) review information on appropriate","page_number":18,"box":{"x":69,"y":838,"width":816,"height":11}},{"id":"8217f88b-fa4e-4e34-961a-65fe45f87bf4","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":18,"box":{"x":69,"y":854,"width":803,"height":10}},{"id":"ae742b7c-ff2c-4ba2-b6a1-727e4c3c3e06","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":18,"box":{"x":69,"y":869,"width":827,"height":11}},{"id":"f5f94761-cf11-4eac-a14b-a7dd9a264545","block_type":"box","text":"the Per formance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":18,"box":{"x":68,"y":884,"width":811,"height":11}},{"id":"b993bd9f-6dee-4df1-9bd0-899e7cb403cb","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":18,"box":{"x":69,"y":899,"width":757,"height":11}},{"id":"f609ba8a-1aeb-45ef-9b1f-b2fb55bc96ee","block_type":"box","text":"I-9","page_number":18,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"3ea8f589-6274-4ac3-aaa1-540d7c41bbe5","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":18,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d21fcad4-8fa8-4bba-9ef8-9868d8465549","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":19,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"f69ee71b-0575-4301-9979-434bcb24f4ff","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) under take such other","page_number":19,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"4f68bfce-fda1-4dfc-a316-affbfc2df0a1","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":19,"box":{"x":69,"y":75,"width":780,"height":11}},{"id":"f2e1031e-8566-48ad-83d1-71fabd32e54a","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":19,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"92630012-e46f-4a2b-8267-47c09d59b762","block_type":"box","text":"ended May 31, 2026, the Per formance Oversight Committee met five times.","page_number":19,"box":{"x":69,"y":105,"width":544,"height":11}},{"id":"42cbb6ac-a2f1-4b60-a07c-2d7b0d123528","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":19,"box":{"x":101,"y":128,"width":186,"height":11}},{"id":"1ef862b5-b588-4b24-b4c4-0183b285200d","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":19,"box":{"x":293,"y":128,"width":598,"height":11}},{"id":"a5cc9058-79fd-47d0-94fb-dc76eb71590c","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":19,"box":{"x":70,"y":143,"width":817,"height":11}},{"id":"1a5b6472-252d-459a-8738-cc83fddb92ef","block_type":"box","text":"serves as an interested Trustee. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":19,"box":{"x":69,"y":158,"width":795,"height":11}},{"id":"55ed803d-5641-4617-ae4c-df9f5848e735","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":19,"box":{"x":69,"y":173,"width":788,"height":11}},{"id":"5cc9229d-7934-45b0-8bd5-d3ff9e5d7d51","block_type":"box","text":"meetings of the Board; and (3) exercise such other authority as may from time to time be delegated to the Ad Hoc","page_number":19,"box":{"x":69,"y":188,"width":813,"height":12}},{"id":"c3e4035c-7185-4217-bd62-4e32f2d8d90f","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written char ter for the Ad Hoc Topics Committee. During","page_number":19,"box":{"x":68,"y":203,"width":816,"height":12}},{"id":"4c3cca39-6659-4ede-a80b-c6415461aafc","block_type":"box","text":"the fiscal year ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":19,"box":{"x":68,"y":218,"width":575,"height":12}},{"id":"f7ad5e8d-c43b-418c-86c1-314b974ad8a4","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":19,"box":{"x":101,"y":241,"width":771,"height":11}},{"id":"34d42d02-2755-4b4c-8c79-6de2eb207616","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":19,"box":{"x":69,"y":256,"width":827,"height":11}},{"id":"8c1ae66a-b093-45e4-a653-263948147e44","block_type":"box","text":"of Policy”). The Board believes that each Independent Trustee satisfied, at the time he or she was initially elected or","page_number":19,"box":{"x":69,"y":271,"width":830,"height":12}},{"id":"4b8e1b46-95e5-45fd-9cc9-cf3288c9fa18","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Fur thermore,","page_number":19,"box":{"x":69,"y":286,"width":825,"height":12}},{"id":"b2169fb1-10d2-4cb1-a29f-7d782b76ad48","block_type":"box","text":"in determining that a par ticular Independent Trustee was and continues to be qualified to serve as a Trustee, the","page_number":19,"box":{"x":70,"y":302,"width":807,"height":11}},{"id":"aba0ad13-7a58-4655-9ed7-6aa9ebc25473","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":19,"box":{"x":70,"y":317,"width":787,"height":11}},{"id":"c498b2eb-2350-4501-8c43-2fd35315d3e2","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":19,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"3d988f8e-af14-47dd-8154-3cc37d05fd09","block_type":"box","text":"which allow the Board to operate effectively in governing the Trust and protecting the interests of shareholders.","page_number":19,"box":{"x":68,"y":347,"width":794,"height":11}},{"id":"0e9a6c95-0ab4-44c8-bca6-fae64e03beec","block_type":"box","text":"Among the attributes common to all Independent Trustees are their ability to review critically, evaluate, question and","page_number":19,"box":{"x":68,"y":362,"width":829,"height":11}},{"id":"3531a203-220d-483e-a0a8-0deced8554c6","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":19,"box":{"x":69,"y":377,"width":823,"height":11}},{"id":"0d32491b-9db3-40a7-bfa8-7c9c118233ec","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":19,"box":{"x":69,"y":392,"width":771,"height":12}},{"id":"a97e1747-5df6-4c4d-867b-b42505de6e9e","block_type":"box","text":"business judgment in the per formance of their duties as Trustees.","page_number":19,"box":{"x":69,"y":407,"width":473,"height":12}},{"id":"117f8890-9482-40b3-8e51-c03ce4045964","block_type":"box","text":"Each Trustee’s ability to per form his or her duties effectively is evidenced by his or her educational background","page_number":19,"box":{"x":102,"y":430,"width":792,"height":11}},{"id":"3998680f-6898-4454-aab9-2d7eefe34cc7","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":19,"box":{"x":69,"y":445,"width":807,"height":12}},{"id":"1f43259d-5855-40d5-8d35-c8e6f03e1803","block_type":"box","text":"board member of the Trust and the other funds in the BlackRock Fund Complexes (and any predecessor funds), other","page_number":19,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"a5847c05-15c7-4c58-8e8e-d28b5e255c9d","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":19,"box":{"x":70,"y":475,"width":759,"height":12}},{"id":"a018439c-9eea-42b5-836c-ff13debb4d44","block_type":"box","text":"par ticipation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":19,"box":{"x":70,"y":491,"width":685,"height":11}},{"id":"cff4908b-357c-4024-bd6a-4e6525847f8c","block_type":"box","text":"ad hoc","page_number":19,"box":{"x":762,"y":491,"width":47,"height":9}},{"id":"33486a04-60e9-4393-8bb2-5987723e9eb3","block_type":"box","text":"committees","page_number":19,"box":{"x":814,"y":491,"width":82,"height":9}},{"id":"f404dd2b-49d8-41bd-a29f-82ef08b0237d","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":19,"box":{"x":68,"y":506,"width":395,"height":11}},{"id":"28617726-dee9-4581-b0f1-ec83115211c8","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":19,"box":{"x":101,"y":528,"width":751,"height":11}},{"id":"7040eb64-8f34-4f03-a205-38490d35f1cb","block_type":"box","text":"suppor t the conclusion that each Trustee should serve on the Board.","page_number":19,"box":{"x":69,"y":544,"width":492,"height":10}},{"id":"5d0691e5-c862-4324-a485-9db9e7cfd6f6","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":19,"box":{"x":68,"y":572,"width":409,"height":9}},{"id":"31ebd97b-ff64-4b2d-8f0a-16c930e16d4d","block_type":"box","text":"Independent Trustees","page_number":19,"box":{"x":70,"y":588,"width":154,"height":11}},{"id":"295f057b-60ac-4329-bde9-b55de5efc50f","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":19,"box":{"x":69,"y":603,"width":781,"height":12}},{"id":"b3db4d11-2cf3-4519-852a-312329ba554b","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":19,"box":{"x":265,"y":618,"width":604,"height":12}},{"id":"6cc5717f-ec92-44fd-8f03-3f50c0e79783","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":19,"box":{"x":265,"y":634,"width":623,"height":11}},{"id":"26589025-dc4c-4645-a916-60f7a98761d6","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":19,"box":{"x":265,"y":649,"width":637,"height":11}},{"id":"fce28d4c-bbad-44cc-abfd-12b33e6f68cf","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":19,"box":{"x":265,"y":664,"width":631,"height":11}},{"id":"ccafb0e8-7087-475f-b0fb-1591d6f5ab2a","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the Nor th American","page_number":19,"box":{"x":264,"y":679,"width":626,"height":10}},{"id":"b6e61e79-42d5-48b3-bacc-917d5c376f36","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":19,"box":{"x":265,"y":694,"width":639,"height":11}},{"id":"26c23180-06bc-4e52-9eae-41c414274660","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":19,"box":{"x":264,"y":709,"width":637,"height":11}},{"id":"4ce74b63-5663-42bf-a937-3d2175549161","block_type":"box","text":"exper tise across asset classes and strategies, and insight and perspective on the","page_number":19,"box":{"x":265,"y":725,"width":586,"height":11}},{"id":"c2773181-66eb-497b-a226-3f3d0a78522d","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":19,"box":{"x":265,"y":739,"width":640,"height":12}},{"id":"ba8feed9-94f5-456a-ba1f-493e95a26488","block_type":"box","text":"Committee and the Per formance Oversight Committee.","page_number":19,"box":{"x":265,"y":755,"width":389,"height":11}},{"id":"e2e15e7a-d1f4-4903-8ab3-bd85a76f2775","block_type":"box","text":"I-10","page_number":19,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"ed263fed-dbca-44fe-ad4b-64385657ac4f","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":19,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b79b3cc5-83a7-4bff-bd4a-2d010c1c1037","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":20,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"033f18c7-c355-47c7-8b87-061e2193c970","block_type":"box","text":"Susan J. Car ter Susan J. Car ter has over 35 years of experience in investment management. She has","page_number":20,"box":{"x":69,"y":65,"width":806,"height":12}},{"id":"559e69f2-8e5c-48b7-96a2-89944439804d","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":20,"box":{"x":265,"y":81,"width":604,"height":11}},{"id":"4b31ea2c-5a78-4cc3-8a25-1764d07827c8","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":20,"box":{"x":265,"y":96,"width":632,"height":11}},{"id":"f0add664-6390-4694-ae80-233e79cb92f2","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":20,"box":{"x":265,"y":111,"width":562,"height":9}},{"id":"a3016a28-9966-4ef8-81e6-0d5578906f4c","block_type":"box","text":"Ms. Car ter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":20,"box":{"x":265,"y":126,"width":616,"height":10}},{"id":"0e76173b-a895-48fc-80b2-20563e3f64d7","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":20,"box":{"x":264,"y":141,"width":591,"height":11}},{"id":"c13a391a-ffcf-4ae6-9945-a0da64320485","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":20,"box":{"x":265,"y":156,"width":641,"height":11}},{"id":"6c1ba6c6-d819-42c3-83b1-bddbb4d7b93f","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":20,"box":{"x":264,"y":171,"width":638,"height":12}},{"id":"720365ce-860b-42f9-85fd-a01b36899398","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":20,"box":{"x":265,"y":186,"width":584,"height":12}},{"id":"6cb077ae-432d-4a29-8d62-8d41b1579bc3","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":20,"box":{"x":265,"y":201,"width":630,"height":12}},{"id":"83b52dc5-4737-44a1-bc84-eb78f1204246","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":20,"box":{"x":265,"y":217,"width":634,"height":11}},{"id":"e710e088-255e-4a09-b330-a9b2277cd410","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":20,"box":{"x":265,"y":232,"width":599,"height":11}},{"id":"a9db5303-8fd2-49ff-b0b9-0b2d9816893f","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":20,"box":{"x":265,"y":247,"width":407,"height":11}},{"id":"9db47c6b-fd0c-4984-83f7-1b8130f9f2fd","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":20,"box":{"x":69,"y":269,"width":837,"height":12}},{"id":"d23e6903-c9a9-4227-88de-97828a52ab34","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":20,"box":{"x":265,"y":285,"width":638,"height":11}},{"id":"683a9f12-3227-4995-a11f-f3b3cb54ff00","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":20,"box":{"x":265,"y":300,"width":642,"height":11}},{"id":"0f8e9b56-0ac4-40f5-ae8f-49a29b168049","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":20,"box":{"x":265,"y":314,"width":601,"height":12}},{"id":"431e7487-1a4d-4d77-83be-1e1222173513","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":20,"box":{"x":265,"y":330,"width":595,"height":11}},{"id":"5b43d37d-149f-4787-b471-8f8faef20283","block_type":"box","text":"perspective on the markets and the economy.","page_number":20,"box":{"x":265,"y":345,"width":323,"height":11}},{"id":"735dfec8-da8a-4a2d-bd4e-63f1ca2d8c50","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":20,"box":{"x":70,"y":368,"width":798,"height":11}},{"id":"e84a97f3-9971-47a8-b789-2f9a321fec54","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":20,"box":{"x":265,"y":383,"width":631,"height":11}},{"id":"88c32990-924f-4494-b70a-86f1d3d4de24","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":20,"box":{"x":265,"y":398,"width":633,"height":11}},{"id":"42828635-f215-408f-88fa-7ac32fec3c6e","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":20,"box":{"x":265,"y":413,"width":628,"height":11}},{"id":"6f1a8082-c0f0-4eff-9394-1be64de139ac","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":20,"box":{"x":265,"y":428,"width":596,"height":12}},{"id":"7ccb7e3a-489e-40c4-80a8-ecbaff333a7d","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial exper t, as such","page_number":20,"box":{"x":265,"y":443,"width":616,"height":12}},{"id":"65bb2193-63bc-4fda-b13d-d39fcc22d13c","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":20,"box":{"x":264,"y":458,"width":368,"height":11}},{"id":"479d45d5-397d-41f0-8fba-f8e4263843a8","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":20,"box":{"x":69,"y":481,"width":777,"height":11}},{"id":"67baddc8-4a0f-4e4c-8322-d774a94a8f4d","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":20,"box":{"x":265,"y":496,"width":613,"height":12}},{"id":"3f5ba4c7-0bb9-45df-82b4-17fd81b7eeb1","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":20,"box":{"x":265,"y":511,"width":563,"height":12}},{"id":"e524a67a-c19e-42d1-8965-fbd4a12af3ab","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":20,"box":{"x":265,"y":527,"width":607,"height":11}},{"id":"011b4de2-007c-4053-8c9f-7e729a1f1284","block_type":"box","text":"par tner at Deloitte and Ar thur Andersen for approximately 17 years. These positions have","page_number":20,"box":{"x":265,"y":542,"width":638,"height":11}},{"id":"68bdd287-8510-4873-8b16-358d1b1f863b","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":20,"box":{"x":265,"y":557,"width":626,"height":11}},{"id":"3b54e225-89e6-4cef-9b10-878652d96b78","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":20,"box":{"x":265,"y":572,"width":563,"height":11}},{"id":"9efb5d40-9a01-4709-8638-4a34c6a998f0","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Trustees prior to becoming an","page_number":20,"box":{"x":265,"y":587,"width":625,"height":11}},{"id":"0e102e6a-0939-4cd0-a750-bfeb0235d6e5","block_type":"box","text":"Independent Trustee. Mr. Jarczyk has been determined by the Audit Committee to be an","page_number":20,"box":{"x":265,"y":602,"width":625,"height":11}},{"id":"c364e6b9-3ad5-4a12-85e5-ab9a61fa4850","block_type":"box","text":"audit committee financial exper t, as such term is defined in the applicable Commission","page_number":20,"box":{"x":265,"y":617,"width":623,"height":11}},{"id":"a6175819-61ab-4867-9b00-fd8b9368e704","block_type":"box","text":"rules.","page_number":20,"box":{"x":265,"y":633,"width":38,"height":8}},{"id":"dda990e1-ec29-4e90-ba5e-c54da638ffca","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":20,"box":{"x":70,"y":655,"width":806,"height":11}},{"id":"9e617dcd-d9af-4025-b085-4879e7c1cd1d","block_type":"box","text":"global exper tise gained through his 35 year career at KPMG, a global professional","page_number":20,"box":{"x":264,"y":670,"width":584,"height":11}},{"id":"04879292-bc20-42a3-a8b0-aed1584e4058","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":20,"box":{"x":265,"y":686,"width":622,"height":11}},{"id":"e98679c6-94c3-465a-aeff-e120a729033b","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":20,"box":{"x":265,"y":700,"width":638,"height":12}},{"id":"a36973ec-d0ad-489b-bb3e-1c70330ef419","block_type":"box","text":"and exper tise in financial repor ting, accounting, auditing, risk management, and","page_number":20,"box":{"x":265,"y":715,"width":570,"height":12}},{"id":"fdec4e76-f78e-48f7-8db1-737ac781e9fd","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":20,"box":{"x":265,"y":731,"width":642,"height":11}},{"id":"0147112f-a679-4f86-994c-03852de46c25","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":20,"box":{"x":265,"y":746,"width":626,"height":11}},{"id":"1387cf4d-1095-4fbf-927d-29f590903098","block_type":"box","text":"industries including professional services, proper ty and casualty reinsurance, insurance,","page_number":20,"box":{"x":265,"y":761,"width":630,"height":11}},{"id":"a509475c-202c-4a4e-a92e-caf886cd60da","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":20,"box":{"x":265,"y":776,"width":602,"height":11}},{"id":"06cbc077-1b3f-4d33-8730-cf5d29b31b76","block_type":"box","text":"technology. Mr. Keizer is a cer tified public accountant and also served on the board of the","page_number":20,"box":{"x":264,"y":791,"width":643,"height":11}},{"id":"2ddd1cb7-b723-4889-9591-9103dfd980f2","block_type":"box","text":"American Institute of Cer tified Public Accountants. Mr. Keizer has been determined by the","page_number":20,"box":{"x":264,"y":806,"width":639,"height":11}},{"id":"487ba9d0-1a0c-463f-8cda-c63e42853869","block_type":"box","text":"Audit Committee to be an audit committee financial exper t, as such term is defined in the","page_number":20,"box":{"x":264,"y":821,"width":641,"height":11}},{"id":"c11b4f5a-6e8c-47b5-a42e-8fba9d7c6f34","block_type":"box","text":"applicable Commission rules.","page_number":20,"box":{"x":265,"y":837,"width":208,"height":10}},{"id":"4e67c2e9-9bb7-4010-a306-a24c3e1f1664","block_type":"box","text":"I-11","page_number":20,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"c2250f1f-750d-4f1d-ad99-7f9a829e04a3","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":20,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0887489d-49db-4c06-b253-a874c5b6b038","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":21,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"bb579001-4495-4d2f-97ec-eb5123a6d285","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":21,"box":{"x":69,"y":65,"width":769,"height":12}},{"id":"10d2beef-ed2b-4f99-8e0e-975ab3dabc75","block_type":"box","text":"investment companies, most recently as a member of the boards of cer tain BlackRock","page_number":21,"box":{"x":265,"y":81,"width":621,"height":11}},{"id":"0f045fcc-a703-4320-90ce-8efe9933db2e","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":21,"box":{"x":265,"y":96,"width":599,"height":11}},{"id":"24bb2dcd-f8d4-4721-9e13-a2bae388340c","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":21,"box":{"x":265,"y":111,"width":641,"height":11}},{"id":"80c9a800-debb-4ffe-930f-b32a6a2a3619","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":21,"box":{"x":264,"y":126,"width":602,"height":11}},{"id":"0ca16f86-e779-4d55-8fe8-326a248584ef","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":21,"box":{"x":264,"y":141,"width":617,"height":11}},{"id":"2761906a-b6e8-49c4-b81c-7139c41a6ad3","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":21,"box":{"x":265,"y":156,"width":629,"height":11}},{"id":"9799b4d4-3a8f-45db-9d2e-d3f64766b0df","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":21,"box":{"x":264,"y":171,"width":628,"height":11}},{"id":"d89dec07-4512-498a-a54a-9879bcd5a3e3","block_type":"box","text":"ar ticles and books on these topics.","page_number":21,"box":{"x":265,"y":187,"width":251,"height":10}},{"id":"3c096ec9-64fb-4ac2-8d07-fa6fcaf87011","block_type":"box","text":"Donald C. Opatrny Donald C. 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He also has","page_number":21,"box":{"x":265,"y":254,"width":603,"height":12}},{"id":"ec1105ae-0323-4cf0-93c3-19b78337ebcb","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":21,"box":{"x":265,"y":269,"width":629,"height":12}},{"id":"d5dbbd94-b13c-4876-a5df-86364b166c06","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":21,"box":{"x":70,"y":292,"width":804,"height":11}},{"id":"26cca072-27bc-4566-b042-2469a87ad23d","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":21,"box":{"x":265,"y":307,"width":552,"height":11}},{"id":"8fd9891b-9d98-4486-9a26-1bcb534dfd5e","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":21,"box":{"x":265,"y":322,"width":636,"height":12}},{"id":"63ce3aa3-0190-4128-8e84-0a806cd4ecea","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":21,"box":{"x":265,"y":338,"width":639,"height":11}},{"id":"154841e1-e7a5-4817-b317-b4a76ef22baa","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":21,"box":{"x":265,"y":353,"width":576,"height":11}},{"id":"76eca4c4-0cb8-4ae5-9bd6-52c0bfe5ff42","block_type":"box","text":"exchanges, and other industry firms. 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More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":21,"box":{"x":265,"y":413,"width":626,"height":11}},{"id":"030c58b3-ff20-48b2-8b80-24870bf0cbfe","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":21,"box":{"x":264,"y":428,"width":608,"height":12}},{"id":"88e241ae-b463-4352-a1a7-9b882462701e","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":21,"box":{"x":265,"y":443,"width":575,"height":12}},{"id":"bd60cbb9-8099-46e5-8feb-66b2be5165f3","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":21,"box":{"x":264,"y":459,"width":591,"height":11}},{"id":"8104f70f-80da-43e1-a9ca-16a5ec51cc1e","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":21,"box":{"x":265,"y":474,"width":627,"height":11}},{"id":"46b94099-ada6-435f-8a1b-11ddfe2647af","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":21,"box":{"x":265,"y":489,"width":578,"height":11}},{"id":"53f97bdb-ad21-46a7-8618-813e1b33b219","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":21,"box":{"x":265,"y":504,"width":607,"height":11}},{"id":"e42c3046-0fda-4546-a9a0-2042d90e5f9f","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":21,"box":{"x":265,"y":519,"width":615,"height":11}},{"id":"3347f03b-018d-4cf1-98e2-aa094300b2ad","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":21,"box":{"x":265,"y":534,"width":638,"height":11}},{"id":"ae152d73-3e47-46c8-b0ec-d8e08811e5b1","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":21,"box":{"x":265,"y":549,"width":635,"height":11}},{"id":"1c190dc1-f161-4ae8-b212-a2bea540bfd5","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":21,"box":{"x":265,"y":564,"width":642,"height":12}},{"id":"93deffb2-c2e9-4358-9ecf-912e94512451","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":21,"box":{"x":265,"y":580,"width":627,"height":11}},{"id":"7f21ac68-0cda-4a84-9197-d5d713046ea2","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":21,"box":{"x":265,"y":595,"width":628,"height":11}},{"id":"284740ad-c5d5-4a70-99fc-744dc76c6f09","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":21,"box":{"x":265,"y":610,"width":460,"height":11}},{"id":"0626034f-ce5e-4098-9c43-8fb0dc22a722","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":21,"box":{"x":70,"y":632,"width":818,"height":12}},{"id":"63756cd6-77a8-4da7-9903-0e004e47acb6","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":21,"box":{"x":264,"y":647,"width":603,"height":12}},{"id":"8eb5d96f-a8f9-45ea-907c-bae127355098","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":21,"box":{"x":265,"y":663,"width":606,"height":11}},{"id":"9c70453f-d80b-4579-9a4d-fc57db46d08d","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":21,"box":{"x":265,"y":678,"width":608,"height":9}},{"id":"f34f07ea-5707-46b6-8a18-f762c7c486b2","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":21,"box":{"x":265,"y":693,"width":626,"height":11}},{"id":"a8f75171-49e0-4ed4-b5b7-7960d3bcefc7","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":21,"box":{"x":265,"y":708,"width":591,"height":11}},{"id":"ea7489e3-8906-4381-a537-a8c1cf10cde3","block_type":"box","text":"various private and non-profit boards.","page_number":21,"box":{"x":264,"y":723,"width":265,"height":11}},{"id":"d2a96c80-0c8b-4e86-abd2-abcd310e93e9","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":21,"box":{"x":70,"y":746,"width":833,"height":11}},{"id":"fb3427a3-b7d8-479a-a3ea-5d8c466a78dd","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":21,"box":{"x":265,"y":761,"width":638,"height":11}},{"id":"bf89f1a3-375f-43bd-8fb0-b121841a8aa1","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":21,"box":{"x":265,"y":776,"width":608,"height":11}},{"id":"cbff26a4-a3cf-4c8b-a4ad-fb29b8615665","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":21,"box":{"x":264,"y":791,"width":645,"height":11}},{"id":"f49bd087-0da9-464b-9fe0-0081acd3a467","block_type":"box","text":"firm’s executive committee. He also served as Bessemer’s Chief Investment Officer for 8","page_number":21,"box":{"x":264,"y":806,"width":639,"height":9}},{"id":"71b664a7-3522-4c2d-a141-cde26b0c5eb9","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":21,"box":{"x":264,"y":821,"width":573,"height":12}},{"id":"0b5cea57-36d8-46ea-8e06-1ccc7635fc17","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":21,"box":{"x":265,"y":836,"width":625,"height":12}},{"id":"49897ba6-86c7-4401-8450-bb4f2213b581","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. These positions","page_number":21,"box":{"x":265,"y":852,"width":610,"height":11}},{"id":"92c81eec-8568-4ee0-b454-7f62eaefcb14","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":21,"box":{"x":265,"y":867,"width":642,"height":11}},{"id":"3ab13113-f806-4078-99d2-c66fd308550d","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as consultant to the Independent","page_number":21,"box":{"x":265,"y":882,"width":583,"height":11}},{"id":"247ad58a-6399-452f-acdc-48d446336c92","block_type":"box","text":"Trustees prior to becoming an Independent Trustee.","page_number":21,"box":{"x":264,"y":897,"width":369,"height":11}},{"id":"364df371-f0fc-4484-a4f6-e1dedd23904b","block_type":"box","text":"I-12","page_number":21,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"676a6260-b072-4591-8657-994bc5e2fe7a","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":21,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"db42e8bd-a5d1-4a91-b091-542e7666ef8b","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":22,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"2b036e60-a0a2-4729-bf1e-7099659cfe0d","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":22,"box":{"x":70,"y":65,"width":807,"height":12}},{"id":"402ce608-38fc-49bd-aba3-60c0c9ad5a0e","block_type":"box","text":"companies, most recently as a member of the boards of cer tain BlackRock-advised Funds","page_number":22,"box":{"x":264,"y":81,"width":641,"height":11}},{"id":"4673e148-4c54-470c-af93-07421ba3b44c","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":22,"box":{"x":265,"y":96,"width":618,"height":11}},{"id":"da57e0a7-fb8a-429c-8199-ea058860c24e","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":22,"box":{"x":265,"y":111,"width":594,"height":11}},{"id":"32b3d38b-5892-4d6f-aa5c-6f7b204e6f29","block_type":"box","text":"accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to","page_number":22,"box":{"x":265,"y":126,"width":639,"height":11}},{"id":"1a5d2822-1a6b-4ad1-9174-ab64be09fcb6","block_type":"box","text":"be an audit committee financial exper t, as such term is defined in the applicable","page_number":22,"box":{"x":265,"y":141,"width":575,"height":11}},{"id":"39a549ec-6453-4b91-8f60-8cf08748e180","block_type":"box","text":"Commission rules.","page_number":22,"box":{"x":265,"y":156,"width":131,"height":9}},{"id":"fada8471-1514-4f28-bb31-957b1cd0fe70","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":22,"box":{"x":69,"y":179,"width":808,"height":11}},{"id":"bd3c7713-2379-459f-b251-abeaa4dfe5fb","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liber ty Square Asset","page_number":22,"box":{"x":265,"y":194,"width":630,"height":11}},{"id":"db1d6de2-f512-485e-809b-48498a22bf00","block_type":"box","text":"Management, LP / Steel Par tners Japan Asset Management, LP from 1998 to 2015, an","page_number":22,"box":{"x":265,"y":209,"width":627,"height":11}},{"id":"e2800e08-3b10-4c78-b943-9e605e5de197","block_type":"box","text":"investment manager that specialized in long/shor t non-U.S. equity investments, and was","page_number":22,"box":{"x":265,"y":224,"width":632,"height":11}},{"id":"048e6ad8-5eb0-4ba3-a0e0-68c89882ed10","block_type":"box","text":"an owner and General Par tner of Neon Liber ty Capital Management, LLC from 2003 to","page_number":22,"box":{"x":265,"y":239,"width":615,"height":12}},{"id":"3f90d34b-33c6-4afc-bc1f-f50a43088359","block_type":"box","text":"2023, a firm focusing on long/shor t equities in global emerging and frontier markets.","page_number":22,"box":{"x":265,"y":254,"width":608,"height":12}},{"id":"222ba2a3-f3cf-4652-9897-1c8fe58e15b7","block_type":"box","text":"These positions have provided her with insight and perspective on the markets and the","page_number":22,"box":{"x":264,"y":270,"width":620,"height":11}},{"id":"1b420dd5-b9f2-4f8c-a0ac-dccacb0dbc44","block_type":"box","text":"economy. Ms. Walton has been determined by the Audit Committee to be an audit","page_number":22,"box":{"x":265,"y":285,"width":584,"height":11}},{"id":"2243bcc1-43d7-4874-98db-ccf3e59d56b4","block_type":"box","text":"committee financial exper t, as such term is defined in the applicable Commission rules.","page_number":22,"box":{"x":264,"y":300,"width":629,"height":11}},{"id":"784a9e1a-266e-4885-ba7e-0736254d6aaa","block_type":"box","text":"Interested Trustees","page_number":22,"box":{"x":70,"y":323,"width":138,"height":8}},{"id":"16507501-0b82-4d0d-b7a9-e3d4a88e9eac","block_type":"box","text":"Rober t Fairbairn Rober t Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30","page_number":22,"box":{"x":70,"y":338,"width":823,"height":11}},{"id":"45e05f11-5069-4989-bc51-146bbbc953d4","block_type":"box","text":"years of experience in finance and asset management. In par ticular, Mr. Fairbairn’s","page_number":22,"box":{"x":264,"y":353,"width":593,"height":11}},{"id":"6aeaa121-132c-42f0-9d1c-185f24135a90","block_type":"box","text":"positions as Vice Chairman of BlackRock, Inc., Member of BlackRock’s Global Operating","page_number":22,"box":{"x":265,"y":368,"width":629,"height":11}},{"id":"a714d1de-4c62-4e9a-a138-97b1dc0d414a","block_type":"box","text":"Committee and Co-Chair of BlackRock’s Human Capital Committee provide the Board with","page_number":22,"box":{"x":265,"y":383,"width":639,"height":11}},{"id":"14dfee65-5490-452d-869e-5611b0c11934","block_type":"box","text":"a wealth of practical business knowledge and leadership. In addition, Mr. Fairbairn has","page_number":22,"box":{"x":265,"y":398,"width":617,"height":11}},{"id":"4fa169cd-7a34-4e24-98e4-f7346d9c93d0","block_type":"box","text":"global investment management and oversight experience through his former positions as","page_number":22,"box":{"x":264,"y":413,"width":634,"height":11}},{"id":"aa10d57a-7fb9-4b40-a5ec-4d6e4aa496bf","block_type":"box","text":"Member of BlackRock’s Global Executive Committee, Global Head of BlackRock’s Retail","page_number":22,"box":{"x":265,"y":428,"width":624,"height":11}},{"id":"213609df-1527-47a1-8c0c-a9dcda25f67e","block_type":"box","text":"and iShares","page_number":22,"box":{"x":265,"y":443,"width":84,"height":9}},{"id":"752ef9a0-43cf-4537-8057-be452b94c355","block_type":"box","text":"®","page_number":22,"box":{"x":350,"y":444,"width":6,"height":4}},{"id":"74219a20-7cc0-4713-aa00-55ba022a77c2","block_type":"box","text":"businesses, Head of BlackRock’s Global Client Group, Chairman of","page_number":22,"box":{"x":362,"y":443,"width":478,"height":11}},{"id":"b998159c-94e7-493c-9223-f78a1c597f19","block_type":"box","text":"BlackRock’s international businesses and his previous oversight over BlackRock’s","page_number":22,"box":{"x":265,"y":459,"width":585,"height":11}},{"id":"ea5e8174-6332-406b-90dc-5a3e14469a84","block_type":"box","text":"Strategic Par tner Program and Strategic Product Management Group. Mr. Fairbairn also","page_number":22,"box":{"x":265,"y":474,"width":620,"height":11}},{"id":"32bf25e2-edd3-4698-8f6c-842c92547fcf","block_type":"box","text":"serves as a board member for the funds in the BlackRock Fixed-Income Complex.","page_number":22,"box":{"x":265,"y":489,"width":578,"height":11}},{"id":"812256b9-1974-45a4-bd25-922328027e41","block_type":"box","text":"John M. Perlowski John M. 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Mr. Perlowski’s prior position as","page_number":22,"box":{"x":265,"y":587,"width":620,"height":11}},{"id":"a37893c8-5e79-47da-9155-2fa1751c05c2","block_type":"box","text":"Managing Director and Chief Operating Officer of the Global Product Group at Goldman","page_number":22,"box":{"x":265,"y":602,"width":616,"height":11}},{"id":"987d1a81-7e74-43de-9e0d-7bc2262dfb67","block_type":"box","text":"Sachs Asset Management, and his former service as Treasurer and Senior Vice President","page_number":22,"box":{"x":265,"y":617,"width":639,"height":12}},{"id":"3c5f8706-c74f-4fe4-9e10-542b7f66a44f","block_type":"box","text":"of the Goldman Sachs Mutual Funds and as Director of the Goldman Sachs Offshore","page_number":22,"box":{"x":265,"y":632,"width":603,"height":9}},{"id":"5b7344a1-1374-48d0-a4af-4a9230c89d16","block_type":"box","text":"Funds provides the Board with the benefit of his experience with the management","page_number":22,"box":{"x":265,"y":647,"width":582,"height":12}},{"id":"dcd38f56-9b90-4832-8e26-baf73bbab648","block_type":"box","text":"practices of other financial companies. Mr. Perlowski also serves as a board member for","page_number":22,"box":{"x":265,"y":663,"width":632,"height":11}},{"id":"89b9513f-831d-47a7-bf4e-f6bf194ca8b6","block_type":"box","text":"the funds in the BlackRock Fixed-Income Complex. Mr. Perlowski is a member of","page_number":22,"box":{"x":264,"y":678,"width":572,"height":11}},{"id":"61a34b7b-1da4-4e0a-83b3-2ea088466da7","block_type":"box","text":"BlackRock’s Global Executive Committee.","page_number":22,"box":{"x":265,"y":693,"width":294,"height":9}},{"id":"c58ecd61-c2e0-4f12-af8c-70a949d302dc","block_type":"box","text":"Biographical Information","page_number":22,"box":{"x":69,"y":724,"width":178,"height":11}},{"id":"af1dc33e-9db8-4acf-be6f-4491eaac8a04","block_type":"box","text":"Cer tain biographical and other information relating to the Trustees of the Trust is set for th below, including their","page_number":22,"box":{"x":102,"y":747,"width":798,"height":11}},{"id":"f29f9152-66dc-4df2-9ac4-9e641f101da9","block_type":"box","text":"address and year of bir th, principal occupations for at least the last five years, length of time served, total number 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Stern* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":79,"y":132,"width":517,"height":9}},{"id":"095be2da-9db7-42ff-b677-2fe90f8c8c99","block_type":"box","text":"None None","page_number":27,"box":{"x":666,"y":132,"width":192,"height":9}},{"id":"e590a710-3f58-431f-97cd-d212843ac841","block_type":"box","text":"Kenneth L. Urish .","page_number":27,"box":{"x":79,"y":148,"width":126,"height":8}},{"id":"9e453b35-6b92-474c-829a-fc104b8db30e","block_type":"box","text":"................................................","page_number":27,"box":{"x":211,"y":155,"width":385,"height":1}},{"id":"9b798c63-6cb3-4699-b9ec-79057e4a9f48","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":666,"y":147,"width":228,"height":11}},{"id":"8936946b-abee-4615-bf58-97751695a11a","block_type":"box","text":"Claire A. Walton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":79,"y":163,"width":517,"height":8}},{"id":"2ea3d5b0-cda4-4871-a807-9614b5af9099","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":666,"y":162,"width":228,"height":11}},{"id":"f7be98cd-17f3-4846-a08f-33704c84e632","block_type":"box","text":"Interested Trustees","page_number":27,"box":{"x":70,"y":178,"width":138,"height":9}},{"id":"2f8ac9f0-94a7-441e-96b4-efe9d0a37aac","block_type":"box","text":"Rober t Fairbairn","page_number":27,"box":{"x":79,"y":193,"width":113,"height":9}},{"id":"1ec88427-b9b3-41ac-933c-998bf5a13814","block_type":"box","text":"..................................................","page_number":27,"box":{"x":195,"y":200,"width":401,"height":2}},{"id":"3466321b-de34-407f-a184-834093cb9acb","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":666,"y":192,"width":228,"height":11}},{"id":"bf0bcad2-5d4c-4e28-bba4-778ca4e15db4","block_type":"box","text":"John M. Perlowski","page_number":27,"box":{"x":78,"y":208,"width":127,"height":9}},{"id":"807412ec-5235-4834-8263-9cd61f8a1dab","block_type":"box","text":"................................................","page_number":27,"box":{"x":211,"y":215,"width":385,"height":2}},{"id":"7a7beacb-ac48-44f8-aebe-e5c6af4b4fe1","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":666,"y":207,"width":228,"height":11}},{"id":"f9fc17b9-fbe8-4c99-bffb-e1bea80a63f6","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":27,"box":{"x":70,"y":232,"width":782,"height":9}},{"id":"3f2b9645-ccef-4186-a913-d1adf8b6d8cf","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":27,"box":{"x":101,"y":253,"width":767,"height":11}},{"id":"9b3cf143-3fb5-4461-9fb6-a4b2bb76b759","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":27,"box":{"x":69,"y":268,"width":819,"height":12}},{"id":"7fd376df-8156-491f-85ab-97f26b8fb8db","block_type":"box","text":"(and, with respect to Mr. Jarczyk and Mr. Stern, as of April 1, 2026), none of the Independent Trustees of the Trust or","page_number":27,"box":{"x":69,"y":283,"width":839,"height":12}},{"id":"7cf0133e-8264-492b-a127-8cb4d648cf07","block_type":"box","text":"their immediate family members owned beneficially or of record any securities of the Fund’s investment adviser,","page_number":27,"box":{"x":68,"y":298,"width":798,"height":12}},{"id":"9121b553-729e-49e3-8603-dbb18e289ee8","block_type":"box","text":"principal underwriter, or any person directly or indirectly controlling, controlled by, or under common control with such","page_number":27,"box":{"x":70,"y":314,"width":831,"height":11}},{"id":"313d9857-1338-46b1-9ad8-78ca86603394","block_type":"box","text":"entities.","page_number":27,"box":{"x":69,"y":329,"width":56,"height":9}},{"id":"f478ef9e-67ed-489f-8c4c-617e8278434e","block_type":"box","text":"Compensation of Trustees","page_number":27,"box":{"x":69,"y":359,"width":190,"height":11}},{"id":"a57c8b56-30cf-4105-9b2f-30e5e42df33a","block_type":"box","text":"Each Trustee who is an Independent Trustee is paid as compensation an annual retainer of $375,000 per year","page_number":27,"box":{"x":102,"y":381,"width":791,"height":12}},{"id":"dcd09f33-a841-41ee-9ed8-46c9c04a02da","block_type":"box","text":"for his or her services as a board member of the BlackRock-advised Funds in the BlackRock Multi-Asset Complex,","page_number":27,"box":{"x":68,"y":397,"width":810,"height":11}},{"id":"fa50fa80-ffc6-4bf5-ae25-0c8a8108dfeb","block_type":"box","text":"including the Trust, and a $20,000 board meeting fee to be paid for each in-person board meeting attended (and may","page_number":27,"box":{"x":70,"y":411,"width":838,"height":12}},{"id":"14c45b24-6c6e-4eba-a23c-02e75596a407","block_type":"box","text":"receive a board meeting fee for telephonic attendance at board meetings), for up to five board meetings held in a","page_number":27,"box":{"x":69,"y":427,"width":807,"height":11}},{"id":"f2f0cdf8-e4f9-4193-a241-61239687e086","block_type":"box","text":"calendar year (compensation for meetings in excess of this number to be determined on a case-by-case basis),","page_number":27,"box":{"x":69,"y":442,"width":791,"height":11}},{"id":"1acdad9a-2987-4b09-b713-a87f51eef540","block_type":"box","text":"together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":27,"box":{"x":68,"y":457,"width":786,"height":12}},{"id":"478bca35-3418-4365-b080-8fa5bac03229","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":27,"box":{"x":69,"y":472,"width":769,"height":12}},{"id":"d1f31ba3-b06e-4abc-8bf6-bf41b3b3927b","block_type":"box","text":"Committee and Per formance Oversight Committee are paid as compensation an additional annual retainer of","page_number":27,"box":{"x":69,"y":487,"width":778,"height":12}},{"id":"bb76f3c4-1723-4e4a-acc9-b09bba3544d9","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":27,"box":{"x":69,"y":502,"width":689,"height":12}},{"id":"d139bc0a-6213-4d30-9d57-f127920dacbb","block_type":"box","text":"The following table sets for th the compensation the Trust paid to the Trustees, on behalf of the Fund, for the","page_number":27,"box":{"x":101,"y":525,"width":776,"height":12}},{"id":"093281ab-1c77-4df1-8a7b-2101a24963dc","block_type":"box","text":"fiscal year ended May 31, 2026 and the aggregate compensation paid to them by all BlackRock-advised Funds for the","page_number":27,"box":{"x":68,"y":540,"width":841,"height":12}},{"id":"bac025ed-df10-45af-b5b2-5ca600130d1a","block_type":"box","text":"calendar year ended December 31, 2025.","page_number":27,"box":{"x":69,"y":556,"width":298,"height":11}},{"id":"375380cb-4984-418e-8662-0d97b4160076","block_type":"box","text":"Name","page_number":27,"box":{"x":69,"y":624,"width":32,"height":7}},{"id":"c72ac979-e87f-4e6f-b5f5-eb4ebe89eaab","block_type":"box","text":"Compensation","page_number":27,"box":{"x":551,"y":614,"width":83,"height":9}},{"id":"52ba0400-fdd8-4a33-b2f0-7ef774ac948d","block_type":"box","text":"from the Fund","page_number":27,"box":{"x":552,"y":624,"width":81,"height":7}},{"id":"a5204d03-13ef-4246-8208-aaad34890516","block_type":"box","text":"Estimated Annual","page_number":27,"box":{"x":664,"y":604,"width":102,"height":7}},{"id":"9b921541-e516-4408-b59d-668e212c951d","block_type":"box","text":"Benefits upon","page_number":27,"box":{"x":676,"y":614,"width":79,"height":9}},{"id":"9430af8b-0827-466b-a9f3-7cbe78124f8a","block_type":"box","text":"Retirement","page_number":27,"box":{"x":683,"y":624,"width":64,"height":7}},{"id":"cc9f47c2-ee78-4c43-8c3d-96e25cf6c0e2","block_type":"box","text":"Aggregate","page_number":27,"box":{"x":822,"y":584,"width":61,"height":9}},{"id":"7ac92351-4774-419c-bbd7-a1473f8b48e6","block_type":"box","text":"Compensation from","page_number":27,"box":{"x":796,"y":594,"width":113,"height":9}},{"id":"e396bf14-59ec-4b36-8493-669070b26e69","block_type":"box","text":"the Fund and","page_number":27,"box":{"x":815,"y":604,"width":75,"height":7}},{"id":"6510ff62-a2df-4af0-99e8-e564fc243cf8","block_type":"box","text":"Other BlackRock","page_number":27,"box":{"x":802,"y":614,"width":102,"height":7}},{"id":"a6fe5a4b-20b9-4163-a3ea-9022eaf6ac5d","block_type":"box","text":"Advised Funds","page_number":27,"box":{"x":809,"y":624,"width":84,"height":7}},{"id":"7c40e361-2eef-42a2-89f8-ef5ab130c00f","block_type":"box","text":"1","page_number":27,"box":{"x":893,"y":624,"width":4,"height":4}},{"id":"c29ddd90-a62e-44ef-8a39-7dd105de5cba","block_type":"box","text":"Independent Trustees","page_number":27,"box":{"x":70,"y":642,"width":154,"height":11}},{"id":"a8aa4f5b-e835-4804-b613-552f898df4b5","block_type":"box","text":"Christopher J. 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Cotty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,197 None","page_number":27,"box":{"x":79,"y":702,"width":654,"height":11}},{"id":"39bdb65f-220e-424c-af16-ff753997d7a4","block_type":"box","text":"$467,500","page_number":27,"box":{"x":817,"y":702,"width":72,"height":11}},{"id":"3f6a8b26-86c2-42bf-b650-45ab8c55e753","block_type":"box","text":"Jeffrey Jarczyk","page_number":27,"box":{"x":78,"y":717,"width":103,"height":12}},{"id":"71dee19b-9e5b-4ab0-a7f7-022654020e3a","block_type":"box","text":"2","page_number":27,"box":{"x":181,"y":718,"width":4,"height":4}},{"id":"e3865ed4-90f9-49c5-ae4a-0e4ada29955f","block_type":"box","text":".........................................","page_number":27,"box":{"x":192,"y":725,"width":328,"height":1}},{"id":"3b039708-953b-4a3e-9bd3-99df2b2482d3","block_type":"box","text":"$312 None None","page_number":27,"box":{"x":574,"y":717,"width":297,"height":10}},{"id":"2b97621e-281a-4b81-af61-6c0628eed2b1","block_type":"box","text":"Henry R. 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Perlowski","page_number":27,"box":{"x":78,"y":884,"width":127,"height":9}},{"id":"31e61317-5ce0-41d2-8b18-d278b3284651","block_type":"box","text":".......................................","page_number":27,"box":{"x":208,"y":891,"width":312,"height":2}},{"id":"42188817-9fb5-467c-a9c8-961c8cdb559d","block_type":"box","text":"None None None","page_number":27,"box":{"x":575,"y":884,"width":296,"height":9}},{"id":"443bf256-6d21-4b14-adef-7eb249fed531","block_type":"box","text":"I-18","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"17e3847b-0abb-4bcd-ba16-25161dde2790","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":27,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b74024e1-dd1b-40d7-97e4-a9664dffbce1","block_type":"box","text":"1","page_number":28,"box":{"x":69,"y":58,"width":3,"height":3}},{"id":"15e5da8c-bfae-48e4-a47e-87dd8ca1f707","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Trustee receives compensation, see “Biographical Information” beginning on","page_number":28,"box":{"x":94,"y":58,"width":786,"height":9}},{"id":"4bf2af83-7430-49a3-83f2-7c9c1da9c7f5","block_type":"box","text":"page I-13.","page_number":28,"box":{"x":94,"y":68,"width":55,"height":9}},{"id":"f7d61e1f-df39-4ba5-bb71-2406a3fd3412","block_type":"box","text":"2","page_number":28,"box":{"x":69,"y":81,"width":3,"height":3}},{"id":"4738dda6-32c2-433b-9a10-973b16a1fae7","block_type":"box","text":"Compensation includes $312 earned as a consultant to the Independent Trustees for the period April 1, 2026 to July 1, 2026.","page_number":28,"box":{"x":93,"y":80,"width":724,"height":9}},{"id":"ee99a40e-dc33-4b31-bf78-71a23ab1727d","block_type":"box","text":"3","page_number":28,"box":{"x":69,"y":93,"width":3,"height":4}},{"id":"88118297-157e-4d16-a773-753543712675","block_type":"box","text":"Chair of the Audit Committee.","page_number":28,"box":{"x":93,"y":93,"width":168,"height":7}},{"id":"86f0c091-f822-4938-b3ad-19eeb86524ff","block_type":"box","text":"4","page_number":28,"box":{"x":68,"y":106,"width":4,"height":3}},{"id":"95cf2e65-246f-4135-b161-535a4579230b","block_type":"box","text":"Chair of the Governance Committee.","page_number":28,"box":{"x":93,"y":106,"width":206,"height":7}},{"id":"1c48b15b-ac8a-44de-9bf6-b96c5e535056","block_type":"box","text":"5","page_number":28,"box":{"x":69,"y":118,"width":3,"height":4}},{"id":"2f17b33d-55c1-4548-84fa-c9eba34abbae","block_type":"box","text":"Chair of the Per formance Oversight Committee.","page_number":28,"box":{"x":93,"y":118,"width":269,"height":9}},{"id":"7f2b1c33-c63d-4a82-9490-a590e43e9b72","block_type":"box","text":"6","page_number":28,"box":{"x":69,"y":131,"width":3,"height":4}},{"id":"8452f4d3-f32b-4a8f-923f-2c57cbaf394c","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":28,"box":{"x":93,"y":131,"width":352,"height":9}},{"id":"6de9cae6-74f1-4e11-aafb-e210da5de37f","block_type":"box","text":"7","page_number":28,"box":{"x":69,"y":144,"width":3,"height":3}},{"id":"9f6869de-c98c-4a2e-a50e-7df170a8894d","block_type":"box","text":"Chair of the Compliance Committee.","page_number":28,"box":{"x":93,"y":143,"width":205,"height":9}},{"id":"8938cd43-6faa-4085-8d50-670c769c00ff","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":28,"box":{"x":69,"y":172,"width":432,"height":11}},{"id":"17280d66-3d6f-4606-8d6b-f043f3191dcd","block_type":"box","text":"Management Agreement","page_number":28,"box":{"x":69,"y":202,"width":180,"height":11}},{"id":"19e1418c-b3d9-4e62-bd51-6e67a9801d29","block_type":"box","text":"The Trust, on behalf of the Fund, has entered into a management agreement with BlackRock pursuant to which","page_number":28,"box":{"x":101,"y":225,"width":791,"height":11}},{"id":"54a6a939-b21c-4883-bed6-59e79ef16bc5","block_type":"box","text":"BlackRock is entitled to receive fees for the services it provides (the “Management Agreement”).","page_number":28,"box":{"x":70,"y":240,"width":689,"height":11}},{"id":"1e3e6ab9-ea66-4099-bba3-dfeceba8caaa","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":28,"box":{"x":102,"y":263,"width":762,"height":11}},{"id":"354d6d25-ac5c-405d-a14c-39f92aed2170","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":28,"box":{"x":69,"y":278,"width":799,"height":11}},{"id":"a064ec5a-5be9-49ba-94b0-af94c4de374d","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":28,"box":{"x":68,"y":293,"width":726,"height":11}},{"id":"19a3d327-a0c9-4b9c-9ce8-7e7de0a00950","block_type":"box","text":"June 30, 2028. In addition, BlackRock has contractually agreed to waive its management fees by the amount of","page_number":28,"box":{"x":69,"y":308,"width":799,"height":11}},{"id":"64131463-a944-4747-a50e-c349801d3530","block_type":"box","text":"investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds","page_number":28,"box":{"x":70,"y":323,"width":780,"height":11}},{"id":"90edcf25-018a-4c98-a0a2-13684d2d6c75","block_type":"box","text":"managed by BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon","page_number":28,"box":{"x":69,"y":338,"width":835,"height":11}},{"id":"19880416-a07d-475d-851f-dd33fac4ecc0","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":28,"box":{"x":69,"y":353,"width":774,"height":12}},{"id":"0b3d1c1e-9c79-4eb4-a378-c1be959c9f82","block_type":"box","text":"securities of the Fund.","page_number":28,"box":{"x":69,"y":368,"width":158,"height":9}},{"id":"e19c38ab-4c09-456e-8c5c-d4f6f8bef8e0","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":28,"box":{"x":102,"y":391,"width":773,"height":11}},{"id":"f12a0d4f-a26d-4948-9a23-7ffdb42db5a0","block_type":"box","text":"Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend","page_number":28,"box":{"x":68,"y":406,"width":787,"height":11}},{"id":"17ec1abf-bd9b-40e4-a32f-fc148fa502fb","block_type":"box","text":"Expense, Interest Expense, Acquired Fund Fees and Expenses and cer tain other Fund expenses (as defined in the","page_number":28,"box":{"x":70,"y":421,"width":811,"height":11}},{"id":"f37d9c6f-e608-4166-b864-5a697591185f","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":28,"box":{"x":70,"y":436,"width":837,"height":12}},{"id":"d272935a-b0f2-4711-8848-d265c65e19d6","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":28,"box":{"x":69,"y":452,"width":787,"height":11}},{"id":"f8de4cdd-0926-4896-ac24-a5b7406b1f3a","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":28,"box":{"x":69,"y":467,"width":822,"height":11}},{"id":"3805bc11-47ca-432d-a86b-1517368e05a2","block_type":"box","text":"vote of a majority of the outstanding voting securities of the Fund.","page_number":28,"box":{"x":68,"y":482,"width":468,"height":11}},{"id":"47873cb6-8ad5-4bd7-8207-93b44a6ef8b8","block_type":"box","text":"Pursuant to the Management Agreement, BlackRock may from time to time, in its sole discretion to the extent","page_number":28,"box":{"x":102,"y":504,"width":784,"height":12}},{"id":"b3fc4f9c-bcac-4334-91e0-2f84b3cebe3d","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of BlackRock, to","page_number":28,"box":{"x":70,"y":520,"width":838,"height":11}},{"id":"eff76143-0452-4c42-947e-95aee2e11976","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":28,"box":{"x":70,"y":535,"width":810,"height":11}},{"id":"f3a4b8e8-1b1c-44bd-a8cf-7038efe3aefe","block_type":"box","text":"investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":28,"box":{"x":70,"y":550,"width":779,"height":11}},{"id":"b2e00131-f9f7-46a3-a163-521c22530dd1","block_type":"box","text":"permitted by applicable law. BlackRock may terminate any or all sub-advisers or such delegation arrangements in its","page_number":28,"box":{"x":70,"y":565,"width":827,"height":11}},{"id":"17a123b9-54e4-4939-84a8-b62e8d931aef","block_type":"box","text":"sole discretion at any time to the extent permitted by applicable law.","page_number":28,"box":{"x":69,"y":580,"width":486,"height":11}},{"id":"be16d8d4-0c63-45b4-9c97-b621292e6df1","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":28,"box":{"x":101,"y":603,"width":806,"height":11}},{"id":"c247b67d-c270-485d-89d8-678980f6128b","block_type":"box","text":"to BlackRock, and the amounts waived and/or reimbursed, for the past three fiscal years.","page_number":28,"box":{"x":68,"y":618,"width":640,"height":11}},{"id":"313b8842-9832-4087-ae61-9cef8c861c33","block_type":"box","text":"Fees Paid to","page_number":28,"box":{"x":580,"y":646,"width":72,"height":7}},{"id":"4cf2d6b9-5744-4181-adad-ad5063b8c130","block_type":"box","text":"BlackRock","page_number":28,"box":{"x":585,"y":656,"width":62,"height":7}},{"id":"57771210-56dd-48eb-9aa6-a6f65e320642","block_type":"box","text":"Fees Waived by","page_number":28,"box":{"x":690,"y":646,"width":90,"height":9}},{"id":"d14b6561-58e0-460a-9153-4abd4cd847a7","block_type":"box","text":"BlackRock","page_number":28,"box":{"x":704,"y":656,"width":62,"height":7}},{"id":"e7130ddc-1ff3-4249-93bd-e8a27f450c8b","block_type":"box","text":"Fees Reimbursed","page_number":28,"box":{"x":810,"y":646,"width":99,"height":7}},{"id":"9e382d0c-e355-491f-8628-f78f2178e822","block_type":"box","text":"by BlackRock","page_number":28,"box":{"x":820,"y":656,"width":80,"height":9}},{"id":"658cf139-dc85-4492-9f69-451da337e55b","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,991,866 $689,070 $385,848","page_number":28,"box":{"x":70,"y":673,"width":825,"height":12}},{"id":"6c39b6c5-c4fa-4ba8-a76f-40aa2972f8a7","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,623,084 $545,137 $311,994","page_number":28,"box":{"x":70,"y":688,"width":825,"height":12}},{"id":"4c7e4150-0995-494d-bd63-3a9df3601f60","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,712,287 $603,992 $382,785","page_number":28,"box":{"x":70,"y":704,"width":825,"height":11}},{"id":"65a1fda5-d0b3-4dfd-a9f5-18cef9904c71","block_type":"box","text":"Administration Agreement","page_number":28,"box":{"x":68,"y":736,"width":191,"height":11}},{"id":"00e3f3c2-0afd-478b-8a54-977e29329020","block_type":"box","text":"BlackRock serves as the Fund’s administrator (in such capacity, the “Administrator”) pursuant to an","page_number":28,"box":{"x":102,"y":759,"width":711,"height":10}},{"id":"64c4112f-e2f2-4209-963e-1416ca06dfee","block_type":"box","text":"administration agreement (the “Administration Agreement”). The Administrator has agreed to maintain office facilities","page_number":28,"box":{"x":69,"y":773,"width":838,"height":12}},{"id":"b294db42-1f1f-4f5c-87c4-c384021edd02","block_type":"box","text":"for the Fund; furnish the Fund with clerical, bookkeeping and administrative services; oversee the determination and","page_number":28,"box":{"x":68,"y":789,"width":830,"height":11}},{"id":"b27cd882-9d36-4142-a86a-218c7112f23d","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":28,"box":{"x":70,"y":804,"width":813,"height":11}},{"id":"a95681f3-e8d8-41a0-a422-cec504fdb375","block_type":"box","text":"returns; prepare cer tain repor ts required by regulatory authorities; calculate various contractual expenses; determine","page_number":28,"box":{"x":69,"y":819,"width":837,"height":11}},{"id":"86769bf9-a3a6-48ec-8c1a-d10d88ff2231","block_type":"box","text":"the amount of dividends and distributions available for payment by the Fund to its shareholders; prepare and arrange","page_number":28,"box":{"x":68,"y":834,"width":836,"height":11}},{"id":"c2b23db0-f1bb-43e1-bd53-2e8dacc3018e","block_type":"box","text":"for the printing of dividend notices to shareholders; provide Fund service providers with such information as is","page_number":28,"box":{"x":68,"y":849,"width":785,"height":11}},{"id":"8b35c483-706e-4733-8a83-4ce985621acc","block_type":"box","text":"required to effect the payment of dividends and distributions; and serve as liaison with the Trust’s officers,","page_number":28,"box":{"x":69,"y":864,"width":765,"height":11}},{"id":"64604f8b-3f6b-4721-9fca-9da37755c0ea","block_type":"box","text":"independent accountants, legal counsel, custodian, accounting agent and transfer and dividend disbursing agent in","page_number":28,"box":{"x":70,"y":879,"width":819,"height":12}},{"id":"6eff59df-f46b-485f-82cb-f7d281c4395e","block_type":"box","text":"establishing the accounting policies of the Fund and monitoring financial and shareholder accounting services. The","page_number":28,"box":{"x":69,"y":894,"width":818,"height":12}},{"id":"eab91933-cc97-47e5-9936-bd2411f241fc","block_type":"box","text":"I-19","page_number":28,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"1a078228-8699-47aa-9a66-c2f8df8420a8","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":28,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3cdde840-757b-44af-96be-b51ced3401bc","block_type":"box","text":"Administrator may from time to time voluntarily waive administration fees with respect to the Fund and may voluntarily","page_number":29,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"5df92d13-d03c-462f-8aaf-a5139acdfd01","block_type":"box","text":"reimburse the Fund for expenses.","page_number":29,"box":{"x":69,"y":60,"width":238,"height":11}},{"id":"6e4e4c71-7725-401a-9e40-b4172221a49d","block_type":"box","text":"Under the Administration Agreement, the Trust, on behalf of the Fund, pays to the Administrator a fee, computed","page_number":29,"box":{"x":102,"y":82,"width":802,"height":12}},{"id":"6e06b47f-7579-4bee-81b0-949adb05a6b5","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":29,"box":{"x":69,"y":97,"width":830,"height":12}},{"id":"39be66e0-6c14-462c-893a-6d41f325f840","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":29,"box":{"x":69,"y":112,"width":788,"height":12}},{"id":"2f013099-d52e-41c0-b96e-a0badcc625c5","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":29,"box":{"x":69,"y":127,"width":785,"height":12}},{"id":"065ec400-ff16-47af-a8b7-5a990a1879f7","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":29,"box":{"x":69,"y":142,"width":816,"height":12}},{"id":"a99ded5a-7248-408f-86c7-947fb387dbe8","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":29,"box":{"x":69,"y":157,"width":805,"height":12}},{"id":"4079ed28-9f90-4613-8281-ee1ac1f4fd73","block_type":"box","text":"shares of the Fund.","page_number":29,"box":{"x":69,"y":173,"width":137,"height":9}},{"id":"a6553162-22e4-41ff-a42f-1eb33e8714f9","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":29,"box":{"x":101,"y":196,"width":798,"height":11}},{"id":"41af4bee-81a3-4c81-b63b-40d15d137b0e","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":29,"box":{"x":68,"y":351,"width":800,"height":12}},{"id":"1d76630b-5433-49ef-8ca7-e61aee5a5443","block_type":"box","text":"shares of the Trust.","page_number":29,"box":{"x":69,"y":366,"width":138,"height":10}},{"id":"05c87249-19d3-42bc-a73a-0d039a9dc2d9","block_type":"box","text":"In addition, pursuant to a Shareholders’ Administrative Services Agreement, BlackRock provides cer tain","page_number":29,"box":{"x":102,"y":389,"width":740,"height":11}},{"id":"c69771e3-4a60-44a2-8fad-4087eaf40ef7","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":29,"box":{"x":69,"y":404,"width":824,"height":11}},{"id":"ae1e10a8-c506-498f-afcb-9e5fdd67faf4","block_type":"box","text":"reimburses BlackRock for its costs in maintaining the service center, which costs include, among other things,","page_number":29,"box":{"x":69,"y":419,"width":787,"height":12}},{"id":"fd1a0db6-da3a-48ef-a2e7-f0c63f5eebf8","block_type":"box","text":"employee salaries, leasehold expenses, and other out-of-pocket expenses.","page_number":29,"box":{"x":69,"y":435,"width":531,"height":11}},{"id":"6624a099-d4d6-46a1-a17f-a04cd5f7d159","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":29,"box":{"x":102,"y":457,"width":784,"height":11}},{"id":"fea77925-ed1d-4bda-8e71-30781cab806e","block_type":"box","text":"liaison services pursuant to such agreement as 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. . . $ 2,666 $ 2,666","page_number":29,"box":{"x":333,"y":528,"width":562,"height":11}},{"id":"609f984f-8859-4ae2-8d05-5b820a6b8167","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . .","page_number":29,"box":{"x":70,"y":544,"width":257,"height":11}},{"id":"ed5d16b5-4b10-4516-8ffa-d47bdbffe479","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,275 $ 6,275","page_number":29,"box":{"x":333,"y":543,"width":562,"height":11}},{"id":"e31c339e-8af2-49e5-bfe4-985b84771ce0","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . .","page_number":29,"box":{"x":70,"y":559,"width":257,"height":11}},{"id":"3d670cd7-dbda-401e-937a-babb3b031246","block_type":"box","text":"............................................","page_number":29,"box":{"x":333,"y":566,"width":353,"height":2}},{"id":"8f38f19c-c5cb-4b24-a92e-65222964c5ea","block_type":"box","text":"$10,840 $10,840","page_number":29,"box":{"x":722,"y":558,"width":173,"height":11}},{"id":"98a29ead-987a-42a4-ac03-84a2cb1f238f","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":29,"box":{"x":69,"y":590,"width":335,"height":11}},{"id":"850a5e35-c6e9-4c43-8398-2e606dc0c9e4","block_type":"box","text":"Travis Cooke, CFA, Raffaele Savi, Richard Mathieson and Anna Hawley, CFA, are the por tfolio managers and are","page_number":29,"box":{"x":101,"y":613,"width":797,"height":11}},{"id":"da1dfc7c-aab2-42f9-805d-999a95558570","block_type":"box","text":"jointly and primarily responsible for the day-to-day management of the Fund.","page_number":29,"box":{"x":67,"y":628,"width":540,"height":11}},{"id":"45428fdc-ea6e-495d-8492-b38a1032506e","block_type":"box","text":"Other Funds and Accounts Managed","page_number":29,"box":{"x":70,"y":658,"width":265,"height":11}},{"id":"b8b1a476-cd8b-45af-8889-f58670bb14c4","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":29,"box":{"x":101,"y":681,"width":778,"height":11}},{"id":"3299b0db-73a5-4a35-a448-83786c723641","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":29,"box":{"x":70,"y":696,"width":755,"height":11}},{"id":"7ed381e8-5ad7-49a4-af66-7449f2c0c518","block_type":"box","text":"Number of Other Accounts Managed","page_number":29,"box":{"x":365,"y":724,"width":211,"height":9}},{"id":"4cc05682-005a-4053-9a91-2c4db4d6cb8c","block_type":"box","text":"and Assets by Account Type","page_number":29,"box":{"x":388,"y":734,"width":165,"height":9}},{"id":"60f20180-5ce7-4008-a719-8a8886adc840","block_type":"box","text":"Number of Other Accounts and Assets","page_number":29,"box":{"x":655,"y":724,"width":222,"height":7}},{"id":"3c5e2d1b-de0f-4564-85fc-1280861c7642","block_type":"box","text":"for Which Advisory Fee is 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Billion","page_number":29,"box":{"x":329,"y":803,"width":566,"height":8}},{"id":"63ee4913-147b-4bc0-8df8-1617b79a186a","block_type":"box","text":"Anna Hawley, CFA 25 424 42 0 5 8","page_number":29,"box":{"x":73,"y":816,"width":789,"height":9}},{"id":"71dc0762-ba3d-41fd-999f-2798b4d2d420","block_type":"box","text":"$14.54 Billion $43.27 Billion $70.13 Billion $0 $3.46 Billion $15.73 Billion","page_number":29,"box":{"x":329,"y":828,"width":570,"height":9}},{"id":"a478592f-161d-4d80-8573-7bd474c594aa","block_type":"box","text":"Richard Mathieson 35 423 46 0 5 9","page_number":29,"box":{"x":74,"y":841,"width":788,"height":8}},{"id":"724859e1-af2e-406d-9c64-85d976d5c682","block_type":"box","text":"$43.73 Billion $51.33 Billion $81.28 Billion $0 $3.46 Billion $15.63 Billion","page_number":29,"box":{"x":329,"y":853,"width":570,"height":9}},{"id":"0e726052-5651-4519-82e4-0fc7d65f4730","block_type":"box","text":"Raffaele Savi 38 67 19 0 12 3","page_number":29,"box":{"x":74,"y":867,"width":788,"height":7}},{"id":"5d2ef1a6-2f55-4352-9334-f41ae4843810","block_type":"box","text":"$54.83 Billion $58.02 Billion $42.55 Billion $0 $22.75 Billion $4.93 Billion","page_number":29,"box":{"x":329,"y":879,"width":566,"height":8}},{"id":"d5c5063d-1f8e-446d-849a-580d59d24b0f","block_type":"box","text":"I-20","page_number":29,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"f1529645-4048-4090-85b3-902e57058219","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":29,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c3ab6727-46d4-4dd5-a057-3fd3c2ffddbc","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":30,"box":{"x":69,"y":45,"width":304,"height":11}},{"id":"3035466f-829c-443f-be4c-64c68127298d","block_type":"box","text":"The discussion below describes the por tfolio managers’ compensation as of May 31, 2026.","page_number":30,"box":{"x":101,"y":67,"width":656,"height":12}},{"id":"6e28f2c9-8a57-4d64-ac86-e66900bb9ec5","block_type":"box","text":"BlackRock’s financial arrangements with its por tfolio managers, its competitive compensation and its career","page_number":30,"box":{"x":102,"y":90,"width":774,"height":11}},{"id":"4a37f694-33ec-4041-89a0-13f2c993cd47","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":30,"box":{"x":70,"y":105,"width":837,"height":11}},{"id":"13815b55-128b-44c5-a112-49d359d94191","block_type":"box","text":"a variety of components and may vary from year to year based on a number of factors. The principal components of","page_number":30,"box":{"x":69,"y":120,"width":823,"height":11}},{"id":"6334d0f3-febd-4a69-bc21-9cbb96a4b3ce","block_type":"box","text":"compensation include a base salary, a per formance-based discretionary bonus, par ticipation in various benefits","page_number":30,"box":{"x":69,"y":135,"width":799,"height":11}},{"id":"81491282-9c83-4cc1-b394-9de8e00433df","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":30,"box":{"x":70,"y":150,"width":670,"height":12}},{"id":"3afc51f2-9226-481a-b105-bd935cf2ec95","block_type":"box","text":"Base Compensation.","page_number":30,"box":{"x":102,"y":173,"width":148,"height":11}},{"id":"f1b84b2c-302d-4784-9749-db58b49c778a","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":30,"box":{"x":257,"y":173,"width":640,"height":11}},{"id":"6d927526-4963-421d-bf93-43058492f3c0","block_type":"box","text":"firm.","page_number":30,"box":{"x":68,"y":188,"width":32,"height":9}},{"id":"6b2c2fe2-af4b-4365-8b13-d37516cd62a5","block_type":"box","text":"Discretionary Incentive Compensation","page_number":30,"box":{"x":69,"y":219,"width":277,"height":11}},{"id":"e46f417f-9078-43c7-9283-735d93b0881c","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the per formance of BlackRock, Inc.,","page_number":30,"box":{"x":102,"y":241,"width":792,"height":11}},{"id":"e62f4865-ec0a-4ff4-9a83-4ff2ddf98704","block_type":"box","text":"the per formance of the por tfolio manager’s group within BlackRock, the investment per formance, including risk","page_number":30,"box":{"x":68,"y":256,"width":800,"height":12}},{"id":"e6973c6d-2b66-4c28-9383-99c6d691edcd","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that por tfolio manager relative to","page_number":30,"box":{"x":69,"y":271,"width":777,"height":12}},{"id":"3bfe1612-f04c-4315-96ba-303eed372ae9","block_type":"box","text":"predetermined benchmarks, and the individual’s per formance and contribution to the overall per formance of these","page_number":30,"box":{"x":70,"y":286,"width":817,"height":11}},{"id":"adf9c832-d73d-4bde-a067-c63ef26f020b","block_type":"box","text":"por tfolios and BlackRock. Among other things, BlackRock’s Chief Investment Officers make a subjective","page_number":30,"box":{"x":70,"y":302,"width":741,"height":11}},{"id":"1c6b2aec-272e-45a7-be21-fe4a4eca6972","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":30,"box":{"x":69,"y":317,"width":818,"height":11}},{"id":"d093ee86-8c58-417a-9ab7-11a65bd1b81d","block_type":"box","text":"other accounts managed by each por tfolio manager relative to the various benchmarks. Per formance is generally","page_number":30,"box":{"x":69,"y":332,"width":806,"height":11}},{"id":"b45f07c3-23cd-4f3c-ab97-ad99985d2e06","block_type":"box","text":"assessed over trailing 1-, 3-, and 5-year periods relative to applicable benchmarks. The per formance of Messrs.","page_number":30,"box":{"x":69,"y":347,"width":796,"height":11}},{"id":"5cad818d-0e27-4e2b-b0c6-f6d7173aa12c","block_type":"box","text":"Cooke, Savi and Mathieson and Ms. Hawley is not measured against a specific benchmark.","page_number":30,"box":{"x":69,"y":362,"width":651,"height":11}},{"id":"8d2d9569-8ede-4dbd-af7b-82095b9ae7e5","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":30,"box":{"x":102,"y":385,"width":389,"height":11}},{"id":"d37689e5-1b70-44c7-91a0-275525c2c062","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":30,"box":{"x":499,"y":385,"width":383,"height":11}},{"id":"3d917527-ede2-4d62-8fa0-b643c25513fc","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":30,"box":{"x":70,"y":400,"width":815,"height":11}},{"id":"f06531a2-971d-4188-bd93-0e164725e890","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":30,"box":{"x":68,"y":415,"width":522,"height":11}},{"id":"ad14dd27-818f-4d77-89d2-509c98119ac8","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":30,"box":{"x":102,"y":438,"width":760,"height":11}},{"id":"06250d98-9cbe-4eed-8cdd-3c5fb2c9fc9d","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":30,"box":{"x":69,"y":453,"width":795,"height":11}},{"id":"2f43badf-3868-4471-9f16-f351c9a165fc","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":30,"box":{"x":69,"y":468,"width":805,"height":11}},{"id":"d43862e3-a9c9-4b3e-8631-387604cbb2ac","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a por tfolio manager for a","page_number":30,"box":{"x":69,"y":483,"width":822,"height":11}},{"id":"4d204380-5a5b-4850-8b76-c393806c9833","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its per formance over future periods. In some","page_number":30,"box":{"x":68,"y":498,"width":839,"height":11}},{"id":"d624a281-c928-43e6-9941-e9909c0c9ae6","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to cer tain key employees as par t of a long-term","page_number":30,"box":{"x":69,"y":513,"width":802,"height":12}},{"id":"0b32757e-ce49-4ede-b8a0-71795fcb0c64","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":30,"box":{"x":70,"y":528,"width":820,"height":12}},{"id":"658e9554-517e-481e-b73d-6634bddcc5dd","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":30,"box":{"x":70,"y":543,"width":801,"height":12}},{"id":"e1c3318e-7292-41b7-8d1b-7343c515aa8a","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The por tfolio","page_number":30,"box":{"x":70,"y":559,"width":831,"height":11}},{"id":"59909aee-0961-4949-86ee-41d8cf2e6f80","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":30,"box":{"x":69,"y":574,"width":479,"height":11}},{"id":"baf31d2e-2f0d-4e30-ba5e-93e30eb00c10","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":30,"box":{"x":102,"y":596,"width":785,"height":12}},{"id":"158003b0-8d08-47bb-9d42-50b0241cf7e7","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":30,"box":{"x":68,"y":612,"width":836,"height":11}},{"id":"8813746e-949a-45a6-9cf9-679b60333835","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":30,"box":{"x":68,"y":627,"width":821,"height":11}},{"id":"f0ecc0b0-9d8c-422b-9196-e87ddf556a5f","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":30,"box":{"x":69,"y":642,"width":829,"height":11}},{"id":"f159543b-5f6c-49f5-8cc7-af7b4f76ec7f","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":30,"box":{"x":70,"y":657,"width":835,"height":11}},{"id":"e4eddffa-3b5d-4a4a-bc53-f585afb90fb4","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":30,"box":{"x":69,"y":672,"width":414,"height":11}},{"id":"a2dd052d-20ba-4867-a9c0-7f1438b2d888","block_type":"box","text":"Other Compensation Benefits.","page_number":30,"box":{"x":101,"y":695,"width":218,"height":11}},{"id":"b73ea6d3-a6f4-4753-8749-22fdbf6d2b13","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":30,"box":{"x":327,"y":695,"width":552,"height":11}},{"id":"8ec0545e-49dc-42f9-9fc7-641d4b687c3e","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":30,"box":{"x":69,"y":710,"width":582,"height":11}},{"id":"c05b1ced-23da-4d5b-b58c-65f8233e2976","block_type":"box","text":"Incentive Savings Plans","page_number":30,"box":{"x":102,"y":733,"width":167,"height":11}},{"id":"ffcfbd0e-92fe-4db5-a651-978beb5b87f7","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":30,"box":{"x":274,"y":732,"width":614,"height":12}},{"id":"d0c274f8-aed2-4c5b-b0f5-a6090d992c15","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":30,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"de3259a9-2e2f-4062-9f98-8312e9873fac","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":30,"box":{"x":70,"y":763,"width":785,"height":11}},{"id":"d53f8e6f-62cf-405e-9dcc-a88b2882a75e","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":30,"box":{"x":69,"y":777,"width":830,"height":12}},{"id":"60289484-68b8-4543-ae91-98841c976646","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":30,"box":{"x":69,"y":793,"width":799,"height":11}},{"id":"f4ac6942-e6c1-43ed-8a35-061abb3b8237","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":30,"box":{"x":69,"y":807,"width":831,"height":12}},{"id":"ff30aa9e-b766-4bb7-97b5-b47892de4335","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":30,"box":{"x":69,"y":823,"width":798,"height":12}},{"id":"73c05146-2e38-4052-8203-054947ed1b75","block_type":"box","text":"par ticipants for their own contributions or, absent par ticipant investment direction, are invested into a target date","page_number":30,"box":{"x":70,"y":838,"width":809,"height":12}},{"id":"598968f2-f765-4134-9c41-029a67f43d11","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":30,"box":{"x":68,"y":853,"width":793,"height":12}},{"id":"55a524c6-0239-48da-a2ba-1e16ab12ab6b","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":30,"box":{"x":70,"y":869,"width":832,"height":11}},{"id":"5fdbfd0c-1d3a-4e70-b716-718c4a0101b4","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":30,"box":{"x":68,"y":884,"width":805,"height":11}},{"id":"1655ff18-d1d5-4816-80f8-cc294ccc9357","block_type":"box","text":"I-21","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"98227bcf-6849-455f-a6fc-3fd34b329828","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":30,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"844671f9-6e5a-4ba6-89ea-6b34b586c91a","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible por tfolio managers are eligible to","page_number":31,"box":{"x":69,"y":44,"width":808,"height":12}},{"id":"39913e0d-ec5c-423d-8ee8-bac45ccae24b","block_type":"box","text":"par ticipate in these plans.","page_number":31,"box":{"x":70,"y":60,"width":185,"height":11}},{"id":"45e52206-8a52-403b-acec-d8f47ac1f40d","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":31,"box":{"x":69,"y":90,"width":268,"height":11}},{"id":"a9ffd396-5a4a-409b-9d01-30cab6edf5df","block_type":"box","text":"As of May 31, 2026, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":31,"box":{"x":101,"y":113,"width":731,"height":11}},{"id":"dd0deac3-2763-4c94-96d5-866af7ea9470","block_type":"box","text":"beneficially owned by the por tfolio managers in the Fund is shown below:","page_number":31,"box":{"x":69,"y":128,"width":519,"height":11}},{"id":"9d4eba7c-f98d-4606-bd6c-19595c50062f","block_type":"box","text":"Portfolio Manager","page_number":31,"box":{"x":69,"y":166,"width":105,"height":9}},{"id":"98dde719-59e0-4884-8e5c-e9c0cb93d089","block_type":"box","text":"Dollar Range of Equity","page_number":31,"box":{"x":759,"y":156,"width":129,"height":9}},{"id":"14f96691-74f1-48d6-86eb-cdb5b3ca5b1c","block_type":"box","text":"Securities Beneficially Owned","page_number":31,"box":{"x":736,"y":166,"width":173,"height":9}},{"id":"8d48b523-108f-40c6-8b07-a633e16d5c07","block_type":"box","text":"Travis Cooke, CFA","page_number":31,"box":{"x":68,"y":184,"width":127,"height":10}},{"id":"adc162d4-1164-41a1-ba17-8a2dbb0149c9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":31,"box":{"x":206,"y":184,"width":635,"height":9}},{"id":"41ccc1e3-b57e-4513-814b-af4525a10a8e","block_type":"box","text":"Raffaele Savi. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":31,"box":{"x":70,"y":199,"width":771,"height":9}},{"id":"9c003e27-99e1-4aeb-8d71-416b26e9bfe3","block_type":"box","text":"Richard Mathieson .","page_number":31,"box":{"x":70,"y":214,"width":138,"height":9}},{"id":"6d43ccfb-5f69-4558-8e70-1d2f9633caab","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":31,"box":{"x":214,"y":214,"width":627,"height":9}},{"id":"a0318b57-8456-4178-bcd0-05e73263c24d","block_type":"box","text":"Anna Hawley, CFA . . .","page_number":31,"box":{"x":68,"y":229,"width":148,"height":11}},{"id":"8b0d07ef-8326-4a78-ad9c-02053a1586e7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":31,"box":{"x":223,"y":229,"width":618,"height":9}},{"id":"4d502a36-b920-4986-9b12-fb94d832c1d5","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":31,"box":{"x":69,"y":261,"width":403,"height":11}},{"id":"16acc429-1085-489e-83f5-e011a7812043","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":31,"box":{"x":102,"y":283,"width":727,"height":12}},{"id":"719bb3e0-3a90-4051-86d2-1e7fe200bdb3","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":31,"box":{"x":70,"y":298,"width":814,"height":12}},{"id":"25a6c705-15ac-423b-ad3a-aacc37899844","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":31,"box":{"x":70,"y":314,"width":837,"height":11}},{"id":"b73c4143-8c95-402f-98de-8963be6a107e","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":31,"box":{"x":70,"y":329,"width":810,"height":11}},{"id":"04ba65f5-9d61-4e0a-8b0a-02caa3b46f60","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":31,"box":{"x":69,"y":344,"width":782,"height":11}},{"id":"f3023137-6e6d-493a-85b6-303b65ce3f14","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":31,"box":{"x":69,"y":359,"width":830,"height":11}},{"id":"c357939f-cd9a-4d1a-99ad-b348a4d782a3","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":31,"box":{"x":69,"y":374,"width":828,"height":11}},{"id":"828fdeda-b2cc-4857-9eee-273433d6e8fe","block_type":"box","text":"funds or have per formance or higher fees paid to BlackRock, or in which por tfolio managers have a personal interest","page_number":31,"box":{"x":68,"y":389,"width":834,"height":11}},{"id":"c7097994-cf89-4d78-ba06-626e6363229e","block_type":"box","text":"in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition,","page_number":31,"box":{"x":70,"y":404,"width":777,"height":11}},{"id":"ff5423ec-e20a-44bd-a2f8-d3e01377e3dc","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":31,"box":{"x":70,"y":419,"width":821,"height":12}},{"id":"d76b3afe-2892-4ba6-9f37-856b825f620e","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":31,"box":{"x":69,"y":435,"width":819,"height":11}},{"id":"b6b25cfe-1541-4a69-a64b-3cef1fb71058","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":31,"box":{"x":69,"y":450,"width":832,"height":11}},{"id":"f0d84d09-bf5a-4738-b2dd-7c1260d4a532","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":31,"box":{"x":68,"y":465,"width":804,"height":11}},{"id":"fc04d7bc-4084-4c87-88f9-2a56f39ec109","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":31,"box":{"x":69,"y":480,"width":760,"height":11}},{"id":"4544dbac-0b0f-469e-ad5e-756b7bc436bf","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":31,"box":{"x":69,"y":495,"width":834,"height":11}},{"id":"2a0ea246-1889-43ed-98b5-bfc7adffe903","block_type":"box","text":"are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the","page_number":31,"box":{"x":69,"y":510,"width":836,"height":11}},{"id":"cfab338c-0fb6-4877-b532-bd71de571d73","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":31,"box":{"x":69,"y":525,"width":822,"height":11}},{"id":"500b30a7-21c9-4e3d-a8a2-776850d321d8","block_type":"box","text":"public information. Cer tain por tfolio managers also may manage accounts whose investment strategies may at times","page_number":31,"box":{"x":70,"y":540,"width":835,"height":12}},{"id":"d9261722-a662-47f8-b4eb-9700ddb13097","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":31,"box":{"x":69,"y":555,"width":838,"height":12}},{"id":"a63f77ac-3a26-486e-9f48-3e2878626cba","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":31,"box":{"x":70,"y":571,"width":830,"height":11}},{"id":"9260686c-9f05-4472-9dda-6d19735602bf","block_type":"box","text":"and/or long only accounts, subject to incentive fees. Messrs. Cooke, Savi and Mathieson and Ms. Hawley may","page_number":31,"box":{"x":69,"y":586,"width":789,"height":11}},{"id":"4e9c61ee-fa53-48a7-9672-113077252fae","block_type":"box","text":"therefore be entitled to receive a por tion of any incentive fees earned on such accounts.","page_number":31,"box":{"x":68,"y":601,"width":631,"height":11}},{"id":"bc607c8b-6d3a-4273-8e2f-6560d1efbc85","block_type":"box","text":"As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock","page_number":31,"box":{"x":101,"y":623,"width":788,"height":12}},{"id":"3f90792d-4674-46b6-aa34-38d74484e0f2","block_type":"box","text":"purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its","page_number":31,"box":{"x":70,"y":639,"width":839,"height":11}},{"id":"191629af-4b10-4ea6-87f3-17436e5f0b95","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":31,"box":{"x":68,"y":654,"width":823,"height":11}},{"id":"feed71e0-a5e5-4bc2-9b53-63fb988aea22","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":31,"box":{"x":68,"y":669,"width":812,"height":11}},{"id":"ce4ccf58-c539-4fd3-97d5-ee781b2406b1","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":31,"box":{"x":69,"y":684,"width":777,"height":11}},{"id":"6d4dbfc0-1ef6-42a3-9822-904c4e86d6ce","block_type":"box","text":"investments in a manner that is consistent with the par ticular investment discipline and client base, as appropriate.","page_number":31,"box":{"x":70,"y":699,"width":826,"height":11}},{"id":"cde96026-e81b-486f-b4cb-faec42ed4711","block_type":"box","text":"Accounting Services","page_number":31,"box":{"x":68,"y":729,"width":150,"height":11}},{"id":"f32199ce-1515-4c29-8155-7478f1ba8972","block_type":"box","text":"State Street Bank and Trust Company (“State Street”) serves as the accounting services provider for the Fund.","page_number":31,"box":{"x":102,"y":752,"width":791,"height":11}},{"id":"3449f33d-8af5-4409-ab86-5bad5d9dfe79","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":31,"box":{"x":69,"y":767,"width":824,"height":11}},{"id":"33bcb241-22d8-44d7-be79-41be9c3c7493","block_type":"box","text":"custodian); records general ledger entries; calculates daily net income; reconciles activity to the trial balance;","page_number":31,"box":{"x":69,"y":783,"width":779,"height":11}},{"id":"a0b0e936-6f03-4343-9040-07ab5d7f4ce0","block_type":"box","text":"calculates and publishes daily net asset value; prepares account balances; and provides such other accounting","page_number":31,"box":{"x":69,"y":798,"width":796,"height":11}},{"id":"731d988c-abe4-4449-9bae-8761eef7e9bd","block_type":"box","text":"services as may be required. In connection with its accounting services, State Street also provides cer tain","page_number":31,"box":{"x":69,"y":813,"width":760,"height":11}},{"id":"321d3148-5f0c-4b00-bfe7-a0c7309b905c","block_type":"box","text":"administration services.","page_number":31,"box":{"x":69,"y":828,"width":170,"height":9}},{"id":"7039951a-cb52-4952-aed1-e9df79a461ce","block_type":"box","text":"I-22","page_number":31,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"46e85a0a-0c73-46fc-9d00-1dc9847bd0c7","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":31,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9ac7b5f6-f609-40b0-9db0-8fdbdd81e88c","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":32,"box":{"x":101,"y":45,"width":790,"height":11}},{"id":"6bbdb033-2808-46a6-94aa-a52491020297","block_type":"box","text":"fiscal years:","page_number":32,"box":{"x":68,"y":60,"width":85,"height":11}},{"id":"8c4aeecc-4c68-4683-8c3e-af37d327f0cd","block_type":"box","text":"Fees Paid to State Street","page_number":32,"box":{"x":761,"y":88,"width":148,"height":7}},{"id":"a3ac476f-b638-42d4-ba2e-1e839d54dfef","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":106,"width":334,"height":11}},{"id":"8088fd30-59a9-48fc-914d-8d3c41268354","block_type":"box","text":"........................................","page_number":32,"box":{"x":410,"y":113,"width":320,"height":2}},{"id":"cf53d4d3-0a2b-43f4-b9d0-456926694092","block_type":"box","text":"$153,929","page_number":32,"box":{"x":799,"y":105,"width":72,"height":11}},{"id":"c225b778-cd8d-4faa-88af-4c5587543bef","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":121,"width":334,"height":11}},{"id":"00d8f503-08af-4ea0-ae25-be9bc76fbb20","block_type":"box","text":"........................................","page_number":32,"box":{"x":410,"y":128,"width":320,"height":2}},{"id":"2027517a-8a13-44c4-a324-71712569e3c6","block_type":"box","text":"$121,193","page_number":32,"box":{"x":799,"y":120,"width":72,"height":11}},{"id":"ff0f4c2a-ef7e-4696-9618-d8b5e424a8ca","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":136,"width":334,"height":11}},{"id":"9752c92d-c58b-4c23-87c4-249ad6a2d7d5","block_type":"box","text":"........................................","page_number":32,"box":{"x":410,"y":143,"width":320,"height":2}},{"id":"1528a046-69eb-4324-94df-9321e6c91ce1","block_type":"box","text":"$166,673","page_number":32,"box":{"x":799,"y":135,"width":72,"height":11}},{"id":"45504d33-21b1-43db-8cca-94fa041baca8","block_type":"box","text":"Custodian","page_number":32,"box":{"x":69,"y":168,"width":72,"height":8}},{"id":"a94cd2e0-6c5d-4fff-927b-a5fc8853bd74","block_type":"box","text":"State Street (the “Custodian”), which has its principal place of business at One Congress Street, Suite 1,","page_number":32,"box":{"x":102,"y":190,"width":751,"height":11}},{"id":"b132715f-abff-408b-951b-a2895ef02e12","block_type":"box","text":"Boston, Massachusetts 02114-2016, serves as the custodian for the Fund. The Custodian, among other","page_number":32,"box":{"x":70,"y":205,"width":749,"height":12}},{"id":"5db39d05-2685-47e5-9416-3ded9be8e9d0","block_type":"box","text":"responsibilities, maintains a custody account or accounts in the name of the Fund, receives and delivers all assets","page_number":32,"box":{"x":69,"y":220,"width":820,"height":12}},{"id":"0b13c73b-b506-4c00-95ac-fe6cc44bce83","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":32,"box":{"x":68,"y":235,"width":830,"height":12}},{"id":"f4d23fc8-367d-4775-9cb1-afc22b314e99","block_type":"box","text":"distributions on account of the assets of the Fund.","page_number":32,"box":{"x":69,"y":251,"width":359,"height":9}},{"id":"f97baeb3-365c-49ea-b714-139352546c40","block_type":"box","text":"Transfer Agent","page_number":32,"box":{"x":68,"y":281,"width":107,"height":11}},{"id":"85a28fd8-f732-4038-94eb-01ac4916f6b5","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc., which has its principal place of business at 118 Flanders Road,","page_number":32,"box":{"x":102,"y":303,"width":764,"height":12}},{"id":"e7a6916e-333d-4b2e-b53b-bf8657fac76f","block_type":"box","text":"Westborough, MA 01581, serves as the transfer agent and dividend disbursing agent for the Fund.","page_number":32,"box":{"x":68,"y":319,"width":705,"height":11}},{"id":"e0f4be7d-b374-43a1-a81e-7f0dbc288f44","block_type":"box","text":"Credit Agreement","page_number":32,"box":{"x":69,"y":349,"width":129,"height":11}},{"id":"9ac1bac8-1c23-4220-97e0-2e9dff6cd6ac","block_type":"box","text":"The Trust, on behalf of the Fund, along with cer tain other funds managed by the Manager and its affiliates","page_number":32,"box":{"x":101,"y":372,"width":757,"height":11}},{"id":"e18287ec-61a3-4ad8-8922-d213781ffc81","block_type":"box","text":"(“Par ticipating Funds”), is a par ty to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":32,"box":{"x":69,"y":386,"width":817,"height":12}},{"id":"e1b50afa-3312-4b27-a25f-a7d1e3be86a4","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":32,"box":{"x":68,"y":402,"width":743,"height":11}},{"id":"244e8d60-3aa1-468f-89d1-69d9f4f40e44","block_type":"box","text":"commitments designated for cer tain Par ticipating Funds, the Par ticipating Funds, including the Fund, can borrow up","page_number":32,"box":{"x":69,"y":417,"width":825,"height":11}},{"id":"17573da8-15a8-4b8a-baef-1a279b4c225e","block_type":"box","text":"to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other","page_number":32,"box":{"x":68,"y":431,"width":818,"height":12}},{"id":"ea497784-4f6b-49c2-8972-e748e522ab6e","block_type":"box","text":"limitations as specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet","page_number":32,"box":{"x":70,"y":447,"width":761,"height":11}},{"id":"2c06939b-c059-4bee-ac9c-5659cfcaac35","block_type":"box","text":"shareholder redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit","page_number":32,"box":{"x":69,"y":462,"width":768,"height":11}},{"id":"262a86f2-6f6a-4ca5-b8b8-7e3019669fce","block_type":"box","text":"Agreement for leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectus and","page_number":32,"box":{"x":68,"y":477,"width":838,"height":12}},{"id":"fc18aef8-18f4-47cf-8375-a1a013171355","block_type":"box","text":"SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest expense and other","page_number":32,"box":{"x":69,"y":493,"width":816,"height":11}},{"id":"936237e9-3a65-4c5d-a18c-ecb6deb0ec84","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":32,"box":{"x":68,"y":508,"width":825,"height":11}},{"id":"9018912a-0fe2-47bb-bcb8-bbda26173c62","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":32,"box":{"x":70,"y":523,"width":771,"height":11}},{"id":"037828d8-c5f9-44ce-8df1-b1bd109983de","block_type":"box","text":"commitment amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be","page_number":32,"box":{"x":69,"y":538,"width":833,"height":11}},{"id":"c8778fca-79ca-4d9e-805b-e25f4807f323","block_type":"box","text":"charged interest at a variable rate.","page_number":32,"box":{"x":69,"y":553,"width":245,"height":11}},{"id":"cd3fada8-524f-4e77-a0b7-ff283488d13c","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":32,"box":{"x":68,"y":583,"width":491,"height":11}},{"id":"bacd2786-842b-4348-896d-0b018417b8bc","block_type":"box","text":"Set for th below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":32,"box":{"x":102,"y":606,"width":773,"height":11}},{"id":"b953bd46-454b-4d60-a0bc-64fab1fa1499","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of the Manager (“affiliates”) for the past three fiscal","page_number":32,"box":{"x":69,"y":621,"width":812,"height":11}},{"id":"8297a05e-76e9-4800-8034-045586de7a52","block_type":"box","text":"years. BlackRock Investments, LLC (“BRIL” or the “Distributor”) acts as the Fund’s sole distributor.","page_number":32,"box":{"x":68,"y":636,"width":706,"height":11}},{"id":"b16eb887-9ea9-438c-8200-1f8e408d04cf","block_type":"box","text":"Investor A Shares","page_number":32,"box":{"x":667,"y":664,"width":102,"height":8}},{"id":"283f38a6-6586-46e3-9e27-531dc640e48b","block_type":"box","text":"Gross","page_number":32,"box":{"x":546,"y":690,"width":32,"height":7}},{"id":"54e6907d-f6ed-45f7-91c0-f37aee546f48","block_type":"box","text":"Sales","page_number":32,"box":{"x":546,"y":700,"width":32,"height":7}},{"id":"a036f68d-77b0-43a6-a745-552a0935cd8c","block_type":"box","text":"Charges","page_number":32,"box":{"x":538,"y":710,"width":48,"height":9}},{"id":"253fbd92-8b6d-405d-ada7-7601f3509b02","block_type":"box","text":"Collected","page_number":32,"box":{"x":535,"y":721,"width":54,"height":7}},{"id":"68a9ec08-06e0-4ecc-9c67-b1d953b8c017","block_type":"box","text":"Sales","page_number":32,"box":{"x":644,"y":690,"width":31,"height":7}},{"id":"4060c8ce-1338-4c9f-a081-c7acc03b1606","block_type":"box","text":"Charges","page_number":32,"box":{"x":636,"y":700,"width":48,"height":9}},{"id":"9a959938-74af-43ea-8d2a-c8f1aab96c02","block_type":"box","text":"Retained","page_number":32,"box":{"x":635,"y":710,"width":50,"height":8}},{"id":"6d4ebb9f-b5d4-4e6d-9c8c-0ec2dead56c9","block_type":"box","text":"by BRIL","page_number":32,"box":{"x":638,"y":721,"width":44,"height":8}},{"id":"f7d34ae3-ff59-4d0f-a6ad-01e1a7775aa8","block_type":"box","text":"Sales","page_number":32,"box":{"x":739,"y":690,"width":32,"height":7}},{"id":"cfa3a9c8-8fa4-48be-8c63-d20800aa3ec1","block_type":"box","text":"Charges","page_number":32,"box":{"x":731,"y":700,"width":48,"height":9}},{"id":"672214df-1011-488a-9c98-98ee14b88969","block_type":"box","text":"Paid","page_number":32,"box":{"x":743,"y":710,"width":24,"height":8}},{"id":"88614f81-8ee7-46bb-bf2b-77ccb9d69915","block_type":"box","text":"to Affiliates","page_number":32,"box":{"x":721,"y":720,"width":68,"height":8}},{"id":"eaaa1ae2-a06b-489d-aa40-1cbfaf6dce0a","block_type":"box","text":"CDSCs","page_number":32,"box":{"x":844,"y":680,"width":40,"height":7}},{"id":"e535f021-6a3b-4749-b0aa-8fa066315307","block_type":"box","text":"Received on","page_number":32,"box":{"x":829,"y":690,"width":70,"height":7}},{"id":"73f16d33-74cf-4c28-931f-942466631e98","block_type":"box","text":"Redemption","page_number":32,"box":{"x":830,"y":700,"width":68,"height":9}},{"id":"95a8d1b1-bafb-4437-98e6-eae68eb10963","block_type":"box","text":"on Load-Waived","page_number":32,"box":{"x":819,"y":710,"width":90,"height":8}},{"id":"0d007030-fe70-4f27-b9f2-5209cdfcf262","block_type":"box","text":"Shares","page_number":32,"box":{"x":844,"y":721,"width":40,"height":7}},{"id":"7c0b2cb9-83bb-42cf-a6bb-c4350dd15490","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . $ 85,302 $ 5,571 $ 5,571 $3,324","page_number":32,"box":{"x":70,"y":738,"width":820,"height":11}},{"id":"c5142e27-04a8-4213-8139-e1c798fd6ebc","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . $134,708 $10,034 $10,034 $ 854","page_number":32,"box":{"x":70,"y":753,"width":820,"height":11}},{"id":"169a9f9d-f4e1-4220-8f04-087b5a822a7c","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . $115,586 $ 7,695 $ 7,695 $ 600","page_number":32,"box":{"x":70,"y":768,"width":820,"height":12}},{"id":"d014966c-6a63-4fa9-8053-0bdbb91dbf9c","block_type":"box","text":"Investor C Shares","page_number":32,"box":{"x":744,"y":798,"width":102,"height":7}},{"id":"a51b6db3-6f34-4bc5-8683-dddfeba9079d","block_type":"box","text":"CDSCs","page_number":32,"box":{"x":712,"y":814,"width":39,"height":7}},{"id":"df88582b-4dc4-4ffe-a95e-08142ac7c383","block_type":"box","text":"Received by BRIL","page_number":32,"box":{"x":681,"y":824,"width":101,"height":9}},{"id":"6bdca190-6e54-4112-b5c5-e9a74f233a7d","block_type":"box","text":"CDSCs","page_number":32,"box":{"x":841,"y":814,"width":39,"height":7}},{"id":"f766d926-e68d-4fb9-9ac2-51235db434f3","block_type":"box","text":"Paid to Affiliates","page_number":32,"box":{"x":813,"y":824,"width":96,"height":7}},{"id":"ab419c0f-12e2-4d49-b25c-bc0593f1ef89","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . .","page_number":32,"box":{"x":70,"y":842,"width":278,"height":11}},{"id":"e9aeb32c-bb0f-4aa4-baee-ba1ae2f4197e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 896 $ 896","page_number":32,"box":{"x":354,"y":841,"width":533,"height":10}},{"id":"6f78d741-ae6c-438f-ae97-1a9b226253ce","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . .","page_number":32,"box":{"x":70,"y":857,"width":278,"height":11}},{"id":"5b3c6719-959a-4f78-9c8e-d355637df54f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 435 $ 435","page_number":32,"box":{"x":354,"y":856,"width":533,"height":10}},{"id":"93063145-ade8-4dd6-8ee4-57c49aa37941","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . .","page_number":32,"box":{"x":70,"y":872,"width":278,"height":11}},{"id":"836984aa-6caf-46cb-a400-3699fa0a6116","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,939 $1,939","page_number":32,"box":{"x":354,"y":871,"width":533,"height":11}},{"id":"7bc6aec5-1b2f-40b5-be4c-002b36d0a1a8","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":32,"box":{"x":101,"y":896,"width":805,"height":11}},{"id":"0f84f6b9-93a5-4957-af81-f24d41187ed8","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":32,"box":{"x":68,"y":911,"width":796,"height":11}},{"id":"9b91e108-4b6b-410e-aafd-fd23998040b4","block_type":"box","text":"I-23","page_number":32,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"eda2b242-a528-4304-ab96-ab388aabfa2d","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":32,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7c2c3ff4-3470-4712-9014-25134b010750","block_type":"box","text":"shareholder servicing activities for Investor A Shares and for providing shareholder servicing and distribution related","page_number":33,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"fc5e2f5e-41db-4fd0-9d82-c23dbbb197f9","block_type":"box","text":"activities and services for Investor C Shares.","page_number":33,"box":{"x":69,"y":60,"width":318,"height":9}},{"id":"d91b1a34-941c-412d-9f63-25e8fc9f791f","block_type":"box","text":"Class Name","page_number":33,"box":{"x":69,"y":88,"width":68,"height":7}},{"id":"bd8eebf9-b1f8-4aa0-a569-0eb528cceff0","block_type":"box","text":"Fees Paid to BRIL","page_number":33,"box":{"x":806,"y":88,"width":103,"height":7}},{"id":"0f8a6767-c49c-46fd-8c17-cd95b8a84bed","block_type":"box","text":"Investor A Shares .","page_number":33,"box":{"x":70,"y":106,"width":134,"height":9}},{"id":"bc4c4730-d960-454b-97d3-eb58928c4268","block_type":"box","text":"......................................................................","page_number":33,"box":{"x":210,"y":113,"width":564,"height":2}},{"id":"a3c8a6d8-1071-42d9-844b-4ee28eaa61cc","block_type":"box","text":"$516,753","page_number":33,"box":{"x":822,"y":105,"width":71,"height":11}},{"id":"f4a62441-6d70-4cc7-aa2d-f347ecf4bc4d","block_type":"box","text":"Investor C Shares . . .","page_number":33,"box":{"x":70,"y":121,"width":150,"height":9}},{"id":"aa4a6a63-f965-4bcb-84f0-f3c5f7c96d07","block_type":"box","text":"....................................................................","page_number":33,"box":{"x":226,"y":128,"width":548,"height":2}},{"id":"8693c7ec-cbac-4deb-a13b-077367834f5a","block_type":"box","text":"$163,856","page_number":33,"box":{"x":822,"y":120,"width":71,"height":11}},{"id":"e3017dd6-c8e0-4dfb-a75f-464ba3e2e195","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":33,"box":{"x":68,"y":152,"width":318,"height":11}},{"id":"dd8dcf85-ceb9-44a9-8353-a55f2dd6c02a","block_type":"box","text":"An illustration of the computation of the offering price of the Investor A Shares of the Fund based on the value of","page_number":33,"box":{"x":101,"y":175,"width":805,"height":11}},{"id":"a01310b8-9fb8-427f-99cd-8b9a57615f4e","block_type":"box","text":"the Fund’s Investor A Shares’ net assets and the number of Investor A Shares outstanding on May 31, 2026 is set","page_number":33,"box":{"x":68,"y":190,"width":823,"height":11}},{"id":"eb14fee5-c51e-4392-bfd7-ef7203d36a11","block_type":"box","text":"for th below.","page_number":33,"box":{"x":68,"y":205,"width":83,"height":9}},{"id":"d9d04a38-2853-461f-8ded-088292abc93c","block_type":"box","text":"Investor A","page_number":33,"box":{"x":827,"y":234,"width":58,"height":7}},{"id":"e850ee92-30d8-477d-ae01-62e43870cafa","block_type":"box","text":"Shares","page_number":33,"box":{"x":836,"y":244,"width":39,"height":7}},{"id":"9bfa6a05-c916-46f9-a559-e4dd179069b1","block_type":"box","text":"Net Assets","page_number":33,"box":{"x":70,"y":262,"width":76,"height":8}},{"id":"0afa8b2f-bba9-4740-b210-7fd6d504c88c","block_type":"box","text":".............................................................................","page_number":33,"box":{"x":150,"y":269,"width":621,"height":1}},{"id":"8b24282d-e146-48ab-96ff-e3094dca7f87","block_type":"box","text":"$251,524,810","page_number":33,"box":{"x":803,"y":261,"width":106,"height":11}},{"id":"02525e5f-e29f-45ed-98ce-0fc6af0d75e4","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":33,"box":{"x":70,"y":276,"width":245,"height":12}},{"id":"ffb3dde8-6148-4c0e-9c43-34325a3764e1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,","page_number":33,"box":{"x":321,"y":277,"width":524,"height":10}},{"id":"25115323-9d16-4436-b8df-0813641e5937","block_type":"box","text":"552,636","page_number":33,"box":{"x":847,"y":277,"width":62,"height":10}},{"id":"f9ac4a18-9ad1-4378-8c9c-b2734c8c65b6","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":33,"box":{"x":70,"y":292,"width":571,"height":11}},{"id":"c3ddfa0e-1558-43b9-b31c-943577b6500b","block_type":"box","text":"................","page_number":33,"box":{"x":647,"y":299,"width":124,"height":1}},{"id":"1cf71682-a3b7-4428-af52-0666f853dfd7","block_type":"box","text":"$26.33","page_number":33,"box":{"x":857,"y":291,"width":52,"height":10}},{"id":"8b56110f-9018-41ec-a00c-ff5ab1d9fef5","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":33,"box":{"x":69,"y":307,"width":534,"height":11}},{"id":"20428bb5-e64b-451e-9ad6-ca2d83e908a3","block_type":"box","text":"1","page_number":33,"box":{"x":604,"y":307,"width":4,"height":4}},{"id":"427508b0-33cc-4c4e-968e-27c4afdd5b2e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $1.46","page_number":33,"box":{"x":615,"y":306,"width":294,"height":10}},{"id":"d18ae2ff-fd85-4b99-84d4-404b9a905b79","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":69,"y":326,"width":702,"height":11}},{"id":"7b04c7c5-9842-45e4-8cea-0e7f1642c34f","block_type":"box","text":"$27.79","page_number":33,"box":{"x":857,"y":326,"width":52,"height":10}},{"id":"f482fa92-7b07-470c-9434-2219cf10d1bc","block_type":"box","text":"1","page_number":33,"box":{"x":69,"y":358,"width":3,"height":4}},{"id":"737e33a7-f0c2-484c-b4e4-93bd363cad2c","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":33,"box":{"x":94,"y":358,"width":541,"height":9}},{"id":"e11f9a59-7a1a-4641-88c6-193a07b081a0","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":33,"box":{"x":101,"y":379,"width":787,"height":11}},{"id":"17f5a430-c148-48d8-b322-30cdba7c5aea","block_type":"box","text":"set for th above for Investor A Shares. Though not subject to a sales charge, cer tain share classes may be subject to","page_number":33,"box":{"x":69,"y":394,"width":833,"height":12}},{"id":"fd978fc9-3a05-4559-8cef-d42e9d10e645","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":33,"box":{"x":69,"y":409,"width":813,"height":12}},{"id":"6da0bc78-bffd-41bb-b147-3bb6e3cd9bb3","block_type":"box","text":"Shares” and “Pricing of Shares” in Par t II of this SAI.","page_number":33,"box":{"x":69,"y":424,"width":377,"height":12}},{"id":"2b6786d1-bf24-474b-9862-aa703b4a9437","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":33,"box":{"x":68,"y":455,"width":302,"height":11}},{"id":"9b7d56ef-d614-400d-af46-9dd9d2c3ec0b","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in Par t II of this SAI for more information.","page_number":33,"box":{"x":102,"y":477,"width":609,"height":12}},{"id":"fad39166-1479-4f9b-bd82-75d16844f3ec","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, is set","page_number":33,"box":{"x":102,"y":500,"width":794,"height":11}},{"id":"45eb5512-1502-41fc-9e31-f46aff9b1a1f","block_type":"box","text":"for th in the following table:","page_number":33,"box":{"x":68,"y":515,"width":191,"height":11}},{"id":"4ac3dfeb-c37d-4bd2-be1f-33cac5bf6e43","block_type":"box","text":"Aggregate Brokerage","page_number":33,"box":{"x":613,"y":544,"width":125,"height":8}},{"id":"90a9795f-143e-4954-8a9c-cd6eb27d873f","block_type":"box","text":"Commissions Paid","page_number":33,"box":{"x":623,"y":554,"width":106,"height":7}},{"id":"1aa2b5c3-fd86-4949-8595-d997bb5dd3bc","block_type":"box","text":"Brokerage Commissions","page_number":33,"box":{"x":769,"y":544,"width":140,"height":8}},{"id":"2a43c0d5-945c-4074-9e5a-8ea4cb422456","block_type":"box","text":"Paid to Affiliates","page_number":33,"box":{"x":791,"y":554,"width":96,"height":7}},{"id":"9572cac5-1387-4ffe-90f9-c63596de7ed2","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . .","page_number":33,"box":{"x":70,"y":571,"width":292,"height":11}},{"id":"27b8f588-28c4-4e98-a983-26bdfa6f4431","block_type":"box","text":"...........................","page_number":33,"box":{"x":369,"y":579,"width":213,"height":1}},{"id":"36c07111-dfdc-4d51-873f-02c35f6b4ba3","block_type":"box","text":"$140,161 $0","page_number":33,"box":{"x":640,"y":571,"width":208,"height":11}},{"id":"1dba72a9-39a2-4154-8ec8-de171ab39735","block_type":"box","text":"Fiscal Year Ended May 31, 2025","page_number":33,"box":{"x":70,"y":586,"width":230,"height":12}},{"id":"ef065ab4-988e-44c0-836d-92c5c7439638","block_type":"box","text":"1","page_number":33,"box":{"x":301,"y":587,"width":4,"height":4}},{"id":"25db8424-8db6-47f2-af4e-189840978f76","block_type":"box","text":"..................................","page_number":33,"box":{"x":311,"y":594,"width":271,"height":1}},{"id":"09f1bef3-09f0-4c80-93da-99e6949f2d68","block_type":"box","text":"$179,823 $0","page_number":33,"box":{"x":640,"y":586,"width":208,"height":11}},{"id":"4fa268c3-c951-4dd0-b38b-a10ab1d3ec89","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . .","page_number":33,"box":{"x":70,"y":602,"width":292,"height":11}},{"id":"66cbdec0-a506-41d7-ac8c-f9294149e379","block_type":"box","text":"...........................","page_number":33,"box":{"x":369,"y":609,"width":213,"height":1}},{"id":"6366fbc8-01fe-4e8e-b997-02b10dc6dbff","block_type":"box","text":"$613,144 $0","page_number":33,"box":{"x":640,"y":601,"width":208,"height":11}},{"id":"6fb13ff6-c0a0-46bf-b5d7-445f57a084a5","block_type":"box","text":"1","page_number":33,"box":{"x":69,"y":626,"width":3,"height":4}},{"id":"c737314a-2d93-4e1c-b554-2d154f56151d","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":33,"box":{"x":93,"y":626,"width":809,"height":9}},{"id":"01aa8628-4d3b-406f-9461-0ffc1153cef6","block_type":"box","text":"under management.","page_number":33,"box":{"x":94,"y":636,"width":112,"height":9}},{"id":"3119f012-1686-4a50-94b1-8e218829c62f","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":33,"box":{"x":101,"y":657,"width":770,"height":11}},{"id":"15ada35b-93bb-4468-bee0-86a105653f90","block_type":"box","text":"28(e) research/brokerage services under Section 28(e) of the Securities Exchange Act of 1934, as amended, and","page_number":33,"box":{"x":69,"y":672,"width":814,"height":11}},{"id":"0b7d7047-343e-44be-afdd-e1a381371582","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended May 31, 2026. The provision of","page_number":33,"box":{"x":68,"y":687,"width":829,"height":11}},{"id":"1332aa95-aae7-4db5-bf51-05b095b11c30","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":33,"box":{"x":69,"y":702,"width":822,"height":12}},{"id":"434b9890-6278-4a59-b295-3a36283d22f6","block_type":"box","text":"with such brokers.","page_number":33,"box":{"x":68,"y":718,"width":130,"height":8}},{"id":"86e2d5c6-15b1-4e2c-be43-38003efa48bf","block_type":"box","text":"Amount of Commissions","page_number":33,"box":{"x":318,"y":746,"width":141,"height":7}},{"id":"4594975d-f6b0-4421-80bc-051df6f0da2e","block_type":"box","text":"Paid to Brokers for","page_number":33,"box":{"x":335,"y":756,"width":109,"height":7}},{"id":"c3cf5e73-574d-4b9e-8f47-bdb9bcd9097c","block_type":"box","text":"Providing 28(e) Eligible Research Services","page_number":33,"box":{"x":265,"y":766,"width":248,"height":9}},{"id":"c8611b1d-ac36-416d-a381-717e46213767","block_type":"box","text":"Amount of Brokerage","page_number":33,"box":{"x":588,"y":756,"width":124,"height":9}},{"id":"d08333cd-63fc-48fd-a929-fd1c5e63922f","block_type":"box","text":"Transactions Involved","page_number":33,"box":{"x":587,"y":766,"width":126,"height":7}},{"id":"56c18da5-c5fc-444a-a88e-cdd93f94ef72","block_type":"box","text":"$56,535 $381,654,036","page_number":33,"box":{"x":358,"y":783,"width":346,"height":11}},{"id":"21c6dd22-7788-4ef7-bda4-efb4e8fe2c08","block_type":"box","text":"The value of the Fund’s aggregate holdings of the securities of its regular brokers or dealers (as defined in Rule","page_number":33,"box":{"x":101,"y":807,"width":796,"height":12}},{"id":"3e269c9e-20fd-40e8-9b5c-4aaff7ab2f2a","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":33,"box":{"x":70,"y":823,"width":802,"height":11}},{"id":"2399174c-9ba8-44e4-8987-b4fcafb406f8","block_type":"box","text":"fiscal year ended May 31, 2026 is as follows:","page_number":33,"box":{"x":68,"y":838,"width":326,"height":11}},{"id":"26382df7-850f-4f88-8ab3-128d4087ea94","block_type":"box","text":"Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000’s)","page_number":33,"box":{"x":69,"y":866,"width":840,"height":9}},{"id":"4dadbae7-0dc2-42b5-931e-9c2eb24af2b0","block_type":"box","text":"Citigroup. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $6,201","page_number":33,"box":{"x":69,"y":883,"width":785,"height":12}},{"id":"d0655be0-5b41-4b79-aaf5-220cd094ee30","block_type":"box","text":"Goldman Sachs Group, Imc. . . . .","page_number":33,"box":{"x":69,"y":899,"width":229,"height":11}},{"id":"e3451206-7f59-4b6c-9a4c-1026b37e9bdb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $5,962","page_number":33,"box":{"x":304,"y":898,"width":550,"height":11}},{"id":"57ae49f5-d5fa-4ba0-a6cf-93e79b1b2f3a","block_type":"box","text":"I-24","page_number":33,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"95b371db-be09-4ef9-a401-85606dd42f4d","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":33,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"53a13e28-5551-4c69-b6f2-4c76be89d8d8","block_type":"box","text":"Securities Lending","page_number":34,"box":{"x":68,"y":45,"width":135,"height":11}},{"id":"37d1a03c-7926-407a-8c69-4263f85343c1","block_type":"box","text":"To the extent that the Fund engages in securities lending, the Fund conducts its securities lending pursuant to an","page_number":34,"box":{"x":101,"y":68,"width":807,"height":11}},{"id":"b80a2f4d-0e1e-4f5e-ab3a-407927f8715a","block_type":"box","text":"exemptive order from the Commission permitting it to lend por tfolio securities to borrowers affiliated with the Fund","page_number":34,"box":{"x":69,"y":82,"width":817,"height":12}},{"id":"d5ec54e6-f0f0-4f3b-ad75-16f8d0532a3f","block_type":"box","text":"and to retain an affiliate of the Fund as securities lending agent. To the extent that the Fund engages in securities","page_number":34,"box":{"x":69,"y":98,"width":813,"height":11}},{"id":"d0596df4-1464-40f7-bc8c-73055662e106","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":34,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"faf68dfa-d341-49a6-8c6c-0157c18b48a1","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":34,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"2a16118b-7223-4f53-89a7-452913ed2611","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":34,"box":{"x":70,"y":143,"width":646,"height":11}},{"id":"187daae0-654a-4245-a665-09f347df253f","block_type":"box","text":"The Fund retains a por tion of the securities lending income and remits the remaining por tion to BIM as","page_number":34,"box":{"x":101,"y":166,"width":735,"height":11}},{"id":"852f1e3a-2f09-4619-881d-fa363fd4a15c","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":34,"box":{"x":69,"y":181,"width":834,"height":11}},{"id":"871fff32-2a6e-4035-b2d6-454d33352ef8","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":34,"box":{"x":70,"y":196,"width":822,"height":11}},{"id":"a1eb30b5-4ee2-4e05-8e57-0ba39d4708df","block_type":"box","text":"and any fees or other payments to and from borrowers of securities. As securities lending agent, BIM bears all","page_number":34,"box":{"x":69,"y":211,"width":787,"height":11}},{"id":"97b61ba6-6813-494d-a226-eb4942e87e2b","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":34,"box":{"x":69,"y":226,"width":783,"height":11}},{"id":"f6cb8343-8872-4735-a522-c1e1fea51845","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the","page_number":34,"box":{"x":70,"y":241,"width":800,"height":11}},{"id":"265b10b6-5abc-4d36-be76-572317fb223a","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":34,"box":{"x":70,"y":256,"width":813,"height":12}},{"id":"6ad1cdc1-5dda-4723-bb01-68d70a10b82c","block_type":"box","text":"lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate","page_number":34,"box":{"x":70,"y":271,"width":830,"height":12}},{"id":"3f8060c8-fcf0-44db-9c94-c5b49247bd5d","block_type":"box","text":"of 0.04%. Such money market fund shares will not be subject to a sales load, distribution fee or service fee.","page_number":34,"box":{"x":69,"y":286,"width":773,"height":12}},{"id":"4823c062-f6f2-4ae6-806e-32e6efe990b1","block_type":"box","text":"To the extent that the Fund invests cash collateral in a non-government money market fund, the Fund may be","page_number":34,"box":{"x":101,"y":309,"width":776,"height":11}},{"id":"cb32d227-a5e0-4fcd-924b-d19d45bbd77e","block_type":"box","text":"subject to a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or","page_number":34,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"53e218e8-e631-40c6-a47d-bb44ed62cba5","block_type":"box","text":"terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is","page_number":34,"box":{"x":68,"y":339,"width":812,"height":12}},{"id":"f87ab3f8-d833-434b-ac2f-52dc1caaa0be","block_type":"box","text":"determined that such fee would be, or would not be, respectively, in the best interest of the money market fund.","page_number":34,"box":{"x":69,"y":355,"width":799,"height":11}},{"id":"8872fd81-7463-4fda-b662-4c29c1508893","block_type":"box","text":"Additionally, the Fund will be subject to a mandatory liquidity fee if the money market fund’s total net redemptions on","page_number":34,"box":{"x":68,"y":370,"width":835,"height":11}},{"id":"9cbfef76-13c1-45cb-baec-9ddfa3e0bac9","block_type":"box","text":"a single day exceed 5% of the money market fund’s net assets, unless the liquidity costs are de minimis (i.e., less","page_number":34,"box":{"x":69,"y":385,"width":818,"height":11}},{"id":"1a8f5b84-0ce3-4f70-9319-579c428533d8","block_type":"box","text":"than one basis point (0.01%)). The money market fund will determine the size of the mandatory liquidity fee by","page_number":34,"box":{"x":68,"y":400,"width":789,"height":11}},{"id":"2099122d-0857-4300-82b3-9f46912bca8f","block_type":"box","text":"making a good faith estimate of cer tain costs the money market fund would incur if it were to sell a pro rata amount","page_number":34,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"2877f787-5432-4272-9f84-94021b4456bb","block_type":"box","text":"of each security in the por tfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":34,"box":{"x":69,"y":430,"width":839,"height":11}},{"id":"2cb0d973-8aca-46fe-949b-676e95f6ea87","block_type":"box","text":"mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro rata amount of each","page_number":34,"box":{"x":69,"y":445,"width":802,"height":12}},{"id":"170c1c2a-a627-4f17-b9e2-d7db597fba0a","block_type":"box","text":"por tfolio security in good faith and suppor ted by data, it is required to apply a default liquidity fee of 1% on the value","page_number":34,"box":{"x":70,"y":460,"width":830,"height":12}},{"id":"4d4404d3-13a7-4e18-a3b4-714bb1cd5a00","block_type":"box","text":"of shares redeemed on that day. The imposition of any such discretionary or mandatory liquidity fee would reduce the","page_number":34,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"df41d8b6-c53c-498a-9946-bf1db4ceee2b","block_type":"box","text":"Fund’s returns on securities lending.","page_number":34,"box":{"x":70,"y":491,"width":258,"height":11}},{"id":"09671f14-e2b2-4c3e-a8c5-30737b3878fd","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":34,"box":{"x":102,"y":513,"width":774,"height":12}},{"id":"ff6ab7e0-853b-44ce-acb9-8095b03658ba","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity or fund of","page_number":34,"box":{"x":69,"y":528,"width":790,"height":12}},{"id":"b230ed0a-74d6-45da-8d73-552aee070699","block_type":"box","text":"funds), each of which may be subject to a different fee arrangement, is based on a methodology agreed to by the","page_number":34,"box":{"x":68,"y":543,"width":809,"height":12}},{"id":"f7a2da0a-7465-462f-9351-abc105860ce4","block_type":"box","text":"Trust and BIM.","page_number":34,"box":{"x":68,"y":559,"width":103,"height":9}},{"id":"0b715353-48c8-4dbb-ad03-8827e9d6f5ac","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 81% of securities","page_number":34,"box":{"x":102,"y":581,"width":783,"height":12}},{"id":"62d9fd65-e36b-4948-8f40-3f146dd0011a","block_type":"box","text":"lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the","page_number":34,"box":{"x":70,"y":596,"width":815,"height":12}},{"id":"9bed64ca-913b-46bb-a3a0-e73391692741","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":34,"box":{"x":69,"y":612,"width":463,"height":11}},{"id":"d01ee47e-0f09-4f7c-920c-852df75fd1c5","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":34,"box":{"x":102,"y":634,"width":753,"height":12}},{"id":"8d9fed4c-b271-4ad8-92c2-ae587f757e3a","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":34,"box":{"x":69,"y":649,"width":778,"height":12}},{"id":"344fc436-a643-40df-83a0-65a45081f07b","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":34,"box":{"x":70,"y":664,"width":817,"height":12}},{"id":"de69c655-1b8c-4c1a-bc59-a5229dd78476","block_type":"box","text":"lending income as follows: (i) 84% of securities lending income (which excludes collateral investment fees); and","page_number":34,"box":{"x":70,"y":680,"width":794,"height":11}},{"id":"e1f9c79f-f81a-4500-8a79-90e63c71e10c","block_type":"box","text":"(ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment fees.","page_number":34,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"8a8e83ea-075c-42aa-93bc-573be8f06c51","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":34,"box":{"x":102,"y":717,"width":683,"height":12}},{"id":"6e4dc0d4-0181-435f-8669-54570b4bd8f3","block_type":"box","text":"The services provided to the Fund by BIM, in the most recent fiscal year ended May 31, 2026, primarily included","page_number":34,"box":{"x":101,"y":740,"width":803,"height":11}},{"id":"712bce75-5ab5-4243-9583-6abe3a1d2b59","block_type":"box","text":"the following:","page_number":34,"box":{"x":68,"y":755,"width":93,"height":11}},{"id":"b7935d55-4034-4094-a18f-0695c227240c","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":34,"box":{"x":69,"y":775,"width":818,"height":12}},{"id":"66794583-e2c6-46aa-8c40-081b682d6147","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":34,"box":{"x":102,"y":790,"width":333,"height":11}},{"id":"74845cc5-5a8b-4b5f-8d1f-5f5e2dc5da80","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":34,"box":{"x":69,"y":811,"width":538,"height":11}},{"id":"3917c0cf-5d87-4980-9369-fba2020b661d","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":34,"box":{"x":69,"y":831,"width":330,"height":11}},{"id":"49c185a2-23c9-464c-b16a-577a60e83fec","block_type":"box","text":"(4) monitoring the daily value of the loaned securities and directing the payment of additional collateral or the return","page_number":34,"box":{"x":69,"y":851,"width":834,"height":11}},{"id":"919aeb18-25d6-4d2f-85c6-e4fcf1a5afd8","block_type":"box","text":"of excess collateral, as necessary;","page_number":34,"box":{"x":102,"y":866,"width":246,"height":11}},{"id":"de96f68f-32b4-4aba-8ce9-dcc2e02366d1","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":34,"box":{"x":69,"y":886,"width":562,"height":12}},{"id":"6b3362e6-002f-4ad4-86e5-f6006d1b0d8a","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":34,"box":{"x":69,"y":906,"width":665,"height":12}},{"id":"7dd5f64f-240d-4cb2-b22e-f0bbd8b293dd","block_type":"box","text":"I-25","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"dfa7a31a-798b-4579-88cd-b41de8311366","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":34,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"576c181d-1fc3-4b37-b569-99c91eab5e64","block_type":"box","text":"(7) in the event of default by a borrower with respect to any securities loan, using the collateral or the proceeds of","page_number":35,"box":{"x":69,"y":45,"width":822,"height":11}},{"id":"ed4a1127-1f79-40d7-b8a3-6cc6e7675190","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":35,"box":{"x":101,"y":60,"width":803,"height":11}},{"id":"91e25018-b4d8-41ec-a18d-31a9656efb96","block_type":"box","text":"of the loaned securities; and","page_number":35,"box":{"x":102,"y":75,"width":203,"height":10}},{"id":"030c2400-a075-4bd7-9a8b-09c477fc3177","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":35,"box":{"x":69,"y":95,"width":808,"height":11}},{"id":"95887263-9e02-4134-8fec-fce57bbadf2d","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":35,"box":{"x":101,"y":118,"width":805,"height":11}},{"id":"0644c210-93db-42c7-85e6-35a919ae6518","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended May 31, 2026.","page_number":35,"box":{"x":69,"y":133,"width":546,"height":11}},{"id":"eb38345d-a388-4605-97bf-41255c7ac8d0","block_type":"box","text":"Gross income from securities lending activities","page_number":35,"box":{"x":69,"y":161,"width":343,"height":11}},{"id":"388bb474-5d0c-4cb3-b393-f665a609a91a","block_type":"box","text":"...................................................","page_number":35,"box":{"x":416,"y":168,"width":409,"height":1}},{"id":"a09c6205-4cb2-44c3-8267-c16aa990ab3e","block_type":"box","text":"$10,752","page_number":35,"box":{"x":847,"y":160,"width":62,"height":11}},{"id":"b0827edd-9bb8-473b-828e-c8a2ebf6a59d","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":35,"box":{"x":70,"y":180,"width":565,"height":11}},{"id":"a349a80c-c4f5-43f8-9303-1994ae852ec0","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":35,"box":{"x":79,"y":195,"width":599,"height":11}},{"id":"f24a2ff4-8c3e-47bc-82e8-983fa415dafa","block_type":"box","text":". . . . . . . . . . . . . . . . . . $ 763","page_number":35,"box":{"x":685,"y":195,"width":224,"height":10}},{"id":"e9d45946-108e-4f9b-a8e2-f3b66e67fb09","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM . .","page_number":35,"box":{"x":79,"y":210,"width":673,"height":12}},{"id":"9ad959ae-73e6-4531-bc4f-d60ecc16d4e2","block_type":"box","text":". . . . . . . . . $ 84","page_number":35,"box":{"x":758,"y":210,"width":151,"height":10}},{"id":"f68ef179-ff40-4f4d-8578-ad5d1f3060d7","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":35,"box":{"x":78,"y":225,"width":551,"height":12}},{"id":"6f5b66de-afb6-44f0-bb33-83bb9ac3e867","block_type":"box","text":"........................ $ 0","page_number":35,"box":{"x":636,"y":225,"width":273,"height":10}},{"id":"6248c696-1d51-468e-8bd3-1ec6da44df96","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":35,"box":{"x":79,"y":241,"width":567,"height":11}},{"id":"39321fe0-7926-4cfc-9ab9-f485703aef48","block_type":"box","text":"...................... $ 0","page_number":35,"box":{"x":652,"y":240,"width":257,"height":10}},{"id":"74ba7ad5-f84b-4514-ad51-4e81d88e903f","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . .","page_number":35,"box":{"x":79,"y":256,"width":289,"height":11}},{"id":"5ca2d9aa-34b7-4bb3-bcb8-bd2dd0670277","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,647","page_number":35,"box":{"x":375,"y":255,"width":533,"height":11}},{"id":"29492cbd-0fde-4cb2-815e-cc06289e0fde","block_type":"box","text":"Other fees not included in securities lending income paid to BIM. . . . . . . . . . .","page_number":35,"box":{"x":79,"y":271,"width":542,"height":11}},{"id":"c7ad25a4-9b43-40dd-8f2a-245e1d8a568c","block_type":"box","text":"......................... $ 0","page_number":35,"box":{"x":628,"y":270,"width":281,"height":11}},{"id":"ba360c4c-9df6-4290-8645-6c133ba38af7","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":35,"box":{"x":68,"y":286,"width":455,"height":11}},{"id":"3762818e-c9f9-47ff-bb32-57557c574ba3","block_type":"box","text":".....................................","page_number":35,"box":{"x":530,"y":293,"width":295,"height":2}},{"id":"b24b5947-38c9-4a59-822f-dbf12e29f55d","block_type":"box","text":"$ 7,494","page_number":35,"box":{"x":847,"y":285,"width":62,"height":12}},{"id":"6159ced2-756d-4415-a991-7a5c4d6e2358","block_type":"box","text":"Net income from securities lending activities","page_number":35,"box":{"x":69,"y":305,"width":327,"height":12}},{"id":"d2edeb7f-b663-4cc1-af71-2f7b7e797e7e","block_type":"box","text":".....................................................","page_number":35,"box":{"x":399,"y":313,"width":426,"height":1}},{"id":"bb02cf7f-dadd-4b69-a658-987348d2bbe4","block_type":"box","text":"$ 3,258","page_number":35,"box":{"x":847,"y":305,"width":62,"height":11}},{"id":"bc6678b4-ec3f-4074-9ac5-e80b4fc16213","block_type":"box","text":"VIII. Additional Information","page_number":35,"box":{"x":68,"y":341,"width":195,"height":9}},{"id":"133c3071-e0a8-4c90-8cb0-3c44372be1f8","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":35,"box":{"x":102,"y":364,"width":352,"height":11}},{"id":"f5455398-2a23-4984-a242-bca31e7b202d","block_type":"box","text":"Deloitte & Touche LLP, with offices at 115 Federal Street,","page_number":35,"box":{"x":461,"y":364,"width":408,"height":10}},{"id":"e10a26ba-03b4-4e7d-b26b-a211c1cccaa6","block_type":"box","text":"Boston, Massachusetts 02110, serves as the Fund’s independent registered public accounting firm.","page_number":35,"box":{"x":70,"y":379,"width":717,"height":11}},{"id":"48e13833-9d97-42a1-8489-1985ef4ba6a0","block_type":"box","text":"Counsel.","page_number":35,"box":{"x":101,"y":402,"width":62,"height":9}},{"id":"c8145b5c-60db-45a1-befc-bb034a082544","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":35,"box":{"x":170,"y":402,"width":736,"height":11}},{"id":"f36ab334-b89c-46bb-9713-2d86b2590ada","block_type":"box","text":"the Fund’s counsel.","page_number":35,"box":{"x":68,"y":417,"width":139,"height":9}},{"id":"5be5ab68-b6ff-492b-a015-3e4379f1c9a0","block_type":"box","text":"The Trust","page_number":35,"box":{"x":68,"y":447,"width":69,"height":9}},{"id":"b583419d-6d54-4df8-aaa3-f8b627b10c08","block_type":"box","text":"The Trust was organized as a Massachusetts business trust on December 22, 1988, and is registered under the","page_number":35,"box":{"x":101,"y":470,"width":807,"height":11}},{"id":"37c689e9-6996-431e-b00b-787de26b1e82","block_type":"box","text":"Investment Company Act as an open-end, management investment company. The Trust is authorized to issue an","page_number":35,"box":{"x":70,"y":485,"width":799,"height":11}},{"id":"b7660845-137a-4d61-9be4-e3c04621c919","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":35,"box":{"x":69,"y":499,"width":807,"height":12}},{"id":"3ac9555a-28d1-4d62-b4b4-6a5165982cfa","block_type":"box","text":"different series and classes. The Fund is classified as diversified.","page_number":35,"box":{"x":69,"y":515,"width":467,"height":9}},{"id":"2e83b283-20bf-4484-9df8-f0cfb482577a","block_type":"box","text":"Under Massachusetts law, shareholders of a business trust may, under cer tain circumstances, be held","page_number":35,"box":{"x":102,"y":538,"width":734,"height":11}},{"id":"65131420-5c04-40e6-8ac5-0f375acbcc23","block_type":"box","text":"personally liable as par tners for the obligations of the Trust. 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Additional copies of the Fund’s annual and semi-annual repor ts to","page_number":37,"box":{"x":69,"y":264,"width":815,"height":12}},{"id":"18341ea7-aadc-449f-a052-776412b8ddc5","block_type":"box","text":"shareholders and the Fund’s Annual and Semi-Annual Financial Statements and Additional Information may be","page_number":37,"box":{"x":69,"y":280,"width":785,"height":11}},{"id":"34026278-fbd8-469a-9e7c-c7d3e372e3c0","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":37,"box":{"x":69,"y":295,"width":836,"height":11}},{"id":"4048a1b5-3ce9-4764-8d83-fdd04b58749c","block_type":"box","text":"I-28","page_number":37,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"34281e62-b015-4ee5-b08c-bd87916221ca","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":37,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c8c53c55-8b71-4781-a23a-b7fc0fda108e","block_type":"box","text":"PART II","page_number":38,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"4590bdba-234d-4544-874b-a75428860fb2","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":38,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"90c2413a-59b9-48a6-af37-ce63f5ce29cb","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":38,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"74863f22-8b7d-47b0-81ac-8750cf0fcbb2","block_type":"box","text":"they invest cer tain of their assets in municipal investments described below.","page_number":38,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"9f8fd6af-ce48-4d93-92c0-81a96cd42d3b","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":38,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"c3d4c29a-d94f-476b-82fb-ca93fbdd34e4","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":38,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"bc954ebc-856a-4ebb-b0c9-a7c1dfe7286b","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":38,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"6caf8005-1365-4004-ac69-df1f08f5e8e4","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":38,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"8910e3ed-fb39-4d9d-994b-db9617452b5e","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":38,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"25810673-8a1f-477d-9dfa-8d2d0963e12c","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":38,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"8f552806-6056-41de-a3e8-0e26feb6c7e1","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":38,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"5a1c605b-1990-4c0b-b17c-64c8b24723d5","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":38,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"7ca28cb1-da4b-49c7-897f-ace5c3d0c8bf","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":38,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"193cb362-0bfe-4879-a388-a47b02223222","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":38,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"cb7cda79-535d-426c-9895-344e7ba46b8d","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":38,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"57bd2bb2-53cb-4648-9769-4a966c826745","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":38,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"b08ec4ae-f625-41cd-97b3-bd305f6b94b5","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":38,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"f27c66db-6b17-4b55-a8fb-32544d161779","block_type":"box","text":"corresponding “master” por tfolio (each, a “Master Por tfolio”) of a master limited liability company (each, a “Master","page_number":38,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"40636f6b-03de-4784-83da-0fc4e1cd3574","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":38,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"1b88d210-d6aa-4ab0-b48c-394a93a753aa","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":38,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"ace884d5-94d8-422e-b6bc-88435cf3d6a8","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Por tfolio in","page_number":38,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"328a63a4-a501-4513-867c-f32d9d1c98da","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":38,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"5f59901a-e982-4e35-8769-72e41594f348","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":38,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"e2f9128d-1d1f-4f30-9bd1-9abc97efd530","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":38,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"5a15bbcd-83c0-4b7e-8a8a-fdab5152b077","block_type":"box","text":"par ticular Fund.","page_number":38,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"c8122241-4afe-4d0f-a563-d37dd867e782","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":38,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"c3d0721d-6a59-4e21-aa73-456865f89ee7","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":38,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"2401f879-99b4-404f-bbb2-f0c2a1408e91","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":38,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"e42b13cb-a220-4101-bc3f-fb006eed9970","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":38,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"03b3b0cb-86da-45dd-85a6-e9c6ba342c0b","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":38,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"dd5faac8-b7c3-4f28-8245-96d1715e4105","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":38,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"c0102b45-c1ba-491f-a143-c6f710dbe55c","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":38,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"28f82939-e7bf-4a80-9ab0-1d76dc6e274d","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":38,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"5b0aad59-e6c3-4b9f-bc9a-e83b4f53b2d7","block_type":"box","text":"each investment strategy (each, a “Covered Fund”). Information that does not apply to a Covered Fund does not form","page_number":38,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"dd0459ec-5b03-4a57-9d5d-453712097ca0","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":38,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"dc7fb31b-1d1a-4ead-bdb8-cdb4468e1639","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":38,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"427064ca-d8e4-4d8a-b88b-f01fa443c2f2","block_type":"box","text":"Asset-Backed Securities.","page_number":38,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"e3231d79-a1b4-4eb1-a2ca-c217513320e5","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":38,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"ad3c10a9-ad30-4cad-86bf-89b274724866","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":38,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"43a5e947-d970-4439-9488-8499936c3bb6","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":38,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"3aba01d6-90d8-4c30-9886-82907df68040","block_type":"box","text":"credit card receivables) are passed through to a Fund. The value of asset-backed securities, like that of traditional","page_number":38,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"6ae0f55b-07a9-4dee-8810-d359e14b1732","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":38,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"c863f8be-1fa7-4487-ab25-6ee728621c5a","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":38,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"80a963f2-9ca2-40b6-a863-723dd36e5987","block_type":"box","text":"price paid by a Fund for its asset-backed securities, the yield the Fund expects to receive from such securities and","page_number":38,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"f17ca8f9-933f-4870-b6bd-dcf2b1f14925","block_type":"box","text":"the average life of the securities are based on a number of factors, including the anticipated rate of prepayment of","page_number":38,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"85f5b047-4b10-42a0-a4db-5cdc3681bc2e","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":38,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"c77fefeb-72f5-4e38-a067-639fa5b70c65","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":38,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"1f1be4e7-7636-47ae-956b-91d661e40ddb","block_type":"box","text":"Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely receive a rate of","page_number":38,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"f8330e6a-9de2-4449-9bb3-bb6e198b2dd5","block_type":"box","text":"interest that is lower than the rate on the security that was prepaid. To the extent that a Fund purchases asset","page_number":38,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"41f9875b-2b61-4520-a657-efef1edef138","block_type":"box","text":"backed securities at a premium, prepayments may result in a loss to the extent of the premium paid. If a Fund buys","page_number":38,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"e8ba0576-80fc-4d0b-a3bc-9d65495ebe98","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":38,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"8b934298-1ca0-4670-a92a-4a5f8c68334a","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":38,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"ecc24116-e660-4f50-97f3-0945c5816e30","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":38,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"a339595a-90f7-4d21-b25f-152205a59ae0","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":38,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"91280131-3ec7-4eed-9c3c-a1b362732bb7","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":38,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"ffc25583-72c6-4ac0-9f52-ed535d3cd587","block_type":"box","text":"II-1","page_number":38,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"66446de7-8212-43ca-9f46-415f765512d0","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"70c5f69f-441c-47ca-bd0c-814e404f08a0","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":39,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"e19feadd-5c59-4fa6-9204-db77c23f2dd9","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":39,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"da4c1fb1-fbd2-43cf-ae2e-f52b1189df04","block_type":"box","text":"interest rates decline, the value of an asset-backed security with prepayment features may not increase as much as","page_number":39,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"4dd4d2d4-6d46-4ee4-9d26-485fe47f92a7","block_type":"box","text":"that of other fixed-income securities, and, as noted above, changes in market rates of interest may accelerate or","page_number":39,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"9db7daa5-5510-4314-b1d8-3fbca135b4eb","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":39,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"ed8ecf7e-2ceb-4386-baf8-a22661958a9c","block_type":"box","text":"Asset-Based Securities.","page_number":39,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"68d54f47-33b6-45c0-be15-b6114883bdae","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":39,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"8140c5a5-7e7a-4cf0-9a42-8928048f6d46","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":39,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"5bbae728-738e-406e-b6c8-0b253cf685bb","block_type":"box","text":"asset such as gold bullion. These securities are referred to as “asset-based securities.” A Fund will purchase only","page_number":39,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"3dba97e2-565d-441e-bd43-58400be62dde","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":39,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"96cd054b-e7b1-46f8-a460-a92a21796c26","block_type":"box","text":"investment grade (for example, AAA, AA, A or BBB by S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), or Baa by","page_number":39,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"86022e0c-a4cf-49ec-b910-5b949c46e0e4","block_type":"box","text":"Moody’s Investors Service, Inc. (“Moody’s”) or commercial paper rated A-1 by S&P or Prime-1 by Moody’s) or by","page_number":39,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"0287870f-f317-4d5d-b5a5-c5e11ab2c3cf","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":39,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"0a803e6e-a2c8-476c-9bc9-8b4a6739ac66","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":39,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"28f242c2-4616-4e27-b027-c5a9b5c36d28","block_type":"box","text":"likely to be downgraded than securities rated in the three highest rating categories. If an asset-based security is","page_number":39,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"5b094bd5-ae65-4eee-a772-887d4dfd04bb","block_type":"box","text":"backed by a bank letter of credit or other similar facility, the Manager may take such backing into account in","page_number":39,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"d7f2b842-baaa-4e4c-8348-6e2cb7878b27","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":39,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"99e855b4-0279-4a86-bad0-ef894e8d3831","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":39,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"7892eb25-1e8a-4794-845e-75def9840f62","block_type":"box","text":"the two price movements. Asset-based securities may not be secured by a security interest in or claim on the","page_number":39,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"083f9972-944c-4eed-b9eb-7c46c256356d","block_type":"box","text":"underlying natural resource asset. The asset-based securities in which a Fund may invest may bear interest or pay","page_number":39,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"e9a96b34-b711-47f9-9233-d72057ff0386","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":39,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"f77c9e67-f18f-4316-b805-a241013491a6","block_type":"box","text":"at maturity in cash at the stated principal amount or, at the option of the holder, directly in a stated amount of the","page_number":39,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"f142b4a6-46e5-4280-96f2-94ddbb11f50e","block_type":"box","text":"asset to which it is related. In such instance, because no Fund presently intends to invest directly in natural resource","page_number":39,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"66f52bb3-9788-419d-9d8c-87495bf33b77","block_type":"box","text":"assets, a Fund would sell the asset-based security in the secondary market, to the extent one exists, prior to","page_number":39,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"ad44666b-37fa-4707-b359-4e3d2bdffe9a","block_type":"box","text":"maturity if the value of the stated amount of the asset exceeds the stated principal amount and thereby realize the","page_number":39,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"f31cb37e-d8c9-4e5c-b353-31e00b4ad094","block_type":"box","text":"appreciation in the underlying asset.","page_number":39,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"9f40d35c-22c1-4aaf-8db4-c53c9b979824","block_type":"box","text":"Precious Metal-Related Securities.","page_number":39,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"2098431b-f3dd-44f1-ab4a-3a6f58d579be","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":39,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"11326b7e-79b9-480f-91b3-1b11de526195","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":39,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"5f198fc5-73da-4a65-9481-0461bfd5751f","block_type":"box","text":"e.g.","page_number":39,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"1aa417ec-30bd-4641-aaba-4d1f972e1c29","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":39,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"9d65b6f3-1bc8-4865-8f75-1459e9248d28","block_type":"box","text":"indexed to the value of such metals. Such securities may be purchased when they are believed to be attractively","page_number":39,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"e97f1dd1-5a0e-437d-8fec-b593cd1c2924","block_type":"box","text":"priced in relation to the value of a company’s precious metal-related assets or when the values of precious metals","page_number":39,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"8e466e1d-ebfa-41d3-b339-22ac56c5b618","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":39,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"b8d1fcb3-85d5-4b0c-ad1d-2ef291458296","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":39,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"fdb445c5-b8fb-48dd-8185-b2c1d73065c2","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":39,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"109e2f33-2255-40b6-9211-0fcaec4543d6","block_type":"box","text":"metal prices during such periods. In addition, the instability of precious metal prices may result in volatile earnings of","page_number":39,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"0b831293-4b33-4c57-b808-016d0bc53350","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":39,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"da4d2ef6-cbb0-420e-be27-88aa3e7db107","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":39,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"b4450576-1132-43a2-ad59-eb6ea6a15346","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":39,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"4d59a786-5f55-4ef8-8879-58a2b739bc8e","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":39,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"ae5b1c7a-3694-4308-8be6-3164751107bb","block_type":"box","text":"South African gold production.","page_number":39,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"84857786-ef24-4cd3-b67e-e74a9646d8fd","block_type":"box","text":"Borrowing and Leverage.","page_number":39,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"568d7975-7829-4ba8-b541-0f98ab08d407","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":39,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"a0714fa8-14bb-4c40-b917-47325c11f043","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":39,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"9b860855-eb9f-4397-9ebd-43bb9560c1dc","block_type":"box","text":"securities at any time when borrowings exceed 5% of their total assets, except (a) to honor prior commitments or","page_number":39,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"ff8c058d-0fbd-4968-81b4-0e1c53ad7e65","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":39,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"f49925df-0387-40a9-af10-4c6d63dd5d3e","block_type":"box","text":"other securities transactions.","page_number":39,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"1f33d04c-cf8a-469a-a888-e7a869aad135","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":39,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"bb7f31a7-7986-4a69-9682-74f37b9a6442","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":39,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"9cb90163-92e6-4cd1-99f8-ac58deba4923","block_type":"box","text":"leveraging increases the Fund’s exposure to capital risk, and borrowed funds are subject to interest costs that will","page_number":39,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"69da1bb8-aad2-4ba5-a6be-832e6861b507","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":39,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"3a1c8018-47a2-4085-8fbb-7546aa9eeaee","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":39,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"11d7aeda-9b0d-453e-be06-f8ce58892058","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":39,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"5900e536-be4c-46df-bdab-a88582bf1134","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":39,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"16282b18-aae2-40a3-be7e-39d417f9f420","block_type":"box","text":"for the Fund that can exceed the income from the assets purchased with the borrowings. To the extent the income or","page_number":39,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"f043a2f5-d6ae-402c-bde8-071393c29a0e","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":39,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"a3d8d6f2-6b91-4702-9d5d-d916cde653cf","block_type":"box","text":"pay on the borrowings, the Fund’s return will be greater than if leverage had not been used. Conversely, if the income","page_number":39,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"167b45c1-e660-4113-b66f-d1de00b8d4c7","block_type":"box","text":"or capital appreciation from the securities purchased with such borrowed funds is not sufficient to cover the cost of","page_number":39,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"584a5473-a635-40f0-90dd-e8ccf01a91ec","block_type":"box","text":"borrowing, the return to the Fund will be less than if leverage had not been used and, therefore, the amount available","page_number":39,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"d16ae671-1ee8-4882-87b7-6c3b8dca4197","block_type":"box","text":"for distribution to shareholders as dividends will be reduced. In the latter case, the Manager in its best judgment","page_number":39,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"04440833-bf94-47e4-be48-fc2b3b8e31f7","block_type":"box","text":"II-2","page_number":39,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"135561ce-ac3c-4fd4-aa31-b7a502560fb4","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9ca2732e-1a5a-41b9-9eac-c1ac41d76b24","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":40,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"de8ca2f0-3e8e-4d9a-88e3-ed87a287edb1","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":40,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"baf8db2f-1dab-452b-bcf0-39cf2670dc39","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":40,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"f1c928c2-38cb-4779-96ab-67e1dc06f65d","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":40,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"bf82c775-ccc5-4443-a0eb-77178b3502be","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":40,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"0df354ae-545a-484c-a72a-fb7bfc94023a","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":40,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"3f408291-4fd8-447d-802c-0f94ea0b1123","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":40,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"4ecaab7b-eeb5-4c0f-b733-3608b71a7849","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":40,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"d4775695-17b4-4349-aa64-5c2737c74930","block_type":"box","text":"Each Fund may at times borrow from affiliates of the Manager, provided that the terms of such borrowings are","page_number":40,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"546caefd-e658-4e2f-a6cb-f1b4e7521dc5","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":40,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"3abcec09-dfe1-4b32-b2cd-1692f7a9ed96","block_type":"box","text":"Cash Management.","page_number":40,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"0179e71f-6be8-4f26-aabb-8cacc15c153c","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":40,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"b71db4f8-98ce-4d8f-8613-999bdbb89f10","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":40,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"3c705214-746d-4cec-acc4-4a2341666b3a","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":40,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"bd5798a7-0fd7-479d-9867-2099999d0fbe","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":40,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"7e4830a3-f367-4259-89dc-0037e6c7186f","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":40,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"44c0d402-3b88-40fc-8ee5-ece4fa791a03","block_type":"box","text":"Securities”); (ii) other fixed-income securities rated Aa or higher by Moody’s or AA or higher by S&P or, if unrated, of","page_number":40,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"a4619005-dbb3-4a28-bc0a-69cfbe4fdeda","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":40,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"def15d38-cb94-4498-b6a0-d3287f9809fa","block_type":"box","text":"cer tificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":40,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"1966652c-3807-43f7-8e2f-731ba43d3ce0","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":40,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"71a92630-c4cd-4f06-b7c9-a0d266971b57","block_type":"box","text":"have outstanding debt rated Aa or higher by Moody’s or AA or higher by S&P or outstanding commercial paper, bank","page_number":40,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"31066029-138c-4abc-906a-ad4195884c72","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":40,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"f4ea1234-290c-442b-9408-3cb8853f4ea7","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":40,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"31abb2be-b377-474b-a8bf-d00d465f3ef3","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":40,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"983599e9-a936-4a66-b052-2a479fda17ac","block_type":"box","text":"Collateralized Debt Obligations.","page_number":40,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"ceda6907-da3c-4ba6-b39d-0c6cfd94bbc9","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":40,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"cd415d68-493e-4337-b762-9b419a78e364","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":40,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"c34ba418-5fdf-4dab-878a-863c9dd7881d","block_type":"box","text":"structured securities. CDOs are types of asset-backed securities. A CBO is ordinarily issued by a trust or other","page_number":40,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"5532b569-65c4-4137-85b0-de7185554106","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":40,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"27687728-84a7-4a8b-a631-b5ded22e876c","block_type":"box","text":"include high risk, below investment grade securities) held by such issuer. A CLO is ordinarily issued by a trust or","page_number":40,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"52e33d3d-6689-459d-b9b9-7c4e274d280d","block_type":"box","text":"other SPE and is typically collateralized by a pool of loans, which may include, among others, domestic and non-U.S.","page_number":40,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"42661003-ef58-4289-b7bc-c265ec7cd7e3","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":40,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"22c4c3aa-3917-46af-a3d5-788bfc758e51","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":40,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"655f8382-9561-48d4-8ed3-2767c7e46222","block_type":"box","text":"the United States may not be deemed to be foreign securities if the CLO is collateralized by a pool of loans, a","page_number":40,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"8f1bfb66-1c3c-401c-9ab8-d2142e29039d","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":40,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"8f190fc8-8c11-41e6-b161-b61702165225","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":40,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"579dc368-0af4-4035-be01-72f43b20e8de","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":40,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"b5c933d3-a9fc-4d08-9a28-be24dfebb841","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":40,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"1ff3f557-5446-4836-821a-e1530b547d9e","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":40,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"19aaecc9-3db6-4373-af78-2b554a3e06cf","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":40,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"e54a7554-a965-49ed-97ed-a698222e52bf","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":40,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"ee25afb3-f634-4fbf-9653-cf6550aa264d","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":40,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"3ed656c7-fbb7-40a6-a068-67e06f339bc7","block_type":"box","text":"bonds or loans in the SPE and serves to protect the other, more senior tranches from default (though such protection","page_number":40,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"e2215c4c-3f84-4a20-8e71-92b71c953058","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":40,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"f4faef08-2ed5-41ed-a984-b1830d9d8063","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":40,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"40046fb9-1324-44a9-afa0-6e3a30118b5c","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":40,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"dbd5b561-40a7-4daa-aedc-c7355261b541","block_type":"box","text":"of the underlying collateral by rating agencies, forced liquidation of the collateral pool due to a failure of coverage","page_number":40,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"138ab33e-05fd-4b20-b7ad-e15b8e074a55","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":40,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"cfe17b00-335f-4d40-bc7e-d46737e8a8a3","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":40,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"bd718c38-7bc3-4b5c-a8c5-062a73af9dc4","block_type":"box","text":"of a CDO may be paid in kind or deferred and capitalized (paid in the form of obligations of the same type rather than","page_number":40,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"c57e2bfa-6818-4ce0-a19f-075b98530841","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":40,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"6caa864c-ce9b-4706-b41f-b2cfc2944535","block_type":"box","text":"The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the","page_number":40,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"fbd52e8e-6f3e-4be2-9b5f-35e9c24ee2ae","block_type":"box","text":"CDO in which a Fund invests. Normally, CBOs, CLOs and other CDOs are privately offered and sold, and thus are not","page_number":40,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"f80432f9-1f99-45a0-8485-8e255b87af9d","block_type":"box","text":"registered under the securities laws. However, an active dealer market may exist for CDOs, allowing a CDO to qualify","page_number":40,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"43b4a938-c16d-4e05-81ea-6e3e333e666e","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":40,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"db130d3e-9f06-41a2-9077-b22528c624b6","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":40,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"349fc15b-9f66-41b7-892e-c3c5a3284f17","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":40,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"47b9dc3f-f505-40db-b916-a858283edacd","block_type":"box","text":"II-3","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"0e914080-2e05-4412-bc8e-a00cd3744459","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"abd04ce6-8c13-4a99-bada-3b9c00c0be11","block_type":"box","text":"risk that the collateral may default or decline in value or be downgraded, if rated by a nationally recognized statistical","page_number":41,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"331eb120-760d-49ba-b154-0945a5b096a9","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":41,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"4550a565-4458-438c-947f-d743585a643e","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":41,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"d7faeba9-f36f-4d99-8308-f7c2b454c29e","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":41,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"ca084685-dba9-4e97-91f6-852b61373751","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":41,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"6a1460b0-031c-4a34-ba3a-ea0236511a7a","block_type":"box","text":"(vii) the risk of forced “fire sale” liquidation due to technical defaults such as coverage test failures; and (viii) the","page_number":41,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"af8cfb26-2a37-4b44-9ffd-9245fe534fdd","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":41,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"ae807611-d34b-4469-8a91-778b8af299b5","block_type":"box","text":"Commercial Paper.","page_number":41,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"989d35a2-4794-471c-868b-7be8c8ee0233","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":41,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"51c45224-3375-498d-97c7-884dab39a9e0","block_type":"box","text":"Fund includes “Section 4(a)(2) paper,” a term that includes debt obligations issued in reliance on the “private","page_number":41,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"7cfe6645-4c40-4b48-b123-cdbcb38442ad","block_type":"box","text":"placement” exemption from registration afforded by Section 4(a)(2) of the Securities Act. Section 4(a)(2) paper is","page_number":41,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"3cc9f845-7981-491a-9257-12637b3849bc","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":41,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"7a47b123-92bb-4b94-b81d-731790b2b1fe","block_type":"box","text":"investors such as the Fund through or with the assistance of investment dealers who make a market in the Section","page_number":41,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"ae8f19b1-e18c-49e8-92d2-1e16ce19e32f","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":41,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"5b922421-c6b3-4fab-80da-1e36ca62ff8d","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":41,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"768aa9d8-2a56-4c86-ad04-33248726005f","block_type":"box","text":"time of purchase) “A-1” by S&P or “Prime-1” by Moody’s or when deemed advisable by a Fund’s Manager or sub","page_number":41,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"c98a2cfa-52c3-45c3-9539-5caa2d10a7cb","block_type":"box","text":"adviser, “high quality” issues rated “A-2”, “Prime-2” or “F-2” by S&P, Moody’s or Fitch, respectively.","page_number":41,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"d2419b7c-387e-441e-81b2-8ec5f281791e","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":41,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"7035526b-e7ee-47ed-baee-46c988dc2f5e","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":41,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"74d50955-b73b-4aff-adfd-4b6a75b0d9d0","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":41,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"4933148f-2373-47ee-9b9a-e17f5dd87000","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":41,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"5788688d-93a1-42e8-b031-3e46cb4ee276","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":41,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"60126bbd-fa3b-453a-9db0-fef50e7eefe3","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":41,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"b3ee7f35-9ff9-403b-a182-f395f1a67b56","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":41,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"34d25930-ad42-4484-bad3-141fa9c001a6","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":41,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"15d74dfc-e70f-4ec4-ab01-0106e819b98b","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":41,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"5a38c464-c61a-400b-99d0-cacb47f0fd05","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":41,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"40e6198a-1f83-4268-ab1b-480349eb5975","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":41,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"0178714e-d8df-4062-8cc6-ecba28b1eb8c","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":41,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"5df86351-4c8c-4c29-bc06-0ccb7330c3ff","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":41,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"77e520c1-a0df-4d9b-8451-1ceabeee0239","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":41,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"37b61afc-23b3-4f49-9976-2782258e555d","block_type":"box","text":"variable.","page_number":41,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"9dbff12a-63bc-453c-a7b9-ba7381fc3bd2","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":41,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"6535bd9c-53a5-475b-ad2a-4db066d2e4eb","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":41,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"fb1dcd99-2dc2-4563-b7bc-363546805613","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":41,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"84df8e47-c7fb-4d0d-b60a-0bd01c875aaf","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":41,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"1e777683-1b9a-47da-ad36-ac1db8ac45e8","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":41,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"b0fe4dd5-c0ea-4037-a96e-1761e35e32e4","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":41,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"218ab80c-0027-4c28-adb9-61bdbc44483e","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":41,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"4951c2c5-724b-46df-84f9-83fd9e607c64","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":41,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"b1c822e2-72e2-4afe-b2c8-423b7226a6b2","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":41,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"d06df3a1-a893-4b02-8408-e38fb96b5f76","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":41,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"e18c1d09-79ab-4aed-85e0-d16c588313c1","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":41,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"d2c114a5-e7e8-4a7b-a31f-0667d7ca9737","block_type":"box","text":"securities. Over the long term, the returns on the Fund’s investments are expected to exhibit low or negative","page_number":41,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"1f8777a6-8003-44f4-b7fa-4abff069c348","block_type":"box","text":"correlation with stocks and bonds.","page_number":41,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"1e142445-4cc3-400b-9d8f-371ad607be07","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":41,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"234a4e46-dce6-4339-b045-3efc930f7243","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":41,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"b117d983-410a-477b-93b0-043758f03cd4","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":41,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"5ad0b11a-1c77-435a-a09f-9b7c9062c21b","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":41,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"cf19ca8c-e2d6-4603-9704-e0603552e78d","block_type":"box","text":"be predominantly a security if (a) the issuer of the hybrid instrument receives payment in full of the purchase price of","page_number":41,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"a9350f23-1bd9-4bb5-9c6e-43c976abdc26","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":41,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"2d2976cf-db7f-4231-bda3-8eb8ac6848dc","block_type":"box","text":"holder of the hybrid instrument is not required to make any payment to the issuer in addition to the purchase price","page_number":41,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"b173c2a0-6899-4388-8d40-996e5ec7b559","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":41,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"637c25c0-af02-4781-969e-7e2c018aeff2","block_type":"box","text":"instrument or at maturity; (c) the issuer of the hybrid instrument is not subject by the terms of the instrument to","page_number":41,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"e8100b28-2fb3-43eb-b334-b845b155f27f","block_type":"box","text":"mark-to-market margining requirements; and (d) the hybrid instrument is not marketed as a contract of sale of a","page_number":41,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"0275600d-5a3f-4c1e-be91-bf1e5c1107f0","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":41,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"6ec93676-6981-437b-b0e6-464d3d335354","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":41,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"7eb7247f-3828-429d-88b0-00e931ffc281","block_type":"box","text":"principal protected hybrid instrument means that the issuer will pay, at a minimum, the par value of the note at","page_number":41,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"9bb10edc-7218-4e41-96e4-7ae76deb1583","block_type":"box","text":"II-4","page_number":41,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"0bb888e1-9d68-4d1c-bbf1-9c0e994524a3","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cc275d9b-14b2-4408-9b7b-a6f929c6750e","block_type":"box","text":"maturity. Therefore, if the commodity value to which the hybrid instrument is linked declines over the life of the note,","page_number":42,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"9c2a1cc0-2794-4c5d-aa17-7593b9dbc4c3","block_type":"box","text":"the Fund will receive at maturity the face or stated value of the note. With a principal protected hybrid instrument, the","page_number":42,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"097374e1-5cce-4cdf-b578-0c3d7f91fc67","block_type":"box","text":"Fund will receive at maturity the greater of the par value of the note or the increase in its value based on the","page_number":42,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"9b2e4cde-3156-49c8-a5d7-13cfdbb465c9","block_type":"box","text":"underlying commodity or index. This protection is, in effect, an option whose value is subject to the volatility and price","page_number":42,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"5d3ea3e8-18ea-4785-9013-27cce858fb36","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":42,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"9edc6302-53c2-425a-a035-f0cb97cb1cfe","block_type":"box","text":"cost of the protection. In addition, the protection feature depends upon the ability of the issuer to meet its obligation","page_number":42,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"2396ad2d-ebc7-409c-bd9d-47b39be2e9bb","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":42,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"211d640f-4d8b-4aef-b6d8-5db2e134307d","block_type":"box","text":"the Fund will receive at maturity of the hybrid instrument either the stated par value of the hybrid instrument, or","page_number":42,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"736c385c-7722-40ea-9509-8f35401f2a0b","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":42,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"3a7c259c-0aa3-4dc1-b289-5a8ae2e9b2f4","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":42,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"710eb2c4-218a-4485-97ed-7c0786a4f9ce","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":42,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"55bb69de-1bb3-4b4f-9f69-db0a2ccf000a","block_type":"box","text":"variable to which the hybrid instrument is linked declines in value during the term of the hybrid instrument. However,","page_number":42,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"0dc2609a-f653-4cef-94c0-ad034c3ca10d","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":42,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"0fcf4cfc-00b0-4971-8ac7-b505db759a16","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":42,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"da5958c9-b5fd-49e4-a46f-1ea884f501ca","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":42,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"3f71ba72-4d0c-477f-bec8-1029486dff27","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":42,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"65aa5513-f29f-4c03-a150-950b392fad7f","block_type":"box","text":"economic variable may have declined sufficiently in value such that some or all of the face value of the hybrid","page_number":42,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"8ef2e354-a09b-4534-bece-396518bcbbfb","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":42,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"4268c33d-46cd-4e04-8fe2-7807c8d757e9","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":42,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"c12811f2-8baa-4581-ab2b-768587200bdd","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":42,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"7f867fde-aa4b-417d-83ac-a0222092f59e","block_type":"box","text":"index or other economic variable over the term of the note, the cost of the note, and any other economic factors that","page_number":42,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"ac36c914-aed9-4707-945e-0ee206a9d281","block_type":"box","text":"the Manager believes are relevant.","page_number":42,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"f44f114f-f181-4b5e-a3bd-e8be343d75b8","block_type":"box","text":"Limitations on Leverage.","page_number":42,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"7fb5730a-16f9-437f-a7bd-4009f958a0eb","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":42,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"3e8cfb33-82ba-4856-bf4e-33403e1e774b","block_type":"box","text":"avoid being subject to undue leverage risk, a Fund will seek to limit the amount of economic leverage it has under any","page_number":42,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"a66ad8cb-8e25-43ce-8cb6-c51915575200","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":42,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"22052fed-18b9-4a98-9ac5-0be81acf728c","block_type":"box","text":"instrument if, at the time of purchase: (i) that instrument’s “leverage ratio” exceeds 300% of the price increase in","page_number":42,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"c95d0d6c-cfb4-4635-90b8-8e86d7aaba31","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":42,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"30af2c22-20a7-4010-a9d6-e059e3ad09b3","block_type":"box","text":"ratio” exceeds 150%, measured at the time of purchase. “Leverage ratio” is the expected increase in the value of a","page_number":42,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"c9a80433-3f9f-4655-8a9c-58e341c06db2","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":42,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"a33be3d8-b753-4725-8772-a571e87528e0","block_type":"box","text":"other economic factor. In other words, for a hybrid instrument with a leverage factor of 150%, a 1% gain in the","page_number":42,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"019c583e-3f4e-429f-a095-c5d2afc61b0d","block_type":"box","text":"underlying economic variable would be expected to result in a 1.5% gain in value for the hybrid instrument.","page_number":42,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"a8bfdc39-d179-49da-ab5c-c879d519e525","block_type":"box","text":"Conversely, a hybrid instrument with a leverage factor of 150% would suffer a 1.5% loss if the underlying economic","page_number":42,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"cf68e260-d9c7-473e-aa74-7ea3f556f8e0","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":42,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"f5e286dd-639b-4de7-9db8-7a4e13b0815e","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":42,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"35a02910-d6df-4b7f-b036-1aa6c4e2c0f1","block_type":"box","text":"contracts, their notional values. A Fund may at times or from time to time decide not to use leverage in its","page_number":42,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"8c80f146-2c57-4411-85ff-447f114caa3e","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":42,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"11a1179b-c35a-4279-abb5-0ec7f42adf07","block_type":"box","text":"Counterpar ty Risk.","page_number":42,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"554f0059-0a45-423a-a668-9b3d6f7ead8f","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":42,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"420336f5-5b44-4ca5-808d-f48f04eb0f98","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":42,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"d50d20d3-8947-4125-a430-903ff10493a6","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":42,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"ddf49790-01b1-41a6-926f-cff70b987b41","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":42,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"876f2b33-8f88-4333-9f4d-357b1b8e0fb2","block_type":"box","text":"e.g.","page_number":42,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"268c6f63-8699-42dc-bd02-ea61040a6086","block_type":"box","text":",","page_number":42,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"e32a5329-b282-4191-b3e1-8100423b00b4","block_type":"box","text":"ratings of AAA or AA by S&P). Therefore, the risk is small that an exchange clearinghouse might be unable to meet its","page_number":42,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"0aa9721a-9ca2-43f6-8561-2211b09a9a0a","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":42,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"a427b2ba-d963-4267-86a0-63cf60775a5d","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":42,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"656f99e3-bae7-4b52-84ed-4fc88c385a6b","block_type":"box","text":"obligations under the structured note.","page_number":42,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"cb0ccccd-2a64-42cc-b9fc-3122d3673129","block_type":"box","text":"Convertible Securities.","page_number":42,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"56132aa0-9776-44f9-8557-ad782fa0d3d7","block_type":"box","text":"A conver tible security is a bond, debenture, note, preferred stock or other security that","page_number":42,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"55e452fc-6a3a-4a93-acd5-fc2d78201af8","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":42,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"8dd79065-5f49-44e6-a64d-abcbabf863ac","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":42,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"a07859d3-3a32-4311-81ec-289f16360494","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":42,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"91fe02cc-7d47-494d-9ea1-b6e73d0454e9","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":42,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"373fd621-47c9-4508-9e01-ca2e1600ef16","block_type":"box","text":"characteristics similar to nonconver tible income securities in that they ordinarily provide a stable stream of income","page_number":42,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"68c885b6-baf9-4cbf-bf35-7a23c291dbb8","block_type":"box","text":"with generally higher yields than those of common stocks of the same or similar issuers, but lower yields than","page_number":42,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"9c404c13-6910-4281-8b4e-4a1645b1148f","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":42,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"6c614472-8209-48bb-8ebc-19714ae6aff4","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":42,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"3eec654a-36a3-4fbd-b65c-3dfbbee4cec2","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":42,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"6dd2724f-e520-414d-9e33-5b581454d5c2","block_type":"box","text":"Conver tible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":42,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"97b07412-1c6c-4d22-8204-fbc97768f416","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":42,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"4ee07053-8b2c-4172-9f87-0b979fbbe1ac","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":42,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"7b4f3db9-0d81-4575-9eb9-3f53e5911176","block_type":"box","text":"II-5","page_number":42,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"cc4c7b72-1f80-4d30-b305-8e86d058dc66","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":42,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eb8a1294-8085-4d32-a37f-50acc17ed8df","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":43,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"99026623-c0c5-4bf7-9ea5-ad8c3425d046","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":43,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"06fa9aa7-752b-4b81-83e2-edde1523a49b","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":43,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"bbf1fbda-2a17-4030-a587-c6d9c63aca30","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":43,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"98bb64a9-bfb9-4ff6-80a9-65e0f4a5e8f9","block_type":"box","text":"in value relative to the underlying common stock due to their fixed-income nature. As a result of the conversion","page_number":43,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"6e65a440-6a23-4ce8-b614-a8c9c973a8c7","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":43,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"8c1ef326-4489-483a-9638-fdc242f1eae9","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":43,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"57bf7120-8da3-4b7b-bf11-9c64b6e58fab","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":43,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"2d125f78-1487-4956-b978-1faa9ed0e11f","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":43,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"13538dc7-ead9-4219-b6e0-86d4b6fe9db1","block_type":"box","text":"things.","page_number":43,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"62759aa9-cd56-4b06-9636-8f1e1e47764d","block_type":"box","text":"Conver tible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":43,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"0d0a9c4c-88fc-4cdc-8e06-434539109c94","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":43,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"ae0e8fd7-ca99-4ee0-b4a6-32e0d06de8ce","block_type":"box","text":"securities may be quoted in the currency of the country where the issuer is domiciled. As a result, fluctuations in the","page_number":43,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"121f5aa1-8d6b-46b6-98c4-8255822b9516","block_type":"box","text":"exchange rate between the currency in which the debt security is denominated and the currency in which the share","page_number":43,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"2b3a3515-a492-4751-96f4-76cb51d717a2","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":43,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"24ef1906-7c81-43fc-b180-ce617d538b31","block_type":"box","text":"a currency different from that of the underlying equity securities, the conversion price may be based on a fixed","page_number":43,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"88a7ba0e-efbd-4362-813e-c03cb55e123a","block_type":"box","text":"exchange rate established at the time the security is issued, which may increase the effects of currency risk. As","page_number":43,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"3f743279-0cf4-4539-995a-f649bdd0210a","block_type":"box","text":"described below, a Fund is authorized to enter into foreign currency hedging transactions in which it may seek to","page_number":43,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"ac249241-1c1f-4c90-81ab-75db228c73a5","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":43,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"78f2f138-6d4a-46f1-9ef9-17b8884ea7a0","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":43,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"dc63229c-2c51-4b24-9630-60ec0a070b1d","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":43,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"9eb09ba6-d603-42db-9be9-5a6847fdae10","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (","page_number":43,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"e43b78a6-9387-4588-b4cc-13dfc60188d6","block_type":"box","text":"i.e.","page_number":43,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"bcdf98ba-b590-471c-9335-b0efe8f0815e","block_type":"box","text":", strictly on the basis of its yield) is","page_number":43,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"73d671c4-c680-45c6-a1a8-89306a7a7ac6","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":43,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"2f40147f-b7fe-405d-bc12-507d7f405ae0","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":43,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"9eb4a0ef-be5c-48fe-bc98-c15fd42dc423","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":43,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"98bcb612-461e-40d0-ad8c-370561a08c4f","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":43,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"a4e2aefe-01b5-4399-830a-df6ba0318410","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":43,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"3d2c64ee-01b4-4155-b397-8ee84a7547dd","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":43,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"b5e9802e-11ae-4f85-88ff-4f70726e5a87","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":43,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"326de1e5-4226-4aeb-8e99-7c1bba2f3708","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":43,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"efeb0676-0fe8-4d4f-b903-a70a45cb239f","block_type":"box","text":"over the conversion value to the extent investors place value on the right to acquire the underlying common stock","page_number":43,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"a0a3de3f-d712-4b0a-8f13-30cae3ce9b6e","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":43,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"20ab410c-b713-4d6f-8b67-66a17d396fe6","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":43,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"cfb0314f-54ba-4101-8f3f-2c6a8a25ce74","block_type":"box","text":"than the securities’ investment value.","page_number":43,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"19afa5b2-318a-4abe-a02c-c0f9bb02f2f6","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":43,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"5d95fdc2-0172-458d-9929-15390a3fca79","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":43,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"f9046f85-fa6e-49a4-bea9-6d3509951796","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":43,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"35d3211c-093d-4757-833d-58ee8eae3094","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":43,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"fce6bc87-f5e7-45fd-9ea6-aa4a2081a347","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":43,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"419e06a9-61ac-49b2-8bdd-5bbdfb80f245","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":43,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"6ed15f56-e648-4616-a552-5efa0a7edb9b","block_type":"box","text":"holder to cause the security to be redeemed by the issuer at a premium over the stated principal amount of the debt","page_number":43,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"5b4574dd-a488-45b9-9c96-6c1b2ed247ba","block_type":"box","text":"security under cer tain circumstances.","page_number":43,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"aec9e6ee-ad46-4e10-b506-cf98abf24ace","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":43,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"838586f1-50da-4377-908e-daa3f779eb41","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":43,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"096ff20d-357b-485b-822d-beb9fa2b3b6f","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":43,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"34f79de8-cb94-4699-9853-41c452431765","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":43,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"2ef34da0-7f22-4185-a310-309559797d4a","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":43,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"768b20db-06cc-4ca9-96a4-cc3da4e8bfc9","block_type":"box","text":"public offering of its common stock prior to maturity and otherwise pays a cash amount to reflect any equity","page_number":43,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"94ca9a81-e5c5-47b6-b00b-73eb1c45c74d","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":43,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"f91a7d01-3939-41eb-8751-9f8b0297df26","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security,","page_number":43,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"1401a41b-80ff-4f07-a7ce-d75dbcbfe147","block_type":"box","text":"i.e.","page_number":43,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"05b9ad5c-56a1-4e2d-af5f-c7b8d9eca8ed","block_type":"box","text":", fixed-income (“fixed","page_number":43,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"6c2d02f9-d8a9-4eb9-a6db-589578c16f78","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":43,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"4f1123f1-2f56-4eab-8b45-6fbb575928ae","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":43,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"75e6ea65-8054-43b1-a5a4-19031f9ed85d","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":43,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"55221c26-9247-441d-9854-a8bf8471deec","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":43,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"8efbde0b-ae9c-4c13-b259-2b9e8c992b38","block_type":"box","text":"II-6","page_number":43,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"b8089d81-c796-4f76-8a98-95c0124c1633","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7e6177c8-7fb8-4028-9691-eb2ded2e16b4","block_type":"box","text":"specified quantity of the underlying stocks within a specified period of time at a specified price or, in the case of a","page_number":44,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"2501f2bc-c12f-4923-b9db-bbd9e3bf247e","block_type":"box","text":"stock index option, the right to receive a cash payment based on the value of the underlying stock index.","page_number":44,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"50d18849-0770-4878-be4f-dac3d3e6a275","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":44,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"f68e4b18-902a-49a4-ac58-43eb7e8e2ad8","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":44,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"81125a6b-6997-4f2c-9d78-2845bc3c2a9c","block_type":"box","text":"comprised of two or more separate securities, each with its own market value. Therefore, the total “market value” of","page_number":44,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"ab2ce8b3-4024-451f-9c72-f839b911dc2b","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":44,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"77ab6eb9-22a6-4cbb-8291-bbda0cc3d33a","block_type":"box","text":"component.","page_number":44,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"97d51444-5086-4896-94cc-7989046b06e1","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":44,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"447a9ede-7741-471c-b1e9-cc1f5c75916b","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":44,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"b03bc76c-4fed-4dc6-9be0-8f8d5cd9197a","block_type":"box","text":"fixed-income instrument and an equity feature with respect to the stock of the issuer of the fixed-income instrument","page_number":44,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"83f2f02d-047b-4b7c-844d-6f8651e8fde3","block_type":"box","text":"to create a synthetic conver tible security otherwise unavailable in the market. The Manager may also combine a","page_number":44,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"2de855cb-f05b-4ff1-aed6-3c8c5bcdd0ee","block_type":"box","text":"fixed-income instrument of an issuer with an equity feature with respect to the stock of a different issuer when the","page_number":44,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"62148493-203a-4f58-8d98-b46f7afb252f","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":44,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"89c2a531-38de-40d9-ac26-148600639117","block_type":"box","text":"investments. For example, the Manager may combine an equity feature with respect to an issuer’s stock with a fixed","page_number":44,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"e1dfe060-9c1e-46df-9200-6629f6e1ae54","block_type":"box","text":"income security of a different issuer in the same industry to diversify the Fund’s credit exposure, or with a U.S.","page_number":44,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"08c4d17f-ebb4-4868-83b1-bd158876e9d4","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":44,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"498ee6cc-d684-48b9-a3cb-e919d094b0e7","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":44,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"bf773603-fcf7-4463-a2fa-72089abd4732","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":44,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"a2b3f928-8ca4-4d27-a661-64672f7befc0","block_type":"box","text":"Manufactured Conver tible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":44,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"d2c3acc1-ede5-4081-b1a7-25d852c7246a","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":44,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"6fce254f-ead7-48cc-a8ae-1bbdb5f91fca","block_type":"box","text":"favorable market conditions.","page_number":44,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"8876b606-809e-4276-bd0e-2b6b022d8e3d","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":44,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"8fcfac9c-b926-4123-b225-96351f1da912","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":44,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"6b70c4c4-859d-4a2b-86e0-26847497d2a4","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":44,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"57472024-afa3-4d90-9c81-7a06c5e6f907","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":44,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"20001d78-5d88-434b-9f41-801a6cd88b7f","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":44,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"324f55db-6414-43e9-bd6a-d0e2c3174f0f","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":44,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"f945861d-30d2-4fed-85eb-3e6cacc0ca1e","block_type":"box","text":"Corporate Loans.","page_number":44,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"198bb33c-48c7-4bf2-a57f-ea5564293fad","block_type":"box","text":"Cer tain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":44,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"a9e6ab4c-4b31-48ca-8730-233a589b1097","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":44,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"0ba36c4d-b186-4d9b-afe0-cf2810df6539","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":44,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"c6a7e521-a4f3-4531-8550-13041c49d2d3","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":44,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"c1942b1a-caf0-499a-a2b4-8d870f99f843","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":44,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"e61897a5-5bff-4c0a-8b93-62c85cc970d2","block_type":"box","text":"from third par ties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":44,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"a941abb6-b07a-4193-87a9-214f04075225","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":44,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"04e6893f-3d37-4802-8e7b-afcfe8b3ae69","block_type":"box","text":"only with the Lender, not with the borrower. The Fund will have the right to receive payments of principal, interest and","page_number":44,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"63214f48-b3f2-439d-823a-923b510f289f","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":44,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"51234630-01d3-4c42-b627-0975d4249058","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":44,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"d6609131-4ce1-4d47-8d62-04446751e57f","block_type":"box","text":"enforce compliance by the borrower with the terms of the loan agreement relating to the Loans, nor any rights of set","page_number":44,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"b4a63b23-7bb4-4ae3-a016-f441244b7de7","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":44,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"4b3a3c94-fa19-4443-ab52-ccde73ed27a4","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":44,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"989409cd-1fb7-46e8-bb52-93850f627da6","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":44,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"3f4aad0d-9b6d-4840-a804-22b52f2bef75","block_type":"box","text":"treated as a general creditor of the Lender and may not benefit from any set-off between the Lender and the","page_number":44,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"d60fcaf8-49fe-408c-a995-77679bfa9ef3","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":44,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"028ea34c-7325-4472-8f29-46b868941628","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":44,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"b2c8ec74-8378-42ca-b030-6edefad716fd","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":44,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"d06880eb-e261-4b93-842d-8dd3e888dafe","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":44,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"3de4409d-9897-4e87-af5b-a5db1c20a4eb","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":44,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"a26133cb-8c5b-49ee-a1dc-12f16df49f56","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":44,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"5fc15349-d2ea-4d68-bd17-057993b91388","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":44,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"300c2bc6-f01c-49e1-8e54-b5f4572dfafd","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":44,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"ed414ca6-e712-4acd-8d7e-d33e7eefbd0f","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":44,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"6ced1829-1337-4d84-aacb-a452752d7bc4","block_type":"box","text":"could be sold only to a limited number of institutional investors. The lack of a sufficiently liquid secondary market","page_number":44,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"7124296a-84df-4364-9ead-ef3d13c6c437","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":44,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"7c9aa4f9-3dd0-4fa2-bdc9-e5dc269672f7","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":44,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"a0e7e2c7-0aab-4e32-8c60-bec6b5b8d873","block_type":"box","text":"of the borrower.","page_number":44,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"f4743bd8-2966-4e98-9525-927e648e4fbd","block_type":"box","text":"II-7","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"365c5746-5f8e-442a-9b7b-57215ab90f53","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"21b46de7-d094-49a4-9aab-365317f222cd","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":45,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"013f9c78-70ce-4d3a-9ec4-2dd6d2665c3f","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":45,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"74bd5d6e-749f-4078-b6b2-08271f126e30","block_type":"box","text":"Failure by the syndicate agent to fulfill its obligations may delay or adversely affect receipt of payment by the Fund.","page_number":45,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"038f1819-8072-4eee-8399-478d892fdd17","block_type":"box","text":"The Loans in which the Fund may invest are subject to the risk of loss of principal and income. Although","page_number":45,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"bc444e82-3a8c-45f7-8c66-8247d7b2ca94","block_type":"box","text":"borrowers frequently provide collateral to secure repayment of these obligations they do not always do so. If they do","page_number":45,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"8ed3d714-5166-4cd6-8561-84486a40c5dc","block_type":"box","text":"provide collateral, the value of the collateral may not completely cover the borrower’s obligations at the time of a","page_number":45,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"a1d83e21-7b09-49b0-b2bd-fdd4c5ac6556","block_type":"box","text":"default. If a borrower files for protection from its creditors under the U.S. bankruptcy laws, these laws may limit a","page_number":45,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"ede4ec25-f354-4836-a0f1-2e229db7d63c","block_type":"box","text":"Fund’s rights to its collateral. In addition, the value of collateral may erode during a bankruptcy case. In the event of","page_number":45,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"8f73049b-62f7-475a-bb5c-9e2a705185f1","block_type":"box","text":"a bankruptcy, the holder of a Loan may not recover its principal, may experience a long delay in recovering its","page_number":45,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"9bc1ab19-a6f9-4bac-a03f-765842f39468","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":45,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"237b8b5f-00d6-4217-bbd8-a437ca835aa9","block_type":"box","text":"Transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of","page_number":45,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"70ec6966-4584-46d9-b216-d42705e5c60c","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":45,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"cc7f0315-c10b-4475-83fb-b3ecbdee6e9d","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":45,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"df28467a-a3cc-4041-a08a-587664067fa8","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":45,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"fd71468f-71fd-4492-a40a-490902d3bd66","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":45,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"2d41e086-b2c3-47d0-b3fe-e14c035a8e36","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":45,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"52ef4f4b-0b01-4282-8ed4-86e97a628817","block_type":"box","text":"interests in Loans, such as the Funds, may not have the protection of the anti-fraud provisions of the federal","page_number":45,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"a5764871-61e2-4628-9bb3-8fc540fb3183","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":45,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"c385db1b-65d6-48c7-9732-69cb967d6b42","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":45,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"5a441894-5d8a-45e1-bd67-3404127d9f2f","block_type":"box","text":"state law.","page_number":45,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"761663a4-535b-4c75-981d-6737feae5611","block_type":"box","text":"Direct Lending.","page_number":45,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"d688ef44-b6bd-466f-84c5-6c7f2258fcf8","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":45,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"427417c6-3b38-4add-af67-bb15edeb2849","block_type":"box","text":"between the Fund and a borrower may not be administered by an underwriter or agent bank. The Fund may provide","page_number":45,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"6b64b25e-090c-46da-95bb-b55ffef1395a","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":45,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"1f104111-e573-4cbb-8833-4b5dbf112e36","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":45,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"b2373529-6e83-46a8-b15b-f9353e945ad3","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":45,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"9af76fbf-60ef-47f3-9d5c-390cb2d87adf","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":45,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"efb720e4-1848-4b4e-8d1b-73fe4163091f","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":45,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"7477bc96-8bc4-4ca1-b667-b0b526566425","block_type":"box","text":"loans are substantially similar to those associated with investing in corporate loans. In making a direct loan, the Fund","page_number":45,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"5b5d8533-89fb-46dc-b53a-ac420488576e","block_type":"box","text":"is exposed to the risk that the borrower may default or become insolvent and, consequently, that the Fund will lose","page_number":45,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"170a76b0-e3fa-4dc7-b796-f7c531db9332","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":45,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"25fd2641-0945-4315-9b3a-3b6678fc65a8","block_type":"box","text":"direct loans may be deemed illiquid. Direct loans are not publicly traded and may not have a secondary market. The","page_number":45,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"2bbe7f49-448d-4a3a-a0b2-9608e4573859","block_type":"box","text":"lack of a secondary market for direct loans may have an adverse impact on the ability of the Fund to dispose of a","page_number":45,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"315d25d1-d42b-4c77-9244-d4f20dca5c28","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":45,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"3d4030b3-2da0-48c6-8862-015e6549c66a","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":45,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"ad3f5b84-6705-4683-bc08-f407d8c356e7","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":45,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"757822f6-a570-4ec3-a124-70813d70c279","block_type":"box","text":"Increased competition for, or a diminishment in the available supply of, qualifying loans could result in lower yields on","page_number":45,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"7839e9f4-7f02-46a2-8768-5d204e0a41b3","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":45,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"7491600c-0f8f-4b20-8019-651d9467bc75","block_type":"box","text":"As par t of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":45,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"5ea5edb3-de0a-4a43-830c-1af0350b4267","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":45,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"7d606a3d-72cb-4a60-9dbb-fc6514ec6d0c","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":45,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"7f102f22-00f7-4ed8-b936-e2306de6c6bc","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":45,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"0e7b3174-7045-4668-9a48-eb3d79c8a6e6","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":45,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"c2852322-d687-47ef-b476-197e5cedc141","block_type":"box","text":"Credit Linked Securities.","page_number":45,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"822c11cd-e6ba-490d-8288-28898e27f976","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":45,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"e9fbdcca-bcac-46c7-a649-b1597524d5e4","block_type":"box","text":"securities, which are issued by a limited purpose trust or other vehicle that, in turn, invests in a derivative instrument","page_number":45,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"45388d15-4d59-475b-aa72-7b9eb816c5a9","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":45,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"75b46780-40c5-4c15-8560-4442111945e3","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":45,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"e90ce87b-e28f-4387-a9c0-7c7aaf146611","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":45,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"67eb725a-19dd-4ed9-93e2-422b59cf9b03","block_type":"box","text":"traditional income producing securities are not available.","page_number":45,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"a4de4434-a531-4adf-9ae3-990535f25767","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":45,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"4e81e077-83f6-4c1d-b661-b2ee767a420a","block_type":"box","text":"income payments (in the form of distributions) and payment of principal at the end of the term of the security.","page_number":45,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"bdece4ac-7b9e-4fdf-9901-4bcb07bc3acf","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":45,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"3537491c-c475-42f2-a54d-52dcf287cb31","block_type":"box","text":"obligations to, the counterpar ties to the derivative instruments and other securities in which the issuer invests. For","page_number":45,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"64c9b7c2-a411-4a1a-8453-a1951a62370a","block_type":"box","text":"instance, the issuer may sell one or more credit default swaps, under which the issuer would receive a stream of","page_number":45,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"f02089f2-ccc9-458c-9b85-6b0d5221147d","block_type":"box","text":"II-8","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"eaf9af82-f995-43ad-982a-1fc3d213d7aa","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e4d7b246-3971-4bdb-bebf-749557e03b2a","block_type":"box","text":"payments over the term of the swap agreements provided that no event of default has occurred with respect to the","page_number":46,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"21a8ee5a-b5bf-4385-848a-7d68250dc765","block_type":"box","text":"referenced debt obligation upon which the swap is based. If a default occurs, the stream of payments may stop and","page_number":46,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"f7befa12-6883-4677-ba23-d87f3ffaa5e9","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":46,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"cc023fa8-3c63-47ab-ab10-831a598fd5a5","block_type":"box","text":"obligation. This, in turn, would reduce the amount of income and principal that a Fund would receive. A Fund’s","page_number":46,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"d0048dc1-2ff9-4648-99cc-fa4b53cee1ac","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":46,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"efd5b0da-3407-440f-bf8c-1380de76b897","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":46,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"97c0a3e8-d4d3-4839-b4a9-f6c3e43e5d9a","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":46,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"1e6a3c7c-36cd-49d9-a555-a4a01661be62","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":46,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"7b5c1ccb-808a-45d0-ade0-816857146880","block_type":"box","text":"investments.","page_number":46,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"af5bb836-e4f2-4a26-944b-51ef35643b6a","block_type":"box","text":"Debt Securities.","page_number":46,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"fdb22e4c-a277-40ab-bacd-e6090dc2e77a","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":46,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"102c87a8-e711-4aee-84c2-a229063adb05","block_type":"box","text":"timely payments of principal and interest. The degree of credit risk depends on the issuer’s financial condition and on","page_number":46,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"2fa23717-71a1-47e6-a27a-9b2cff1db0b5","block_type":"box","text":"the terms of the debt securities. Changes in an issuer’s credit rating or the market’s perception of an issuer’s","page_number":46,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"da9a6590-7374-457a-a65a-4670e39a21f9","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":46,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"d2b11188-790b-4920-87f2-88af6dc57c25","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":46,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"807791e2-fd3c-46c8-9d59-06518dbaa1d7","block_type":"box","text":"All debt securities, however, are subject to interest rate risk. This is the risk that the value of the security may","page_number":46,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"8bda0d5d-e2f9-4105-8742-87db6a27d850","block_type":"box","text":"fall when interest rates rise. If interest rates move sharply in a manner not anticipated by Fund management, a","page_number":46,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"aaeeca4b-c76a-4f93-a677-46ee51bee2a0","block_type":"box","text":"Fund’s investments in debt securities could be adversely affected and the Fund could lose money. In general, the","page_number":46,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"3fcefc7c-90e5-4fcb-a6fd-9d3bb3b81c38","block_type":"box","text":"market price of debt securities with longer maturities will go up or down more in response to changes in interest","page_number":46,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"70bc79fb-d37f-4762-bf06-7ddab226a95b","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":46,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"d885951b-8e20-465b-89d2-c0e17e79c415","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":46,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"34403b5f-b73f-4f89-9c4c-9a85f20094ac","block_type":"box","text":"slower than expected principal payments. This may lock in a below-market interest rate and extend the duration of","page_number":46,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"bd66aa58-d2cd-48de-b235-d83eddf35ada","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":46,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"832e5413-de1c-4b42-b311-d19dee25a165","block_type":"box","text":"interest rates. As a result, in a period of rising interest rates, these securities may exhibit additional volatility and","page_number":46,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"49b2f962-6772-4319-a66c-c849001d3533","block_type":"box","text":"lose value. This is known as extension risk.","page_number":46,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"88c2f48c-108d-44ca-acdb-ccfc98f5b915","block_type":"box","text":"The value of fixed-income securities in the Funds can be expected to vary inversely with changes in prevailing","page_number":46,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"f00bec66-b894-466c-b72c-8030a560a295","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":46,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"8926856b-6c77-44e4-b155-f0756ca4b2ac","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":46,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"80a87c81-a4ec-478f-9bc5-df2c3d3b4849","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":46,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"8800d81e-f2c3-42e2-a4e5-6e8a4709f690","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":46,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"c62de4c8-c3bc-42f7-9504-3ece105ebf00","block_type":"box","text":"Floating and Variable Rate Securities","page_number":46,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"f4e19895-03b3-4062-8409-517f2bac1223","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":46,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"8380e5f1-5ec3-4d1c-ac97-80a589ad06b8","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":46,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"3c3ed063-13e7-4429-9cef-9bdd5451d1c7","block_type":"box","text":"with fixed interest rates, but may decline in value if their interest rates do not rise as much, or as quickly, as interest","page_number":46,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"de17d0bf-f023-46d7-9874-38c71c9cc0c6","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":46,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"a223c02f-bb23-480f-a16f-df4401659b0c","block_type":"box","text":"impact of interest rate changes on floating rate investments is typically mitigated by the periodic interest rate reset of","page_number":46,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"559583e6-b719-4e53-aece-ec7d34c3e827","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":46,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"3795f1e4-5db1-4485-a87b-ce59a129ebe6","block_type":"box","text":"market interest rates.","page_number":46,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"9064d326-be2b-4e5b-b8a8-132280f2bc01","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":46,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"361f8ae4-c2e0-400a-9a23-1a3911757736","block_type":"box","text":"Cer tain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":46,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"d388468b-f5d3-468c-b231-392bcff60e9e","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":46,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"b52f85b4-9ae4-4e0e-9a48-7f1319a63533","block_type":"box","text":"common. The U.S. Treasury and some other issuers use a structure that accrues inflation into the principal value of","page_number":46,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"b2a2f719-e63f-4dc3-ac91-c829e4c28034","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":46,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"9055569b-be17-4a45-bb45-70dc0929d025","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":46,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"28037543-3033-40c3-849a-caf954850980","block_type":"box","text":"possible that securities with other maturities will be issued in the future. The U.S. Treasury securities pay interest on","page_number":46,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"4b879281-843d-4460-89d3-807ddf980a3f","block_type":"box","text":"a semi-annual basis, equal to a fixed percentage of the inflation-adjusted principal amount. For example, if a Fund","page_number":46,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"5c34f7e7-9595-4944-9d5c-e612be8c01fc","block_type":"box","text":"purchased an inflation-indexed bond with a par value of $1,000 and a 3% real rate of return coupon (payable 1.5%","page_number":46,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"66353a1b-ad11-43a6-84d3-403651e9b587","block_type":"box","text":"semi-annually), and inflation over the first six months was 1%, the mid-year par value of the bond would be $1,010","page_number":46,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"9fd10e58-279f-41ec-9e8c-c72e85dcd9ab","block_type":"box","text":"and the first semi-annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half","page_number":46,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"5b480f08-e353-4130-97b9-925cd1999557","block_type":"box","text":"of the year resulted in the whole year’s inflation equaling 3%, the end-of-year par value of the bond would be $1,030","page_number":46,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"8140cb91-2148-43c4-b1b5-bf44b362bf39","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":46,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"01de5a20-74bf-4197-9db9-52a1e719ebd2","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":46,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"9fd4ad6a-adc2-4c17-a723-0ed99452550f","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":46,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"1bf514aa-2c21-4841-8db1-df5f4bc022a6","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":46,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"a1b47a03-fb36-4a0e-9178-722f4011d3e7","block_type":"box","text":"guaranteed in the case of U.S. Treasury inflation-indexed bonds, even during a period of deflation. However, the","page_number":46,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"4e9ded51-88f0-461b-8850-85a6e57e6b31","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":46,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"32a7676a-1e95-480c-b1c3-c28053cc95a7","block_type":"box","text":"inflation related bonds which may or may not provide a similar guarantee. If a guarantee of principal is not provided,","page_number":46,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"63854ab7-d1d4-4359-adf1-3a43a3aa4b9d","block_type":"box","text":"II-9","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"d478a02b-69bf-48fd-940e-06b769d86bfd","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dcb1edd7-4566-4b3d-8ec4-457f73345453","block_type":"box","text":"the adjusted principal value of the bond repaid at maturity may be less than the original principal. In addition, if the","page_number":47,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"5cd27342-dd7a-405f-ac96-0950de2c7d6e","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":47,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"5a73eff3-3b30-407d-953e-92239bf822f6","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":47,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"bf39c638-d0ea-47e9-9136-9d7e71a4e81c","block_type":"box","text":"The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real","page_number":47,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"d5fb9b9f-754c-4a97-b3ce-457666d3d802","block_type":"box","text":"interest rates, in turn, are tied to the relationship between nominal interest rates and the rate of inflation. Therefore,","page_number":47,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"9b90d714-6841-40ab-ad9c-f773e90b1b8a","block_type":"box","text":"if inflation were to rise at a faster rate than nominal interest rates, real interest rates might decline, leading to an","page_number":47,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"7b6972d8-a5dd-407a-bb16-d3b131424919","block_type":"box","text":"increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increased at a faster rate than","page_number":47,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"b5607f86-f543-4df0-baf1-4c46625e6dcf","block_type":"box","text":"inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds. There can be no","page_number":47,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"b831c034-41ab-40dd-a367-14033ac1e424","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":47,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"e45475f7-9966-405f-a4b8-d2d89796962c","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":47,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"2311ccf9-9b94-4dc3-a177-3eb88e55ec37","block_type":"box","text":"inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation (for example, due to","page_number":47,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"e71098bc-3295-4ced-bcfa-9d59f10fb10e","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":47,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"0aa6c8a0-bf15-48d3-9e3d-0cd80a0bdbd5","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":47,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"2891be9a-9af5-4732-b84c-7558d9e41185","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":47,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"5522e2b9-7278-43d6-acb6-eb938defd15d","block_type":"box","text":"Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S. Bureau of Labor","page_number":47,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"d92a9670-be49-4815-93ce-fdbe04bfdf87","block_type":"box","text":"Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing,","page_number":47,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"4d888944-6952-4a63-a3d7-7cbbc1fffea5","block_type":"box","text":"food, transpor tation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":47,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"9a71f412-d7b2-4935-a588-6099985252e4","block_type":"box","text":"reflect a comparable inflation index, calculated by that government. There can be no assurance that the CPI-U or any","page_number":47,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"d4f2012b-f9c2-4070-a19c-5db09b05ec03","block_type":"box","text":"foreign inflation index will accurately measure the real rate of inflation in the prices of goods and services. Moreover,","page_number":47,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"8490a02e-20c8-4fcc-9796-871b85c31e5d","block_type":"box","text":"there can be no assurance that the rate of inflation in a foreign country will be correlated to the rate of inflation in the","page_number":47,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"bef60e19-9371-49f3-b303-cadfbec72063","block_type":"box","text":"United States.","page_number":47,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"b973ae84-0fb2-4177-8bdf-5919b67c49bf","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":47,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"a64b98c4-4e2d-4802-8a56-0f1869e2baf8","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":47,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"9e631dba-7dcb-44e4-b0ad-440d0287d3b7","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":47,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"38783a50-1334-4f4c-80ff-e781429ad280","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":47,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"3a947fc2-5e2c-44b9-93c2-926bafe221c8","block_type":"box","text":"securities rated in the four highest rating categories of an NRSRO or deemed to be of equivalent quality by a Fund’s","page_number":47,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"3b4f9a97-808f-4b00-ad15-30f5b929de41","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":47,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"10c1d19f-aeff-4d4d-a6f7-5e60ea53ae44","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":47,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"b5a346b9-4a38-4d47-9853-328f7c7f1b1e","block_type":"box","text":"i.e.","page_number":47,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"e7727df4-bf07-4a10-b255-d4477263efdd","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":47,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"62ff9517-534e-45e2-b242-512043a36235","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":47,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"2c8f70d7-005b-4904-bbdb-9928ddfa226c","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":47,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"c186a4e7-c152-44f4-a164-8befd482d3b9","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":47,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"d2874a49-45ea-4345-b50c-fe9af0bb3244","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":47,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"dec04bad-0829-4e67-9477-bb0fc23a054e","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":47,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"bbc6ec9e-43d4-4a1c-806e-6ae3594d4e47","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":47,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"5e87b706-c19a-4847-bbdd-8e2074452cb3","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":47,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"b595c440-6979-4272-b74a-984eb4571503","block_type":"box","text":"“junk bonds” are debt securities that are rated below investment grade by the major rating agencies or are securities","page_number":47,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"4a1d6e87-9927-4a79-8c74-8de9ce631be3","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":47,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"f0c1e7aa-06b2-4362-b2da-5d59e8890e46","block_type":"box","text":"for gain, non-investment grade debt securities may be subject to greater risks than securities which have higher credit","page_number":47,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"582b0dd7-ef93-4b53-a14e-97c88d6c61f8","block_type":"box","text":"ratings, including a high risk of default, and their yields will fluctuate over time. High yield securities will generally be","page_number":47,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"99059ff5-a6c4-4f3b-9d95-a5fe549248c8","block_type":"box","text":"in the lower rating categories of recognized rating agencies (rated “Ba” or lower by Moody’s or “BB” or lower by S&P)","page_number":47,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"0205f89f-61ef-4a4f-802a-9593615122c5","block_type":"box","text":"or will be non-rated. The credit rating of a high yield security does not necessarily address its market value risk, and","page_number":47,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"a6001d2a-9b79-4122-b350-aa240f8c437c","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":47,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"eaba420c-140d-4967-aced-75497b49b801","block_type":"box","text":"condition. High yield securities are considered to be speculative with respect to the capacity of the issuer to timely","page_number":47,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"c64e82e0-a6a5-41c4-a76c-8f3c65b118a7","block_type":"box","text":"repay principal and pay interest or dividends in accordance with the terms of the obligation and may have more credit","page_number":47,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"cff532d3-ae11-4686-aa60-7ec9eb3f9c57","block_type":"box","text":"risk than higher rated securities.","page_number":47,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"f2825dba-7074-4295-a11a-6944e0e477de","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":47,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"4da11ad6-5f2b-44af-a446-a0e08fc75052","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"1b257a0e-c6e7-4f64-805b-1cd7bab03b16","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":47,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"35f5e293-8e59-4ed3-bf9a-55ffe39afdc4","block_type":"box","text":"in the issuer’s industry and to general economic conditions. Issuers of junk bonds may be unable to meet their","page_number":47,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"c2a4722e-03fa-4a25-b5b7-69d29434c2ab","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":47,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"5fd741cd-ee9a-460f-ade8-60e64a2e94e4","block_type":"box","text":"unavailability of additional financing.","page_number":47,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"93c137d2-15e7-44f5-a52b-c918f61692a1","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"ac27a66b-e0b6-43ec-86e8-d9011e8f3b03","block_type":"box","text":"The issuers of junk bonds may have a larger amount of outstanding debt relative to their assets than issuers of","page_number":47,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"48970326-07e5-4821-ae08-7239ca733ab8","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":47,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"b9ef1e31-70e5-40a7-850a-a0974b07fad1","block_type":"box","text":"The issuer’s ability to pay its debt obligations also may be lessened by specific issuer developments, or the","page_number":47,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"109b704f-fd36-4447-b046-dad2dd0eccea","block_type":"box","text":"II-10","page_number":47,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"62130263-9ffd-49cd-8901-885ac582467c","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4004db09-fd00-4f3d-baf9-35f92885bc45","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":48,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"828da39a-6732-4209-9c67-95486d6e6a7f","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":48,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"1a1e51cb-0a79-4389-b6c0-370960373818","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"ff2ebfdd-5d83-4a69-9ea9-04b1e9045a2f","block_type":"box","text":"Junk bonds are frequently ranked junior to claims by other creditors. If the issuer cannot meet its obligations, the","page_number":48,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"f6b16009-39d2-43b0-9582-70af6afe5dde","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":48,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"aab9ea13-6092-42fd-a807-b0e5918a6dd9","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":48,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"d29affd1-bf94-42d2-a115-b1d940df74be","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":48,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"4079e0f0-d950-45a4-86b6-ffe246580b56","block_type":"box","text":"investors in higher rated securities.","page_number":48,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"de348410-0952-49bb-afc6-c2db40328c7e","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"da3cac47-afc0-46b9-bf60-a8b85e9889e8","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":48,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"ac7be372-0a2c-4d2c-bd2e-09f7c8441d85","block_type":"box","text":"before it matures. If an issuer redeems the junk bonds, a Fund may have to invest the proceeds in bonds with","page_number":48,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"1b40a11b-70ab-49b1-ab0e-4158b5487e51","block_type":"box","text":"lower yields and may lose income.","page_number":48,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"91a3488a-603f-45ae-870e-021e9987b1da","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"ba943fbd-8161-4600-a15a-6ae6e6723b5f","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":48,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"b7a001d8-8c90-4033-a0d6-d4b20767328d","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":48,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"80306af3-afa0-474e-8323-6248c9d0306e","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"4ece2081-7cae-4fab-aeeb-7eb79d2cd0c2","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":48,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"870079f3-54f1-429d-a74c-7f011caa172f","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":48,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"8d37b607-f01d-4c43-b099-91aad6799078","block_type":"box","text":"securities due to the limited number of investors in that sector of the market. There are fewer dealers in the junk","page_number":48,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"cdf09193-75e9-4c72-9556-e8cedbccfc83","block_type":"box","text":"bond market, and there may be significant differences in the prices quoted for junk bonds by the dealers, and","page_number":48,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"82c6a94f-9a07-441e-8f18-a0a4adf27408","block_type":"box","text":"such quotations may not be the actual prices available for a purchase or sale. Because junk bonds are less","page_number":48,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"5c86b651-d80f-4732-a6bb-6b5d5d8dbc65","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":48,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"1816dc48-6f2a-44df-a3e2-7dcafd545ab9","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":48,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"bcc57f4f-cde6-4329-8e68-c52eefae11b7","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"dae9418a-a677-4077-a0a8-a10e325810d6","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":48,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"15df1a35-44b7-4f19-92d4-029a0e052052","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":48,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"d77cf330-2373-493f-adc9-07362c03fea9","block_type":"box","text":"par ticipants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":48,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"e2ccfa2d-4443-426a-877c-bc504c842310","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":48,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"0e790eb5-343d-4285-a1bb-9375d65db8ab","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":48,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"63c056a5-f0c4-4e5d-9e4e-60acf39e4c19","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":48,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"23e53c1a-8210-4164-bd3b-744f5a3720a8","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":48,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"89e394ad-a3a8-4ef5-aa16-c314e2ca0f13","block_type":"box","text":"due to the limited number of investors in that sector of the market. An illiquid secondary market may adversely","page_number":48,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"75c6240c-73be-4957-997c-77f8a60946ab","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":48,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"a99bf7f5-20d0-4bea-9177-bb047fa8d964","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":48,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"c825baef-d558-4ede-9cde-fe0b9ac96478","block_type":"box","text":"on high yield securities are available only from a limited number of dealers, and such quotations may not be the","page_number":48,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"bd4748ec-cfaf-4e55-a6f6-4ac6ca7058de","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":48,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"10a6a4ff-07a6-4c47-bd34-198b3b09fbd3","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":48,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"12d87b4a-acb2-4996-8f65-1ae1557aa6a7","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":48,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"4005229a-4809-4256-9931-428ced03aa88","block_type":"box","text":"role in determining such valuations.","page_number":48,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"be6b0402-4bda-4127-aa9e-1cbc6ffb0232","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"098cb040-3854-4613-8ea1-c21e22055766","block_type":"box","text":"A Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with","page_number":48,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"18db6ed8-9cdd-45c6-bc90-cb24661d8e16","block_type":"box","text":"a defaulting issuer.","page_number":48,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"5eb79c0c-09a2-4c87-907b-76e93130d94a","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"cd5ff258-b0c4-4285-8fc3-6f6c599022b2","block_type":"box","text":"The junk bond markets may react strongly to adverse news about an issuer or the economy, or to the perception","page_number":48,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"3601cf84-56e8-449a-a095-28a1e6f21f9e","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":48,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"21bad6f8-89f7-4821-ba9b-fd1caf16b131","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":48,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"ae19be5c-d457-42e7-8466-860b92565654","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":48,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"e0403a11-e179-4b5d-ab4f-0573968cac38","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":48,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"71fa0521-d3d1-4a7b-aa18-d869e569c2ad","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":48,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"a0d4f54f-67cc-4d12-a5b8-8fd94f50a8bd","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":48,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"e5aa8fd2-ff2b-42ff-ae69-01f59da53a7d","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":48,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"696284c1-ad6c-4e13-a288-0cad977b723f","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"b028a531-7e57-4940-a6d3-96a462d58ba6","block_type":"box","text":"The rating assigned by a rating agency evaluates the issuing agency’s assessment of the safety of a non","page_number":48,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"e3f0106e-a61e-459b-a2e2-ae80f5cae20d","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":48,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"b64a6ab8-0d18-4108-b60c-6c9a410f4349","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":48,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"3f0b2cbd-b0c1-4fc3-94fb-b52f21300f93","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":48,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"9f350f07-e8f6-49a4-9347-7cc2cc10d207","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":48,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"8371ccd7-9032-4159-b1b7-2dff066f5259","block_type":"box","text":"depend more on the Manager’s or sub-adviser’s own credit analysis than in the case of mutual funds investing in","page_number":48,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"d0d9a35e-187c-42a2-a040-45df9e94f270","block_type":"box","text":"higher-rated securities.","page_number":48,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"60d50f60-ec00-45de-b13e-7eec1044bd23","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":48,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"f455e509-5c09-4475-a352-3fe0f530e52e","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":48,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"5e829630-e3af-41e1-ac41-276a484f8141","block_type":"box","text":"the securities and the diversity of the Fund. The Manager or sub-adviser continuously monitors the issuers of non","page_number":48,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"1bdff805-82c0-454f-9962-b3ded4213421","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":48,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"a39c4dae-72e3-45da-a465-2d002d7fffab","block_type":"box","text":"II-11","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7020b158-7abe-467b-89e9-716c6d542898","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d56f51ae-2e96-4f88-bd5e-5f84e9073c67","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":49,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"de6a56e5-b593-4727-91bc-b8269fe8ae75","block_type":"box","text":"is reduced below the minimum credit rating that is permitted for a Fund, the Fund’s adviser or sub-adviser will","page_number":49,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"d3e51a66-6950-464d-b6d9-d6f515ed312f","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":49,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"53b3c7d0-8875-411a-ac9a-ae8e3b47bb7e","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":49,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"7e48fa3a-6355-4b6e-8107-a9a46f46986f","block_type":"box","text":"the Fund could be forced to sell its holdings without regard to the investment merits, thereby decreasing the assets","page_number":49,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"3d8b5fe1-4a85-43d5-9b43-2ba478406cfe","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":49,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"266f8417-9846-417a-9bcf-0bb02e4444d1","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":49,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"098b28f9-a0f0-424a-a608-b3d473196808","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":49,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"56d21794-cc7d-4b27-b515-667e9f4312f3","block_type":"box","text":"Mezzanine Investments.","page_number":49,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"e6aae490-6230-47f3-9dc5-b6d9b49a8755","block_type":"box","text":"Cer tain Funds, consistent with their restrictions on investing in securities of a specific","page_number":49,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"ffdc67e8-be73-4bfe-baa7-f5c3f95e352e","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":49,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"de1b86b3-a03a-44c2-b561-6c13ac3f79fb","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":49,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"4d544ab4-f7ed-4b4e-b50c-d5edd73b5f7d","block_type":"box","text":"e.g.","page_number":49,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"36ebf364-2a17-4a55-b507-90cf2bb213a9","block_type":"box","text":", with","page_number":49,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"fa22c208-7ec4-47b6-8347-3eaca8c69337","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":49,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"5604e24c-7169-4422-b014-103ff13e8252","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":49,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"087f0d0a-5d29-41ba-a339-80c4e437b910","block_type":"box","text":"life is significantly shor ter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":49,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"9fb2a73a-d7f7-400b-a7fe-bb3f111fae83","block_type":"box","text":"other obligations of the issuer.","page_number":49,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"9f8a7c34-cf67-4ffb-b9ae-eab6e7860c3f","block_type":"box","text":"Pay-in-kind Bonds.","page_number":49,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"543510e2-328b-4bda-9acd-664329a2e5f6","block_type":"box","text":"Cer tain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":49,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"ccf2e6bb-cc6e-4462-accc-b015f279cd3f","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":49,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"89f833c8-6764-43e4-b662-c70abae7b665","block_type":"box","text":"bonds also carry additional risk as holders of these types of securities realize no cash until the cash payment date","page_number":49,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"e8c81240-f11b-4664-a34b-fc87bed04de8","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":49,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"2ec7b78b-99e4-40f2-b810-ee83026b34ff","block_type":"box","text":"investment. The market price of pay-in-kind bonds is affected by interest rate changes to a greater extent, and","page_number":49,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"8b9f2278-c13a-4036-acfe-5c7349f0fbe7","block_type":"box","text":"therefore tends to be more volatile, than that of securities which pay interest in cash. Additionally, current U.S.","page_number":49,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"0c28e80e-cc9b-47ba-97d0-bb56f43265fd","block_type":"box","text":"federal tax law requires the holder of pay-in-kind bonds to accrue income with respect to these securities prior to the","page_number":49,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"072273eb-8a19-454e-b4e5-f6b7a368f142","block_type":"box","text":"receipt of cash payments. To maintain its qualification as a regulated investment company and avoid liability for U.S.","page_number":49,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"74d33513-d8d0-4fe6-8a86-f7531fa21feb","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":49,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"845a543c-b638-494d-ae52-f3c141f43189","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":49,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"472c752e-4a07-4f8b-bc30-7337cf9bfbf2","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":49,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"8323b5e3-19ad-4ead-8e7d-0eb14b391abf","block_type":"box","text":"Supranational Entities.","page_number":49,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"044c2471-e3ec-47d4-8f00-c37273dcd192","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":49,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"37f25ec5-6440-4c09-bd34-42bf7ed1225d","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":49,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"b41983d8-497d-4625-971b-758c501e57b6","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":49,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"3b2f7dd1-544d-4e22-b9ba-85c695d9b6ea","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":49,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"4996cd47-6db7-4180-a761-672a4c5540c7","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":49,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"22a2d545-eafb-470c-9808-f160dedb1d37","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":49,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"3b236d17-a143-48bd-845e-57c71a115fdd","block_type":"box","text":"additional capital contributions. If such contributions are not made, the entity may be unable to pay interest or repay","page_number":49,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"7264c49c-52da-40a2-9d72-97a3a9f03dee","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":49,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"366e5829-ed7b-4465-869f-9279c7236f0e","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":49,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"61734304-92c6-40d0-9856-51d3a1610f85","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":49,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"0faf4575-6477-41f2-b2e6-6ed40eb97e5d","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":49,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"c09dcaf3-8b04-4358-ab8c-f253e09f7d32","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":49,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"75b22816-076c-4bd5-8572-12d608a08dce","block_type":"box","text":"conver ted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":49,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"437a3fae-b538-43e2-8f19-cb7faf6087d1","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":49,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"aa9c30f9-1512-406a-a6f6-77c58f7b303c","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":49,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"7ba8196b-d788-4109-8835-3a80d27969fe","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":49,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"0fe338f8-65db-4852-b4fa-15a61a4066c0","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":49,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"88e041e1-8dd9-46d4-b2f2-8d60b6c0638f","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":49,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"5603cdd9-0caa-4bb4-a009-1be0c879430d","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":49,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"fc6f2c8e-6636-416b-8d22-35356653833b","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":49,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"02c8bd65-0fd8-4156-b30a-8fd19758fba4","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":49,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"dd9f83b9-688c-454c-ac35-e6064c154851","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":49,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"0482c9c9-ad1f-4f77-bebe-47a850eeadd2","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":49,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"f65712ac-3323-4870-92d9-d56b2f672ef8","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":49,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"d74ac858-1b93-41d3-9257-c218f5ad7b60","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":49,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"c7cad93b-a3f9-4ffd-86fb-5503aefe0bb5","block_type":"box","text":"Available information concerning the issuer may not be as current as for sponsored ADRs, EDRs and GDRs, and the","page_number":49,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"f15c5f34-adec-4067-9b23-9c54ca400b30","block_type":"box","text":"prices of unsponsored ADRs, EDRs and GDRs may be more volatile than if such instruments were sponsored by the","page_number":49,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"bc280920-1ee2-4b74-bbdf-9b796d11acb2","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":49,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"88514df8-8246-4e0f-88d0-c1c87ad58fbf","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":49,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"ffb73062-99de-4b73-b12c-74951479ea90","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":49,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"015fa33d-5a3c-44fa-9cee-8116c87db01c","block_type":"box","text":"II-12","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cfff3631-4db3-445f-923f-7f305b9010fe","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d88d0908-3ad5-4047-a28a-87774ff6accc","block_type":"box","text":"Derivatives.","page_number":50,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"fea264a4-627f-464e-80e8-da0cfd1e5006","block_type":"box","text":"General.","page_number":50,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"5de0e8fd-05bc-44c9-84e4-bcf611026e9f","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":50,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"3812edbd-33d4-4d0d-b20d-439368969e5e","block_type":"box","text":"their value from one or more securities, commodities (such as gold or oil), currencies, interest rates, credit events or","page_number":50,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"7e2187ba-da6a-4115-92a7-18a1b4f03049","block_type":"box","text":"indices (a measure of value or rates, such as the S&P 500 Index or the prime lending rate) or other reference asset.","page_number":50,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"1496c7b8-ffe0-4ff4-b2e6-92448a812a40","block_type":"box","text":"Derivatives may allow a Fund to increase or decrease the level of risk to which the Fund is exposed more quickly and","page_number":50,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"14c37d43-59c5-4002-a3fa-708730c2fbf3","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":50,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"f003a68b-c4b9-4344-8a60-7814980c248e","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":50,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"e7035f00-9b86-448a-b7c5-507aabe1eeec","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":50,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"cc069b3c-dd28-4017-92d1-07f0ec74e371","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":50,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"f3a4e198-e673-4a81-9841-31dab5b67587","block_type":"box","text":"i.e.","page_number":50,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"a87b8342-7705-4bb7-9677-d8a75827ba02","block_type":"box","text":", the payment","page_number":50,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"dd238d45-d680-46c3-a41a-0c3af82fa1d4","block_type":"box","text":"obligations of derivatives contracts are netted against one another with the Fund receiving or paying, as the case may","page_number":50,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"d2dc212a-a031-4617-9427-ea61a2a5493b","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":50,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"b24329bb-474e-4666-897e-4c04b0027a36","block_type":"box","text":"Hedging.","page_number":50,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"467d613b-673d-4952-b6d0-8e0eee3de286","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":50,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"573b81a0-25c1-4a13-a987-2e9274d94034","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":50,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"4719334a-b85a-4105-9dfa-ce9b7879fb40","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":50,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"9b0aaab5-05b0-43b7-819a-d6af249f5468","block_type":"box","text":"reduce or eliminate gains. In addition, hedging may cause losses if the market moves in an unanticipated manner, or","page_number":50,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"84856297-5f66-4300-90cf-d5bcbedad223","block_type":"box","text":"if the cost of the derivative outweighs the benefit of the hedge. The effectiveness of hedging may be reduced by","page_number":50,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"f139ff6f-d8ac-4462-b876-4fb5940466f2","block_type":"box","text":"correlation risk,","page_number":50,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"ab19f1e9-db4d-4076-b08e-2bfce45e6cf9","block_type":"box","text":"i.e.","page_number":50,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"20fbe252-68f2-4eca-8366-1075ae5f0a10","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":50,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"365c58b3-053f-432c-8582-a51ba1f19e3d","block_type":"box","text":"hedged as expected by a Fund, which may result in additional losses to the Fund. The inability to close or offset","page_number":50,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"e4a22cf8-7629-44d7-ab97-9b750706710c","block_type":"box","text":"derivatives could also reduce the effectiveness of a Fund’s hedging. There is no assurance that a Fund’s hedging will","page_number":50,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"c04185c5-2c0e-4585-9bf9-0307cf29cee9","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":50,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"af8c6413-1241-487d-b212-59cc55839c82","block_type":"box","text":"Speculation.","page_number":50,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"60184a20-58dc-4d84-bd20-b617e646a93a","block_type":"box","text":"Cer tain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":50,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"8974f36c-d87f-4b65-a7de-541dd3799c82","block_type":"box","text":"use of a derivative is speculative if the Fund is primarily seeking to achieve gains, rather than offset the risk of other","page_number":50,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"994bdc65-dc1c-4816-838a-f427cb9c0322","block_type":"box","text":"positions. To the extent a Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the","page_number":50,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"50baa0f8-6efe-48a5-b7c0-29dcceb060c0","block_type":"box","text":"risks of loss of that derivative, which may sometimes be greater than the derivative’s cost, and the potential for loss","page_number":50,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"feda8052-54df-4127-ae96-b01f7fd600cd","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":50,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"218b611e-f5c1-492b-b58f-2514e098e666","block_type":"box","text":"Regulation of Derivatives.","page_number":50,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"9689a6a4-a629-48df-aaca-9be6aca7b5d5","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":50,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"a33881f0-a227-4a0b-a998-0a38f6f59faa","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":50,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"12bdca88-6afd-458d-9fc4-3488cbbe0c6c","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":50,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"3d71182b-5119-45e6-bc02-67d9c74a959c","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":50,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"d4c78005-b549-4a61-9601-3c1babbd95d7","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":50,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"7e954f32-0750-4818-9b5e-439245241315","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":50,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"64379691-4831-4d17-a539-446fcad08154","block_type":"box","text":"coverage”).","page_number":50,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"ca0dcb98-795f-455f-8027-a78cc12a58e2","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":50,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"0b5f8c18-e9da-4d4e-9ed5-c4bf0b7e3dc8","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":50,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"a06bfe97-c1ad-4399-94a5-e817eb2b8dd3","block_type":"box","text":"of the foregoing, or any similar instrument, under which a Fund is or may be required to make any payment or delivery","page_number":50,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"ee4b288b-4b92-4eaa-87fb-bd0d8d074137","block_type":"box","text":"of cash or other assets during the life of the instrument or at maturity or early termination, whether as margin or","page_number":50,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"4632ffdd-4ab7-4457-a8c4-063f01c53d71","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":50,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"ce1bc165-fa76-41e1-8e9c-b0caacd6fbbb","block_type":"box","text":"financing transactions (","page_number":50,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"dca45a41-e735-4026-b14a-c56f4a044507","block_type":"box","text":"e.g.","page_number":50,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"c1666c55-c7ef-4e0d-b154-74fbab65893e","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":50,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"679482c6-af2b-48ff-af3b-99436aa996f2","block_type":"box","text":"treat all of these transactions as Derivatives Transactions under Rule 18f-4; and (4) when-issued or forward-settling","page_number":50,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"fac3c035-c634-4564-8271-f2ab62ca5570","block_type":"box","text":"securities (","page_number":50,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"99d4efc3-6a13-46c4-a4d5-ff79ce2a845a","block_type":"box","text":"e.g.","page_number":50,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"d3868de7-d24e-43ab-b9b6-e0da6bdab2ac","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":50,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"6526afbb-2bf6-4790-902f-fc337cf4e3b0","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":50,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"9a02dba1-bc1a-486a-ac58-501d3e67cee7","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":50,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"0bf54032-2087-4741-9aa8-725131aae09e","block_type":"box","text":"Commitments”).","page_number":50,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"41c10b93-d0ec-480d-86b5-faec56583953","block_type":"box","text":"Unless a Fund is relying on the Limited Derivatives User Exception (as defined below), the Fund must comply with","page_number":50,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"70f70bc1-6ca3-4190-bada-6013d362a030","block_type":"box","text":"Rule 18f-4 with respect to its Derivatives Transactions. Rule 18f-4, among other things, requires a Fund to adopt and","page_number":50,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"32ee8572-7302-46df-bde4-5805ac52c91d","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":50,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"6aaeee80-fadb-4217-b6e9-cb06d1d4ac9e","block_type":"box","text":"absolute limit on Fund leverage risk calculated based on value-at-risk (“VaR”). The DRMP is administered by a","page_number":50,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"4d433bf6-90c7-4354-aef4-051dd6ea8b56","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":50,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"5a5d718d-4cb1-4ac4-adfd-7639b044828a","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":50,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"e1065d23-21bc-44b3-b3e7-266fbd0df0a4","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":50,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"28262fbb-f094-4145-ac1b-5dccc4931b71","block_type":"box","text":"“derivatives exposure” is limited to 10% of its net assets (as calculated in accordance with Rule 18f-4) and the Fund","page_number":50,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"a4879373-46c9-4035-95ae-9628e450cb36","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":50,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"bb7ed453-c09a-4096-a7e0-38e4df0afc71","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":50,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"7319714e-1466-4aa5-9b2d-e51307c4b13b","block_type":"box","text":"II-13","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e7bcf2bf-b70b-4a57-8b73-27565c75fc92","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e93a8aeb-4abd-45ce-84fe-373e9066e1dd","block_type":"box","text":"Dodd-Frank Regulations.","page_number":51,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"b6364051-020f-4867-b9d2-3137b79a80a8","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":51,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"d61e40f6-c4c1-4a44-ae13-b887c63f30cf","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":51,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"d6ac760b-1154-4353-bf71-f43c721bb762","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":51,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"1709e0d8-7eae-4f2f-9ae8-3ac1226c21d5","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":51,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"ed6bce5c-73ff-4882-8096-02a64ff12fb4","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":51,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"4eb1e5ed-da00-4b2f-b078-bf58aff2cb99","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or with the SEC as","page_number":51,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"06b261f5-a32a-44b9-812d-552e18b3fcaf","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":51,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"4d38c673-402b-463d-85b1-dab7035c4771","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, repor ting, transparency, position limits,","page_number":51,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"256d4514-f11c-49f5-8b05-46ff77d1b177","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":51,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"00764178-2eff-4952-8d88-6e351bc8a3a0","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":51,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"797533ec-3e3c-4ec2-b90d-bfec32fcdd30","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":51,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"e961dca1-8425-4df7-93b5-b9ff13c39b08","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":51,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"b28a1c5b-60c5-4d96-b227-ae7052613278","block_type":"box","text":"similar requirements on cer tain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":51,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"a6020054-52da-48d6-a434-7feaecb43761","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":51,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"1c018a92-679f-4a96-9da2-c6c0e1479a48","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":51,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"b670480d-2337-4712-9928-1614eeda3ed4","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":51,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"b874b180-41c2-4ba6-aaa2-66daa2af07cb","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":51,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"91f8c45d-3a5f-4411-9132-7450a292a93f","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":51,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"eb6a7b36-659f-42cf-bb8a-8ea3fcfce4ff","block_type":"box","text":"the FCM and the customer. These regulatory requirements may make it more difficult and costly for the Funds to","page_number":51,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"d33834f3-3244-499c-81d4-b4d6438cc5c3","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":51,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"788952e5-cbde-4eb7-ad37-801d88342fc6","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":51,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"a46fb69b-92ce-442d-a1b2-11140b62569e","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":51,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"8ee0fe5c-8f98-4473-b530-e80ce9fb9732","block_type":"box","text":"member FCM or as a direct member, a Fund would be required to comply with the rules of the execution facility,","page_number":51,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"2fa7012d-bbd5-4a95-a1cb-590df0b65cef","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":51,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"e3fede6d-618b-4c8e-884a-e13b21200539","block_type":"box","text":"With respect to cleared OTC derivatives and futures contracts and options on futures, a Fund will not face a","page_number":51,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"d85278fb-19bd-4da6-9d9a-5500c49d0203","block_type":"box","text":"clearinghouse directly but rather will do so through a FCM that is registered with the CFTC and/or SEC and that acts","page_number":51,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"0bbdf481-54ee-4efb-8d70-9c3ae6bb3983","block_type":"box","text":"as a clearing member. A Fund may face the indirect risk of the failure of another clearing member customer to meet","page_number":51,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"b39ef121-2b14-4a88-b918-0fa431b498bf","block_type":"box","text":"its obligations to its clearing member. Such scenario could arise due to a default by the clearing member on its","page_number":51,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"43e23bda-4c03-4605-84e4-33e99d85f026","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":51,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"1ac4d57e-99b0-457c-987c-e607624f9ae2","block_type":"box","text":"member.","page_number":51,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"b71427c1-c436-452f-81cd-ff78a9cc0a16","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":51,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"9b6dd1a2-7579-4410-a055-8416f8463df5","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":51,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"d35a6b30-5f96-4a79-b143-a3968abe51db","block_type":"box","text":"was widely permitted for OTC derivatives before Dodd-Frank. While an FCM may require its customer to post initial","page_number":51,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"363da68b-fc1f-4a21-bbf3-122dab519cd2","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":51,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"bedf3bd9-9159-4f41-ad44-72eaa5151c67","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":51,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"3bfd6e03-7c2e-48d7-be97-5810864d9afb","block_type":"box","text":"clearinghouse does not generate earnings for the FCM. The inability of FCMs to earn the same levels of returns on","page_number":51,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"01872630-d8c9-4d78-9ed3-13c19554c9c3","block_type":"box","text":"initial margin for cleared OTC derivatives as they could earn with respect to non-cleared OTC derivatives may cause","page_number":51,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"10eacf14-1ae1-454d-bc3e-4c46e99e084a","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":51,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"2fe114de-4672-4f38-93e2-32a2f3e657af","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":51,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"abd0ae6f-d954-4f3a-80c7-9e6be34e3f9a","block_type":"box","text":"payable to FCMs with respect to cleared OTC derivatives, which may raise the cost to Funds of clearing as compared","page_number":51,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"6d2837b8-436f-41f7-9187-24bdb854c78e","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":51,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"3fe95a38-220b-462a-b261-a51901ca8153","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":51,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"37328846-15d0-4a9f-b86e-c61cc5ca2a59","block_type":"box","text":"exchange variation margin with a Fund and may be required by applicable regulations to collect (and in some cases","page_number":51,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"f6504600-8985-4353-b541-45eaa64ea4da","block_type":"box","text":"exchange) initial margin with a Fund. Both initial and variation margin may be comprised of cash and/or securities,","page_number":51,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"7094cfd6-9f89-4e67-9d84-821277f3ea68","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":51,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"353a4dc3-df0a-47a3-a0ed-4a726ba6339a","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":51,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"8dba9d05-2913-47b4-908c-e6cdde9acea1","block_type":"box","text":"The CFTC, cer tain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":51,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"ebcd5283-bb43-49f3-ad28-31455d69760d","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":51,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"56102bec-efb3-4221-905f-8e090aea86eb","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":51,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"2ee70893-9155-45a7-9751-fdb09d8d82f4","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":51,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"2c435dd5-7be2-474e-be5d-647f41b501f5","block_type":"box","text":"commodities. All positions owned or controlled by the same person or entity, even if in different accounts, must be","page_number":51,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"d4634423-3b9c-4ff6-97ce-bb028d4cf861","block_type":"box","text":"aggregated for purposes of complying with the speculative limits. Thus, even if a Fund does not intend to exceed","page_number":51,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"9ecee7b6-4054-4e7e-af54-cd0b6c4074fe","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":51,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"bd65e30b-2e55-47cf-8145-d52ad7219efa","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":51,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"76979b00-2de1-4687-bfcf-e7555599fd7b","block_type":"box","text":"held by a Fund liquidated in order to avoid exceeding such limits. The modification of investment decisions or the","page_number":51,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"257c4062-8253-4202-8220-025ce82ff5c9","block_type":"box","text":"II-14","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"614ef4fe-687e-4ab7-b2d1-489ee5c3cd36","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cd0f9ace-ab72-4969-aee8-df143c8bbc32","block_type":"box","text":"elimination of open positions, if it occurs, may adversely affect the profitability of a Fund. A violation of position limits","page_number":52,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"14a2edae-369e-4924-96e7-46ec34e49cd2","block_type":"box","text":"could also lead to regulatory action materially adverse to a Fund’s investment strategy. A Fund may also be affected","page_number":52,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"fcabd703-384d-4d75-9bb0-3347023e7624","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":52,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"9363f136-c35a-4a17-937f-040f1993450b","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":52,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"8f2d3426-a4e9-4582-8425-0ce884cc70e4","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":52,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"2ae9d53c-6c6c-44fb-b254-be4b527253b1","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":52,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"c16d633d-d70b-406e-9d81-0fde3438f1f2","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":52,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"3c3afe53-aad3-477a-b1af-c42f1f953ead","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":52,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"f740cd4b-e0f8-4f48-94d3-3a0deeb4df69","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":52,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"ba07e45e-f481-494d-9002-ca9f37e89bd2","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":52,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"b30d362c-e94c-42d6-a087-d166b04e7ef2","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":52,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"c5c9f96f-4237-453b-b047-cb7cff6e3b4b","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":52,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"4b3733e2-4c43-4df8-9710-f144638a6090","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":52,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"41c7df11-4f34-4a6f-9896-78d17255874d","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":52,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"24b3fe77-a578-4447-876c-cb92b6bb9579","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":52,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"c133060b-d393-4f01-9b56-c031206ee338","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":52,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"3428e4d7-ef85-4d5a-a67f-d24ff9fa178a","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":52,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"284f6e8b-06c7-4136-ac09-3add4c356687","block_type":"box","text":"Member States to apply position limits to the size of a net position a person can hold at any time in commodity","page_number":52,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"a451e4d1-05c4-4290-a71e-7c0f723ab287","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":52,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"9e56fe49-11b7-4d85-977a-4d6d772a7292","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":52,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"a8507552-65e2-40f6-a9f5-ca4d0a8f9a83","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":52,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"93d288bf-ca8c-4e03-90c9-44eb502daec2","block_type":"box","text":"regulated entities and cer tain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":52,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"5c2bf04f-71bf-4853-b871-85aa788e65d1","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":52,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"9411c41d-bdc5-4d3f-8438-e968f7b43779","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":52,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"22930616-c182-4388-8a16-4bac0fa666e5","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":52,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"008ab575-7991-4b5c-baa8-35c5668bcd1c","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":52,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"bb587a95-27cf-4706-89af-4b2947fc7ddf","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":52,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"c536b997-79fa-4f0b-9710-33bd3f22e981","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":52,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"45603fa6-dc83-4efe-874d-ad6c4e59963f","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":52,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"0fd6dc99-6fa1-4a1c-88ec-9ebcac1ab48e","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":52,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"8b378283-f0a2-4e27-9022-6a8438e69def","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":52,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"e4881c84-a6ad-40d3-a2c5-23b36418248a","block_type":"box","text":"collateral received under such contracts.","page_number":52,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"72f420f1-8f99-48d6-807f-bbc6627e8f9a","block_type":"box","text":"Risk Factors in Derivatives.","page_number":52,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"51592cc0-edf9-4557-9fa4-73625b4ba847","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":52,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"8aab83c4-82be-4e9a-8200-91de3984bde3","block_type":"box","text":"Correlation Risk","page_number":52,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"2664c18f-98b0-46cf-b3ca-22bb38c53315","block_type":"box","text":"— the risk that changes in the value of a derivative will not match the changes in the value of","page_number":52,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"71c3ff98-7c91-4b23-8ee4-24a010fb7fad","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":52,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"b7e21126-3586-4680-b33f-c61296b6ec8f","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":52,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"745dd610-3481-4f1b-913e-97a1e601e8a8","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":52,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"45b3cd25-b660-4474-982e-4796dc6d5cb9","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":52,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"e7f61739-067d-453f-8c2e-c4d79aff8e39","block_type":"box","text":"Counterpar ty Risk","page_number":52,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"078ea694-f882-48c1-bbdd-860c7702b6ca","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":52,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"4cdd5a94-09b2-44b9-a2aa-14df7136daac","block_type":"box","text":"payments or otherwise honor its obligations to a Fund and the related risks of having concentrated exposure to such","page_number":52,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"bfcf3e5a-c3e9-45de-882f-afdf12bb833f","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":52,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"2a3c11ad-e1a8-465d-8d01-e5d50671b12b","block_type":"box","text":"corporation and often do not require payment of margin, and to the extent that the Fund has unrealized gains in such","page_number":52,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"7e3cb105-a1e1-48e9-b607-2253ccba0948","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":52,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"9c40a498-b429-4b47-9ce0-724dd6cb10ab","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":52,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"cf6f3abd-554c-4263-b999-42bac184a654","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":52,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"352ecfbb-0645-4a12-bfa2-e1bba054c206","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":52,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"343f9fce-a692-4376-a8e5-b94f0d765fc7","block_type":"box","text":"transaction that is centrally cleared (whether mandatorily or voluntarily), the Fund is subject to the credit risk of the","page_number":52,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"e874281e-610d-415d-93c6-fe3f5744b708","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":52,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"6a26696a-66ea-443f-947c-8e8f04ff0402","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":52,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"cb919dfd-2edd-4268-baee-cdd15681e7c2","block_type":"box","text":"clearing members. It is not clear how an insolvency proceeding of a clearing house would be conducted and what","page_number":52,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"d0ce12e3-6e8d-418e-a12a-79c5c9faec1d","block_type":"box","text":"impact an insolvency of a clearing house would have on the financial system. Also, a Fund will not be fully protected","page_number":52,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"66b6f4e0-25eb-405f-be18-2df5440a2698","block_type":"box","text":"in the event of the bankruptcy of a Fund’s clearing member because the Fund would be limited to recovering only a","page_number":52,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"31df52fb-7c0f-4701-9f92-18717510fe64","block_type":"box","text":"pro rata share of the funds held by the clearing member on behalf of customers by account class for cleared","page_number":52,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"57f9cbed-7db3-45fb-b85b-a06295eec9f9","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":52,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"ee4e2710-e953-4f2d-a61e-af2ff09a111a","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":52,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"ae79028f-76ec-4fa4-b21b-34f8e72ac315","block_type":"box","text":"II-15","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"69892ad0-c4e4-4bd1-a9c7-8879068c6313","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"deb0f6f6-9911-477d-89f0-1dc29ce43885","block_type":"box","text":"applicable regulations, or in the event of fraud or misappropriation of customer assets by a clearing member, a Fund","page_number":53,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"68fc23f8-2ee9-4413-9dec-2b7b1d47bc8c","block_type":"box","text":"could have only an unsecured creditor claim in an insolvency of the clearing member with respect to the assets held","page_number":53,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"0774fb23-b2b2-4fff-a33a-3e39183dd388","block_type":"box","text":"by the clearing member.","page_number":53,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"1c8c4977-d60c-4b0c-a5d3-b3b22e84ad1a","block_type":"box","text":"Credit Risk","page_number":53,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"9efe2013-1b58-4562-81bd-91994456b987","block_type":"box","text":"— the risk that the reference entity in a credit default swap or similar derivative will not be able to","page_number":53,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"1233eaf3-3ee8-43ca-9b97-f73b57bbc9d1","block_type":"box","text":"honor its financial obligations.","page_number":53,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"bfe558ba-093e-45e2-a047-e7bcdb31646a","block_type":"box","text":"Currency Risk","page_number":53,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"cfa6bc40-e4f3-4e47-a2e6-a07f0309aff4","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":53,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"161cdb9e-91e6-4e76-ba96-5ea18ff26bc6","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":53,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"5853c382-2120-4c83-817c-bf86b0bee0bd","block_type":"box","text":"Illiquidity Risk","page_number":53,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"7f1dc4f7-7124-4c80-857d-e9cf11a14cdd","block_type":"box","text":"— the risk that cer tain securities or instruments may be difficult or impossible to sell at the time","page_number":53,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"eeed51cb-46f7-4578-9d36-f34057da3649","block_type":"box","text":"or at the price desired by a Fund in connection with payments of margin, collateral, or settlement payments. There","page_number":53,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"4c153a3b-cc36-44fb-9ed6-d3b1563d2071","block_type":"box","text":"can be no assurance that a Fund will be able to unwind or offset a derivative at its desired price, in a secondary","page_number":53,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"5ed520ea-df67-48d9-a0a9-3f8c7b20ddb7","block_type":"box","text":"market or otherwise. It may, therefore, not be possible for the Fund to unwind its position in a derivative without","page_number":53,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"24bae366-91e1-4f70-a224-ff806e04bc3b","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":53,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"5f10e46e-a163-4f92-8c51-f02384544aa3","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":53,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"654b5c17-0240-4bc6-b018-961e599103ff","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":53,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"5c38bf3b-12ed-4a4d-a58f-7883d962d3b2","block_type":"box","text":"purchased contains a formula price at which the instrument may be terminated or sold, or (ii) for which the Manager","page_number":53,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"d2bc6007-275f-4780-836b-4c91f938c325","block_type":"box","text":"anticipates the Fund can receive on each business day at least two independent bids or offers, unless a quotation","page_number":53,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"6ba27521-af90-40fe-99e6-f027a9184e0b","block_type":"box","text":"from only one dealer is available, in which case that dealer’s quotation may be used. The illiquidity of the derivatives","page_number":53,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"8fdad656-3f51-4aaa-8c4f-aa554735a2b0","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":53,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"4ad7308a-5620-4737-aa08-1fb778df429d","block_type":"box","text":"the par ticipation of speculators, government regulation and intervention, and technical and operational or system","page_number":53,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"0191dfe7-b328-4172-9310-912340fa90c6","block_type":"box","text":"failures. In addition, the liquidity of a market in an exchange-traded derivative contract may be adversely affected by","page_number":53,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"7924d8c1-b19a-40b6-a667-6c1f02d3fcfa","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":53,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"84e06674-13aa-4c79-9798-3e8e8497102d","block_type":"box","text":"traded contract price during a single trading day. Once the daily limit has been reached in the contract, no trades may","page_number":53,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"742985f1-a924-4c74-a3c7-3516a4c79879","block_type":"box","text":"be entered into at a price beyond the limit, thus preventing the liquidation of open positions. Prices have in the past","page_number":53,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"4bf7ba32-ccb6-40f7-ab00-41ee4d2ae7b6","block_type":"box","text":"moved to the daily limit on a number of consecutive trading days with little to no trading. If it is not possible to close","page_number":53,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"e14c7e1e-31a7-430d-bece-39b8d540ae02","block_type":"box","text":"an open derivative position entered into by the Fund, the Fund would continue to be required to make daily cash","page_number":53,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"87f8de00-b7fc-48f9-af15-57349294d7d4","block_type":"box","text":"payments of variation margin in the event of adverse price movements. In such a situation, if the Fund has","page_number":53,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"745b331f-acef-4274-a29c-2e26853a4890","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":53,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"7c4c5e28-4a2c-4ef8-bb0b-946640c41452","block_type":"box","text":"may be disadvantageous to do so.","page_number":53,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"aa926956-45e6-40ff-b18e-e05c2ec55ef3","block_type":"box","text":"Index Risk","page_number":53,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"8b5f5cf3-779f-4083-a03a-44a91bcc5262","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":53,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"16a76f9a-a6c8-4876-ad59-44b28513fc72","block_type":"box","text":"with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a","page_number":53,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"ce0aa029-3655-4c8b-888a-14aff286e66f","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":53,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"130d0389-3021-478d-916c-5e0d27366410","block_type":"box","text":"Legal Risk","page_number":53,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"b5d7ac25-9abf-4358-b04d-c7259184525f","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":53,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"8e1be769-c104-499e-b1a5-c8f1f7fbc08a","block_type":"box","text":"or enforceability of a contract.","page_number":53,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"1b1fd872-4259-432c-9d65-65262584eeb4","block_type":"box","text":"Leverage Risk","page_number":53,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"61d82d01-32ce-41d9-bfba-ffe725ed6b59","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":53,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"f664e24e-6647-4aca-bca1-e4388808c697","block_type":"box","text":"Relatively small market movements may result in large changes in the value of a derivatives position and can result","page_number":53,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"4e039ab3-ea65-43cc-98e7-fc646152aeb3","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":53,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"5aaad05d-a7e0-4775-ac0a-fdc38c8820fb","block_type":"box","text":"Market Risk","page_number":53,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"fe3e8666-bcb8-4adc-bc75-5751f910e27a","block_type":"box","text":"— the risk that changes in the value of one or more markets or changes with respect to the value of","page_number":53,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"94dfd71f-7a8a-4d4e-a22b-f4c78bc8cd29","block_type":"box","text":"the underlying asset will adversely affect the value of a derivative. In the event of an adverse movement, a Fund may","page_number":53,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"16b6fb8e-39e9-47b3-a18a-2768f3353023","block_type":"box","text":"be required to pay substantial additional margin to maintain its position or the Fund’s returns may be adversely","page_number":53,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"eecfc625-8144-4d36-9e34-c1811ca163d5","block_type":"box","text":"affected.","page_number":53,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"68062e64-0ef3-4920-ac71-90f057cc94f8","block_type":"box","text":"Operational Risk","page_number":53,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"41ba7336-0685-441d-868f-876e9f7824ee","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":53,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"1b1b7dd1-1cde-49ba-b319-74938466f613","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":53,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"2e7ca8c0-8d5c-43c2-9820-4dc4e0f9d109","block_type":"box","text":"Valuation Risk","page_number":53,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"e5feed1e-168b-4387-964d-7a19c2a782a5","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":53,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"fd70eea8-0298-4f51-967d-2f932b1be460","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":53,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"4fa12568-d4f7-48f9-ac7b-84bc9759aa18","block_type":"box","text":"complex instruments or quote prices for them.","page_number":53,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"f20a489d-0c8b-44e8-aefc-421b56fda9bb","block_type":"box","text":"Volatility Risk","page_number":53,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"58bdc87c-b3af-499e-90d8-61317e3be93e","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period.","page_number":53,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"b2c2a58a-02a9-4f24-a233-eafc71463c9c","block_type":"box","text":"Types of Derivatives Transactions.","page_number":53,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"b82c1ad8-6ff8-4680-b6c6-0f7bd8cd1641","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":53,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"07a068c2-cd6b-4dff-87ed-1ba1708502e3","block_type":"box","text":"including the following:","page_number":53,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"0f4295e4-9202-4ce4-a824-ea9e64982247","block_type":"box","text":"Futures.","page_number":53,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"55b92261-dd8e-483f-9343-547869f72141","block_type":"box","text":"II-16","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"930c7fcd-5715-412f-9a82-940f5ffcd9de","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"db872f48-c26b-4bc3-9e06-03b4de52ff90","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":54,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"151baa38-a414-443a-a96b-6aab75a656cb","block_type":"box","text":"exchange-traded contracts that require a purchaser to take delivery, and a seller to make delivery, of a specified","page_number":54,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"17627fa3-d7ef-4453-9176-e5b449355430","block_type":"box","text":"amount of an asset at a specified future date and price. Upon purchasing or selling a futures contract, a Fund is","page_number":54,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"bc8ad426-acad-4da0-a253-c18d46b3d4f6","block_type":"box","text":"required to deposit initial margin equal to a percentage of the contract value. Futures contracts are marked to market","page_number":54,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"37685eeb-3bd9-42c0-9623-2c11daa41523","block_type":"box","text":"daily for the duration of the contract, and the Fund will either post additional margin or be entitled to a payment, as","page_number":54,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"fe03d1ec-ddfe-4c00-83d4-f50ae3882be2","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":54,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"a1f01cc3-74f6-45a5-ab3e-3b5e7e5f59ac","block_type":"box","text":"A Fund may sell a futures contract prior to the completion of its term to limit its risk of loss from a decline in the","page_number":54,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"da046972-03b1-4b12-87f2-36675a915315","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":54,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"4100a7f9-4475-4b77-8f70-e46fb4e4d85c","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":54,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"816bc997-74e7-474c-8864-733cf61ab41a","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":54,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"60df5991-5a7f-461c-96c6-176fd1b698b0","block_type":"box","text":"of the futures contract.","page_number":54,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"26e15c29-7852-4be1-97ed-8ad548656aa4","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":54,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"0e020ad4-79e5-4aff-8e9f-cda5d909935d","block_type":"box","text":"commodities directly. In the event that such securities or commodities decline in value or a Fund determines not to","page_number":54,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"bd9827d5-a554-42c8-a661-34f27f63a84e","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":54,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"0215f089-6358-4c8a-bb0e-f94f97efe075","block_type":"box","text":"relating to the futures position.","page_number":54,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"4414c570-a67b-4b4e-978b-d8ffebff88eb","block_type":"box","text":"Futures contracts are also subject to position limits. In order to comply with position limits, a Fund may be","page_number":54,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"a4d43713-2b9f-4f6c-af60-7b8f7164534d","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":54,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"2698db17-a215-4073-ad49-5cf49dd907fe","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":54,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"809cc0c7-c2a2-4bc3-94d9-70dc3dd957cd","block_type":"box","text":"Regulations” above.","page_number":54,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"3751816f-080c-47d0-9679-29c625ece9f7","block_type":"box","text":"A Fund is also permitted to purchase or sell call and put options on futures contracts, including financial futures","page_number":54,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"ed29bfe8-78eb-4cea-85f7-b2d667ef9013","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":54,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"317584c6-1488-499e-bd60-83e59ecc4a5f","block_type":"box","text":"(","page_number":54,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"40dd2773-628d-41d1-a7d0-496f26fd347d","block_type":"box","text":"i.e.","page_number":54,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"77555b64-36c4-4923-9b71-6ca1b606e897","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":54,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"f3213733-f933-461c-9069-3819d1067991","block_type":"box","text":"may purchase put options or write call options on futures contracts and stock indices in lieu of selling the underlying","page_number":54,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"3c2f70c3-cef2-4e6b-81b4-36471c653bac","block_type":"box","text":"futures contract in anticipation of a decrease in the market value of its securities. Similarly, a Fund can purchase call","page_number":54,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"b1604531-e488-4756-8e4f-ec6ea35e3ce0","block_type":"box","text":"options, or write put options on futures contracts and stock indices, as a substitute for the purchase of such futures","page_number":54,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"76715bce-2e1c-4aef-8fa5-2d80f4af551a","block_type":"box","text":"contracts to hedge against the increased cost resulting from an increase in the market value of securities which the","page_number":54,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"1b397bf3-679f-4fe9-b6e3-9dc46dd52dbd","block_type":"box","text":"Fund intends to purchase.","page_number":54,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"523bdcaf-808f-47d4-84f0-8935ef5759c6","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":54,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"1b8ba140-726d-42df-b9a5-3903c4355c58","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":54,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"cc7a21ab-a4fa-4e6f-92e0-ffd30f6ef7a7","block_type":"box","text":"determined by reference to the value of a security, an index of securities or a commodity at a future point in time. The","page_number":54,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"1c133f67-a11c-4986-9b35-cbd12e33f600","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":54,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"f0ecf787-bac8-47e3-9a80-7500c960d62c","block_type":"box","text":"illiquidity.","page_number":54,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"3fd48f89-1c2b-4f7b-abbf-6127371ffa72","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":54,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"b5756900-f0fe-46d7-bcf6-0d834049f641","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":54,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"08c6f9f9-d75b-4683-8a17-56c772dbfa01","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":54,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"2f732e6b-755e-49c2-ae53-d5ba91eac5a4","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":54,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"cf47057f-1118-47d9-b6c9-d3b5b710aa23","block_type":"box","text":"set by a regulator, such as a government entity, on the total amount of specific greenhouse gases, such as CO2, that","page_number":54,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"bf42cf0e-583e-464c-b61c-b6eeefba6699","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":54,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"37ac9b0c-e1cc-463d-9866-a07410d738be","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":54,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"ca263971-a261-473a-b53c-3d00c4f8a957","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":54,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"55a1a8ef-37e7-4f03-ac32-6016767debf2","block_type":"box","text":"The price for carbon futures contracts is based on a number of factors, including the supply of and the demand","page_number":54,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"dd65ead3-7f09-4357-a726-33ac3f2e2bca","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":54,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"0375c816-87ed-4db2-b6b7-49a673ef4ae7","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":54,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"576c6faa-02b0-4000-b875-625fc7953985","block_type":"box","text":"for carbon futures contracts is still developing and may be subject to periods of illiquidity. During such times it may be","page_number":54,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"ef32b723-50f1-40aa-ab08-b6c87c7fb861","block_type":"box","text":"difficult or impossible to buy or sell a position at the desired price. Market disruptions or volatility can also make it","page_number":54,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"e1920455-4707-4587-ba60-e0073d0fad4b","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":54,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"a3cc8340-8027-4304-9363-b718e486c9f5","block_type":"box","text":"Swap Agreements.","page_number":54,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"b384cb35-0338-45e4-b0f8-c19d8308405f","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":54,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"00021e6d-9e9f-48ca-980f-e1c630ffb8c0","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":54,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"037859b0-67ab-4562-ac27-bafa1e19f1dc","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":54,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"636dd307-b4bd-45f5-b6bb-34c958769222","block_type":"box","text":"earned or realized from one or more underlying assets or rates of return, which may be adjusted for an interest","page_number":54,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"9e035a05-44b6-4889-8001-36136a7b435b","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":54,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"0f5f3896-9398-433d-9eb9-c235506f57e6","block_type":"box","text":"a “notional amount,”","page_number":54,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"0bb89280-e36d-414d-8fc3-e69781136824","block_type":"box","text":"e.g.","page_number":54,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"2ef968e8-8274-44bf-a820-f859cd709167","block_type":"box","text":", the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":54,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"56eab198-d506-4923-aa79-f6f1d5ab8e85","block_type":"box","text":"II-17","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fe56ea0a-3b18-4ddb-82cc-e71654fa8927","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"af035778-800e-494c-85d4-c284ebd9a677","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":55,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"22111539-7db2-484c-b0f1-544d6c2e3199","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":55,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"22efbc2b-8c3f-45c2-a298-37d093fcf545","block_type":"box","text":"agreement have agreed to exchange. A Fund’s obligations (or rights) under a swap agreement will generally be equal","page_number":55,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"84c6c9b8-1489-4ff0-9ae4-f22cae7b8ff3","block_type":"box","text":"only to the net amount to be paid or received under the agreement based on the relative values of the positions held","page_number":55,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"3d836c5c-e0a4-4e2e-a0f3-8093ea587bbf","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":55,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"26dc2fd5-7e76-49b4-b26f-6fc9cf1cd373","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":55,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"03f72409-93e1-4f33-af8e-d96abe094327","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":55,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"fb21d1a2-b6cc-43da-be22-761a785e9724","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":55,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"0fb586e9-8f8c-4976-a25b-3ccdbb417bda","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":55,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"11b677ed-8878-4e17-a294-f2493c2a4781","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":55,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"5fd8c40f-e9b1-46be-bd1d-50f5301af99b","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":55,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"201482c2-6d0b-4f40-9f61-6dd0d9b7050b","block_type":"box","text":"“seller” an up-front payment, or a periodic stream of payments, over the term of the contract, provided generally that","page_number":55,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"3c7cb529-8168-43fd-8c40-627212e0a320","block_type":"box","text":"no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the","page_number":55,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"2712917e-9b53-4931-b127-ceeef5db7965","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":55,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"98dee455-4c36-4642-8a30-0282a3d0e6c4","block_type":"box","text":"the reference entity. A Fund may be either the buyer or seller in the transaction. The Funds may enter into credit","page_number":55,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"be38309a-9a82-4e95-a08a-35467fd72eaf","block_type":"box","text":"default swaps that reference the obligations of a single entity (“single-name CDS”) or the obligations of entities that","page_number":55,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"152bef01-db71-4366-88fa-41f651fee091","block_type":"box","text":"make up an index (“index CDS”). References to “credit default swaps” shall collectively refer to single-name CDS and","page_number":55,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"ea1340e8-1fb2-4ace-8405-b34ddb1be16f","block_type":"box","text":"index CDS.","page_number":55,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"7414a6df-107c-4c82-bc66-645563713790","block_type":"box","text":"Credit default swaps have as reference obligations one or more securities or loans that are not currently held by","page_number":55,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"8891785e-aa4f-430a-87d5-31cd872ccc7f","block_type":"box","text":"a Fund. In circumstances in which a Fund does not own the securities or loans that are deliverable under a credit","page_number":55,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"e18d43d4-3e8e-4ee9-8fae-075df1d43c5f","block_type":"box","text":"default swap, the Fund is exposed to the risk that deliverable securities will not be available in the market, or will be","page_number":55,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"581b8539-4965-4931-bc26-41f64d7f1562","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":55,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"ad1765bf-d9fa-4456-8dc1-5696d1bdbdd2","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":55,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"b7392134-a6d9-4a35-a642-7c049eee0b3b","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":55,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"a1642699-d3dc-4846-b0a1-28465339c89b","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":55,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"4de518ec-2103-4c12-a250-3405970aef29","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":55,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"4f70979d-6fea-4822-a4dd-e5fe581ad168","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":55,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"7c75d07d-998c-4431-bcc9-0cb90dedeef9","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":55,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"86b99a58-b679-45b8-b02f-edfb3625933f","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":55,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"dbee5b78-6c2f-4254-bbd1-22b89e74dfc4","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":55,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"8557bb21-0cda-45aa-86fd-98284f56c7be","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":55,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"e7df79a4-d331-4823-8d71-497b2f60aa4b","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":55,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"bfbd1e42-60ca-4533-bc77-7c18c9f9835c","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":55,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"49e03a5a-337b-4e73-875e-8ccb21b35d78","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":55,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"f921e5cb-99df-4580-a5ec-cfce8e5ee343","block_type":"box","text":"respect to a “credit event” or otherwise does not establish a cash settlement auction, a Fund may not be able to","page_number":55,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"46bfafa8-5b88-4749-baa0-c19b2eaf0c77","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":55,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"aae96ab6-21de-4696-92d1-46fe849a4fe4","block_type":"box","text":"into cer tain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":55,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"eff4dea5-8417-4b70-bd81-e917a0ec9fa0","block_type":"box","text":"If a Fund is a buyer, it will lose the payments made under the terms of the credit default swap and recover","page_number":55,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"fffa2999-24fe-48b8-a6af-9d7db42966a3","block_type":"box","text":"nothing should no credit event occur. If a Fund is a seller and a credit event occurs, the value of any deliverable","page_number":55,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"f93432ca-ff12-4a6d-95e6-54833e0d5da1","block_type":"box","text":"obligation received by the Fund or the amount of cash settlement received by the Fund pursuant to the relevant cash","page_number":55,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"8534dd26-531c-400c-9c60-dfa859d25b84","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":55,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"7a3a07cc-2ae0-42ea-a63e-7a8f27221df0","block_type":"box","text":"it pays to the buyer, resulting in a loss of value to the Fund. A Fund that sells credit default swaps incurs leveraged","page_number":55,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"c02e16f5-0e5b-4ba0-8cd2-e377ff8edd0f","block_type":"box","text":"exposure to the credit of one or more reference entities and is subject to many of the same risks it would incur if it","page_number":55,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"1bca2257-b684-4c6b-8ac6-2fbf4e4a2970","block_type":"box","text":"were holding debt securities issued by the relevant reference entity. However, a Fund will not have any legal recourse","page_number":55,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"6d025c59-c4a2-4d2d-a188-f099838812ac","block_type":"box","text":"against any reference entity and will not benefit from any collateral securing the reference entity’s debt obligations. In","page_number":55,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"0a2e2d3c-6b95-4b27-bb96-ed2b54764cc6","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":55,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"ab370d24-2483-4418-af81-d7682b967ef0","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":55,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"df0ba0ad-a333-407e-9793-4881be034122","block_type":"box","text":"which of the reference entity’s debt obligations to deliver to the Fund following a credit event and will likely choose","page_number":55,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"3d258352-c1c8-4c48-9545-54f53ba6a372","block_type":"box","text":"the obligations with the lowest market value in order to maximize the payment obligations of the Fund. In addition,","page_number":55,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"d951477e-fc6e-41cf-aca4-3033fac61302","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":55,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"051bc447-b31c-4238-a6c7-a6ce4f017c27","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":55,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"b20617f3-68b4-4eb1-b5df-1ab042554d39","block_type":"box","text":"conditions.","page_number":55,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"b893bc3a-8d49-490f-8094-e0bbe709619b","block_type":"box","text":"Dodd-Frank requires that cer tain index CDS be executed in regulated markets and submitted for clearing to","page_number":55,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"777a00c3-9322-472b-9d5e-eba84d3f7541","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":55,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"aa311a84-11ff-468e-9642-65f678940540","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":55,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"3047e05d-60f5-484e-b245-a0b2802c8491","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":55,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"bafd8f10-6243-4427-b6eb-41d31ccb1e49","block_type":"box","text":"clear some, but not all, of the other credit default swaps not subject to mandatory clearing. The Funds face","page_number":55,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"b76d0a9c-68df-458e-b18d-be9df920b966","block_type":"box","text":"II-18","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"281caf2c-37ac-4359-a4f5-ca1372c6e926","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1e128cd4-21a3-43ab-a734-487700c22456","block_type":"box","text":"counterpar ty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":56,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"8ddcf0ae-e8a9-403b-8ff5-e3ef5f3bdc28","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":56,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"9ab9ef00-fec6-4d18-a7f1-945d78ac9ede","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":56,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"3954ca8f-b341-444c-814e-98e654c26227","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":56,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"c38dbcdc-c751-4777-8214-7ce321f358f1","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":56,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"f914eff7-1bdb-4631-91d6-c95d8d276506","block_type":"box","text":"In cer tain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":56,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"6994c922-cc43-4cd6-acd6-8d808ab9ff02","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":56,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"1724fff4-8cb1-4066-b56c-a151d1d84428","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":56,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"d07e302b-e7a5-492e-9bd4-ebd27edf52a5","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":56,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"5ae65819-6f7f-4a01-b1c6-51dc3e009b5a","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":56,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"de85cf26-46ed-486c-9ed5-33a0f14d09b9","block_type":"box","text":"underlying security or loan to or by the Fund rather than by way of cash settlement, and there may be a wider range of","page_number":56,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"638bb937-3807-43e9-9473-d8db0e2dc56f","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":56,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"0eae4b03-9b1c-4ece-b031-f069e274a2c9","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":56,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"0c38c391-46e6-4bbb-8329-3eecfdc92656","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":56,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"e537a03b-78c8-40ca-b0f4-91a20707a080","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":56,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"5517dc33-be11-4074-93ba-4d8596d24e77","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":56,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"79580cc8-dac7-4e40-a35b-f281ab0cd2fd","block_type":"box","text":"Cer tain Funds may enter into OTC derivatives in the form of interest rate","page_number":56,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"4066168c-64ab-4972-b687-76c74be0f823","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":56,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"3834c5c5-2bdf-4409-a221-eafed1f7fec9","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":56,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"2cbd5b82-49a9-4b8c-b1e5-fb1225c1aa40","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":56,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"cbcc9d29-fa56-405b-9ed3-836d72b21564","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":56,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"daa4d809-7cb8-4f68-bd6a-c2015e98ff06","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":56,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"0f032451-c000-4975-baba-13b15fd11fa1","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":56,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"9f21d79e-ffc6-44c5-a403-82bfa7a48d1d","block_type":"box","text":"interest rate swaps are permitted, although not required, to be cleared. Most of the interest rate swaps entered into","page_number":56,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"d645cb9d-f967-4b26-8a15-a55a4e626af6","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":56,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"780a981d-48f9-40a2-b0c6-a13a6fa26b08","block_type":"box","text":"cleared interest rate swaps.","page_number":56,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"7c921d98-4bba-4cb2-b213-d457a1b527dd","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":56,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"5205b74e-8187-4557-ba0d-e4c8a47f0122","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":56,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"4d1840f6-e304-457f-bef6-6f7ffa3cc8e1","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":56,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"94a5b83c-b174-400d-b14c-1bb494a11f68","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":56,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"aebb783a-48de-4fbd-ab3a-02bde8226058","block_type":"box","text":"Fund will have contractual remedies with respect to the transaction but there can be no guarantee that the Fund will","page_number":56,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"2c123ca9-7d03-4ed1-b248-ac99455ac6b1","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":56,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"ccc3dc15-82c9-4ca3-b1a4-18624e1a4975","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":56,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"72f863cf-7368-48c9-82e2-574db52c5a7e","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":56,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"ee705841-9abd-41e2-8ed9-cf5b73bb3eb5","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":56,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"5c559bcf-e98b-4bfe-82bd-99898db2682e","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":56,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"04dac7c3-9612-4a94-a895-568acdee4ec4","block_type":"box","text":"or variable interest rate, index or asset.","page_number":56,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"7a262895-d2df-43a2-a27e-444d65a07316","block_type":"box","text":"The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a","page_number":56,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"71ea1e36-2d4c-4eb7-9491-802d4c327942","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":56,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"fb6c3613-d623-4aa9-b0bc-178a20859001","block_type":"box","text":"such interest rate floor.","page_number":56,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"3c7071e2-505b-41ec-9865-c6d7c356c5cd","block_type":"box","text":"The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index rises above a","page_number":56,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"e240a579-fd7e-4f9b-bc6a-919b9438193a","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":56,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"9f2bd6c8-1f57-49df-853c-ff3b800dc9d0","block_type":"box","text":"such interest rate cap.","page_number":56,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"86f31bfb-2f40-4d53-a1d8-51160df1c61e","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":56,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"b549d64f-e104-4aee-bfaf-10209ece32ab","block_type":"box","text":"commitments to pay or receive interest,","page_number":56,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"88558809-61a9-417b-8dfc-4063170bb710","block_type":"box","text":"e.g.","page_number":56,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"fe1dfc7c-44d7-48d8-9069-070de1b4cda5","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":56,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"cf25dd1d-6c0c-447f-a6da-8e0f17566ef9","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":56,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"b85b453b-b621-4c28-bcb7-a562964592cd","block_type":"box","text":"swap the right to receive interest at this fixed rate for the right to receive interest at a rate that is reset every week.","page_number":56,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"6215f913-e376-4c7e-89cf-e412bfa066bf","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":56,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"b612fe36-79fa-4a5d-85b5-7fdf40a4c303","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":56,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"9b53172f-21a6-4a36-96cd-73c669d38d79","block_type":"box","text":"security with an interest rate that is reset every week and it would like to lock in what it believes to be a high interest","page_number":56,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"a4e77355-790c-46af-922f-2bba9d4fdfd0","block_type":"box","text":"rate for one year, it may swap the right to receive interest at this variable weekly rate for the right to receive interest","page_number":56,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"898a23f5-1067-4b4c-8898-58dbc9bd9908","block_type":"box","text":"at a rate that is fixed for one year. Such a swap would protect the Fund from a reduction in yield due to falling interest","page_number":56,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"50514162-5f5d-45bc-b296-0d66cd4c90f3","block_type":"box","text":"rates and may permit the Fund to enhance its income through the positive differential between one week and one","page_number":56,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"2fc31160-ce48-426c-a457-f700ef698249","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":56,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"1807d93a-130c-443b-a970-d379fe829dba","block_type":"box","text":"II-19","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"740ef7f1-7d39-4146-a66b-ad7440868827","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"680de06b-1f1c-4dd9-832f-15c7c1e1e7ff","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":57,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"ed93b891-cb8b-4f17-b087-5615a285e83e","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":57,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"e7b3d141-c779-424c-8a77-d4384d902362","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":57,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"8f885d62-b7bb-45bd-bb2e-2df25d5cfadf","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":57,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"f69bac81-fe2a-4646-b959-196a7d9a0e06","block_type":"box","text":"Total Return Swaps.","page_number":57,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"a007eef5-4765-4aaf-a885-8beca9ee85d5","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":57,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"0c4ee833-f8ca-4eb4-ae09-68f481e68501","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":57,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"b878c5bc-b5f7-49fa-a459-8007c808e218","block_type":"box","text":"a fixed or variable interest rate or the total return from different underlying assets. The return of the assets","page_number":57,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"67e03e52-7e38-43bd-a761-cb61fde6dd5c","block_type":"box","text":"underlying the contract includes both the income generated by the asset and the change in market value of the","page_number":57,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"afb5992e-b122-4937-b434-81ff15a8af4f","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":57,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"e97bc4a4-0148-4d76-8d57-b0b80a0eef71","block_type":"box","text":"Total return swaps on a specified security, basket of securities or securities indices may sometimes be referred to as","page_number":57,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"6b6a5c91-6a12-487b-acae-48af50c5d1c6","block_type":"box","text":"“contracts for difference.”","page_number":57,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"093e192d-eee0-49da-882c-1b02e4dd580d","block_type":"box","text":"Total return swaps may be used to obtain exposure to a security or market without owning or taking physical","page_number":57,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"c124f76c-477d-410b-96aa-92b9f9c53260","block_type":"box","text":"custody of such security or investing directly in such market. Upon entering into a total return swap, a Fund is","page_number":57,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"4c877257-5eec-418b-86d5-b5c1718f0cbe","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":57,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"72acf195-91d5-4d08-8dc3-11cc174cbea5","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":57,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"af26d47d-82c2-4885-a3c2-dd76274b4d2f","block_type":"box","text":"the notional amount of the swap.","page_number":57,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"c6143008-683e-47a8-86a3-63f77e94100a","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":57,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"1a3cb922-1748-41b7-af27-eee0ff19f018","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":57,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"19a2aeab-d6cf-44a1-b511-777e798e59f6","block_type":"box","text":"Options.","page_number":57,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"e92dbdb2-b0bf-420f-ad5a-6bec87519b69","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":57,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"86bebab7-552a-45c4-9ded-41487aae75a7","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":57,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"ca661ce3-2cd0-4f1c-b238-8dbb2ff2c749","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":57,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"a222ed1b-bb79-44d6-92c6-0139016bb887","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":57,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"2dd78261-6abb-42df-81b3-fc6536d9290c","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":57,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"83773d6f-38a8-4b91-9f26-8a671e0d48c1","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":57,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"b6c45613-dddd-4ae5-883d-8f8de0728924","block_type":"box","text":"par ties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":57,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"c9556a66-b821-40e6-ad2e-4060b95e0946","block_type":"box","text":"OTC options have more flexible terms negotiated between the buyer and the seller, but are subject to greater credit","page_number":57,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"e6a7798a-7367-429a-b8cb-f4963b911114","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":57,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"64e11de1-e3a4-4e77-94a5-8d4dbd7ef950","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":57,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"7629722c-4e3b-4d12-b352-8bdfcd51a113","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":57,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"fffb68de-726d-46ad-a74e-5cd93f32b596","block_type":"box","text":"exotic options that can only be exercised (or automatically expire) if the price of the underlying asset reaches one or","page_number":57,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"cfa82e99-0509-4ac0-94ba-d14d4dfea2f8","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":57,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"03b69bcc-3b40-4bd0-b859-4eb987faf9a5","block_type":"box","text":"a fixed all-or-nothing payout if one or more predetermined conditions are met. Exotic options are typically traded in","page_number":57,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"7c68d629-bd5f-4d85-9719-a7ad59c6d728","block_type":"box","text":"OTC markets.","page_number":57,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"c32b5f02-adf5-4f00-99d6-a6a4f6513bd4","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":57,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"3624713d-09dc-495c-910f-204a954705f6","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":57,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"96574a4d-9066-4d17-9d10-37e712076e72","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":57,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"c434d72f-e2b3-4296-bead-b3cf007bb7eb","block_type":"box","text":"par ticular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":57,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"61fa79e1-3d81-4382-b40e-7c0edd5060fc","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":57,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"99fd3500-8bdf-4a56-8ccb-918458900963","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":57,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"01039628-8b8f-4b8b-8de3-c1b4bea29090","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":57,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"94947272-2d25-483a-bd23-7c5d291f0af4","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":57,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"a62ed774-d424-4770-b0e7-5c73c9bf1949","block_type":"box","text":"Options Clearing Corporation may not at all times be adequate to handle current trading volume; or one or more","page_number":57,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"e3ceb588-3397-4fa8-9941-5a064c5b67ec","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":57,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"3b9e5692-5065-4b6b-aca4-f31c83dbd9a0","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":57,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"b510a7ea-c8d9-492c-afee-f37186c9a868","block_type":"box","text":"class or series of options) would cease to exist, although outstanding options that had been issued by the Options","page_number":57,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"dc141e71-bbe3-49a8-852d-bd44a6e79b02","block_type":"box","text":"Clearing Corporation as a result of trades on that Exchange would continue to be exercisable in accordance with their","page_number":57,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"afa7f705-5e12-437c-93d9-cd57fd765562","block_type":"box","text":"terms.","page_number":57,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"ed73d3d2-4d31-4dbb-af21-827d2eeccf91","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":57,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"7fdb8f8f-fcf2-460f-8f78-3eba472f0920","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":57,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"6ff9e3a1-fb17-46b2-a02b-3356074fa883","block_type":"box","text":"(regardless of whether such options are written on the same or different exchanges or are held or written on one or","page_number":57,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"b4a5f2f4-7b9a-434e-ad82-036503be32c7","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":57,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"1e285d05-0cfd-4c88-b29f-5d12aeb07ec0","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":57,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"ca54499a-6268-4793-87a8-e2700b010b49","block_type":"box","text":"II-20","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fd4517b5-4a5d-4ab3-bdab-a5692ac1f62f","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e473b7b5-abaa-4a8f-9630-a0e7f12d33b1","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":58,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"992224c8-543e-49c9-aabf-d3a20cf474c1","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":58,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"eee60144-3642-4bd9-a517-45dd754ac08c","block_type":"box","text":"Call Options.","page_number":58,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"07b128a3-d931-4868-809d-4101d6688979","block_type":"box","text":"A Fund may purchase call options on any of the types of securities or instruments in which it may","page_number":58,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"863eefdc-84fe-4ed9-85f0-8cd4b45eeb62","block_type":"box","text":"invest. A purchased call option gives a Fund the right to buy, and obligates the seller to sell, the underlying security at","page_number":58,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"37cebea5-b8db-414c-b66e-a023bc53aa5a","block_type":"box","text":"the exercise price at any time during the option period. A Fund also may purchase and sell call options on indices.","page_number":58,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"1876e95f-be99-4c37-83a2-1510e7e686a9","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":58,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"049a77c5-ee92-4edd-84dc-d67530ae9b52","block_type":"box","text":"underlying the option at a specified price upon exercise, an index option gives the holder the right to receive cash","page_number":58,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"03af06c5-0ba5-4271-a9db-d4df66bdb23f","block_type":"box","text":"upon exercise of the option if the level of the index upon which the option is based is greater than the exercise price","page_number":58,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"aa30f2f9-f367-4628-8cea-f6b65488f41f","block_type":"box","text":"of the option.","page_number":58,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"8ba7f54e-a885-4499-888d-0fddb46670b5","block_type":"box","text":"A written call option is covered if a Fund holds a call on the same security or index as the call written where the","page_number":58,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"50a9c504-dada-47e7-84a7-0e8e30771d33","block_type":"box","text":"exercise price of the call held is (i) equal to or less than the exercise price of the call written, or (ii) greater than the","page_number":58,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"735a52d9-46c0-415a-9373-29b14a0b27d5","block_type":"box","text":"exercise price of the call written provided the difference is maintained by the Fund in assets which are not considered","page_number":58,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"3ded0426-2182-4572-a50c-60916691beed","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":58,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"fffca503-6f0e-4029-804c-4d9d39583007","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":58,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"f86c2585-e3b6-4507-a788-d2e72d24b69a","block_type":"box","text":"A Fund may write (","page_number":58,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"00d514fd-dd1e-442d-b08f-6375f84fdb72","block_type":"box","text":"i.e.","page_number":58,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"6dc11c21-7b82-46ab-84e3-cce8a3c8f771","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":58,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"0fc90dc5-f5ce-4267-9be8-dfa57d07d9c7","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":58,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"6ac950d2-66e1-452c-9288-db1fd96bd855","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":58,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"6194418c-0adc-48dd-a7ca-881986a4a409","block_type":"box","text":"specified future date and price set at the time of the contract. The principal reason for writing call options is the","page_number":58,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"a3da9ccc-6ff9-4afe-9898-6a573afe46c0","block_type":"box","text":"attempt to realize, through the receipt of premiums, a greater return than would be realized on the securities alone.","page_number":58,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"54f27dd9-0bed-42bf-8d16-2c92db799a9a","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":58,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"295556fd-617e-4595-b9f6-841542dd4e79","block_type":"box","text":"increase in the underlying security above the option exercise price. In addition, a Fund’s ability to sell the underlying","page_number":58,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"188bcf3f-8783-441f-9cb5-b320e97c4af2","block_type":"box","text":"security will be limited while the option is in effect unless the Fund enters into a closing purchase transaction. A","page_number":58,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"dc140640-5671-4442-8112-0ca6cc6ee5a3","block_type":"box","text":"closing purchase transaction cancels out a Fund’s position as the writer of an option by means of an offsetting","page_number":58,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"7b52ae80-fbd0-4749-8616-7b6850d61e82","block_type":"box","text":"purchase of an identical option prior to the expiration of the option it has written. Covered call options also serve as","page_number":58,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"002eab88-ccd0-4b00-972e-f4509f2115da","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":58,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"4dd978c8-48c6-494e-8dcc-8257e0f5ec1f","block_type":"box","text":"A Fund may write","page_number":58,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"279936d0-9677-42e0-a92e-a6cb5d0f441f","block_type":"box","text":"(i.e.","page_number":58,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"2cc6c72b-e710-41da-83ea-51bc7b9cadc3","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":58,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"6210ebf9-6116-444a-8bcd-bfddd86aa2d1","block_type":"box","text":"are not currently held by the Fund. The principal reason for writing uncovered call options is to realize income without","page_number":58,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"311e4739-4b37-4a7a-8916-b73f6b16c537","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":58,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"ec4c4861-aa6e-43bb-a414-cd5abd278de5","block_type":"box","text":"a Fund must deposit and maintain sufficient margin with the broker-dealer through which it made the uncovered call","page_number":58,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"889766a4-d2a7-49bd-bfac-bc3207d61411","block_type":"box","text":"option as collateral to ensure that the securities can be purchased for delivery if and when the option is exercised.","page_number":58,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"01376fb2-b461-4433-9e97-33f6878a4966","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":58,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"fb78a0c5-4bc8-41eb-8ec2-23a59d628085","block_type":"box","text":"strategy to increase a Fund’s income with minimal capital risk. Uncovered calls are riskier than covered calls because","page_number":58,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"8adac3e0-7989-4e3a-b8fd-30e3affda467","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":58,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"bc7983f1-4569-4930-bf09-c210044fca65","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":58,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"286f1b36-bf4e-464f-87f3-e7670ca8cd31","block_type":"box","text":"the underlying security to meet its call obligation. There is also a risk, especially with preferred and debt securities","page_number":58,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"ed3c77da-b753-464c-88ed-785e2da424f0","block_type":"box","text":"that lack sufficient liquidity, that the securities may not be available for purchase. If the purchase price exceeds the","page_number":58,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"406f98d7-a6da-435b-817e-9ec618028b23","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":58,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"f4203329-02f0-4f2d-8445-ef0731acdd34","block_type":"box","text":"Put Options.","page_number":58,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"87e0f6dd-a93b-4a26-b9b8-fc60e25a1927","block_type":"box","text":"A Fund may purchase put options to seek to hedge against a decline in the value of its securities or","page_number":58,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"395d79f4-03da-4c20-bd70-a1157d25393a","block_type":"box","text":"to enhance its return. By buying a put option, a Fund acquires a right to sell the underlying securities or instruments","page_number":58,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"9c3e368a-be90-4158-a961-d8a52e432497","block_type":"box","text":"at the exercise price, thus limiting the Fund’s risk of loss through a decline in the market value of the securities or","page_number":58,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"a1ae1ee4-687e-4e27-90c5-f2a884b2cff6","block_type":"box","text":"instruments until the put option expires. The amount of any appreciation in the value of the underlying securities or","page_number":58,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"a20fe521-b25c-4e93-b5cb-d49979b7bfe4","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":58,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"36210d41-deff-4326-a2fe-46ddfa6c3871","block_type":"box","text":"costs. Prior to its expiration, a put option may be sold in a closing sale transaction and profit or loss from the sale","page_number":58,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"496bbd94-4422-4753-b7f9-56a5b426d1be","block_type":"box","text":"will depend on whether the amount received is more or less than the premium paid for the put option plus the related","page_number":58,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"9f8b308d-86cb-4e27-a3ee-2fe1c7109d13","block_type":"box","text":"transaction costs. A closing sale transaction cancels out a Fund’s position as the purchaser of an option by means of","page_number":58,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"e4bb5223-4eda-4a0e-8fb3-2b09f9ac2570","block_type":"box","text":"an offsetting sale of an identical option prior to the expiration of the option it has purchased. A Fund also may","page_number":58,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"e3a7e03d-d096-48ba-91e8-002d12e1dd14","block_type":"box","text":"purchase uncovered put options.","page_number":58,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"0aec0f78-5ac1-42d7-9b4d-29e45773aff8","block_type":"box","text":"A Fund also may write (","page_number":58,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"052938a6-6e81-447c-a5a9-e5f594186fa6","block_type":"box","text":"i.e.","page_number":58,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"1d41b673-2824-4a60-b8cb-60891a302d5e","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":58,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"fbfd8bb5-d986-4977-ab45-169a9f190f1b","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":58,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"3e12c221-12ea-487b-8fbe-a3a9c0ede894","block_type":"box","text":"A Fund also may write (","page_number":58,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"8bad7808-8c8d-4a45-a777-74f85823a504","block_type":"box","text":"i.e.","page_number":58,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"ad190bc4-9726-45a6-98a0-1c5b713d0ad5","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":58,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"63089fa5-1875-49d7-b7ec-bf030f1554d6","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":58,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"f325f806-e08e-4f07-b090-04f8f39986dc","block_type":"box","text":"collateral cash equal to the exercise value of the put option with the broker-dealer through which it made the","page_number":58,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"f654bd05-3854-427f-93b5-2ca838b4bce3","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":58,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"f53a0743-a6d4-4d8c-8313-2b05ab6aef14","block_type":"box","text":"acquire such securities or instruments at a net cost below the current market value. A Fund has the obligation to buy","page_number":58,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"7e04914a-68e5-431a-b346-fbb9e9308452","block_type":"box","text":"II-21","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"525ff077-65f5-45dc-bb4a-909c865f3e76","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"52a79a88-653f-4d33-b9ac-d4251c8ebcf9","block_type":"box","text":"the securities or instruments at an agreed upon price if the price of the securities or instruments decreases below","page_number":59,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"363e4a3f-0541-4288-8417-f88622867d5c","block_type":"box","text":"the exercise price. If the price of the securities or instruments increases during the option period, the option will","page_number":59,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"6be3f2d6-ba9d-496d-afc5-399ccdaef872","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":59,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"bcd22f21-2fb1-42a5-84f2-5a06d4bcca10","block_type":"box","text":"the exercise price.","page_number":59,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"d11116cb-e92e-4fa0-ad59-baa5b7cfa103","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":59,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"2b906d26-7108-4baf-a130-cace868e32bd","block_type":"box","text":"The following information relates","page_number":59,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"199d0058-88bf-441e-920b-34c21cc83d72","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":59,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"e6877208-6601-4160-a363-cd8ea7f6f1ea","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":59,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"0f2f88aa-a3cd-46ee-b5a3-b3e827963037","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":59,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"4e2d2c68-5a07-4907-8451-3a8011aa8b89","block_type":"box","text":"it holds no longer have a sufficient remaining principal balance for this purpose. Should this occur, a Fund will","page_number":59,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"6bd582ce-75e7-4d88-bba9-895f45af8c5d","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":59,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"eb2e5bca-9d83-4a04-a8bf-5df7d38209f6","block_type":"box","text":"market in order to maintain its “cover.”","page_number":59,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"2b9cfbc6-ff7d-4558-b4e4-12f32730806b","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":59,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"3160eff8-1149-414e-97af-a016edde55f9","block_type":"box","text":"to represent cover for the option in the event of a decline in the GNMA coupon rate at which new pools are originated","page_number":59,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"2d71d687-3fff-4934-840b-7a57800fbe05","block_type":"box","text":"under the FHA/VA loan ceiling in effect at any given time. If this should occur, a Fund will no longer be covered, and","page_number":59,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"b65b4c96-bc11-4748-8327-c2a31be15447","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":59,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"e9555cf3-5e28-4554-9281-9e629d561d46","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":59,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"3b05116a-9aba-4a43-a853-448679579bb6","block_type":"box","text":"and incur transaction costs.","page_number":59,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"327939ea-60b0-4c3f-a9fd-1cada4592a68","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":59,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"61601b1a-3ed1-4a52-be02-f02012f7da74","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":59,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"55013878-656c-4cce-838d-d3e35593f37f","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":59,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"f02e75a3-2865-4567-acb0-23e7be9dca39","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":59,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"12154dda-3f0f-4cc5-9a51-04c45571fbea","block_type":"box","text":"i.e.","page_number":59,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"13b15e81-7cee-4de9-b626-82b55a05c8cd","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":59,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"1bbfd7be-59e9-4ea7-b990-e17281626173","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":59,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"0f964dfa-07e8-4d00-9bc3-a3fb5d678d35","block_type":"box","text":"it writes a swaption than it will incur when it purchases a swaption. When a Fund purchases a swaption, it risks","page_number":59,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"0a139f47-f51b-41da-8795-4a95b64d5f73","block_type":"box","text":"losing only the amount of the premium it has paid should it decide to let the option expire unexercised. However,","page_number":59,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"df65d0d7-d205-46ca-a989-88663a40d376","block_type":"box","text":"when a Fund writes a swaption, upon exercise of the option the Fund will become obligated according to the terms of","page_number":59,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"a6c7e0bb-09ca-4e5e-80f8-38ab0853a8d5","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":59,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"bebe94e0-3eae-46b1-a558-57710dda30ca","block_type":"box","text":"required, to be cleared.","page_number":59,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"c705d51c-9aa6-4507-b629-1ed23c519a53","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":59,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"c44c538b-b668-4877-b58e-89c7a03475ff","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":59,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"ed2f0b2c-e62b-4f65-81ba-354e0bdb6394","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":59,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"8196b763-dab8-44df-8daf-1d5b0650f93f","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":59,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"d9465971-a83d-4eba-8c2b-5643e5b383c0","block_type":"box","text":"Derivatives” above.","page_number":59,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"b9bde9ff-636b-4042-8b8b-48a5fe2f08a4","block_type":"box","text":"FLEX Options.","page_number":59,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"661589cb-6c2a-406c-838b-784bcff95a47","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":59,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"088f4106-68c8-41ef-b492-f25a5776339b","block_type":"box","text":"are guaranteed for settlement by the Options Clearing Corporation (“OCC”). FLEX Options are listed on a U.S. national","page_number":59,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"f6014325-5e05-42ab-a6e0-ebf3d7a53e66","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":59,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"c19197c0-3b44-4ff9-9ec5-8a1a65d5e258","block_type":"box","text":"exercise prices, exercise styles (","page_number":59,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"0019280b-d3f3-4df9-b6f6-097ba70d7858","block_type":"box","text":"i.e.","page_number":59,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"4b6d0778-b5c3-456a-963d-aeff05ccef46","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":59,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"69249aa2-ff20-4c50-9cdf-f2e8fffd49ca","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":59,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"224449d3-20aa-4c53-967a-27f67b882285","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":59,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"f08900a1-4944-4a1d-b8e5-41600ec210e7","block_type":"box","text":"option contract entitles the holder thereof to purchase (for the call options) or sell (for the put options) shares of the","page_number":59,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"1f7aee70-1c76-4c8f-a8c8-21e0f6239ca7","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":59,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"ccf39933-1253-476e-9498-6583e35ec629","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":59,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"ccc0d9a0-b5b5-4aec-b0d6-98435e6713db","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":59,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"62ef2a59-4921-492e-b14d-c3dd883ed8f4","block_type":"box","text":"FLEX Option’s expiration date.","page_number":59,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"2354c0f4-06f0-4195-ae44-cfc41418c8ce","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":59,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"ec599121-41cb-4a80-86ed-0f4772dcffb6","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":59,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"6c64c2c8-0d68-4ef5-971a-a89a4aa607af","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":59,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"d941e8f3-29d2-431d-b212-c629deebcc21","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":59,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"cd209577-5b30-46b9-afa7-c47c805675ea","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":59,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"6076583d-a65f-4be4-8eb1-58c69297f20b","block_type":"box","text":"FLEX Options contracts.","page_number":59,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"8062fe40-dbcd-4f0f-89e2-bc6a7ebccddb","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":59,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"8498e1f5-aaf4-4903-8d1c-e45d1dbbc978","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":59,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"81811743-d594-4257-8835-c6b0f59d95b8","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":59,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"ef8b7437-5638-41d6-83ea-b18b1e7d59ea","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":59,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"0289792d-146e-47ff-9ee0-daac6cb5481e","block_type":"box","text":"liquidation of the issuer of the underlying security. According to the OCC’s by-laws, the nature and extent of any such","page_number":59,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"2f522969-3ecb-4d77-a43a-200eda8bdeae","block_type":"box","text":"adjustment is to be determined by the OCC’s Securities Committee, in light of the circumstances known to it at the","page_number":59,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"586ed29a-2f3c-479d-b3a5-4136f92e3dff","block_type":"box","text":"II-22","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"58f9e910-a0db-4962-be2a-4e085980d196","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c0f46c74-e7ec-42cd-9de6-c6c642c9ac59","block_type":"box","text":"time such determination is made, based on its judgment as to what is appropriate for the protection of investors and","page_number":60,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"2e110655-9932-4f74-8edd-b24244cafef4","block_type":"box","text":"the public interest, taking into account such factors as fairness to holders and writers (or purchasers and sellers) of","page_number":60,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"96844294-2435-4940-9b9a-789953e9efbd","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":60,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"d710b56a-4fcc-4312-bcd4-4320caf0ff5f","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":60,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"7ea9ab0b-914b-4c7f-89b2-968f76171d88","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":60,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"8e0c5fb7-0f2e-49b1-ba4a-f7a165dcc589","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":60,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"e337e5eb-b025-4c4e-bedd-708e139a0214","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":60,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"094b3dbf-b326-458f-8969-ee819ac70c74","block_type":"box","text":"on an exchange-traded fund (“ETF”) or the S&P 500 Index (together with such ETF, a “Reference Asset”). As","page_number":60,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"5c30de09-9635-4918-80f8-644ceb5d0abc","block_type":"box","text":"such, the value of a Fund’s FLEX Options will fluctuate with changes in the value of the securities held by the","page_number":60,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"ce9de735-1900-4ab1-9cf7-bddab91be4be","block_type":"box","text":"ETF, and thus the ETF’s share price. In addition to the value of the ETF, the value of an option, in general, will","page_number":60,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"0374c978-27f9-4da5-b26b-1de08213f1f8","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":60,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"cb227f8b-6ba1-4b5d-b3c4-72a60e249e04","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":60,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"097f951d-6b05-4bb9-a54a-42d7fc6fb634","block_type":"box","text":"expire unexercised have no value.","page_number":60,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"3e1203a2-12b4-4e40-9336-9d455f9e3a8f","block_type":"box","text":"The puts and calls on the Reference Asset entitle the purchaser of the option the right to purchase (for a","page_number":60,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"4ef416d9-a625-409a-80d2-56f3a9ce2544","block_type":"box","text":"call option) or sell (for a put option) the Reference Asset at a predetermined specified price (the “strike price”).","page_number":60,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"75c3248c-bb03-49b7-8dfa-2ae12bfc80e3","block_type":"box","text":"When a Fund writes a call on the Reference Asset, it receives a premium and agrees that the purchaser of the","page_number":60,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"beae79ab-b1c8-49b8-8aa1-70fbbb73904a","block_type":"box","text":"call, upon exercise of the call, will receive from the Fund the delivery of a specified number of shares of the ETF","page_number":60,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"87429f3d-c918-462f-b27b-c77d82c31a8d","block_type":"box","text":"in exchange for the strike price. When a Fund buys a call on the Reference Asset, it pays a premium and has the","page_number":60,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"e38798d9-4c2d-48d3-a53e-460851abd2c4","block_type":"box","text":"same rights to such call as indicated above. When a Fund buys a put on the Reference Asset, it pays a premium","page_number":60,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"969a916d-ea4b-475a-b27e-34f5ad7b06ad","block_type":"box","text":"and has the right to require the seller of the put, upon the Fund’s exercise of the put, to deliver the specified","page_number":60,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"0fbf3054-139f-4f6c-adec-6af35f743f51","block_type":"box","text":"number of shares of the ETF in exchange for the strike price. When a Fund writes a put on the Reference Asset,","page_number":60,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"82ce34c4-6729-45a8-a677-9125ee642d16","block_type":"box","text":"it receives a premium and the purchaser of the put has the right to require the Fund to deliver the specified","page_number":60,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"317a2291-aa8f-4cd9-bdb4-538f47a1ad4a","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":60,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"b33f6159-622c-4226-8c5f-6739df8eb89c","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":60,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"f4724cb8-46d7-430e-aa01-003e5a09a5dc","block_type":"box","text":"FLEX Options that are cash-settled. Cash-settled options give the holder the right to receive an amount (or owe","page_number":60,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"2f472e16-2804-4f19-847b-df359ed36df4","block_type":"box","text":"an amount) of cash upon the exercise of the option. Gain or loss depends on changes in the value of the ETF’s","page_number":60,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"c1eaa47d-160e-47ea-9ae6-8de817e8275f","block_type":"box","text":"share price relative to the strike price for a given option contract. The amount of cash is equal to the difference","page_number":60,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"f534a689-6980-4e9e-8fde-ab1ea81930ec","block_type":"box","text":"between the closing price of the ETF’s share price and the exercise price of the option contract times a specified","page_number":60,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"c797646f-a36d-4b2f-a2a2-163a4f4a763a","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":60,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"37cf2144-2afb-4c2c-92a4-977f63cefc6a","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":60,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"12e2e758-3a09-4bb0-8797-34e460e4f5c6","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":60,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"0afc0c94-84fe-46dc-b329-88e34c2f14f2","block_type":"box","text":"closing value for that day is available, it runs the risk that the level of the Reference Asset may subsequently","page_number":60,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"49ea829e-183d-48fb-9be2-1171708f8f58","block_type":"box","text":"change. If such a change causes the exercised option to fall out of the money, the applicable Fund will be","page_number":60,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"8803ac35-39df-4a7c-820e-52143c88ac41","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":60,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"1caff25c-ff8b-4097-a672-0d1e10aa5879","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":60,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"1793e475-e669-425d-9c11-97e0a9b0cda8","block_type":"box","text":"Foreign Exchange Transactions.","page_number":60,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"4e065e07-94f6-492f-a51e-98ac2d905210","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":60,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"6f489a3c-e46a-42d7-ad0c-67c9aaa372bb","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":60,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"5f07bafa-8f05-43ed-97f1-ae93deb5414a","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":60,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"228cfdd8-02ab-4822-ab55-22efe0947edd","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":60,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"98f01ca2-795c-40b7-ac5b-dc1488095537","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":60,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"20d82770-830b-4539-a0d8-25045d7addaa","block_type":"box","text":"Fund, sold by a Fund but not yet delivered, or committed or anticipated to be purchased by a Fund. As an illustration,","page_number":60,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"f0602f37-f476-45fe-aced-8debf41a2d58","block_type":"box","text":"a Fund may use such techniques to hedge the stated value in U.S. dollars of an investment in a yen-denominated","page_number":60,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"aa67c946-b62c-4fa3-a3f5-e8660fc2423d","block_type":"box","text":"security. For example, the Fund may purchase a foreign currency put option enabling it to sell a specified amount of","page_number":60,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"839e5487-287b-4652-bd56-30e3028cd63a","block_type":"box","text":"yen for dollars at a specified price by a future date. To the extent the hedge is successful, a loss in the value of the","page_number":60,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"a33e4c64-91d0-46c4-92ee-c9a063794316","block_type":"box","text":"yen relative to the dollar will tend to be offset by an increase in the value of the put option. To offset, in whole or in","page_number":60,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"396e59bd-8205-4ee2-b318-2e35acf98656","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":60,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"3c79592e-db2f-4f47-be24-dd8708866c62","block_type":"box","text":"sell a specified amount of yen for dollars at a specified price by a future date (a technique called a “straddle”). By","page_number":60,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"b37eb599-6b27-4198-b463-be44bad0fb70","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":60,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"280ad2af-2bd3-4fba-b515-af1d15a7f409","block_type":"box","text":"the relative value of the yen to the dollar. “Straddles” of the type that may be used by a Fund are considered hedging","page_number":60,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"2b6cc040-07f7-48db-bb9b-8b0cd2b83f6a","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":60,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"501dbb22-df3e-45d7-af30-3c39dd032d1f","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":60,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"156ab836-c8f3-49b8-93f1-3e4a3fbaa859","block_type":"box","text":"use of Currency Instruments to effect hedging strategies is intended to reduce the volatility of the NAV of the Fund’s","page_number":60,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"862a3959-eca7-4347-9c0b-8e4f77278e85","block_type":"box","text":"shares; however, the use of such hedging strategies will not prevent the NAV of the Fund’s shares from fluctuating.","page_number":60,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"a86c93b9-2248-4210-8475-950288b15851","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":60,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"eff6c8b5-e236-469c-896b-8bb63aa5a3e9","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":60,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"e3cd2b7e-5118-42b5-82e7-c6d2e3aa5fdf","block_type":"box","text":"II-23","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"911ca00d-91a2-4a7a-96e1-b1c4ce462faa","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"69cc5324-a221-4818-8dba-dc00926574cc","block_type":"box","text":"accurately predicted and that the Fund’s hedging strategies will be ineffective. To the extent that a Fund hedges","page_number":61,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"64b73ca3-4974-4719-936b-0060d085cb59","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":61,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"4275428a-630a-428d-9184-88a64208de00","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":61,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"dfcb3bd9-6ff5-4a47-add5-32754604c60a","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":61,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"ac62f57d-d89c-43f6-ad39-04abf3d652f2","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":61,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"1a255113-1c42-48dd-91e5-eebab7738119","block_type":"box","text":"domestic bank, or foreign or domestic securities dealer, to make or take future delivery of a specified amount of a","page_number":61,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"fd3e334e-9709-4e10-acaa-0ea19e5ad897","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":61,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"428d4d2c-539b-4920-8eb8-cb514484e53e","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":61,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"1395e03d-1d91-4829-860f-6a1805023b10","block_type":"box","text":"or dealers have refused to quote prices for such forward contracts or have quoted prices with an unusually wide","page_number":61,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"d2c85ebe-db60-459d-8f79-381343f6e987","block_type":"box","text":"spread between the price at which the bank or dealer is prepared to buy and that at which it is prepared to sell.","page_number":61,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"3944b3c6-f6ed-448e-aa4d-ce58a79e4bcb","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":61,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"793b30ad-631a-41d0-ae6c-d410c4c05064","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":61,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"70ea8fe1-3b5c-4eb2-8fbd-69c18fb95d50","block_type":"box","text":"would deprive the Fund of any profit potential or force the Fund to cover its commitments for resale, if any, at the","page_number":61,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"ef45d605-15f4-418b-95d4-17ecfda58bb5","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":61,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"f6f5472e-9853-4174-bceb-85d26d34b1bb","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":61,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"42fde527-edff-44b0-a8ce-8f1aec22fbd1","block_type":"box","text":"anticipated, in the event that (i) the currency exchange rate movement is so generally anticipated that the Fund is not","page_number":61,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"953650bd-6155-4ee0-bdd3-27d0682f7c45","block_type":"box","text":"able to enter into a hedging transaction at an effective price, or (ii) the currency exchange rate movement relates to a","page_number":61,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"44da55bf-e73a-47f5-96ce-a2393939c38f","block_type":"box","text":"market with respect to which Currency Instruments are not available and it is not possible to engage in effective","page_number":61,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"8c27b162-8200-426d-9b62-f51c1b2d3dee","block_type":"box","text":"foreign currency hedging. The cost to a Fund of engaging in foreign currency transactions varies with such factors as","page_number":61,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"cff1adc3-e102-4d7d-aa20-24a9985ec65d","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":61,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"522bc5b5-ec49-4065-a1bb-e66b1a118632","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":61,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"16518d3d-cb42-4dfd-a83b-b4e6cfa86219","block_type":"box","text":"involved.","page_number":61,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"0e867438-25c4-41c7-a259-2a997cab363b","block_type":"box","text":"A Fund will not hedge a currency in excess of the aggregate market value of the securities that it owns (including","page_number":61,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"2b0b343a-e821-48f1-96bf-c4674f9a9d6e","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":61,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"6fe3c3b6-5c06-4e20-bc77-c1747f9e2d86","block_type":"box","text":"denominated in such currency.","page_number":61,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"a92d2eaa-a68d-4635-ad9b-e4837d2f8277","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":61,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"7243e948-adbc-4b15-87cf-70a9919aa73e","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":61,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"90b0225a-adcd-4c04-9774-c210948a8a2f","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":61,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"f057c608-aaa1-4da4-b6c5-7aa823e63826","block_type":"box","text":"transactions are similar but are settled in the current, or “spot”, market. A Fund will enter into foreign exchange","page_number":61,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"2777a011-0a60-4137-88d7-05c7ee7c6434","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":61,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"42a53aa4-1571-4fd6-a246-d6afbeb93bbd","block_type":"box","text":"Funds, to seek to enhance returns. FX forwards involve substantial currency risk, credit risk and liquidity risk. A Fund","page_number":61,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"379adda4-e13c-47c1-9773-6203d605a0a6","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":61,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"1dd349a0-2610-407c-8906-54a2b3776c09","block_type":"box","text":"purchasing a currency needed to settle a security transaction or selling a currency in which the Fund has received or","page_number":61,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"9408f848-0b49-45fb-b831-8af390da1538","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":61,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"3122dee6-1e4c-47b6-ab28-1106a324d989","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":61,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"cd2cb181-6b9e-449e-b66e-36efd58ec6a9","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":61,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"2a8b96fa-236e-4c87-a5c9-be54fc8b1875","block_type":"box","text":"also hedge a currency by entering into a transaction in a Currency Instrument denominated in a currency other than","page_number":61,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"8d5cd1cf-217d-4cfa-beca-7a1ec6479f5c","block_type":"box","text":"the currency being hedged (a “cross-hedge”). A Fund will only enter into a cross-hedge if the Manager believes that","page_number":61,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"cc9f915d-31d6-4a25-a584-bd806f2777f0","block_type":"box","text":"(i) there is a demonstrably high correlation between the currency in which the cross-hedge is denominated and the","page_number":61,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"2f26c06f-877d-40e8-8370-18723e5b83dd","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":61,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"4909a943-fdbc-4563-8e7b-ea5059e40e4b","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":61,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"7557c4de-4d9a-4cd6-9921-23c7e1abfbc1","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":61,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"86d3e540-5736-4e66-bd7c-992c0f091d70","block_type":"box","text":"A Fund may also engage in proxy hedging transactions to reduce the effect of currency fluctuations on the value","page_number":61,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"c17d48cd-2b1a-4fc8-b57b-94b56a40d5c8","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":61,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"30589eb0-3b95-45de-9fef-2cfffe128473","block_type":"box","text":"Fund is exposed is difficult to hedge, or to hedge against the U.S. dollar. Proxy hedging entails entering into a forward","page_number":61,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"d0cf9481-5366-40a7-a949-f3f88848545b","block_type":"box","text":"contract to sell a currency whose changes in value are generally considered to be linked to a currency or currencies","page_number":61,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"d13f11a8-41b5-48a9-bd92-aede8b591791","block_type":"box","text":"in which some or all of the Fund’s securities are, or are expected to be, denominated, and to buy U.S. dollars. Proxy","page_number":61,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"913fd1d3-1b05-49da-b0b3-e565b42d4bfe","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":61,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"b34c966e-53d1-47a8-bed2-2cc47d6fe370","block_type":"box","text":"transactions can result in losses to the Fund if the currency being hedged fluctuates in value to a degree or in a","page_number":61,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"e8985a38-1f95-4e6a-ac77-6b719af131e7","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":61,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"87fc9db2-ebd0-451d-bddd-45d3ca16db3d","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":61,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"5d327a4c-285d-4f18-9d1a-0e207cecc80d","block_type":"box","text":"A Fund may also cross-hedge currencies by entering into forward contracts to sell one or more currencies that","page_number":61,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"4faa9f2e-de38-4b4d-849a-f23e3bea1514","block_type":"box","text":"are expected to decline in value relative to other currencies to which the Fund has or in which the Fund expects to","page_number":61,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"b9c75cc5-1db9-4395-b9e9-5db3c6e892eb","block_type":"box","text":"have por tfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":61,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"10a90bd2-f81c-457f-acba-21aeadd441bd","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":61,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"698d720c-cf24-48ad-8f6e-c1fb6bbe28c5","block_type":"box","text":"Fund would sell Canadian dollars to reduce its exposure to that currency and buy Japanese yen. This strategy would","page_number":61,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"a2a1c2d9-7abe-4d4a-ac59-bc7dd8bd1e04","block_type":"box","text":"II-24","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ca5a86d5-06b7-4228-bc0b-7027c08b178d","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7484d8c6-802f-4fcd-8419-2dacb6f2d6ce","block_type":"box","text":"be a hedge against a decline in the value of Canadian dollars, although it would expose the Fund to declines in the","page_number":62,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"b659bc45-42da-4014-85b2-efb624d0b3c8","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":62,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"15a5ed44-59ce-4b15-83ec-a25db1c9b893","block_type":"box","text":"Some of the forward non-U.S. currency contracts entered into by the Funds are classified as non-deliverable","page_number":62,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"64b00c0e-4b40-4815-b03f-ae82dd360c57","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":62,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"8a3149d7-97ad-4cab-8b45-16a900c0b4c7","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":62,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"bbeff543-4308-4992-83ed-710e050ecb70","block_type":"box","text":"the difference between the agreed upon exchange rate and the spot rate at the time of settlement, for an agreed","page_number":62,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"98e835c3-e13d-4972-b149-a2884ae652ac","block_type":"box","text":"upon notional amount of funds. All NDFs have a fixing date and a settlement date. The fixing date is the date at which","page_number":62,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"899b6910-d322-424b-a315-1b046bfb226b","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":62,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"f6d71cca-12dd-42a8-83ee-a13544473910","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":62,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"89deb9d4-f39d-41f0-b564-2fd143818994","block_type":"box","text":"commonly quoted for time periods of one month up to two years, and are normally quoted and settled in U.S. dollars.","page_number":62,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"67e149be-da26-48d0-8a38-e4226f420f1e","block_type":"box","text":"They are often used to gain exposure to and/or hedge exposure to foreign currencies that are not internationally","page_number":62,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"925abd7b-5059-40ae-8635-f2a9a757fdee","block_type":"box","text":"traded.","page_number":62,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"28a49486-e73d-4971-815b-dff240d07cb2","block_type":"box","text":"Currency Futures.","page_number":62,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"70dde46c-c230-4eeb-94c9-89ba88b5bbb8","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":62,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"285f6e73-60d3-4c4e-b4f5-cb2c8cce6c52","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":62,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"fddf51cf-9ccd-4dd6-be75-257f70f70d87","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":62,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"9bfcb56c-b842-460a-9fd4-3bf0e730b8d5","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":62,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"af4c3c1b-c11c-4a1e-9a34-8f241f28f994","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":62,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"6d523df7-a729-420a-a2e5-bfff1f07c163","block_type":"box","text":"Currency Options.","page_number":62,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"5d922180-fe71-457c-a766-d304493c6f57","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":62,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"11412e81-5154-4d82-ae20-280885b0acd8","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":62,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"9d3aa97a-2d74-4cff-b0b9-2cba6626dc11","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":62,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"8a442844-5012-4bbe-a95d-5c9ec16cb55e","block_type":"box","text":"securities. For example, in consideration for an option premium the writer of a currency option is obligated to sell (in","page_number":62,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"3ce61ff3-d7ed-4836-b369-309901787931","block_type":"box","text":"the case of a call option) or purchase (in the case of a put option) a specified amount of a specified currency on or","page_number":62,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"e8b99a76-cd29-4c36-87ce-ea4760f16dea","block_type":"box","text":"before the expiration date for a specified amount of another currency. A Fund may engage in transactions in options","page_number":62,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"4737c7c7-c04f-4045-92a8-5d6ac5ec801d","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":62,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"6c4831bb-33c3-4634-b453-29f6b2954189","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":62,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"b16a17f0-6089-4c46-8a68-2eccc961bb0f","block_type":"box","text":"structures and/or expirations. Where a Fund is permitted to write currency options, it may write covered call options","page_number":62,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"995d9263-c083-43f3-9a79-ca2283bedcc2","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":62,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"151db984-2b2b-4bb0-be52-6ff4d52695f3","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":62,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"ca7fcb0d-09b5-4683-8874-fa5a58611e4e","block_type":"box","text":"Currency Swaps.","page_number":62,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"a3b0ffd5-d0ec-4bf3-8567-61c4b6e7375c","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":62,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"a557ffc2-b230-436e-a785-faf7e41b72d7","block_type":"box","text":"hedge por tfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":62,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"3e0b5da9-49cb-40ee-9646-caa218e75d1d","block_type":"box","text":"second currency on a spot basis and sold for the second currency on a forward basis. Currency swaps involve the","page_number":62,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"390fc43a-1069-4a82-adaa-04d9467a77ce","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":62,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"cf23b503-903e-45b1-a6ee-02d121b664e3","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":62,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"5419de16-ded1-4077-a301-822f1c47d608","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":62,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"e44aea06-3171-4d62-b265-13da42f87f56","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":62,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"338ac77e-ec09-4b23-8071-d89e0cc08694","block_type":"box","text":"Distressed Securities.","page_number":62,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"7941ae9d-504b-45ac-8355-1398bd921861","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":62,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"03a8d481-9a73-4512-8c9e-21e879a984fe","block_type":"box","text":"are the subject of bankruptcy proceedings or otherwise in default or in risk of being in default as to the repayment of","page_number":62,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"e10a68d6-a273-4c65-ad1e-4f1de24cb3dc","block_type":"box","text":"principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one","page_number":62,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"d1881d90-fdb4-4af9-b89c-bc054fbf2616","block_type":"box","text":"or more nationally recognized statistical rating organizations (for example, Ca or lower by Moody’s and CC or lower by","page_number":62,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"27586f05-7743-492f-9650-6269522a63c0","block_type":"box","text":"S&P or Fitch) or, if unrated, are in the judgment of the Manager of equivalent quality (“Distressed Securities”).","page_number":62,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"a13865a1-9232-4a90-b38c-bd606321e1dd","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":62,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"47ef91f2-2cb7-4535-9405-7639da5503ba","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":62,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"31d2caef-cc6b-4805-85c3-41c62551425a","block_type":"box","text":"issuer of the Distressed Securities will make an exchange offer or will be the subject of a plan of reorganization","page_number":62,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"fa117125-eac4-4f07-94c0-b7d124cfc6c5","block_type":"box","text":"pursuant to which the Fund will receive new securities in return for the Distressed Securities. However, there can be","page_number":62,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"a2ac96b8-ab41-4fb8-a2de-320841325f37","block_type":"box","text":"no assurance that such an exchange offer will be made or that such a plan of reorganization will be adopted. In","page_number":62,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"05e852b3-12af-4314-a136-55839dbec495","block_type":"box","text":"addition, a significant period of time may pass between the time at which a Fund makes its investment in Distressed","page_number":62,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"2ee2c170-8238-4be2-b51d-6cda08c93319","block_type":"box","text":"Securities and the time that any such exchange offer or plan of reorganization is completed. During this period, it is","page_number":62,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"0f1ef729-5bcf-4a44-b051-325c6f021207","block_type":"box","text":"unlikely that a Fund will receive any interest payments on the Distressed Securities, the Fund will be subject to","page_number":62,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"95cd0b35-38c3-4b50-8bec-cf1cecc22e2b","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":62,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"18341ba4-e8c4-4518-8999-9445bbd44eb4","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":62,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"e2ebab35-df29-4198-9823-43d6a9b1152b","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":62,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"fe9e1cdb-4d8c-4af6-9ed3-23dffeaffbfc","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":62,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"5d4ab424-97db-4aaa-b05c-181a2ebeaaa0","block_type":"box","text":"when and in what manner and for what value the obligations evidenced by the distressed securities will eventually be","page_number":62,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"e1954365-fd02-4420-9036-2082a8b893a8","block_type":"box","text":"satisfied (","page_number":62,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"b38359bb-e9df-4a85-bf83-2d8074cd833f","block_type":"box","text":"e.g.","page_number":62,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"dc051f2d-8914-4c6b-9eea-53fa630e4426","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":62,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"62ccd512-b6c5-4c6c-ace2-87112cd5a132","block_type":"box","text":"distressed securities or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is","page_number":62,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"8689dc48-c996-4993-b0a0-36a9ee280606","block_type":"box","text":"II-25","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"74ff8a04-6628-42f1-b5d8-c1e7778c7719","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"67a4745a-a24e-4052-b1e2-0f6ba19a0c5f","block_type":"box","text":"made or plan of reorganization is adopted with respect to Distressed Securities held by a Fund, there can be no","page_number":63,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"2bd94ca7-bed2-4126-baab-5e10c553c5ec","block_type":"box","text":"assurance that the securities or other assets received by a Fund in connection with such exchange offer or plan of","page_number":63,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"03fd0b43-1a08-44e8-b804-839acc542744","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":63,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"bce1faa6-9f43-4637-8b92-fb31b6b25bf2","block_type":"box","text":"was made or no value. Moreover, any securities received by a Fund upon completion of an exchange offer or plan of","page_number":63,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"1109c48b-da41-4910-b5db-e188b2591c81","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":63,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"34a9c3e7-77f1-4a39-a5a7-c4004ad96c51","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":63,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"5c430f06-37f9-4c53-980f-4bd1a08d5271","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":63,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"783d80fe-bfe5-4f04-a284-a295d0c98e40","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":63,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"2ec81f15-f5a1-4d3b-81ec-5bd33ebeee9c","block_type":"box","text":"Fund, however, will not make investments for the purpose of exercising day-to-day management of any issuer’s","page_number":63,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"a1189412-350d-4c0b-b46d-15a7e862863e","block_type":"box","text":"affairs.","page_number":63,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"1aa37085-e87a-4008-90b6-aed90a101693","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":63,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"718f9108-ca87-4168-979b-662b99331ae4","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":63,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"887c3f89-9836-4086-8808-08ca6ffdcc6d","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":63,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"e1916faf-937e-4c83-9034-6c63c2c5d025","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":63,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"d2c95498-8ec6-41d0-91e6-f30d2a54e5da","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":63,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"34b92aef-41ad-4ce6-8a3b-5a92d1fcd784","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":63,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"b61e29b4-8948-4bfa-9aa2-bd47ce0d2844","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":63,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"cb6fd1f0-a98a-4b5c-b9ed-c684c7c3ca13","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":63,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"cbf9b89d-15fd-486a-a7b4-b632fd689ec3","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":63,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"4505a3c1-1618-49b2-ad41-89af53632dea","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":63,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"0109ec69-6907-488c-8028-d26b82e01e7b","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":63,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"2b36be2f-9441-4cf3-92b2-f1f4a9a22f03","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term per formance,","page_number":63,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"d542f47f-b989-4632-b2a8-16d8e935313e","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":63,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"427014d1-f5e6-47df-9bb8-b4fdfdfdfeab","block_type":"box","text":"Equity Securities.","page_number":63,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"5274e3b9-e3fb-4195-9ede-8bd775fc4471","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":63,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"fc5431f9-5938-4210-8633-d40ae840d5f6","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":63,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"0773949e-f5a6-4bb6-87a7-9b79e78bbac9","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":63,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"1e4e25b9-8bf7-4ecd-8332-d6259b7e3086","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":63,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"e5add0e9-902f-4445-a46d-941a5cec5cb3","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":63,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"b8157e1d-874c-499d-9fb1-45542746d222","block_type":"box","text":"and overall market and economic conditions. The value of equity securities purchased by the Fund could decline if the","page_number":63,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"373f4612-314c-43f8-bdff-e855f4a675e3","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":63,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"6bc5f071-7731-4a15-989b-df920beb3141","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":63,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"210e93c4-e043-4a61-980c-f2c4c567bfa3","block_type":"box","text":"shor tages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":63,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"f6c78404-ec05-40d8-94e1-44db74e92812","block_type":"box","text":"due to general market conditions that are not specifically related to a company or industry, such as real or perceived","page_number":63,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"d292d013-d588-40e9-8c4f-9e7c31e7e01a","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":63,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"e3599c7e-f203-4b40-9561-ffd4174cd94c","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":63,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"4312c0c8-763f-41fb-ba04-20d05c6e5656","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":63,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"e6874b74-8d60-4d24-9a35-a3592c9ff3c0","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":63,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"43a85189-0815-419b-8a3a-ab77a2417c85","block_type":"box","text":"no assurance that any Fund will have continued access to profitable IPOs and therefore investors should not rely on","page_number":63,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"21636838-8ec1-447f-b97b-648d350bb949","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":63,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"3dcef476-4f59-4321-896b-f0b626d78f1c","block_type":"box","text":"it is unable to invest significantly or at all in IPOs may be lower than during periods when it is able to do so. In","page_number":63,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"fa4896a7-7241-4d61-ab74-75f2dbf495f4","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":63,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"8815b69b-8a3b-4885-a439-cff50a84587e","block_type":"box","text":"issued in IPOs are subject to many of the same risks as investing in companies with smaller market capitalizations.","page_number":63,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"fcb6c047-0530-4d02-be5b-efa75a465a42","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":63,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"b22bd38b-cc19-4536-9543-6c2e11d73a4e","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":63,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"1b418b90-c959-43e7-8156-af9695761c7c","block_type":"box","text":"initial public offering.","page_number":63,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"bda561b3-fc7a-4ceb-a2a8-fbc13c846db2","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":63,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"c7a8bdae-48b5-4ba7-b677-d59c2ce48951","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":63,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"14223924-1a8b-4ea4-ab7b-9b72daf82713","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":63,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"9a19b61b-61f3-4797-865d-dad220769974","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":63,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"7fb1a6ac-433b-401c-85b5-975e728dd83f","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":63,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"0a5da3a9-b42f-4b99-946a-59b9d8419fd7","block_type":"box","text":"are often traded in the OTC markets and may have fewer market makers and wider price spreads. This may result in","page_number":63,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"2027cb1d-4037-4d78-87d2-b70d50feae09","block_type":"box","text":"greater price movements and less ability to sell a Fund’s investment than if the Fund held the securities of larger,","page_number":63,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"68618f79-830a-4770-b738-a95ddb2a2cbb","block_type":"box","text":"more established companies.","page_number":63,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"ccaf4a15-a55b-40b4-9b76-66da060b2745","block_type":"box","text":"II-26","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a0a65c04-21e9-4c3e-80fa-158ed07379d4","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3393b760-ab7d-47f2-b6f5-c8005afc7eb9","block_type":"box","text":"For a discussion of the types of equity securities in which your Fund may invest and the risks associated with","page_number":64,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"30a7e3bc-2751-4a75-a809-3eaf45b86666","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":64,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"fe34ba44-11ec-4139-abec-6d7a7cb8bd88","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":64,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"315d22f4-9373-41d8-b196-fcee051ff2e2","block_type":"box","text":"below.","page_number":64,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"bedc5629-8c56-468a-905c-10b6dc405a3d","block_type":"box","text":"Real Estate-Related Securities.","page_number":64,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"cb799afa-9a40-401a-b4b7-81b547954dfd","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":64,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"2316f31f-858b-4412-abc9-4581c8587237","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":64,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"07dfd5bc-c6fe-488f-95e1-0f16701a98dc","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":64,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"dbb34bce-7162-4f0e-aa1f-3cc56f1437e6","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":64,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"302fb6a7-1896-434b-b316-34b8b097718b","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":64,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"782f8339-06f7-4231-88a7-19a66a59234a","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":64,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"9f182642-047e-422d-b177-2e916c623d5c","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":64,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"c9e2b4ec-cdfd-4faa-921a-8a524f22374b","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":64,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"c262d4b8-67f7-40e1-8c7a-3c823dbb36bd","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":64,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"d805e463-e8da-4e40-8415-44265a789147","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":64,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"97d6874c-4454-4b5b-9536-87f548463975","block_type":"box","text":"rents; investment in developments that are not completed or that are subject to delays in completion; and changes in","page_number":64,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"2e29a8ae-464b-4e89-b592-18826f2ba382","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by proper ty","page_number":64,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"12c38a1a-bbd7-44a4-88ad-c595ca62c199","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":64,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"e3e07a0b-b08f-42d1-b686-7bf92f7fcd98","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":64,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"bacd7065-f5b4-48ab-8016-92620d356283","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":64,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"e91202d4-e8e9-40f3-a8c2-0182512dfcdb","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":64,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"922e3b4b-df4e-4ace-8346-fa1c36ba9f32","block_type":"box","text":"of a default on securities the Fund owns, the receipt of such income may adversely affect the Fund’s ability to retain","page_number":64,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"cc9f29a7-dd3c-40d2-8253-1eacbb075fbc","block_type":"box","text":"its tax status as a regulated investment company because of cer tain income source requirements applicable to","page_number":64,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"bbf12bdc-6d59-4505-a0e5-3cdc77195a47","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":64,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"9a0c82f5-1ee6-44a2-abf7-148c4ed8e384","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":64,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"102e99cd-3abe-40c2-9490-e7d92a05a717","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":64,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"946a6ad7-7a92-4a02-bec7-5a46d291802d","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":64,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"276cee71-217f-4ba3-8520-dd6f5358f57b","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":64,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"054edc71-011f-4ddf-ad42-25dd1958b0ff","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":64,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"b3c98692-137b-4dc2-b604-486f22bb9c08","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":64,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"7c55dad9-7cfd-4a04-9406-84fe013ca8c7","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":64,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"c54a902c-6255-4543-8a41-8b64495b59b4","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":64,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"47b568ed-a4a7-42f6-80b6-e50a6a087867","block_type":"box","text":"Small cap and emerging growth securities will often be traded only in the OTC market or on a regional securities","page_number":64,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"0c99db1c-d5d5-4b45-9ac0-b39f4f097ac0","block_type":"box","text":"exchange and may not be traded every day or in the volume typical of trading on a national securities exchange. As a","page_number":64,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"b47908de-30a3-4145-a67d-4018ef479f95","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":64,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"a1251b37-0b2b-4e42-bc59-09e9f33eb349","block_type":"box","text":"make many small sales over a lengthy period of time, or to sell these securities at a discount from market prices or","page_number":64,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"87cdfd5e-daaf-48b0-9b9b-7c8ac5e6eba4","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":64,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"ee70f15b-da08-4f4c-8210-a840e942fc90","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":64,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"1706cb44-9cbd-4516-8c6b-4e6bf15c8748","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":64,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"7229a448-956e-4f8e-be1c-b2144771c7d9","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":64,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"5a926e70-fe36-4050-ad75-34e420f6783b","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":64,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"14c484c1-6a56-48f1-9167-3b1e5f6767c6","block_type":"box","text":"Fund management believes that relatively small companies may have the oppor tunity to develop into significant","page_number":64,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"15525f36-d6b1-47cb-a28d-6fdd400fa5f8","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":64,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"c3ecb353-11ba-44d6-b2de-2417e22d441a","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":64,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"87126090-12cc-48d5-944d-b39d444ddaef","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":64,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"0250ca27-1767-44da-be6e-fe175314dca5","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":64,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"8bdeed59-1d29-4b2b-92d9-b25aed6cbc7c","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":64,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"56842dbd-b18f-41d2-95bb-47b65dbb47a4","block_type":"box","text":"cycles.","page_number":64,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"cda57e34-af5e-4988-8db3-8d0f631b9343","block_type":"box","text":"Tracking Stocks","page_number":64,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"6802f0e5-0adc-4977-be29-6322a09bfeeb","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":64,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"4ef19cd9-f0da-4690-b8a2-d52e91a51811","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":64,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"e890d08f-4295-4446-9c9f-cfa3d2f8322c","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":64,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"8f1c0db2-ce1b-416d-bb20-ec527df4bdee","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":64,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"85ff6557-e357-417d-a923-65835b0c90d4","block_type":"box","text":"holders of the tracking stock may not have the same rights as holders of the company’s common stock.","page_number":64,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"99e4b575-8725-4829-9ea6-43de60dba67a","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":64,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"6a4e0007-7be1-4789-bb86-1052e1398a02","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":64,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"2d3bc668-c8db-4729-b4b8-72340890b033","block_type":"box","text":"debt of the issuer, usually a financial institution. ETNs combine aspects of both bonds and ETFs. An ETN’s returns","page_number":64,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"3c6d2232-51c2-4d98-9dd0-2aa8fd688af0","block_type":"box","text":"II-27","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d659c40f-8381-422b-8043-b3ab0e9ac62f","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"81d4360a-ac26-496f-af16-7cd70f4ce941","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":65,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"481caabb-6742-4c7d-8eb6-04d53f1c7069","block_type":"box","text":"expenses. Similar to ETFs, ETNs are listed on an exchange and traded in the secondary market. However, unlike an","page_number":65,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"ac97cb1c-5160-4e7b-a9dc-a2f219ea013e","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":65,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"9e99baa2-4f8e-4355-ab8e-a38bfbc856e7","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":65,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"208f1d28-7acb-485f-ba03-c9d59dc563cb","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":65,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"d2ee6cdc-aec4-4c88-8a77-1c8e73a45257","block_type":"box","text":"The value of an ETN may be influenced by, among other things, time to maturity, level of supply and demand for","page_number":65,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"dbc2a5d5-9e2c-4986-a9f6-b1a9bbdd4cc0","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":65,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"7b968ff5-6f18-4fae-94a2-9d754f44c4bd","block_type":"box","text":"per formance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":65,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"d17c67b4-e12b-460e-b654-75e687fcecd8","block_type":"box","text":"geographic events that affect the reference instrument. ETNs are subject to credit risk and the value of the ETN may","page_number":65,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"97032bc5-0396-420b-9b1b-276f4f90540a","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":65,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"0bf63471-9bd7-4e04-8d52-93aaa887bab6","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":65,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"b0b2d0b2-4490-4eda-b5ff-18561ea75cc8","block_type":"box","text":"ETN.","page_number":65,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"d07c5733-7090-47fd-9d76-eb738249475a","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":65,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"1e6c1a52-92ae-428c-b609-ab366b5b9ed5","block_type":"box","text":"ETNs also incur cer tain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":65,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"9880cd8e-eb7d-40dc-9fb9-fd4dda3b544e","block_type":"box","text":"may, at times, be illiquid and may be difficult to purchase or sell at a fair price. Levered ETNs are subject to the same","page_number":65,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"1981451d-6465-42cd-b980-123b6ea177a5","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":65,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"0003ee0e-df67-457b-ba7a-12e75b5f14fa","block_type":"box","text":"potential for loss is also greater. Finally, additional losses may be incurred if the investment loses value because, in","page_number":65,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"14724f27-70bc-49d4-b8a3-51e1282ab509","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":65,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"b82ae9e1-3894-4fa8-b681-5f8e6cd5fb9c","block_type":"box","text":"Because the return on the ETN is dependent on the issuer’s ability or willingness to meet its obligations, the","page_number":65,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"38f9a001-287b-486d-b288-e9caf354b386","block_type":"box","text":"value of the ETN may change due to a change in the issuer’s credit rating, despite no change in the underlying","page_number":65,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"c6e4e887-5678-475a-99f4-cbcdac4d666c","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":65,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"0ab06d22-8786-46f5-b7cf-2f19aec005c6","block_type":"box","text":"difference in price may be due to the fact that the supply and demand in the market for ETN shares at any point in","page_number":65,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"866b580f-5c06-4f7f-920e-1a960d5e1558","block_type":"box","text":"time is not always identical to the supply and demand in the market for the assets underlying the reference","page_number":65,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"2b683cab-7e3a-4471-adac-540666da30fb","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":65,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"08503292-86d2-4af9-95c7-f2280980f8a3","block_type":"box","text":"There may be restrictions on the Fund’s right to redeem its investment in an ETN, which are generally meant to","page_number":65,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"fd61f4af-c659-4eee-8de7-f7e5bcc598fe","block_type":"box","text":"be held until maturity. The Fund’s decision to sell its ETN holdings may be limited by the availability of a secondary","page_number":65,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"5e8004fa-309e-4fb5-a936-46a24786c0af","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":65,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"ed11df8e-2ac6-446b-b4b9-4787fd78710d","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":65,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"22ad63b9-b74d-44ba-b953-f6861015c8ae","block_type":"box","text":"uphold, how the Funds characterize and treat ETNs for tax purposes. The timing and character of income and gains","page_number":65,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"8f73282f-c514-4910-9d1b-0dbd89159d46","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":65,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"a6f0b555-adac-45d4-aedb-de4ff9f05dcf","block_type":"box","text":"Foreign Investments.","page_number":65,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"a7084c26-6ec0-4c0f-8c32-3d3decaf5ab6","block_type":"box","text":"Foreign Investment Risks.","page_number":65,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"4115d648-f705-40fc-af9b-00b0847349ec","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":65,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"46fade63-59f2-45cf-99fa-6f28a78355a9","block_type":"box","text":"located in emerging market countries. These securities may be denominated in U.S. dollars or in a foreign currency.","page_number":65,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"170df1f6-77bf-40a0-ada3-ebc9b9403da9","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":65,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"9e9db7d5-bf33-429b-903d-78c59d07df91","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":65,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"99ce5de5-b21f-4610-8191-aa4c0445d607","block_type":"box","text":"Securities issued by cer tain companies organized outside the United States may not be deemed to be foreign","page_number":65,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"9fd80c16-78a4-4e1d-8353-89660065365b","block_type":"box","text":"securities (but rather deemed to be U.S. securities) if (i) the company’s principal operations are conducted from the","page_number":65,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"e638026f-1895-440e-9306-e88548c28f60","block_type":"box","text":"U.S., (ii) the company’s equity securities trade principally on a U.S. stock exchange, (iii) the company does a","page_number":65,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"71c0029d-90bf-44ee-8e02-ee6597a5b71a","block_type":"box","text":"substantial amount of business in the U.S. or (iv) the issuer of securities is included in the Fund’s primary U.S.","page_number":65,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"fbd527c8-19c7-4e06-9a3b-c894fee32799","block_type":"box","text":"benchmark index.","page_number":65,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"fa82a3c4-e0b6-4260-9c20-0388314c9760","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":65,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"41958816-ffdf-4562-8fa8-3dd56f47a90d","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":65,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"9c7af721-3ea3-41f0-b737-0ac1506a5e6c","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":65,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"80c3526e-edf8-4041-9c52-9deb7828bddc","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":65,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"cc5585e5-3f9d-4929-b600-684e002b8726","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":65,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"c1392439-f2c8-406b-8659-ae1a08c17e02","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":65,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"83c0004c-b83a-4e69-96dc-dc8ac5811224","block_type":"box","text":"securities and zero-coupon securities.","page_number":65,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"6979b418-3182-4168-a7b9-6083a9c6d3ca","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":65,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"08f36c71-4078-47fe-a123-0e4e379be441","block_type":"box","text":"taxes.","page_number":65,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"dff08c3b-f45d-4a12-9701-a331a0113f2f","block_type":"box","text":"To the extent that the underlying securities or other instruments held by a Fund trade on foreign exchanges or in","page_number":65,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"f77122ba-d178-477e-9cfb-b0c2babb2006","block_type":"box","text":"foreign markets that are closed when the securities exchange on which the Fund’s shares trade is open, there are","page_number":65,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"11ba9d54-58f3-4aa8-a7bb-ddb9a6958aa4","block_type":"box","text":"likely to be deviations between the current price of such an underlying security and the last quoted price for the","page_number":65,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"4c109ab6-94ad-4480-8c51-54994d1d1b42","block_type":"box","text":"II-28","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ad408d27-cbba-4e7e-8f34-9e7fa2e34271","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cd852be3-32be-45f8-896f-48305485f8f2","block_type":"box","text":"underlying security (","page_number":66,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"d8c61528-5562-4163-b3be-d6c383974ca0","block_type":"box","text":"i.e.","page_number":66,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"d25902a6-9b71-46c3-ad06-2ac04fd37a81","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":66,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"13654b5e-0fc9-4b1f-96f9-667c40511868","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":66,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"50a0c091-d284-4daa-b614-c6d9cac7694a","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":66,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"dcbc9d1e-2493-40ec-8aed-e5c79b49951f","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":66,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"b222e9d6-0bdd-4a76-889e-ad6f6569e40a","block_type":"box","text":"Foreign Market Risk.","page_number":66,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"70342fbc-f340-47de-b646-c7400e4ce3af","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":66,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"36ee4b44-594b-4547-b169-6c2e889328cc","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":66,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"bdd809e0-8a95-4919-9138-18b7379ecbfa","block_type":"box","text":"always) per formed differently from securities traded in the United States. However, such investments often involve","page_number":66,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"2d32ed34-2684-47e9-bf75-d8a0e8cb8081","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":66,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"808764ba-be36-413a-a5e5-009fa42ea0e8","block_type":"box","text":"is subject to the risk that, because there are generally fewer investors on foreign exchanges and a smaller number of","page_number":66,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"48fdfe91-9f08-42e4-80ca-cdb93268a1d6","block_type":"box","text":"shares traded each day, it may be difficult for the Fund to buy and sell securities on those exchanges. In addition,","page_number":66,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"2f7fa876-a1ad-488c-aae7-b1b64bee3dbf","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":66,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"bf6e7cce-a716-4566-b553-a5559540bfcc","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":66,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"6f52b3c9-fa3c-4120-a45b-dd5af88ba055","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":66,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"611fb84f-5764-4c4f-922d-d4951cc4303f","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":66,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"25a2264a-2e37-4ca0-8375-87be5b24b288","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":66,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"eee6fed6-0aa1-4407-b256-5430c4b044f0","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":66,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"b5601db8-a8f1-48a0-9678-9e92c11c4f65","block_type":"box","text":"controls and/or sanctions may include the prohibition of, or restrictions on, the ability to own or transfer currency,","page_number":66,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"b5f295b5-08c2-4130-8490-3ab81bf2e9c7","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":66,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"6559d014-2403-47eb-8baf-5b77b7e81915","block_type":"box","text":"government, such as seizure of assets. Any of these actions could severely impair a Fund’s ability to purchase, sell,","page_number":66,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"dba39b51-e231-4521-bee6-fe60e42ff298","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":66,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"3d3fc780-bb48-4854-8f57-34382f09e21e","block_type":"box","text":"transfer the Fund’s assets or income back into the United States, and could negatively impact the value and/or","page_number":66,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"84991a97-efbb-4474-a06a-54c8929a6052","block_type":"box","text":"liquidity of such assets or otherwise adversely affect a Fund’s operations, causing the Fund to decline in value. Other","page_number":66,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"bb2fee51-e5dc-4d79-89e1-bb89118edef1","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":66,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"c55b9cd5-fe41-4dcb-81e5-25d66f1d0b64","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":66,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"ad143b8e-b88a-4cb5-b3c7-4fe9d7ba6892","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":66,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"3367b065-28a6-49a6-8a9c-d837d92cb9ac","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":66,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"07d1a8ce-e7e9-4433-acd3-4c4d92321e71","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":66,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"dc83431f-f1c5-4f92-81eb-1f9ad335ef6b","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":66,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"d7377bdd-683e-4762-8850-486d9c870ac5","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":66,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"729dace9-23b7-452b-8129-73b89382945e","block_type":"box","text":"Fund’s operations.","page_number":66,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"96584c59-065a-4d20-b11f-98b06b8f2b72","block_type":"box","text":"Foreign Economy Risk.","page_number":66,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"57a85ca6-a629-473e-94f5-31573f22628f","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":66,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"a4227c3d-98cd-4e73-9c4e-0aa7a888e796","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":66,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"be962b93-3d58-4685-9c34-cbe412427ed3","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":66,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"88a5f68a-629f-494a-9887-3c98519a08af","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":66,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"cc63f00e-2c80-4aa8-8712-3777b8b049d8","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":66,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"029880c7-3ff2-4907-a54d-ea6eac023dc2","block_type":"box","text":"measures.","page_number":66,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"9912b4cb-b9c8-405b-8049-92cfbd0aa3dd","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":66,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"9facba12-5567-40c0-94ff-0dfde19a09ae","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":66,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"965d00d8-2d1b-4d02-bb28-c22171770ade","block_type":"box","text":"interest in foreign currencies, the value of a Fund that invests in foreign securities as measured in U.S. dollars will be","page_number":66,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"4f44c625-ca54-4c09-9722-9079342d4be7","block_type":"box","text":"affected favorably or unfavorably by changes in exchange rates. Generally, when the U.S. dollar rises in value against","page_number":66,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"e40e0a7f-c5c9-42e7-bfbb-91394d66cecf","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":66,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"913ebb19-6d0c-4ba1-8d9a-96707062c688","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":66,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"6f3b6bde-d26c-4465-b580-14244bac0042","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":66,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"a18b124f-7eb4-49e8-8d81-fc31ef1aa3c4","block_type":"box","text":"risk,” means that a stronger U.S. dollar will reduce returns for U.S. investors while a weak U.S. dollar will increase","page_number":66,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"d4c32270-ffce-491d-b318-99f964920e3f","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":66,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"79f78dfb-05b0-4cc9-a6f3-ade329eccd57","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":66,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"050e3d2e-8587-4dfd-8d88-fb9227852366","block_type":"box","text":"United States or abroad.","page_number":66,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"35e66a01-136c-4d11-8343-b72cc331415f","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":66,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"1bf7682d-d90c-42be-98db-cb91a3768e24","block_type":"box","text":"Many foreign governments supervise and","page_number":66,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"983aeac3-11bc-430e-9254-fc1c02bde99c","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":66,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"37ef0122-aead-45a6-ad76-0e4e241bca9d","block_type":"box","text":"not have laws to protect investors comparable to the U.S. securities laws. For example, some foreign countries may","page_number":66,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"9f0a3f94-aa63-455a-ae07-7a3d137a639e","block_type":"box","text":"have no laws or rules against insider trading. Insider trading occurs when a person buys or sells a company’s","page_number":66,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"891a6dd9-537b-412d-879f-58788fd83d10","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":66,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"cea5755c-1f94-4c97-a471-cb41f7550ca3","block_type":"box","text":"necessarily the same as in the United States. If the accounting standards in another country do not require as much","page_number":66,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"516dfa80-fbd9-4cc9-8391-d5062d3d5d77","block_type":"box","text":"detail as U.S. accounting standards, it may be harder for Fund management to completely and accurately determine a","page_number":66,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"527348e8-2244-472d-94e8-e037a279f711","block_type":"box","text":"company’s financial condition. In addition, the U.S. Government has from time to time in the past imposed","page_number":66,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"2ebd54b4-6710-4624-ac8e-20be0022ae0c","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":66,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"e4c2a601-64d5-476e-88ef-1aac348fbabb","block_type":"box","text":"restrictions should be reinstituted, it might become necessary for the Fund to invest all or substantially all of its","page_number":66,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"4c0f97a7-e6ca-425a-b494-a6e4e24db963","block_type":"box","text":"II-29","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"925a259e-87bb-4023-a532-f49fd0cdb544","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"90513724-71a5-4867-9410-094c157f3960","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":67,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"eb61a38f-178a-4ab9-a771-a2b2cdbee748","block_type":"box","text":"higher in foreign countries than they are in the United States. This reduces the amount the Fund can earn on its","page_number":67,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"49542f3d-470a-4bef-8c0c-728a9e015bb6","block_type":"box","text":"investments.","page_number":67,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"4f415b5b-a494-4420-8122-e43bd469c628","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":67,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"77ae2231-2f71-4800-9005-0cbef763a025","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":67,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"bbff3fd8-ed12-456c-9a92-362f4e051765","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":67,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"0c097d91-b438-4b6e-a411-206c142a20b3","block_type":"box","text":"organized or new to the foreign custody business. In addition, there may be limited or no regulatory oversight over","page_number":67,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"ffa55093-7ee8-408c-b7c3-a9c58fbe28ba","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":67,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"83d3f1b0-f7a8-48c9-a093-5957230d2e32","block_type":"box","text":"bank or depository or issuer of a security or any of their agents goes bankrupt. In addition, it is often more expensive","page_number":67,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"efc3bf47-ca17-4f97-8392-4f40309cf29e","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":67,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"6ad1b981-0e74-45eb-acfb-0e651b8943cc","block_type":"box","text":"expense of investing in foreign markets reduces the amount a Fund can earn on its investments and typically results","page_number":67,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"29036a33-0fe6-459b-a2bd-eda97a5f3cb9","block_type":"box","text":"in a higher operating expense ratio for the Fund as compared to investment companies that invest only in the United","page_number":67,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"b5514f5d-8cdc-4002-bad8-26d29427c4ff","block_type":"box","text":"States.","page_number":67,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"5b929026-a590-4136-a649-b9701a4dd070","block_type":"box","text":"Publicly Available Information.","page_number":67,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"45135a24-b29f-413a-aac0-cc917f01ae2a","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":67,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"95552ba3-5cc7-4fe6-918c-48e0a2e99649","block_type":"box","text":"than is available with respect to U.S. companies. Most foreign companies are also not subject to the uniform","page_number":67,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"343e8a0c-9182-49c3-8540-1a6919dfb9ae","block_type":"box","text":"accounting and financial repor ting requirements applicable to issuers in the United States. While the volume of","page_number":67,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"6d2d7751-ead8-40dc-a90a-7f52d008b594","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":67,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"90154776-551c-4506-b475-7f4f66f98077","block_type":"box","text":"the New York Stock Exchange. Accordingly, a Fund’s foreign investments may be less liquid than, and their prices may","page_number":67,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"fa985827-f7ef-4ba7-886a-e08ce1193d27","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":67,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"95937d23-383e-49ee-83cd-c2fe2d3d8dd5","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":67,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"5dcf09ce-d899-4d67-bae1-7cbee0cfa218","block_type":"box","text":"United States.","page_number":67,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"06d620a4-b790-4dc9-9511-96e3d2972848","block_type":"box","text":"Settlement Risk.","page_number":67,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"3e3c9215-b9fd-4da1-97f8-0a596850eef4","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":67,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"6f86638b-96a2-40b0-bab9-8338c8c7905e","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":67,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"c49ffe0e-13cb-4fa7-8a6f-3387f58ced4a","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":67,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"c28bd34a-06a4-40a8-9e48-ce66d563eaec","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":67,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"c8e442c3-a4ea-47f2-a20b-c795e3e64343","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":67,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"33a0bbb9-df52-4ce2-a3ac-0c346505471f","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":67,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"581c9f2f-f8d7-4b40-a89f-e4ce13747c52","block_type":"box","text":"Settlements in cer tain foreign countries at times have not kept pace with the number of securities transactions;","page_number":67,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"5a365781-55d1-437c-8841-a2c973604af5","block_type":"box","text":"these problems may make it difficult for a Fund to carry out transactions. If a Fund cannot settle or is delayed in","page_number":67,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"607b4b41-e6d5-489c-838b-9f67c4da3c26","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":67,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"b3b87bde-c75b-4fc3-8709-eac9eff7284d","block_type":"box","text":"uninvested with no return earned thereon for some period. If a Fund cannot settle or is delayed in settling a sale of","page_number":67,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"c6780d48-2e66-4742-817f-b87a40e50e12","block_type":"box","text":"securities, it may lose money if the value of the security then declines or, if it has contracted to sell the security to","page_number":67,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"b74e074a-9d3a-40e2-811e-3728b72b8675","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":67,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"b7cdcfc3-7580-4f41-91f3-63657a1aa305","block_type":"box","text":"Because of uncer tainties in the operation of settlement systems in individual markets, competing claims may","page_number":67,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"91a97ed6-802a-4f9b-9417-ed0813dbee18","block_type":"box","text":"arise in respect of securities held by or to be transferred to a Fund. Compensation schemes may not exist or may","page_number":67,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"69c60824-321a-4254-9a5d-715bfea8528d","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":67,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"32bb9712-4aa3-4f76-ab8d-a3e4943a7134","block_type":"box","text":"Sovereign Debt.","page_number":67,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"a4000a40-7d97-4099-8564-22fe09b25bbf","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":67,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"93c4f3fc-ed37-4920-9409-8d47b6d78b7e","block_type":"box","text":"controls the repayment of sovereign debt may not be able or willing to repay the principal and/or interest when due in","page_number":67,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"053b376b-ba8f-4b44-b9c4-caf6b099de8e","block_type":"box","text":"accordance with the terms of such debt. A governmental entity’s willingness or ability to repay principal and interest","page_number":67,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"385a7acd-1d50-46cd-b1f0-8f02c92233b6","block_type":"box","text":"due in a timely manner may be affected by, among other factors, its cash flow situation, the extent of its foreign","page_number":67,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"1e7caeb2-4c79-4a92-8e8e-f02807d894c1","block_type":"box","text":"reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt","page_number":67,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"f233cff5-7a80-4560-a008-dc26575562eb","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":67,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"e0dab613-2c8e-4911-8c46-ba542103e962","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":67,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"f72bba68-073a-4219-804c-4af88a14beaf","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":67,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"ff37f5e6-d356-403f-b1b8-683a32fbc76f","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":67,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"0a14eb3d-37aa-4e22-bc3c-cc952cc32057","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":67,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"88dcdde9-e641-4a46-89f0-211fad6a6128","block_type":"box","text":"economic per formance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":67,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"d465a1be-6b52-4ac6-aea8-460d895d08af","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":67,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"c5059f3b-d28c-465e-aefb-cef3071dbe2a","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":67,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"4716c6d7-4e03-474f-ba54-855fdea18be0","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":67,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"5f365a84-2e93-4e89-8066-bfba362ec2ab","block_type":"box","text":"debt.","page_number":67,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"c4233e15-b5e1-4a2b-af96-08b6d0208bcb","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":67,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"9546ebb4-38f5-4d09-9000-e4641aa93165","block_type":"box","text":"loans to governmental entities. In the event of a default by a governmental entity, there may be few or no effective","page_number":67,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"4996b342-b2e5-4c0b-bef6-c5ce04bef316","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":67,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"8bb1cad7-3e0d-4d44-adb4-f4d692a4d159","block_type":"box","text":"II-30","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"105d2a48-0b00-4ea6-962d-4b35e1ecc3da","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c8e976d4-63cb-42ff-b99d-fd7b0b8c6ee8","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":68,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"7df02592-ce9e-4513-8967-a755fb14e5c8","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":68,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"4cbb878e-b6c7-461e-93cd-37b6ca95434c","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":68,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"201e05ae-5327-4214-b871-7a2ff1db62f0","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":68,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"2a739ac3-3257-45c8-86e3-64ba0f5fced2","block_type":"box","text":"refund is within the control of the tax authorities in such countries. Where a Fund expects to recover withholding","page_number":68,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"ecf0023f-fd6f-4cce-bcb0-9e12b9abe0ac","block_type":"box","text":"taxes, the net asset value of the Fund generally includes accruals for such tax refunds. Each Fund regularly evaluates","page_number":68,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"2ea45aab-eb86-4587-a5c2-92502744b0da","block_type":"box","text":"the probability of recovery. If the likelihood of recovery materially decreases, due to, for example, a change in tax","page_number":68,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"5f055be7-f965-4342-b738-dcb3a920da62","block_type":"box","text":"regulation or approach in the foreign country, accruals in a Fund’s net asset value for such refunds may be written","page_number":68,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"84789413-95b2-481d-902b-3b4f20c5b05f","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":68,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"74c9fdfd-cd1b-44dc-87de-eabbbc788470","block_type":"box","text":"accrual is written down will bear the impact of the resulting reduction in net asset value regardless of whether they","page_number":68,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"35ddf19d-1998-4589-aaef-4e4515b72c10","block_type":"box","text":"were shareholders during the accrual period. Conversely, if a Fund receives a tax refund that has not been previously","page_number":68,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"50653a38-693f-4d1b-ab60-7cc91871d6ca","block_type":"box","text":"accrued, shareholders in the Fund at the time of the successful recovery will benefit from the resulting increase in","page_number":68,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"c3c997e7-55ff-43c1-92e5-56618487227f","block_type":"box","text":"the Fund’s net asset value. Shareholders who sold their shares prior to such time will not benefit from such increase","page_number":68,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"456d6635-e2ac-42e3-8431-e5a122c07a65","block_type":"box","text":"in the Fund’s net asset value.","page_number":68,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"993fbb33-808d-4f7a-9a03-b712b7bf3cbb","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":68,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"fee65d2e-a268-47ea-9ef6-f5a781d506f7","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":68,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"0a4ac617-6d4a-4261-8846-169d87ef77e8","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":68,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"35afd25e-8de5-4227-8dd1-9997ed3cef86","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":68,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"f5db2ab6-b0b3-424b-99e5-54e783415330","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":68,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"3f7f0930-011c-4bb2-9ad1-e3472eef3b87","block_type":"box","text":"slowdown in the United States may have a material adverse effect on a country’s economic conditions and, as a","page_number":68,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"995530dc-e226-495e-b8ba-297b995ceb0e","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":68,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"7c05bb33-0a61-44bc-b523-66fa44f8bab6","block_type":"box","text":"of interest or principal on U.S. Government debt, such as reaching the legislative “debt ceiling.” Such non-payment","page_number":68,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"2353d8f6-dc16-4647-b59f-b190206e3c0c","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":68,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"5261a04d-f19b-486b-a576-484c1a052565","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":68,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"2c70cf21-2ffc-4d2e-943e-c68231d3fe90","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":68,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"29f5ec0d-ffb5-40e8-8f80-8fdddcad9d01","block_type":"box","text":"If these relations were to worsen, it could adversely affect U.S. issuers as well as non-U.S. issuers that rely on the","page_number":68,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"01738be5-f807-4191-9946-9c4ecf4c68ec","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":68,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"1cc87957-1013-4555-bd8b-136edd784f4e","block_type":"box","text":"trends were to continue, it may have an adverse impact on the U.S. economy and many of the issuers in which a","page_number":68,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"45067d74-e08a-4708-a07e-0292b398f09c","block_type":"box","text":"Fund may invest.","page_number":68,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"ea664a9f-8398-4754-85f5-56d4b0ff0e56","block_type":"box","text":"Funding Agreements.","page_number":68,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"ce892177-b5d7-4805-8876-8face802f4ff","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":68,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"2c6ae8b0-dfe9-48d0-ad52-fa298afa0b8a","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":68,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"78736232-e4f0-4642-b1f2-dd08b2cc90a5","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":68,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"9b1183a2-5606-47b5-89c7-da6d00d5756a","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":68,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"76e3699d-4b1d-453a-a980-729261a60e14","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":68,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"bbe8782a-9d9a-4992-9a3f-ca8da2328837","block_type":"box","text":"general assets of the insurance company, and the contract is paid from the general assets of the insurance company.","page_number":68,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"9136b513-1510-4965-9b54-7cc174cb19f1","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":68,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"3e3d4830-a379-4f79-bee7-95affa4a0c8c","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":68,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"4b56bc16-1960-4c5b-9adb-3bce5c2d222d","block_type":"box","text":"Guarantees.","page_number":68,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"47937da3-8205-4bde-8b1f-ec4b38f95462","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":68,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"09f51b50-310d-4d48-b75a-9286336f1dd1","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":68,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"b1ee7857-bbc9-4f84-8051-011f06109c5a","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":68,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"d61b6f02-49c9-48ac-be91-5d38ffa5f470","block_type":"box","text":"Illiquid Investments.","page_number":68,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"52b5f11b-c961-4c15-b4b4-501c7020565c","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":68,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"aeddda36-f181-4d3d-9e69-cb1ee7fc4ff4","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":68,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"4c5feb32-d4d5-443d-b72f-ab501664d24f","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":68,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"5bfbdfe4-8fcd-4c66-bd92-a306c7cf945e","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":68,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"31648e9b-2281-467e-aead-685bcc645d40","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":68,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"d180baa7-0ba1-4f00-a6ad-5c8dbcedd9b7","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":68,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"85a60880-afbb-4353-9411-8cd0731b9916","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":68,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"48e06e10-0323-4999-a4ad-64838985d7b4","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":68,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"57c34003-e8d6-488a-8b60-70413dfaa502","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":68,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"cf7a2e1b-2a18-40ee-98f4-79835a4de259","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":68,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"63e17bcd-2ee6-4afe-b5ec-36df24ec560d","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":68,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"2dcbc6e2-ce86-49f2-9819-efe45774b77b","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":68,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"ab0d8cfe-2fa5-4397-8e78-e03cd2dae385","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":68,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"3098b8ec-76b6-4ed5-8afa-163ddb7edb96","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":68,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"2696bb58-3867-4fec-8d7d-78c3e4ae8142","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":68,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"9c738f79-73b4-4b84-af5a-214292dfb246","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":68,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"91208219-9c20-402f-83b8-7e90f56b3fea","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":68,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"449011c5-d7cd-4d90-b325-f6d1bf3abf35","block_type":"box","text":"II-31","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"47e75221-e52d-4309-8400-6dbbe0baab06","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3a8065f3-9767-44f2-92af-d2559188443a","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":69,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"3320d7df-4473-45d2-a724-db7b2fc09bf3","block_type":"box","text":"shor t-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":69,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"5aab4011-741b-4211-8319-eca558390b05","block_type":"box","text":"Index Funds.","page_number":69,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"1da202e0-4244-470c-87dd-fc52a23de57c","block_type":"box","text":"Cash Flows; Expenses.","page_number":69,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"3a8e2525-ae0a-4f18-807c-dfb411bf7eb7","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":69,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"126bebf8-3e42-47f6-b51b-e34414eca1eb","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":69,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"12f4d0f9-a123-4c75-a9de-7ba319e442d1","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":69,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"d1dfbe91-45ff-4fc7-8eb4-c38b0091f37c","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":69,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"90cc46bc-265e-4d85-b7d9-4c9c4aef354c","block_type":"box","text":"the investment per formance of each index is a hypothetical number which does not take into account brokerage","page_number":69,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"30e46a18-fd55-49b1-a8ce-cc21a6a7686e","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":69,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"044da050-4d53-41c9-9e33-15b976573908","block_type":"box","text":"(","page_number":69,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"4de62054-9aec-4f76-b9df-6b8708717608","block_type":"box","text":"e.g.","page_number":69,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"668cd479-f30c-4d19-8582-5b0f53abe4a6","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":69,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"f371c401-0999-4f05-8a27-2f893153c36e","block_type":"box","text":"replicate the total return of its target index, the Manager generally will not attempt to judge the merits of any","page_number":69,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"14905d8d-d0c3-48c8-ab4f-69b97f1ab880","block_type":"box","text":"par ticular security as an investment.","page_number":69,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"4213ac7a-8590-4990-aba8-3e4af8158e2e","block_type":"box","text":"Tracking Error Risk","page_number":69,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"81cdc845-b605-4c4e-af11-8785bd134843","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":69,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"f565759f-eb8f-4e80-8f6e-3c90965da32a","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":69,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"fc0cc07f-4481-474d-b057-50986dc819b8","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":69,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"29790e0f-f10c-4e91-bf47-480f6daf2f3a","block_type":"box","text":"applicable, differences between a security’s price at the local market close and the Fund’s valuation of a security at","page_number":69,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"f9bce5af-0e3d-49a4-a8f0-85ef1eeb8b72","block_type":"box","text":"the time of calculation of the Fund’s net asset value), differences in transaction costs incurred by the Fund, the","page_number":69,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"12d18482-fd7d-4000-8ce1-f0b88195af33","block_type":"box","text":"Fund’s holding of uninvested cash, differences in timing of the accrual of or the valuation of dividends or other","page_number":69,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"3d1be05c-1687-40e3-a39f-8c71ab5f3248","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":69,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"ef5263ca-1f13-4c39-b0b5-0559b5fb265a","block_type":"box","text":"minimize the distribution of capital gains to shareholders, changes to the Underlying Index or the costs to the Fund of","page_number":69,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"e0bbe527-1126-4af9-81a8-88fb1ee01a67","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":69,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"08cdb305-83fa-4945-a589-f2eb8cc4e985","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":69,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"74ce2125-e55f-4dc7-9d5e-2963e094a203","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":69,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"aeea082b-14f0-44ef-b844-6feadb67945b","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":69,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"848f8dda-af05-4e5c-b4ab-0155ad46ec96","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":69,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"adbc001b-ab7f-4068-bd99-e21507d9875c","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":69,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"f9b2ca8f-12cf-46a3-8794-6f62582266b6","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":69,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"5dff2c25-aa0e-4065-a99b-8b491cb3c3b7","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":69,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"7130acff-a4a6-4059-937b-60afed409219","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":69,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"6ab45b06-3604-4e9b-a527-14c1463357ff","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":69,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"db737cda-a847-458c-9b9a-6025759bc7da","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":71,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"a8382ab2-08ee-436b-a641-d65311cdf4f1","block_type":"box","text":"other product or person into consideration in determining, composing or calculating a Bloomberg Index.","page_number":71,"box":{"x":69,"y":75,"width":735,"height":11}},{"id":"38719169-8d8e-4937-b536-59f79328898f","block_type":"box","text":"ICE BofA Indexes.","page_number":71,"box":{"x":102,"y":98,"width":124,"height":9}},{"id":"e1cf790a-7d1b-4d78-920f-6d86cd4e7da8","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Intercontinental","page_number":71,"box":{"x":233,"y":98,"width":670,"height":11}},{"id":"cb8c7581-8789-4462-8c04-afc2784436ac","block_type":"box","text":"Exchange, Inc. and its affiliates (collectively, “ICE”) or Bank of America or its affiliates (collectively, “BofA”). BofA is","page_number":71,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"935c5d7f-2a76-4319-9da5-e1f3f0d92aa0","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":71,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"d0e3df5b-41b4-4193-82e4-420b93aec453","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":71,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"bb7da14a-b898-4855-9ebc-bd50270906d6","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":71,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"b3953e50-19e2-4185-8e83-2728f2b1b5a9","block_type":"box","text":"completeness, or otherwise.","page_number":71,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"69bd7afc-6a11-4aa0-9256-6ae74bcf583f","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":71,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"721dd0d5-4f1e-4cd6-afb3-ba98739dfc8a","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":71,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"3fd79c07-6fea-4182-9f2a-c6eae8f7228b","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":71,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"41f5550a-8de9-4944-8cd6-36c4baaadab6","block_type":"box","text":"Indexed and Inverse Securities.","page_number":71,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"b0d50e85-c72e-49b9-8989-125e84dc0572","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":71,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"37cd2398-3363-4e84-bd85-bc76a4a74337","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":71,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"d57fd644-5a97-460d-aead-b61156ee3c9a","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":71,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"000eb14f-f3ae-4d7c-93c9-0bd212af3182","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":71,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"114e3860-0dad-49cb-9c84-cfc49445d293","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":71,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"2fc46fe4-75f0-4041-9f97-1a0cdeadd855","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":71,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"1e4c0212-eb4e-4459-ab75-087b93ee44a8","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":71,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"1fe855f6-c517-4d42-b83b-cde07e66e933","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":71,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"5dcca567-f51a-4905-b0bf-800cffd1a6a2","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":71,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"7ac71704-8a0e-4af3-8c3f-4d8b0264a2e7","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":71,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"9336598f-b3a6-4ed5-8359-b36e0d6bbe59","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":71,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"f64a82c7-c5cc-42eb-878a-f157fa3b2021","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":71,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"fc555621-6f45-4e9a-bb69-c450750ecfab","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":71,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"4d56e3f9-d561-49a5-883f-61c4fc539ac9","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":71,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"7a327bf3-3523-4f00-b236-515f5d5734d6","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":71,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"3062a728-a7d2-4ea6-a2a1-397f50bab840","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":71,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"7a46768c-1832-4f5a-9990-89cea95973e5","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":71,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"59b03f67-7993-4f81-af39-ff3246279023","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":71,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"eea7aa8a-3902-49d7-a4d0-0283081522ed","block_type":"box","text":"por tfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":71,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"b49ca966-07a5-4dac-9510-9caa161a6bf3","block_type":"box","text":"por tfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":71,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"59bc80ce-8f6a-4df9-b2bd-f0eb67202e32","block_type":"box","text":"Fund may invest in indexed and inverse securities for hedging purposes or to seek to increase returns. When used for","page_number":71,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"1200e102-265f-43f6-833c-56d9938f09d4","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":71,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"9b688b1c-d63b-411f-80d8-518927714f33","block_type":"box","text":"includes a contingent liability, in the event of an adverse movement in the underlying index or interest rate, a Fund","page_number":71,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"ca54d34d-c578-4168-8488-9650c25f4117","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":71,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"6f76c7fb-223f-49ac-bf72-05f10d194ef5","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":71,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"ce9f28c9-4f21-46ba-90cd-a807fa78ff8d","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":71,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"0cb3f4b6-50fc-4ac1-b877-3a6fbfe1e729","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":71,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"7b6934de-adaf-4aa2-978a-0a4cb1ecf016","block_type":"box","text":"when shor t-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":71,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"37baebbe-ca41-4d49-b309-b30ce4f96231","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":71,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"43b4dc83-821e-4451-ae7e-2d96d9b506c2","block_type":"box","text":"Inflation Risk.","page_number":71,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"9d98756e-995f-4eb2-a879-df9a7f88c8d9","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":71,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"7f7f6933-41a8-4187-a156-1ea9788f98e3","block_type":"box","text":"value of assets or income from investments will be less in the future as inflation decreases the value of money. As","page_number":71,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"81962a27-4ee2-445d-8c3f-41bd81b7e845","block_type":"box","text":"inflation increases, the present value of a Fund’s assets can decline as can the value of a Fund’s distributions.","page_number":71,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"43100bf0-e1ce-4ddb-a1b4-8f4d30577b73","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":71,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"ff836744-70a8-4582-9ec0-d1e20dbc74c3","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":71,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"f057471f-2c8a-40dd-a136-7d4b02dbf4ba","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":71,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"6d7e8269-2158-4b50-bbba-4531ab5e15d8","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":71,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"384739e4-efee-4c2c-a633-904dff5e983a","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":71,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"02c933fc-ddd0-42e0-8363-c4d9150f8f8a","block_type":"box","text":"availability may be limited and a Fund may not be able to buy any shares at the offering price, or if it is able to buy","page_number":71,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"b23f3444-9ea4-4080-80fe-fb539b55f251","block_type":"box","text":"shares, it may not be able to buy as many shares at the offering price as it would like. In addition, the prices of","page_number":71,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"cf0e6827-a195-4426-a7f0-a99a60127166","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":71,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"fc537351-5641-4f26-8cb8-a8efe9a633be","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":71,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"3f6ac4d1-665f-4752-a584-4e74f1141b12","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":71,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"47f0d3e7-ada3-453c-b6ce-4f86cdd2299d","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":71,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"a943ceb2-a349-444f-a57d-af85f17b1778","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":71,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"b2bbde0c-a42d-4561-9f71-1eff6f2ca84f","block_type":"box","text":"II-34","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6d76786b-36af-4372-be47-e8b68d77ca01","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"91c55742-a4d0-4707-9c9d-9c91b5a29263","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":72,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"b8eca494-deed-4033-a43e-d4d1d0f1129f","block_type":"box","text":"Fund during periods when it is unable to invest significantly or at all in IPOs may be lower than during periods when it","page_number":72,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"33efc50a-9ea2-4333-8a33-4e66758de8f3","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":72,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"82893d0c-bfe2-4ac7-9878-910910bc6fb8","block_type":"box","text":"decrease. Securities issued in IPOs are subject to many of the same risks as investing in companies with smaller","page_number":72,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"bec5de24-307d-4d8a-b618-578babc795b0","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":72,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"8e9b0b10-b350-4302-882f-f905e465c7e0","block_type":"box","text":"be available for very limited periods.","page_number":72,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"c8d6b6bf-aedd-4894-9c38-f5646ea755fc","block_type":"box","text":"Investment in Emerging Markets.","page_number":72,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"82ce22c5-9937-46b4-8a52-512238ac51b2","block_type":"box","text":"General.","page_number":72,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"872adb21-0273-40e0-9689-cc61339afac4","block_type":"box","text":"Cer tain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":72,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"a5188a6c-a6a6-4434-b64c-ca038d1fe8c3","block_type":"box","text":"markets. Unless otherwise provided in a Fund’s Prospectus, a country with an emerging capital market is any country","page_number":72,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"111b4b46-05ce-4cfd-a2c1-6233feaa0579","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":72,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"f0f419d6-679b-4606-b91c-dba1811457ed","block_type":"box","text":"the International Finance Corporation, or determined by the World Bank to have a low, middle or middle upper income","page_number":72,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"6c7bd168-9942-4335-925d-fb3718313698","block_type":"box","text":"economy; (ii) classified by the United Nations or its authorities to be developing; and/or (iii) included in a broad-based","page_number":72,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"c49206dc-2882-462c-9217-0102c1f27672","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":72,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"fc42d05c-86d8-4bb1-91c9-812d6605efb8","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":72,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"ef09f990-5aba-4d21-bdd6-44fa016a415b","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":72,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"fa211e0d-910d-4c18-b50f-6c764fe7a72e","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":72,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"f1a5ee15-8ac2-4eba-a773-b654b7b287d1","block_type":"box","text":"such as (i) low or non-existent trading volume, resulting in market illiquidity and increased volatility in prices for such","page_number":72,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"ddeed011-18ae-4939-a153-1f6324f81cad","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":72,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"9e1342a9-be51-47c5-8082-14fb130d6d35","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":72,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"bbdf6144-60ae-486b-8d23-1fc503dc4c7a","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":72,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"4a6ad31b-6fca-498c-8030-52d39d04fe8c","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":72,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"f148317c-00e1-4cfc-821c-dc206f20f6cb","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":72,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"698f8662-626b-44f6-8eaa-fda5834ce232","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":72,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"51b02757-0589-4637-b6ff-b7c0a373481b","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":72,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"7bb54e0a-570d-4d01-b98f-0de9e2fc9cdd","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":72,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"5f6f5ac7-04e1-4ea2-aee0-0cb058cbf2b8","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":72,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"5a03043e-9cb7-4c1f-84c6-75e94b0dd5d1","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":72,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"57c0bae0-2f4f-41c7-941d-75e50f1d1519","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":72,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"1647ca31-eb86-4b9a-bb87-509fcef0b33d","block_type":"box","text":"developed countries. In such a dynamic environment, there can be no assurance that any or all of these capital","page_number":72,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"4236392f-1cbd-43d1-8c1a-7a0b933efb81","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":72,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"3c6443d2-42b9-40dc-b538-3b77982b3a14","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":72,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"adf842a7-a266-41ef-9bdb-cdfa1012170d","block_type":"box","text":"fully settled. There is no assurance that such expropriations will not reoccur. In such an event, it is possible that a","page_number":72,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"16513348-681c-49ac-9e19-0c1f87317366","block_type":"box","text":"Fund could lose the entire value of its investments in the affected market. As a result the risks described above,","page_number":72,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"60f33abe-5959-4963-a732-e0f6a72b44f0","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":72,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"3f6f5c47-141e-4c8b-8dc2-1c7950cd94c9","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":72,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"5a95ce38-f6ea-476a-ace2-223ba82bd017","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":72,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"9f304f3d-aacc-449d-8017-74de5f3d14c0","block_type":"box","text":"the limited volume of trading in securities in these countries may make investments in the countries illiquid and more","page_number":72,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"b1977e16-e570-436d-97b7-1c455e0a61cb","block_type":"box","text":"volatile than investments in more established markets.","page_number":72,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"04416869-7eee-4506-b298-939aa71e9a50","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":72,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"9e9cc885-61c3-4365-a8dd-1383789447ec","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":72,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"e786ab8e-fb81-4c4c-b4d9-d1c071fb96d7","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":72,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"d5efe245-0992-4232-bff8-7d55a6b62402","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":72,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"505b7fd3-1dda-4dac-91b6-125192f2314c","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":72,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"02d0a41d-ef02-432c-8406-3f249e7bf9a5","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":72,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"8757d495-aeec-4ec3-818e-b368665e3723","block_type":"box","text":"shares may be held by a limited number of persons. This may adversely affect the timing and pricing of the Fund’s","page_number":72,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"3e2eb7f4-6428-446a-ba2e-a9141fefe4a6","block_type":"box","text":"acquisition or disposal of securities.","page_number":72,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"6a5b8f2f-ccfa-42a2-a7d7-543f32f00157","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":72,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"853ca307-97f4-4a7f-ac18-350381e846eb","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":72,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"599139c9-7f5d-48ab-a50a-1ba276f543b9","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":72,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"f9405531-b2bf-4cc3-9e9d-d895a0dc01c0","block_type":"box","text":"negligence, undue influence being exer ted by the issuer or refusal to recognize ownership exists in some emerging","page_number":72,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"684041bf-8385-4401-8709-d685054b7b2b","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":72,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"89e84f2d-609d-436d-91a3-d025e56d9bcd","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":72,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"29e6f3b1-ea58-4524-beff-be98f60de7b1","block_type":"box","text":"II-35","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"16d84265-bb94-4c5e-9ab2-3e632072c7d3","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3eea4b02-b35f-4164-ae6d-642bbe493233","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":73,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"a5d0ba54-c175-41db-93bb-eade1c2f4cc6","block_type":"box","text":"countries may be on either a currency hedged or unhedged basis, and the Funds may hold from time to time various","page_number":73,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"0833f25d-ff90-49c4-9b5b-9d3e93b0830f","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":73,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"8eca881b-2ed7-475e-8a53-0d52b50de1fe","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":73,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"09ac3ff0-dccd-4c04-9ce7-b37da287778c","block_type":"box","text":"to seek to protect against changes in the level of future exchange rates which would adversely affect the Fund’s","page_number":73,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"d4a05f10-f6e4-46af-8531-13f6e336c49d","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":73,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"1e0c844b-9d62-4a65-948c-97931ea85c3c","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":73,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"24733061-0ded-4f3a-8236-d79203469dcd","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":73,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"160d03f8-1e85-4a63-a68e-35be1966111b","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":73,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"41a3966c-b877-4a67-80be-add55aa0904e","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":73,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"0f74c716-8317-4706-a0b7-dc352cff4774","block_type":"box","text":"additional or specific risks. Cer tain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":73,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"e79994de-2a1f-461c-a331-bacce13ead5e","block_type":"box","text":"these markets, there is a high concentration of market capitalization and trading volume in a small number of issuers","page_number":73,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"2896a2a1-5b03-429a-906f-90c6889c6d00","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":73,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"0332b044-2d13-422b-b43f-62ff488857a6","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":73,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"f3f09d86-be84-4fe2-b485-08ae91cfa235","block_type":"box","text":"region such as in Japan and Hong Kong. Brokers in developing market Asia-Pacific countries typically are fewer in","page_number":73,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"2feebcbe-d20a-4fc4-9e37-e5b7c5b49f72","block_type":"box","text":"number and less well capitalized than brokers in the United States. These factors, combined with the U.S. regulatory","page_number":73,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"33d68db1-0d48-4cd2-8b87-3846a43c658f","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":73,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"0ec9ca0b-3a89-4a96-b50a-360c00b6a080","block_type":"box","text":"in potentially fewer investment oppor tunities for a Fund and may have an adverse impact on the investment","page_number":73,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"7a20235b-5cb1-45dd-a8bc-0343270880ee","block_type":"box","text":"per formance of the Fund.","page_number":73,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"fd69a2ca-7557-49b9-800e-02ca247aa7d0","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":73,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"dbc6aac3-f89d-4f0c-a54c-3e065543bd61","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":73,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"20d98ee7-59c8-41f8-98c3-c5a1ac581174","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":73,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"114ce915-3c10-4d41-b446-3271b4b9dbeb","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":73,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"d117d2a0-fad6-43ae-8bf3-5b27c098e4e2","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":73,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"e8c19f6c-7d13-44f3-a02d-53e4d7442df5","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":73,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"4cf09a09-0bc5-4676-b82b-4ac4c74da91a","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":73,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"e878208a-b669-4a22-b01a-c39c3db8d4fc","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":73,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"3b698699-f120-44c2-9e2c-1f7d839686c7","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":73,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"3f458b39-7175-4054-b713-82826fe87aa6","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":73,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"b27ff285-5ca4-4d4d-b548-16c9406f8e1b","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":73,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"83d8b76b-7944-4231-8083-8d673d1cb3ac","block_type":"box","text":"affected by a variety of factors.","page_number":73,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"c448db62-99d1-44e1-b398-69a5164491c9","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":73,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"1cedb5e0-6b6d-47c9-b345-6cb41ec56f4b","block_type":"box","text":"Fund. For example, while the potential liability of a shareholder in a U.S. corporation with respect to acts of the","page_number":73,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"1bb4cb22-4302-4a19-83ac-0317e011f073","block_type":"box","text":"corporation is generally limited to the amount of the shareholder’s investment, the notion of limited liability is less","page_number":73,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"14f9e55c-2411-425b-9833-781aa2689ba0","block_type":"box","text":"clear in cer tain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":73,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"8e046293-6590-41c3-b4ba-5bb04fa1d676","block_type":"box","text":"Pacific companies may be more limited than those of shareholders of U.S. corporations. It may be difficult or","page_number":73,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"5bd46d54-27e0-4b73-8d5f-60e1250695d7","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":73,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"83e2f2d1-8a20-412d-bd52-587e0e577c1c","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":73,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"0aff7a8c-5f53-488b-a6e4-b483734155e6","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":73,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"9f43611a-2d79-4ebc-b456-2fc1bb092af5","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":73,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"1279bc8b-ce36-4131-a4fb-bba485887e7a","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":73,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"f8aa1294-1754-444f-a4b1-abc5a2506a61","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":73,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"d8c3b118-f922-4641-8d0b-5ea6af22a211","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":73,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"49b882a5-42e6-4f28-a391-e374b62cee22","block_type":"box","text":"nations.","page_number":73,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"2baea872-0bfe-47db-9155-b90a484b2835","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":73,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"835d043f-23b1-460b-bfa0-7cbe8ab6345a","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":73,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"3326546e-e52c-435d-815b-28f2f6e85542","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":73,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"17f7dcf2-3caa-4dc0-a88b-59ebaf1edc33","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":73,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"aa92c378-648c-4ed9-aba1-f6c1bb0a76b2","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":73,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"c804c4ad-6496-4c0d-a558-ca0ed52b3acf","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":73,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"3eee41d6-7a0e-42c7-aeec-2814edbc0668","block_type":"box","text":"market Asia-Pacific companies.","page_number":73,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"111d9f6f-3255-4721-a917-a45d34672f18","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":73,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"6d7d42d1-845a-41a0-89f1-a012c3c50d70","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":73,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"f1a2e442-d08d-4c2b-b44c-0b1f64d2afb3","block_type":"box","text":"services for such securities outside such countries.","page_number":73,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"defb946d-fb12-4302-8368-b8f9318151c0","block_type":"box","text":"II-36","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7fdfcec8-06bc-4544-8145-402bf36c90ce","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aeeca62f-1b64-4e98-aae0-f77244265226","block_type":"box","text":"Cer tain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":74,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"82357a1d-f4aa-4485-a538-dd3284057704","block_type":"box","text":"to commercial banks and foreign governments.","page_number":74,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"f7d1c6fe-4ebb-487b-8438-e2e2bd905200","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":74,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"b9cac9e0-b0a3-4d19-9e71-bc0fb0fa54c7","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":74,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"9fc1c73e-bbb0-448b-b82d-570a0413730a","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":74,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"52b79477-f3a2-475e-b1cc-b580699ff339","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":74,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"efa54146-95ab-4d33-b17c-4b92de6ce0e7","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":74,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"24161c79-a499-426e-b4f7-9de7b5003a0c","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":74,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"3d8d617c-e715-4936-b8c9-a322d9da3b4c","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":74,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"4fb2093c-b3c7-422b-8fe6-c36ff40d8b91","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":74,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"722cbfa3-b392-4fcc-b8db-fd0b9c4652b2","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":74,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"063f07e3-495e-4503-a715-c4937944fc9d","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":74,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"b8775db6-554a-4918-943d-300df18c1698","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":74,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"5a606b65-1e54-47f3-b166-51f49475d216","block_type":"box","text":"by foreign persons to only a specific class of securities of a company which may have less advantageous terms","page_number":74,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"e358bacc-f410-4c19-bc32-e68f61e40f70","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":74,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"70804f31-ad5e-4f58-bfee-7f15c8ffbc4f","block_type":"box","text":"be no assurance that a Fund will be able to obtain required governmental approvals in a timely manner. In addition,","page_number":74,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"7ee37f74-f987-4948-937c-f8750d5a98d9","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":74,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"9cb46624-75ba-42bf-89fb-4ead531b4e77","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":74,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"cd2114b3-ffba-4cc8-b97a-f31d8d30b152","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":74,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"306c9d68-aa60-4e08-8084-ae30d43c55ab","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":74,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"34e382bd-ec89-47e8-bebd-0fc67522f182","block_type":"box","text":"well as limitations on such investments, also may have an adverse impact on the operations of a Fund. For example,","page_number":74,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"d8d4f6fa-884e-43dd-8f92-ea2b3bdf53af","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":74,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"1365d0e5-eea1-440f-9f39-f899b40781a8","block_type":"box","text":"have the shares purchased re-registered in the name of the Fund. Re-registration may in some instances not be able","page_number":74,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"d1dd608c-879e-4357-861a-c2ef910e7406","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":74,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"977c19da-18e1-41e0-950d-b3eb93c11651","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":74,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"ba2aa1b5-19f3-4594-9e3f-2d7f42b3b856","block_type":"box","text":"a Fund places a purchase order but is subsequently informed, at the time of re-registration, that the permissible","page_number":74,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"ae52a23d-1043-40a9-ba10-14a5879abbe2","block_type":"box","text":"allocation of the investment to foreign investors has been filled, depriving the Fund of the ability to make its desired","page_number":74,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"2a861a8d-be61-47e1-bcc1-a2174944a312","block_type":"box","text":"investment at that time.","page_number":74,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"71d4c549-0b94-4acd-bd18-1b02b9468614","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":74,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"b369cdc8-9705-4e12-b266-db57ab2d6aff","block_type":"box","text":"income, capital or the proceeds of sales of securities by foreign investors. A Fund could be adversely affected by","page_number":74,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"78816955-c370-4a63-9cb6-2ebe03244d11","block_type":"box","text":"delays in, or a refusal to grant, any required governmental approval for repatriation of capital, as well as by the","page_number":74,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"1aa2b506-f1fd-4664-8d67-8b5f0ebdbbaf","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":74,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"9968db78-9de6-412f-8d7e-09b4020050ef","block_type":"box","text":"controls or other restrictions relating to their currencies or to securities of issuers in those countries. To the extent","page_number":74,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"d2aaf1a3-0191-4104-bd11-ba1d2e1b0086","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":74,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"16e142a5-0f73-4c9e-8760-7bf2f85c167a","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":74,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"faa005a4-aeb2-4e12-8489-f0f9a2743f96","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":74,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"450568be-3722-4987-8f46-5f5e652760c1","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":74,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"aa12a6fd-ce45-4937-8201-ab7da3c61134","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":74,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"ab9945c0-a094-4beb-91ec-33b13c6b5157","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":74,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"261ee2db-7189-45b5-9e73-d2b5e8e62781","block_type":"box","text":"government).","page_number":74,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"56b94879-890b-435c-a5b9-e07fcf26f738","block_type":"box","text":"In cer tain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":74,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"3a97d096-46dc-4c32-91c6-46a90d90cb22","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":74,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"2e435c8d-73c0-476b-a19d-e78bcfa33bea","block_type":"box","text":"securities of an issuer that, in its most recent fiscal year, derived more than 15% of its revenues from “securities","page_number":74,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"bc3a501c-9bec-4178-8768-3e8837c9703f","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":74,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"ad8cc64d-be2d-4150-b638-4e34cc283f8f","block_type":"box","text":"foreign banks and other financial institutions.","page_number":74,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"9323a397-b49b-418f-9bca-5a350d475cc8","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":74,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"b958f783-e766-4894-8eae-15aa8550e91a","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":74,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"27ee42b2-40a8-4118-a172-4bfb69fb1342","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":74,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"f93c5141-45da-411a-9901-e09325309d77","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":74,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"82f00f49-3f00-433d-b9d2-40e2fb902fa8","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":74,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"92faf84f-1ba9-4e82-84cf-fb1557b9f37b","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":74,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"b4e286c5-b13a-4755-bcc6-216f8299567a","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":74,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"8b345514-11fe-4392-876e-45bb3d6fc3b5","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":74,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"7bd3d77c-e201-492c-a0da-2b54df9d10e9","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":74,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"f16be071-bf71-4c20-8ec5-b384d5d3cd74","block_type":"box","text":"II-37","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"753f647a-3224-4686-859b-2798fc1f41cf","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"01be2ccf-2653-40a2-b124-ce6dc26ffaa7","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":75,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"6d0807ec-edaf-4df7-8545-1270c9f2ef0f","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":75,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"05fd21ac-4cef-488e-ab33-4588370274bc","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":75,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"7b9b06ce-84bb-4205-87e8-2a11eda4f186","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":75,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"3b68544a-504b-4133-9f43-c63158c94aab","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":75,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"a8c9884d-0a6f-4f53-b088-99cf61d39306","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":75,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"92ee1290-d356-419b-9aa9-bbd12228db9a","block_type":"box","text":"foreign securities.","page_number":75,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"e28ad33b-c3be-4ee9-b6dc-028f671adeff","block_type":"box","text":"Risks of Investments in Russia.","page_number":75,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"16bf0fb7-7fa9-402f-ab6a-048405ca3a46","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":75,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"deb6445e-b95c-4022-a269-3d889c733f54","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":75,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"be29936c-bc6a-47af-a0a6-81d2ccf387f1","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":75,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"b2d2f11f-8d74-4942-914d-ba61e739ef9c","block_type":"box","text":"and a substantial por tion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":75,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"3bebbbe2-93c9-4ded-b218-692a687e564d","block_type":"box","text":"The inexperience of the Russian securities market and the limited volume of trading in securities in the market may","page_number":75,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"6cfde0b0-a9bb-4693-aac0-6b789236e030","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":75,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"278a3054-fe3b-4bcd-a26e-a5815296a64b","block_type":"box","text":"developed markets.","page_number":75,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"d1852c6e-05f5-4abb-9c7b-9e3c74ec60e6","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":75,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"18f24a87-23d5-42fa-bdea-9a1b5837b8b0","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":75,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"899a001a-a01f-4355-b7c8-3f2e7d441843","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":75,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"98d9bdbd-b3a4-4aa9-8aa1-777e0c67f56d","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":75,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"9ba4e31d-7d36-4a49-b298-de631d823895","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":75,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"8a214659-2641-4da6-803a-54428c6ae7fe","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":75,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"c4eefa05-7b44-4b29-8631-d166eea80d9c","block_type":"box","text":"through the NSD is now based on the records of the NSD and not on the records of the local registrars. Although the","page_number":75,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"1d8d35ee-7309-462c-89c5-42e05f6e7495","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":75,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"ddc90ff1-2c4a-4cf7-b795-26543926c43a","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":75,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"82fe46ff-bafd-45d0-8bc0-43272c248183","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":75,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"2e791aaa-dc71-495b-b20b-95a3894a4bc8","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":75,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"fd1727e2-bc6f-4f6e-9899-753718be8ed1","block_type":"box","text":"respect to the completion and submission of corporate action elections. To the extent that a Fund suffers a loss","page_number":75,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"66d84f37-f7c3-4496-a9e7-26bdf9376bb0","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":75,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"42e06628-9587-4749-b29a-57a4d3f5d10a","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":75,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"5e3f87e1-4a67-4ac5-9694-c1b80cb7e333","block_type":"box","text":"custodian bank, and as a result the custodian may be considered the ultimate owner of securities held on behalf of","page_number":75,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"6772f077-50d2-4fc8-8452-e83d7b9d9066","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":75,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"0480d7fd-b07d-49e7-b6ca-74f5cc35943d","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":75,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"b95dcd55-16af-4eea-980a-472be48ee2a4","block_type":"box","text":"did with Georgia in the summer of 2008 and the Ukraine in 2014 and 2022. Russia launched a large-scale invasion","page_number":75,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"cda359c2-086f-4411-9691-cd8b236a406e","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":75,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"845b04b9-f65d-4fee-abf2-140908a782b2","block_type":"box","text":"future market disruptions, including declines in its stock markets and the value of the ruble against the U.S. dollar,","page_number":75,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"2ac80c19-04dd-416a-bac8-11316e7f60b1","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":75,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"af9723b2-27d0-4575-925b-6a1a33228ea6","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":75,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"f7262ec7-5901-44c3-b47b-8736a77c3b38","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":75,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"4ce18b70-b46a-46ac-b6f1-6288a8938610","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":75,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"14d476ad-740e-4429-90e2-4bbbc04c9515","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":75,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"ab03cb10-b405-4793-814d-22679ec3b8ca","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":75,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"518ff2d1-7e77-4cf7-b428-4597694bc900","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":75,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"8bbfa615-1718-439d-9bea-097c44bcdf86","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":75,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"5eef0229-bb9c-4d19-9a3d-533d0b4bd8e8","block_type":"box","text":"oil and natural gas, as well as other sectors of the Russian economy, and may likely have collateral impacts on such","page_number":75,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"908d4d4b-5cb0-46c0-a676-1a294babe72f","block_type":"box","text":"sectors globally.","page_number":75,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"12532074-760a-41da-8fbb-465bcaac59f2","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":75,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"ae757245-cabd-4b36-a92b-2675772ac313","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":75,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"45090b7d-da9c-45f0-bb4d-5a4d22e7e772","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":75,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"6b93be7f-edc5-4264-9911-fdd0da003938","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":75,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"f78c25fb-9111-467d-a3ea-029552fd54f2","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":75,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"84d33d51-b6b4-4c1d-9c90-a297119e6663","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":75,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"1bfadb0b-de6f-442b-a99e-c392eefa455c","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":75,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"1817af96-8087-4f8f-84e0-06a25a401050","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":75,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"b4dbef74-0bb9-4ce4-a914-a4fa4e02dec8","block_type":"box","text":"funds invested in prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities","page_number":75,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"218266cf-6980-47bd-b505-595a43f3ce96","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":75,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"b114a82d-8f5e-46f1-9d8d-e5d0709521c5","block_type":"box","text":"fur ther impair the value and liquidity of Russian securities.","page_number":75,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"5e084d1a-af54-4104-abd5-b29a239b569f","block_type":"box","text":"II-38","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"61eccaa9-2368-4bd3-b7a5-f5444d71d9a4","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":75,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d5e82f7-2d9c-4c52-990c-c576804ed552","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":76,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"a4297a8f-4848-49b7-b31a-ed54ef90ae6a","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":76,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"b7623171-73e8-4f63-ab31-d375c3831cf3","block_type":"box","text":"issuers is new and untested. Such ability could be restricted or revoked by the Saudi Arabian government at any time,","page_number":76,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"d11df1b4-73aa-46da-b43e-dd97f1e306ea","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":76,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"6089b501-98a5-4fac-a1fb-cb99975a4440","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":76,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"855b3639-97de-4e36-a12e-e874714e6df8","block_type":"box","text":"including a limitation on a Fund’s ownership of any single issuer listed on the Saudi Arabian Stock Exchange, which","page_number":76,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"50d0e587-7782-4061-accf-98ecb702c460","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":76,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"498a541d-bcde-4777-b363-8513d5bbfcad","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":76,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"b22a7140-d9f4-49f2-9c5e-d5b6fa4bd5ac","block_type":"box","text":"approvals or additional foreign taxes, may be instituted at any time. A Fund may not be able to obtain or maintain any","page_number":76,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"4b846e50-ee57-46d9-9bad-1d9e44d25470","block_type":"box","text":"such licenses or approvals and may not be able to buy and sell securities at full value. Major disruptions or","page_number":76,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"5adef52b-4fa0-4c90-bb65-eb47b94b9bfe","block_type":"box","text":"regulatory changes could occur in the Saudi Arabian market, any of which could negatively impact a Fund. These risks","page_number":76,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"74bc2ee8-d529-45ca-8c81-1c6bf7d27b14","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":76,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"82d6da9c-dfb1-4335-81e6-c8a1243cf602","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":76,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"2427d49e-786d-431a-ab6a-df8f1e3b17e8","block_type":"box","text":"of assets and proper ty or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":76,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"ad1f5afd-5c2e-423f-ac61-d8fa24c1d806","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":76,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"4c9defc0-24e6-407a-965b-5a35d0778860","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":76,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"e4df7bbf-03c4-4c2a-89fe-a8da4c84ec63","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":76,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"3809b544-e2bf-4413-8a69-b552ded2d7d3","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":76,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"0f3f4969-6a2d-45ee-861d-d8d2f0cd44ef","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":76,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"fad4b5cd-ad4a-4d74-834e-c05dbec913f4","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":76,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"3f4789fe-f6ea-489c-a680-4587af163bbd","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":76,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"5f43f217-cd0c-42ca-9776-4503e3447e8e","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":76,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"3daba8e0-7c1b-4f9f-ad03-5739dfa6ef94","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":76,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"32ba5ada-1639-4275-a761-ebdb816d2ba5","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":76,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"90482670-befd-4b1a-9864-db69e93ad000","block_type":"box","text":"to an applicable treaty). Saudi Arabia is highly reliant on income from the sale of petroleum and trade with other","page_number":76,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"c8a2d972-1ce6-47a4-a7d0-af1124631426","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":76,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"58c06795-4247-4e57-9560-2a3819361b7f","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":76,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"e047d9ac-f1e8-42bb-a769-10e7ee97e9af","block_type":"box","text":"impacted.","page_number":76,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"15e4c6f0-ec3d-448b-af2e-e70d3ee3368d","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":76,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"0ac7c43c-e323-4cab-9951-d8018483071b","block_type":"box","text":"many aspects of the private sector. Although liberalization in the wider economy is underway, in many areas it has","page_number":76,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"762c3bf1-0a4d-4b3a-a696-210541c94fba","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":76,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"1dfa7180-8e24-45f9-9967-5ec40f94b477","block_type":"box","text":"key industries. The situation is exacerbated by the fact that Saudi Arabia is governed by an absolute monarchy. Saudi","page_number":76,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"6fec9961-eb9b-491e-a6f8-c41066f1781c","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":76,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"0b35ec3a-3930-40e0-a52e-a3c4ba308df2","block_type":"box","text":"the Middle East due to geopolitical events. Incidents involving a Middle Eastern country’s or the region’s security,","page_number":76,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"766a9672-0a17-4ea1-af76-2bf0735c67b5","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":76,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"8a8ecfba-d04e-4008-9a9f-c3f9d5660870","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":76,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"26c90683-dbdc-488e-a2c1-8921687501ec","block_type":"box","text":"Arabia, which could affect private sector companies and a Fund, as well as the value of securities in a Fund’s","page_number":76,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"08cb9ab2-ec25-4105-9533-54aad8714764","block_type":"box","text":"por tfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":76,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"f18cfa05-a3c9-4b07-959c-c5a20eb8ed4f","block_type":"box","text":"of sanctions, may result in the decline of the value and liquidity of Saudi Arabian securities, a weakening of the Saudi","page_number":76,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"e5bfc274-127e-4e4c-8425-b77dd6ad6b02","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":76,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"c4b4ffab-8ca5-411d-bb3a-cd3e47ad2b10","block_type":"box","text":"on cheap, foreign labor, and changes in the availability of this labor supply could have an adverse effect on the","page_number":76,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"8478d769-5cb5-4017-8b95-dec371aa3452","block_type":"box","text":"economy.","page_number":76,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"6d0e30ab-bc10-4156-b707-f0c1dbea30a1","block_type":"box","text":"The securities markets in Saudi Arabia may not be as developed as those in other countries. As a result,","page_number":76,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"d4e3eae0-6911-45a0-b44f-2c462c867abf","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":76,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"5f904379-fbc0-44f0-a2d8-a50ef909d089","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":76,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"47e2869c-1291-4320-9afa-07861ee1515f","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":76,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"4ba1020e-901a-4668-88dd-a6bac7b52101","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":76,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"53bb8309-79fe-4702-8b8b-5f7d52ea6b70","block_type":"box","text":"infrequent trading may adversely affect the pricing of these securities and a Fund’s ability to sell these securities in","page_number":76,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"e798d546-38b7-4566-a8a1-049b000f3844","block_type":"box","text":"the future. Current regulations in Saudi Arabian markets may require a Fund to execute trades of securities through a","page_number":76,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"5d7cd74b-2cd5-4a9b-983a-baa5c0488982","block_type":"box","text":"single broker. As a result, the Manager will have less flexibility to choose among brokers on behalf of a Fund than is","page_number":76,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"0e97ff8d-fa1d-449e-a28d-622dceb7105f","block_type":"box","text":"typically the case for investment managers.","page_number":76,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"80f491ac-f271-4c80-a038-46744f88f7c0","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":76,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"41d14d6e-0f37-4203-a19a-3a51b884884a","block_type":"box","text":"instability, and there remains the possibility that the stability will not hold in the future or that instability in the larger","page_number":76,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"9cc403c4-fbfa-4649-ab20-06d63085def4","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":76,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"b0bbd038-a267-4d6c-9517-aec3c90e85f0","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":76,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"b9d23eda-1d91-455e-87a1-d050c043ac2f","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":76,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"690b712b-ca98-4faa-939e-bde2c643983b","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":76,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"24cbfdff-36c4-4cca-9c2b-75f47662168b","block_type":"box","text":"II-39","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cbcc1751-285e-4cae-8e44-7737ea3321b4","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b13054ab-306c-4df1-b8b9-6d6766d6db6c","block_type":"box","text":"with Saudi Arabia and other Middle-Eastern countries may affect these attitudes and policies. The U.S. is a","page_number":77,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"580bff6e-7fb2-443d-ae62-c1161012b694","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":77,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"99b81739-d31d-4beb-b1ce-64587336488e","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":77,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"cca7e584-85d4-474f-aa1f-4548f9a1f4a1","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":77,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"ebb416e1-053a-4afb-9bba-77aa52284e86","block_type":"box","text":"an economic slowdown in the U.S. may have a material adverse effect on the economic conditions of Saudi Arabia","page_number":77,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"e2ce2bc4-6732-4927-ab6d-f67163bac4be","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":77,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"1b3f137f-97c8-49c9-8baf-0610b9f4c78f","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":77,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"9145d269-51e0-4b7b-a729-84bd97921022","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":77,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"295dec2f-072b-4fda-9a23-4e092bcbdfa3","block_type":"box","text":"Cer tain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":77,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"3e48c040-06e0-4174-ba9f-4dd45a0c8999","block_type":"box","text":"and/or embargoes imposed by the U.S. Government and the United Nations and/or countries identified by the U.S.","page_number":77,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"fe3c8972-5ef4-4d90-8f89-46a6d93a816a","block_type":"box","text":"Government as state sponsors of terrorism. As a result, an issuer may sustain damage to its reputation if it is","page_number":77,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"afd6470e-eb9a-4b54-aa67-919db4e78ed2","block_type":"box","text":"identified as an issuer which operates in, or has dealings with, such countries. A Fund, as an investor in such issuers","page_number":77,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"20c467f0-1271-4c68-9f0c-6de6fe999bcf","block_type":"box","text":"will be indirectly subject to those risks.","page_number":77,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"01b03e48-e059-4920-8c0e-c2955de8dbc6","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":77,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"308c2198-1a0e-450e-b2e9-cab9e6ee2a75","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":77,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"d0ececa3-bc0b-4f7c-bc9c-68b2ad42c20d","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":77,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"75c26641-b21f-4949-b34f-5e951c0f1b92","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":77,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"8e5b3914-8c4e-47b4-b37b-a93c7fb2d781","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":77,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"58713552-6866-4e78-ade0-89b189540933","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":77,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"6876fd30-d05f-4a26-be21-304c2fe257ae","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":77,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"641adc42-98e3-494b-97fa-f6e19de76f1d","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":77,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"5c32201f-21a9-499f-a46b-4d00124a79a1","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":77,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"ba2d713b-d66d-47f2-8b97-b51b78713428","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":77,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"4163551a-2995-40af-a401-ad3dbb8cc71d","block_type":"box","text":"governments of the U.S. and Venezuela. The U.S. has imposed economic sanctions, which consist of asset freezes","page_number":77,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"948217a8-4a33-4e5e-9608-e3e241ca9927","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":77,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"396e7ac2-3f2a-4ff5-9be3-64a5eac5642d","block_type":"box","text":"government. The U.S. could also institute broader sanctions on Venezuela. The U.S. has also taken military action","page_number":77,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"124383be-c0bf-49b6-b9c9-1c501edfd1df","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":77,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"f28b5134-6fa9-464d-bb71-f6d1a1a8548a","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":77,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"949c79fa-46f5-4a88-aab1-6f4ccb70bda6","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":77,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"6ac44c04-07ff-4614-a927-f94285308fe6","block_type":"box","text":"ability of a Fund to buy, sell, receive or deliver those securities and/or assets. Additional sanctions against Venezuela","page_number":77,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"f9a0813e-ec1f-4ad4-8601-5187c69753d3","block_type":"box","text":"may in the future be imposed by the U.S. or other countries. These factors, among others, can have a negative","page_number":77,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"1c511864-ec56-4854-ab55-2e9e27bfebca","block_type":"box","text":"impact on a Fund’s investments.","page_number":77,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"bb78df41-98ce-43bf-8767-e88a5c200622","block_type":"box","text":"Brady Bonds.","page_number":77,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"963e1be6-8743-4c2e-94d0-ae0b348a970e","block_type":"box","text":"Cer tain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":77,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"eeb8b70f-f96a-4a53-bc7f-5ffa1f15d15f","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":77,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"30aed5ec-2e5c-4611-9a02-ff2711e80788","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":77,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"95efc37d-278b-49d0-b876-917a97a2db4a","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":77,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"77a1eaf2-145d-4507-8c86-12e757ffb3c7","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":77,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"075f4fda-44bb-41e0-b106-50baa680e1ac","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":77,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"82cf9140-5f4c-4ef9-bf6f-60085bdc8c62","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":77,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"f8f29774-81a7-468e-89f6-19708a1ce229","block_type":"box","text":"2000s, cer tain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":77,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"82d0577a-984e-4a77-b76b-cf6abfd87a69","block_type":"box","text":"Venezuela.","page_number":77,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"61344287-661d-4771-9388-29739818a352","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":77,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"080d844a-0278-4967-883b-cee112d043a0","block_type":"box","text":"and are actively traded in the OTC secondary market. Brady Bonds are not considered to be U.S. Government","page_number":77,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"7a10d9aa-753c-482e-960d-9380d0018f1e","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":77,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"a3eec8aa-6e68-4aa5-b978-ede43264aa60","block_type":"box","text":"discount bonds, are generally collateralized in full as to principal by U.S. Treasury zero-coupon bonds having the","page_number":77,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"64a8272c-51d2-4660-8e3a-05c63c355486","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":77,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"61ecea8e-c2ee-4392-92e3-006168f0f558","block_type":"box","text":"year or longer rolling-forward basis by cash or securities in an amount that, in the case of fixed rate bonds, is equal","page_number":77,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"d2c2dfa9-4cb3-4a07-b8ce-c7ae2550afce","block_type":"box","text":"to at least one year of interest payments or, in the case of floating rate bonds, initially is equal to at least one year’s","page_number":77,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"7523c292-cad8-462a-869e-f94a631d2f81","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":77,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"fedb3c50-1f91-4401-8e69-0d6fc063deb9","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":77,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"595361e3-c9ae-48fc-a122-f2938822ae23","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":77,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"27f11f42-68f7-4d17-be70-9478213c333f","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":77,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"993fb756-d232-40c0-971d-5c9014e5d2c7","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":77,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"d49e70f7-6c7b-4d9d-9f4a-19bc85aa2322","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":77,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"4be1f918-42cb-4f47-933b-d1589b48e620","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":77,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"63de0993-5dcc-4eec-a6f1-60eabb23c472","block_type":"box","text":"the history of defaults with respect to commercial bank loans by public and private entities of countries issuing Brady","page_number":77,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"be5e3a3f-43fe-4f6e-bdcd-6d8102822677","block_type":"box","text":"II-40","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"775892c5-16a1-47e7-8f21-d48928921ef5","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b16655d3-466e-4ae1-bbd8-4d3e009a4119","block_type":"box","text":"Bonds. In light of the residual risk of Brady Bonds and, among other factors, the history of defaults, investments in","page_number":78,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"617b2d70-73df-45a3-be25-51cb6815a702","block_type":"box","text":"Brady Bonds are considered speculative. There can be no assurance that Brady Bonds in which the Funds may invest","page_number":78,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"06e4004d-3f2a-4c47-8906-e293a97fae5a","block_type":"box","text":"will not be subject to restructuring arrangements or to requests for new credit, which may cause the Funds to suffer a","page_number":78,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"ce775651-0229-4116-ae41-6d423f17f8d2","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":78,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"9e05377c-ccfa-49be-b66d-8d83db778c4e","block_type":"box","text":"China Investments Risk.","page_number":78,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"00077e87-e588-4c8f-8ca9-ae1dc9b4c96b","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":78,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"4262b3f6-5606-4f4b-8021-b90c4112a0a9","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":78,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"48b0fc1c-1652-4880-91e0-6c27bed22d56","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":78,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"79628fad-1884-460c-9987-f2df1efd91d7","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":78,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"b02924d0-caee-46b2-941c-f18ed5ffe3c9","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":78,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"e1bbf54d-79ba-4084-8c82-9d83afb3942b","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":78,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"7dfbb5e8-5cfe-46f4-a442-fa2d9bcd2752","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":78,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"7d7963b1-eea6-4c0c-8c6c-2ae1b89c85b1","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":78,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"8156e59d-66a0-451e-87c2-ee357125629b","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":78,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"4c55fe1e-da60-4cce-8cfd-387f7b95b569","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":78,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"5b35c466-e9d2-4df8-ab45-bd5e0ffad447","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":78,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"b23a70f9-302b-4e9b-9c58-b32d3638afe4","block_type":"box","text":"Kong may cause uncer tainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":78,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"2b98b04e-6270-421a-bb50-8f688baaa068","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":78,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"821c57eb-ed31-4e04-8d0e-2c2b54d56457","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":78,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"d63fe6a0-7389-4eb1-8f5c-aa8957588e82","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":78,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"ce055dd4-cfd7-4448-93d9-71c50cfd531d","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":78,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"ff40c8cf-7d12-4f6a-865c-35aafbf3e791","block_type":"box","text":"hostility between China and Taiwan would likely have a significant adverse impact on the value of the Fund’s","page_number":78,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"589970d3-ffbc-4df7-afc0-b020653e2b31","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":78,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"e369d0cd-dfbf-4887-b41d-72a737120a66","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":78,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"a0e61618-5707-4748-9e8c-a5dbf6c4bf14","block_type":"box","text":"Frictions between China and the Philippines in the South China Sea pose a risk of escalation potentially leading to","page_number":78,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"d3d72834-9cab-4f5f-b778-9cd59980615b","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":78,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"7b9456bf-ea6d-401c-a786-27b41f16faf9","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":78,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"51c8b78d-5c5a-4370-83a2-91989cd88d96","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":78,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"55efe785-ef0a-4738-aaef-94384be1d33e","block_type":"box","text":"companies, may impact China’s economy and Chinese issuers of securities in which a Fund invests. China could be","page_number":78,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"8004aff6-1a0b-4d1f-8ec5-69ac5dd816bc","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":78,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"8fdbdffc-8498-459f-a05f-92ef73748e10","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":78,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"5e497fe0-5098-4692-88f6-0bb802ba5eae","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":78,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"56e6f38b-7a05-4d31-af6c-752a2f2e6809","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":78,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"2e7aaa37-44b0-42b2-956d-e874cad3d595","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":78,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"a26b51e1-813b-40ac-afe5-3047d33f2be8","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":78,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"fe0b3c6c-125a-42ea-9dd3-0922c6b847ac","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":78,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"a4e193e0-78c4-4ca7-aad1-0ef48201c8a2","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":78,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"24933a2b-f522-4255-ba7b-96cd2bcedbe3","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":78,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"481f3ff7-2167-45f2-9c2b-59ebe6154adb","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":78,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"98c7ba7c-cf41-4eb6-9caa-57958c88438d","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":78,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"25672ce6-aab9-4726-befc-f74ffee72ef7","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":78,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"3e426bcd-e7d4-4fd9-92ca-68686ab0b635","block_type":"box","text":"market price and liquidity of these stocks, and may have an unpredictable impact on the investment activities of the","page_number":78,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"129c46d1-2d9c-4745-b832-7e3dc09977cb","block_type":"box","text":"Funds. Fur thermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":78,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"20f379c9-7379-489b-b559-a1eaccbbae03","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":78,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"e0c83789-796b-4f91-9f96-6e59a376c450","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":78,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"fdf15787-2644-4ce8-837a-2aed8bf0f8f9","block_type":"box","text":"brokers and other par ticipants than in the United States. Accordingly, issuers of securities in China, including","page_number":78,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"6ab60c9d-12ae-42af-ad92-d58598e6ca4e","block_type":"box","text":"Chinese companies that are listed on U.S. exchanges, are not subject to the same degree of regulation as are U.S.","page_number":78,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"b61a4862-66b5-4051-b666-e09d77000a47","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":78,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"8b2c5916-2935-435f-8df3-0e0d3e486516","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":78,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"924a00d6-731b-4551-8211-227e9acfe802","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":78,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"953280af-7af6-448e-94c7-3c9f7363d7fb","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":78,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"b76a20df-240d-41e1-a98e-548a5979bb47","block_type":"box","text":"the relevant regulation. Custodians may not be able to offer the level of service and safe-keeping in relation to the","page_number":78,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"e75aed4b-cbc5-4ac5-91f3-f84e6ef57d7c","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":78,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"44565aa8-e978-45b3-8d25-8e2eb4d4a90e","block_type":"box","text":"there is a risk that a Fund may not be recognized as the owner of securities that are held on behalf of the Fund by a","page_number":78,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"cf07674c-7bee-423e-990c-0ac9776c964a","block_type":"box","text":"sub-custodian.","page_number":78,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"42b8b25f-5def-45c8-a652-5272449719c1","block_type":"box","text":"II-41","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4ff0fe1b-e78f-4d31-8820-f774ae990c28","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"25ff68b0-4072-4892-8a2a-3e0c5cb6b4ed","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":79,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"ce0ca194-6d73-48ed-968e-befc8726329a","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":79,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"21944f15-f585-4a03-859e-b3515994a550","block_type":"box","text":"on investor protection considerations.","page_number":79,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"d384ac5a-b034-4dfc-8945-f7cf78facd16","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":79,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"3ad3640b-ffdc-4b75-ae13-480bdc75cf0e","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":79,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"f9303e9b-386a-4853-a662-fa3c48f31110","block_type":"box","text":"for compliance with U.S. law and professional standards. On August 26, 2022, the PCAOB signed a Statement of","page_number":79,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"11994efc-d0a8-4e1d-b2a9-48233b18dfd9","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":79,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"a3d920ae-6a73-489f-80e5-db87edf58297","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":79,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"99992eb3-ad5a-44b4-abc0-4b04266eab81","block_type":"box","text":"headquar tered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":79,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"5d90bc09-d4c5-401b-b65d-e968fe3007b0","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":79,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"11bbee87-b41f-412f-b62e-755e75c13112","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":79,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"fe483589-1e43-4b42-aa62-c38751a9f807","block_type":"box","text":"per formed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":79,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"c5bc9223-2655-498b-bf58-1f6a7fcce495","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":79,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"b969e82d-1e48-41a0-b3d0-7bee84db1b1e","block_type":"box","text":"2020, which requires that the PCAOB be permitted to inspect the accounting firm of a U.S.-listed Chinese issuer,","page_number":79,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"d165e9e4-0400-4fd1-945e-93b8ee5f7fc6","block_type":"box","text":"Chinese companies with securities listed on U.S. exchanges may be delisted if the PCAOB is unable to inspect the","page_number":79,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"f1e73331-214b-4e10-a090-61ae09fdbd9f","block_type":"box","text":"accounting firm.","page_number":79,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"1127ed23-2b5c-48a2-8a3b-9cd2039defa4","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":79,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"233fc47e-c5fe-46b5-b9ef-96901eb70916","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":79,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"b2a2bf09-df29-434b-a52f-409e0dff7528","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":79,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"1404e3e5-9db4-4dc0-837f-5d2b30e528b6","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":79,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"a033ff04-fda6-4979-b32a-25b2a95629af","block_type":"box","text":"capital, as well as by the application to the Funds of any restrictions on investments. Investing in entities either in, or","page_number":79,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"74cb358e-f35e-48e1-ab04-9f22b8e2967f","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":79,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"3eca3646-2e90-402c-b2da-e59453148212","block_type":"box","text":"seek local government approvals or take other actions, each of which may involve additional costs and delays to the","page_number":79,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"59b01790-7451-4ac3-9664-896cc899ccf4","block_type":"box","text":"Funds. The Fund may also incur costs in connection with conversions between U.S. dollars and RMB, as well as in","page_number":79,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"89d7fed2-c4fc-4446-a715-005e61bc34cb","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":79,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"4916bce0-b26e-47ac-906b-27910d715bbe","block_type":"box","text":"RMB (“CNH”).","page_number":79,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"3f75b37b-0ef1-4ee5-b5a9-3a228ffe7879","block_type":"box","text":"Many Chinese companies listed on U.S. exchanges use variable interest entities or “VIEs” in their structure as a","page_number":79,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"263b5da4-0f8e-4d93-ac25-a9b8a8533d12","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":79,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"c6ea9a19-e591-47c8-9f37-72f8fa7a6f39","block_type":"box","text":"in another jurisdiction to issue stock to public shareholders. When a VIE structure is used by a Chinese company to","page_number":79,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"30c4320b-a12b-403b-a941-deb7563b0d9b","block_type":"box","text":"list its stock in the U.S., instead of owning the equity securities of the Chinese company, the U.S.-listed shell","page_number":79,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"f8e1935c-d6b9-421b-bcd9-9d0b10ae24a8","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":79,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"e926bbfc-ad38-4e37-8443-fbeb70ebc297","block_type":"box","text":"contracts provide the U.S.-listed shell company with only economic exposure to the Chinese company and do not","page_number":79,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"6d64d27d-9183-4cd9-b046-8b45c0861c2e","block_type":"box","text":"represent equity ownership in the operating company.","page_number":79,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"0b63f29f-bd68-4fe5-80ea-0e889eca09a6","block_type":"box","text":"While VIEs are a longstanding practice that is well known to Chinese officials and regulators, they have not been","page_number":79,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"dc7bd5ee-a82e-489f-a9cd-6bd71fa40e00","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":79,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"45ede9d8-538a-47ad-8f17-664efd450be8","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":79,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"caa8e863-bf2a-4c49-9a4f-222a3508032e","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":79,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"1fb5caa6-e02e-483d-9b0d-305b85dfaa3c","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":79,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"df736843-42f4-40cc-8182-2cc2c7f23d72","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":79,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"556024bf-4389-42d6-86d0-217e68fd766a","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":79,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"27eb0500-15fb-4b3a-a776-be6887be7391","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":79,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"3a6066f0-1365-4934-81ab-7b81d8d0d512","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":79,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"8b56d0ab-6b9a-48cf-a610-3e46c0b28d56","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":79,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"78be4fca-e7b7-411b-b64e-68d0f03d729c","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":79,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"141ecca5-beed-4916-aed1-ab71c802f8cd","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":79,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"20a5ecae-edbb-455a-934e-ace69f37608a","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":79,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"3c84c259-6184-48f3-9e56-dee8b6f74bb3","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":79,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"ea8662a8-001e-437e-ac12-61c03dc217cf","block_type":"box","text":"losses on its investments through a VIE structure with little or no recourse available. Any change in the operations of","page_number":79,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"22a4aca2-b003-4fb1-90fc-d66d21a46fdb","block_type":"box","text":"entities in a VIE structure, the status of VIE contractual arrangements or the legal or regulatory environment in China,","page_number":79,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"df924c7a-0de0-4f39-b136-394f5a1cbec0","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":79,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"fa3eb680-15fc-4b83-b54f-f27570117e2a","block_type":"box","text":"losses to a Fund.","page_number":79,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"e6ce0c51-a3c0-4915-b52d-ccf493b87780","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":79,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"26f8dfbd-6a61-4173-b78b-8dcc1027f097","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":79,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"79fb4ce0-0d84-4b49-86ad-998ecaa92259","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":79,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"725ca42f-339f-43e0-840b-c36944b839a1","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":79,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"0cb1015a-79e3-46bd-aebb-09dbe2036ca1","block_type":"box","text":"II-42","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"732f812e-f55f-47f9-9231-01d0da16817c","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f714bf1f-6272-4eda-9bd4-fb6246c23720","block_type":"box","text":"expor t growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":80,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"32c19517-dbfb-4af8-9e9c-5e42b9811338","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":80,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"7feac8ea-a4b1-4dab-b837-aea0ce0114d8","block_type":"box","text":"and the United States or in response to actual or alleged Chinese cyber activity) or a downturn in any of the","page_number":80,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"f80c8d26-01fe-4af2-b1d4-4e4913885186","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":80,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"9a8dd315-f539-41e5-be5d-c58925f175a2","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":80,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"b3e7b898-3f3e-46d8-83ba-c1f1de1528dc","block_type":"box","text":"subject to economic or trade restrictions imposed by the U.S. or other governments due to national security, human","page_number":80,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"9b025337-bc51-4117-aa8e-3b5f6c8c47ce","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":80,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"78e72abb-05d4-4f04-adf5-d29f9011170b","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":80,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"9f94a9b9-b745-4df1-8f20-9bf0d7d3d9f3","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":80,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"4ac6f461-5a03-410e-8e35-362e39c343da","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":80,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"505f27b4-554c-4017-b3ef-7fec0f95ebf5","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":80,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"b06d1bc3-a5ee-4935-88f4-e35a0906af85","block_type":"box","text":"or cause market disruptions. Cer tain companies may be subject to economic or trade restrictions (but not investment","page_number":80,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"36f23fb7-4743-49b7-9a0b-fcfbf6b42479","block_type":"box","text":"restrictions) imposed by the U.S. or other governments due to national security, human rights or other concerns of","page_number":80,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"d4aeaa24-82fa-4a42-9dac-cdb189d4a4be","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":80,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"5d0609b9-8cbd-4cd0-a7b3-4db9c1565133","block_type":"box","text":"such companies.","page_number":80,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"07089574-f51a-4701-b606-af730bbef909","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":80,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"833b129c-b1d9-47df-8bb1-516760413421","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":80,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"4f10270e-04db-4892-b5b8-b019f6548d7f","block_type":"box","text":"tax authorities are not as consistent and transparent as those of more developed nations, and may vary over time","page_number":80,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"542c0e21-5940-4753-9b83-f072e9bcb760","block_type":"box","text":"and from region to region. The application and enforcement of PRC tax rules could have a significant adverse effect","page_number":80,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"434f323d-ccbe-4147-9da0-0bac9bc9f66c","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":80,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"4e9c3b06-99cd-4a75-b527-cd6e54013f11","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":80,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"f66404ee-cea9-4996-bbf3-6cbcd06e40b6","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":80,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"f2926d8a-e78e-45ea-ae0c-ae90f6112319","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":80,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"3577b41b-aa16-4132-ad02-d4420f40c4e6","block_type":"box","text":"standards.","page_number":80,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"1a931358-541c-4595-837d-14e20736b9c5","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":80,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"cd2a800d-fb5f-45ab-96f7-ebcb5b5b9976","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":80,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"0463c22a-fec5-4c55-b73c-666b46b807be","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":80,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"904c0398-48fa-443a-8ed0-2909aeddca7f","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":80,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"0259d850-080d-46a6-8388-0b230ed1f8f7","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":80,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"cd94a39c-d54f-4b6a-8a0d-fba282b06e80","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":80,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"ab564255-09bc-4f24-8b20-1ef1d6f4c222","block_type":"box","text":"General","page_number":80,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"87c669a5-b2aa-441c-a00b-8998181e1f32","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":80,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"a47ccb42-c298-466e-9650-547301e3f2f5","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":80,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"b8973c17-0217-4c3d-b415-4428adbcc92e","block_type":"box","text":"Stock Exchange (“BSE”) (“A-shares”). Foreign investment in A-shares on the SSE and SZSE is not permitted, other","page_number":80,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"6bda162b-9027-479d-b4f5-5eb6a5a93876","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":80,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"5fde60ca-ed1d-4810-91e7-7bbd2ce3be3d","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":80,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"aa21660d-073a-4f08-a188-69c485094d2a","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":80,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"327ddea1-fdec-4ed6-9fd5-f7eec89f4f11","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":80,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"6d271b8b-03d2-492c-9348-eea502c337bc","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":80,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"e7b5be0e-6f98-4a86-a3dc-1ff419a09aa3","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":80,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"fda8ac44-8422-4775-87ce-ea670a63380f","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":80,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"9d5f7562-b2ba-417d-bf58-487f1e41f721","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":80,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"b09cf9f1-2815-4297-b4de-7f1ada42938a","block_type":"box","text":"market access between the PRC and Hong Kong by permitting investors to trade and settle shares on each market","page_number":80,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"bdb36d12-a5dd-4015-85c9-86c982ff370d","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":80,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"3a4db789-1405-452d-9c07-2bc9b79ee481","block_type":"box","text":"the SSE or SZSE, as applicable, would be effectuated through its Hong Kong broker and a securities trading service","page_number":80,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"422123f5-50ba-494b-b36b-9d37dbbe9ab7","block_type":"box","text":"company established by SEHK.","page_number":80,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"fb304372-feac-40c7-b152-061c94ca56a9","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":80,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"9ce7a1fd-afbb-41f5-a530-662d7f472c6a","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":80,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"410f09f7-adfc-48c6-ac2d-fa3e1758634b","block_type":"box","text":"buy orders for Stock Connect Securities be rejected once the daily quota is exceeded (although a Fund will be","page_number":80,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"13c2b499-d0c1-47e1-b015-ddbfdc1a8b63","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":80,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"b85340ff-a26b-413e-82c8-6d9ab91cf57f","block_type":"box","text":"investing in Stock Connect Securities on a timely basis, which could affect the Fund’s ability to effectively pursue its","page_number":80,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"9e4afcb6-6564-4264-9c3e-a1cb76cb0373","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":80,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"6967c6d6-1973-4d16-b66a-e237618a48b2","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":80,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"65d307bf-4454-4bfe-90c4-bb714f8b1de8","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":80,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"30727a02-8ea7-4497-ad05-b098a692720a","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":80,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"2f8c4918-200c-47ce-b5da-19531678dbfa","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":80,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"7010d6be-bbee-4d68-9beb-6686157d56bb","block_type":"box","text":"II-43","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"513b03eb-f290-49bb-b86e-fab59295d063","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a1062b23-7e43-4402-994f-be720e038b84","block_type":"box","text":"Securities in the investor’s account before the market opens on that day. If there are insufficient Stock Connect","page_number":81,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"cb4fc4ce-72e8-42c7-af58-c06cbca3595b","block_type":"box","text":"Securities in the investor’s account, the sell order will be rejected by the SSE or SZSE, as applicable. SEHK carries","page_number":81,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"2ab58abb-e92b-44a6-8bbf-ff4ca120acb5","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":81,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"bf3e1667-6764-44b9-b482-8814d8f19e11","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (","page_number":81,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"7a3953db-f83a-4998-991b-11639bb56200","block_type":"box","text":"i.e.","page_number":81,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"f0262733-1971-4e3e-b8b2-138a7790c18f","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":81,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"73e38b2e-bdcf-40b9-8505-079e9211e04f","block_type":"box","text":"must be designated as eligible to be traded under a Stock Connect, those shares may also lose such designation,","page_number":81,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"7d051467-0d45-4d14-9481-8ae8308d554c","block_type":"box","text":"and if this occurs, such shares may be sold but cannot be purchased through a Stock Connect. In addition, Stock","page_number":81,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"6b055622-dd13-4aed-98ba-b8a4e2a58272","block_type":"box","text":"Connects will only operate on days when both the Chinese and Hong Kong markets are open for trading, and banking","page_number":81,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"9b7f6bdc-5366-4110-9ebb-52313db0971d","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":81,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"b84f7cd4-39e1-4e52-b28a-7bfeb88f849b","block_type":"box","text":"Connect Securities through a Stock Connect may subject a Fund to a risk of price fluctuations on days when the","page_number":81,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"e9f9b2c7-b4ad-4064-b43b-dad7ff77b860","block_type":"box","text":"Chinese market is open, but a Stock Connect is not trading. Moreover, day (turnaround) trading is not permitted on","page_number":81,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"23225277-5c97-45d6-9856-2c051d3438f3","block_type":"box","text":"the Stock Connect Securities market. If an investor buys Stock Connect Securities on day “T,” the investor will only","page_number":81,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"25f5a652-5c66-41f6-958a-2287be4c6f0e","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":81,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"20f86873-ea3f-4bee-b106-33554d915928","block_type":"box","text":"must be settled in RMB, investors must have timely access to a reliable supply of offshore RMB, which cannot be","page_number":81,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"dcf6c8ab-6f11-4f7a-96b5-45e3df931edf","block_type":"box","text":"guaranteed. There is also no assurance that RMB will not be subject to devaluation. Any devaluation of RMB could","page_number":81,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"389942c8-a8e3-4551-aff8-89f262618aaf","block_type":"box","text":"adversely affect a Fund’s investments. If a Fund holds a class of shares denominated in a local currency other than","page_number":81,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"341e0fa2-8e09-4ee9-98e9-f4f0f1cd64c3","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":81,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"7d1b4d50-3af4-47d5-aa17-712b96eac97c","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":81,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"c5986fc0-0f2e-4328-acca-39e2721f9542","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":81,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"96776587-6572-453a-b900-c0f5750ea66f","block_type":"box","text":"as nominee on behalf of investors. The precise nature and rights of a Fund as the beneficial owner of the SSE","page_number":81,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"cd70cadb-cb48-4135-94ee-3d6d5a99c4dc","block_type":"box","text":"Securities or SZSE Securities through HKSCC as nominee is not well defined under the PRC laws. There is a lack of a","page_number":81,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"5c8033f4-40fd-44a2-99c2-ce540692bf6b","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":81,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"fd44a186-7af0-4b91-8b23-46b8aca11420","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":81,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"44a4de22-07ee-401b-85b9-00e0682ed87a","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":81,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"1cec771a-9d0f-408c-9f13-6d7b7e4b3f14","block_type":"box","text":"HKSCC becomes subject to winding up proceedings in Hong Kong, there is a risk that the SSE Securities or SZSE","page_number":81,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"9c5022d1-1bb6-446f-9426-bfead77906a8","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":81,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"20e3afed-8231-44fb-93a3-9e4c8edaa61c","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":81,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"f25bc4f3-6101-43a5-be98-3fdfaad2ac2c","block_type":"box","text":"proprietary interests in the SSE Securities or SZSE Securities held in its omnibus stock account in the CSDCC, the","page_number":81,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"88e5e7d6-3c57-4b56-8772-3467a4b35088","block_type":"box","text":"CSDCC as the share registrar for SSE- or SZSE-listed companies will still treat HKSCC as one of the shareholders","page_number":81,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"a7bc8802-56cf-4057-a86e-43526b70da6a","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":81,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"ea6115e6-9b90-4ba6-b089-0f6ac6e5715b","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":81,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"305d8f4c-aed9-425f-808c-4aaa120caa1f","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":81,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"16173caf-7b88-4518-b80a-e707e259382c","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":81,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"3e9853e7-a136-4bb1-8311-88a414f439f2","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":81,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"710ce6f1-24fe-42c3-97dc-4622efe49bf6","block_type":"box","text":"HKSCC, who will then submit a combined single voting instruction to the relevant SSE- or SZSE-listed company. As a","page_number":81,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"489d7a24-adab-4c58-9da7-d5cd04f19b11","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":81,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"ee642826-5020-45c5-87d1-1f3b95668f3b","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":81,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"67a2e019-cde9-4914-9a6a-61770f88d67a","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":81,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"c80c4319-8059-48ba-8072-3e53fdde20e7","block_type":"box","text":"to exchange-traded products in Hong Kong. For defaults occurring on or after January 1, 2020, Hong Kong’s","page_number":81,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"52060260-0c50-4722-b5ed-32f55564c4c7","block_type":"box","text":"Investor Compensation Fund covers investors’ losses in relation to securities (i) that are traded on the SSE or the","page_number":81,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"51ff7dcf-a0a8-40ac-a789-596b95fcffa4","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":81,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"6530767e-c29b-4067-bf59-c3bf3868a901","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":81,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"ca14fc04-df92-4812-963a-2caf713bd875","block_type":"box","text":"brokers in Hong Kong but not PRC brokers, it is not protected by the China Securities Investor Protection Fund in the","page_number":81,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"d725bc2f-3210-4081-ba86-8e0a6bde904f","block_type":"box","text":"PRC.","page_number":81,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"f383cb1c-b37a-4d48-8d80-aecea048dedc","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":81,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"8449415e-835f-452a-95e3-77e04382de83","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":81,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"619def20-d9f6-44c7-bb66-1bb8732d2faa","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":81,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"8dedeef3-58fd-4996-9106-84459c003ce0","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":81,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"7263070f-3e5a-420e-952a-b8726e101799","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":81,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"80564f80-4ee4-4ccc-9245-39baa74f84ce","block_type":"box","text":"continue to be adapted to changes and developments in both markets. In the event that the relevant systems fail to","page_number":81,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"fe3ddab4-469e-4e78-8156-fc713f43806a","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":81,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"3bf39479-7163-48c4-86a6-dba8b681f595","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":81,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"13475589-8f33-4544-af21-410b15e832f7","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":81,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"a9eefbfe-2958-42af-bbeb-ebce22f8557a","block_type":"box","text":"New or revised regulations may be issued from time to time by the regulators and stock exchanges in China and","page_number":81,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"5c284f72-b9a4-447c-90ef-c18dcd1373a3","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":81,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"0967c357-fb61-41de-8060-4a041ac96de5","block_type":"box","text":"addition, there can be no assurance that Stock Connect will not be discontinued. A Fund may be adversely affected","page_number":81,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"9bb09e1b-56df-40c1-9cf0-62d385a09e11","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":81,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"f8e2bb09-e40b-47f8-9e21-c5ce5b6702a8","block_type":"box","text":"II-44","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1c9800c6-f877-4729-82fb-4bf9f4d04b12","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5b7b4877-050c-4dac-a175-591e353413d0","block_type":"box","text":"significantly and issues may arise from the differences on an on-going basis. In the event that the relevant systems","page_number":82,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"1c98bad5-707a-4253-97a8-2bdefc209313","block_type":"box","text":"fail to function properly, trading in both markets through Stock Connects could be disrupted and a Fund’s ability to","page_number":82,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"7e8c0f58-a76c-4de1-aeba-08c23be469a6","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":82,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"ffcf5284-e440-4ffa-b055-adcfbeb4f04b","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":82,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"87972efa-d4f4-4f88-9a12-db9b3dbaf515","block_type":"box","text":"other restrictions. Fur ther, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":82,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"84383e7a-21fb-4db3-a723-b0102de9b84c","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":82,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"4f294705-9f25-49de-8df3-56e38bfe69a3","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":82,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"b3d2de6d-ac8e-44f4-bef3-5a143219aa37","block_type":"box","text":"Suspension Risk.","page_number":82,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"4f67295a-9d83-40fb-89f6-bbaed6173f9f","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":82,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"53d07a51-2954-4d1e-9dcf-6eae0b3b744d","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":82,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"62cb8532-fb18-480d-ae3b-e9ca71ecd76e","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":82,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"2876274f-c9d2-4849-823e-c9e338456aed","block_type":"box","text":"global equity markets. Each of the SEHK, SSE and SZSE reserves the right to suspend trading of SSE Securities and","page_number":82,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"2deab6b9-ed04-42b3-b145-dc38a6b8b601","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":82,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"b5691328-6093-4c0e-9bfe-46d2fe764334","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":82,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"5cc7667b-a7d9-4eae-ade4-7ee51c265e42","block_type":"box","text":"Nor thbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":82,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"dc215ab3-9a34-4b23-b75a-94d0cfa022bf","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":82,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"aa804e7f-c166-4216-8b75-358971986884","block_type":"box","text":"Connect is effected, the Fund’s ability to access the PRC market will be adversely affected. Trading suspensions in","page_number":82,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"ab5917b6-6d96-4d08-999a-894db652ae4d","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":82,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"ae1ff2cc-8e34-452d-833c-b5f3194b8dc4","block_type":"box","text":"daily price limit, generally set at 10%, of the amount of fluctuation permitted in the prices of the relevant SSE","page_number":82,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"ee1dd119-0bcc-4bd7-8e01-1592bc9f19dd","block_type":"box","text":"Securities and SZSE Securities during a single trading day. The daily price limit refers to price movements only and","page_number":82,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"f040ec51-ed4d-4ab9-a827-a50b5ec57217","block_type":"box","text":"does not restrict trading within the relevant limit. There can be no assurance that a liquid market on an exchange will","page_number":82,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"bfd554fe-8147-477e-b424-43657a255250","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":82,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"69ca1e2f-d259-4cac-aa18-c1ee34224ae2","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":82,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"ba890205-c314-4af1-846f-aa3a0d836f02","block_type":"box","text":"A Fund may invest directly in the","page_number":82,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"85bb62d3-3cff-4eeb-857a-b05fdd6636c4","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":82,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"0285f9e9-969d-4c12-a15f-5c3201332847","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":82,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"8b2e4d54-51f5-442f-9d0c-ad82e7d239ac","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":82,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"95c4bced-43f7-419c-a34c-406a8a55e319","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":82,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"05164d02-97f7-466a-95d3-efcd0dfd4279","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":82,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"7b0808fa-6574-42d6-989d-a62e34dd7754","block_type":"box","text":"regulations in the PRC, eligible foreign investors are allowed to invest in the bonds circulated in the China Interbank","page_number":82,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"61943787-c07a-4f91-a5dd-1925cc8ef06b","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":82,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"1cba43c4-c498-49cd-870f-a8a05c050aaf","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":82,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"1ca7e11c-b745-4f35-b46b-8930e284c84c","block_type":"box","text":"turn transmit their requests for quotation to CFETS. CFETS will send the requests for quotation to a number of","page_number":82,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"3acc0a32-ce46-47b6-b2d6-042747e9c68d","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":82,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"91fb16bb-ba8b-4f7e-90bd-fcd5048b2920","block_type":"box","text":"The approved onshore dealer(s) will respond to the requests for quotation via CFETS and CFETS will send their","page_number":82,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"2f2543da-b965-407e-a8bf-1f16e6e3fe2f","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":82,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"b6cc50d7-55c9-4ba5-b58a-e0c3c7a9d5fa","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":82,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"7b7fdb84-2577-43ea-82df-d9a7ed8564f5","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":82,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"51d9ad79-5e26-4d6f-9ee0-a55e762dde1f","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":82,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"c6a2cbd3-20e3-4a54-8421-ad2107617e24","block_type":"box","text":"as onshore custodians and clearing institutions in the PRC. Under the settlement link, CDCC or SCH will effect gross","page_number":82,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"9ee30963-11e1-412f-9df2-aa45e62ad33b","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":82,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"498444a0-66b9-422c-9bc2-da0af9164a91","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":82,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"35f05ad5-851d-487c-a279-3db7ed34c3d4","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":82,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"91aa4cd2-4d2e-4fd4-bf69-791af8e3ac1b","block_type":"box","text":"carried out simultaneously on a real-time basis. Pursuant to the prevailing regulations in the PRC, CMU, as the","page_number":82,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"28fa8bec-c964-4032-827d-7c04e32d6816","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":82,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"7d4b9330-8ef5-4c02-8162-6f6d7c632a7a","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":82,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"5f26619d-b898-4a10-a3d2-34398fe4d993","block_type":"box","text":"i.e.","page_number":82,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"f7153949-6360-43c7-a2b5-877afb3fcdac","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":82,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"dd61ac67-3163-4e57-a6c9-8725ee4459e8","block_type":"box","text":"eligible foreign investors through Bond Connect will be registered in the name of CMU, which will hold such bonds as","page_number":82,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"1c66ef06-f32c-46df-9660-c2ce960e9856","block_type":"box","text":"a nominee owner. Therefore, a Fund will be exposed to custody risks with respect to CMU. In the remote event of a","page_number":82,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"ef50a359-752c-4564-bace-65356c61bba8","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":82,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"e7641bbe-bc90-41a4-ade0-301c088e983c","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":82,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"d230bc12-be1c-41ed-8c11-baacdca2e2dd","block_type":"box","text":"delay in the recovery process or may not fully recover its losses from CDCC or SCH. In addition, as the relevant","page_number":82,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"488c418a-51e4-481f-a99a-0b460ac633e6","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":82,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"4c77bfd3-abbc-43ae-a602-4ba445535357","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":82,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"f678341a-9e92-4f87-9426-ca849ab0249f","block_type":"box","text":"par ties.","page_number":82,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"1229231a-ea08-4af3-b77d-6185af483b5a","block_type":"box","text":"The precise nature and rights of a Fund as the beneficial owner of the bonds traded in the China Interbank Bond","page_number":82,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"d052cd1d-074c-4029-b61e-538b8979f62e","block_type":"box","text":"Market through CMU as nominee is not well-defined under PRC law. There is a lack of a clear definition of, and","page_number":82,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"328f270a-34b4-4721-ad46-b474aee1b1e2","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":82,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"7b672ee1-40e1-43f2-be98-968cddac1230","block_type":"box","text":"II-45","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"15010a70-de0c-43d2-a1bb-1a7d0b21f8f8","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"10cabb5b-8fd6-4a00-af5a-8ccfab6da42c","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":83,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"2343ddf6-0096-40d9-9698-c27f4f6697c9","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":83,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"35638dbc-8cb1-4e75-9289-29f70567e747","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":83,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"44e58a9e-f0e9-443d-b3ab-e56fdd11a797","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":83,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"0e81cf05-f06a-4402-a904-177426abc306","block_type":"box","text":"such market is therefore subject to liquidity and volatility risks. The bid-ask spreads of the prices of such securities","page_number":83,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"94899072-0489-41f1-a7d1-b5cd43c74699","block_type":"box","text":"may be large, and a Fund may therefore incur significant costs and may suffer losses when selling such investments.","page_number":83,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"c353b99e-38c1-4201-b195-61df922eee26","block_type":"box","text":"The bonds traded in the China Interbank Bond Market may be difficult or impossible to sell, which may impact a","page_number":83,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"cf63c639-7456-4f9c-ac88-ea25ca75852d","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":83,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"6aadf207-2bc4-472e-adaf-72f78b5d639e","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":83,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"c4b3b3c3-7ce2-4341-81e1-0a157faf8f04","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":83,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"4b5d7eb7-4deb-437b-8502-66cc26db7ccc","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":83,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"c8945ee0-23c1-4120-8b7d-e8c3951cc6ea","block_type":"box","text":"systems of China and Hong Kong differ significantly and issues may arise based on these differences. In the event","page_number":83,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"87e8a2e1-db06-4b6b-8e42-49c4a00f99d9","block_type":"box","text":"that the relevant authorities suspend account opening or trading on the China Interbank Bond Market, a Fund’s ability","page_number":83,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"98278a91-bb36-49c2-8da7-eaf0f9403fac","block_type":"box","text":"to invest in the China Interbank Bond Market will be adversely affected and limited. In such event, the Fund’s ability","page_number":83,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"36347e07-122a-4a5b-bd91-e1c2f36a1de5","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":83,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"2548c7dd-d6b7-4d06-a59e-d5d7e29f7a73","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":83,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"08d1f3c2-e196-42f7-9d77-08121e45b8b6","block_type":"box","text":"acquire or dispose of bonds through Bond Connect in a timely manner, which could adversely affect the Fund’s","page_number":83,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"a56759e2-9776-4ab8-b7fb-bafef02ae550","block_type":"box","text":"per formance.","page_number":83,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"93223cd2-3538-4d35-9b1f-52511daf3a4a","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":83,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"a8d00f4d-3d04-49fc-b111-badbdb2fe166","block_type":"box","text":"There is no assurance that such systems will function properly or will continue to be adapted to changes and","page_number":83,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"70d57f99-9beb-48f6-afe3-816e83fcd960","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":83,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"ea2e023e-9051-4cef-996f-b6d54dbb5a21","block_type":"box","text":"Connect may be disrupted. A Fund’s ability to trade through Bond Connect (and hence to pursue its investment","page_number":83,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"b81e388d-faac-48db-82c2-0fa5b06e24e2","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":83,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"f578ffed-959a-4d1a-8043-1a917c33b4d6","block_type":"box","text":"through Bond Connect, it may be subject to risks of delays inherent in the order placing and/or settlement systems.","page_number":83,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"70825e99-2999-481f-a3a1-1d517f42cfb6","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":83,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"dd5bafaf-bfc9-4e97-8ecb-4c0c0d13b0fb","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":83,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"dd4aa2c3-1828-41d7-9c2a-df9d20f14b7a","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":83,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"6b0b4cfe-9b1d-4fd7-91bc-088c722e6c98","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":83,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"9a818af9-bd64-4bd3-a41f-14781bdf195f","block_type":"box","text":".","page_number":83,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"ec502050-c464-47e0-af20-077f36bfb663","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":83,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"67c42c21-d67e-4b8c-9b46-17171aba986c","block_type":"box","text":"interests from non-government bonds paid to a non-PRC tax resident enterprise, unless the rate is reduced under an","page_number":83,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"b9dd1b17-0e1c-4caa-86ac-72e22a5c7467","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":83,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"321c8bfb-b023-478e-85d6-037a2f677d7b","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":83,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"6438a874-b72c-406c-a705-d0ba0ff4dee7","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":83,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"e0e0c1e4-ceff-482f-80a7-f45e63c96bd9","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":83,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"d3d22141-b0e7-426d-86e4-5d56034eac47","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":83,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"d53b4d4a-25a1-4c8e-a589-5a543ef60bd8","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":83,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"3ad284a7-c349-47d2-ba8a-1b10b04c1582","block_type":"box","text":"(“RQFIIs”) from tax on capital gains derived from the trading of shares and other equity interest investments on or","page_number":83,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"ee9559ae-c539-4990-814d-a3a3242d04da","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":83,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"f4a5a149-1fc4-479e-92cc-c82d07702d23","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":83,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"500e4527-3c6a-4f47-b641-fff98d039e74","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":83,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"797476d5-ebc3-4108-a542-b2eb772661a8","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":83,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"2ab933c7-335c-4398-9999-bffa65b1c951","block_type":"box","text":"temporary exemptions is not stated in the circulars and is subject to termination by the PRC tax authorities with or","page_number":83,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"9ba5400b-782f-4306-90cc-f7904711b36f","block_type":"box","text":"without notice.","page_number":83,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"97bbfe57-04a6-48b6-8385-8d679874cb5b","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":83,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"a15efc68-889a-485e-a134-898feb1b1740","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":83,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"61e8ec19-0d45-4943-9636-a59a4120a400","block_type":"box","text":"the PRC bond market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA","page_number":83,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"1e625d80-2d50-4369-9295-ba92b315113b","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":83,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"6fc810e7-e251-43ce-8ef3-636bc1e799ab","block_type":"box","text":"January 15, 2026, it was announced via Public Notice No. 5 of 2026 that the exemption was extended through","page_number":83,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"0a5295da-c033-49f6-9c9d-12b5e235b50f","block_type":"box","text":"December 31, 2027.","page_number":83,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"1a3939f8-097a-4150-b2aa-ba3297664e15","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":83,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"18887f52-3da4-43f6-9702-35f717190599","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":83,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"95bacd42-0bf5-467f-b6cd-d943261f937d","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":83,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"b93faac2-ace5-4e23-9a87-abe1c758c21b","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":83,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"9c6bb4c7-0d95-48b2-b304-1bff180af9a6","block_type":"box","text":"II-46","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"446a96a0-11ea-45d0-8f0c-0a6db374895a","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"92fdd810-c9fd-43e1-9fd5-070a5916cad7","block_type":"box","text":"VAT exemptions currently apply to capital gains from trading of QFII and RQFII products, A-Shares traded on the","page_number":84,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"90e46d83-d55b-442e-8010-fc28f493cd47","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":84,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"980b1282-a0cc-4d0c-ba99-b73763a873c7","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":84,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"1c0277be-961a-4c73-b75b-8e0042e087f5","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":84,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"5517ff1e-f8e4-415d-b47e-cafc6407a0c5","block_type":"box","text":"market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA jointly issued Public","page_number":84,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"b00df850-1711-46cb-961c-b5e17c51f2f9","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":84,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"7193ae74-e8b4-4170-8c70-88f4cce35f64","block_type":"box","text":"July 31, 2025, the MoF and STA jointly issued Public Notice No 4 of 2025, stating that VAT will apply with respect to","page_number":84,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"ebdb0991-638a-47c1-8d4b-581c7293c87c","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":84,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"5b1671d8-1ffb-47ac-8fa2-9578be9ab48e","block_type":"box","text":"August 8, 2025. It is understood that Public Notice No 4 of 2025 does not supersede the afore-mentioned exemption","page_number":84,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"44dc2496-f995-4446-9461-afd194b3cad9","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":84,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"eb2c4409-4498-4063-8a70-fe29a91b35b3","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":84,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"fce119de-2857-436d-b9f7-aa02501dd440","block_type":"box","text":"tax authorities may result in a loss which could be material to the Fund. There is a risk the PRC tax authorities may","page_number":84,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"88c79726-86b8-45ac-9ea1-d1ee2fc661cd","block_type":"box","text":"withdraw the temporary tax exemptions in the future and seek to collect taxes realized on the sale of A-Shares or","page_number":84,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"ed57c3eb-0f1b-41ae-bbb3-9063d2a9bbf1","block_type":"box","text":"PRC sourced interest income on non-government bonds received by the Fund without giving any prior notice. If the","page_number":84,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"a9cf8414-8bfd-42bb-a40b-8bb481d27b29","block_type":"box","text":"temporary tax exemptions are withdrawn, any taxes may be directly borne by or indirectly passed on to the Fund and","page_number":84,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"67d8766c-5bfb-44f4-bf48-b5c87aa23905","block_type":"box","text":"may result in a substantial impact to its net asset value. As with any net asset value adjustment, investors may be","page_number":84,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"473d4afe-621c-45df-9560-8080a448f564","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":84,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"46a21371-f8df-4877-afd3-765e2c8b104a","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":84,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"d2aefb3c-a5ff-4076-92e5-f0470a88b1c1","block_type":"box","text":"BlackRock will keep the provisioning policy for tax liability under review and may, in its discretion from time to","page_number":84,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"44df8515-5e39-416f-a787-0275ec31e82e","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":84,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"457f1c37-2cfd-4b7c-b996-1b8a1850ac03","block_type":"box","text":"the PRC in notifications.","page_number":84,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"d9ea4b13-c326-4c99-a66e-9325a6f7e4d2","block_type":"box","text":"Investment in Other Investment Companies.","page_number":84,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"01c8b284-c514-4064-bd11-5d07dab01089","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":84,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"ab9bd456-fec6-4c01-8b01-ca644fcdadf4","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":84,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"3526d637-d4b4-41cc-9506-96c47906a6d5","block_type":"box","text":"market funds and ETFs, which are typically open-end funds or unit investment trusts listed on a stock exchange.","page_number":84,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"772e3b3d-16f5-4616-8144-484d8d578aac","block_type":"box","text":"Under Section 12(d)(1)(A) of the Investment Company Act, however, a Fund may invest up to 10% of its total assets","page_number":84,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"848611ff-5fed-43a4-91e3-a556cf0c4276","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":84,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"8c223992-19a3-4dab-93ad-45732cce9410","block_type":"box","text":"12(d)(1)(A) of the Investment Company Act a Fund may not acquire securities of an investment company if such","page_number":84,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"c43a67d8-fce6-4667-aeca-cb76d8313236","block_type":"box","text":"acquisition would cause the Fund to own more than 3% of the total outstanding voting stock of such investment","page_number":84,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"de1e030f-4609-41de-9666-861b966dd1a3","block_type":"box","text":"company and a Fund may not invest in another investment company if such investment would cause more than 5% of","page_number":84,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"f69d05ed-c505-424b-96da-7fd14a745994","block_type":"box","text":"the value of the Fund’s total assets to be invested in securities of such investment company. (These limits do not","page_number":84,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"63a82642-3900-4c6b-a5f1-fc9e503bc2bd","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":84,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"94a67eca-edf1-4556-9083-29affee1958e","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":84,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"fea756e6-a449-49d5-84da-252dc3aadb70","block_type":"box","text":"Act a Fund may not invest in a registered closed-end investment company if such investment would cause the Fund","page_number":84,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"1e4a5458-738a-4215-be5e-72028b6ae56d","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":84,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"e6e15bdd-b426-4892-8afa-87f4db8da307","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":84,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"18fec9cf-acce-446c-ba1c-990fba7b0138","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":84,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"e76d7338-2b4a-47b7-b0b1-52f99f76194c","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":84,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"c40d8102-e858-47e1-8374-4b869a7fd87f","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":84,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"3a3800c8-6a06-4a8f-bc5a-054b7d7c01ab","block_type":"box","text":"subject to cer tain conditions.","page_number":84,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"b86eb46b-4915-45af-9d3d-1a3146ae961f","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":84,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"bef33ad5-ec51-41b2-9c12-cd5ff8d6afab","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":84,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"feb827a1-e549-4104-849a-b8c5e1037da0","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":84,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"31b08d04-eaaf-434e-ba09-62a930629977","block_type":"box","text":"held by a Fund that trade on an exchange could trade at a discount from NAV, and such discount could increase while","page_number":84,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"44814a38-9b32-4582-b0fa-ed4fe518337d","block_type":"box","text":"the Fund holds the shares. If the market price of shares of an exchange-traded investment company decreases below","page_number":84,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"77f0fe21-311a-46af-a3bc-0feaf26f3042","block_type":"box","text":"the price that the Fund paid for the shares and the Fund were to sell its shares of such investment company at a","page_number":84,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"0682c2dd-a9c1-4b73-92a0-c974377fb9b2","block_type":"box","text":"time when the market price is lower than the price at which it purchased the shares, the Fund would experience a","page_number":84,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"0acca0fc-bc97-497e-a316-19694c8df67e","block_type":"box","text":"loss.","page_number":84,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"ee2b5008-f812-48bd-8ef8-3ea83a21e89c","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":84,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"fd02aab5-74d9-4ff0-b5a3-e114f5748af3","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":84,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"9dbc230e-8706-4c80-bc25-949e7e72917c","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":84,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"50a5cf24-2186-4869-96df-5f7625eb9a18","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":84,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"5f1d9490-5d6b-48dd-80f9-f8952d3c7756","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":84,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"c0a2c177-f74d-464f-9596-a450485c98a7","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":84,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"9a8767a7-b777-4a81-b027-24b1fc2feb94","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":84,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"aa4971b1-b88c-42b4-a106-d1941b094ce1","block_type":"box","text":"II-47","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"129953c1-cdf4-45d1-ae9c-58e2574f3b3c","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f49a46f-6ee3-4023-857f-0226c01e8f3f","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":85,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"a1beafa4-f61b-4e36-a669-35d283fb68aa","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":85,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"d7b228ad-8717-4868-91f7-ed947a0ae6d3","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":85,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"870d1429-4583-48a3-84f7-b4f2b1666dee","block_type":"box","text":"assets.","page_number":85,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"637da3e5-e1f9-4641-8f83-ba088b6ea818","block_type":"box","text":"To the extent shares of a Fund are held by another fund, the ability of the Fund itself to purchase other funds","page_number":85,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"d23adb62-9e1c-47da-99f1-02e960d56223","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":85,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"665b81bb-6fb7-4fcd-b5e2-d51fa1e1f6ce","block_type":"box","text":"e.g.","page_number":85,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"1ec57612-c323-4f76-a325-e4cd3711602b","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":85,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"d7bd4407-d530-487e-b471-b157acbc91d0","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":85,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"63fde1fd-f339-4d91-9ef6-a3e59c027567","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":85,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"f0f788c7-92f4-401d-a5fc-748b24b72c18","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":85,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"7db7e4ab-9d97-4c7d-bf88-b1b1fbb977b2","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":85,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"ac67dce8-dda7-4594-bdcc-973d7601b9a9","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":85,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"00e6a357-a57a-4f24-b11b-b41dedc5892b","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":85,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"801a9e43-fa6c-4bba-9981-5e90afbb728c","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":85,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"ee038734-ae7d-489e-8567-0073b203041b","block_type":"box","text":"countries.","page_number":85,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"5aa0fb3e-efec-45e9-99a2-4786907a9fdf","block_type":"box","text":"Issuer Insolvency Risk.","page_number":85,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"f8cdae05-786d-4b13-be7a-8bba1286ee22","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":85,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"f92920d6-9944-4333-802e-4201079d5418","block_type":"box","text":"a high degree of credit and market risk, which may be heightened during an economic downturn or recession. Should","page_number":85,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"dde2811f-e30d-493d-a2ca-a191b440f02f","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":85,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"e12a5d18-99c3-4bb4-b142-c9e9df7e01d2","block_type":"box","text":"restructuring, a wide variety of considerations make an evaluation of the outcome of the Fund’s exposure to the","page_number":85,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"ff147bfd-2bbf-4995-a65c-e92ff5b37ebe","block_type":"box","text":"issuer uncer tain.","page_number":85,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"d91bf75f-2cc2-4f3f-b46a-31a6fc81954e","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":85,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"e073132b-1120-479d-99b6-f509f08ea6a4","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":85,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"874357f3-dc01-4afb-a90e-8c1d6237c81b","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":85,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"137179e4-252c-471b-a3db-140333b00f5e","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":85,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"ef769752-2311-401e-abfb-53e2cd1193fb","block_type":"box","text":"in what manner and for what value the obligations evidenced by the securities of the issuer held by the Fund will","page_number":85,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"35236af4-d867-4fb9-8c43-5f592097b646","block_type":"box","text":"eventually be satisfied.","page_number":85,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"bcfef88d-bb41-4f1f-a914-fe5b43311a28","block_type":"box","text":"Even if a plan of reorganization or restructuring is adopted with respect to the securities of the issuer held by the","page_number":85,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"aa35e4ee-fa3e-47de-bb80-cc3723fa19ab","block_type":"box","text":"Fund, there can be no assurance that the securities or other assets received by a Fund in connection with such plan","page_number":85,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"6101345b-27f5-4577-82b3-15f3bf524d4e","block_type":"box","text":"of reorganization or restructuring will not have a lower value or income potential than may have been anticipated or","page_number":85,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"bde53d15-3a96-4ab8-83cd-a15f59e68172","block_type":"box","text":"no value. A Fund may be unable to enforce its claims or rights in any collateral or may have its claims or security","page_number":85,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"f58aba83-32dc-496c-891b-ff516505858a","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":85,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"b70c16a5-d6ee-47c2-b8c3-9436591e87aa","block_type":"box","text":"In addition, amendments to the U.S. Bankruptcy Code or other relevant laws could alter the expected outcome or","page_number":85,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"add61881-a776-4b63-a3de-4eb8a311b961","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":85,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"70036d4a-0da1-453c-bdc5-d84226b87d2c","block_type":"box","text":"proceeding, a reorganization or restructuring, the securities of the issuer held by a Fund could be re-characterized or","page_number":85,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"fe634278-1e28-4a19-b45b-113d71d76782","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":85,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"83dfe061-7ffb-4724-98af-b70496f2a625","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":85,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"824e264a-3877-4046-99b4-6b5e1561e250","block_type":"box","text":"and debentures conver tible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":85,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"8413e3a6-48d7-406e-9c52-102fcbebde37","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":85,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"4f0755d7-3a7e-47e8-b3cb-b4eee66c5b76","block_type":"box","text":"volatile than those of other asset classes. Holders of equity securities are subject to more risk than holders of debt","page_number":85,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"8a0f0e3c-5e86-4bca-9767-6fb39cae9453","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":85,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"ae35619d-3f8a-4b23-a8a0-ad64ba2ce95d","block_type":"box","text":"value of equity securities received by a Fund could decline if the financial condition of the issuer deteriorates or if","page_number":85,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"b36db1a4-029a-4890-b68e-d9e7181a494c","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":85,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"23cb1954-6b4e-4e98-8eea-1ec4529f1d90","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":85,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"2b4d9cf8-4391-4bfb-8897-63ed47c84247","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":85,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"9da95d7d-deaa-483f-a9a7-938f221a2683","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":85,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"c128e673-9948-4667-99b6-e3c67f833467","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":85,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"d4f887f3-5a06-4e7c-b60d-7da222b6e954","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":85,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"41df44cf-2960-47ee-bcb2-434530bb787b","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":85,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"9419b494-2dd0-4110-9ab3-276ae703d4fe","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":85,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"7b75ae9e-871f-4889-9dce-e5b58f689a43","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":85,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"fa3be226-a4f6-4764-a9f7-3ca5d93a96c5","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":85,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"22c31848-ad5b-4449-be4d-3dc77701fdde","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":85,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"f9a8ad06-a87d-465e-b5a4-e2931ad798a9","block_type":"box","text":"issuer held by a Fund, the Fund also may be restricted from disposing such securities for a period of time. If a Fund","page_number":85,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"a4e7b78c-4e48-41a0-b7f8-49ae2bb01f56","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":85,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"b490a4e1-6773-44ab-b0b7-fd9a1d0d0ec3","block_type":"box","text":"that assumed generally by an investor.","page_number":85,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"c094c70f-970c-4a1f-bd38-7e777d876cf1","block_type":"box","text":"II-48","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"820b67ad-bb6b-4c10-a49a-e188a0b62b97","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7dbc26a6-48dd-4d29-ba74-fd3c357a0815","block_type":"box","text":"Lease Obligations.","page_number":86,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"cbd115c1-f8ff-4f70-bdd8-d177ee1dac88","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":86,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"5845b239-60fa-4013-a6f1-75430daf1c4f","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":86,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"a4ae185f-2dab-4dde-858d-a947142f7364","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":86,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"c56333bc-ed3d-4b24-85c1-8a9a18d0d220","block_type":"box","text":"Life Settlement Investments.","page_number":86,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"bff1e94e-76fc-486e-9b6c-03a254f3d7ac","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":86,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"e28e731f-4742-4523-8cf7-e012daebdfe5","block_type":"box","text":"Fund, of existing life insurance contracts for more than their cash surrender value but less than the net benefits to be","page_number":86,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"78f2e029-cfd9-4214-b08d-617c314d59af","block_type":"box","text":"paid under the policies. When a Fund acquires such a contract, it pays the policy premiums in return for the expected","page_number":86,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"b2945c4b-0def-4022-8e62-af7878503aaa","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":86,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"f52338ce-b5a9-44f7-bbae-7e7894091877","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":86,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"83f2e8dd-26a4-46e1-9f03-24564769f92a","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":86,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"2ce5830f-7395-4016-bebe-78acd2ee0cc7","block_type":"box","text":"secondary market through life settlement agents. Also, in the event of a bankruptcy of the insurance carrier for a","page_number":86,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"853d915f-7db7-4f5b-82b0-00a53a9ddd5e","block_type":"box","text":"policy, the Fund may receive reduced or no benefits under the contract. A Fund seeks to minimize credit risk by","page_number":86,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"46a04936-7ad6-431d-8809-443221b86482","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":86,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"d0222c95-c305-4493-80b1-1389d8519c20","block_type":"box","text":"losses on its investments if there is an inaccurate estimation of the life expectancies of viators. A Fund intends to","page_number":86,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"cb548adb-92dd-41e1-afd3-098f71f0f383","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":86,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"88768bf2-bb22-4899-9d3a-42dd7080e6fe","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":86,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"7a84e378-15eb-4fe9-b2c6-b363c3e13060","block_type":"box","text":"addition, it is unclear whether the income from life settlements is qualifying income for purposes of the IRS 90%","page_number":86,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"a07069ab-c2ae-4740-a573-482f7d91d6ef","block_type":"box","text":"gross income test a Fund must satisfy each year to qualify as a regulated investment company. A Fund intends to","page_number":86,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"4e9a3be9-ffdc-4b32-82e7-24b1b301db47","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":86,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"d199c343-a69c-4351-858c-1bb1b773795d","block_type":"box","text":"Liquidity Risk Management.","page_number":86,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"5265f043-650f-4912-a63b-2d879c2630be","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":86,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"914dee90-df70-4385-b1ed-2423bf353116","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":86,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"c2f0f914-049d-41d2-a79c-027cc9afe402","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":86,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"cf465549-e925-430b-91a9-9d9ea874be96","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":86,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"7e851beb-3059-41dd-a5ae-9f6e46b6833e","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":86,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"b70bc292-dce3-43b3-a2a0-fc658d08ef43","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":86,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"4e73016b-7ae7-4646-bda3-89fb24b3b243","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":86,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"82c17d81-1604-46aa-914d-9deb43b5c879","block_type":"box","text":"“illiquid investment.” The Liquidity Rule defines “liquidity risk” as the risk that a Fund could not meet requests to","page_number":86,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"2b6dff36-7427-45e4-a4f7-a839b6113815","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":86,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"8a6dd8c2-cbfb-4892-823f-3384bd04bbfd","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":86,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"2c91903a-2ae9-469b-addc-b28f2d96a1f5","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":86,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"db737ad3-06dc-472e-ac3d-df1b63077077","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":86,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"f07f3d59-ac8d-4a23-8bb3-fda1276cd600","block_type":"box","text":"Master Limited Partnerships.","page_number":86,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"7612b31d-2658-4351-a44d-97c0dd0d86d5","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":86,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"fbcc55f9-6886-4bd2-8eb5-262157c98247","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":86,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"9f571e78-423a-4176-b7ea-ebd1a88a72a3","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":86,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"77a9da85-fdac-4d6e-b8bd-a1c7a2b31f75","block_type":"box","text":"pipelines transpor ting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":86,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"496236e0-09dc-43f5-9a66-6d43b5db3484","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":86,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"d44facc2-250e-4f4a-ad8f-b71c2af48ede","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":86,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"f998a3a3-ceb4-4e52-bc2c-893793bda34a","block_type":"box","text":"typically owned by a major energy company, an investment fund, the direct management of the MLP or is an entity","page_number":86,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"7beba281-d269-4681-bd83-6dd4ad716cdc","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":86,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"8d060451-2728-4123-8f9e-b644fb1498be","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":86,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"7d2cb785-e5e3-4344-a932-a9a790e836be","block_type":"box","text":"an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units.","page_number":86,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"eee0acc2-3b3a-41cc-87c9-6a9f0fa59393","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":86,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"9fd4b25b-64d0-4b4d-a285-3893e6838982","block_type":"box","text":"in the par tnership’s operations and management.","page_number":86,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"dd6e447d-2f19-435e-ae24-a36f5edfb9f0","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":86,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"db4f9cb6-eedd-4619-80a3-ba82d1ad2bb6","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":86,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"cce17882-08c0-4e86-8387-5d9f5e525b71","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":86,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"fd8db362-3f92-4961-9850-aa7755b9f0f2","block_type":"box","text":"Once common and general par tner interests have been paid, subordinated units receive distributions of up to the","page_number":86,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"6b52dc9c-44cb-46a2-8167-cbf94ec9e385","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":86,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"39dfec45-5b42-4360-bbc8-ce38f629ffb5","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":86,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"ecca4132-ca51-4ee8-bded-63aedeb621b6","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":86,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"0d0528e8-8d4f-4713-bdc9-43d145068873","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":86,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"ab1b12f1-a76b-4d2f-836d-960108586626","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":86,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"d618849e-6a7b-4ec4-844f-778e5db04079","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":86,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"51c43e85-8944-49f5-9f19-63945c6319a0","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":86,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"b2479337-0d76-417c-9858-d5a7b9df5203","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":86,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"5ab67563-891a-48c2-9884-24a9e7250fd1","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":86,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"4924d3e1-29be-4a6a-b97d-75fbea8ae975","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":86,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"cc5098bb-0c47-48c5-b4b2-19ba3fc1d841","block_type":"box","text":"II-49","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9bda330c-5d70-4fe6-953c-2213faf42fc3","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"42bb0bf7-0e1e-4821-8b8b-689e9d25adb8","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":87,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"3c79036f-7375-4083-9381-6371d5011563","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":87,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"1d02cb3b-0d42-4078-9e7e-f579038a60a9","block_type":"box","text":"success of the MLP. Cer tain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":87,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"b0d907da-8533-455a-bf0f-faf25099a4a9","block_type":"box","text":"common stock of a corporation, owners of common units have limited voting rights and have no ability to annually","page_number":87,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"d465644a-19e0-4eaf-a950-641b6d7f9f24","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":87,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"133b898b-7056-43d4-9cd7-1d515ec896a0","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":87,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"46bfb049-c968-48af-a086-b229b5e1296e","block_type":"box","text":"Merger Transaction Risk.","page_number":87,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"df8c892f-ebb5-4453-bf1a-4babd113ee96","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":87,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"e66f5302-3462-44b2-989c-dc810970f04b","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":87,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"fe362c9a-7abc-44cb-aa40-b661afe4ad13","block_type":"box","text":"in cash, stock of the acquiring company or a combination of both) in excess of the purchase price paid by the Fund","page_number":87,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"b4004f60-522a-4760-ad13-ac478105de48","block_type":"box","text":"for the target company’s stock. However, a Fund is subject to the risk that the merger transaction may be canceled,","page_number":87,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"49ffd208-a554-4772-8062-a81dc6d1762a","block_type":"box","text":"delayed or restructured, in which case a Fund’s holding of the target company’s stock may not result in any profit for","page_number":87,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"6ff553e9-aa5c-4cc4-ba7e-b30dabe1c9fa","block_type":"box","text":"the Fund and may lose significant value.","page_number":87,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"5973ff25-a032-497a-a33a-fe68ebf4f04c","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":87,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"952f9f9c-22e0-43c1-8905-f2531f6cddd6","block_type":"box","text":"Cer tain","page_number":87,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"e2f23ea7-4cba-4759-883a-bb20e20b38b4","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":87,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"154f8ccd-e5c7-4c9e-832d-cb6c1a724375","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":87,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"51c05237-6a33-4ef9-9083-8c7724eb4a7b","block_type":"box","text":"having total assets at the time of purchase in excess of $1 billion. These obligations may be general obligations of","page_number":87,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"d8c8f64c-1ca3-43ea-aa7b-6279edcbbe9e","block_type":"box","text":"the parent bank or may be limited to the issuing branch or subsidiary by the terms of a specific obligation or by","page_number":87,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"3c25d718-0f3b-4110-a65a-4851592106be","block_type":"box","text":"government regulation. The assets of a bank or savings institution will be deemed to include the assets of its","page_number":87,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"f5d4770e-30b6-4afa-9cbb-f5c7aec7beaf","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":87,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"198bcd38-e940-4a84-8572-0f31aeeb71c2","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":87,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"426fa6fb-f9f4-48ab-b48e-2eea0644c19f","block_type":"box","text":"branches of domestic banks.","page_number":87,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"28374228-acd2-40ec-976e-78bde63665ef","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":87,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"6bdf05a2-0677-46b1-930e-b892879940b2","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":87,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"1a9ef628-558b-4bba-be45-baab3b7a1124","block_type":"box","text":"Canadian counterpar ts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":87,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"8a409e04-2b6c-4005-a7eb-41381469e237","block_type":"box","text":"paper of a foreign issuer.","page_number":87,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"0841ef5a-6f95-4247-b85b-c68b22879f70","block_type":"box","text":"Money Market Securities.","page_number":87,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"50c99d11-28e6-4f0f-b292-ff6231216578","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":87,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"6c97c66b-6da3-45e6-b169-9ae2abd55112","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":87,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"67b6bba8-2601-41a1-b2fd-d4569aa81e8a","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":87,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"d0c1326a-daf1-418b-97b2-06d80dca1f83","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":87,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"0eb2367b-3f37-45fc-aacc-fa5f43aa37c5","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":87,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"a717a049-dcaf-4ba7-b4ac-4f19c62ecec3","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":87,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"34501d7b-573d-4c1f-a888-c7b4fd4d43f8","block_type":"box","text":"other issuers rated (at the time of purchase) A-2 or higher by S&P, Prime-2 or higher by Moody’s or F-2 or higher","page_number":87,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"09634e80-96c9-4903-8c9c-33f5a2eb7a5d","block_type":"box","text":"by Fitch, as well as high quality corporate bonds rated (at the time of purchase) A or higher by those rating","page_number":87,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"37aad4d2-7620-442b-8565-38afcfa02a10","block_type":"box","text":"agencies;","page_number":87,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"90da021f-1b06-4c17-80f9-6614738d59d6","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":87,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"a340bb66-f44c-408d-8ec5-78f58e6b4270","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":87,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"7393576d-533e-42d2-8667-cd69329135be","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":87,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"1c46b69b-315e-4f45-95cb-9aee05b899a7","block_type":"box","text":"obligations and credit card receivables);","page_number":87,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"1e67a1a8-78f8-40d5-9cc7-b6a50af1deec","block_type":"box","text":"(e) securities issued or guaranteed as to principal and interest by the U.S. Government or by its agencies or","page_number":87,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"a97efa1b-4fe1-4d6a-8185-a4e26291bd2f","block_type":"box","text":"authorities and related custodial receipts;","page_number":87,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"4abab647-21f6-40f2-9b29-43d2d763c84b","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":87,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"1a357669-8146-494b-88f2-8f316e3a02ff","block_type":"box","text":"agencies or authorities;","page_number":87,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"82fb89f9-0290-49d2-aa01-48713c7295c2","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":87,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"12bb2b30-a4ee-4771-9367-9effbd2eb763","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":87,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"91828304-6031-421b-ba53-252d10fdd3ce","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":87,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"855bbca6-b0b8-411a-a8ba-fcfc4ee98d9d","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":87,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"134c8a8d-e3fb-45ed-92db-651885090daa","block_type":"box","text":"one of its agencies or authorities or which otherwise depend directly or indirectly on the credit of the United","page_number":87,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"4e92daea-96e0-46a4-99ad-a17850cc12cd","block_type":"box","text":"States;","page_number":87,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"09d79902-749e-4c78-a3da-880a649973a4","block_type":"box","text":"(k) fixed and variable rate notes and similar debt instruments rated MIG-2, VMIG-2 or Prime-2 or higher by Moody’s,","page_number":87,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"838a00d1-9c76-4ca0-898a-f2a9df86d1d6","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":87,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"39b7753f-ea6f-4543-94ba-f98e7042010b","block_type":"box","text":"(l) tax-exempt commercial paper and similar debt instruments rated Prime-2 or higher by Moody’s, A-2 or higher by","page_number":87,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"ca03ccf4-a00a-41f1-891a-faf7126cf8d5","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":87,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"31fee823-68a0-4ab3-b5b1-7d8e4ab54006","block_type":"box","text":"II-50","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1da8f200-37ee-4761-a91c-e23c145d69a1","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3f65fa5e-bc05-47a2-91d2-4b0ec230a05c","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":88,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"ddbe4877-c8b6-4410-90a1-e98d4877dcf0","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":88,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"63f9e970-b6eb-4c97-99a5-d7cd579c3ad1","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":88,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"1d543da6-b4d9-4eaa-bb2b-c447b26cb012","block_type":"box","text":"(o) municipal bonds and notes which are guaranteed as to principal and interest by the U.S. Government or an","page_number":88,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"2fcb21a8-1aa2-48d5-9213-5250f9a83587","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":88,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"2526b81a-8855-4fcc-8daa-e8934c098300","block_type":"box","text":"States.","page_number":88,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"c146ab47-77d4-4006-a4a5-4768f0ae9703","block_type":"box","text":"Mortgage-Related Securities.","page_number":88,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"68269b48-de4c-4098-b8de-3ec15783ddaa","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":88,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"1631e500-cc53-4786-9780-fb197967e273","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":88,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"7ab7a1ab-2c81-40fb-b707-de591ff6384c","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":88,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"aebc3136-56a3-419e-b39c-cc8b83275b56","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":88,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"412a6bbd-4c8c-4fc5-aba5-ee1fd15af0e4","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":88,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"3eba6918-d273-4c07-9e3c-26f91e04c72f","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":88,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"856998b8-64f2-4e1d-86ad-54ea2d1c282e","block_type":"box","text":"maturity or specified call dates.","page_number":88,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"3709241f-b53b-442f-849d-26e5e09fc5c0","block_type":"box","text":"Mor tgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":88,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"714156fd-7cb5-40ee-a876-4da1a2756e82","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":88,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"e054617b-fec1-485d-855b-a3b409694fdc","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":88,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"fd27579c-3351-4e91-9aa1-26c8142c017e","block_type":"box","text":"par ty to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":88,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"9c7e067b-c26b-4be8-9254-5a0addaccbd7","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":88,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"7d38d30a-c467-4fa1-bc42-bc1ee810051f","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":88,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"cc466eef-f34c-4d3d-8168-50341defa7d4","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":88,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"800839e1-7cb7-4ab5-a491-7c6c875c22b6","block_type":"box","text":"in prevailing interest rates, and, like other fixed income investments, the ability of a Fund to utilize these instruments","page_number":88,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"bfeb24c1-3794-40d6-a0f8-5e676d1b1bbe","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":88,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"9be526c7-5cb3-49ac-ad48-297b38ccb3d9","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":88,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"abfcc375-3909-412e-a54a-d018bd74d1fe","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":88,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"afdf4564-fb71-4403-a076-c7e8ca4e578d","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":88,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"d6d0d8a5-a906-4ba6-9382-298bf283e9ec","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":88,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"50c2249f-9281-4abc-a7d3-4dd3cc6ecabd","block_type":"box","text":"average life of the securities are based on a number of factors, including the anticipated rate of prepayment of the","page_number":88,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"a244f9df-77c6-4ddd-9cfa-dc08036b6aec","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":88,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"e975fdf5-acd1-495d-bb21-da8d9b39e9b6","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":88,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"3ae2b66c-16a3-4c75-bfb4-1f698d1a00d1","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":88,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"76b20d06-baa2-4617-ab52-b4ab8a287ed9","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":88,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"817971b4-30e3-4e1d-aa90-15dbf01188ca","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":88,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"74d8ade7-b2a0-41b8-b5a0-7ad5465b612e","block_type":"box","text":"principal prepayments may result in a loss to the extent of the premium paid. If a Fund buys such securities at a","page_number":88,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"aae54ec3-a321-45c0-823a-dedb027d36d6","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":88,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"524ab45f-9efb-4303-a055-e40ec7f17052","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":88,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"6df05c7c-bc18-429f-9047-2a4e6553093d","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":88,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"ddb6dafc-e555-40df-a393-aa77bf4b867d","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":88,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"119cbd6f-788b-44f4-85d3-7e5c876a6f59","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":88,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"b9252e9b-8570-41ec-bc23-716565ab5859","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":88,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"b1f007ba-f0e7-4621-b443-b849adcae762","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":88,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"99ad5598-4ef0-464d-9662-fd738002747c","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":88,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"a3ad7f6c-f7ee-48ed-86c3-e847c081b121","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":88,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"0e3956fa-9d32-4d79-bf34-89b3006f2292","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":88,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"b4517903-2add-46fd-be1a-798bc4fe970e","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":88,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"f4f3cd49-8586-4318-8bf4-4184d0643c5a","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":88,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"f0f4bc12-7000-4383-b39d-7a7dbd6df083","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":88,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"4d5f4bd2-ea07-4491-a790-a7c0629a7d3d","block_type":"box","text":"securities issued or guaranteed by the U.S. Government or one of its agencies or instrumentalities; and (3) those","page_number":88,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"b584d689-5260-45a7-a67f-2fbb367ff5aa","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":88,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"525d1e9a-69f4-4d31-ad6d-f7096f5ee352","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":88,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"bf97e419-a660-4c82-9661-33b868397ce0","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":88,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"67dc842a-c387-4cd3-8902-c1bf5702605d","block_type":"box","text":"Development. Ginnie Mae is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely","page_number":88,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"3a196cb1-dd66-43a0-a54e-441996778abb","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":88,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"eaa430d4-4756-4fef-96a4-cc06473dc261","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":88,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"f4acb9be-cc64-4a74-bd38-fcc1a9b1ccb3","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":88,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"de213ec6-e237-4909-90f5-3224f289b698","block_type":"box","text":"II-51","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ed3db7e0-9074-424e-a9ec-18dea91ce272","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f2d09ef7-a06d-479f-a8a4-95dce02cd5da","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":89,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"15a0a0eb-52ab-4ee7-a7d5-1fad8324ade7","block_type":"box","text":"payment of principal and interest by Ginnie Mae, whose guarantee is backed by the full faith and credit of the United","page_number":89,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"40e33ff0-c765-4180-8ad6-fda0103892a3","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":89,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"b3b65f86-f922-48a5-878f-5e9564a20345","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":89,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"23598b1d-b0e9-4b13-b1f7-4da18ae60082","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":89,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"6f50bc79-71f6-491b-9739-d9a286dc73f9","block_type":"box","text":"guaranteed as to timely payment of principal and interest by Fannie Mae. They are not backed by or entitled to the full","page_number":89,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"8bd34c31-96f7-48d7-87fa-01f070133590","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":89,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"9d813e8f-9d3d-4c7f-9d70-16719317ec2e","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":89,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"5302e4e7-e5f1-4c78-926a-0e39c73f05e2","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":89,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"c637b985-f78d-4397-85f4-4b576562ae66","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":89,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"9b5328c7-0f27-406f-a3c6-a51f7e82026b","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":89,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"911870b6-77c3-4fdb-8eba-53862c2d2f4f","block_type":"box","text":"Home Loan Banks and do not constitute a debt or obligation of the United States or of any Federal Home Loan Bank.","page_number":89,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"04efad3b-646e-4dc6-ab21-b49c6cef109d","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":89,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"cba7fb40-070f-4c2f-bd51-c8538739352d","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":89,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"429567f8-ae14-4532-87b4-1362b877b7b8","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":89,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"4ebcb499-353e-467b-bc15-a2b1d5af9e32","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":89,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"c4dcebec-5da0-4019-ad4b-44aa0c7fcc5f","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":89,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"b0d343a3-e727-4798-a1e1-64f0d653f471","block_type":"box","text":"Private mor tgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":89,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"471d72b2-7170-47c3-b9c0-37c6c596b107","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":89,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"3908783d-2def-4b24-8bdc-48d926c4b823","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":89,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"97e5245f-c845-4609-912b-40722d5fe635","block_type":"box","text":"Pools created by private mor tgage pass-through issuers generally offer a higher rate of interest than government","page_number":89,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"180f00eb-472c-4c09-9cb2-8fb5eb723bdd","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":89,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"6df52e13-5f42-40ef-807a-4aaa37f40d3c","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":89,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"ad738615-e55e-4820-a92f-3c0d5cbf58e1","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":89,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"e3c1de1d-ed57-4749-aa4e-01ebe23ed64a","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":89,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"17225be6-bd8c-4c97-8b28-6449402de64d","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":89,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"59ffbf9e-ee06-4837-b03a-27986b866cc0","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":89,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"55ca49ff-944a-49ee-ba0b-25483520c0dd","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":89,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"ab5f02ef-a9be-4848-be63-ad6ff336efcf","block_type":"box","text":"mor tgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":89,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"14cd57fe-9095-4d98-b034-f77f39e284ba","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":89,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"0f7b2148-13b1-4628-a31d-69ffaea28f54","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":89,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"6641c032-eef1-4a3f-8aac-3bed47961c2c","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":89,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"82dc4250-5a2c-4666-9810-095744f41a2b","block_type":"box","text":"In addition, mor tgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":89,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"d8947323-224a-45fa-a6b5-42f822a45586","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":89,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"2154c70c-426d-4803-9c05-c958ffaadc0c","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":89,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"d6037877-af6b-41fc-b99c-c4c289982597","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":89,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"8420b518-9584-429a-b503-177a7a383f9b","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":89,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"db370eda-7981-4546-8f52-4405ed4436e8","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":89,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"107d91de-05b4-4192-be53-ef7bde50498e","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":89,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"9e318697-ea73-403e-a17b-912002b83eee","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":89,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"01213e65-3f29-42fd-b1b7-d7833eed58bd","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":89,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"abbbeef1-8bae-4bb7-aac2-f17fd30bb0ed","block_type":"box","text":"loans. Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to","page_number":89,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"e33061c9-68f9-4b27-832c-dadf05636926","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":89,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"1b129d74-8c34-4a65-8715-4ec0ad4f418b","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":89,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"652f3138-93b7-4af4-b513-3b50fc8e332e","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":89,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"8236c455-ac9e-4965-901f-a165101290b4","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":89,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"0d487eb1-92ae-49fa-a343-dcf9b0d1a1af","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":89,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"ce93ecc5-1f3f-4b72-bb82-4d4633ddc2ba","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":89,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"a13b3ad7-4909-4787-8dcf-f5bf9276c29a","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":89,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"6087d973-4715-4016-9072-cd92471b071f","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":89,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"19d7af87-c746-4014-9169-df04b06d5a96","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":89,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"d48734bc-9f3e-4aab-a1e0-fd3087dae982","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":89,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"fe090d89-acb3-4675-8cc7-e396e3104298","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":89,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"ede6a9af-fac9-4320-a5da-5b4c4c151838","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":89,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"6f3dbc91-d5fd-43d9-850a-2fc54378754b","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":89,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"8f55b629-adce-4347-a0be-066da08012e5","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":89,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"210c2a8c-9bb4-4b96-9921-d0e47733d719","block_type":"box","text":"II-52","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"aa39343f-6b5a-414a-8fbf-aa1646e6acd1","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"07644ff7-ac20-4e92-a7c0-c5cbfdd03183","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":90,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"ea9c473d-a92c-4795-882e-e49c676eb799","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":90,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"1c6f6f19-1203-463d-b10a-7b40fd934aa3","block_type":"box","text":"by Ginnie Mae, Freddie Mac, or Fannie Mae. The issuer of a series of CMOs may elect to be treated as a Real Estate","page_number":90,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"b0a5e31c-36eb-4375-b847-40da5b8e51d0","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":90,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"a147b615-f194-4107-b46c-2cbac876e522","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":90,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"7a8d9135-deb8-4156-aaaf-03b37772a8b7","block_type":"box","text":"or fixed interest rate, and bearing a different stated maturity date and each must be fully retired no later than its final","page_number":90,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"ae195c23-52e9-4c99-aabc-bed6336a44be","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":90,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"8ac98a42-32d9-4215-999b-692a460c1e3b","block_type":"box","text":"is ordinarily unrelated to the stated maturity date. CMOs often provide for a modified form of call protection through a","page_number":90,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"58b8b4ff-4d3e-4d34-ace4-7be7d064ec23","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":90,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"356eecd8-af82-4d6e-a8b7-76925e42b455","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":90,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"7d3ce00e-082f-4391-8e08-bfb449c670bd","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":90,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"1f8223d4-e960-48a7-a3c3-cc5192d6b350","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":90,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"e9496116-138e-4904-974c-d1a64b098021","block_type":"box","text":"of principal because of the sequential payments.","page_number":90,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"2623f246-ce50-46b3-8ebd-6cd967679620","block_type":"box","text":"Cer tain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":90,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"fabda106-8fab-4892-b810-f4b38f906c3f","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":90,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"5988e67d-6a96-4c41-a29c-6d825a9dc4bf","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":90,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"1c36d22c-55cb-464c-85ab-edf9bb254f52","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":90,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"deb79f6d-3ae4-4fe1-9753-f6580250541f","block_type":"box","text":"on the rule, are also not subject to the limitation of the Investment Company Act on acquiring interests in other","page_number":90,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"fd68d62c-9988-463e-9bd2-636ceffe1b38","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":90,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"772aaf95-12b1-4ff9-ae2c-b651f2e2010c","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":90,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"d454c600-fc99-4263-94e9-7e9912e29a6e","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":90,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"a32f68a9-29c0-470f-809f-70a6c72be446","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":90,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"1ccc7900-ea1a-4a87-9623-3379077cb596","block_type":"box","text":"To the extent that a Fund selects CMOs that cannot rely on the rule or do not meet the above requirements, the Fund","page_number":90,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"553c616b-12bd-46b2-9e03-dc382e3202d7","block_type":"box","text":"may not invest more than 10% of its assets in all such entities and may not acquire more than 3% of the voting","page_number":90,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"a65b0e7a-bfa7-4d94-af93-3077087c5cce","block_type":"box","text":"securities of any single such entity.","page_number":90,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"70b96bbc-3bcf-459f-b651-83e22b740f24","block_type":"box","text":"A Fund may also invest in, among other things, parallel pay CMOs, sequential pay CMOs, and floating rate CMOs.","page_number":90,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"a4138d76-a152-43c2-874d-279bbe2a0463","block_type":"box","text":"Parallel pay CMOs are structured to provide payments of principal on each payment date to more than one class,","page_number":90,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"d4929ae3-4ce5-4330-9be3-b1f2adfc0b8e","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":90,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"c749525c-1fff-49e1-8fcd-5195bdccf837","block_type":"box","text":"calculating the final distribution date of each class. Sequential pay CMOs generally pay principal to only one class at","page_number":90,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"b1a76963-3a9f-42c6-946a-3889b01c4033","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":90,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"b20ad7d6-59ea-419e-b4d2-bb4d8dd84240","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":90,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"54d587c9-e85c-468d-b692-6ce3e3c5f129","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":90,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"a995465d-6a31-41e8-9d4a-e6048fbba328","block_type":"box","text":"and are conver ted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":90,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"a7102aab-1230-4cdb-9116-b0fda9c07a3f","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":90,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"ebb56cfd-d1b6-4e47-b5f0-04e573023465","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":90,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"2d550e69-5642-4398-a6ac-e0f1d40ee7bd","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":90,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"28a39de3-4eff-45e0-86b0-cd4d61dc673f","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":90,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"fe03b34c-cfb4-4028-b80e-4091d472a3b3","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":90,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"00b2fdc0-12d6-4c9a-bbed-7346c4fc7b79","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":90,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"aefc63cb-3865-4cf6-8077-20b827597312","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":90,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"96acff2b-f6e7-4817-9e2b-5b52b79ca820","block_type":"box","text":"the final distribution date of each class of PAC. In order to create PAC tranches, one or more tranches generally must","page_number":90,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"02280220-f974-4947-b027-e84d0d760e41","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":90,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"58af8be9-c1cb-4106-94c2-ef1dacf553be","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":90,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"55f97bbb-6bb4-4c08-8148-9dd369c8392c","block_type":"box","text":"classes.","page_number":90,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"c74170ce-66c6-4cac-93d8-ef3ed9690724","block_type":"box","text":"TACs are similar to PACs in that they require that specified amounts of principal be applied on each payment","page_number":90,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"544b0e8d-2f80-4fe7-a30d-38ef9c60d8fe","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":90,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"ae9ba558-233e-4008-af9f-ab7bc70db836","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":90,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"062f7ac8-6363-420e-aed8-49febb34f68c","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":90,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"4165cc26-098c-4825-bc7e-dff574cdec25","block_type":"box","text":"not both. TACs thus provide more cash flow stability than a regular sequential paying class, but less than a PAC. TACs","page_number":90,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"b145aac2-31ea-4824-85c8-2f3a7415c310","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":90,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"369c4d7c-2fac-441d-8f22-76d67942e2fd","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":90,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"0476ee1c-4e95-4c60-a4cf-69e6f162dba6","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":90,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"d8822fac-8c82-4a07-bfa4-49d1829196ea","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":90,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"b8f4176b-b87e-4508-a114-c67fec42dc5f","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":90,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"5463a1d9-895c-4083-a1b4-0fed375277df","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":90,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"2db4055b-84d1-44d0-abdf-af0f88420d96","block_type":"box","text":"to a designated benchmark index.","page_number":90,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"baab71f6-71aa-4471-b52a-b83d8e2a6deb","block_type":"box","text":"II-53","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a2d01021-65bc-4da1-8243-395cb00715b0","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"691a753f-8e4b-49ce-af36-b538b29c336c","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":91,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"49e9c7b4-0314-45e3-959d-d0d84b8781e9","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":91,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"23d1da1d-cf29-41ca-8c77-e9988a58d22d","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":91,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"42b1303f-235f-4972-895d-7037e29a160d","block_type":"box","text":"more rapidly to levels above that of the ARM’s maximum rate, the ARM’s coupon may represent a below market rate","page_number":91,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"f2bd3452-08e1-48da-8269-6901c9543629","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":91,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"455d2ad0-5aea-4ac6-abba-6263a6d7eba8","block_type":"box","text":"Cer tain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":91,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"7f01e4cf-dee3-4d41-8cc7-f59c875a3096","block_type":"box","text":"payment is not sufficient to pay the interest accruing on an ARM, any such excess interest is added to the principal","page_number":91,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"66242370-657c-4229-9fb4-a969391ec5e2","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":91,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"163276da-1d13-488b-9901-d39f1f901188","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":91,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"d9fa2b19-1749-4f4a-b870-04e0f3cb5faa","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":91,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"69b30c70-e459-47b4-ac72-0e44c4f82583","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":91,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"43ffa847-3f93-41b2-8971-0144ff247a20","block_type":"box","text":"CMO Residuals.","page_number":91,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"5a3f5da6-96d3-413d-afe4-4ce12e5117fd","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":91,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"11ecbf77-f49e-487a-aff9-071dea53a2d7","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":91,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"f97eea67-bf5c-4662-b02a-aff9e051aee6","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":91,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"18832ce3-d106-4251-b6e4-ba93740917b4","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":91,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"d747bed4-2db3-4c6c-a07f-e21e55f2b054","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":91,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"3d409b60-7ab6-4f70-a79b-1b015846eea3","block_type":"box","text":"any management fees of the issuer. The residual in a CMO structure generally represents the interest in any excess","page_number":91,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"5ca63bd4-39f7-496c-bcca-2fd5f9a0ba87","block_type":"box","text":"cash flow remaining after making the foregoing payments. Each payment of such excess cash flow to a holder of the","page_number":91,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"72dd7fea-7e85-4183-a790-daf1b2ce1cea","block_type":"box","text":"related CMO residual represents income and/or a return of capital. The amount of residual cash flow resulting from a","page_number":91,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"dcbd7bd6-4757-4577-af98-527ea1cc2311","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":91,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"e4c2c24f-c96e-403d-915e-b3a640e343e9","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":91,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"184d5327-ad11-4e65-9b5b-18214ed86905","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":91,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"dc6902ef-c019-4a6a-9289-12097a656b87","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":91,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"2b47cf44-c72c-47b1-a2fb-b46573e43590","block_type":"box","text":"securities. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate, the yield to","page_number":91,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"6f5edc5a-3773-4d0c-91af-b9f707798898","block_type":"box","text":"maturity on the related CMO residual will also be extremely sensitive to changes in the level of the index upon which","page_number":91,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"f1d667a1-9e31-47a7-9fe4-0807f4f68b20","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":91,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"e68aa917-e29d-4ba2-82bc-06c5fd5f0484","block_type":"box","text":"a CMO residual.","page_number":91,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"fee7bb25-8127-4006-a707-609a0bd5fa70","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":91,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"80c3413e-7985-42e9-8cb6-3100f28f80fe","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":91,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"dfd6950d-6238-4920-a4b2-69a7479941d9","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":91,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"5ce05376-cf16-4ee2-92eb-8d1a56b7b0b7","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":91,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"93430b75-dc0a-4419-891c-47bfb104d06b","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":91,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"e8983b1e-df07-4770-9832-4b6666102516","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":91,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"a4371a2f-3aa5-479d-8aa1-f7ceacfa8ebb","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":91,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"32484597-9dee-4945-9412-b0173b8275c6","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":91,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"cf9130d6-da26-4010-bad8-80e69e41595e","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":91,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"2caf97e4-6f9b-4ffb-bcf7-74bd311d12ce","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":91,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"c8622cd5-8458-4e24-9835-ef420386e5cd","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":91,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"26141669-ed87-4841-b14c-f3725cbe6677","block_type":"box","text":"principal only or PO class) receives some of the interest and most of the principal from the underlying assets, while","page_number":91,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"11553190-6dac-45c5-b8e2-3a601ed2fc72","block_type":"box","text":"the other class (the interest only or IO class) receives most of the interest and the remainder of the principal. In the","page_number":91,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"ef0c0a2b-6974-4ca2-baf2-e81d75edeba9","block_type":"box","text":"most extreme case, the IO class receives all of the interest, while the PO class receives all of the principal. While a","page_number":91,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"12099356-1ac4-4b81-8e6d-213b86bdf8c2","block_type":"box","text":"Fund may purchase securities of a PO class, a Fund is more likely to purchase the securities of an IO class. The yield","page_number":91,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"902c1296-e9d2-4688-a20f-b784ccb0bd94","block_type":"box","text":"to maturity of an IO class is extremely sensitive to the rate of principal payments (including prepayments) on the","page_number":91,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"65a33e91-83d0-4219-82c8-6c5bc0f01ed8","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":91,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"079cd235-01f3-4637-8320-f7a31adfc5cb","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":91,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"b512cdb3-07f7-4005-b0a7-84eb1baed1e6","block_type":"box","text":"experience greater than anticipated payments of principal, a Fund may fail to recoup fully its initial investment in IOs.","page_number":91,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"ff814abc-f558-4c9c-9662-d5125824cbf9","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":91,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"94242f38-69e3-4508-9a9e-f7265432c69b","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":91,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"5ab7475f-70b7-4bea-a1b5-c77ac8c8fdd9","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":91,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"73a8bb89-ae8f-42ed-95a4-ff72b306fce6","block_type":"box","text":"generally will purchase IOs only as a component of so called “synthetic” securities. This means that purchases of IOs","page_number":91,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"14528991-a89b-4091-ae52-fdacee118de0","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":91,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"ede5413e-1a35-41c0-8d06-81bb5b285997","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":91,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"e3df92b6-05a4-4dc5-bcd4-45a8df11118c","block_type":"box","text":"effect on a Fund because of its holdings of IOs should be diminished somewhat because of the increased yield on","page_number":91,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"2c08e25a-427a-4fae-8720-f7e6d2a12eb4","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":91,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"28a7799a-017e-457c-8115-e099922165f8","block_type":"box","text":"Tiered Index Bonds.","page_number":91,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"0c5b682f-dd15-4e79-9b4b-345991120a20","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":91,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"3cb50471-c475-4983-80ab-0e0097c61f1b","block_type":"box","text":"index bond is tied to a specified index or market rate. So long as this index or market rate is below a predetermined","page_number":91,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"506db29d-930d-4da3-bcd9-17c083d1cf35","block_type":"box","text":"II-54","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1361674d-155d-4285-aa3e-b9c43901d765","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"11a2379b-5650-49c9-963b-a395cfc80d15","block_type":"box","text":"“strike” rate, the interest rate on the tiered index bond remains fixed. If, however, the specified index or market rate","page_number":92,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"cd7d0cfc-ceb0-4bdb-aa26-dd0efca9ab9e","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":92,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"ece9fc44-6238-494e-bafc-ca519ae58009","block_type":"box","text":"circumstances, the interest rate on a tiered index bond, like an inverse floater, will move in the opposite direction of","page_number":92,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"7440ad71-1961-48ad-9ede-5ba59156a332","block_type":"box","text":"prevailing interest rates, with the result that the price of the tiered index bond may be considerably more volatile than","page_number":92,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"5d3c1163-84a2-4898-b0cc-e700e3633baa","block_type":"box","text":"that of a fixed-rate bond.","page_number":92,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"2621bfc4-32fe-42f3-96c8-97503969aa1f","block_type":"box","text":"TBA Commitments.","page_number":92,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"4606b46d-e159-4b38-908d-69bbe9e063bf","block_type":"box","text":"Cer tain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":92,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"849ebb55-9368-41a8-a431-1237a86518d6","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":92,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"51fbd046-8234-4705-b01f-50bfa00a6e0a","block_type":"box","text":"with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not","page_number":92,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"406f4e9e-47dc-496f-bbbf-f7fe0218e728","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":92,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"14348a97-adcd-461c-9860-889537fa3dea","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":92,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"d4367cb9-4703-4d38-a6e8-b3fdbd0284de","block_type":"box","text":"price, with payment and delivery on an agreed upon future settlement date (which may be referred to as having a","page_number":92,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"b8823c41-1348-47fc-92ae-7cb149ed2c46","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":92,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"9802500e-ef30-451f-9239-b14879fe1121","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":92,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"0611362b-d82c-4208-b395-8e467034561e","block_type":"box","text":"below.","page_number":92,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"8091a205-67ea-4b85-bac1-6427d5475fed","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":92,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"5c1ed26d-5542-4039-ac0e-3f0fab3ec07a","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":92,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"9aa98b15-cbb1-4583-988e-ccf8f88c30cd","block_type":"box","text":"Fund sells mor tgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":92,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"08bb037f-4ada-46a2-aa71-da9245f27ff9","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":92,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"23a1c4df-f893-4145-8438-829246477f8b","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":92,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"febf8fdd-6683-4961-b4f6-5d00435e34ab","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":92,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"3893f8d4-a141-44bb-8588-8b8e17b25c25","block_type":"box","text":"be entitled to receive interest and principal payments on the securities sold. Proceeds of the sale will be invested in","page_number":92,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"1f5b2a20-92c7-4979-af86-185898b5d1ed","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":92,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"dc9e4fb3-8b1e-4cd8-bb13-21837d4beec5","block_type":"box","text":"such income does not exceed the income, capital appreciation and gain or loss that would have been realized on the","page_number":92,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"baf87d14-0e69-45a3-b985-faadb39bc8b0","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":92,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"33f6f3d4-6082-47eb-a10f-329f73dbdb4f","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":92,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"03a55849-30b0-4d5d-85f8-f7fde74a9fb4","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":92,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"c063a75a-5cff-4135-ba21-d4487de68941","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":92,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"84780e21-8a50-4de4-a379-b2a6fdb655bf","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":92,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"3b85e6c8-6ccf-4722-8c1d-af6625bf5e09","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":92,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"fade8772-7a1c-402b-a85b-9938c1fd5a89","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":92,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"83d6981d-911f-441d-a233-c02bf9dc66eb","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":92,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"e1d510ec-fb28-46f5-b991-2b9d037377f9","block_type":"box","text":"securities in the forward transaction.","page_number":92,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"9da54ff5-6fce-4878-97ca-ec0926b9a793","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":92,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"973b48a4-be8b-441a-91e8-c419fb6d9ab6","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":92,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"4d1664af-bc56-46fe-b72e-99956f1584f3","block_type":"box","text":"that the market value of the securities subject to a Fund’s forward purchase commitment may decline below, or the","page_number":92,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"5e383b8f-0f5f-4af3-8d52-35cacafa3cf6","block_type":"box","text":"market value of the securities subject to a Fund’s forward sale commitment may increase above, the exercise price","page_number":92,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"27b567c2-2d48-472c-94f9-018707722cb3","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":92,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"cea93c4b-bfe2-43f1-a4e2-2e3518787920","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":92,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"8687a9c4-02a7-4249-9aaf-6cb958ed240d","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":92,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"0307b886-0d71-466e-9925-f208be93cea0","block_type":"box","text":"securities (","page_number":92,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"4ac979ec-8ba0-4229-b9ee-7470975ee1bd","block_type":"box","text":"e.g.","page_number":92,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"28102ec2-8dca-4f84-a3e1-3e8284794bb7","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":92,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"fd86c71c-7694-4f15-a510-a1aab0cace3f","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":92,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"0c2d548c-e25d-4553-b119-07e101e23620","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":92,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"9617e5ca-caf2-4028-a1de-9c9813d6c242","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":92,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"5a8af3d8-61fc-402d-9738-1e810822d3b8","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":92,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"4ddc04e8-ddeb-4750-8521-c55220897971","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":92,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"361f580e-83a3-4de6-9b77-3ed9541d2a45","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":92,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"30c470f6-0983-449b-8dbf-c32be4592202","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":92,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"1b78cc6b-608a-4efe-b85f-abb17ca17519","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":92,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"64eeface-b039-4ba7-8c02-bd0ecd5cd461","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":92,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"86e5d2be-e916-4b70-bbde-8a751d0e7103","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":92,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"eafbc3c9-e28d-4603-a828-196bf75706f2","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":92,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"20feed89-288f-4a02-af1f-eadc17fd2007","block_type":"box","text":"securities, the yield to maturity on a NIM security is sensitive not only to changes in prevailing interest rates but also","page_number":92,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"19f384ff-88f3-45e8-bb90-95d45040ca1b","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":92,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"768ca857-424f-4a1a-985f-a9dc72be5fa5","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":92,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"2d073292-db3a-4fc5-9df4-9f1752943c6d","block_type":"box","text":"Municipal Investments.","page_number":92,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"4e8858c2-62a6-47d5-b1f8-f137d28cafd2","block_type":"box","text":"II-55","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"188ed79e-ff1e-4630-a745-094f862eb52c","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d325a2e4-54b8-4dc3-8660-ec0891376fca","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":93,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"8b6d7329-7f21-4b16-be23-96f0efda17ce","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":93,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"7a4859b2-9302-44fb-8e71-f7374353e2d6","block_type":"box","text":"payments from which, in the opinion of bond counsel to the issuer, are excludable from gross income for U.S. federal","page_number":93,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"48e4fa14-808d-4e31-bacc-8b8b7b891d31","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":93,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"24bbb4a7-5567-428d-9ace-ecad4ea96a60","block_type":"box","text":"pay interest excludable from gross income for purposes of state and local income taxes of the designated state and/","page_number":93,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"372c4989-730c-4da8-abb5-957fdbccef69","block_type":"box","text":"or allow the value of a Fund’s shares to be exempt from state and local taxes of the designated state (“State","page_number":93,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"d6abe9df-0b02-4ada-9ebc-66e92bf4abd0","block_type":"box","text":"Municipal Bonds”). The Municipal Funds may also invest in securities not issued by or on behalf of a state or territory","page_number":93,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"64897f34-6859-47ae-b0ba-02dc48f4b66f","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":93,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"52b1d85e-a581-432f-b5fd-b061d539684b","block_type":"box","text":"gross income for purposes of U.S. federal income tax and state and local income taxes of the designated state and/","page_number":93,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"231dcdd1-526e-4787-a87b-0fa68b4052ff","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":93,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"d11b1189-368f-430e-a402-a43227b1d77d","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":93,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"884cf74f-e95e-44d8-98d5-70a99366492c","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":93,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"43383258-bd6a-4031-82e8-d142e5e58b6b","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":93,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"ef61329f-69d3-4004-872f-a4cfd5327930","block_type":"box","text":"law. Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for U.S. federal income tax","page_number":93,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"dd225aed-3ba8-42dc-911c-3c54c42b327b","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":93,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"aa639993-2f0c-460f-a69e-4d384f3970c7","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":93,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"86602358-384d-4201-a2d7-e510b721a373","block_type":"box","text":"income tax and state and local income taxes of a designated state and/or allow the value of a Fund’s shares to be","page_number":93,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"a71893ea-74f2-4720-b09d-3b7375c7440a","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":93,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"d1527694-c116-4b69-be2c-1c2318467a55","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":93,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"213c19cc-c6e9-46fa-97f1-b5a4cd4c158e","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":93,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"27cc5e5e-5e7d-4b31-92bf-71b15df78717","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":93,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"12b9f2e2-5fff-4b84-a7e2-b590c72e302b","block_type":"box","text":"The risks and special considerations","page_number":93,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"4473343e-72ef-4303-a74a-ea33dbab5d86","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":93,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"d510c73c-2327-49ca-944e-9df81c1a71dd","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":93,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"d41e6a17-9806-4034-b61a-9db10006b880","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":93,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"2b6235f8-91a5-4d01-b39f-dbafcb4b8d51","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":93,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"288792b3-17f0-4469-b985-bbeb390dfb5d","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":93,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"61e313c3-0ae3-47b5-a446-cc59eb57db54","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":93,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"74604de6-5a71-45cb-9cff-6bddb5203f2f","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":93,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"dcf8df79-644f-4ed2-84e0-159bd5070349","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":93,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"ed8d0ab1-f3f5-4f79-869b-0edcf955311e","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":93,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"8de5a6c7-dffa-44e6-a68e-821f7533b58d","block_type":"box","text":"II-56","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e706d8a2-0023-486a-8ba0-f901833a3f8d","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a022130d-df5d-469d-bab7-79d3b999007f","block_type":"box","text":"Description of Municipal Bonds.","page_number":94,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"42a792f6-5e2b-46e9-9cbc-ae63d2660bf3","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":94,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"7aaf37f4-61d8-4f0c-b8e9-c86f8438efef","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":94,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"c571321d-1907-4e84-8425-d314e0749fa1","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":94,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"29ae1e71-370a-4ff1-816d-c49c11c57dbd","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":94,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"a7ebdc42-fc91-49ea-977b-c803ba1ed5c3","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":94,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"013c257c-f5ec-40e4-bbdd-84444eeb6d0c","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":94,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"08b17e4d-e905-4af4-a20b-1196bf11a96c","block_type":"box","text":"excluded from gross income for U.S. federal income tax purposes and any applicable state and local taxes. Other","page_number":94,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"97e65565-1dfe-4262-b3e5-1abaf2d7d1f1","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":94,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"3723cbd5-0995-4446-9a78-2367cadc3b3f","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":94,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"07f03dc7-f8d8-4cae-80b1-e6db39c6ce22","block_type":"box","text":"federal tax laws place substantial limitations on the size of such issues. The interest on Municipal Bonds may bear a","page_number":94,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"390ee208-bfff-4e8a-8c42-b6570311209e","block_type":"box","text":"fixed rate or be payable at a variable or floating rate. The two principal classifications of Municipal Bonds are “general","page_number":94,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"75fd408d-1f2d-41ce-b6d6-741d3a2c16b7","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":94,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"117a9c07-88fa-41b9-9f28-70feff19a237","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":94,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"839ed3cd-f40d-476b-a337-914839775db8","block_type":"box","text":"General Obligation Bonds.","page_number":94,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"ea6f5967-e8fb-4056-8d43-1cfd3b773bf0","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":94,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"f8b2351f-9b81-4f3f-a5d9-0ef5fcd0bd88","block_type":"box","text":"taxing power for the payment of principal and interest. The taxing power of any governmental entity may be limited,","page_number":94,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"75a3253e-83a5-409a-99b3-daed8f3af5e7","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":94,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"c0bdc8c9-1f15-4a7a-b6e1-af2d88a2049a","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":94,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"abb14704-6c0d-4022-8ff6-706855c2200e","block_type":"box","text":"industrial base or inability to attract new industries, economic limits on the ability to tax without eroding the tax base,","page_number":94,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"ab7e18f1-0190-43f4-8106-7f2107955cc6","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":94,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"06baa0c3-c953-484a-b680-85f9605a7be1","block_type":"box","text":"relies on federal or state aid, access to capital markets or other factors beyond the state’s or entity’s control.","page_number":94,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"f609c591-1658-4404-86a5-8db43d69dcaa","block_type":"box","text":"Accordingly, the capacity of the issuer of a general obligation bond as to the timely payment of interest and the","page_number":94,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"c0497600-d812-4d48-a8f2-75eda80179a3","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":94,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"64d4cff0-7173-4386-aa34-a920cb88bdb5","block_type":"box","text":"Revenue Bonds.","page_number":94,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"1983551e-392e-4c38-8b37-53200e1d5168","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":94,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"4e9f0fd0-00cd-4715-8a9f-a0f3d6de2450","block_type":"box","text":"facilities or, in some cases, from the proceeds of a special excise tax or other specific revenue source such as","page_number":94,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"b138a006-3867-4535-a103-52386bcfc612","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":94,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"5fdaf683-9794-48a5-b7be-b8316573374d","block_type":"box","text":"of principal in accordance with the terms of the revenue or special obligation bond is a function of the economic","page_number":94,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"635ec5f9-5950-4d63-81a0-6bfc0f7eb4ae","block_type":"box","text":"viability of such facility or such revenue source.","page_number":94,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"2136dcf9-471a-4fe7-9df0-77f587e10e71","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":94,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"e358ca79-3a05-41f9-a0f6-3c48e1a6a786","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":94,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"3962910e-886b-4564-84c5-ebd900988353","block_type":"box","text":"proper ties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":94,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"e0b51452-c076-4c9a-97f8-0c47b29dd57b","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":94,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"de490a90-5ea9-4690-af11-4d428060af4c","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":94,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"1627439e-ed82-4bb9-8ba1-668db0774e25","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":94,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"851cd262-3cb5-402f-b263-8fe157f8e51b","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":94,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"878f60e3-6016-46dd-b480-95a655903f8b","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":94,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"f726cf76-86ba-4601-90db-04a4b27ad5e4","block_type":"box","text":"PABs.","page_number":94,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"986f5615-a8bc-4364-9f16-9155cb7f47b5","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":94,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"260e6453-45f0-4e4d-a4d1-ba5b2c080f50","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":94,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"a99967eb-cab5-461f-b3e8-5c36840c425c","block_type":"box","text":"construction or improvement of a facility to be used by the entity. Such bonds are secured primarily by revenues","page_number":94,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"d4cff473-d643-4eca-9ad0-062be17031a6","block_type":"box","text":"derived from loan repayments or lease payments due from the entity, which may or may not be guaranteed by a","page_number":94,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"cb4d84c4-6614-4a62-a0f0-ba7e3fd83738","block_type":"box","text":"parent company or otherwise secured. PABs generally are not secured by a pledge of the taxing power of the issuer of","page_number":94,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"63a25dfc-ee30-47cd-a18b-129abcaf9394","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":94,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"47fd2b8f-aa7a-4108-a4ae-0a16050835d5","block_type":"box","text":"revenues of a private entity and be aware of the risks that such an investment may entail. The continued ability of an","page_number":94,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"2261b47b-4e6c-48a1-8485-6b2eb09fbf1a","block_type":"box","text":"entity to generate sufficient revenues for the payment of principal and interest on such bonds will be affected by","page_number":94,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"f7b8466b-0549-4c25-94c8-f11a790e22d9","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":94,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"d3751a2c-5404-428f-8b81-403909adea5d","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":94,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"db688cbd-3880-4bea-9cde-62e7ea411932","block_type":"box","text":"the par ticular facility being financed.","page_number":94,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"5ff0751b-05a3-4aea-b2cf-9e48942f6488","block_type":"box","text":"Moral Obligation Bonds.","page_number":94,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"e40712ed-d520-4d3a-8aaf-baebe8f0a67c","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":94,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"9479b166-bf84-4484-86a3-e6ec262e6643","block_type":"box","text":"issuer of moral obligation bonds is unable to meet its obligations, the repayment of such bonds becomes a moral","page_number":94,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"b995883c-2e66-4baf-86c1-b7a3d03e56de","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":94,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"3e1173a8-2ff8-4995-b1f8-5633bf245246","block_type":"box","text":"that issued the bonds.","page_number":94,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"494cec15-dbae-431f-b718-23270c4e9b3a","block_type":"box","text":"Municipal Notes.","page_number":94,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"024efbdf-de6b-4355-8a2e-1fe85d24a99b","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":94,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"fd454ef1-2152-4f7f-a551-d3cc281651dd","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":94,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"d14b17be-682c-4751-8a04-9aad24d99068","block_type":"box","text":"repayment on the note may be delayed or the note may not be fully repaid, and a Fund may lose money.","page_number":94,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"15ff8d87-f917-40e1-b6d7-62321e21cca7","block_type":"box","text":"II-57","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d6a3b209-ecfc-4d21-81bb-c58cfe6e2e82","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"657a4ac6-acfe-4314-8028-dbe64a058ede","block_type":"box","text":"Municipal Commercial Paper.","page_number":95,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"5ea64e43-aa00-4ca9-b144-5a7ddf211efb","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":95,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"2d8aa30f-5d67-422c-b2c5-00269f8ed9a0","block_type":"box","text":"financing needs. The lack of security presents some risk of loss to a Fund since, in the event of an issuer’s","page_number":95,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"57e261a8-f2c0-4b9c-affb-7e4624435d36","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":95,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"8450e208-0a51-417c-ba46-1065f73dd62e","block_type":"box","text":"Municipal Lease Obligations.","page_number":95,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"11d2bbd8-803b-40c3-b8ec-a3aaefdeb55f","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":95,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"c2649826-878a-408e-911a-49d423a629b8","block_type":"box","text":"par ticipation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":95,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"cabe6b31-25d7-4fee-9ace-f102cc0560d1","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":95,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"b6889c6b-36d6-4ded-a49f-a9ccc54f4da5","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":95,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"421c9410-2ecb-4a48-b9bc-d7fd317473ed","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":95,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"16604e87-c6d7-4d73-82d4-764338e7aaab","block_type":"box","text":"lease obligations do not constitute general obligations of the issuer for which the issuer’s unlimited taxing power is","page_number":95,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"ac790830-4399-4650-bcdb-222cd52102c7","block_type":"box","text":"pledged, a lease obligation is frequently backed by the issuer’s covenant to budget for, appropriate and make the","page_number":95,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"3c925c82-9651-4f6b-8807-bd17bd201bf0","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":95,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"2cf9770a-b246-4e6b-9c72-761b88e71b91","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":95,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"05ffc0ba-cc3f-4782-9884-0e6de813bd02","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":95,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"f5c32e4c-e7ba-404e-b40e-e92fc088bed0","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":95,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"ce897ccf-eacd-4849-9f83-45399aea1a87","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":95,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"4e8648bd-1587-4618-b5c9-202afcbc64d0","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":95,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"3eb033b6-da3e-4f9a-a0d1-21b78030ef22","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":95,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"f9052a23-9881-45cd-84f1-745260953250","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":95,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"8c95e39d-fc1f-4300-ad54-fa5533fbcdbd","block_type":"box","text":"and local governmental units. Such non-payment would result in a reduction of income to a Fund and could result in a","page_number":95,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"455cbbe2-121c-4c11-b096-9da5701bc226","block_type":"box","text":"reduction in the value of the municipal lease experiencing non-payment and a potential decrease in the NAV of a","page_number":95,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"1d2af5c8-1cc5-4d9a-8882-e495df2572da","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":95,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"2296513b-e824-4cb3-a0a5-739339fde22b","block_type":"box","text":"such an issuer, a Fund could experience delays and limitations with respect to the collection of principal and interest","page_number":95,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"8d6dac12-6d60-411b-9e73-3ca450d71b0b","block_type":"box","text":"on such municipal leases and a Fund may not, in all circumstances, be able to collect all principal and interest to","page_number":95,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"0a2710aa-42b5-4c38-aea9-d9c060ded9b9","block_type":"box","text":"which it is entitled. To enforce its rights in the event of a default in lease payments, a Fund might take possession of","page_number":95,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"cddedff4-68c5-4424-9bab-e05c6b0e0e6e","block_type":"box","text":"and manage the assets securing the issuer’s obligations on such securities, which may increase a Fund’s operating","page_number":95,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"42fce3f4-6e97-4656-a3d7-2d6008927499","block_type":"box","text":"expenses and adversely affect the NAV of a Fund. When the lease contains a non-appropriation clause, however, the","page_number":95,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"4e69ca97-644d-4584-88ca-fe893aef74b7","block_type":"box","text":"failure to pay would not be a default and a Fund would not have the right to take possession of the assets. Any","page_number":95,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"39957f0b-57d3-495e-905a-060aae992ecd","block_type":"box","text":"income derived from a Fund’s ownership or operation of such assets may not be tax-exempt. In addition, a Fund’s","page_number":95,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"9859c27d-c250-45cf-a1d9-c3d71b45e44c","block_type":"box","text":"intention to qualify as a “regulated investment company” under the Code, may limit the extent to which a Fund may","page_number":95,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"72ac4ede-0132-4ec3-92fd-71e71e44f0be","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":95,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"92c3756f-1963-48fd-82ed-f2eb62ad8479","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":95,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"f87e3259-b51c-425d-97ac-bef84f8db548","block_type":"box","text":"Tender Option Bonds.","page_number":95,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"b0c67199-2872-4806-b728-fafb3af05c22","block_type":"box","text":"Cer tain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":95,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"b637b90f-a2da-4537-a53f-c4978afe2715","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":95,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"4c71213b-eb91-4b7b-bc2c-ae63f3702ad1","block_type":"box","text":"invest pay interest or income that, in the opinion of counsel to the issuer, is exempt from regular U.S. federal income","page_number":95,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"a12a6da5-9590-43de-8b45-d61cdf0b8c6e","block_type":"box","text":"tax. BlackRock will not conduct its own analysis of the tax status of the interest or income paid by TOB Residuals","page_number":95,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"89e1d94d-8612-42b6-b12f-44a73a8f2300","block_type":"box","text":"held by the Funds, but will rely on the opinion of counsel to the issuer. Although volatile, TOB Residuals typically offer","page_number":95,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"44b77268-03d3-44d8-b1ff-c6d59977ccfd","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":95,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"5c110218-a344-4912-a88c-944850ef0d22","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":95,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"b5754161-9074-427d-82b0-448df013d51f","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":95,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"3b1eeb1b-c3ab-4697-b69d-09fd604d0121","block_type":"box","text":"Municipal Bonds contributed by one or more funds (a “TOB Trust”). A TOB Trust typically issues two classes of","page_number":95,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"3b2e9c2d-48b0-40cb-a52f-8ec6e0379be2","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":95,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"9e934d77-5d91-465a-8d8f-6a8afea6790a","block_type":"box","text":"TOB Residuals, which are generally issued to the fund(s) that transferred Municipal Bonds to the TOB Trust. The","page_number":95,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"24d8ec21-5ca2-4890-8f41-fbf040918899","block_type":"box","text":"Funds may invest in both TOB Floaters and TOB Residuals. TOB Floaters may have first priority on the cash flow from","page_number":95,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"21fa5dc6-869f-4e25-a3ce-adef851d4a27","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":95,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"46e500ca-d921-4901-8556-6dfba2e5903d","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":95,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"111a8b13-9242-4757-af14-e729b61431b7","block_type":"box","text":"as a holder of TOB Residuals, is paid the residual cash flow from the TOB Trust. A Fund that contributes the","page_number":95,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"247ae342-5b4a-4f2b-8ca0-4a2eb4f49700","block_type":"box","text":"Municipal Bonds to the TOB Trust is paid the cash received by the TOB Trust from the sale of the TOB Floaters, less","page_number":95,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"5182e4dd-b866-41ae-9aac-a471666bc42a","block_type":"box","text":"cer tain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":95,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"8f0fa425-9b74-4b66-a7bb-85595dead29e","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":95,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"c82bbc67-fd3e-414c-8133-ca4143c23aca","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":95,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"2ec1e51e-33de-4fa9-a58b-3d2be4d18aa7","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":95,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"c9dc5ad7-e9ce-4f36-99e8-c53e3dfcb87d","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":95,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"0f69a5c5-9798-4f0d-9497-7779c3f8dd9e","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":95,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"e6ed925c-c81e-4077-972f-ac71fcea026f","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":95,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"82ef7780-b17f-44ca-96f8-9ec7192e839f","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":95,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"184d4b3b-8b63-4d28-959f-75f9d32ae6bb","block_type":"box","text":"II-58","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ff6bbe5f-a87a-4ee1-aeef-478d668a2e7b","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bf483e96-56fa-45ec-a425-878667f45329","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":96,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"32e0c2e3-88a8-485e-a710-fa42582fcbf1","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":96,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"57efc14a-3259-4b90-b8b9-a8674fc4d7e6","block_type":"box","text":"enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by","page_number":96,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"8098a663-56c2-445f-b9c7-40acf7afa2b6","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":96,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"c0c5e80f-ec84-4eca-a1a7-5410ec495e67","block_type":"box","text":"and a Fund, as a TOB Residual holder, would be responsible for reimbursement of any payments of principal and","page_number":96,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"a505608f-d4d9-4cc2-8242-89369d3bb68a","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":96,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"9a3b7094-f4b2-406e-833e-d9803a9a29ba","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":96,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"564a81ea-0fd2-417b-88d3-aae6854f4ba9","block_type":"box","text":"share of the TOB Floaters to tender their notes to the TOB Trust at par plus accrued interest. Thereafter, the Fund","page_number":96,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"c3367e78-cd2e-4b1b-b05f-039ba7a926cd","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":96,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"8e2f1511-ce67-4501-8506-4ad59a457941","block_type":"box","text":"exposure for the Fund to the entire return of the Municipal Bonds in the TOB Trust, with a net cash investment by the","page_number":96,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"388b0a12-db5e-4072-bfe4-2dea8cd9ad0b","block_type":"box","text":"Fund that is less than the value of the Municipal Bonds in the TOB Trust. This multiplies the positive or negative","page_number":96,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"b830ecfc-74c8-45f8-ac9c-e369faf53dd9","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":96,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"eecdc07c-7e21-4c1f-adc5-272f137363a9","block_type":"box","text":"depends on the value of the Municipal Bonds deposited in the TOB Trust relative to the value of the TOB Floaters it","page_number":96,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"ab7f6ce5-4d95-44c1-8bd4-d8ce1d75cf74","block_type":"box","text":"issues.","page_number":96,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"ac88f727-8b28-4022-829a-038654bafca6","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":96,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"b675c55d-ed5c-49b2-af91-1295502c7628","block_type":"box","text":"the principal amount of the TOB Floaters issued by the related TOB Trust exceeds 75% of the principal amount of the","page_number":96,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"50de0d5c-b63d-4669-a3a4-01fc3bd79d36","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":96,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"36fcd1ff-85d8-4633-bf14-c6eb5ef6c1f5","block_type":"box","text":"The TOB Trust may be collapsed without the consent of a Fund upon the occurrence of tender option termination","page_number":96,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"2a946481-1baa-42bc-8280-a5f9aaec6403","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":96,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"c40d443e-5cc8-40b4-9ff7-fa281a3e5527","block_type":"box","text":"include the bankruptcy or default of the issuer of the Municipal Bonds held in the TOB Trust, a substantial downgrade","page_number":96,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"3acdf28d-04aa-40f7-8f8f-b4947289a5ad","block_type":"box","text":"in the credit quality of the issuer of the Municipal Bonds held in the TOB Trust, failure of any scheduled payment of","page_number":96,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"6eb3d7d3-3df1-47e0-8289-6bf755a7231b","block_type":"box","text":"principal or interest on the Municipal Bonds, and a judgment or ruling that interest on the Municipal Bonds is subject","page_number":96,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"15bf23f8-3428-4d39-95f3-d9fa01099948","block_type":"box","text":"to U.S. federal income taxation. MTEs may include, among other things, a failed remarketing of the TOB Floaters, the","page_number":96,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"dcab863d-7f00-43b7-9a64-2e2f58a2395a","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":96,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"c159cb66-59e6-446e-b432-a10b5424953c","block_type":"box","text":"value of the Municipal Bonds held in the TOB Trust. Upon the occurrence of a TOTE or an MTE, a TOB Trust would be","page_number":96,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"76a70cef-3351-40b2-a5c8-fcf424f353e7","block_type":"box","text":"liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the remarketing","page_number":96,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"2d1d7239-12cc-4b51-b4c7-52b7fdd87d1f","block_type":"box","text":"agent of the TOB Floaters and the Liquidity Provider (defined below). In the case of an MTE, after the payment of fees,","page_number":96,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"b4d42bc1-55d4-4b3f-bdd5-83df521c2918","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":96,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"87fc27a8-fae4-4cf8-aa8c-4e1e8ea8b492","block_type":"box","text":"i.e.","page_number":96,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"d04d2aeb-f92a-411d-840c-d12d25783f1a","block_type":"box","text":", the Fund). In contrast, in the","page_number":96,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"a8969238-ad44-4c7f-8ace-e8a4a23e5f40","block_type":"box","text":"case of a TOTE, after payment of fees, the holders of TOB Floaters and the TOB Residual holders would be paid pro","page_number":96,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"e312a3f0-f902-48ab-b85e-43d0870954b5","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":96,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"72bc89d3-ee63-4d67-9382-3de94a2027a3","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":96,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"3b05dab5-fbd3-4fdd-b2f6-856f892041a6","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":96,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"67c1fd61-a8ce-4fb8-8bba-5399efaf0087","block_type":"box","text":"the holders of the TOB Floaters to tender their TOB Floaters in exchange for payment of par plus accrued interest on","page_number":96,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"92c4a498-7cdb-4bd1-94c6-3135719520a1","block_type":"box","text":"any business day (subject to the non-occurrence of a TOTE described above). Depending on the structure of the TOB","page_number":96,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"31cd6977-7b51-4f95-b894-0a52ed4cb20e","block_type":"box","text":"Trust, the Liquidity Provider may purchase the tendered TOB Floaters, or the TOB Trust may draw upon a loan from","page_number":96,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"09a73c7d-4f43-450f-bc6b-a58ded09d037","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":96,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"ba1b9f9b-affc-47a0-8d79-0de7d53dd394","block_type":"box","text":"When a Fund invests in TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to make a","page_number":96,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"65e57ee1-4dd7-407d-969f-7573f490682b","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":96,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"5c3868bd-1492-4574-86c5-607b5dbcb8b9","block_type":"box","text":"held in the TOB Trust and then fund the balance, if any, of the amount owed under the liquidity facility over the","page_number":96,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"64e8a980-2289-484e-8cc8-3034717c6746","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":96,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"eeb2ccd4-9b6a-4209-9698-352aa112bca8","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":96,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"d2d4be41-2d8f-437c-8327-8c85ca744b5a","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":96,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"863bb77d-7154-4bf7-9445-cb6af324930b","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":96,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"f070dccf-de2b-4ea8-a4f8-d4ad2a1d9f7d","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":96,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"587c07a5-385f-47f3-8f42-f521ce82d602","block_type":"box","text":"Trust.","page_number":96,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"078d1e6e-dad5-4714-8542-c718db5c016e","block_type":"box","text":"Under accounting rules, Municipal Bonds of a Fund that are deposited into a TOB Trust are investments of the","page_number":96,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"c29868f2-a3ad-4df6-babc-c7c3d6aed3c4","block_type":"box","text":"Fund and are presented on the Fund’s Schedule of Investments and outstanding TOB Floaters issued by a TOB Trust","page_number":96,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"78eab4cf-5253-4866-9459-4b75adaafb64","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":96,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"9476b8c6-24b8-4ec7-8f86-e849d9205a83","block_type":"box","text":"Municipal Bonds is recorded by a Fund on an accrual basis. Interest expense incurred on the TOB Floaters and other","page_number":96,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"6caab461-ed61-48f6-abed-c2389934546c","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":96,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"2f680016-ba02-49de-952f-7c02d240a2dc","block_type":"box","text":"of a Fund. In addition, under accounting rules, loans made to a TOB Trust sponsored by a Fund may be presented as","page_number":96,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"13946a9d-2589-411d-b968-fe4093b0b845","block_type":"box","text":"loans of the Fund in the Fund’s financial statements even if there is no recourse to the Fund’s assets.","page_number":96,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"73073eae-faaa-4ffc-9368-c8266bbe612a","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":96,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"e46c7445-3fd6-467d-a897-88be1709e660","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":96,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"6383a668-d350-4667-8811-5084018cfb43","block_type":"box","text":"II-59","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a2242a9c-2794-46af-b454-d0f1e6dd080d","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"877532d5-ab56-45d3-8d0b-e2b8d89f164f","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":97,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"252898bb-215e-4058-a581-b8cfb62e2cbf","block_type":"box","text":"Bonds deposited in the TOB Trust, the holder of the TOB Floaters relies upon the terms of the agreement with the","page_number":97,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"ec4b4c09-3889-427e-9592-7823d2516882","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":97,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"7ce3a328-073a-4d73-9ef3-f06fc476a374","block_type":"box","text":"with TOB Floaters, however, may be increased in the current market environment as a result of recent downgrades to","page_number":97,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"e6ec0a1c-bc10-4e29-ba88-87e7393f3349","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":97,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"ea32157c-1f21-4f30-9bfc-275773b44a40","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":97,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"d178e05a-f8f6-4615-94ba-2ab2dd7e74e4","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":97,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"db795522-4662-42dd-b7b3-b4d7d6eea9eb","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":97,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"faf529ab-2086-4cd8-af26-876728fc5486","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":97,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"c3f8f134-25d8-4969-9b36-24f6c31f0f6e","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":97,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"c4eab7fc-3127-4183-bffb-a2ce10d757c6","block_type":"box","text":"(i) complies with the 300% asset coverage ratio with respect to such transactions and any other borrowings in the","page_number":97,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"1beb0bcb-24e8-4a71-b3b8-90af5aef0847","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":97,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"c19f34fa-0f08-4bb4-8f52-0a574b772426","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":97,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"2ee4e5b8-4cd3-43b4-9951-92e8c748d315","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":97,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"910743c8-b4ce-4b04-9b8b-35a25dec0bbd","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":97,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"77653913-eb0d-41c8-aff7-4d8bccafa98a","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":97,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"3d4f9b67-a8fb-490f-84ed-66a345ed5467","block_type":"box","text":"ensure that no banking entity is sponsoring the TOB Trust for purposes of the Volcker Rule. Specifically, a Fund will","page_number":97,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"592c3e62-9afc-4f51-8399-7b789e5531b2","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":97,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"1b2b18b1-c5b8-4cef-a3f1-1964a794fbbb","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":97,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"9f841dfc-2c8b-428e-afb3-ef1f2d1b6f8b","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":97,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"aee78bad-ede9-49e8-8878-2c31c39876fe","block_type":"box","text":"could limit the market for such structured TOB Trust transactions or a Fund’s ability to hold TOB Residuals. Under","page_number":97,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"ec6bd872-e909-4a76-b25e-d3718238f078","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":97,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"25bc351a-7862-4068-9624-71945a706ec0","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":97,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"a5bb454a-d68d-4708-ab5d-c75e586222b5","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":97,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"b5124953-dc59-4f9e-abe6-88c8c5141154","block_type":"box","text":"remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual holder. Similar to the","page_number":97,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"cf1d68d9-dd36-4d54-82dd-e13ec376ec8a","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":97,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"c7e88125-beab-4fda-b52d-f6eebb733c34","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":97,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"1a1d7396-6833-444f-ae7a-f4d3d561cefe","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":97,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"56008ed1-7254-4de0-96cd-8ff054b38a33","block_type":"box","text":"i.e.","page_number":97,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"0d8d12d8-4db9-42b6-ba03-d327745db7b4","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":97,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"7c158e71-f6aa-499f-9edd-b31c076d2235","block_type":"box","text":"suppor ted by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":97,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"bdbdc1e5-1984-472d-8218-34d7c4988494","block_type":"box","text":"TOB Floaters for its own account in the event of a failed remarketing, which may increase the likelihood that a TOB","page_number":97,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"45c9c71f-761a-46d7-8904-f77e274f275c","block_type":"box","text":"Trust will need to be collapsed and liquidated in order to purchase the tendered TOB Floaters. In the event of a failed","page_number":97,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"24c6ab47-3fb3-466f-8597-b86b0e669428","block_type":"box","text":"remarketing of TOB Floaters, the Liquidity Provider, at its option, may advance a loan to the TOB Trust the proceeds","page_number":97,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"95798377-7448-4352-9240-b68b81dcdfc3","block_type":"box","text":"of which would be used by the TOB Trust to purchase the tendered TOB Floaters. The Liquidity Provider is not","page_number":97,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"a520a5c4-52dd-482d-aad9-9a12ce65e877","block_type":"box","text":"obligated to advance such a loan. The TOB Trust would be the borrower with respect to any such loan. Any loans","page_number":97,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"8fb8c2f9-bbbf-4201-99aa-1bbe025af18c","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":97,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"31ab10b6-8d85-425b-b11d-e8c7c448b5b5","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":97,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"4c4ebf87-3608-4cd8-a742-5846cf64a496","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":97,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"73a61006-cc81-44a0-92f7-aa08f1047923","block_type":"box","text":"contractual recourse to the Fund’s assets if the Fund holds a non-recourse TOB Residual. However, as described","page_number":97,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"d7d772a6-c716-4fc4-8bd1-63b2611941ce","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":97,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"e1572ac4-0e31-4c48-85c9-ba83aa20de00","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":97,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"7c0268dc-2b9f-4a69-baa6-930d29ed3eb2","block_type":"box","text":"(the “Risk Retention Rules”), which took effect in December 2016. The Risk Retention Rules require the sponsor of a","page_number":97,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"2e76ce51-8d72-44b7-a9e9-5c4627fc3097","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":97,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"9ce4015d-4c0a-4aa6-aeab-5ee81539018c","block_type":"box","text":"Bonds. The Risk Retention Rules may adversely affect the Fund’s ability to engage in TOB Trust transactions or","page_number":97,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"8d923ee2-ab66-4ca4-a2e3-1211b5f959e0","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":97,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"7637dbed-2af7-4451-abd6-af90a3fe0c93","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":97,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"b0944dfb-6e08-4c41-864d-c1bd1bf21ccc","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":97,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"e2818ef5-0646-4e56-bf88-b79e12ac346c","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":97,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"223b02ac-cdf1-4ca9-8298-86597c10d959","block_type":"box","text":"could adversely affect the Funds. The ultimate impact of these rules on the TOB market and the overall municipal","page_number":97,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"c82820a0-0d4a-49ab-bd99-235f4dd574d8","block_type":"box","text":"market is not yet cer tain.","page_number":97,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"59708152-4427-40b0-86be-b1e76fd8b969","block_type":"box","text":"Yields.","page_number":97,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"daff81fa-c170-4b07-af44-5d62846d309c","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":97,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"76fc16d9-0b2a-41b0-aef6-01a30b12820b","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":97,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"d3f288a1-f97a-4354-a232-844abedb169f","block_type":"box","text":"issuer, the maturity of the obligation and the rating of the issue. The ability of a Fund to achieve its investment","page_number":97,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"022d52ed-6f8e-4f1a-a763-ad3dfc631380","block_type":"box","text":"objective is also dependent on the continuing ability of the issuers of the securities in which the Fund invests to meet","page_number":97,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"f3bf0a03-226a-4c9a-9b05-3728f9cf937f","block_type":"box","text":"their obligations for the payment of interest and principal when due. There are variations in the risks involved in","page_number":97,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"4b58a608-85c7-4a90-831f-a7cd26d9c37b","block_type":"box","text":"II-60","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a190bb40-a91c-4333-9601-7f3e6dc1575b","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d61a6ea-91a5-4f75-a307-052e4f7001b8","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":98,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"5065b3b6-b46f-4dcf-834d-71972b0f455f","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":98,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"590585bd-f55b-4014-8bfc-368add521cb8","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":98,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"dceef0e5-0c58-4ec7-b225-d13ff9dcb07b","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":98,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"239ec988-0431-450c-8af9-718257d10d0f","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":98,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"8fcfb5a5-6fdb-48aa-8025-9b255089c337","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":98,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"67ea0b75-8217-4434-9ecd-dd16466fbebe","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":98,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"596d0032-3bd3-44b7-95d4-a3fb9dcbf96c","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":98,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"727007dd-bf7b-4cd9-9e1f-8b8c95cd4917","block_type":"box","text":"There is the possibility that because of default or insolvency the demand feature of VRDOs may not be honored.","page_number":98,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"89851dd2-e62a-4833-88fe-069ff5b9826f","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":98,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"b18e49ef-30b6-4130-8b76-bd883649bfff","block_type":"box","text":"adjustment formula being calculated to maintain the market rate of the VRDOs at approximately the par value of the","page_number":98,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"5c65186a-4e62-46b2-a858-f48c8cd3b34c","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":98,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"54fdabc1-cc1f-4dd6-a4a1-8df7c9407b1f","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":98,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"8e9d1440-03b7-4677-b09a-eeaf176ac23c","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":98,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"da9dec27-8fe4-4b09-aa36-9ebe03dac6e8","block_type":"box","text":"During periods of declining interest rates, a Fund’s yield on a VRDO will decrease and its shareholders will forego the","page_number":98,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"74976414-df97-4ae1-a57f-566d673f7192","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":98,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"73cbf469-22bb-448d-a059-e799a3e99475","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":98,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"29ef0567-e33d-4a5b-b085-1e78baf646b5","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":98,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"df960820-d744-4c3e-9488-0f78d8cf7b4e","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":98,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"f31ebf76-b962-4853-839a-a659a13ac89d","block_type":"box","text":"deal in financial futures contracts based on a long-term municipal bond index developed by the Chicago Board of","page_number":98,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"e7fa5d7f-bfe4-43f5-a970-854245c33f3d","block_type":"box","text":"Trade (“CBT”) and The Bond Buyer (the “Municipal Bond Index”). The Municipal Bond Index is comprised of 40 long","page_number":98,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"06249a51-9526-46eb-ae64-b5f37aa8525d","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":98,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"7881aca0-2be5-433e-9d57-cf1aa1bd9d65","block_type":"box","text":"Bond Index must be rated A or higher by Moody’s or S&P and must have a remaining maturity of 19 years or more.","page_number":98,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"cd23442c-e2ee-4261-b301-fe1b7f8846d8","block_type":"box","text":"Twice a month new issues satisfying the eligibility requirements are added to, and an equal number of old issues are","page_number":98,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"08f3af88-fb22-4e89-b966-502a6dc3cf44","block_type":"box","text":"deleted from, the Municipal Bond Index. The value of the Municipal Bond Index is computed daily according to a","page_number":98,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"79076f16-7432-4993-8602-4d60816a8534","block_type":"box","text":"formula based on the price of each bond in the Municipal Bond Index, as evaluated by six dealer-to-dealer brokers.","page_number":98,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"a1d6ae25-9b54-4f52-a82a-579fd57494b1","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":98,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"672a6a90-db4b-47cc-aea0-be654d518a9e","block_type":"box","text":"assures per formance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":98,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"19d8bba9-98fd-45e5-b1d1-21a8925411f9","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":98,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"aa2cabed-df14-42bb-b554-46a7b77cba86","block_type":"box","text":"The par ticular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":98,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"4319b110-9752-4cb1-b361-dcc4759d0925","block_type":"box","text":"contract may vary from the bonds held by a Municipal Fund. As a result, a Municipal Fund’s ability to hedge","page_number":98,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"1861b76c-801a-44dd-8588-2ee72423b86a","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":98,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"19a85ca3-29ee-4bc1-85fb-4310838894b4","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":98,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"63e54cff-ec34-417c-a65b-95c0d6eb3603","block_type":"box","text":"correlate with the price movements of the Municipal Bonds held by the Fund. The correlation may be affected by","page_number":98,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"2b323f3f-c1e3-45ba-8455-0c713299e28c","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":98,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"d1b96c4f-bd4b-41c8-bc8f-535df3168b7d","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":98,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"f0350df6-630b-48fe-ba03-14b90c1170a5","block_type":"box","text":"correlation between movements in the value of the Municipal Bond Index may be subject to change over time as","page_number":98,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"09500d52-91ae-44a8-ab3c-2978ed3d9e8a","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":98,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"19ae40dd-3f12-4f3d-98cd-4cc4541ca30c","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":98,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"8f36f16a-3b17-45c9-925f-87395caae110","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":98,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"6b0805eb-3d03-4208-aebd-c7b2154d12f8","block_type":"box","text":"contracts and the prices of Municipal Bonds held by a Municipal Fund may be greater. Municipal Bond Index futures","page_number":98,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"1bbe79da-082a-4d7b-a48f-55366e25294e","block_type":"box","text":"contracts were approved for trading in 1985. Trading in such futures contracts may tend to be less liquid than trading","page_number":98,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"fd1ad0e6-f5a0-44f2-95df-31053bc7ae57","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":98,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"90dc76ad-70be-42d8-a61a-73399bcec9b2","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":98,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"1bf055a1-20ec-4338-b824-b44fd7e95e5e","block_type":"box","text":"Call Rights.","page_number":98,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"bd3103e7-97ca-4952-b722-0778b2be6342","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":98,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"b60e67b7-e763-453d-9eca-a3bfc9d66a4e","block_type":"box","text":"for mandatory tender for purchase (a “Call Right”). A holder of a Call Right may exercise such right to require a","page_number":98,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"3ca5f109-b747-4c75-91e5-862e02996d1f","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":98,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"eeffc6e6-30d6-4278-b18b-97d9cace19f1","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":98,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"e4f1e7ce-5968-43ad-8be2-35842316ac1e","block_type":"box","text":"both the Call Right and the related Municipal Bond is identical to holding a Municipal Bond as a non-callable security.","page_number":98,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"e36f238e-2d20-49a4-abc9-a831eedafd3b","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":98,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"f78abbea-39a6-483f-90e5-60e56a7a252d","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":98,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"c3232269-b8f5-45b0-a239-b9eb3206c53a","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":98,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"66baaa93-ed78-4345-a76a-ac12ab2171b1","block_type":"box","text":"fluctuations or to enhance a Fund’s income, a Fund may enter into interest rate swap transactions such as Municipal","page_number":98,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"ff7e7a90-a38d-4442-9a8e-e2991199aa52","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":98,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"e69d9ba5-8153-491d-aeb4-d9419bd90f4f","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":98,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"83aeb382-e199-4ca7-8c30-0d9116a1a205","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":98,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"56d63727-6083-42b0-bc25-8043ea8db246","block_type":"box","text":"protect against any increase in the price of securities the Fund anticipates purchasing at a later date. A Fund intends","page_number":98,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"9600ef6a-634d-4ac8-9074-4c2f32a13efe","block_type":"box","text":"II-61","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"903575de-2f11-4acd-91b1-7e0a34f63e79","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e244c0d3-81b4-4349-8301-17dd1212ae9d","block_type":"box","text":"to use these transactions primarily as a hedge rather than as a speculative investment. However, a Fund also may","page_number":99,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"0a4f9dbd-a3fc-4a5c-bca0-1fc854c08e91","block_type":"box","text":"invest in MMD Swaps and SIFMA Swaps to enhance income or gain or to increase the Fund’s yield, for example,","page_number":99,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"0c19c866-00ce-4fc5-8db6-1582ae006d37","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":99,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"0ddb3f26-4ced-4795-9a57-eb49a49288e1","block_type":"box","text":"i.e.","page_number":99,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"8d9067fc-a87f-42bd-bbc9-cdeef4b7da5a","block_type":"box","text":", wide differences between shor t-term and long-term interest","page_number":99,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"3b87d1d1-dafe-48ee-aabb-e2027d2c2049","block_type":"box","text":"rates).","page_number":99,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"2615d463-c2be-4aa2-bb37-74be529ac14f","block_type":"box","text":"A Fund may purchase and sell SIFMA Swaps in the SIFMA swap market. In a SIFMA Swap, a Fund exchanges with","page_number":99,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"d14345c3-478f-4024-a663-d7f4b00c8dce","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (","page_number":99,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"47d196bf-ce49-4365-8962-16731e943515","block_type":"box","text":"e.g.","page_number":99,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"b04cbbb6-2431-4660-a7ac-fd48371c61ea","block_type":"box","text":", an exchange of fixed rate payments for","page_number":99,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"731ff7b3-c472-4ed6-9ca1-ae63f1efe7c9","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":99,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"3a50a4d9-ef3f-4518-b52b-a7073190109f","block_type":"box","text":"index, SIFMA Swaps may reduce cross-market risks incurred by a Fund and increase a Fund’s ability to hedge","page_number":99,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"07f9d229-cac8-4090-874c-36138a263f50","block_type":"box","text":"effectively. SIFMA Swaps are typically quoted for the entire yield curve, beginning with a seven day floating rate index","page_number":99,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"4ed7e153-c3ce-4f5f-9be0-8515ed0b3f5b","block_type":"box","text":"out to 30 years. The duration of a SIFMA Swap is approximately equal to the duration of a fixed-rate Municipal Bond","page_number":99,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"42786de3-493e-4d8a-83c0-b18ff932a384","block_type":"box","text":"with the same attributes as the swap (","page_number":99,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"e0e30f90-0ee9-417c-b031-165f26878844","block_type":"box","text":"e.g.","page_number":99,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"ba149a5a-6fe9-46ce-a137-b118ff7eec07","block_type":"box","text":", coupon, maturity, call feature).","page_number":99,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"0c5b7339-67bf-42d6-8c09-6c9405e484b3","block_type":"box","text":"A Fund may also purchase and sell MMD Swaps, also known as MMD rate locks. An MMD Swap permits a Fund","page_number":99,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"d02d7510-446b-4e19-9a7d-1a6ad95cbe83","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":99,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"0ae005fe-e896-460d-83a7-8227e076ae79","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":99,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"a46665ac-53b5-4ea2-95e5-a052b7f8193f","block_type":"box","text":"price of securities to be purchased at a later date. By using an MMD Swap, a Fund can create a synthetic long or","page_number":99,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"c5941b7f-9418-4e9c-a8f6-989fd39bc852","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":99,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"5421188f-b0e0-452a-8952-dda82d836ffe","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":99,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"29ff6474-a9e5-40a0-88de-8511c888aee1","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":99,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"89dab4a5-e752-4d43-bba4-3be5e74ee912","block_type":"box","text":"below a specified level on the expiration date of the contract. For example, if a Fund buys an MMD Swap and the","page_number":99,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"92ac81fa-6f23-4cbb-949b-a1dc35917378","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":99,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"bb17d4dc-86bb-4982-bc34-8e64c2c6c2cc","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":99,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"b4cbaa27-b495-4bd7-97cc-b2f7af6bd8d9","block_type":"box","text":"multiplied by the notional amount of the contract. If the Municipal Market Data AAA General Obligation Scale is above","page_number":99,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"1e51aaa7-91c3-46ea-bd30-6b4298b2062f","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":99,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"12d0e990-03ff-482c-b51a-71ab27fae59f","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":99,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"c0ea966f-87ee-4bc1-b3ae-a30d77ed502c","block_type":"box","text":"In connection with investments in SIFMA and MMD Swaps, there is a risk that municipal yields will move in the","page_number":99,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"bc5f4f84-e566-4c00-aece-9ec2891b5d12","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":99,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"7e61aa4f-d34a-49af-9d39-db0b25a440cb","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":99,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"48d0a80c-2560-4177-ab49-b171691b72e6","block_type":"box","text":"Insured Municipal Bonds.","page_number":99,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"a11d099d-b6a9-488f-a4d7-dec20a8d2bdf","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":99,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"a6f14182-d120-4d83-81ac-7a847f7be82f","block_type":"box","text":"payments on the bond will be made on time and the principal will be repaid when the bond matures. Either the issuer","page_number":99,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"a1687a7d-7f42-4eec-8dd3-08e57df858f9","block_type":"box","text":"of the bond or the Fund purchases the insurance. Insurance is expected to protect the Fund against losses caused by","page_number":99,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"19b62f02-ba52-4378-baf3-08b2bf15059b","block_type":"box","text":"a bond issuer’s failure to make interest or principal payments. However, insurance does not protect the Fund or its","page_number":99,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"c8ad647b-8296-4319-bfaf-a4465f601cb5","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":99,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"a4eaa012-4f24-4d68-aa19-ad2ff8c50bfd","block_type":"box","text":"insurance company does not make these payments. In addition, if the Fund purchases the insurance, it may pay the","page_number":99,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"19e2872d-2080-41b6-8d0e-66227620807e","block_type":"box","text":"premiums, which will reduce the Fund’s yield. The Fund seeks to use only insurance companies with claims paying","page_number":99,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"721c6777-c363-4f5e-8c78-1b09c617ad75","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":99,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"26ea7462-889b-432d-a2c2-bdb98ba3546b","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":99,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"5c17cbb0-4629-4536-b332-0df25ef7d266","block_type":"box","text":"insurance or insured bonds. If a bond’s insurer fails to fulfill its obligations or loses its credit rating, the value of the","page_number":99,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"486fc661-91f2-4317-b2c2-107742094386","block_type":"box","text":"bond could drop.","page_number":99,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"b410c029-7078-4934-99c7-8cc37d0ebc03","block_type":"box","text":"Build America Bonds.","page_number":99,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"220a5b51-c9c9-4fb9-8b0b-a0c801f7f3cd","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":99,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"5bcf9050-5cc6-4f7a-aded-fc4abcacda3f","block_type":"box","text":"income tax credit; however, the issuer of a Build America Bond may instead elect to receive a cash payment directly","page_number":99,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"032e1399-edb8-47d1-ab04-624ac2d5c8e0","block_type":"box","text":"from the federal government in lieu of holders such as the fund receiving a tax credit. The interest on Build America","page_number":99,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"d02e61f4-18de-4606-9366-902a2d9dba3e","block_type":"box","text":"Bonds is taxable for U.S. federal income tax purposes. If the Fund does receive tax credits from Build America Bonds","page_number":99,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"280e0ba8-80dc-4a21-a926-49baf06e1652","block_type":"box","text":"or other tax credit bonds on one or more specified dates during the fund’s taxable year, and the Fund satisfies the","page_number":99,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"554755db-6ac0-486b-9d4a-68fef8dc6bc1","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":99,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"0736bed5-6fd3-484f-9e74-66a4a4e02839","block_type":"box","text":"shareholders tax credits otherwise allowable to the Fund for that year with respect to such bonds. A tax credit bond","page_number":99,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"c4bdeb76-9639-4d1d-a40d-90a4f655b100","block_type":"box","text":"is defined in the Code as a “qualified tax credit bond” (which includes a qualified forestry conservation bond, a new","page_number":99,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"0f663c66-03a2-4916-ab21-2ffd8977c0ba","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":99,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"82be6467-b181-4116-90a2-dac21378b314","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":99,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"9760d77a-c379-47d4-86d0-167cb78dd64e","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":99,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"51e9cf93-6674-4742-8590-1b56328cfc84","block_type":"box","text":"would be required to include in income and would be entitled to claim as a tax credit an amount equal to a","page_number":99,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"dac1a215-7251-43fa-9354-e5a4e34d7df6","block_type":"box","text":"propor tionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":99,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"e5696784-8024-4ffc-b9c4-8dd907414bf1","block_type":"box","text":"Cer tain limitations may apply on the extent to which the credit may be claimed.","page_number":99,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"10dbb1d5-3afa-4edf-988c-111c5fd34869","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":99,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"4b6741d7-55d3-4475-9a2d-f7f165040bfb","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":99,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"ef8a5f09-22e0-49bd-a4ab-0aa9e8b24c6d","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":99,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"6279db01-fdba-4f94-9cb7-a175d8cc96e0","block_type":"box","text":"par tnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":99,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"c4bc5f5b-dd82-4f5b-b807-d85ea9047541","block_type":"box","text":"II-62","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6dd591bd-d513-4bf0-9661-87d4dc9e3723","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"be1faa9f-fea4-42fb-b9bb-edc839fbd0c1","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":100,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"37f8a5c3-d4bc-4071-90a0-0c9dfd86bd92","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":100,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"18788d6b-544f-4d78-b475-105ebb79db40","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":100,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"28902c42-3f0a-41cd-a2da-8587c7ba63dc","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":100,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"1554df3b-7c94-42d1-ac9e-eb6d701b2131","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":100,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"ceff9544-3ffa-448e-8c2b-e5ceb515f6ce","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":100,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"006c902b-10d4-440c-83b1-26b97a8fe2f9","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":100,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"8354d359-4a47-4b36-9a2d-965a8f300bda","block_type":"box","text":"their face value to the sponsor (","page_number":100,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"ebd22445-d11f-4595-a32c-9f71b3645c1d","block_type":"box","text":"e.g.","page_number":100,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"f2a3a751-a1c1-4e96-a0af-b8babe762a5f","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":100,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"423d9236-83dd-4f52-a854-a63ada9b1fa9","block_type":"box","text":"periodic fees equal to the difference between the securities’ fixed coupon rate and the rate that would cause the","page_number":100,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"fb209652-94e6-491e-821e-116b39c21030","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":100,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"2ac84f58-e5ca-44f3-8300-29d67042cec7","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":100,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"04ecb5dc-0563-42a0-ba92-c1ac5f7a6299","block_type":"box","text":"par ticipation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":100,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"f12dcea7-c819-4951-8a96-9133b777e5c4","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":100,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"0b0eb402-ec09-487a-a51c-85060021d880","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":100,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"64cfeed8-0054-41ed-8d6e-ca90f1c61cd4","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":100,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"80e13421-e964-4465-af4c-542187ffc592","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":100,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"2eaefa28-48a1-43ec-83a9-2b55d9241caa","block_type":"box","text":"which give the holder the right to receive payment of principal subject to the conditions described above. The IRS has","page_number":100,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"70c4dffb-b5de-4da7-888e-174b91103aaf","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":100,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"92495545-4f78-4b3f-bf55-958c6ad9b020","block_type":"box","text":"or custodial receipts is tax-exempt, and accordingly, purchases of any such interests or receipts are based on the","page_number":100,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"f54d3a41-87ca-411d-92dd-9e97401bab50","block_type":"box","text":"opinions of counsel to the sponsors of such derivative securities. Neither a Fund nor its investment adviser or sub","page_number":100,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"288217c7-adad-440d-baca-98f12cbf13f9","block_type":"box","text":"advisers will review the proceedings related to the creation of any tax-exempt municipal investments or the basis for","page_number":100,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"dbf73e96-7858-4798-a858-df2bd5c4a069","block_type":"box","text":"such opinions.","page_number":100,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"a5d4c5ba-fdd2-4b49-8e9e-b81f3ebb9c86","block_type":"box","text":"Operational and Technology Risks.","page_number":100,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"02ec024a-9798-4344-9a63-29e8c9a2c3d2","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":100,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"1fad8701-48ca-4521-91c2-4b0c185fd5f2","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":100,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"6f5559db-befd-422a-8afa-0a38b1cb058d","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":100,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"ca9ee914-9673-4322-b985-1f1bfba812a3","block_type":"box","text":"learning (“AI”), which may result in losses for the Fund and its shareholders or impair the Fund’s operations. These","page_number":100,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"9b956925-b5f5-46bc-9242-e8f9b0b57f43","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":100,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"4651eefb-abba-4c8b-a6fd-de7344ad0b70","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":100,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"61632128-7daf-45f8-bc9c-caecfc40074d","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":100,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"4c0f0a23-3740-4af7-9436-efacc8905d3b","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":100,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"1697b3cd-89d6-4014-a3b9-e116d409308a","block_type":"box","text":"could also result in material adverse consequences for such issuers and may cause the Fund’s investments in such","page_number":100,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"62de3f97-e14c-4c22-a410-d9d81a02bec9","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":100,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"f8731128-f44c-4ba5-8391-280b7b42f69f","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":100,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"18fdfff2-7472-4eb6-821d-49e83546796f","block_type":"box","text":"Fund invests, the Fund or any of its service providers. They include, but are not limited to, gaining unauthorized","page_number":100,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"a5ae0b18-19b5-467e-8470-b14a8261925a","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":100,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"a550c1ed-2578-4d48-8944-e55674dad248","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":100,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"deb49b80-6cf2-4a1e-998c-1012795ca6fa","block_type":"box","text":"par ticularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":100,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"d394a0f8-5d8a-4b3e-8292-4a06174cbc68","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":100,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"26c9b7bd-46da-484c-abab-f2fd448cd1cc","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":100,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"740dd213-0ea8-4d64-9f41-80135f766d4c","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":100,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"15285676-1aa7-4e10-9382-9b063a98f6c7","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":100,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"4c56d771-4411-4df0-92f4-b481bbf2e2b7","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":100,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"94a44a84-c248-44a3-b3b7-1908df3a020d","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":100,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"f767e9a1-e2ca-4b60-8f55-b45cbdb45d3e","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":100,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"6400be1d-114a-4316-9b8d-a1db291be775","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":100,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"723b5f3a-2c2e-4096-9562-d6d002fd6e71","block_type":"box","text":"upon by the Fund or its service providers, as well as market events that occur at a pace that overloads these","page_number":100,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"8c352ea9-5c8e-4f8c-9a06-fd5b89bfec38","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":100,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"19994447-8c58-4275-a7f0-3451d1f3fc94","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":100,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"03f09859-4f37-4256-84af-5f67f2b8c3f0","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":100,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"f5aff5a3-f9c7-4b55-af15-64c247fb146a","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":100,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"ba86b19c-43f0-4221-83e7-85e236e74889","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":100,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"f2e7a9a4-aa08-4a52-9311-4f000e16daa1","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":100,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"195a5182-9610-4b25-9b81-beb836594618","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":100,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"f2b2400e-8348-4513-9032-181b935c4f10","block_type":"box","text":"infrastructure assets.","page_number":100,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"648d43dc-9157-4b2b-8c21-2f80b49bd6a9","block_type":"box","text":"II-63","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"82cd1073-5b6f-4351-9e07-ad45a4fdc6ec","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fed0661a-fef6-4d55-89c3-e64bbceff8ab","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":101,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"32e9d856-c8dd-4733-80f7-bb91fc1e77cc","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":101,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"df76b6e3-53c6-4c64-ad0a-ed1f82dfbaef","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":101,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"0a1ba89b-5c51-48d2-bf9d-76639000ce50","block_type":"box","text":"or services.","page_number":101,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"5ed15a4d-3f35-4008-88d9-4c123f216d51","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":101,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"ee7c6a65-414b-414d-911a-4b74a303fee3","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":101,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"87800873-16ac-4fdb-ab13-1583ed589307","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":101,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"4aa2f0da-a965-414d-871f-ab1fb3be96bc","block_type":"box","text":"Independent of its context of use, AI technology is generally highly reliant on the collection and analysis of large","page_number":101,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"66831e48-3835-4862-a9ee-4dc3856d6bf9","block_type":"box","text":"amounts of data, may incorporate biased or inaccurate data, and it is not possible or practicable to incorporate all","page_number":101,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"7dcfedd2-defd-4b5d-82b7-0e00cd10baeb","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":101,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"c9ab4c55-eac9-4e29-9a99-66d64b538b5d","block_type":"box","text":"contain a degree of inaccuracy and error, or could otherwise be inadequate or flawed, which would be likely to","page_number":101,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"0f354ab8-1fdc-4367-9594-f16495f9040e","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":101,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"9da843bd-fd3c-44d2-a51b-730b072590b1","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":101,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"a0821657-998e-40d3-a24b-58b222826a23","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":101,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"8704c8ab-eac5-41f6-8ec3-b4215c7fbece","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":101,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"d4072835-fc08-4551-8653-154509a7083c","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":101,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"0d15101b-e1e3-463b-a633-8e573a52731b","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":101,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"e3c111d7-997c-482a-aed7-117752eff6d7","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":101,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"94d2378c-cb7f-4c1e-9a6a-69aed1660a93","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":101,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"125699cc-19af-4104-8ed3-2a25cdf47e40","block_type":"box","text":"ar tificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":101,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"739d4df9-647f-4a03-a341-2db4eb0d869f","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":101,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"e048f16f-1474-488d-aecd-63afcea3109f","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":101,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"7dc0812c-6593-45be-98fb-6302eff2441d","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":101,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"bc6d37d5-19a6-4632-979d-d3996ae4d873","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":101,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"2a161d5d-a308-47c1-8c17-dc6532def81d","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":101,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"e287856c-7085-4d05-a5bb-32806c4731ae","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":101,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"5d75e1eb-4e29-4510-93f4-e82e393aa257","block_type":"box","text":"and it is impossible to predict the future risks that may arise from such developments. The full extent of current or","page_number":101,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"e971dee9-d47b-4df8-90d6-9f050bfa6897","block_type":"box","text":"future risks related thereto is not possible to predict, and the Fund may not be able to anticipate, prevent, mitigate,","page_number":101,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"f41f0a18-db19-4d5c-9680-b6635b382af6","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":101,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"7a494712-a7ac-4a5f-8f04-8adf589b3129","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":101,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"29a4f315-c28b-4083-a47d-664171d92a22","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":101,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"a6c085bf-9ab3-4428-a519-9f1ad5a98034","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":101,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"f2794fbf-df5b-4459-a8a8-90ba191488ba","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":101,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"8ceb3215-27b5-4ff1-bd7d-6dccfbf4997d","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":101,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"d1e3cca4-27cd-40a5-aa48-c80e512f9559","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":101,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"f4d6e77f-7287-4f00-be3c-cb3a846bf284","block_type":"box","text":"may emerge in the future; that such plans and systems may not completely eliminate the occurrence or mitigate the","page_number":101,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"f0d84828-896e-4383-a468-5c0b9950d876","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":101,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"02d03765-0bca-4b7f-91c3-7cc181575139","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":101,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"3253d75a-728a-4618-b68f-064bdaf4e12c","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":101,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"f541de94-f38b-4216-821b-a166e294cdfc","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":101,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"847ab27a-0eb6-481f-9960-26beae365c5c","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":101,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"af5435d2-4b09-42c1-8a9f-c395200db581","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":101,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"55d75150-8689-4f8c-bae6-e8c14d941754","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":101,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"da829fec-1719-4ec7-a90a-5fa36acd91e1","block_type":"box","text":"resources to monitor and implement required changes.","page_number":101,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"cf58c445-c1f9-4a92-81d0-4e96e915fc52","block_type":"box","text":"Participation Notes.","page_number":101,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"d7869dfd-e56d-4970-9958-c375f5915921","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":101,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"1708879b-44e8-4434-89ea-614d85d5d62f","block_type":"box","text":"Fund to a return measured by the change in value of an identified underlying security or basket of securities","page_number":101,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"1285555c-a680-48ef-af26-32ef9c426d1b","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":101,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"a09eec2e-5e16-4c76-971e-50b34957f1f6","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":101,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"5e5796e5-cedb-4daa-873f-e23f418d4372","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":101,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"f72ea0ed-272c-418f-9790-9e01f5d45bb6","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":101,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"e6cc1fa9-45da-40c6-99f5-29120bc09fd0","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":101,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"8431d255-f6f9-41ea-beb1-30104e6f7066","block_type":"box","text":"par ticipation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":101,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"9032c6b4-619d-4952-9bb6-57db25618180","block_type":"box","text":"security. In other words, shares of the underlying security are not in any way owned by the Fund. However, each","page_number":101,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"5782c97e-1e92-4775-8fae-9daa9d40ccf0","block_type":"box","text":"par ticipation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":101,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"85214fcc-d3c7-469d-905e-3acbbd7a28b5","block_type":"box","text":"II-64","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4636aab0-2e3c-4894-ba7e-710ab18f4acd","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"43a6793c-655d-4797-8730-f07ea245cac2","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":102,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"c33f00a6-1581-4c7e-833f-7745b06523c9","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":102,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"3c52215c-4bb1-41e8-a6ee-9c03a44bde66","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":102,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"805aaa69-b496-415a-b51f-fa41c160452f","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":102,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"4fed7d2c-6764-44ee-b1fd-46f161fe61a2","block_type":"box","text":"obligation. A Fund may, but is not required to, purchase credit protection against the default of the issuer. When the","page_number":102,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"5377c8fc-a42e-49c0-b332-2f8313ecc713","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":102,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"10511139-2465-46af-88c3-05fad8066624","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":102,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"67ff2ca2-7a2d-44bd-a93e-97784771eebb","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":102,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"858a1415-9c41-44a3-a709-b44cf3d7a7a7","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":102,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"f930963e-3fd4-4710-926e-4edc75edec9b","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":102,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"22a46d40-a560-47b2-b86b-6489d34f7115","block_type":"box","text":"Portfolio Turnover Rates.","page_number":102,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"80f529d4-4e6c-422d-bb10-e5aa7e76851a","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":102,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"cf84ae24-8f92-4d88-b3f8-2a0156bf7f00","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":102,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"91a11e72-c838-41fa-ab0c-2292f51fa178","block_type":"box","text":"Funds will use an approach to investing that is largely a passive, indexing approach, such Funds may engage in a","page_number":102,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"3cf99c73-07fc-48c4-a3dd-86e49f66a443","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":102,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"4d73938d-7d4a-4c29-b130-13ca18932363","block_type":"box","text":"limiting factor when the Manager considers whether to purchase or sell securities for a Fund only to the extent that","page_number":102,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"ea9fa141-8aa0-4aa0-a3c2-cc60b417ec13","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":102,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"be4de00d-8cf2-4424-bd6a-9b2b88681221","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (","page_number":102,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"721e90ec-0780-447a-96b0-7857272ebe34","block_type":"box","text":"i.e.","page_number":102,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"d71ddc28-2708-479e-89d2-3ec5145c2f9d","block_type":"box","text":", 100% or more) may result in","page_number":102,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"314f62b4-2e9a-4be4-9f74-1e1307faba1e","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":102,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"3d48f0b2-4399-4bf1-807f-4aa01c6e3462","block_type":"box","text":"costs on the sale of the securities and reinvestment in other securities. The sale of a Fund’s securities may result in","page_number":102,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"c0bb1a7b-6208-4558-ba6c-e9148a1dc4cd","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":102,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"ad617b1c-2294-4544-bf1f-33005d13fdce","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":102,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"d4d9f1b0-6b56-43ce-952e-ab50163fc14d","block_type":"box","text":"Preferred Stock.","page_number":102,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"9d5091b0-84c0-4676-a9b2-7f83111f716b","block_type":"box","text":"Cer tain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":102,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"128f22b2-2eef-45d1-a5d8-8406f0592bc4","block_type":"box","text":"stock in liquidation (and generally dividends as well) but is subordinated to bond holders and other creditors in all","page_number":102,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"86b88742-8884-4e5d-a759-c30984138f97","block_type":"box","text":"respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element","page_number":102,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"5b9c94f3-1479-4fb8-ac2f-f5393283a589","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":102,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"ee231eb9-a90d-45c7-bcba-130dd0a76467","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":102,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"a11f3ec7-0bed-4a7a-adf6-04ed5919d645","block_type":"box","text":"other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value","page_number":102,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"17d5d8ba-1bd6-4fba-bc1f-ac03644452b8","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":102,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"2642cfac-5007-4789-986f-7c1ef9d565f1","block_type":"box","text":"payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors.","page_number":102,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"faf2703b-6073-4a76-b8aa-d6a075a34328","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":102,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"517907a2-1837-4ff4-8fb4-cc43610110a2","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":102,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"c1b37cf1-e1c2-43b6-8194-eea9526c3f55","block_type":"box","text":"Cer tain Funds may invest in preferred interests of other investment funds that pay","page_number":102,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"044fd67e-bd09-4a5f-8072-7a3be9406ef6","block_type":"box","text":"dividends that are exempt from regular U.S. federal income tax. Such funds in turn invest in municipal bonds and","page_number":102,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"77e1388b-0007-45f1-9f19-add7a281cdcb","block_type":"box","text":"other assets that pay interest or make distributions that are exempt from regular U.S. federal income tax, such as","page_number":102,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"c9b82650-ee0e-4cd9-a84a-1fefdc3ecad4","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":102,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"7cd28592-3a68-4366-a533-5f4053b992e5","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":102,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"1c45bc42-91ff-44f3-b411-d2ecd7384d35","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":102,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"6289a301-5bc2-4345-8bab-25c073a0e18a","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":102,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"1452926c-7e0e-4b4a-a92e-e60c84862ac8","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":102,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"e23660a5-1b7b-40b3-b922-3445684514f7","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":102,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"90c4cad5-0e94-484d-88d9-15a1273f4950","block_type":"box","text":"Trust Preferred Securities.","page_number":102,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"192935f5-be73-42d7-b21e-1dfd00f6bb33","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":102,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"59496013-b6f7-43c3-988f-c71120228430","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":102,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"0f5c0e85-aba6-49fb-8b15-6e50fefeeb1c","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":102,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"69e4f939-dcbc-47da-b686-82f277a71851","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":102,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"45c38b7f-2d36-4868-8ff4-9e34826adae8","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":102,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"643c8bbf-6f60-41ec-b1d3-38b2d2ad482a","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":102,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"fda08734-5b54-4b17-b01c-013cb986bc34","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":102,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"bdbb608d-10a4-4174-b5e3-58862f6562a9","block_type":"box","text":"securities typically permit an issuer to defer the payment of income for five years or more without triggering an event","page_number":102,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"ac06020b-dbbb-4e4e-bd0a-27b43493eb2f","block_type":"box","text":"of default. Because of their subordinated position in the capital structure of an issuer, the ability to defer payments","page_number":102,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"774cfc65-72ef-4450-a7bb-a424adc0ecbc","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":102,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"cb982dd1-ee20-44b5-bc68-9831de910394","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":102,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"4a47c183-5ccd-4e38-a5e2-8adf8623e6fe","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":102,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"a5b3e67b-0f02-4eec-86d1-416b87f536b8","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":102,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"29e94c0f-63f3-435a-a32d-95a3ccbcd4a9","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":102,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"b3a72945-04d6-4e3d-9414-b5d7d907ffd1","block_type":"box","text":"®","page_number":102,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"177f0906-b214-439a-9db4-4d772e0f274c","block_type":"box","text":"”); monthly","page_number":102,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"d85ee5cb-1fe7-4491-a81a-fec712ab3dd5","block_type":"box","text":"income preferred securities (“MIPS","page_number":102,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"ceae6e9d-21ea-48b4-861a-165b42568809","block_type":"box","text":"®","page_number":102,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"f55d4336-8c72-4d89-a1e7-f8f3172018d9","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":102,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"fb842f73-94db-447f-b1f7-6089b447577d","block_type":"box","text":"®","page_number":102,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"611fae83-da32-45cf-92ad-0578b37ca808","block_type":"box","text":"” ); quar terly income debt securities","page_number":102,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"78ed6d65-9ebb-414e-be61-fe682eb0dac4","block_type":"box","text":"II-65","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"843211dc-620a-418a-a021-f129e0423239","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d53e3b57-ace1-46ff-adf3-7ff81d8e4dff","block_type":"box","text":"(“QUIDS","page_number":103,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"33dc96dd-ae8f-4692-9605-47136f915585","block_type":"box","text":"®","page_number":103,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"8de2c036-7108-4db5-9944-f45d856d7405","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":103,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"ec852156-31c4-4617-b9f4-8b293b111a86","block_type":"box","text":"SM","page_number":103,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"208ff0b4-2648-4390-b4f2-ef155f9eb02a","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":103,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"3d333d65-571e-4ee2-aefd-390ff4a7db3a","block_type":"box","text":"®","page_number":103,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"546bd5c5-4144-411b-9845-630f8c2128b0","block_type":"box","text":"”); public income","page_number":103,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"302c8015-9928-4ccf-a2a9-3ceafd86f74c","block_type":"box","text":"notes (“PINES","page_number":103,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"255d0c2a-6221-4f83-bf67-b9bacc94140c","block_type":"box","text":"®","page_number":103,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"64d45144-50ec-4986-8d02-1b56423c8109","block_type":"box","text":"”); and other trust preferred securities.","page_number":103,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"f26c9062-d184-441c-b692-ebd46577a9de","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":103,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"c538ea6e-21c3-404a-bb04-f9fb4e8cb01c","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":103,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"84c3046f-702e-49f3-b9c8-911367709cb8","block_type":"box","text":"the issuer’s option for a specified time without default. No redemption can typically take place unless all cumulative","page_number":103,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"3db11e4d-5cda-4322-b34b-ef918b31d319","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":103,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"d4b06944-06d7-409f-9bbc-694cc6e1d773","block_type":"box","text":"regard to whether all payments have been paid.","page_number":103,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"f2829f65-35a6-4839-8ac3-09a750297a1f","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":103,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"b8a1182a-1dee-423b-b500-8ee476ad77d9","block_type":"box","text":"companies and are not a direct obligation of an operating company. At the time the trust or special purpose entity","page_number":103,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"88faa516-511c-4d5f-b26c-602accc7a6f5","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":103,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"ffb5fe0d-10b0-4657-8690-03dc18500c49","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":103,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"4e325920-e5e7-4843-bec6-a95093dad6f6","block_type":"box","text":"purposes the interest paid on the debt held by the trust or special purpose entity. The trust or special purpose entity","page_number":103,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"985db97a-fc66-43a4-a49e-5c51cde3b7c8","block_type":"box","text":"is generally required to be treated as transparent for U.S. federal income tax purposes such that the holders of the","page_number":103,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"82991850-a84a-4f5c-802e-acdba2a3a71a","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":103,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"7b7c3a1f-83a4-4b22-a876-89e8b4031049","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":103,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"77fba6f4-92c6-4774-96db-80d82ad35af9","block_type":"box","text":"income tax purposes. The trust or special purpose entity in turn would be a holder of the operating company’s debt","page_number":103,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"2bf09d6a-a464-4c5b-8d6a-b8433f9395e5","block_type":"box","text":"and would have priority with respect to the operating company’s earnings and profits over the operating company’s","page_number":103,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"5fde890b-73fa-41dd-9d94-57d468455903","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":103,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"76aa78cf-26a1-4872-896c-0ce65ed93315","block_type":"box","text":"Typically a preferred share has a rating that is slightly below that of its corresponding operating company’s senior","page_number":103,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"8b328bb7-151c-49a5-b2c5-c810fc9da193","block_type":"box","text":"debt securities.","page_number":103,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"15f4dddf-8415-4131-a6be-c194feb3ae08","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":103,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"aebb2019-76a9-421e-bfaf-ba8b7d48c25a","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":103,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"6c3487aa-40ea-469f-ac42-d0a0fecccaa5","block_type":"box","text":"REITs. REITs possess cer tain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":103,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"16009db5-a207-4461-bcdc-14b78f2bd402","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":103,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"b9277977-b2ff-494b-8934-099316f9703b","block_type":"box","text":"geographic areas or in specific proper ty types,","page_number":103,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"d39f6d28-47d4-40f0-925a-92c71f7888aa","block_type":"box","text":"i.e.","page_number":103,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"d3e46f6a-7bd0-4a32-a6d0-d0aa45c10c80","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":103,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"5d028c8f-ab33-4e5e-be7c-9e9768b4c99c","block_type":"box","text":"buildings.","page_number":103,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"a600318b-4320-42c6-a0de-039d64cceb2b","block_type":"box","text":"REITs are subject to management fees and other expenses, and so a Fund that invests in REITs will bear its","page_number":103,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"f58abbf6-e492-4ae4-9ec9-fb1fc75ee2fe","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":103,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"a320654d-237b-4acd-9c2a-3ca00257113a","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":103,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"7ce9e6de-1b1e-4dcd-b5f4-725d972588bb","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":103,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"b5b6343b-d9e8-4221-afc5-1c888635102e","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":103,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"2a4ace22-bb41-48fb-8354-7443b9b6db5f","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":103,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"38ac7844-0197-4011-8555-d3ff4fc113f7","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":103,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"fc7d39ee-085c-4181-bb6e-0107a58552a4","block_type":"box","text":"estate industry in general. The market value of REIT shares and the ability of the REITs to distribute income may be","page_number":103,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"a5d02b61-af1a-4c3a-b776-5241a0d43b95","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":103,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"278d6da0-9478-4954-8612-0fc0e5bd08cc","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":103,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"eb8975af-0126-492f-8aa3-1723891fdc95","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":103,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"6271a182-ce99-4ca0-8521-e8af1b53ff65","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":103,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"f4907251-ddc4-426c-ad39-af44f05a361c","block_type":"box","text":"from new proper ties, the impact of present or future environmental legislation and compliance with environmental","page_number":103,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"1c3bc31d-f008-4339-acc1-f9a4621ab496","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":103,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"16897952-9965-4aee-8bdb-8a25a61cbb7c","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":103,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"42da69e2-1de4-4f79-81a2-a510704afba5","block_type":"box","text":"zoning laws and other factors beyond the control of the issuers of the REITs. To the extent that assets underlying a","page_number":103,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"2f948893-7932-4ad4-bb92-64f23cc4b840","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":103,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"512f8704-d91c-4181-876a-60a1bb0ee661","block_type":"box","text":"In addition, distributions received by a Fund from REITs may consist of dividends, capital gains and/or return of","page_number":103,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"eec2a4bd-0b56-4fc9-abf7-67e69af4966d","block_type":"box","text":"capital. As REITs generally pay a higher rate of dividends (on a pre-tax basis) than operating companies, to the extent","page_number":103,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"448d9daa-8622-4966-8418-be0587382f7d","block_type":"box","text":"application of the Fund’s investment strategy results in the Fund investing in REIT shares, the percentage of the","page_number":103,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"c2e2ff25-b576-43cf-a4a2-cb582ccc5440","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":103,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"4434a9fa-61c1-43f8-b9eb-2f8914997289","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":103,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"d574b4e9-104e-4b66-b1d2-f41e2a8950a6","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":103,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"6ed48155-215b-4df8-b602-ef2b5e4681f3","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":103,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"636d30bd-6972-4dd9-9deb-dcc0d6ad7594","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":103,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"79e38f07-e714-4436-9e1f-cdb58263888d","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":103,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"ac8cc101-d5ac-43cd-b9b1-e76646a6f901","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":103,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"8743a81a-6745-43d0-ae3e-ae35de2d45ef","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":103,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"ff685aa1-748b-4a30-a0c6-0c86d2915295","block_type":"box","text":"REITs (especially mor tgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":103,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"acb6615c-c2cc-4687-9ee9-1b3906bf810b","block_type":"box","text":"investors to demand a higher annual yield, which may, in turn, cause a decline in the market price of the equity","page_number":103,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"f8d183ab-ea8e-43bd-a013-88ac784fdd38","block_type":"box","text":"II-66","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"23af5aae-4126-472f-888d-cb7e76a8ffb7","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6f75cadf-f616-49c0-b589-d7f57ae794de","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":104,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"e358e63e-6388-4315-bd6b-846885116c95","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":104,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"99d715fc-83f4-4e76-b289-b99a6b1aaa73","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":104,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"370dedf2-dd9e-407f-b30d-93b250cabfaf","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":104,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"213d19a3-a795-4b29-ae6d-e788fea8a6af","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":104,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"2585b90f-d862-4328-9832-a5d86c0336e2","block_type":"box","text":"Investing in cer tain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":104,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"e09c0d5b-7efc-4ad5-ae56-5b4720d63ba6","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":104,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"d25c2bf2-ef6d-49df-b0ea-65b8e9ca6c82","block_type":"box","text":"trade less frequently and in limited volume and may be subject to more abrupt or erratic price movements than larger","page_number":104,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"18537ba7-48d0-4386-8e61-6d4c0450b08c","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":104,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"63baf5bc-6597-4930-abc5-1e93ccfa8e14","block_type":"box","text":"larger capitalization stocks such as those included in the S&P 500 Index. The management of a REIT may be subject","page_number":104,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"a31f01ee-acff-46c3-b946-80f4cae52334","block_type":"box","text":"to conflicts of interest with respect to the operation of the business of the REIT and may be involved in real estate","page_number":104,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"85f006c1-5f3b-4749-b0ba-73ce6197fcb6","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":104,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"2b8dbcb5-9092-4c41-a161-7bc6704fda99","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":104,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"700be959-ca1f-4660-93a5-3194b3197553","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":104,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"8e3190ed-e89f-4fe4-915b-8bec3b344b81","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":104,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"95cf13c3-e4bb-4865-9a03-3234b99005f4","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":104,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"35933475-0309-4493-ba53-5753b747ae3e","block_type":"box","text":"general market conditions, economic trends or events that are not specifically related to a company or to factors that","page_number":104,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"34d37b7f-33e2-45a2-82f6-3a085f139f0b","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":104,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"34dc6d6b-de3f-49a6-9b88-f4ee05ccd6f7","block_type":"box","text":"group of countries, region, market, industry, group of industries, sector or asset class. The success of a Fund’s","page_number":104,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"5b471489-9c67-45b7-a495-c6aceb8b14e0","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":104,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"01fb5e05-89dd-471b-a88d-5d629bd0657e","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":104,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"ee27d184-25f8-4f63-a1e7-9f64e3f83f35","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":104,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"0f9d2b2a-0c17-4a87-baf7-caaf4a6dd660","block_type":"box","text":"issues, recessions, or other events could have a significant impact on a Fund and its investments. During a general","page_number":104,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"5726a0c4-4999-4f3f-a6d9-7658632e5efb","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":104,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"a43d71c5-2149-47de-9047-7eab868717bd","block_type":"box","text":"affect the level and volatility of securities prices and the liquidity of a Fund’s investments, which could impair the","page_number":104,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"0d5240c8-0dcf-4629-b0ec-c44ebc134fe8","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":104,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"b870d5fb-fef1-4d6f-9182-d8c08d3af13e","block_type":"box","text":"affected by the level of volatility in the financial markets; the larger the positions, the greater the potential for loss.","page_number":104,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"54115b95-f5d9-4166-b4fc-c7b9559e572c","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":104,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"6115704a-96e6-49dc-8c2c-0e54d96a5c86","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":104,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"c8802b38-9498-4ee5-8a4d-49c1ba1e3950","block_type":"box","text":"understand that a Fund can incur material losses even if it reacts quickly to difficult market conditions and there can","page_number":104,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"47519df4-d02a-4fce-b148-65aaa3c100fd","block_type":"box","text":"be no assurance that a Fund will not suffer material adverse effects from broad and rapid changes in market","page_number":104,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"a5b6fab5-806c-44d4-ae0d-68a0d6d4d4c5","block_type":"box","text":"conditions.","page_number":104,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"e8e30ca9-c296-43f0-9946-b626d2da7b38","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":104,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"b8e440a1-02bb-490e-b3dc-0291c97e8626","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":104,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"98ede902-6342-402c-b9d1-2abeef3802fd","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":104,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"2daba9d9-66ec-4a1f-9647-bde826ffd820","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":104,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"d371c8e8-ccac-4d4b-8b07-07f594744254","block_type":"box","text":"of these policies is still being considered, but the equity and debt markets may react strongly to expectations of","page_number":104,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"330e24b5-8751-4d0c-b950-e05c5ddda561","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":104,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"6a02f0d5-4d29-43f7-91e7-23028f220257","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":104,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"ab21e284-6c84-4ccb-8427-a5612e6a4749","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":104,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"bec489c7-d1ab-499e-b0f7-6a7e7b9f6eb7","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":104,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"d4708a91-e43d-4ea2-9820-a3fa29725d2f","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":104,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"1d9f5d05-f2de-4d23-a93f-7b7b8cd7c38b","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":104,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"b8e9d929-7d5d-49dd-8a4a-54c1381fd07b","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":104,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"7f55b0c9-e2fe-4712-a44e-a06de35a5709","block_type":"box","text":"affected by such events.","page_number":104,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"36a589fc-a941-410d-8e0c-8ac093d06eea","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":104,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"d48c7fe7-5f15-4e3c-baf3-80272e84aa7f","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":104,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"a38ae474-0529-4ee4-9167-49d961a20963","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":104,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"121bb878-9ccd-4a82-857d-1c6e4872e774","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":104,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"fe464c63-fa4b-49a8-b693-8bfdde4a1870","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":104,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"820f8c03-0fdb-416d-bd5f-f731dd612218","block_type":"box","text":"that could create uncer tainty and instability in domestic and global markets and could adversely affect the","page_number":104,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"adc40227-1be8-41c2-97a5-b9681e7c7ee0","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":104,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"a4927407-9daa-4198-ad19-08f4684790e3","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":104,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"543cfdf8-1760-45a3-bf35-c75ca841b030","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":104,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"ee91087a-f920-49ae-8c06-9328a5b34f69","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":104,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"69bcc5b0-6ac9-40ea-a31d-5c33312f6934","block_type":"box","text":"branches of the U.S. Government, the U.S. Government’s inability at times to agree on a long-term budget and deficit","page_number":104,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"4dafecea-e3ea-433b-81da-fba3275028e5","block_type":"box","text":"reduction plan, the threat of a U.S. Government shutdown, and disagreements over, or threats not to increase, the","page_number":104,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"8b01074c-c16f-4ddf-b5f6-a7272f6fb02e","block_type":"box","text":"II-67","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1eaf4be4-3286-4888-9838-fbcbf4ddb20d","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7bf27a28-9922-402d-ab17-fe4959eca927","block_type":"box","text":"U.S. Government’s borrowing limit (or “debt ceiling”), as well as political and diplomatic events abroad, may affect","page_number":105,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"e4cde9b8-c88a-446e-8b0e-0a2ef12d9f9d","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":105,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"aab64578-04cf-4dd3-9122-d334c75afdd2","block_type":"box","text":"suddenly and to a significant degree. A downgrade of the ratings of U.S. Government debt obligations, or concerns","page_number":105,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"84bfa13d-7b31-4aad-8f41-e9def65b1c65","block_type":"box","text":"about the U.S. Government’s credit quality in general, could have a substantial negative effect on the U.S. and global","page_number":105,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"4b75ebfa-a752-4caa-adbc-b7815896efe1","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":105,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"a0d1667f-022c-44e5-88c0-44ca0df55d78","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":105,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"6a04c122-37af-462d-a191-743dc09c4960","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":105,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"de0231d0-0e2e-4683-bbbd-dda832289122","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":105,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"127aa802-0fb0-42ff-a2e0-87849df48dc1","block_type":"box","text":"unprecedented event are impossible to predict, but it is likely that a default by the United States would be highly","page_number":105,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"e0f3f4f3-368f-4a57-b2ae-d5cb2e204a11","block_type":"box","text":"disruptive to the U.S. and global securities markets and could significantly impair the value of the Fund’s","page_number":105,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"a2dca5f9-d342-4ecb-88ea-f0d379d41f77","block_type":"box","text":"investments.","page_number":105,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"543c7e4b-dff2-4ebf-b59a-1fd0c4dec075","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":105,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"3631aec8-4fdf-4083-a66b-fd28a08e49f8","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":105,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"fae22527-c14c-4564-ab7d-24e52abbf746","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":105,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"5d5395d1-54e8-41b9-be9f-cbab0e175382","block_type":"box","text":"in the future, could affect the economies of many nations, individual companies and the market in general in ways","page_number":105,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"8b90153a-86c9-4c6d-b980-145c58dd34c1","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":105,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"52f90293-fd26-4a4c-804d-770fa7093d09","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":105,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"cccf21d6-7ba0-4692-b4e5-95694b6ab85d","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":105,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"54a4c9f9-22fa-4111-bee5-a4e212bfa2a7","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":105,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"06185a6f-9341-48bd-8625-ab34b4888aae","block_type":"box","text":"Legal and Regulatory Risks.","page_number":105,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"3db40faf-a191-4e26-b5d0-79326ff608b9","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":105,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"9aed0e59-a9cf-4c5a-8b9d-f97435dfbfd3","block_type":"box","text":"jurisdictions that are governed by a multitude of legal systems and regulatory regimes, some of which are new and","page_number":105,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"502f44fd-49ae-48fb-a22d-d8bb8bf2fc2f","block_type":"box","text":"evolving. As a result, the Funds and the Manager and its affiliates are subject to extensive and sophisticated legal,","page_number":105,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"7f7b4ae1-d37b-4de2-955b-746850de91be","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":105,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"ff98f793-48b5-4a37-b6c9-706cf923dfd0","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":105,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"5cca5902-f484-402a-8180-d7ab904bd6b8","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":105,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"087b2e77-293e-4821-80fa-7197d66958f3","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":105,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"e18ee12c-16e7-49f8-8c07-d50080edfad0","block_type":"box","text":"changes to comply with current and/or new regulations applicable to the Funds and/or the Manager could have a","page_number":105,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"a24393eb-2d32-4c1a-bc59-cc6f2e6d525b","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":105,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"2972a286-74e8-4cfd-b5f9-536735849cff","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":105,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"5991efaa-8e9b-49be-947b-f90d45063262","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":105,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"09b14398-3188-4c41-8975-ecb2126cae7c","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":105,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"86d2b9aa-f677-4d50-9afe-ed6c65ac7ba4","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":105,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"f5bdbcee-bc69-40f9-8e5e-f02badb2891c","block_type":"box","text":"international trade relations, cer tain tax and immigration policies, and other aspects of the national and international","page_number":105,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"a59ae8e6-3db1-4afb-8207-9129ab3ecb64","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":105,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"a3bf060a-48db-4a39-94bf-ba34c3be7b93","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":105,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"404f04e4-90ce-4083-a7a1-33ca3c255cd0","block_type":"box","text":"Union, and the risks associated with trade negotiations between the U.S. and China, could affect the economies of","page_number":105,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"9f77aa0c-cc69-458b-9d8b-1d5cb3629b81","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":105,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"823fbf87-02a7-4e39-a3b3-b36a19f8e34a","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":105,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"14f6fbe7-3f70-4987-a157-eb472479689b","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":105,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"f1c09c24-67f7-449b-82c0-71a7b323cd56","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":105,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"b9545b11-66e1-4643-82f0-dde654f89ffa","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":105,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"1ca42ec6-b23f-4521-a5fe-bec6d1d77e44","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":105,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"3889ba4a-42ed-45ee-ab57-a0d0adb42aa8","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":105,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"851e695a-1661-4b47-9557-a7f7c76d1daf","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":105,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"d65ce0cf-80fa-4858-a75a-5b19b6c12c42","block_type":"box","text":"Geographic Risks","page_number":105,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"9db6cb64-cd42-49a8-84a2-008696c5f1b8","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":105,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"a08ba247-938e-4b57-a94a-2159f12dc9c8","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":105,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"8dc69513-8318-4db3-92a9-4bc07c43580d","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":105,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"17a9af5a-d5bf-4bd1-bb5a-e3e15d70a46d","block_type":"box","text":"addition, issuers may be impacted by security concerns with respect to a country or region, such as war and other","page_number":105,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"59d29e85-a2f5-4d0c-8257-acd9eeeae382","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":105,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"ea9004a7-9d1a-4129-919b-24674b584313","block_type":"box","text":"affect the issuers, markets and economies to which a Fund is exposed, which may adversely affect the value of the","page_number":105,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"5e64d7b3-aaa0-4d59-a106-493785b1da38","block_type":"box","text":"Fund.","page_number":105,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"8116a26a-a97c-4817-8fc7-1798a3b99a7c","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":105,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"05e397d4-46ff-4f2c-9af7-e1cbb0a6f326","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":105,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"1305c329-c648-4bd2-82ba-329731ced689","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":105,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"e7245d85-4cbc-4cd4-9ccf-cf1b7f43e4af","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":105,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"c0bbf519-85e0-475a-9cd5-6a7c796170c7","block_type":"box","text":"or any other changes or reforms to the determination or supervision of a Reference Rate could have an adverse","page_number":105,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"f0a2a1e1-bad7-4d3e-90f2-1011f289bc3c","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and cer tain derivative instruments)","page_number":105,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"9b689f88-4269-4169-a6b7-8b0a1c98b216","block_type":"box","text":"II-68","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f7331145-621d-44c8-bea8-abd8737f819c","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2fe58a94-8c1f-41b4-8874-dbf141445435","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":106,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"9a6d6f46-0c64-44aa-8191-a4cbaa0530d9","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":106,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"27a5d76e-b4db-4cb0-bd13-c045d56f8749","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":106,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"bd82254a-1082-4152-a699-89d4f27cf3b7","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":106,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"47d8e943-fb01-49a5-8a81-937b2be50d3a","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mor tgage-related securities, interest rate swaps and other","page_number":106,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"9274dbde-4453-4a74-a41f-3091441e9d8f","block_type":"box","text":"derivatives. Instruments in which a Fund may have historically paid interest at floating rates based on LIBOR or may","page_number":106,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"d58def87-fd46-4b29-9083-970fd8e3d520","block_type":"box","text":"have been subject to interest caps or floors based on LIBOR. The Funds and issuers of instruments in which a Fund","page_number":106,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"bc0981fc-b1e9-4743-a3f2-51f2e8674f1f","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":106,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"3d29c76e-1f91-4dfa-bc32-6b3beb2c81f3","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":106,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"8ebad7ed-3d3c-4100-a0b5-d9ed6150c6f9","block_type":"box","text":"last published on a representative basis at the end of June 2023. Alternative Reference Rates to LIBOR have been","page_number":106,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"caedf448-99b2-4243-b12a-20e996783259","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":106,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"5d4bf10f-610f-42f1-84a7-ee96a3706ab8","block_type":"box","text":"e.g.","page_number":106,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"8cabafc4-ad14-4903-a615-cca036077178","block_type":"box","text":", SOFR for","page_number":106,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"1847b50d-fa15-4ead-86f2-60abd55e7f32","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":106,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"3ff0543b-024e-49a2-bb5e-c2d8b74176e4","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":106,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"73d50e8f-70bd-47ac-9f9d-dc869ffdf157","block_type":"box","text":"impact of the transition on the Funds or the financial instruments in which the Funds invest cannot yet be fully","page_number":106,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"13dc786f-50e0-4f94-b53b-91eeb993ae95","block_type":"box","text":"determined.","page_number":106,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"6e286270-ca97-48bc-bea0-125b7ddc71e3","block_type":"box","text":"SOFR is intended to be a broad measure of the cost of borrowing funds overnight in transactions that are","page_number":106,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"01b9da70-f56a-4ff5-b580-d3aa50ea0b86","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":106,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"ded2663c-114c-4392-bdf5-39f8167d0033","block_type":"box","text":"various sources. For each trading day, SOFR is calculated as a volume-weighted median rate derived from such data.","page_number":106,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"78a00b99-ac47-4060-bf19-055cf3ff29f4","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":106,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"66a8a558-8ce4-4195-b7aa-1c22c06dad0b","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":106,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"09bde4f4-ec3c-47ea-8961-11c4828ad15b","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":106,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"d2ca48ed-d8c9-4d4e-aa86-b8093183afef","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":106,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"85fa5903-0c72-456f-ba2c-629538c5f50a","block_type":"box","text":"In contrast, SOFR is a secured overnight rate reflecting the credit of U.S. Treasury securities as collateral. Thus, it is","page_number":106,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"042d544d-5b27-468b-a2f1-633f4d771577","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":106,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"ceb3ab2e-58f3-4312-b9f9-0cfc5ebf4178","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":106,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"8744a60b-99e9-4cb8-a413-abbbf7801212","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":106,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"5930c54c-bed0-4863-8ea7-26d9bde98cb1","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":106,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"e304cc61-7cce-469d-b06c-ec86dbca908b","block_type":"box","text":"rates will be a suitable substitute for LIBOR. SOFR has a relatively limited history, having been first published in April","page_number":106,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"4dd2818f-f659-49cb-81df-661e2943c149","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":106,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"6b44bb13-efe3-4853-ae87-13967c790fcb","block_type":"box","text":"history or otherwise. Levels of SOFR in the future may bear little or no relation to historical levels of SOFR, LIBOR or","page_number":106,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"6ca0d811-ec0c-468b-9bd2-7a83d36f1c14","block_type":"box","text":"other rates. There can also be no assurance that SOFR will not be discontinued or fundamentally altered in a manner","page_number":106,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"09759a40-9886-472f-9ebb-c1dc377a7953","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":106,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"6d8cb756-2113-4375-94d3-40f0f15da9bc","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":106,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"c65a8585-762b-4431-b317-691e564ef59d","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":106,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"733119d4-bf2b-45d1-812a-b178434262fe","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":106,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"b42d0289-c73d-4bdd-82f5-60f80c86257e","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":106,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"68152348-0cb5-4ef4-8211-9748e962d418","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":106,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"5280c0f7-b6bd-40aa-abb1-9b938e478e1e","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":106,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"c47941f9-dbce-4ba6-89be-f64fe6334931","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":106,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"e496932c-635f-4f48-9199-83b422d49f75","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":106,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"470fc7fc-4135-4eed-ba50-9b03ed09f382","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":106,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"aa935dc2-cd0d-411a-a313-174f6521f14e","block_type":"box","text":"cer tain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":106,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"a8d4a5fc-ed1b-4f8a-a318-3a6bb458b9e3","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":106,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"9da82a6b-d81b-49fe-b4e8-dfe1d38e4d70","block_type":"box","text":"consequences which cannot be predicted.","page_number":106,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"9faec08a-6dcd-465f-9a36-77eac86248f3","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":106,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"33821e7c-0843-440f-a86d-27e9c62053d0","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":106,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"37c118f8-3339-401a-a886-addd948055c3","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":106,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"f2dce75d-6820-4d45-849c-009b3678fea0","block_type":"box","text":"the Fund at a mutually agreed-upon time and price in a specified currency, thereby determining the yield during the","page_number":106,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"61f8ac30-33f4-4710-8e69-735bbb071e23","block_type":"box","text":"term of the agreement.","page_number":106,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"dfe6d6df-dd84-4136-bea9-2bdf7d8a35fb","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":106,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"e1bb3ee4-c7a0-435f-8700-93082c7146fd","block_type":"box","text":"that securities are owned by the Fund and the purchaser receives any interest on the security paid during the period.","page_number":106,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"db306412-ada7-45fc-b07b-054da25cbf51","block_type":"box","text":"In the case of repurchase agreements, the prices at which the trades are conducted do not reflect accrued interest","page_number":106,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"6037b6d7-b571-4325-b2ae-abe6bf69be5b","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":106,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"59bd5503-93d5-4eec-8f3f-4f3876096a5d","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":106,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"3fc98db1-a94e-4636-bc88-d8bc7a88c747","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":106,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"c3d9486a-d6c7-4ca3-8b66-b328e9fb3fcd","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":106,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"8825d9a8-d805-4041-887d-d1b853ccbecc","block_type":"box","text":"II-69","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"82b9fe1b-0cc6-4de1-9c5a-ead0b28051e3","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b7bcd51a-1afa-4b04-afa8-b52434af9587","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":107,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"79265f6b-4b66-4d93-8298-537207848e05","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":107,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"78b98022-e2cd-4205-91bf-24edb0b36862","block_type":"box","text":"currency fluctuations. However, in the event of a default under a repurchase agreement or under a purchase and sale","page_number":107,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"f2d1552c-cf59-4bba-bbd7-030e8cf4da78","block_type":"box","text":"contract, instead of the contractual fixed rate, the rate of return to the Fund would be dependent upon intervening","page_number":107,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"a46166dd-88db-46b4-94ae-1814c38fd4a6","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":107,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"1dc3df9e-9fb7-4353-8ea8-5e39d5604e5c","block_type":"box","text":"securities. In such event, the Fund would have rights against the seller for breach of contract with respect to any","page_number":107,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"05b56850-5ee7-411c-912c-51c157faf455","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":107,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"6d7a34de-86ec-43d3-95fb-219c5cb7ce16","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":107,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"3f77f5b3-5e2f-4558-9d36-9486f7bde3e6","block_type":"box","text":"longer terms, and may be construed to be collateralized loans by the purchaser to the seller secured by the","page_number":107,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"65da381b-2f77-4280-81dc-01d77667ac5a","block_type":"box","text":"securities transferred to the purchaser. In the case of a repurchase agreement, as a purchaser, a Fund’s Manager or","page_number":107,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"50352519-901f-46e5-bd6b-02ac2b4d0113","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":107,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"cbdda08b-0e86-46e0-bc97-fa55ba8a4626","block_type":"box","text":"collateral if the market value of the securities falls below the repurchase price at any time during the term of the","page_number":107,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"114d78c2-2cf1-4e46-9dd0-4ac92b92a26f","block_type":"box","text":"repurchase agreement. The Fund does not have this right to seek additional collateral as a purchaser in the case of","page_number":107,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"23c3fe5a-22ef-42fa-9cad-44f2d9d9d56e","block_type":"box","text":"purchase and sale contracts. The Fund’s Manager or sub-adviser will mark-to-market daily the value of the securities.","page_number":107,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"0ba679db-9d29-4562-a0b1-f3c59c11b76f","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":107,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"024a5b3b-fc15-403e-b710-b1d30628f9df","block_type":"box","text":"contracts will be held by the Fund’s custodian (or sub-custodian) in the Federal Reserve/Treasury book-entry system","page_number":107,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"ab9e3dd2-c269-4679-bf66-5c701d0537fa","block_type":"box","text":"or by another authorized securities depository.","page_number":107,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"8d92e83c-32e8-40b5-a170-d342ba951982","block_type":"box","text":"In the event of default by the seller under a repurchase agreement construed to be a collateralized loan, the","page_number":107,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"79e31328-ab38-4777-bdce-f5d3a9bc0efd","block_type":"box","text":"underlying securities are not owned by the Fund but only constitute collateral for the seller’s obligation to pay the","page_number":107,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"8ebfd5b2-85e2-42a3-be24-2a4ec560bb5e","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":107,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"cba693cd-8e2b-48e5-bb84-0bfce168c696","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":107,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"dff65497-f55a-435c-a5ea-e4f540cf959e","block_type":"box","text":"applicable bankruptcy or other laws, a Fund’s ability to dispose of the underlying securities may be restricted. Finally,","page_number":107,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"cee417b0-76a2-402b-b40c-953e77a01dac","block_type":"box","text":"it is possible that a Fund may not be able to substantiate its interest in the underlying securities. To minimize this","page_number":107,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"3400d652-0322-4cd5-9f45-55a5e7e5e7df","block_type":"box","text":"risk, the securities underlying the repurchase agreement will be held by the applicable custodian at all times in an","page_number":107,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"1a9f6dcb-3f28-4a7c-bfd9-32c9ee839a23","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":107,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"2a67746f-e575-4e49-9ba9-0730c353419b","block_type":"box","text":"securities, a Fund may suffer a loss to the extent proceeds from the sale of the underlying securities are less than","page_number":107,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"4fc2e2dc-0cae-4036-8395-f7d7580558d6","block_type":"box","text":"the repurchase price.","page_number":107,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"70598422-c955-4b95-990c-5327f35c7aa8","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":107,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"6f013703-2596-47fc-954d-31ec4556f4dc","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":107,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"20927c08-7f47-4f16-9d97-cd1b747d1fda","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":107,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"44df9ff2-7dc1-48aa-9012-d0563a7954ee","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":107,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"8da80dac-1e20-4c34-8617-d687d7b1ac14","block_type":"box","text":"strategies without the repurchase obligation.","page_number":107,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"b26753b3-b075-4c2a-85f3-46dde28e7206","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":107,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"a7b7fb48-5e91-463e-aa8c-1e7161e896a3","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":107,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"b12cc4d1-a230-42ad-8b82-af0be75080c8","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":107,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"819185c8-b0e7-4fe8-8225-59528db4de3b","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":107,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"bb7e26cb-13db-43b6-ae13-14b68f1a14a0","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":107,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"d06353e2-92ac-4fc7-ae6e-cf5636e189a6","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (","page_number":107,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"391f5edb-2743-4c15-9add-370c2f6f761c","block_type":"box","text":"i.e.","page_number":107,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"6b6d4033-a936-4ec5-bc28-169cb039d787","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":107,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"171ea35b-d937-4173-9aaa-e3c7706589ec","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":107,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"91f8ddf1-ba8d-434a-aa7a-8c9f45e56ce2","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":107,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"2202086c-170b-4b63-bffb-a572860870ab","block_type":"box","text":"and income involved in the transaction.","page_number":107,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"85fd74ea-204d-40b8-85ba-cf1ebc17b3c2","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":107,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"c74f0874-35f1-4eb3-b498-1f4bdcf22958","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":107,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"a4538b6d-fbeb-4be6-89b3-0a4ff3aaf8ff","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":107,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"1868c656-1cb1-4628-9cfa-ccd5ce8a50ad","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":107,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"cc6b6db0-ff27-44b3-8812-45e21fe0de8f","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":107,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"4c4e7c46-20a5-4ea5-880d-b9acdf74072f","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":107,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"348864d4-9b25-4aac-8c50-83629f02b2c2","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":107,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"bb3d1fe0-f1f2-4bd6-b2cc-ba55733432a5","block_type":"box","text":"contracts or to realize amounts to be received under such agreements. The SEC has also finalized rules that will","page_number":107,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"92d0dc10-49fc-4479-8256-c1662cd700e3","block_type":"box","text":"require cer tain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":107,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"19925b57-f0bf-4534-85d6-63b604a7ccac","block_type":"box","text":"Compliance with these rules is expected to be required by the middle of 2027. Although the impact of these rules on","page_number":107,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"077cb126-da80-463b-86f2-dce5da54f22f","block_type":"box","text":"the Funds is difficult to predict, they may reduce the availability or increase the costs of such transactions and may","page_number":107,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"c84800a5-72b2-4c36-9e56-67097771ce5d","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":107,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"2edc8fcf-6888-43a8-9aa0-9deb7fe1134c","block_type":"box","text":"Restricted Securities.","page_number":107,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"7d649961-5db5-4d53-9986-2fb032fc809e","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":107,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"9625e7bb-b81f-47f8-82c5-2809464c3e49","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":107,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"003ca912-bb8b-44d9-aae8-3956b3c606fc","block_type":"box","text":"II-70","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"816dd935-8000-45fc-846e-517347cc9a76","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3da530fa-4a17-46c5-b015-91ab1029ff7d","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":108,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"c426a149-a3b0-4dd2-8ecb-e7a4bd3a7378","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":108,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"e9ffafa8-6c53-46d3-90a0-a94986e356d1","block_type":"box","text":"listed on an exchange nor traded in other established markets. In many cases, privately placed securities may not be","page_number":108,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"67ae3296-4cdb-492e-a1e0-74a9ca291f61","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":108,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"a723826c-be8c-42b2-9844-6d69221e0cb4","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":108,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"a4bd53fa-26f3-48a5-95f5-276472f66e38","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":108,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"5b552b5c-7052-4420-afc5-60bb9556cce0","block_type":"box","text":"are in restricted securities that are not traded in public markets and subject to substantial holding periods, so that a","page_number":108,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"04fc021a-f22f-471b-84e5-e3413822477f","block_type":"box","text":"Fund may not be able to resell some of its holdings for extended periods, which may be several years. There can be","page_number":108,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"377ac541-537f-431a-8fad-44d9df20ed91","block_type":"box","text":"no assurance that a Fund will be able to realize the value of such restricted securities in a timely manner or at all. As","page_number":108,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"4928b4fc-a044-4f4f-ab08-249690be3de8","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":108,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"e9948ccf-3bb6-4a4c-8fa0-642dcc30990f","block_type":"box","text":"restricted securities may be deemed to be illiquid investments or less liquid investments and may be more difficult to","page_number":108,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"b7258ec0-c458-4556-a61b-7d07ce0b6281","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":108,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"602f3499-5423-4501-ac41-40982ed2ea2c","block_type":"box","text":"transactions, the prices realized from the sales, due to lack of liquidity, could be less than those originally paid by the","page_number":108,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"a80962ec-b098-46b9-8e9b-6d9032ae019d","block_type":"box","text":"Fund or less than their fair market value. The amount of any discount may vary depending on the security type, the","page_number":108,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"f782a6a9-a872-4fd1-b21c-de21fa93e787","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":108,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"a546f20d-d67b-4cc0-a7b7-841e4afd7a9b","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":108,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"b048edfb-6787-4284-b25a-809978df464c","block_type":"box","text":"listed may not be subject to the disclosure and other investor protection requirements that may be applicable if their","page_number":108,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"ccaac674-080b-4e15-ab8a-01d4524404b7","block_type":"box","text":"securities were publicly traded. If any privately placed securities held by a Fund are required to be registered under","page_number":108,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"3fdaf031-2141-4d9c-824a-b698111aa44b","block_type":"box","text":"the securities laws of one or more jurisdictions before being resold, the Fund may be required to bear the expenses","page_number":108,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"d25e094e-c1c4-49d1-a9c0-3372c71b4485","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":108,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"9db1c6f9-e58f-4efe-adaf-e836ef5a2c63","block_type":"box","text":"between the time the Fund decides to sell the security and the time it is actually permitted to sell the security under","page_number":108,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"99b98241-3d4d-4f00-8fb6-003a88f3ee83","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":108,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"148a6491-40a1-44d0-8329-f3af2526264b","block_type":"box","text":"obtain less favorable pricing terms than when it decided to sell the security. In addition, the Fund may be deemed to","page_number":108,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"aa287138-417a-48e2-82d5-a4b16d9ab7ff","block_type":"box","text":"be an “underwriter” for purposes of the Securities Act when selling restricted securities. If so, the Fund may be liable","page_number":108,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"622d5ca8-e1d5-42dd-922b-0e39d3df08c6","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":108,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"2871f6d0-29ac-4e52-9538-1849a18def2b","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":108,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"a2b85b30-ce3e-4fa7-99b2-e61f40ab1c46","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":108,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"005a72c5-3519-4484-92d2-2da84b05649b","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":108,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"f709da61-cb97-4a56-ac4e-d9e83caeee8a","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":108,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"bcb5288c-5e3f-40d5-b49d-d1b707b942fd","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":108,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"c630d8e6-f216-46ee-8303-f5d95ceaa834","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":108,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"b4c5696a-ccb4-4409-9056-7b01bcac8d17","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":108,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"f0867826-8708-4308-a981-93cdfd8f86f4","block_type":"box","text":"operations of such issuers, and investments in securities of such issuers may involve a high degree of business and","page_number":108,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"a46ae990-591d-4d74-a266-6209b0caef27","block_type":"box","text":"financial risk and may result in substantial losses to the Fund. Such issuers may also have limited product lines,","page_number":108,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"5e19af53-c4bf-44ab-9b84-5e79da1110f2","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":108,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"05d6471a-dca5-4bc2-a6f2-e24092023054","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":108,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"51e9d62a-2a40-442d-8fb5-9806f5666452","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":108,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"894d231c-8e62-4145-b066-501d9d11ff88","block_type":"box","text":"Fund’s net assets grow from new or additional investments made in the Fund by other shareholders. The issuer of a","page_number":108,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"06956608-37e3-48ff-9f0c-f438b3b92b76","block_type":"box","text":"private placement may later register those shares for public sale in an IPO, but there is no guarantee that an IPO will","page_number":108,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"60af4346-b9f2-4815-a469-1a43a884067f","block_type":"box","text":"ever be completed. Even after an IPO, there may be a limited trading market for securities of that issuer, including","page_number":108,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"b7135194-be1c-45f8-a8e7-87c92b019f20","block_type":"box","text":"any direct investment by a Fund, or the Fund may be subject to contractual limitations on its ability to resell its","page_number":108,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"c2ba591a-2a9f-43e5-a6a0-b267e74d3959","block_type":"box","text":"existing securities following an IPO. The inability of an applicable issuer of a restricted security to complete an IPO or","page_number":108,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"907c6199-7e85-4307-8c80-efe25e6eda6c","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":108,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"ac90c6d7-f8b4-4ae1-af71-c91072a057a0","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":108,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"3f77bd67-bd3f-4452-8eda-98b01d960156","block_type":"box","text":"such securities, a Fund may obtain access to material nonpublic information, which may restrict the Fund’s ability to","page_number":108,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"314b45c2-dda2-4a38-a1b3-0692c9d48d15","block_type":"box","text":"conduct por tfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":108,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"2c1f1790-fdee-43dc-894f-1dab1198fa4e","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":108,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"34690fa2-3e6f-4abe-9aae-0e3e2032e0bf","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":108,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"048ae392-ee1a-4669-bf21-61d71296d35c","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":108,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"42654410-b665-4c16-a113-7803c1cd6615","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":108,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"e24a87c1-dd26-4ecf-a013-ba093fe55ce7","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":108,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"9641169f-0a6e-4d23-95ad-5b5a61914961","block_type":"box","text":"especially as that Fund grows in size.","page_number":108,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"eda85a6d-98d5-4dc4-9183-dec918101bf7","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":108,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"31005a7a-92dd-490e-8088-f00f9f114c26","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":108,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"0b8d8877-639d-4121-b31a-d3ea1cea79d2","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":108,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"108e7078-2a2b-4daa-a457-e82c04760882","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":108,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"cef9845e-d540-4815-b8d9-9d67de1bce2f","block_type":"box","text":"determining the fair value of investments that do not have a readily available market value, the fair value of a Fund’s","page_number":108,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"97603e63-9ed1-43bd-b3a8-36a3fc84e417","block_type":"box","text":"II-71","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8fa2b8b1-ced5-4b14-8df1-48edf405a4d4","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d9aaf953-043f-4c1d-b5d2-f3df2f6d7c1c","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":109,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"87ddaa9d-6f60-4dee-8846-e1424f1e2c07","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":109,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"dd77eace-806a-4769-b80d-523e3fa506b5","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":109,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"da789cf4-de82-49bc-859c-92fbd4c906c9","block_type":"box","text":"Fund’s shareholder transactions being effected at a NAV that does not accurately reflect the underlying value of the","page_number":109,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"1ffef552-4422-4394-89bc-cc8ff92ad944","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":109,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"33d625db-4daf-497e-af25-2df5e876b2a8","block_type":"box","text":"shareholder arbitrage. The values used by the Fund to price its restricted securities may also differ from those used","page_number":109,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"510c444a-0d7d-4585-ac54-bba40c7c02a6","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":109,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"caa61e10-1d69-4190-9832-dfa59c68fdf9","block_type":"box","text":"changes in the market environment and other events on the fair values of a Fund’s investments that have no readily","page_number":109,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"cb4375a1-a6aa-4122-8aa8-624a3815e709","block_type":"box","text":"available market values may differ from the impact of such changes on the readily available market values for the","page_number":109,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"f269a774-3363-4bec-b2f1-82834de5e997","block_type":"box","text":"Fund’s other investments. A Fund’s NAV could be adversely affected if the Fund’s determinations regarding the fair","page_number":109,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"cfbf4d07-6040-484a-accc-574e8ccf7b1f","block_type":"box","text":"value of the Fund’s investments were materially higher than the investment’s actual market or fair value or the values","page_number":109,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"4c4c66fd-abb6-472f-a9fd-d9c5132248f5","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":109,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"47ddd88b-3361-4c2a-bbdd-e8b3fb9cbf7a","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":109,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"54e63d22-94f9-475e-ae26-275b3d823832","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":109,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"0056eaad-74de-44ff-b0bc-d0243540f4b6","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":109,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"d06b88b2-4b79-4ac4-9dcc-37aca417c35e","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":109,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"e35aff06-04bf-4d0e-a894-4d01de346222","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":109,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"ae408d3c-5dc9-48a3-8290-d38f9118d357","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":109,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"ddd9aae9-e747-455d-b713-b2ea30dae9df","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":109,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"6b5e6726-2475-4bae-95eb-1da4bfc6d40c","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":109,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"82fe97ef-08fc-40b8-8611-8971551da392","block_type":"box","text":"Fur thermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":109,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"e4095dd9-7da5-43de-87fa-593d291e9fb8","block_type":"box","text":"of the proceeds will be less than the interest expense, (ii) the market value of the securities retained in lieu of sale","page_number":109,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"f2002440-9f43-4694-913d-ada799692e10","block_type":"box","text":"by a Fund may decline below the price of the securities the Fund has sold but is obligated to repurchase, (iii) the","page_number":109,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"b365548f-9154-4c7c-88eb-d3eb58e314d6","block_type":"box","text":"market value of the securities sold will decline below the price at which the Fund is required to repurchase them and","page_number":109,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"499c5540-70d5-4c75-ba28-8556adf94cad","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":109,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"66e9bcc6-9cec-4516-aaad-3b218932b73a","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":109,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"6d8c0b24-4904-44ef-b43a-1d74c2689463","block_type":"box","text":"insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to enforce a","page_number":109,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"ae5d5651-7e07-4770-bf49-d5ccbf79b12e","block_type":"box","text":"Fund’s obligations to repurchase the securities and the Fund’s use of the proceeds of the reverse repurchase","page_number":109,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"87d6d367-63ab-4476-ba4f-fb3cb19f48bc","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":109,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"debb257e-268e-4fc4-b41c-ba8d9d22f6ea","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":109,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"6e0bd9a5-5797-4ec4-8246-c992de7a262e","block_type":"box","text":"similar financing transactions (","page_number":109,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"b8562cd2-d2c2-4075-98da-3ff69694cea8","block_type":"box","text":"e.g.","page_number":109,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"81f41c3c-9363-4d19-861c-8583aa01c214","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":109,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"6796ded4-b4d6-46a4-ac28-f4e28c98b219","block_type":"box","text":"the limitation on the issuance of senior securities in Section 18 of the Investment Company Act, provided that the","page_number":109,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"6cd8c45a-786d-4757-8f60-358e0181ee53","block_type":"box","text":"Fund either (i) complies with the 300% asset coverage ratio with respect to all such transactions and any other","page_number":109,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"633b5c97-7d2c-4071-a267-1a2128f0e1f9","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":109,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"435768f6-26c8-4c94-b6f1-ad1fcccd716f","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":109,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"32679002-d440-4061-b393-493321fdb0cf","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":109,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"39400f8d-05c6-4081-b670-0af8c59beb68","block_type":"box","text":"agreements, to be centrally cleared. Compliance with these rules is expected to be required by the middle of 2027.","page_number":109,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"05fbbb2e-1ce1-4f80-a81c-f2272acb3ec1","block_type":"box","text":"Although the impact of these rules on the Funds is difficult to predict, they may reduce the availability or increase the","page_number":109,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"1b352de9-1c7d-4fe4-a1c7-e4ea15500ddf","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":109,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"8bd5c4e5-d7ee-4e24-a0ae-bfb08b7344c6","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":109,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"23d20e43-82e8-44da-b449-fcd4dc571bb7","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":109,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"bfefaa9d-0eae-4aa2-84b4-a04d3a96efd6","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":109,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"3984ab2a-1f50-492b-9deb-dbb1fc75127a","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":109,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"7184eeda-bfa5-499d-9411-1fc689cef9bd","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":109,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"624d2587-588d-4c35-939f-0e0e8e6aa092","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":109,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"1d06300d-1b13-48eb-ad81-3b33b2e5bafb","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":109,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"f96a2dff-6abf-4ac2-b2b1-1931635abc43","block_type":"box","text":"amounts to be received under such agreements.","page_number":109,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"d55bc514-1ef5-470b-ac90-0f526a3a86f3","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":109,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"f5e6c6bf-eb9a-4ff0-9192-e022f4626cca","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":109,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"1d4f4ef7-e3e2-4f85-880f-2b29dfcae043","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":109,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"89913876-80d5-4bcd-bcda-3cbd4cb42f36","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":109,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"dc5dabfe-7210-46ed-a21a-b466436792c3","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":109,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"1c366471-979b-47ad-8414-cdbb642b2363","block_type":"box","text":"lose the purchase value of a right or warrant if the right to subscribe to additional shares is not exercised prior to the","page_number":109,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"be32f320-5ceb-4844-a9b7-fd1a3145efd9","block_type":"box","text":"rights’ and warrants’ expiration. Also, the purchase of rights and/or warrants involves the risk that the effective price","page_number":109,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"d8e22adc-32a9-4ed5-94d6-c41d2977a9b2","block_type":"box","text":"paid for the right and/or warrant added to the subscription price of the related security may exceed the value of the","page_number":109,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"6e31bcf3-5068-46e2-ba29-4e0aa1613642","block_type":"box","text":"subscribed security’s market price such as when there is no movement in the level of the underlying security. Buying","page_number":109,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"1363edeb-74b7-4d33-a759-ce4aa1be9548","block_type":"box","text":"II-72","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b8caf4d2-8d28-4e82-9f66-137a92949737","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4da5a4d9-5358-40b1-abdd-b86131d90fc0","block_type":"box","text":"a warrant does not make the Fund a shareholder of the underlying stock. The warrant holder has no voting or","page_number":110,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"68e3b447-d751-4311-89c9-81a04bd90723","block_type":"box","text":"dividend rights with respect to the underlying stock. A warrant does not carry any right to assets of the issuer, and for","page_number":110,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"b5e54fb6-8691-4721-b925-a7b831b911bd","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":110,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"531b8ab8-5283-45e0-8595-05bbf2217fec","block_type":"box","text":"Rule 144A Securities.","page_number":110,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"3d0bfc81-ac62-4f59-8988-963e162215c1","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":110,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"12d28465-6a52-4048-8ead-decc3c360658","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":110,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"010fa56e-6cb4-442d-a7b1-4ecf39ce8815","block_type":"box","text":"Securities Lending.","page_number":110,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"65f64613-4868-4230-bcbd-5bcf7cdc15a2","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":110,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"fa0a2144-58fa-4e5f-adf8-f28fd43be0e4","block_type":"box","text":"be creditwor thy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":110,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"f0b5f5eb-da88-43c6-b13d-8cc683578a23","block_type":"box","text":"an amount at least equal to the current market value of the securities loaned. No securities loan shall be made on","page_number":110,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"853d98cc-8d63-43a3-b45d-2934bb25d965","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":110,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"06e8fd1c-cf90-461e-b1f1-37336701bfa1","block_type":"box","text":"the value of such Fund’s total assets (including the value of the collateral received). A Fund may terminate a loan at","page_number":110,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"6b422196-cb33-4035-b5cf-1a3a60940670","block_type":"box","text":"any time and obtain the return of the securities loaned. Each Fund receives, by way of substitute payment, the value","page_number":110,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"ce6e1394-705d-42ab-a537-42f71c19c557","block_type":"box","text":"of any interest or cash or non-cash distributions paid on the loaned securities that it would have otherwise received if","page_number":110,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"41a67ba3-4724-4344-8006-6d4cf2e554da","block_type":"box","text":"the securities were not on loan.","page_number":110,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"62ce0987-9ebd-4144-a40a-e569e67b23db","block_type":"box","text":"With respect to loans that are collateralized by cash, the borrower may be entitled to receive a fee based on the","page_number":110,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"3e3a641a-de20-425d-acbb-318d74086d3d","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":110,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"085b2484-c751-45f7-8796-bf995aef4da9","block_type":"box","text":"reinvestment of cash collateral and the fee paid to the borrower. In the case of collateral other than cash, a Fund is","page_number":110,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"9d65943d-561e-4403-86a5-ec985c76f9f0","block_type":"box","text":"compensated by a fee paid by the borrower equal to a percentage of the market value of the loaned securities. Any","page_number":110,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"36d2ee55-20fd-4683-991e-e945eb2c6bc2","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":110,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"ca7926bb-d103-49a5-b2d4-b6e8136af02e","block_type":"box","text":"instruments either directly on behalf of the Fund or through one or more joint accounts or money market funds,","page_number":110,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"1c864152-55fc-47cf-a75f-804fd07fd8b7","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":110,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"257ca12a-c1e1-4948-9b1c-bd0bb159b941","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (","page_number":110,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"1edf52fd-4973-43e3-b2f9-c6f86f2e13e2","block_type":"box","text":"i.e.","page_number":110,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"c0785a00-9fa3-4b19-9c85-8233a7e9e253","block_type":"box","text":", the risk of losses resulting","page_number":110,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"3e099bb8-9d5f-499a-a633-275ced1f72bb","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":110,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"966a21a5-6c9f-4bae-910b-c0a8fec30afd","block_type":"box","text":"i.e.","page_number":110,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"771a67fd-b97b-482a-aebc-0ab057747adc","block_type":"box","text":", the risk of a mismatch between the return","page_number":110,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"1fa8af3b-b75e-4c9e-adbe-e6cfa55290af","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":110,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"34bf3b10-0291-4b80-a589-4b6a21e0d3f3","block_type":"box","text":"i.e.","page_number":110,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"b329139b-1176-4c3a-b945-c3dc97b8dd43","block_type":"box","text":",","page_number":110,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"e59bb067-0046-4fe3-b1a6-ab88825e1268","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":110,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"a1846cf3-0bb6-4fb8-bec6-bb4990f803ae","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":110,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"9fc3d57c-f02b-4b10-ad21-7a79d64a9b68","block_type":"box","text":"market risks (including the risk that market events, including but not limited to corporate actions, could lead a Fund","page_number":110,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"c652abce-b016-46f8-949a-9210414f47fe","block_type":"box","text":"to lend securities that are trading at a premium due to increased demand, or to recall loaned securities or to lend","page_number":110,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"04d74df5-cf06-443f-8d66-5a457ee85b9c","block_type":"box","text":"less or not at all, which could lead to reduced securities lending revenue). If a Fund were to lend out securities that","page_number":110,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"c708aa07-fc56-4022-85b1-31f5520f314b","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":110,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"4b6e5b09-0de4-49b4-ae0f-b32681c539b6","block_type":"box","text":"investment adviser, the benefit the Fund would receive in respect of committing to such election may or may not be","page_number":110,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"01a79bb8-e1d4-407e-ac62-90ebadea346d","block_type":"box","text":"less than the benefit the Fund would have received from making a different election in such corporate action. If a","page_number":110,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"c24f99d7-5af6-416d-9df9-23dbf357560f","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":110,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"8e8e215b-3798-4c11-8a7e-f99c12f5b712","block_type":"box","text":"collateral or in recovering the loaned securities, or to a possible loss of rights in the collateral. In the event a","page_number":110,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"adda9f5e-5955-40c9-86fa-1644e00737b6","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":110,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"dfafe7e7-e942-4220-a362-cc7ba37291ff","block_type":"box","text":"may be impacted, or the Fund may experience losses if the proceeds received from liquidating the collateral do not at","page_number":110,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"d223bc0f-7ee5-4140-b3da-94114243a511","block_type":"box","text":"least equal the value of the loaned security at the time the collateral is liquidated, plus the transaction costs incurred","page_number":110,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"c18a5315-3599-4c6c-9939-edc638656d9b","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":110,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"4807a4bf-e15c-4bc1-b08d-5f6dbc840d34","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":110,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"4ee48e1d-883a-4870-b02e-c3fc49b807be","block_type":"box","text":"payments received by a Fund representing dividends paid on securities loaned out by the Fund will not be considered","page_number":110,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"243a6de9-3b5a-4edd-a836-1e2300b00323","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":110,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"ac5f1fad-7097-4df4-847f-5aaa6176e804","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":110,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"426135c8-26f9-4a32-8b82-b5df7441dd2a","block_type":"box","text":"REIT securities loaned out by the Fund will not be considered qualified REIT dividends, and distributions by the Fund","page_number":110,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"01635106-7e5b-454b-97f1-e8f7af79fcf3","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":110,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"56807085-ce7b-46e3-b690-6c8ded6c44e5","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":110,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"372bd58f-3349-4cf2-bc3a-006fe3fb2130","block_type":"box","text":"will take into account the tax effects on shareholders caused by these differences in connection with a Fund’s","page_number":110,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"34f9b96e-bd7e-4249-8b8e-2bbf6e9cdb3f","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":110,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"d16712c7-def4-47bd-b75a-e3d381fd7400","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":110,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"8837d01e-ac79-4030-965b-ab9f1e29b8c2","block_type":"box","text":"regulations, that may impact the regulatory or tax treatment of loaned securities and could, for example, result in a","page_number":110,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"bad662d7-2e80-4d7c-8ebb-ee8cc6e9824c","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":110,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"ad2e9ce2-a7f5-40ae-8245-38fc11623146","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":823,"width":800,"height":12}},{"id":"21bceef0-59b8-41c1-a921-739916748fc4","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":110,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"001988d4-4cec-48b0-a0a1-37af999577c5","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":110,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"f14b30d5-40df-4966-ad81-573602b8e428","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":110,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"40c99c07-27da-4b23-a613-26865affc431","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":110,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"acfdef5d-6df9-4a56-bb3f-26a151b904c4","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":110,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"9914bf83-3b8d-4714-ac34-169fd59a6cd6","block_type":"box","text":"II-73","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"03bc9626-824e-48d1-b711-f83bee781ea2","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"05e5cb8d-05d5-4c5d-8828-05de0b52cae5","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":111,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"8897ca99-0bf4-4186-8692-19c3ca472e0f","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":111,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"bb09305b-13bd-45ad-8d21-67886660ba41","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":111,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"ffa9665d-5d94-41f6-b94b-ae2665438b67","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":111,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"72da3df1-4caa-486e-b13e-3be347787b85","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":111,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"edfd50ae-2118-4b4d-829e-196d48edaf01","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":111,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"9e4ce5ff-e926-4583-bb36-a3d397bd28c0","block_type":"box","text":"information (not including par ty names); this may include, but is not limited to, information about securities loans","page_number":111,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"e8fbf5d2-e6d9-4de2-a2f9-edb84b803c12","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":111,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"bb606f1b-dda7-4d31-a5a7-3d00866f8c83","block_type":"box","text":"although in response to the outcome of a legal challenge against the rule, the SEC may amend the rule and/or delay","page_number":111,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"f23aee0f-9bbb-4b1c-951b-278582e171fe","block_type":"box","text":"the current expected compliance date.","page_number":111,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"0414d1e3-2be2-4d2c-bb9b-44bec9bb1d71","block_type":"box","text":"Short Sales.","page_number":111,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"bdf4bc1b-b6c1-473a-a4b8-ea58fa7b7332","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":111,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"ae334467-6c86-41bf-b226-fcf68b1c19d3","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":111,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"d30a2fea-7e18-422f-a603-be5e0e3cfa3d","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":111,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"d172b453-8294-4ac2-9822-27ca31dd7356","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":111,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"2f6ed7ed-e22e-4913-b98e-4cc768d45782","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":111,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"60f16601-b91b-4c74-ac0d-559d96741763","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":111,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"1a6a2e3f-667a-4b3e-a71f-f1c824d53973","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":111,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"936e053b-829c-4692-9837-85397a039a68","block_type":"box","text":"securities to the lender of the securities.","page_number":111,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"8031b549-4296-439d-b828-cb678eec1264","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":111,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"286c3256-3486-497a-84bf-5fbdceb55f71","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":111,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"360eb5e2-158f-439f-b42e-4bed106f8a97","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":111,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"ff917eed-915a-4e75-980f-82cda8c1f050","block_type":"box","text":"extent that the value of both collateral deposits in the aggregate is at all times equal to at least 100% of the current","page_number":111,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"45718b24-4404-40ff-b159-9dd7f1fccfdf","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":111,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"b01adc40-be90-47d9-899f-4fc5f76bf4ba","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":111,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"53e1cfa9-7b46-4c17-8445-8220d8c9b218","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":111,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"ff9a22d0-f895-4d9e-ab79-b8f59d5c2eb3","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":111,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"5d9c3cb9-6be4-4f37-959e-219000b95a61","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":111,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"0275b660-4b69-4f2e-b385-f4ccf7dbcdec","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":111,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"3aebb70f-0cde-4887-b634-dde811980c61","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":111,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"01f92801-6eb9-48f7-9ac6-3f434c038dfe","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":111,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"7916f4b5-40a8-41b1-9a0b-ce0c235c9bae","block_type":"box","text":"sale if the security declines in price between those dates. There can be no assurance that a Fund will be able to","page_number":111,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"5185b394-5a8b-41b1-881a-772d652f5fa3","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":111,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"aed0f408-3db5-4910-ac98-8526c758f5dc","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":111,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"4e1a3e92-1e3d-462f-846f-eb635505a66b","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":111,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"81fb7cf5-306b-473d-9ea0-fd5d7568ccd9","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":111,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"d6c91522-d694-4031-ae00-874f74f72c75","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":111,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"6ddf0c2b-e513-4e7b-8297-1d1f3110f3bf","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":111,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"496a24bb-927b-449e-bc05-0828bcaf76ff","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":111,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"2ba83c50-4a8a-4cf5-aef3-1e5f8f16f722","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":111,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"86ac6147-65d6-4fc7-869d-08cda34d98cb","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":111,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"35173af7-2f7f-48bc-8927-54a72218df04","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":111,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"5ffdbffd-46fc-41c0-9a94-ccf25cb05a13","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":111,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"ba6d6b4f-2346-4f26-9b65-f51542808519","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":111,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"ef99d8fa-16d2-4c9b-8773-64e443a801e9","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":111,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"0914a081-0f3b-4764-b27a-e9cda8da8a31","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":111,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"37cf9db2-cb72-4235-9f72-982bf407d117","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":111,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"6cabb77f-56bd-4965-9cc1-e3b844c0dfe9","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":111,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"c1c3b59b-92d5-44c2-8954-43c6388ba5ba","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":111,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"92e848d7-b97a-415d-92e8-386b1100fbe6","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":111,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"9b714568-dd7d-4a5c-9a02-577e85523c57","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":111,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"5e0f8906-0645-4582-ab05-3d1d73bc1e35","block_type":"box","text":"potential acquisition oppor tunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":111,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"d4dc79e2-f2f0-48e6-9e39-6f7aa9a2b577","block_type":"box","text":"publicly traded company that raises investment capital via an IPO for the purpose of identifying and acquiring one or","page_number":111,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"80a97128-e9ef-4163-a731-b2fd30408550","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":111,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"19f0716e-9f91-4f0a-90c5-66dfffdd83bb","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":111,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"ac35cfa6-40ef-4b0c-bda2-f8e4cd274961","block_type":"box","text":"percentage (typically 20%) of the SPAC’s outstanding common stock upon completion of the IPO. At the time a SPAC","page_number":111,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"79c3a12b-d42d-4a33-9622-029bc08caef5","block_type":"box","text":"II-74","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"deb42f82-8ca9-4ef8-a3ba-72e3e94263ab","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"29b7ac7b-22bf-4eb8-9917-bfd69b1b220e","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":112,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"c6aa084f-eba0-4c99-99fb-c70684ff5039","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":112,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"400f4a2d-2dbc-4776-b18b-ab4b6d70cf1d","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":112,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"6ed354c4-395a-4135-8da7-a1eedfaed48a","block_type":"box","text":"within a pre-established period of time, the invested funds are returned to the SPAC’s public shareholders, the","page_number":112,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"05d20e1b-09be-489d-800b-905d8fb1e79f","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":112,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"a45f7655-f6ce-4fae-9aec-87b820e286b1","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":112,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"7633e024-f38b-47dd-ac21-5dbc7a785232","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":112,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"bd582d74-6429-41bc-ace6-de2ee0d68471","block_type":"box","text":"par ticularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":112,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"e2646e55-99dc-433d-84ab-d7b456a6560c","block_type":"box","text":"There is no guarantee that the SPACs in which a Fund invests will complete an acquisition or that any acquisitions","page_number":112,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"dcf77856-1986-4bd2-bbea-45a1cfe08502","block_type":"box","text":"completed by the SPACs in which the Fund invests will be profitable. Some SPACs may pursue acquisitions only within","page_number":112,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"f5892442-0d82-4598-9bf7-cc9a676ac0c3","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":112,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"97a1e08c-08a3-4ed4-bebd-e2a89b738854","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":112,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"cb18bb12-a341-4936-81cb-bc34faeeadd3","block_type":"box","text":"Standby Commitment Agreements.","page_number":112,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"b5909606-3e96-432f-aa56-a91b29bd9127","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":112,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"4bee1390-0f81-4e17-99b2-d4e78f532c1b","block_type":"box","text":"time, to purchase a stated amount of securities that may be issued and sold to that Fund at the option of the issuer.","page_number":112,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"a5753da4-e453-4e81-b3dc-24c060832f54","block_type":"box","text":"The price of the security is fixed at the time of the commitment. At the time of entering into the agreement, a Fund is","page_number":112,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"e4defe66-ddd9-41dd-99e2-e6296566f86d","block_type":"box","text":"paid a commitment fee, regardless of whether or not the security is ultimately issued. A Fund will enter into such","page_number":112,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"2f0e5e8c-8e50-4949-8d09-9df39a2ee538","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":112,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"518f4f46-d210-48a9-a818-a7aabfb59d1e","block_type":"box","text":"advantageous to the Fund.","page_number":112,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"416f4bba-f8b9-4cff-9fcf-d47602eab943","block_type":"box","text":"There can be no assurance that the securities subject to a standby commitment will be issued, and the value of","page_number":112,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"9c6af1de-5658-4959-a89b-0d728107236c","block_type":"box","text":"the security, if issued, on the delivery date may be more or less than its purchase price. Since the issuance of the","page_number":112,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"2f57ae77-fbe2-41af-bdf5-65aac8727472","block_type":"box","text":"security underlying the commitment is at the option of the issuer, the Fund may bear the risk of a decline in the value","page_number":112,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"849e495b-a243-48dc-a39a-3d58d34e952b","block_type":"box","text":"of such security and may not benefit from an appreciation in the value of the security during the commitment period.","page_number":112,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"d2a54437-defe-426b-b319-2bc755b25ad6","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":112,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"dc769fff-79dd-45cf-80f9-6ccef0947056","block_type":"box","text":"be recorded on the date on which the security can reasonably be expected to be issued, and the value of the security","page_number":112,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"e95122b5-c1b4-45d6-a000-dab60271eda5","block_type":"box","text":"thereafter will be reflected in the calculation of a Fund’s NAV. The cost basis of the security will be adjusted by the","page_number":112,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"571584c0-7863-461b-ba3d-852a8488655e","block_type":"box","text":"amount of the commitment fee. In the event the security is not issued, the commitment fee will be recorded as","page_number":112,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"6bbdcc59-36d3-47ca-9db1-b2270e1dc941","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":112,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"6b26a6d9-1a70-4d75-9768-96fa7f233392","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":112,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"02768c04-db35-49ed-b870-35a52cbba896","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":112,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"228923ff-91c8-477d-b946-b04667b0a253","block_type":"box","text":"por tfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":112,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"4d545f15-19ec-4e2f-bc3d-10fe0d5eb380","block_type":"box","text":"at zero in determining NAV. Accordingly, where a Fund pays directly or indirectly for a standby commitment, its cost","page_number":112,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"12e88886-a99c-4f30-a3bd-b6e69cd03e1c","block_type":"box","text":"will be reflected as an unrealized loss for the period during which the commitment is held by such Fund and will be","page_number":112,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"6b901618-27c7-4950-966a-efeed800704b","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":112,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"a9c3d188-2fc8-4c8c-a1f7-0fd4fd9025a6","block_type":"box","text":"Stripped Securities.","page_number":112,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"a9b2d985-709a-4ca4-9ead-a6f52e9fb774","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":112,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"eb292099-b1d8-4471-bd33-11c6149cd32a","block_type":"box","text":"components of an instrument and sells them as separate securities. In general, one security is entitled to receive the","page_number":112,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"7cb119d3-3dd5-4fd5-8802-2f007f7360a5","block_type":"box","text":"interest payments on the underlying assets (the interest only or “IO” security) and the other to receive the principal","page_number":112,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"833fbb28-3e8f-4c26-90ad-252129aa1246","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":112,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"c0cd5e21-aed9-4276-a325-418404835f58","block_type":"box","text":"principal payments. The yields to maturity on IOs and POs are sensitive to the expected or anticipated rate of","page_number":112,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"d8e0e284-65cf-4f73-bf1e-7f419592dd52","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":112,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"cc7a44b0-84c1-44f7-b53c-e8565abe6361","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":112,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"8acd0377-07e5-4640-8264-ccccc6e3e255","block_type":"box","text":"principal, a Fund may not fully recoup its initial investment in IOs. Conversely, if the underlying assets experience less","page_number":112,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"0fb22f45-b4ef-4ca8-b5a4-c38ba71bd67f","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":112,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"70c44c76-643f-4ca1-93f1-eb0b967a95aa","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":112,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"67ed6a31-39e8-4ba5-963d-3ee6394f47c8","block_type":"box","text":"Structured Notes.","page_number":112,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"b6adcfb0-3f7c-4c06-9db3-82c603de96d0","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":112,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"91a9d427-5704-40bb-9469-5614c1f1ef38","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":112,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"4eea957a-543a-4606-8bbe-6d8aa60361fa","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":112,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"95c01fc1-6ed0-4e8a-8d07-9be96a3459be","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":112,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"ba000785-c59b-4333-9fcb-57f80981f6a8","block_type":"box","text":"increase or decrease, depending upon changes in the value of the reference measure. The terms of a structured note","page_number":112,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"751fa9b5-3646-471d-9f98-1c815b56c4bf","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":112,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"8160d909-5173-4eda-8be2-70e1b55adaac","block_type":"box","text":"invested capital by a Fund. The interest and/or principal payments that may be made on a structured product may","page_number":112,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"774629a4-701f-4070-8c5d-11a73479933f","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":112,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"7130d0f7-bd56-4c25-8fbd-14a85cf2b4e4","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":112,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"f2f14af2-b55f-4b64-a6be-92edf3a3ca7a","block_type":"box","text":"produce an increase or a decrease in the interest rate or the value of the principal at maturity. The rate of return on","page_number":112,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"d018f8b9-91be-4bdd-9954-4da2e714b6ea","block_type":"box","text":"II-75","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f856946d-b84e-441e-9e28-c6bc7ef5ab60","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ad7e3489-b8cb-4f3a-87f6-5a66c0384a82","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":113,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"625db40e-7157-4058-8735-061720835bfe","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":113,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"e1be98e1-0314-4180-9a75-b9b5938aeb8e","block_type":"box","text":"the risk of loss.","page_number":113,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"9a87cb1f-9709-48f6-8d1f-05979e7d9e7e","block_type":"box","text":"The purchase of structured notes exposes a Fund to the credit risk of the issuer of the structured product.","page_number":113,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"7fdd994a-0edf-4312-a88c-8592e8b7715f","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":113,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"842f8710-e09e-4d94-968b-9cf01fb041c8","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":113,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"ec35f864-1ca4-49a6-9671-618fbe515217","block_type":"box","text":"illiquid making them difficult to sell when the Fund determines to sell them. The possible lack of a liquid secondary","page_number":113,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"65c8ba4e-5a5e-427f-af06-0d9cca83bfb5","block_type":"box","text":"market for structured notes and the resulting inability of the Fund to sell a structured note could expose the Fund to","page_number":113,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"b882e60e-ac9b-4eaf-8686-fbc23644ea79","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":113,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"9bce8126-19eb-4cd6-bc72-d531ba078464","block_type":"box","text":"Taxability Risk.","page_number":113,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"eee8895f-ee69-4481-91b7-5290654e4e85","block_type":"box","text":"Cer tain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":113,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"c7cf2dc2-0f45-4cbc-bbc6-64a9bbfdc6b0","block_type":"box","text":"investing in tax-exempt or municipal securities in reliance at the time of purchase on an opinion of bond counsel to","page_number":113,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"182cf1d9-ac24-4f8f-b38b-ab1c09447a4e","block_type":"box","text":"the issuer and, in the case of derivative securities, sponsors’ counsel, that the interest paid on those securities will","page_number":113,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"47fe9140-d16a-411c-9a81-9fb0032395f4","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":113,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"1fcef8ed-412f-4786-ae1c-c88022f67220","block_type":"box","text":"to pay, or have paid, taxable income subsequent to the Fund’s acquisition of the securities. In that event, the IRS","page_number":113,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"eeece5b2-3247-4011-9220-997a8d188048","block_type":"box","text":"may demand that the Fund pay U.S. federal income taxes on the affected interest income, and, if the Fund agrees to","page_number":113,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"7541c606-5a4a-429b-9824-8eddb65c3e53","block_type":"box","text":"do so, the Fund’s yield could be adversely affected. In addition, the treatment of dividends previously paid or to be","page_number":113,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"c323bc5f-d98d-4d56-9bef-56933247296d","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":113,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"76e88ae8-4ef1-4c8a-86d4-7036873ebab3","block_type":"box","text":"increased U.S. federal income tax liabilities. If the interest paid on any tax-exempt or municipal security held by the","page_number":113,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"2efb478c-9243-42a8-b53d-1c4474545904","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":113,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"9ffbf8ea-127e-4932-a79d-74345a6656a3","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":113,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"d82d2f6d-6d60-41d4-9bca-9762eb74a1cf","block_type":"box","text":"securities to be subject, directly or indirectly, to U.S. federal income taxation or interest on state municipal securities","page_number":113,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"d4b0fff8-1c00-47d1-b95a-aa2be8d58755","block_type":"box","text":"to be subject to state or local income taxation, or the value of state municipal securities to be subject to state or","page_number":113,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"9a89b00b-7171-45a0-8ae4-71eb4d7ef575","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":113,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"1800b2ac-1a06-4f19-9a13-c41a587acde6","block_type":"box","text":"tax-exempt status of such securities. Any such change could also affect the market price of such securities, and thus","page_number":113,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"3cfcb6b8-70aa-4b77-a80b-24826ac3a64d","block_type":"box","text":"the value of an investment in the Fund.","page_number":113,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"38a792b6-9763-463d-a17d-b836c1224b04","block_type":"box","text":"Temporary Defensive Measures.","page_number":113,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"4ecccffa-bb58-42d3-b841-47a77a5a3a07","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":113,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"497213b7-b9dd-4cc6-8c64-044f4a81718c","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":113,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"0168bcaf-ff07-416b-9fd7-ad0accef91d6","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":113,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"4189dc3f-ca41-4037-845a-8745681f8a58","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":113,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"ea079cdc-16b9-4336-b167-ced7bcb63f8b","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":113,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"6ba4fecb-2dee-4a29-8d61-01a96e75f418","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":113,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"ecc98cb7-6784-4abf-a52b-2de192e8487d","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":113,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"0757f535-1534-4497-a74a-685e42aed651","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":113,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"271ff3ef-1dc8-4b2b-949d-42d7120027ce","block_type":"box","text":"within two years from the date of settlement. Temporary defensive measures may affect a Fund’s ability to achieve","page_number":113,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"185318fe-0bb1-41e7-8991-dd4146ab7b18","block_type":"box","text":"its investment objective.","page_number":113,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"e9ba6ae0-0197-4f39-80fc-b7deee4bbfa8","block_type":"box","text":"U.S. Government Obligations.","page_number":113,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"6fddf8ca-6513-4028-b849-5bf4810b3eab","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":113,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"1e4efd74-f090-47c2-99c2-fc5927e4b59c","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":113,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"0ae28122-7660-41af-8960-bf74591c76dd","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":113,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"a7861e7c-baf0-4651-82a6-9e67ef787ff5","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":113,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"6be52857-a26b-4691-913d-2630a84995e5","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":113,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"ae68331f-7d1a-4f8a-8c33-1290ccd4b29d","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":113,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"d7e13a07-1294-484a-935d-3267df1b8ea1","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":113,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"cd28d71b-e1c3-421f-a82f-7d35533d3191","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":113,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"042410a2-c815-41db-8223-0382f73dc4e6","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":113,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"e73030b4-7368-4d3a-b2ee-c260f2ea19da","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":113,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"044d17b8-cdd8-4040-9249-9882abc3bc49","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":113,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"b2f282c5-1682-4038-9ec1-2272369da969","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":113,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"698c570e-5a97-46e3-ad93-f04b0a8b92ed","block_type":"box","text":"Examples of the types of U.S. Government obligations that may be held by the Funds include U.S. Treasury Bills,","page_number":113,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"cd58be16-fdad-4883-8edb-360ac8899f4a","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":113,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"28ab643c-17c5-4dcc-bd3b-7fb6d6c302c7","block_type":"box","text":"Administration, Expor t-Impor t Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":113,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"c7d678cd-373d-41d8-a077-a9de1e542d8d","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":113,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"c32ae078-1f14-4e69-9328-d7291dc63e03","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":113,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"e99567cd-5a0b-475d-ba65-10ea5f215a7f","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":113,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"77a9fa07-1364-4d7f-a7cd-61aaa5e90b12","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":113,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"f1078b75-48a9-4e57-8882-30469800a585","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":113,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"7d8d6481-6675-4a8b-92a0-e9868ef74a21","block_type":"box","text":"II-76","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2a7ef02a-c455-4d0f-8ae0-00163f3fef12","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"88b6977c-c2be-42af-9ea3-2abd26c122eb","block_type":"box","text":"U.S. Treasury Obligations.","page_number":114,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"b9368190-c8e3-4327-b1ce-8c7cd6f3759d","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":114,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"3f349e50-f868-441a-88e8-4a7144abaf35","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":114,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"8e337155-8c68-492a-b176-02f5797038ba","block_type":"box","text":"of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance can be given","page_number":114,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"e0679cc8-e9c2-47e9-ac11-e0fe4e8822c0","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":114,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"b48a247a-9a86-4810-99c9-3c4ebd545e7b","block_type":"box","text":"do so.","page_number":114,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"16a88c80-984d-4b22-b9f4-f9ea09ee089e","block_type":"box","text":"U.S. Treasury Rolls","page_number":114,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"4a286e12-b104-468f-9985-6a11c31b9f5a","block_type":"box","text":".","page_number":114,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"bc6fdd52-e663-4721-b9df-1a6c018b144e","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":114,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"28070d40-b6d0-45bc-b622-dabe737893b2","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":114,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"6b923b56-d904-4188-8fb5-2ef070e9dabd","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":114,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"1b9ac694-7f48-4675-ba7f-54147427125d","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":114,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"7ea7eb0f-a4b0-4985-95fe-aff37e0016a5","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":114,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"ebb35218-8544-48c2-a7ae-d8574d45160f","block_type":"box","text":"roll, a Fund continues to earn interest on the securities it is selling; however, it does not earn interest on the","page_number":114,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"7fee0701-ec5e-479a-ad97-1519dd935d48","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":114,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"7f20a9b9-0245-49cd-b078-a9dc791533eb","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":114,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"1066fc04-8948-4520-8853-3ab385cc34fc","block_type":"box","text":"The market value of the securities that a Fund is required to purchase may decline below the agreed upon","page_number":114,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"a6fc625c-8ab4-46e3-adf4-a991f5a37d12","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":114,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"4da03c66-5d51-4784-9ef9-e8fd2cac45e2","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":114,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"ff0c1ff5-3197-4ae9-9993-1e3a241ad4bb","block_type":"box","text":"Utility Industries.","page_number":114,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"9ab043a6-ff57-4569-8c01-67b0cc85c373","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":114,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"14bc4ea2-75c0-46d6-adb7-5c6d66cb04ad","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":114,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"286a45e7-d182-4846-96a8-e85e18affcf5","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":114,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"c384102c-938c-4b96-84db-c55e592ac61f","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":114,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"4a3ae21e-7233-4b5b-b623-60460564769b","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":114,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"afc87b42-010b-4c61-bd71-f916d90e5de2","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":114,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"3602d0ef-915b-4999-8e17-8acdc22211f7","block_type":"box","text":"availability and high costs of natural gas for resale, the effects of energy conservation, the effects of a national","page_number":114,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"ba6adfaa-43f0-4450-9159-1043bb3635ba","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":114,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"45c4ff8f-3fa8-4eba-bcb9-aec6a628a9bd","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":114,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"8feed862-9aa9-45e5-a440-dc401a70681b","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":114,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"ffe77e0e-6987-4883-9580-f44e83050995","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":114,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"4e806b07-976d-4802-96e9-59d2c818b3bf","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":114,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"55ba4328-59a7-48d9-859b-d8903cb57830","block_type":"box","text":"authorities will, in the future, grant rate increases or that such increases will be adequate to permit the payment of","page_number":114,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"aa476f5b-e9ec-4dbd-96e0-8a83e364a917","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":114,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"77f3b36a-ab9b-46e1-976e-e936257ec085","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":114,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"1720f525-19b1-4f4d-9bd5-a598ca41e98b","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":114,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"9cb87d44-5c27-448e-818d-9b46a4cf42a0","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":114,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"fee99b2c-f110-4895-8027-578f54eac4ef","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":114,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"352080ec-6a62-41f3-832c-626ef5337417","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":114,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"3187799f-88d7-4d80-9207-16f5a53734e4","block_type":"box","text":"utility.","page_number":114,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"5bd6c800-7427-4a90-904a-55be0b65593d","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":114,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"b8f5e73f-ee12-4e81-83d6-239dd8ebb3b3","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":114,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"43d176ed-0c61-4792-95af-36977b9cbd49","block_type":"box","text":"debt securities and, to a lesser extent, equity securities, tends to have an inverse relationship to the movement of","page_number":114,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"380bf1c0-1256-4faf-b479-4369eb1682ff","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":114,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"754ab031-79b9-4d40-85b6-4af6536d1b3e","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":114,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"994c3bb9-fe08-402f-a596-c0e4c80f3ff5","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":114,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"4aad7cdf-c00a-491d-bd7c-ca8df2c284af","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":114,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"55d68b69-e013-4ee1-b94b-09cc93b54dca","block_type":"box","text":"regulated in the United States and in foreign countries with the intention of protecting the public while ensuring that","page_number":114,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"f28202fd-1fba-4b68-b50f-6bb7ea9e7bc5","block_type":"box","text":"the rate of return earned by utility companies is sufficient to allow them to attract capital in order to grow and","page_number":114,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"68bc20b2-94d3-4519-b424-1ef7534df36f","block_type":"box","text":"continue to provide appropriate services. There can be no assurance that such pricing policies or rates of return will","page_number":114,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"8cd9b001-33cb-453e-b8bf-61c7ebaaf6fc","block_type":"box","text":"continue in the future.","page_number":114,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"6b784305-bc3b-4c21-9324-b88830604d12","block_type":"box","text":"The nature of regulation of the utility industries continues to evolve both in the United States and in foreign","page_number":114,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"2451a233-f5e1-45a7-b24f-6f6ea4aa177a","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":114,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"e046099b-bba1-4aff-b78f-f97aa08a2ee6","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":114,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"28109591-22b5-41e7-b49a-63da05341820","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":114,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"9a73e0af-f69b-4002-a004-845a6833029d","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":114,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"1ca695ad-9930-4e9c-9301-db82623f161e","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":114,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"dd22e00f-a5a5-49bc-836c-273c33bea9cb","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":114,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"22fce09e-9467-41d7-8c0c-8fbc5a0ee0b6","block_type":"box","text":"utility companies being able to earn more than their traditional regulated rates of return, while others may be forced","page_number":114,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"67c09083-6829-4c80-ae0e-60b8b9efa77f","block_type":"box","text":"II-77","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"91ff3ab0-1353-4762-b41e-6737568c414b","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cfb0e75e-a70e-429f-9007-cfff6dcb02c0","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":115,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"5e334d64-ef53-4eaf-aab2-0cd015d5ca50","block_type":"box","text":"new uses of funds (such as for expansion, operations or stock buybacks) could result in cuts in dividend payout","page_number":115,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"bf499f5c-b487-4238-a169-96a93c6b2370","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":115,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"8ca55ff3-8d71-4559-b342-93a563af6663","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":115,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"4649369f-91d7-491d-b4a2-8a797d3e6a3a","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":115,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"3aecdb77-6d88-484e-993b-c3b3828aeb92","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":115,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"984e6e76-4bb9-45c3-a6e9-e5053ce2ef38","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":115,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"c944b7bc-6c62-435f-aa90-28e493b5b65d","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":115,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"0e86a031-e837-46cc-b36e-13ab2c176d04","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":115,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"466fd80f-4fda-4d50-b2c3-37a6fd1eddc7","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":115,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"efb2fcd0-76c2-4556-b785-2025896dde78","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":115,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"f185a82d-2e21-4ab8-b17d-3aa6a85340e3","block_type":"box","text":"than those used in the United States, which may require such utilities to invest in pollution control equipment to","page_number":115,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"270b651d-9c13-4b40-b434-796f4d38c3b1","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":115,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"0c87c91e-dabf-4bb2-b769-ee8a61c910a4","block_type":"box","text":"ways different from regulation in the United States.","page_number":115,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"d6ca9537-e67f-4a4a-a844-f42edc1ae45e","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":115,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"1d1d979b-b9ec-4210-be7f-79c16de29f78","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":115,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"124b6131-d1fb-4ac7-adef-d08898a9b177","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":115,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"7cefcd23-a9f0-4c2d-afb6-5752e101e377","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":115,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"8ce9a461-3501-4718-b2e2-c30eb5ab6d4e","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":115,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"313cb161-8151-471e-8e0d-ff7ded69d31e","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":115,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"ef64c1b7-5bec-46a2-940d-401ac642fd60","block_type":"box","text":"ownership, is expected to occur in newer, faster-growing economies and in mature economies. Of course, there is no","page_number":115,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"6458d078-0f93-49bf-805a-718751a2eb32","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":115,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"30254023-7dfa-461f-b4b3-777f6f4e5e08","block_type":"box","text":"increase.","page_number":115,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"22b7f204-0114-4b73-83c7-3251bac03efa","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":115,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"f046b663-77f9-4613-bc2e-fd4df1366de8","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":115,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"ca0951be-c320-49c0-b5ea-7294d6870747","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":115,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"f8d4b8b8-ecf7-4f68-bb5e-f21a8da45323","block_type":"box","text":"Electric.","page_number":115,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"64808d16-95c7-4889-ab42-a5c86997b9e0","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":115,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"a07e7556-69ed-4399-ba65-3cb5eeb673d2","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":115,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"9bc888c4-b97d-4215-addc-4cc228ee306c","block_type":"box","text":"electric utility companies, in general, have been favorably affected by lower fuel and financing costs and the full or","page_number":115,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"1fb58621-f2db-4c70-a8cf-e109041b1fd2","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":115,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"35e02c1f-617e-49df-bdee-cdd10efa708b","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":115,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"52935316-9cfd-4a17-b217-071973cc5598","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":115,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"fc4f5bc7-264f-4b1c-b691-5c060905fe20","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":115,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"26be8e05-729a-423e-aa03-64d22c91f60a","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":115,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"950ed444-1daf-4649-9d02-cec8c4e1fb04","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":115,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"18d2db3c-8c80-48a9-b433-a9d40991aa07","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":115,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"4e559374-7dd5-4e2c-9cb0-3fdf2b940830","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":115,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"cc55ad3e-1a49-406c-9129-f23415fc6412","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":115,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"7bb09c8e-8e2f-4f89-b720-feb50ea370c4","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":115,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"6c886155-7972-4217-8a97-8307cd7310b7","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":115,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"71f8f43a-d14e-4eb5-a188-514d6f615d3f","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":115,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"c921b7c9-5025-4ba3-ac9d-956acc2b923e","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":115,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"6c6c1196-43e6-4f47-8726-4bb9b7ef15f2","block_type":"box","text":"costs in rate authorizations or the risk that a company may not be permitted to operate or complete construction of a","page_number":115,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"6d017483-5dae-4559-aeab-f4bb9338df43","block_type":"box","text":"facility. In addition, operators of nuclear power plants may be subject to significant costs for disposal of nuclear fuel","page_number":115,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"35de8055-a82c-4941-83dd-48e9424b6a85","block_type":"box","text":"and for decommissioning such plants.","page_number":115,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"e7fd5453-3753-4b73-9707-f66e2c280c13","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":115,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"1d31256b-2b3e-4955-a431-9b1899e555e2","block_type":"box","text":"impacted to a greater extent in the future by the division of their asset base. Electric utility companies that focus","page_number":115,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"a84daaf6-a186-4ed9-98f6-eeee7081d026","block_type":"box","text":"more on the generation of electricity may be assigned less favorable ratings as this business is expected to be","page_number":115,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"79265c1e-734a-4d33-87b4-1ae93ae45363","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":115,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"084e0d27-49cc-4c50-b0ef-1a16fb7f98aa","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":115,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"5108424f-5a61-476a-8de6-8c62d9670384","block_type":"box","text":"greater predictability of cash flow.","page_number":115,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"cf4d4e12-ee98-4c0f-ba6c-c22afe641202","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":115,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"82b83505-b07a-430f-976f-1c83cdb0777d","block_type":"box","text":"the industry as a result of such deregulation has at times resulted in lower revenue, lower credit ratings, increased","page_number":115,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"524a355d-64bc-4641-b324-b0e3262b59c3","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":115,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"d9bd4c7d-d01a-432d-8e4e-38887a6b3737","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":115,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"8cc35a79-8252-4517-af02-fa4bc51c25a7","block_type":"box","text":"II-78","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d1691850-1ab4-4b66-8b75-47934a4b369d","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"85f0c2e3-b5c0-4805-a65f-e2c85873c9ae","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":116,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"d5500076-0162-47d6-9730-19935b544f95","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":116,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"35e84a53-bdfc-4fab-89ed-ed827af5f71b","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":116,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"ed3a6360-9436-41ea-8eea-c6d085b83bc3","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":116,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"4ddb43dd-a128-46fb-903a-d141e9ec21b2","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":116,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"648d4488-37ba-4279-9c6e-3aa9663ad6ba","block_type":"box","text":"Telecommunications.","page_number":116,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"a0d70613-18f7-40b1-a14d-3d94a70d6784","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":116,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"e85ab4b9-c687-4fe5-903f-ff16a005bdff","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":116,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"4037185f-d6d4-4baf-9aa4-ffc48c8f0530","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":116,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"5d645740-137a-4e1b-9fb8-b01b9f597dbd","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":116,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"acc561a4-4e3c-4f0a-ac24-6862ca0d37fc","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":116,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"c4c6d57f-ab72-4569-aeae-3422750b1268","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":116,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"09d7e5fd-5275-40eb-abde-3d78c083ab48","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":116,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"1cba182f-acba-4d81-80b1-c73480d4734d","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":116,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"5d55bcf2-60e1-445b-8667-100deceac839","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":116,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"908c36c4-0211-4b22-b429-1ab8025594bb","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":116,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"acd504fd-93cb-454f-aba8-63384f24841a","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":116,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"7aabe716-386d-4449-b22e-e6b3afd64a81","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":116,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"2033f6a0-3c10-4abc-82e5-2088de301773","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":116,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"beaad710-0fbf-4e87-bc2b-a6adc6d00f08","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":116,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"356442ee-0e72-437b-9e9c-d0d487c84fbb","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":116,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"a5317e62-dca7-4b54-8f9c-aaec57ed0feb","block_type":"box","text":"residential, corporate and governmental customers.","page_number":116,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"62f6ed81-27e9-4900-9b65-6f5b5460dc1c","block_type":"box","text":"Gas.","page_number":116,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"22212dc0-106a-4431-be2b-938b659f8418","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":116,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"b648e4ab-5053-4f16-9752-d45e46348439","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":116,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"2d5fbb2b-ecda-41ea-a664-51150a43c699","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":116,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"6e5675a8-b4e2-471f-bf47-6a21e25ee84a","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":116,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"1c713ceb-91d1-4530-bb82-c20e01bcf809","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":116,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"417766b2-cce3-4534-8d8c-13ff608f413c","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":116,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"11749cd8-cff7-4f10-bc90-61e2f3bd296b","block_type":"box","text":"outlook in the future. For example, natural gas is the cleanest of the hydrocarbon fuels, and this may result in","page_number":116,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"f7cd2df0-a72e-46f2-a63e-4340edbac7aa","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":116,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"f7c6199d-49cd-4b5e-be4b-f80af7f6dfd9","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":116,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"14b97334-712d-4ad3-9f32-34d17cc0aa12","block_type":"box","text":"Water.","page_number":116,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"e8861915-93ba-4459-aba7-fb4ef518a6f1","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":116,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"84bd87dd-d7ed-46d9-97f6-0cb060f6ca95","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":116,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"5e890801-b890-4da4-9707-6e1fec89dc05","block_type":"box","text":"Companies in this industry are generally mature and are experiencing little or no per capita volume growth. In the","page_number":116,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"7603bc45-816e-4566-a730-08d98fa7d6c5","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":116,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"f7f6629b-7177-4418-b4ca-e04953dffc95","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":116,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"ba2b461b-01fb-4816-8b55-c72d2e4aba20","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":116,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"0b1970f8-2002-47a5-a29a-115104f5665f","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":116,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"ee8177e3-fd73-4c29-a605-68f5004dbd26","block_type":"box","text":"Utility Industries Generally.","page_number":116,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"abf182d1-2082-444e-a5f7-c6c5ab1a0a08","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":116,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"ee9dc253-d4bd-4109-9795-1ad1d13a8648","block_type":"box","text":"those relating to privatization and changing regulation, will occur or that risk factors other than those noted above will","page_number":116,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"41287aae-bfd3-4484-bb83-586fe379560f","block_type":"box","text":"not develop in the future.","page_number":116,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"b2d1f00b-87fe-4de9-ac2f-03b71be5f3e8","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":116,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"784b7d3c-c4f3-48be-94ba-1c335c236ba7","block_type":"box","text":"A Fund may purchase or sell","page_number":116,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"5b7e4f85-13f3-48e6-a634-5425d3110273","block_type":"box","text":"securities that it is entitled to receive on a when-issued basis. A Fund may also purchase or sell securities on a","page_number":116,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"6055ec61-ad09-4133-9a34-7bcf63e2115d","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":116,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"8ad18688-8e39-4732-96b0-1bcedfbc17f1","block_type":"box","text":"transactions involve the purchase or sale of securities by a Fund at an established price with payment and delivery","page_number":116,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"450def23-46f6-4636-8b08-c401c867d214","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":116,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"a363e4bf-f321-4bed-8440-29400aab9f9b","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":116,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"3fb1ef0f-14ef-4da7-9c4f-66d287997912","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":116,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"1a07e019-cf36-499c-bf32-ff4c9728efb3","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":116,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"25149463-2074-4f28-aa52-e278cef1b860","block_type":"box","text":"cer tain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":116,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"d53b6ae6-806f-4653-a864-574a8aae55b7","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":116,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"ac45d928-ca08-4ae2-a3ea-c5586289c52d","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":116,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"8a1c670c-dd03-4a49-8da6-385dab7e2389","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":116,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"1b9e8f37-3786-48aa-a401-a31e7a107c66","block_type":"box","text":"There can be no assurance that a security purchased on a when-issued basis will be issued or that a security","page_number":116,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"12668978-3fbe-431c-a562-61468bb7804e","block_type":"box","text":"purchased or sold on a delayed delivery basis or through a forward commitment will be delivered. Also, the value of","page_number":116,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"24902945-e6c5-471c-9be6-4cbb282c3b19","block_type":"box","text":"II-79","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"468c105f-5b4b-4199-a0d1-41a838acda9d","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"434394d8-cebe-4644-a8a9-2afc1e523c20","block_type":"box","text":"securities in these transactions on the delivery date may be more or less than the price paid by the Fund to purchase","page_number":117,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"88a9fdfd-b50f-4a3c-9e73-b3334828fa4d","block_type":"box","text":"the securities. The Fund will lose money if the value of the security in such a transaction declines below the purchase","page_number":117,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"ea51b184-c4bc-4850-8df7-a5be522c4c07","block_type":"box","text":"price and will not benefit if the value of the security appreciates above the sale price during the commitment period.","page_number":117,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"5638ad46-bfa2-42de-9fcb-49374c94558a","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":117,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"1c805244-5950-4f41-bc43-7ef30fbaeb49","block_type":"box","text":"after it has been entered into, and may sell securities it has committed to purchase before those securities are","page_number":117,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"f7431d26-5c3b-4360-9c62-1743655c9457","block_type":"box","text":"delivered to the Fund on the settlement date. In these cases the Fund may realize a taxable capital gain or loss.","page_number":117,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"9d2db739-f9d0-4013-ad4d-856d5f03afb2","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":117,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"7ee58910-76dc-43c6-833d-798353e102d1","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":117,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"60722fa4-6077-4a42-954b-1b0a6fa4330b","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":117,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"9e2ad0d9-4bae-4931-b417-cb546320d2ef","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":117,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"65dfc520-56a2-4e5c-adc9-af65b640a290","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":117,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"fbf089f5-6d81-400a-89a9-1f04208c69e2","block_type":"box","text":"day the Fund agrees to purchase the securities. The Fund does not earn interest on the securities it has committed","page_number":117,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"e3f72603-19cc-4b73-b070-1eb24c36cd4e","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":117,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"df3b89e0-36e3-49cf-8ba7-1a59764b7c5d","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":117,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"7def136f-1ba2-4534-83d9-5f40f0eaed12","block_type":"box","text":"securities (","page_number":117,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"59a06d6d-9891-494d-8801-fb8ecdc04561","block_type":"box","text":"e.g.","page_number":117,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"6af147ee-f001-4092-984f-c6a6ef9cb5e8","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":117,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"2c01c621-4e08-40a7-b3f9-3e5cb83fd5dc","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":117,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"eede8563-f1b4-491e-bb63-46c2a4026526","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":117,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"e367fd6f-fe13-46ab-9d2c-542e8146a0fe","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":117,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"7417576e-43fc-4de3-b81e-1702bb7f85d2","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":117,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"da5fffaf-78cb-45ae-b28d-ac5d4905bd0c","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":117,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"4f44043d-228b-4f57-ab52-ea387a809ab9","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":117,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"e646ad76-2b79-4d07-9d10-c5b4b545f49f","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":117,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"604830c5-ef75-4106-afb5-d3bf2e894ac8","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":117,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"d8f7f833-4d28-49eb-a816-aab956ce3b77","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":117,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"d3e11d8a-47b9-4c08-9a77-e7c4d24db1cd","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":117,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"ba642cdb-7af2-4ff4-b5b4-960453187277","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":117,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"447d2ad5-5775-42f8-89e3-ff9c197fb86c","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":117,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"c002b5dc-6cfb-42b8-b774-23388a011471","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":117,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"d085076b-66bc-4ec0-a644-1b398ac44941","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":117,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"62e74e0e-5ab7-461d-b477-639f78559fe2","block_type":"box","text":"Yields and Ratings.","page_number":117,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"c9fa7ff9-68c4-43c2-9f66-33fb5a1b0d3f","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":117,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"c1f38afd-909c-422a-8ede-17d0b6f71ec6","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":117,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"f444e080-ff1e-4e98-83af-48687e65a0ab","block_type":"box","text":"of the offering, the maturity of the obligation and the ratings of the issue. The ratings of Moody’s, Fitch and S&P","page_number":117,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"ac9f5378-26ef-42b9-8d13-5441a5eefae5","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":117,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"a10199e4-4175-4747-a86e-fa5cd073084c","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":117,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"5860257d-5cea-4fb0-b066-811e5e0b0182","block_type":"box","text":"interest rate may have different market prices. Subsequent to its purchase by a Fund, a rated security may cease to","page_number":117,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"3a0b198a-159f-486c-a7f3-f77d47bdd2ec","block_type":"box","text":"be rated. A Fund’s Manager or sub-adviser will consider such an event in determining whether the Fund should","page_number":117,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"3c8f2865-45fb-4af9-8559-be72a631980a","block_type":"box","text":"continue to hold the security.","page_number":117,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"b25be29b-22c1-4d2c-ba68-88611d694f3e","block_type":"box","text":"Zero Coupon Securities.","page_number":117,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"9b850892-dae2-433c-80fe-4c079e79ab4e","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":117,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"31da14ae-3b5d-48f2-be94-a2e6962a052c","block_type":"box","text":"not pay interest during the life of the security. The discount approximates the total amount of interest the security will","page_number":117,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"59f6321f-cbc6-45c3-b22a-3894af08d401","block_type":"box","text":"accrue and compound over the period until maturity at a rate of interest reflecting the market rate of the security at","page_number":117,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"84855d2b-d4a8-49de-b54e-117ccc0c0c92","block_type":"box","text":"the time of issuance. Upon maturity, the holder of a zero coupon security is entitled to receive the par value of the","page_number":117,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"560ebe82-3211-4ed7-ad83-05b2e84f384b","block_type":"box","text":"security.","page_number":117,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"119a57e7-0a4a-4ce6-a0a3-a693eef50ee5","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":117,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"b556e311-aa18-4afa-a754-ceef0577557e","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":117,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"2d64b894-5705-455d-98fb-e8658c20a326","block_type":"box","text":"owning instruments that do not make current interest payments is that a fixed yield is earned not only on the original","page_number":117,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"23e8aeb2-d750-4215-91d4-64bd0b43e6cb","block_type":"box","text":"investment but also, in effect, on all discount accretion during the life of the obligations. This implicit reinvestment of","page_number":117,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"9465aaa0-9469-424b-a079-797af9319f74","block_type":"box","text":"earnings at a fixed rate eliminates the risk of being unable to invest distributions at a rate as high as the implicit","page_number":117,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"8386d6e2-58c3-4a0c-94be-447aaf2e24c9","block_type":"box","text":"yield on the zero coupon bond, but at the same time eliminates the holder’s ability to reinvest at higher rates in the","page_number":117,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"f8c48dde-c4c3-44e2-9abb-7325ff3370de","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":117,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"08906662-81a0-483b-9447-62b91cacb2ff","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":117,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"acd22dc9-6592-4ff2-8be5-e91f2225f7bb","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":117,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"45e68f71-973b-401c-b52a-204d1aaedeab","block_type":"box","text":"benefit the issuer by mitigating its need for cash to meet debt service, but also require a higher rate of return to","page_number":117,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"0558819c-5dcc-4fa1-89fe-dbb149ae7201","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":117,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"ea1bbed6-2282-4192-b6be-80a76e1a3057","block_type":"box","text":"II-80","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"30ef939a-2601-461f-9b3e-95cdbe1d8719","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"17a05075-1a37-4e07-84bd-1113dbff5547","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":118,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"fddaa086-2ead-483b-a3ad-76135b975e32","block_type":"box","text":"prior to the receipt of cash payments. Zero coupon securities may be subject to greater fluctuation in value and less","page_number":118,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"670dd39a-89f5-43e1-b396-0c4e57dca6ef","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":118,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"81d893cc-5f4c-4d5d-98a9-e87b409936df","block_type":"box","text":"intervals.","page_number":118,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"824e470c-35b1-4458-9ddc-dafa021e7935","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":118,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"fc88bb43-7c86-42d6-a9ef-2a9f77d43050","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":118,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"24b5f356-99cb-42d9-aa2a-48f434cce7d2","block_type":"box","text":"por tfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":118,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"e7e3ff6d-a812-49a7-8a12-71675a97ac6d","block_type":"box","text":"generate the cash to satisfy these distributions. The required distributions may result in an increase in a Fund’s","page_number":118,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"e444d28b-193b-44a7-911c-2fbf3528b55a","block_type":"box","text":"exposure to zero coupon securities.","page_number":118,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"3f269310-57fc-4f19-a34a-daccdb23270d","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":118,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"f8aae67d-44fa-4530-9bb1-1e7044f8eb73","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":118,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"44ce8700-d040-42c9-ac35-40a5123346df","block_type":"box","text":"In addition, as these securities do not pay cash interest, a Fund’s investment exposure to these securities and their","page_number":118,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"2f010aad-93c3-449c-a147-053556f59605","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":118,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"a1cdf35c-2451-4d1a-9447-88fb4086f602","block_type":"box","text":"Suitability. (All Funds)","page_number":118,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"5ba27aac-8c17-465a-893f-396f844abde2","block_type":"box","text":"The economic benefit of an investment in any Fund depends upon many factors beyond the control of the Fund,","page_number":118,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"462d10fd-206c-425e-ab91-0efd08c5df13","block_type":"box","text":"the Manager and its affiliates. Each Fund should be considered a vehicle for diversification and not as a balanced","page_number":118,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"761680de-fce8-4dcc-ba1c-553eb139b7e4","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":118,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"2e819f98-5f62-40ea-8ccc-550432507541","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":118,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"39d247fc-9965-464d-b2ba-dcb867f12592","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":118,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"9be455c7-4a8e-4dd0-9787-2e9f6ca8c79d","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":118,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"13979121-f80e-49c3-a617-aeb74a9b0fff","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":118,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"d8436d13-d58a-4115-a88e-f14deab431cf","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":118,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"b111ed7e-4e2f-41a5-a68b-21535bccdb3d","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":118,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"e9d2133d-cce0-4bf6-829a-ad0d15c3fe8b","block_type":"box","text":"Each Fund’s investments will be limited in order to allow the Fund to qualify as a “regulated investment","page_number":118,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"0f76b2b7-6128-489b-b2d4-71d1b94b4a99","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":118,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"59c83f33-f6f7-4dfd-ac39-93c8d2bdd61e","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":118,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"9da25f73-dadf-46d9-985c-c75403f1b067","block_type":"box","text":"50% of the market value of each Fund’s assets is represented by cash, securities of other regulated investment","page_number":118,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"079610ba-ba26-486a-8adf-fc806b8f8089","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":118,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"12408668-8b09-48bf-8413-af23d7e5fbf5","block_type":"box","text":"issuer, to an amount not greater in value than 5% of the Fund’s assets and not greater than 10% of the outstanding","page_number":118,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"8fd6bbdc-8081-4a24-8200-5f84611416b2","block_type":"box","text":"voting securities of such issuer and (ii) not more than 25% of the value of its assets is invested in the securities","page_number":118,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"210a49ef-162c-4498-bc80-1ba9343298f6","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":118,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"8e92924b-6cef-4797-b6bc-23a9b5f06128","block_type":"box","text":"two or more issuers that the Fund controls and that are determined to be engaged in the same or similar trades or","page_number":118,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"fe9752ca-b765-42dc-877e-b37caf138457","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":118,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"6469f046-6494-4944-95e9-500144c486a0","block_type":"box","text":"(","page_number":118,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"dfb85407-7322-4951-a3e5-ce8db8c94c0b","block_type":"box","text":"i.e.","page_number":118,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"7976810d-438c-463e-85c0-8d4dc72c4f70","block_type":"box","text":", par tnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":118,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"41391a4b-0316-466a-b02a-c4d389691bfd","block_type":"box","text":"par tnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":118,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"75b8e105-2a7c-471a-8377-6dd5403ec10a","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":118,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"817e4377-ee7e-48ff-a242-9bf7a82a16ce","block_type":"box","text":"of its political subdivisions, agencies or instrumentalities and each multi-state agency of which the state is a member","page_number":118,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"0fa7e128-5beb-4257-8a9e-a2bc0cecd7c5","block_type":"box","text":"as a separate issuer. Each public authority that issues securities on behalf of a private entity generally will also be","page_number":118,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"67e939e8-210c-4ef4-ade9-8e9df2553cff","block_type":"box","text":"regarded as a separate issuer, except that if the security is backed only by the assets and revenues of a non","page_number":118,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"4107d074-967d-4812-a719-886be16e59cb","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":118,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"368b0c58-f483-43d4-9986-af5049c54430","block_type":"box","text":"regarded as the sole issuer.","page_number":118,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"e7ab58fc-f0ea-4dd3-a3eb-a293544134e3","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":118,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"806b1256-b1b6-4fcb-bba5-1384ac46b5f5","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":118,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"15a21c7b-ed40-4a8a-9771-79b3219ad675","block_type":"box","text":"considered to be obligations of a single issuer. These tax-related limitations may be changed by the Directors of a","page_number":118,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"a0c76555-269e-4fa1-8ee8-508b886822af","block_type":"box","text":"Fund to the extent necessary to comply with changes to the U.S. federal tax requirements. A Fund that is","page_number":118,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"724ffa36-2028-452f-8024-6e46b65b5d7b","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":118,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"2a22ca1b-2316-4af5-8abc-e1009fc41805","block_type":"box","text":"75% of its total assets.","page_number":118,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"906b465d-ae20-46d2-9b20-2623a5392800","block_type":"box","text":"II-81","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d6eb7ba2-8fa6-47d1-80d7-b154ba55dfe1","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8e26e269-12f3-4ef2-a977-aebf326518fc","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":119,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"6932ffd8-4a92-4090-99ee-794ea70e91db","block_type":"box","text":"Directors and Officers","page_number":119,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"2e7d6099-3773-4ed3-8dad-e146408484c0","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":119,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"24f6b76f-4b4f-41c7-8081-7a91f9601095","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":119,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"854a58f7-ce22-445b-9147-89f50eed583c","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":119,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"587e954e-192c-4612-9f47-106815aafa47","block_type":"box","text":"cer tain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":119,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"01f42e4f-3ccb-42bf-9320-d3527507bc55","block_type":"box","text":"Management Arrangements","page_number":119,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"29122a75-0c12-4f03-972c-0dee6b30152c","block_type":"box","text":"Management Services.","page_number":119,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"f600643b-368c-4eaf-8c46-a8400633ca46","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":119,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"a93497eb-5865-40b8-a13e-966887a2260d","block_type":"box","text":"Subject to the oversight of the Board of Directors, the Manager is responsible for the actual management of a Fund’s","page_number":119,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"dd940f09-be85-4b66-a751-70e65bd97154","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":119,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"b7aa43e1-c0a4-441e-ad6e-f44da683211f","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":119,"box":{"x":68,"y":242,"width":832,"height":11}},{"id":"89b813af-4fb9-4074-b245-b6da445ca95c","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":119,"box":{"x":70,"y":257,"width":801,"height":11}},{"id":"99c85e80-68b1-4f61-ae00-a1e0de6c82a9","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":119,"box":{"x":69,"y":272,"width":370,"height":11}},{"id":"29685208-339a-4cea-afc3-38892d32858b","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":119,"box":{"x":102,"y":295,"width":778,"height":11}},{"id":"c230bfc9-a6ff-400b-83d1-60ab3cbaed44","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":119,"box":{"x":70,"y":310,"width":800,"height":11}},{"id":"398588ae-a91c-4bf5-a555-8357227b3083","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":119,"box":{"x":69,"y":325,"width":810,"height":11}},{"id":"97b0bb1f-bce0-4d99-b61b-18acdf970f70","block_type":"box","text":"Management Fee.","page_number":119,"box":{"x":102,"y":348,"width":126,"height":11}},{"id":"968c93d2-d9d2-4552-ad70-ae7dbef5d345","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":119,"box":{"x":235,"y":348,"width":646,"height":11}},{"id":"24a447ae-9b18-4d48-a5f0-3198a46dd098","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":119,"box":{"x":68,"y":363,"width":841,"height":11}},{"id":"ce0f8aa5-6867-43c2-9cb0-528c946dfec8","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":119,"box":{"x":69,"y":378,"width":833,"height":11}},{"id":"7493a6c0-63cd-4550-8462-b28da34fa099","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":119,"box":{"x":68,"y":393,"width":746,"height":11}},{"id":"a0d78999-efaf-448e-844f-dd7e3fd3bd37","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":119,"box":{"x":70,"y":408,"width":825,"height":11}},{"id":"d1f70f62-edde-4c7d-b91a-72c683c4283e","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":119,"box":{"x":102,"y":431,"width":774,"height":11}},{"id":"754a63c9-dfb3-4732-ac71-8509b06e23e4","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":119,"box":{"x":69,"y":446,"width":826,"height":11}},{"id":"b1893869-f2b1-4a2a-9a68-745c04d64307","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":119,"box":{"x":70,"y":461,"width":820,"height":11}},{"id":"05f878b7-f40d-4ed0-8660-e4cee527e2c0","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":119,"box":{"x":68,"y":476,"width":797,"height":11}},{"id":"1a3cd256-352a-4ff8-a6c6-f5a1841e8c89","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":119,"box":{"x":70,"y":491,"width":830,"height":12}},{"id":"d15ed286-45df-40c5-a06a-d05af08c5add","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":119,"box":{"x":69,"y":506,"width":802,"height":12}},{"id":"746497e8-8b0f-400f-8425-9189557d42d0","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":119,"box":{"x":70,"y":521,"width":809,"height":12}},{"id":"e8a713ce-2740-41bf-9b10-3a6a28675fc5","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":119,"box":{"x":69,"y":537,"width":838,"height":11}},{"id":"9c79c98f-3282-419c-959c-f9cf6d4de17b","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":119,"box":{"x":69,"y":552,"width":830,"height":11}},{"id":"43c3fb5c-b2df-4631-9e65-5af84d8a47ea","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":119,"box":{"x":70,"y":567,"width":784,"height":11}},{"id":"deb5f1eb-ce62-4be4-9fef-ed2546a03ba8","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":119,"box":{"x":69,"y":582,"width":767,"height":11}},{"id":"60e07212-93f1-4caf-9c17-c0a583aefbc2","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":119,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"b0d23dfa-6230-429b-8fab-b09254546bdc","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), The Bank of New York Mellon (“BNY Mellon”) or JPMorgan","page_number":119,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"16d05039-1fe7-4904-8941-3a53ae4a0474","block_type":"box","text":"Chase Bank, N.A. (“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as applicable, and","page_number":119,"box":{"x":69,"y":627,"width":814,"height":12}},{"id":"b6351203-0194-4da0-b1ad-9808cb3c6d81","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":119,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"26ae0527-8007-4df2-a034-303a9bc3675d","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":119,"box":{"x":70,"y":658,"width":839,"height":11}},{"id":"fd1e44fd-b3ab-4697-ab19-2c38ad7a25e0","block_type":"box","text":"to distribution plans in compliance with Rule 12b-1 under the Investment Company Act. See “Purchase of Shares —","page_number":119,"box":{"x":68,"y":673,"width":828,"height":11}},{"id":"fdb64b70-cec3-4cef-b78a-93882009a59c","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans.”","page_number":119,"box":{"x":70,"y":688,"width":350,"height":11}},{"id":"35c5a656-5120-4574-a7b6-37615204ea45","block_type":"box","text":"Sub-Advisory Fee.","page_number":119,"box":{"x":102,"y":711,"width":124,"height":11}},{"id":"c8f85e39-12e3-4aa9-9502-743d01de6153","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":119,"box":{"x":232,"y":710,"width":643,"height":12}},{"id":"415ef7d3-4e34-42ee-a7af-5fae1e52b607","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":119,"box":{"x":70,"y":726,"width":839,"height":11}},{"id":"a3298d88-11a9-4224-bc24-e213d12b8f8d","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":119,"box":{"x":68,"y":741,"width":830,"height":11}},{"id":"ab7c4af1-3e32-4499-88c0-2bd13237d2bd","block_type":"box","text":"Organization of the Manager.","page_number":119,"box":{"x":102,"y":763,"width":204,"height":12}},{"id":"063583f8-1634-40e2-8b0e-445b898fcc79","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":119,"box":{"x":313,"y":763,"width":560,"height":12}},{"id":"c504666f-6223-47b5-937a-0ee35380f546","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":119,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"0552dbb2-26eb-424d-9010-c682c3d9ae07","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":119,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"8a7d5cb3-75a0-40e4-a6a3-8fc0636e2be3","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":119,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"4fc0a37e-42bf-45e3-9735-ea045f142b91","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":119,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"5513f58e-ad8a-49f1-a799-7a4fb9723731","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":119,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"8e7b9e82-eced-4cd0-bf4e-697aafa2d8f3","block_type":"box","text":"Duration and Termination.","page_number":119,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"63a8c2b9-b7bf-4942-b4f0-9e4db6e1c341","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":119,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"868c844e-4527-408d-9586-37de7ad4b5fb","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":119,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"d7377ac4-803f-46a0-ac94-562f05e0149e","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":119,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"3f1a755f-a017-4be7-8695-0f85a7ca5139","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":119,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"7b60657a-77a4-4595-bd9c-ccfb65463f8a","block_type":"box","text":"II-82","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e9fcd226-0c78-48e4-9b4e-31a058c08e9c","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1d629f7f-9b70-429a-9f3c-f4e4ef472995","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":120,"box":{"x":70,"y":45,"width":778,"height":11}},{"id":"35df4cb1-e529-4ad4-93c0-1c2f3666e342","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":120,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"b3a8196f-a883-4886-9541-23b7b2f85b80","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":120,"box":{"x":69,"y":75,"width":388,"height":11}},{"id":"171bc597-dddd-465e-bec0-e4a3b9446f2b","block_type":"box","text":"Other Service Arrangements","page_number":120,"box":{"x":69,"y":105,"width":205,"height":11}},{"id":"ae334098-6671-48a0-860c-9d94a926350e","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":120,"box":{"x":101,"y":128,"width":338,"height":9}},{"id":"b5300df3-dc04-4148-b01f-cb90aaf85bdf","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":120,"box":{"x":446,"y":128,"width":439,"height":11}},{"id":"528968ec-ea57-4d27-88ac-384aa0c2deba","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":120,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"d85cd8b8-28e0-4480-80b1-dfa9a4e7a4f1","block_type":"box","text":"SAI (each an “Administrator”). For its services to a Fund, the Administrator receives monthly compensation at the","page_number":120,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"50ebad51-712a-480f-8ba0-3d05f5e43607","block_type":"box","text":"annual rate set for th in each applicable Fund’s Prospectus. For information regarding any administrative fees paid by","page_number":120,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"c049807d-cdde-4551-81a9-399daed58b57","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":120,"box":{"x":68,"y":188,"width":738,"height":12}},{"id":"4276ec4e-e410-446f-ae76-10a7f4c9ccd3","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":120,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"b6b8bc50-6442-4d78-b918-319429319a63","block_type":"box","text":"that Fund’s SAI.","page_number":120,"box":{"x":68,"y":219,"width":113,"height":8}},{"id":"347af7b5-84c5-4cc5-93f5-818f7530cfe1","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":120,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"151804b1-7ede-493e-b0e3-17afa4bfd892","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":120,"box":{"x":69,"y":256,"width":800,"height":12}},{"id":"7eb4292f-b250-44a6-a5c1-d9e3cb6605fc","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. Each Administrator is also","page_number":120,"box":{"x":70,"y":271,"width":809,"height":12}},{"id":"02dcee8d-f8b2-43ab-9cf7-c90d69435ffb","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":120,"box":{"x":69,"y":286,"width":826,"height":12}},{"id":"91702db3-4235-4dd4-87e3-60446fcb03be","block_type":"box","text":"persons of the Administrator or any of its affiliates.","page_number":120,"box":{"x":70,"y":302,"width":362,"height":11}},{"id":"6c4884a2-3b3f-4192-b6cb-55526a5232da","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":120,"box":{"x":102,"y":324,"width":390,"height":12}},{"id":"44c89324-bca4-41f8-8ae9-7ff2766d179b","block_type":"box","text":"Unless earlier terminated as described below, each","page_number":120,"box":{"x":499,"y":325,"width":364,"height":10}},{"id":"375374f9-9592-44f7-9510-cd1e1db9191d","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":120,"box":{"x":68,"y":339,"width":832,"height":12}},{"id":"c1762737-fc36-4d48-832e-4cc73436f906","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":120,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"714d7b72-ce2a-47e4-9cd7-6abcbb533fb9","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":120,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"8eb458ab-0936-4de6-ade9-55e1d919ff75","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":120,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"108a89e1-7b52-4ff2-a5a6-aaaf476d6ee7","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":120,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"ca8ca416-8775-425e-9009-bb118ab4d056","block_type":"box","text":"shareholders of the Fund.","page_number":120,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"4fb232fe-d374-417d-abba-68e4bbeedd83","block_type":"box","text":"Transfer Agency Services.","page_number":120,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"4310126e-e797-48de-95c6-0568ea951e67","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":120,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"fd221b4d-f2bd-4078-bf80-632652df20e6","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":120,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"8b3b490f-50ff-44a4-b9a4-e4c88b99b18b","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":120,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"d87a4e9e-159d-4e67-8f61-72902f34fb2a","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":120,"box":{"x":68,"y":483,"width":792,"height":11}},{"id":"a79d408a-452a-4f8e-89cd-51770c744c21","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":120,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"4527e4d1-a1e9-46ec-b2e8-2ea449f56744","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":120,"box":{"x":68,"y":513,"width":839,"height":12}},{"id":"640a9988-13f7-4438-a63b-74e27ee30595","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":120,"box":{"x":70,"y":528,"width":831,"height":12}},{"id":"d3611a35-d8e8-46e1-8bb6-e8dd50d3bd6d","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":120,"box":{"x":68,"y":543,"width":813,"height":12}},{"id":"c053f886-02eb-433b-89b9-993b85e4204c","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":120,"box":{"x":70,"y":559,"width":836,"height":11}},{"id":"82b47ae7-2149-4589-9c8a-57a292eb163b","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":120,"box":{"x":69,"y":574,"width":806,"height":11}},{"id":"1997c80a-0d4b-4c36-ab94-c02440f618b8","block_type":"box","text":"class on a recordkeeping system.","page_number":120,"box":{"x":69,"y":589,"width":238,"height":11}},{"id":"c0e6f49e-845a-4531-be0e-f91a84ee7fdf","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":120,"box":{"x":102,"y":612,"width":338,"height":11}},{"id":"f722c532-f1fd-4855-8526-7b9ef23555d3","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":120,"box":{"x":446,"y":612,"width":441,"height":10}},{"id":"eefc49b6-ce8e-45fc-a36a-024fd8b9cd43","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":120,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"f0901dcf-9238-4e93-967b-6adf53fa15b2","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":120,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"16f53877-7ac7-47c3-bad4-e754d146e56f","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":120,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"694c45a5-97f7-4edc-b966-5db38065108d","block_type":"box","text":"Custodian Services.","page_number":120,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"41911f52-a6cc-4bc6-8405-4bd06013a9bf","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":120,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"2216aa91-94cb-48c6-87c2-5ad4090bdb35","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":120,"box":{"x":70,"y":695,"width":820,"height":11}},{"id":"aacfb32b-4d04-4c75-98d7-f8a148390fdf","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":120,"box":{"x":70,"y":710,"width":814,"height":11}},{"id":"157d8f85-6adc-43ab-86a5-80ba38ce37f2","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":120,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"6438a59c-e1dd-42ae-bc5b-100f9324cb3e","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":120,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"ba36ee02-d252-415e-a03d-00640ebb4710","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":120,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"4a44d401-a5d1-41f6-9175-b2a31537f358","block_type":"box","text":"cer tain assets.","page_number":120,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"e38727da-00f5-4300-8362-c15e4e20bb26","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":120,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"a125bb2a-056e-4e49-814e-71a19a77c999","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":120,"box":{"x":102,"y":816,"width":803,"height":11}},{"id":"56b5905e-c119-4a8f-98ce-c5b576812770","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":120,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"8a1f8036-dbea-417f-a80e-7998e6ab4b3e","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":120,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"e33b53d0-b643-4d71-8665-cb121909058f","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":120,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"682b584c-701a-46fd-80a9-c200e5481ccc","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":120,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"cfe1a35c-b047-411f-8a6a-9b910f85f517","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":120,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"814ddef7-52c8-42c9-8189-33b1ff8993c6","block_type":"box","text":"Fund.","page_number":120,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"1c485bd4-d090-4c46-8351-f97177beb2d3","block_type":"box","text":"II-83","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b3838f5d-481b-434e-92af-801450b3503c","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a419496d-37d4-4748-ae4d-ed5813af364d","block_type":"box","text":"Accounting Services.","page_number":121,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"4ead3cae-4f96-4f3e-96ab-52aa2bad33cc","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":121,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"c7108f85-c8dd-4d4e-9e08-ce535317ea2a","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":121,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"ec5b02e4-5396-4056-ab73-98429c330919","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":121,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"f387e9be-82d3-4634-a289-d0309290fa54","block_type":"box","text":"Master LLCs.","page_number":121,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"5dbe2f48-b4ab-483b-9a85-aee7d8cd1a88","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":121,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"7dec0066-440a-4fe5-8599-3a49e9affe86","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":121,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"c3698d21-a47c-4cd2-befe-1127362fe232","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":121,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"86e5b55f-22fd-4df5-87a9-9a6977261b5d","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":121,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"cc3c246e-cb0b-4ba5-8e21-0365369eedaf","block_type":"box","text":"Distribution Expenses.","page_number":121,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"3d923fff-bbd8-471f-bb2b-f2ec4f14179e","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":121,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"6f737b26-9425-4950-a76e-020348da60fb","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":125,"box":{"x":69,"y":299,"width":818,"height":11}},{"id":"72d77e5a-284a-48aa-a5a0-a44f0e07792a","block_type":"box","text":"and third-par ty data providers upon request, as soon as such data is available.","page_number":125,"box":{"x":69,"y":314,"width":562,"height":11}},{"id":"44041e16-2a45-4c82-8dc1-a6f4be08aa61","block_type":"box","text":"Contact Information.","page_number":125,"box":{"x":102,"y":337,"width":144,"height":9}},{"id":"74050f60-b20e-48f7-bf44-b36e7512ca1f","block_type":"box","text":"For information about por tfolio holdings and characteristics, BlackRock fund shareholders","page_number":125,"box":{"x":253,"y":337,"width":639,"height":11}},{"id":"3fcb1bd4-0795-4fca-ab4f-2b56caf6ce5f","block_type":"box","text":"and prospective investors should call the number set out on the back cover of the 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BlackRock, its subsidiaries and their","page_number":126,"box":{"x":102,"y":339,"width":731,"height":12}},{"id":"9054115c-1f36-4a1a-b6f3-6e480a3a4165","block_type":"box","text":"respective directors, officers and employees, including the business units or entities and personnel who may be","page_number":126,"box":{"x":69,"y":355,"width":799,"height":11}},{"id":"4c266245-83dd-4159-8b2f-b29381be875e","block_type":"box","text":"involved in the investment activities and business operations of a Fund, are engaged worldwide in businesses,","page_number":126,"box":{"x":70,"y":370,"width":786,"height":11}},{"id":"c8a9dbde-6cbd-4d66-955e-b1355de215df","block_type":"box","text":"including managing equities, fixed income securities, cash and alternative investments, and other financial services,","page_number":126,"box":{"x":70,"y":385,"width":829,"height":11}},{"id":"2fa8972d-d142-46b8-8205-1cff2e94655d","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":126,"box":{"x":69,"y":536,"width":808,"height":11}},{"id":"b91701d5-626e-4c71-ba6d-f3e05bf540dd","block_type":"box","text":"substantially similar to those of a Fund but with different fees and expenses, governance and structures, and/or","page_number":126,"box":{"x":69,"y":551,"width":803,"height":11}},{"id":"d0c53a1e-247a-404a-b87e-95261f3266af","block_type":"box","text":"services provided by BlackRock","page_number":126,"box":{"x":69,"y":566,"width":224,"height":11}},{"id":"807fef44-8797-4570-a3d7-bdfee96e1876","block_type":"box","text":".","page_number":126,"box":{"x":295,"y":574,"width":2,"height":1}},{"id":"a8017c0b-6182-4b72-b9cc-a1fc332fb609","block_type":"box","text":"BlackRock is also a major par ticipant in the global currency, equities, swap and fixed","page_number":126,"box":{"x":304,"y":566,"width":603,"height":11}},{"id":"1d051673-f80c-4b7b-a73a-06327877b9f1","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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In some cases, such por tfolio holdings are made publicly available on a daily basis. 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In some cases, this system may adversely affect the size or price of the assets purchased or sold for a","page_number":126,"box":{"x":69,"y":831,"width":835,"height":11}},{"id":"7185407f-fa7d-45f4-b9a9-ee0e6d50cae3","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":126,"box":{"x":70,"y":846,"width":817,"height":11}},{"id":"5e173c26-1047-4244-a1fb-bdc979f0aef9","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, par ticularly, but","page_number":126,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"07f7fbdd-2078-4959-91e5-c5a73844eac0","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":126,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"9c631fd9-5de8-4c5d-bd56-acf305aaffde","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":126,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"fff724c2-22e6-4f61-833f-1aa4177e2281","block_type":"box","text":"information that is also used to suppor t decisions for other accounts. When BlackRock implements a por tfolio","page_number":126,"box":{"x":70,"y":906,"width":785,"height":11}},{"id":"9bd23f0a-bdf0-4cef-bfc1-fc00c2ce1a54","block_type":"box","text":"II-89","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c70a24e7-f9fa-444b-b0e4-1e41993a03d1","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":126,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"855da26c-3afa-427c-98b8-3f01ce130d32","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":127,"box":{"x":69,"y":45,"width":767,"height":11}},{"id":"4c52a005-1086-47c0-a539-b8a368850a87","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":127,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"2279c49c-6cae-4c4f-919d-7f677b960761","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":127,"box":{"x":68,"y":75,"width":827,"height":11}},{"id":"1e176bca-840e-447b-8b51-edd8bda0d41d","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in cer tain cases, elect to implement internal policies and","page_number":127,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"e77e56fa-2023-4a60-968b-697a81b1cd6f","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":127,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"42ef0701-d05d-42ed-aa2b-aca07b41fd21","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":127,"box":{"x":69,"y":120,"width":781,"height":12}},{"id":"a8d2f8bb-6ece-42ef-b209-fd52d7a749fe","block_type":"box","text":"Conflicts may also arise because por tfolio decisions regarding a Fund may benefit other accounts managed by","page_number":127,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"f84d0f18-30f0-46ea-99c2-d68125ec35d7","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":127,"box":{"x":70,"y":150,"width":809,"height":12}},{"id":"924151f9-0520-415f-a253-272bf72c885c","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":127,"box":{"x":70,"y":166,"width":805,"height":11}},{"id":"90fc17cb-4219-43a6-ae2e-74e959d2ebcd","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":127,"box":{"x":70,"y":181,"width":797,"height":11}},{"id":"67ed1438-464c-4e21-956c-b8aba1abd500","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":127,"box":{"x":69,"y":196,"width":573,"height":11}},{"id":"bdc113b6-4fcb-44e3-9c6a-106e34473df4","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":127,"box":{"x":102,"y":218,"width":797,"height":12}},{"id":"cf633f7d-0292-46e6-a49c-b9244a8f16d3","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":127,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"d848a6ce-af0d-4b50-a922-0e08b44b4d21","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":127,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"e2ebdd84-e09d-423b-ba56-ff276d6e042b","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":127,"box":{"x":69,"y":264,"width":812,"height":11}},{"id":"24176565-fd88-44c7-9999-622d2c3d46b2","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":127,"box":{"x":69,"y":279,"width":803,"height":11}},{"id":"a08f8676-9a44-445f-aee2-f893e1ca5a7b","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":127,"box":{"x":70,"y":294,"width":783,"height":11}},{"id":"82367175-c901-462d-89bb-8e40d41ec8a2","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":127,"box":{"x":69,"y":309,"width":818,"height":11}},{"id":"d8f77d83-1571-4cba-999d-cbc07b09a16d","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":127,"box":{"x":70,"y":324,"width":777,"height":11}},{"id":"9f7c1794-3fb9-449b-b4b2-8da6ad03b3b7","block_type":"box","text":"par ticular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":127,"box":{"x":70,"y":339,"width":780,"height":12}},{"id":"6e53574a-74cc-49d0-b081-a0bfbe946edb","block_type":"box","text":"business units or por tfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":127,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"7f4b6ed8-500c-4d56-81cf-46095f94a1b7","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":127,"box":{"x":69,"y":370,"width":817,"height":11}},{"id":"e8c84c96-5694-4587-8e12-242ad9c96f84","block_type":"box","text":"Funds.","page_number":127,"box":{"x":70,"y":385,"width":44,"height":9}},{"id":"ad6c968b-853c-4b2e-bb21-b5e2a9e371f1","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":127,"box":{"x":102,"y":407,"width":755,"height":12}},{"id":"1be095a2-b082-4efd-929a-d627db589b11","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":127,"box":{"x":69,"y":423,"width":836,"height":11}},{"id":"b1f03795-20e6-4dd7-aa4f-9c409e7d3bbd","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":127,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"97d0d938-6315-4f73-b1cf-23e22400ce9e","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including por tfolio managers.","page_number":127,"box":{"x":69,"y":453,"width":679,"height":11}},{"id":"dc1728a1-0fc8-406b-a88c-29e7728535dd","block_type":"box","text":"Third par ties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":127,"box":{"x":101,"y":476,"width":760,"height":11}},{"id":"aa555e67-aa98-4e45-ae02-1a0a36882177","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":127,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"f001ace7-4f10-4c30-90b3-035a07cf58e8","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":127,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"7f648f4a-72e6-4746-b54f-aa3badfc0d66","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":127,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"5791a799-e075-4850-9956-882a95de93fd","block_type":"box","text":"to retain such third par ties to provide services to the Fund.","page_number":127,"box":{"x":68,"y":536,"width":421,"height":11}},{"id":"52ce1e6b-d892-433d-ad97-8849afa108e8","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":127,"box":{"x":102,"y":559,"width":794,"height":11}},{"id":"d4f6befd-fc28-44d5-af7e-326d94f2e79e","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":127,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"1b0b1fd1-3e68-4e78-a72c-59d1c97ba1a6","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":127,"box":{"x":70,"y":589,"width":797,"height":11}},{"id":"0f5caf8e-f645-4df3-ae50-9fc5e8356eaa","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":127,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"c9460f65-712b-45d0-b61d-ceac2b7c39c5","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":127,"box":{"x":70,"y":619,"width":780,"height":11}},{"id":"649cf43a-683a-4514-927c-02ad5debdc1b","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":127,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"2cccc315-d5fa-4c22-a297-6f286048076f","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":127,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"db0afeed-55f4-4473-85ff-e194dfbf6d2e","block_type":"box","text":"BlackRock and its clients may pursue or enforce rights with respect to an issuer in which a Fund has invested,","page_number":127,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"141cf4f2-b8bb-44f7-9da4-6f86e83ac0c8","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":127,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"5acde2e0-db8d-4b82-a23d-17c28604b55a","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":127,"box":{"x":70,"y":702,"width":827,"height":12}},{"id":"14bbfa94-cc33-480c-a57c-87b8b4dbbde3","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":127,"box":{"x":70,"y":717,"width":828,"height":12}},{"id":"2b5a1013-2262-4619-aecd-4c8d06703e40","block_type":"box","text":"case.","page_number":127,"box":{"x":69,"y":735,"width":37,"height":7}},{"id":"9d5f3786-b01d-4d78-9f60-0219d7301d44","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":127,"box":{"x":101,"y":755,"width":791,"height":11}},{"id":"d22f3bed-4719-4f6e-8073-c2775c3e62f0","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":127,"box":{"x":70,"y":771,"width":824,"height":11}},{"id":"cb642fb0-4629-41b8-b879-9284135b8783","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":127,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"c65fa601-392f-40f9-a094-a868f4775148","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":127,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"0acf5268-e225-4bf4-93b5-19867b108916","block_type":"box","text":"Fund. Moreover, it is possible that a Fund will sustain losses during periods in which one or more proprietary or other","page_number":127,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"e358d084-142a-4d90-a30d-b9354fa75132","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":127,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"69e922dd-a401-4530-b33f-715f5ec20367","block_type":"box","text":"From time to time, a Fund may be restricted from purchasing or selling securities, or from engaging in other","page_number":127,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"83746749-91d3-4690-ac70-74a54f6e845f","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":127,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"c321ef40-52c2-49a2-ab8e-88dd83e228e8","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":127,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"3e9790fc-4418-4615-9769-dfbdeea91eb5","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":127,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"7f7306d9-f34d-4ff6-8a79-d23a0d34aae8","block_type":"box","text":"II-90","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"25090457-e064-445b-b952-c88747538044","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":127,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6ec7c809-840c-4d22-894c-aa8dde9eced6","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":128,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"80f93963-9a2e-47b5-8bc4-2d5b75c1276b","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":128,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"10f8f3ab-6397-45b9-ba59-ff2dd3d9c4da","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":128,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"2d355ef6-ab6d-4775-a7fc-beecf4f32c41","block_type":"box","text":"and other markets in which limitations are imposed upon the amount of investment, in the aggregate or in individual","page_number":128,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"9fb7f92b-b02d-4a01-94f5-4ee10c885687","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":128,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"07c00c36-3da2-40dd-bfd3-8ee2c7e44c55","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to cer tain fundamental analysis and","page_number":128,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"911a2032-7cf1-43d8-81ee-cb9c30998c16","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":128,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"3b78fa48-7a40-48b4-8b07-ee5f063b9eba","block_type":"box","text":"transactions on behalf of a Fund in accordance with such analysis and models. In addition, BlackRock will not have","page_number":128,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"e7b09c00-0db4-4e9b-b3a1-aa9c6796bb1f","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":128,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"3ebc75bd-fac3-4394-8e37-070bb9c5a80e","block_type":"box","text":"strategies used for other accounts managed by them, for the benefit of the management of a Fund and it is not","page_number":128,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"38b49668-762a-4390-aefb-23063275bcec","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":128,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"201461b2-1494-4595-8680-fbbb79bab7f7","block_type":"box","text":"proprietary activities or por tfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":128,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"98e5243c-da92-44ad-8311-92a7a3aaf092","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":128,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"71f57fdb-8f71-433c-b8b2-f87967d507d3","block_type":"box","text":"managing a Fund.","page_number":128,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"046755c7-8321-4f40-aee8-5b81b3142803","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":128,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"a951d3d1-b1c6-4dec-86f9-d1ae988cf354","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":128,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"ec06fc01-0785-43a5-b14d-d8c99785b9f4","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":128,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"53deaa23-1207-4839-bc50-dbb4da848aa9","block_type":"box","text":"value and liquidity of a Fund may be impacted by purchases and sales of the Fund by model-driven investment","page_number":128,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"4db0f34d-784c-4f9e-a905-da854ebbec5b","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":128,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"86dbc4d4-21b7-42bf-af08-71854dee9782","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":128,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"7a7eb858-879d-4de3-8823-34d197abe0eb","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":128,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"d4af037e-6e33-4dbd-9e1b-5064ed2ea724","block_type":"box","text":"have obligations to such other business units or entities or their clients and such obligations to other business units","page_number":128,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"82d4b3ff-2971-4887-9ab5-cfba257095fb","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":128,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"d8556e9d-0c8c-4063-a319-a1f4db9b84e1","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":128,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"370337a4-459a-4542-92bb-24d1a0df1421","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":128,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"ab414ffa-197c-48d0-aff2-a715178ec032","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":128,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"c57da45d-d58d-453a-bc79-ff3713eb2445","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":128,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"ca2bdc92-7051-4115-89b8-6593630b0d3a","block_type":"box","text":"or terms in connection with the transactions. In addition, the purchase, holding and sale of such investments by a","page_number":128,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"e1193fb6-522f-489f-bd34-d2226a9cfee2","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":128,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"3bac494a-7e50-41df-90e5-1f38090165db","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":128,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"49700259-1b8b-4e91-966a-5d32e1952aec","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":128,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"e19c1d60-6617-4da1-988b-02849acfebe9","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":128,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"cb9fafd7-204b-44d8-beb4-89692635580d","block_type":"box","text":"cer tain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":128,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"2ef9b941-276d-4cff-bf97-8063e7084088","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":128,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"e542f67c-5091-4bc4-91b6-33e4cabfb779","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":128,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"b6df8d38-d847-49c1-ac35-24229735b981","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":128,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"520bfeef-bfc9-4c26-ace6-9a9d43505d00","block_type":"box","text":"under management for BlackRock.","page_number":128,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"9f46a2da-d8cb-48bd-ba2d-f011476f78bd","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":128,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"83417919-97cf-4cda-a2c7-ea38ae92dd64","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":128,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"9d3d89db-f289-458c-9b4a-60299a39ccde","block_type":"box","text":"clients have interests adverse to those of the Fund. At times, these activities may cause business units or entities","page_number":128,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"b643baa1-ae73-41bf-b168-abfa388da3e0","block_type":"box","text":"within BlackRock to give advice to clients that may cause these clients to take actions adverse to the interests of the","page_number":128,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"3793e8cf-f3ba-4921-bcc3-023f58049180","block_type":"box","text":"Fund. To the extent such transactions are permitted, a Fund will deal with BlackRock on an arms-length basis.","page_number":128,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"5f95a7b0-5638-4002-aa31-505fc37c0b7e","block_type":"box","text":"To the extent authorized by applicable law, BlackRock may act as broker, dealer, agent, lender or adviser or in","page_number":128,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"cce0b84b-07fa-409e-b460-b03f25e1f180","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":128,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"61ff9a7b-cef5-425e-ad3e-7c5108c5f198","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":128,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"56a9ae8b-ddac-4792-902f-90c02a157104","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":128,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"feb24a9a-a775-4ff9-af0f-6d3d4357a767","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":128,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"5705a943-b01a-4624-8b22-a9c536b8e378","block_type":"box","text":"amounts that are favorable to BlackRock and such sales personnel, which may have an adverse effect on the Funds.","page_number":128,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"b75cd91d-27d1-48ad-bed5-f5b2adc95db7","block_type":"box","text":"Index based funds may use an index provider that is affiliated with another service provider of the Fund or BlackRock","page_number":128,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"ff495551-91f5-4c3b-ae14-2dc8f1b967fa","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":128,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"f8c2892c-7868-4ee5-bdba-0c0d9e123de8","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":128,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"4fc81ec5-4be4-4f54-82b1-466956ac0171","block_type":"box","text":"other amounts that they receive in connection with their service to the Funds as broker, dealer, agent, lender, adviser","page_number":128,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"b5db6595-e18c-4ee2-876c-c08c783672a7","block_type":"box","text":"or in other commercial capacities. 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BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":129,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"a7bef96d-cf0a-45d6-97a1-6e76154f77ac","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":129,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"fffb6fb5-3a68-49b7-9cda-6df1874a219d","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":129,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"a3d39b35-612d-42fb-ba79-7ccadbdb6132","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":129,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"2ca599b3-ad69-4d6b-b299-654884d2eac1","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":129,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"1ad9700b-4b49-4a83-b744-188712998173","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":129,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"e9f6aa90-6997-46fe-9107-89bb702c698d","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":129,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"3d5f3238-0560-4f31-b4f7-71066d35e828","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":129,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"f0667ccd-d583-4af7-84ea-27cdb5874d2c","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":129,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"d26a8e12-ee30-48d6-b87d-73aaa3664182","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":129,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"241eaa27-9a4a-4630-b446-e0c8f632b569","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":129,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"1f590d48-a0e3-47df-8414-9ac4e12f27ad","block_type":"box","text":"BlackRock. As described fur ther below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":129,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"4d2fdea0-14b4-410d-a308-ef40da81e9d4","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":129,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"9c7b23ef-8d4e-4ca2-b1ce-6fe6c19f9726","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":129,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"5ee91ddf-b26b-4a30-a7a6-0d853d74581a","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":129,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"3be41a4e-f706-4bf5-ae28-7f7c599c7f2c","block_type":"box","text":"potential dollar exposure of collateral shor tfall resulting from a borrower default (“shor tfall risk”) in the securities","page_number":129,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"a785238a-c13c-47e7-9ba1-0c07a9cf700c","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":129,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"8dd8db2e-3c76-4318-9c56-cd5cc870cdd3","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":129,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"a0716db2-a331-4936-8d81-cc6eac85a7ad","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":129,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"7ec7c038-9fe7-4fcd-be44-807ac35c494b","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":129,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"ec496f46-1b33-45dc-a494-dfa6188a6a7b","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":129,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"8d8c46d5-4b78-43b3-850f-5fd3bb21ca9b","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":129,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"6201885c-9698-40e6-9646-234844f4e39f","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":129,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"7d41164d-a653-43d7-af9d-02a25b02526a","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":129,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"30032813-b93c-45ab-bb48-4a45b82cfbf9","block_type":"box","text":"BlackRock may decline to make a securities loan on behalf of a Fund, discontinue lending on behalf of a Fund or","page_number":129,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"58e8fb72-790e-40f2-8062-32ebe8abe0ae","block_type":"box","text":"terminate a securities loan on behalf of a Fund for any reason, including but not limited to regulatory requirements","page_number":129,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"4e7218ea-1458-45bb-ae68-e2100ad60242","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":129,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"02fe6510-f13c-494b-866a-d5464fc245f8","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":129,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"ce89f552-81b4-4a55-ab1e-714f15a1751e","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":129,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"76822293-7cf9-48d6-a9bc-87312e213446","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":129,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"ad016c85-6b0c-49cf-8c54-4a46797c9ccc","block_type":"box","text":"regulation.","page_number":129,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"9c94d12a-05ee-46e9-bd52-0884441e25ee","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":129,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"66424774-a26c-439d-b153-87ff076d18c0","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":129,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"c5f3b67c-89ed-4545-af0d-0ec03669998a","block_type":"box","text":"various program limits (","page_number":129,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"52c1e93a-7912-4bd0-8d50-f7491de2d454","block_type":"box","text":"i.e.","page_number":129,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"ec34e162-3c1f-4f9a-b8d4-d52b4bf4266d","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":129,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"dd57b437-fc08-4cf1-b7bd-af5be672cf36","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":129,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"fefa5163-85fd-4e50-839e-a3696e1a4c96","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":129,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"ba845b61-df3e-4fba-adb9-9cfe7218d05b","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":129,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"fe5c40e9-2faf-4683-9641-110203acc009","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":129,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"2e21d509-8baa-40e8-a9fd-1fe3fa6c0b3a","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":129,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"0784fa57-be55-4f31-a204-e90fb6ad450a","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":129,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"77f3300f-bec3-4815-b947-2111a4b5a092","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":129,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"a5c81394-fc10-4603-9d17-28dda2ec6da8","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":129,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"fd9c70e4-e945-4dba-8c45-9404de3ba351","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":129,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"96556264-4f08-4a17-a588-d4e74336a54b","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":129,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"6f154357-bf16-4799-9269-97b01f2c0001","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":129,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"7cfbb4d0-62bf-404c-b8c9-d575ffa8e17d","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":129,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"cfab8bd7-3976-4ec1-b0f6-d4f276bb6419","block_type":"box","text":"entire volume of securities purchased or sold. When this occurs, the various prices may be averaged, and the Funds","page_number":129,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"668ffce5-e48a-4949-a749-7db0a5ed0946","block_type":"box","text":"will be charged or credited with the average price. Thus, the effect of the aggregation may operate on some","page_number":129,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"4410318f-79dd-4f73-abd7-661eabaf28a8","block_type":"box","text":"II-92","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f060f5cc-6e10-4f3b-a897-273e6f17553d","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":129,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5ed27666-667f-4c2b-8251-381cfcc223b7","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":130,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"4fa16699-bfbb-4b7a-858a-91aebed84ac3","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":130,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"21ae4c86-3f45-4d0a-aebf-f3f3c9a844d8","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":130,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"bab52203-e769-4d64-bac7-b88fddffc700","block_type":"box","text":"Securities,” BlackRock, unless prohibited by applicable law, may cause a Fund or account to pay a broker or dealer a","page_number":130,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"b46df7cc-ffdf-4857-899d-c13821cebfff","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":130,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"d8b4177e-c827-41c3-bb87-2ec82cb71661","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":130,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"345d804d-1157-40d5-ab75-d5a6489048a5","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":130,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"ca983d6c-b045-4fd7-989e-145d7941c640","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":130,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"9017b61b-e45a-41e7-9988-f9ad0ee3a0f9","block_type":"box","text":"than through client commissions.","page_number":130,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"be594216-a117-40a1-9c35-f144ac6aca4d","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":130,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"abe3c947-f25a-4d1b-abbd-e0f98a8a047e","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":130,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"26fbc794-18c6-4715-8201-07fd2b9234c1","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":130,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"50a215b0-bcce-4c71-8c3c-80c1a5e87cde","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":130,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"31ea7aab-6418-4f47-9dcb-d7026b77ceb6","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":130,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"161499a6-1dcb-4722-82cb-9a55804cc6bb","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":130,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"e3f2e1cb-728b-4bda-87e7-e8083be14271","block_type":"box","text":"research-oriented software and other services and products.","page_number":130,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"ddf0187e-f48f-4cdc-a81d-87869d801341","block_type":"box","text":"Research or other services obtained in this manner may be used in servicing any or all of the Funds and other","page_number":130,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"98a21db2-752a-42e6-ad03-1c83e8f430b0","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":130,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"07e33a8c-8426-4946-97c7-fa1018958874","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":130,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"be936694-e9ea-49e6-b633-c8dc3df52ec6","block_type":"box","text":"dispropor tionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":130,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"bc4b68d4-e4cb-4ad4-ba1c-97234a8193a8","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":130,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"821453ab-9aa3-4156-aba0-16d3902efe7e","block_type":"box","text":"that are paid for through one client’s commissions may not be used in managing that client’s account. In addition,","page_number":130,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"a2648abe-01fa-4da3-a421-ea238fe59c38","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":130,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"69a38522-4a24-491b-9603-65f7c72aa00f","block_type":"box","text":"or price discounts in connection with products and services that may be provided to the Funds and to such other","page_number":130,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"dfad6f54-3e14-4bad-bf5a-855a6dfc0b33","block_type":"box","text":"BlackRock client accounts. To the extent that BlackRock uses soft dollars, it will not have to pay for those products","page_number":130,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"b40a19e4-d2f0-49db-85d1-1b18af1b51e2","block_type":"box","text":"and services itself.","page_number":130,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"88b0ccb5-cb77-4126-8478-622200c84e78","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":130,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"cc632eda-ef74-405b-b668-9ccf81323646","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":130,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"7ff32313-77ec-4980-a26f-10c53f7558b0","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":130,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"b116271c-5b1f-4072-9131-fa8077e429cb","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":130,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"5fe49852-992b-4bc0-9419-4e6a75d08c0f","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":130,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"9563ba11-dc8b-4596-b178-7da04830d0e8","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":130,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"cfeeab1a-2620-4570-bf74-c10e891be06b","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":130,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"aca8e3bd-907d-4359-ba5a-09fbbc9f269b","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":130,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"68e25ef0-2943-45b2-a8e6-4c50f3eae356","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":130,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"ea9aa7a8-1ea7-457f-8c7b-92898b202be3","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":130,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"e182e132-1c0a-4cf5-99d4-b889e6d2af46","block_type":"box","text":"securities transactions for cer tain types of securities. These ECNs may charge fees for their services, including","page_number":130,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"29de9d35-34bc-47b7-a87c-f9e6e54e44f4","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":130,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"3d2b6b0a-b2de-41e5-ae2c-6ceeea45ba05","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":130,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"e8f55012-250b-402b-b418-bbc8d652ecb1","block_type":"box","text":"the cost of the securities purchased. Access fees may be paid by BlackRock even though incurred in connection with","page_number":130,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"5a9722d6-17ed-4333-a47a-a17a7feae63d","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":130,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"85d40e90-e9ac-474b-bfa5-15c61d49abe0","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":130,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"2350fab9-abbb-48f6-a17d-a04297940661","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":130,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"c762ef32-0e02-42cd-84ea-3226ba9ef023","block_type":"box","text":"BlackRock owns a minority interest in, and is a member of, Members Exchange (“MEMX”), a newly created U.S.","page_number":130,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"e4c27962-865d-477f-9974-57a687d8116d","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":130,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"6d4711c2-06e2-4175-9493-299192d07e0b","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":130,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"cac807ac-7add-4f27-b004-880a61cfb5ec","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":130,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"e3c650c6-20f5-47e3-849f-d23e61f817b6","block_type":"box","text":"voting decisions that it makes on behalf of advisory clients, including the Funds, and to help ensure that such","page_number":130,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"61d0f24d-4506-4772-83b4-7c34c9e6c905","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless, notwithstanding","page_number":130,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"c24fd970-7716-4933-b83c-2eb1250fda64","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":130,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"cc70b83a-519c-408b-ab96-c26a06f36928","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":130,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"67d2f835-5915-4c13-a54a-4b3dea37cca2","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":130,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"f59dce05-e0f1-40a9-839f-71a0da077d09","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":130,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"5e646f18-3ed5-4bbc-b5da-dade3c8032e4","block_type":"box","text":"II-93","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0610087a-60db-49f5-9eb8-467c4bcf00e0","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":130,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7eebdbf1-0969-4d0e-aaa2-cb19f770f46b","block_type":"box","text":"It is also possible that, from time to time, BlackRock and/or its advisory clients (including other funds and","page_number":131,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"68cb070e-9be4-4286-9bb9-ddd7c27540e6","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":131,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"dcce0231-b521-499f-9fa4-d76ca3dc48aa","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":131,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"0b08f82f-6f7f-45ce-bf57-94daa631c7ad","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":131,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"8a25b4b4-6246-4afc-981f-203d2e27601b","block_type":"box","text":"applicable law, to redeem at any time some or all of the shares of a Fund acquired for its own accounts. A large","page_number":131,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"ef9ed1f1-3750-460c-9385-eccf11c4e15c","block_type":"box","text":"redemption of shares of a Fund by BlackRock could significantly reduce the asset size of the Fund, which might have","page_number":131,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"4829dc87-8f48-42b6-8e61-af17e29ba6dd","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":131,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"014d40da-5989-4249-b502-ad99a93df3cd","block_type":"box","text":"consider the effect of redemptions on a Fund and other shareholders in deciding whether to redeem its shares but is","page_number":131,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"82cf22ba-b306-4bd7-9321-7052294e86bf","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":131,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"6203833d-40ad-4c7f-b4bb-51f3ffdefb0b","block_type":"box","text":"It is possible that a Fund may invest in securities of, or engage in transactions with, companies in which","page_number":131,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"6608414a-4609-4cbf-ab73-25e866c55ece","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":131,"box":{"x":70,"y":203,"width":838,"height":12}},{"id":"e505cc26-45b1-4f3b-ab9d-68c3dc898f41","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":131,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"9f8a0e97-7e98-4de0-983a-574f3acdd907","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":131,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"22eb7ae4-61d7-4a5a-941e-cb871541e634","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":131,"box":{"x":69,"y":249,"width":806,"height":11}},{"id":"cb6001f4-ed38-4bdd-90a1-89eb33f533e2","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":131,"box":{"x":68,"y":264,"width":822,"height":11}},{"id":"be03eb84-7d39-4dfb-8e67-ebfde352d121","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":131,"box":{"x":69,"y":279,"width":766,"height":11}},{"id":"695e0122-1fa4-4bb8-bfc4-199fb3811b61","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":131,"box":{"x":70,"y":294,"width":533,"height":9}},{"id":"f3f1b843-43dd-475a-8f64-9c626f22156b","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":131,"box":{"x":102,"y":317,"width":789,"height":11}},{"id":"72819298-8ac2-4259-896e-ee6809e9669a","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":131,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"846b1ae8-ea0b-469e-96e1-d29b3a7764ce","block_type":"box","text":"sales of the Funds or other products may be greater than remuneration and profitability relating to services to and","page_number":131,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"cc71da87-e12f-4468-83b7-a01badc9ee0c","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":131,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"73d77252-ab1a-49e8-92ee-c7c03e47a267","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":131,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"bf09175e-a46b-49da-b7af-c7f34141b994","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":131,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"6f466b4b-bb65-4492-a674-44e4bdd9f542","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":131,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"a6f29ff5-69c6-4aa5-a930-9d70ee8eed5f","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":131,"box":{"x":69,"y":423,"width":801,"height":11}},{"id":"3214cf3a-37db-4c7f-b6af-ef1112141e41","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":131,"box":{"x":70,"y":438,"width":711,"height":11}},{"id":"9b5b0264-7139-4c9a-ae52-7a8209858331","block_type":"box","text":"BlackRock may provide valuation assistance to cer tain clients with respect to cer tain securities or other","page_number":131,"box":{"x":102,"y":461,"width":741,"height":11}},{"id":"c5a4c02e-6bd6-44bc-af88-009843cb1216","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":131,"box":{"x":70,"y":475,"width":823,"height":12}},{"id":"69e685f3-8696-43f5-9bf2-4a0857b30314","block_type":"box","text":"the same securities or investments assigned by a Fund’s pricing vendors, especially if such valuations are based on","page_number":131,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"adde5d0a-37f5-44f1-913a-d02d2178b2fa","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":131,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"5712be78-39e1-4f93-b5ac-080558a0c9b0","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":131,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"64d2044a-102e-4674-b417-e231ebc30471","block_type":"box","text":"may be instances where the Fund’s pricing vendors or fund accountants assign a different valuation to a security or","page_number":131,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"993cd2ab-3252-4f1f-809d-dcacc5a86c1b","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":131,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"1ef46577-333f-47c9-bca1-2794b9491b61","block_type":"box","text":"As disclosed in more detail in “Pricing of Shares—Determination of Net Asset Value” in this SAI, when market","page_number":131,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"32473857-0eaf-4a23-88fc-a04d8e2764b3","block_type":"box","text":"quotations are not readily available or are believed by BlackRock to be unreliable, a Fund’s investments are valued at","page_number":131,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"f5f5624b-9bf1-4dd7-9d21-52bc9b7721ed","block_type":"box","text":"fair value by BlackRock. BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":131,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"3c1d70ce-0d1a-4b28-9546-0aab63f61c1e","block_type":"box","text":"under the Investment Company Act and acts through BlackRock’s Rule 2a-5 Committee (the “2a-5 Committee”), with","page_number":131,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"a2233480-205c-4711-aff4-3c52ccdf9673","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":131,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"0b0cb123-1be5-43be-8663-b53baa909bee","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":131,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"bfa5601f-4da9-423c-a98f-6999d5c516d2","block_type":"box","text":"price that a Fund might reasonably expect to receive from the current sale of that asset or liability in an arm’s-length","page_number":131,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"1eafd5a8-a917-411c-9b06-39d08a4de416","block_type":"box","text":"transaction. The price generally may not be determined based on what a Fund might reasonably expect to receive for","page_number":131,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"457af009-52bf-4571-a26f-d40df5ecec36","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. While fair value determinations","page_number":131,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"a48ee548-6857-4516-9a62-3d73e20e3924","block_type":"box","text":"will be based upon all available factors that BlackRock deems relevant at the time of the determination, and may be","page_number":131,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"93eff167-238a-4ced-9c03-de87c038f34c","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third par ty valuation models, fair value","page_number":131,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"3b0bbe9b-11c0-4b48-b895-687cc148b5f9","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":132,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"20b6ae98-8b80-44cc-be1e-870066bc205a","block_type":"box","text":"BlackRock each have adopted a Code of Ethics in compliance with Section 17(j) of the Investment Company Act that","page_number":132,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"b0db7cb4-97d6-40e9-95fa-9354077f42e4","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":132,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"df0716f0-846d-4c49-b77d-68afe0d8be8b","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":132,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"d527170b-3a17-47cb-b00e-e6eb2e66d3c7","block_type":"box","text":"EDGAR Database on the Commission’s Internet site at http://www.sec.gov, and copies may be obtained, after paying","page_number":132,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"0b44d36e-d6e6-43ed-a5e4-3588c33893e1","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":132,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"890d4b33-c5ac-4cac-b3da-9fb8494fcfec","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":132,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"31d827ed-1edd-439a-b6fa-821719686325","block_type":"box","text":"except that the Fund may in accordance with rules or guidance adopted under the Investment Company Act engage in","page_number":132,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"479c9731-4f38-4609-9168-645390e9531a","block_type":"box","text":"transactions with another Fund or accounts that are affiliated with the Fund as a result of common officers, directors,","page_number":132,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"29a173ab-3758-4af3-9d17-6b0015d0a5f0","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":132,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"c7717c6c-c9b9-4e16-aa19-982200e54fcb","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":132,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"f4424aba-6fdd-4dff-a23f-46ec5cbc87d1","block_type":"box","text":"for the Fund to purchase and another client of BlackRock to sell, or the Fund to sell and another client of BlackRock","page_number":132,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"3e6a50bf-55fe-41fd-a439-b883bf27e2aa","block_type":"box","text":"to purchase, the same security or instrument on the same day. 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There may be periods when BlackRock may not","page_number":132,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"5d2f6056-0e23-4cac-8a6c-7ad6cbd89dc6","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":132,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"4c12b1d6-9b7f-4b74-a79d-c1c7e26b06a7","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":132,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"555ba4ff-a386-4e0c-81a5-cb0f63e1bfec","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":132,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"15a24e58-cbbb-46d2-8f36-39f6423ed893","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":132,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"b53d2061-6626-4858-8968-2a51b2d6d8b5","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":132,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"0277b167-0877-430a-8a4a-ef21a0e095d1","block_type":"box","text":"public information about the company (","page_number":132,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"c1db72c4-1a95-4f6e-ba91-9e006d2bf31a","block_type":"box","text":"e.g.","page_number":132,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"e37e5d7b-a32f-4d52-9c4e-a758d1d94a3c","block_type":"box","text":", in connection with par ticipation in a creditors’ committee). Moreover,","page_number":132,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"616d1231-4097-408f-9f57-9966611f707a","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":132,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"00b3b2a5-f1c2-4fdc-b489-fdaef903dd51","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":132,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"cf17dddb-c13b-4c08-9948-05f87b1aed06","block_type":"box","text":"of a Fund, including where BlackRock and/or clients advised by BlackRock already have an interest in such issuer or","page_number":132,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"8df8ee9c-5ff3-4c63-938c-194174c9e49a","block_type":"box","text":"the investment. 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Cer tain por tfolio management teams within BlackRock may","page_number":132,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"e08b8b5f-e2e9-4fbd-84f8-eb492a474986","block_type":"box","text":"make decisions or take (or refrain from taking) actions with respect to clients they advise in a manner different than","page_number":132,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"93987fa7-9c61-4484-9560-8a27b6642798","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":132,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"8f0fc71c-ea2f-4679-8ab4-72ab6e24eba0","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":132,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"531c7d1b-ebe9-431e-bb11-911663058469","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":132,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"261ea518-177b-4656-b03a-40c6384d0027","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":132,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"dac8881f-fd41-461d-91e6-82011ab195e8","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":132,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"ed41606e-26d4-4293-88c7-9f45c29e3950","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":132,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"7c96f2fa-5453-446a-8515-943327f644a5","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":132,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"8ef18ef9-ff45-4e29-bfd5-955d9a33006b","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":132,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"7d630510-bdb0-4c4f-8133-122fddebef01","block_type":"box","text":"senior personnel, in other units of BlackRock, and generally will not manage the Funds with the benefit of information","page_number":132,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"7d3831f3-c89b-42e5-9467-d89fb7a8c64a","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":132,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"0769513d-adec-4d57-8890-1cb661220a1c","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":132,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"ed3888a8-4d9b-4d4a-885b-66afdafb7bb6","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":132,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"6084e667-836a-4b6c-b83d-004fcc32d432","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":132,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"174ac5d6-4550-4244-b666-4d4025008b23","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":132,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"b8c6f4cd-8b64-411e-9a3e-808a3ac069fd","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":132,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"453dbcc3-6511-4a59-8bca-f9f1c749da1e","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":132,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"e861cb72-7473-4da6-86f7-0f1291e664d3","block_type":"box","text":"II-95","page_number":132,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ccc30c15-0d87-47ec-a713-06d4913b1835","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":132,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"66ab7ac1-4d5a-4ec2-a96d-3622a6479770","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":133,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"5a134132-1ac1-4479-93db-f8b3da5a2276","block_type":"box","text":"purchased or sold for a client in the absence of a change to an information barrier). Information barriers may not","page_number":133,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"ebd8f332-16f1-454b-b04a-120f3e49c194","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":133,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"c1d468e8-be89-491a-81bf-136f4791510e","block_type":"box","text":"and actions by personnel on one side of a barrier may impact the potential actions of personnel on the other side of","page_number":133,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"7e29dbde-670e-44af-9f86-6b56647c0c6a","block_type":"box","text":"a barrier.","page_number":133,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"186e9409-40cc-4bd0-84f2-e30ccb7e43c9","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":133,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"f74c315e-96a6-439d-a30c-ed0067375558","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":133,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"2f17be07-21d5-4d40-9acf-8d0b151a5cf1","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":133,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"0b3d0454-8b62-4678-abba-5cc08f5e2920","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":133,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"c2c0eefb-ee0c-4069-bab3-6f60dee95a92","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":133,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"35c6f207-8b3c-4c69-90c5-e8a7f7d7a54e","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":133,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"727215b9-52a5-44ba-92ec-55da265faac7","block_type":"box","text":"that operate in cer tain industries (","page_number":133,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"9b9505c4-6d87-4c76-8302-252e6cb6c492","block_type":"box","text":"e.g.","page_number":133,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"3aff778c-2149-4cf4-9140-78f9acfcd652","block_type":"box","text":", banking, insurance, and utilities) or in cer tain emerging or international","page_number":133,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"f1f303f5-387a-4d83-8fed-e7fa6f5a4792","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":133,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"ced43b1c-5384-44fd-a6f3-8752c93aee28","block_type":"box","text":"e.g.","page_number":133,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"329038a3-c2f4-4e53-92ef-338b8ee2ac64","block_type":"box","text":", with mechanisms such as poison pills","page_number":133,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"9949e33b-2d0f-49c0-9336-4268e68bb5e9","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":133,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"4fd8b204-1253-4fd3-9fcb-877a90bbc1b6","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":133,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"cf03d890-51d1-43ec-b04e-9d995b72ed3e","block_type":"box","text":"not be exceeded without the grant of a license or other regulatory or corporate approval, order, consent, relief, waiver","page_number":133,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"7961198c-1e62-456f-a924-15adb0e017c8","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":133,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"bf327d06-4c29-4b61-8d9c-2100ee703d65","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":133,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"2e58dd6f-8757-4141-8c7e-08e45e02c59e","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":133,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"8780ccef-42f9-4500-b766-b62a698aaaa4","block_type":"box","text":"seek to make indirect investments (","page_number":133,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"ed692133-ff20-4a79-b012-2cc647ad2a53","block_type":"box","text":"e.g.","page_number":133,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"d0ae04f6-882b-4ae4-bb09-44cb01278fa6","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":133,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"49ff486d-9316-480d-8454-88cec3df546e","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":133,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"ad31bcc8-8c51-4ccd-88e9-e09dca716d3c","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":133,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"d4319efd-80a7-4ee7-a664-18297cf85e80","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":133,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"49f38e17-8cc3-46ab-9fea-541f2914bb7d","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":133,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"153c65c8-da13-46ea-9257-40edebe822af","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":133,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"2d79fc26-f59d-4dea-a4e3-3dd0a58f0670","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":133,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"f8aa062c-b757-403f-be79-2cc69d8006d8","block_type":"box","text":"If cer tain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":133,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"f7b30369-7b65-4a77-8a79-a39df3cad646","block_type":"box","text":"client or as a result of corporate actions by the issuer, the ability of BlackRock on behalf of clients to purchase or","page_number":133,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"dfd5e8ee-2ecf-41cc-9355-55608b38c30e","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":133,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"92377cbb-55de-48d2-aec1-f11de4b18809","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":133,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"a79b0185-3ff1-4441-9135-fcad9f1b5340","block_type":"box","text":"an ownership limitation or restriction, a client may be unable to purchase or directly hold a security the client would","page_number":133,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"2f9f6919-9a45-4695-80b0-c976472401f2","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":133,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"4c0d47c3-9346-43d9-afff-68f1e8a91826","block_type":"box","text":"instead of the specific client being restricted. For index funds, this means a fund may not be able to track its index as","page_number":133,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"15230932-5959-4b16-9ea2-0774f8516b1e","block_type":"box","text":"closely as it would if it was not subject to an ownership limitation or restriction because the fund cannot acquire the","page_number":133,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"6306e1d7-c228-4c3e-a835-14e35767a634","block_type":"box","text":"amount of the impacted security included in its index. BlackRock on behalf of its clients may limit purchases, sell","page_number":133,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"74c94f6e-960b-46eb-8e66-1bdf01db5ca5","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":133,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"81185a4c-707c-4880-b339-aa487aafbb4d","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":133,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"f235a9ea-1d97-4ebf-a10f-cbd33cbb1a24","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":133,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"229a0c67-ad0e-4b47-9cb5-f45ba0527173","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":133,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"1fca703a-734a-4986-8b85-e6bfdfc3ad8c","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":133,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"6255bc99-88db-4c5f-9367-28607189e46b","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":133,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"771343b0-f983-412b-b922-090dc98fd56b","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":133,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"8b1f899b-1ec2-4e3a-8bae-8805bb451ed7","block_type":"box","text":"permission will be granted, or that, once granted, it will not be modified or revoked at a later date with minimal or no","page_number":133,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"da168c85-5c82-4735-a81d-c8e8c1b1f7f8","block_type":"box","text":"notice. The issuer and/or regulator may also require that BlackRock on behalf of itself and its clients take or refrain","page_number":133,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"9e053dce-fd5b-4d2b-b530-b3c9ec805a2d","block_type":"box","text":"from taking cer tain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":133,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"63970d37-81e5-45e4-ba76-ff1c4f8a4fdd","block_type":"box","text":"may accept if it believes the benefits outweigh the costs and may limit BlackRock from taking actions that it","page_number":133,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"82fa518c-dd9c-4a00-b875-892f0b9536f8","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":133,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"825ce09b-c435-4005-a03a-4f9b5ddd3de8","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":133,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"e3840fdf-c2b6-4913-bb55-939a96ed946c","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":133,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"dfed7892-d242-4c17-84a1-a538444a3c0f","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":133,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"01853636-61e6-4623-8ef8-7527feaac078","block_type":"box","text":"cer tain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":133,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"3c189d1b-18e8-4363-a895-322ff8496005","block_type":"box","text":"respect to ETFs, remove such securities from the list of Deposit Securities to be delivered to the Fund in connection","page_number":133,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"3441c82c-0f1c-4bd8-a5eb-c8c447d9e8f2","block_type":"box","text":"with purchases of Creation Units of such Fund. If client holdings of an issuer exceed an applicable threshold and","page_number":133,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"68a988f8-02c4-4c0b-b626-ba93b7716952","block_type":"box","text":"BlackRock is unable to obtain relief to enable the continued holding of such investments, it may be necessary to","page_number":133,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"1665afa9-f1a4-4001-b2c7-a10288037b3f","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":133,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"bf9ffa27-8495-4e3c-9836-2a962fd42742","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":133,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"37e6df13-65ba-4d77-aaa2-24bce56c421d","block_type":"box","text":"II-96","page_number":133,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7ad268aa-c933-4d4c-b554-cd8882bfb8d9","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":133,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7fbab673-b864-47b1-ab80-3ed93b9630eb","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":134,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"5927b5dc-e9ca-43ca-a6a6-5db798287e60","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":134,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"dd47fbee-473c-4f38-887b-551043df8a67","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":134,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"f6615a78-3173-4056-9bdb-6b91d8e08701","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":134,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"de037a57-51dc-4a2f-a3c6-a9f24dc625d1","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":134,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"201bb324-5fe4-47a6-b8e0-c436054233f0","block_type":"box","text":"strategy with respect to such security or asset.","page_number":134,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"e10706ea-dea0-440a-a370-c93c699283ca","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":134,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"fcfe424f-dd22-432e-842d-f479965dc772","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":134,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"c39f921e-2c07-4abd-ac30-22d7be83a956","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":134,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"06d95be6-51da-4524-8cc9-ed3db351d154","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":134,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"c7c89a05-a692-48d3-bd27-f36bfab078e9","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":134,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"2f0e5684-41fb-4d78-af8c-7924e4e61788","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":134,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"a27512fd-540e-4abd-84a8-58b975cd6b18","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":134,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"cd08dc26-29b1-4e67-88b2-ffdf36ba4def","block_type":"box","text":"indices. BlackRock is not obligated to license its indices to a Fund and the Funds are under no obligation to use","page_number":134,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"b7953c13-25ec-4dad-afa6-782ebd4bd95a","block_type":"box","text":"BlackRock indices. Any Fund that enters into a license for a BlackRock index cannot be assured that the terms of any","page_number":134,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"e664eed3-53fb-42ff-b3c3-c74d72cbcd30","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":134,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"6d14b586-7ae3-47b9-89b2-b045bb11da15","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (","page_number":134,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"afb629db-f978-409d-bb9b-1bd896fbbd29","block_type":"box","text":"e.g.","page_number":134,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"d89f1e1f-b1b5-49b8-9562-66583cbf14e5","block_type":"box","text":", custodians,","page_number":134,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"25f6ce38-f593-49fe-8569-5ce69a8bbaeb","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":134,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"c2b4dfd5-3a26-4a7e-9432-c51f40cfd2dd","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":134,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"b62e4763-3a92-4e18-a143-4742bdf9ad5f","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":134,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"02cb2874-7177-4598-87c2-ee6bdaa4ecfd","block_type":"box","text":"provider’s services are terminated with respect to a Fund. To the extent that BlackRock is responsible for paying","page_number":134,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"e7d433b8-ffd1-406b-a117-ff9b2ecef760","block_type":"box","text":"service providers out of its fees that it receives from the Funds, the benefits of lower fees, including any fee","page_number":134,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"dfa19d75-3f7d-4b9d-bb04-c619a749be30","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":134,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"364ca8b8-ef8e-4662-8e7b-281244f1cb31","block_type":"box","text":"in conflicts of interest relating to the use or termination of service providers to a Fund. In addition, conflicts of","page_number":134,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"57b591c7-3d4d-4e9e-809e-82b0a4962b8f","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":134,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"b4bf19f7-8ea9-418f-b88e-e76a4aaa1d15","block_type":"box","text":"selection of such providers, par ticularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":134,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"ea1c5077-e79f-4bb6-aced-cd4eb5302ef2","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":134,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"34be28bc-1741-4962-8eb5-0e78fef6de7f","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":134,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"b31e96d4-a6a9-478a-a922-f747e2c1b2ab","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":134,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"804ed2f0-f9f4-4be1-8b3b-6c248ee7500e","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":134,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"b55b86b0-1963-45db-9559-d41da84e3336","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":134,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"f592e1d5-fc0e-4f21-a8b6-93eb957ec1ed","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":134,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"c5b8c8f3-7f60-412c-9127-ad0394d63d16","block_type":"box","text":"information systems used by Fund service providers. These systems are, or will be, used by a Fund service provider","page_number":134,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"4ffe52f3-92d7-4eee-8bd7-aa515634045b","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":134,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"4011abb0-71b3-4a3b-a0cd-6b0f0be7a100","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":134,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"91270047-7086-4682-a06f-7a27ace8d0b2","block_type":"box","text":"provider remunerates BlackRock for the use of the systems. A Fund service provider’s payments to BlackRock for the","page_number":134,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"6894a78f-0ed6-4564-852f-2c2f9b46d915","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":134,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"52e16377-dc23-4d32-b1dd-f8d0806e6f74","block_type":"box","text":"BlackRock’s receipt of fees from a service provider in connection with the use of systems provided by BlackRock","page_number":134,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"c30e01ca-92ec-4567-ba33-98e6429f3f63","block_type":"box","text":"may create an incentive for BlackRock to recommend that a Fund enter into or renew an arrangement with the service","page_number":134,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"cddd8391-8f90-47f5-a84a-56d757d8530c","block_type":"box","text":"provider.","page_number":134,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"cbd9dae9-b94c-4b49-8400-ee2c55fdd0cd","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":134,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"d38d4957-f84d-488c-b4dd-0735e9ff018c","block_type":"box","text":"arrangements for cer tain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":134,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"f845715c-f5dd-4d72-aabe-8877cbfb78a9","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":134,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"1cbf4db6-d794-4613-b375-4cbb34e8d136","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":134,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"e090ccf9-6505-4cf7-9857-0594d7c7d674","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":134,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"c9e3c9a8-4e2f-4f48-af73-0cdfa8e9974f","block_type":"box","text":"PURCHASE OF SHARES","page_number":134,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"a028976d-cceb-4459-8989-65211474686d","block_type":"box","text":"Most BlackRock-advised open-end funds offer multiple classes of shares under a plan adopted under Rule 18f-3","page_number":134,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"65d6b809-4b93-4ae7-98e7-59713c7f1971","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":134,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"e281e592-b351-4ff5-8ac3-3773129917f7","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":134,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"42ae51a1-4839-4887-8a7f-7449293ba542","block_type":"box","text":"generally not subject to an initial sales charge, and Investor C Shares are sold to investors choosing the deferred","page_number":134,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"78f7acc9-ed13-4988-a606-a32cee727d56","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":134,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"6f5b6a34-c32f-4ce9-bf45-0e8fcbe053c3","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":134,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"76f7b248-f4dd-4d92-911b-7343746d91bd","block_type":"box","text":"II-97","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d51cce59-a229-46d8-99f6-f5d82864dd9b","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":134,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"41cb180b-63cd-4291-ad88-207689763952","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":135,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"bce95431-f11a-4aef-88a8-9bd15c0a0b35","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":135,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"5d941067-e498-4a85-89ea-3b185be6bee1","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":135,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"aa7d07ab-95e2-4f7d-8c61-554afe778f81","block_type":"box","text":"platforms, which are platforms where clients invest in the Fund through a single omnibus account in the name of a","page_number":135,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"60d9edcd-bd26-4e06-a323-47426fe9403e","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":135,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"c021d224-960c-478f-b357-0065258c5d9c","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":135,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"1bebc40f-a7d5-4eba-baf5-b9e65e77c887","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":135,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"bff1ad42-e868-4a18-ac58-e71411cbf025","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":135,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"8f46cf7a-91e1-4084-8fac-c47c03f0be41","block_type":"box","text":"The applicable offering price for purchase orders is based on the NAV of a Fund next determined after receipt of","page_number":135,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"ef3d4cc2-526b-457e-b2a5-eb9febe83600","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":135,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"b15547a5-b510-4bf7-9a30-1587a1eb8474","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":135,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"19c44d19-92f5-4241-867a-a2d7e1b2dede","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":135,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"b704baf2-7e1f-4ac7-82ef-87945a444b2b","block_type":"box","text":"offering price of each affiliated underlying fund is based on the NAV of such affiliated underlying fund next determined","page_number":135,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"e9ade952-8f44-4a50-a18f-8ef4205ea850","block_type":"box","text":"after a purchase order is received, or deemed to be received upon receipt by a Selling Dealer, by the BlackRock","page_number":135,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"0d01215a-4ad0-44da-b496-f9c8ff16e56b","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":135,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"a0a30f9e-e4de-42c4-8d34-a54d64be4986","block_type":"box","text":"orders received by Selling Dealers or BlackRock Target Date Funds prior to the close of business on the New York","page_number":135,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"0dd9e85c-5c43-4b22-8942-64671985e4ad","block_type":"box","text":"Stock Exchange (“NYSE”) (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the order is placed,","page_number":135,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"6344cbfd-12d1-48ab-8238-4ea7199df2f0","block_type":"box","text":"including orders received after the close of business on the previous day, the applicable offering price is based on","page_number":135,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"50545b6d-52f7-4bd7-bcd5-f5a21a3b6f1b","block_type":"box","text":"the NAV determined as of the close of business on the NYSE on that day. If the purchase orders are not received by","page_number":135,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"74327f59-48c8-4da5-8810-5acd4194cb5e","block_type":"box","text":"the Selling Dealer or a BlackRock Target Date Fund before the close of business on the NYSE, such orders are","page_number":135,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"bdf242df-9f33-4206-a2e6-f8082432ed44","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":135,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"38877270-ab07-4136-b9e7-d78353004506","block_type":"box","text":"payment on a timely basis. Generally, if payment is not received within the period described in the Prospectuses, the","page_number":135,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"051fce1b-90f5-40c4-8be7-7cdd008a3d26","block_type":"box","text":"order will be canceled, notice thereof will be given, and the broker and its customers will be responsible for any loss","page_number":135,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"c10b661c-d92a-4d9c-9916-52ebf8dbe19b","block_type":"box","text":"to the Fund or its shareholders. Orders of less than $500 may be mailed by a broker to the Transfer Agent.","page_number":135,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"026bedb1-3eb1-46e5-9039-139cfcae3c44","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":135,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"b8a7ae97-4d6e-4c22-b7e1-0a55dc426466","block_type":"box","text":"minimum initial investment for employees of a Fund, a Fund’s Manager, Sub-Advisers or BRIL or employees of their","page_number":135,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"2f64d38d-ede0-430b-9f6d-6637e5b5f930","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":135,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"21ab02c1-ba18-44f7-90e2-cb8a2f0ea649","block_type":"box","text":"investment is $25.","page_number":135,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"0ee30466-3a92-4414-9d2e-f1308222e9bf","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":135,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"97229161-9389-4e7b-857e-1955cb174464","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":135,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"f21014f2-a7ed-496d-bf98-5c56047bf32f","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":135,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"a51fce05-876a-49fc-87db-807c810aeafa","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":135,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"c0f52946-dd82-4d4c-9fc9-75d332b281f2","block_type":"box","text":"subsequent investment requirements and suspend and resume the sale of any share class of any Fund at any time.","page_number":135,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"3579ae10-4bc1-4e20-b75a-52c1869c4af6","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":135,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"add928a0-162c-4468-aa25-5f797515e6df","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":135,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"37030d50-ec89-4a5a-9a21-0c64df0f97cd","block_type":"box","text":"class of shares of the same Fund, provided that the exchanged shares are not subject to a contingent deferred sales","page_number":135,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"ea8459eb-9745-4e3a-bc47-d77b1ab5feac","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":135,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"f92774ea-4edd-4c92-a705-bf5f9f89f4ec","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":135,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"2a7e81d3-1793-45ef-a859-cbc7923d55cc","block_type":"box","text":"Each Fund or the Distributor may suspend the continuous offering of the Fund’s shares of any class at any time","page_number":135,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"8dfb30b1-85d2-46eb-b204-8d30e0c13fe2","block_type":"box","text":"in response to conditions in the securities markets or otherwise and may resume offering the shares from time to","page_number":135,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"5e5e2b4c-e50b-4c57-bd91-f68f4ef6bc9e","block_type":"box","text":"time. Any order may be rejected by a Fund or the Distributor. Neither the Distributor, the securities dealers nor other","page_number":135,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"a8ad448b-4a4e-433f-a0f1-05fd2385bd9c","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":135,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"cdfa3213-23a0-47f2-a681-f848c69ce5d4","block_type":"box","text":"The term “purchase,” as used in the Prospectus and this SAI, refers to (i) a single purchase by an individual,","page_number":135,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"24a9fb13-2142-4389-adaf-b82f22641e6d","block_type":"box","text":"(ii) concurrent purchases by an individual, his or her spouse and their children purchasing shares for his, her or their","page_number":135,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"d5583e87-33d7-44eb-a9bf-f98c62128759","block_type":"box","text":"own account, and (iii) single purchases by a trustee or other fiduciary purchasing shares for a single trust estate or","page_number":135,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"60b8dcc7-5994-4b50-8f1b-8d2caa675865","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":135,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"b2e53c55-afdf-400a-8e44-4528af1f9ab4","block_type":"box","text":"purchases by any “company,” as that term is defined in the Investment Company Act, but does not include purchases","page_number":135,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"763a9b9e-ffce-4593-81ed-853e0b279487","block_type":"box","text":"by (i) any company that has not been in existence for at least six months, (ii) a company that has no purpose other","page_number":135,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"b6e0c3ba-b351-4203-809d-e27df9b9e43d","block_type":"box","text":"than the purchase of shares of a Fund or shares of other registered investment companies at a discount, or (iii) any","page_number":135,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"74e1841f-8f9d-4f12-afc8-23e8b0af1692","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":135,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"5a64d5f1-c004-4d0a-b1c3-e3465c44e004","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":135,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"694c38f9-f609-4a7c-9979-62011cc33f2c","block_type":"box","text":"adviser.","page_number":135,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"14ff0692-4563-4047-8955-a53f02a4f95a","block_type":"box","text":"With cer tain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":135,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"8e7d8bec-6da0-4d9e-9046-265391373631","block_type":"box","text":"and may not be distributed by a foreign financial intermediary. Under this policy, in order to accept new accounts or","page_number":135,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"75d03468-a0b3-4006-b7c5-6bd29e148bef","block_type":"box","text":"II-98","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8f9e2e8e-4c09-4198-b0a0-d5d18c243530","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"38c984a0-61e6-4811-a098-b0fe156a82e7","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":136,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"636ce91e-b730-4ef2-9bd9-3381905f6650","block_type":"box","text":"requires that (i) a shareholder that is a natural person be a U.S. citizen or resident alien, in each case residing within","page_number":136,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"8260f907-d237-484a-bea4-21944f6a12e8","block_type":"box","text":"the United States or a U.S. territory (including APO/FPO/DPO addresses), and have a valid U.S. taxpayer","page_number":136,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"3a298a01-cf2b-450d-a907-dc71b0d84367","block_type":"box","text":"identification number, and (ii) a financial intermediary or a shareholder that is an entity be domiciled in the United","page_number":136,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"95432eab-110d-414a-a7d7-25b42189a134","block_type":"box","text":"States and have a valid U.S. taxpayer identification number or be domiciled in a U.S. territory and have a valid U.S.","page_number":136,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"f3bd53d0-a9f0-4579-b72f-9609ae4b8960","block_type":"box","text":"taxpayer identification number or IRS Form W-8. Any existing account that is updated to reflect a non-U.S. address will","page_number":136,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"601f4ab2-9d40-4227-a2f0-39ff400afb27","block_type":"box","text":"also be restricted from making additional investments.","page_number":136,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"11066054-1b3e-4929-a310-e9e57bcc3dc9","block_type":"box","text":"In-Kind Purchases","page_number":136,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"3fdc6bfc-79ff-4005-90e2-394267971396","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":136,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"5431064a-2046-4838-bc9c-f55afb78180c","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":136,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"0ba09754-c978-4a4f-9126-54b635dacc41","block_type":"box","text":"limitations of the Fund as described herein. In connection with an in-kind securities payment, the Fund may require,","page_number":136,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"84b11f5e-fb95-4613-95c5-54209e3e9201","block_type":"box","text":"among other things, that the securities: (i) be valued on the day of purchase in accordance with the pricing methods","page_number":136,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"fd846000-b8d0-4c08-9ebb-aea9b65fb4ad","block_type":"box","text":"used by the Fund; (ii) be accompanied by satisfactory assurance that the Fund will have good and marketable title to","page_number":136,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"6e994a96-fcd2-47fd-b455-d1a01bd5ca02","block_type":"box","text":"such securities; (iii) not be subject to any restrictions upon resale by the Fund; (iv) be in proper form for transfer to","page_number":136,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"a40939ea-840c-4c75-9538-fdc299699b32","block_type":"box","text":"the Fund; and (v) be accompanied by adequate information concerning the basis and other tax matters relating to the","page_number":136,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"d688bb34-cb3e-4309-933f-7fbb8bb62196","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":136,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"14cf761a-cb76-498b-b117-f876027c7449","block_type":"box","text":"of the Fund engaged in the in-kind purchase transaction and must be delivered to the Fund by the investor upon","page_number":136,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"594090d7-da3b-4298-84a5-8d38c617e529","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":136,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"870f86df-79fe-42d0-841c-2f7b59eacc02","block_type":"box","text":"has settled.","page_number":136,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"f6d6379f-9368-42ca-8589-3a26cdefe2ed","block_type":"box","text":"Institutional Shares","page_number":136,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"c8184c30-2473-4e0f-be0b-e2b4752ef9bf","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":136,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"f238f3a5-29df-40ca-a8ca-1adc36956cb4","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":136,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"d3746672-1c10-46b2-8593-4eeeb565575f","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":136,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"071f359a-a746-4d86-b4df-9755b2a5483a","block_type":"box","text":"Investor A, Investor A1, Investor C, Investor P, Class R or Service Shares. A Fund may in its discretion waive or modify","page_number":136,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"2b59e235-1b5e-4e33-8f12-71d5ab6e221c","block_type":"box","text":"any minimum investment amount, may reject any order for any class of shares and may suspend and resume the","page_number":136,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"91a80618-e21e-43d8-a100-2ae26e1415af","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":136,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"9b6f1294-b0cb-4991-acaa-42e0b50d7651","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":136,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"ba3b0b57-ab9b-4c03-baad-1bb3e2ca92c8","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":136,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"4452460c-8327-4dd7-b251-f945798f084d","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":136,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"8bdeea0c-1381-451f-ae1a-8b98077a17ff","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":136,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"70af0416-1385-47ef-ab5a-8e1690c3c573","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":136,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"26c0e050-7cd0-4ab9-8bea-9a42959aa666","block_type":"box","text":"redemption of Fund shares. Each broker-dealer or agent is responsible for transmitting to its customers a schedule of","page_number":136,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"12257245-6b7f-47f9-b7d2-a4d18e4d69bb","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":136,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"06f1665a-6f16-41e2-89f6-3518f19741d9","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":136,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"778a628f-3b4e-48bf-bbfb-98c77f9cd482","block_type":"box","text":"these fees and conditions.","page_number":136,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"6291974a-1fc9-471e-89a1-6b220bc959ca","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":136,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"fc3a3890-cf3e-4ec0-997d-ee0c905912d6","block_type":"box","text":"4 p.m. (Eastern time) on the first business day following receipt of the order. Payment may also, in the discretion of","page_number":136,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"370a7fc2-2d40-4165-8ae7-9480dc0511ea","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":136,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"30ca9147-a4d6-48ec-a10e-4261e4c15342","block_type":"box","text":"purchase order is not received by the prescribed time, an investor may be liable for any resulting losses or expenses","page_number":136,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"446532e2-dd8e-49e1-a703-96a66d647ff8","block_type":"box","text":"incurred by the Fund.","page_number":136,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"e8f15ea5-8301-4f01-829f-246e09b20665","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":136,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"caa93f13-94ba-43a4-99f2-ed6a921b367e","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":136,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"22ca8e7e-4abe-4040-a80b-91e890f71758","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":136,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"d5e16815-8fc4-48cc-88bd-6652078466de","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":136,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"f31909a3-3ec3-4e26-bf56-8c5503597b89","block_type":"box","text":"investment of $2 million who may purchase shares of a Fund through a financial intermediary that has entered into","page_number":136,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"0257ab8b-35fd-40a2-9707-4c32a5d62879","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":136,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"995fa836-e169-416a-9ccb-baf87ea717c8","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":136,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"bdc2c529-6303-4970-8bcc-3fd0fc32b107","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":136,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"68c04acf-cb33-4ddb-982f-ee3adbc031f9","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":136,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"2fe4b07e-b099-4ec7-92b6-6c6b80f03966","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":136,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"17701d8c-187e-4090-b116-0bc1f9a3534f","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":136,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"3f324284-84e4-44af-bbf7-3fb3e8c3139e","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":136,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"f8659489-09ca-407f-b63c-c8f975827b1d","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":136,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"93cde0d4-e97e-4029-895c-07a559d33cc8","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":136,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"4ae9c26c-40a6-4043-9b47-b72cfade7cbd","block_type":"box","text":"(i) charge such clients a fee for advisory, investment consulting, or similar services or (ii) have entered into an","page_number":136,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"302e01a3-a12e-48da-a276-0f09beb9d4f4","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":136,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"ef6685c0-6146-490b-84fb-ccf8a992c64f","block_type":"box","text":"II-99","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"08789e52-95af-4ce4-84d4-ac8e509ab959","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"99218a0d-ecd0-478a-9f45-f806fcf6c0ac","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":137,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"d2baae7b-1b0b-4405-bb99-6898c05ab6aa","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":137,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"b2eacef5-53d6-4b9b-9eae-6e3db50ecb6d","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":137,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"71536cdc-3379-4b2d-a0ef-35c2ae1dbfd6","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":137,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"3d077298-42aa-4528-a9fc-84a77f490eff","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":137,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"1b658231-d25d-462c-a6af-063973d55204","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":137,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"db6759ce-f98f-4413-ad60-4fb2b1d83aaa","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":137,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"533a11b0-efaa-4016-8860-e975752a7bfb","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":137,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"6c0741ec-99fb-42fd-98e4-f6b427fe4633","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":137,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"f0205e6a-6f29-4f9e-9d57-e34304f82620","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":137,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"4b1cff10-eb0b-44a2-9ee0-b769ebdaeba1","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":137,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"352b4141-c9e4-44e2-9df4-b51db9a7c49d","block_type":"box","text":"Funds, BofA Corp. or their respective affiliates; and any trust, pension, profit-sharing or other benefit plan for such","page_number":137,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"09002d96-7d71-4076-b2ca-7c8c6f592df7","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":137,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"39f4c33b-e99f-48f1-a3bb-597483256671","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":137,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"4c68f75f-b370-4cd1-835c-3a883c86de59","block_type":"box","text":"with the Fund. Employees, directors, and board members of other funds wishing to purchase shares of a Fund must","page_number":137,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"1f9b906c-6f42-417c-a1f1-c07681e5ac7b","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":137,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"8534922a-3841-439d-abee-1d0687fb3c84","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":137,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"c1c35beb-52f9-4e38-8288-0c5a30babbd1","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":137,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"e46d8514-3240-4c87-98b8-e79e4fed3ba0","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":137,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"36ee6732-2309-49d3-90fc-189c18ec4038","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":137,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"b0fc6bd2-9281-4c64-99bf-4782f02f616a","block_type":"box","text":"for dividend and capital gain reinvestment only. The Investor A1 initial sales charge does not apply to the transactions","page_number":137,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"e8e338fc-f2ba-4e25-b61f-affe3949f5a4","block_type":"box","text":"described in (i) and (ii). For ease of reference, Investor A, Investor A1 and Investor P (discussed below) Shares are","page_number":137,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"fa12dd1b-8638-41ee-aee4-0ba88b5d00b7","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":137,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"22abdb10-780e-4089-9dd2-5d93ac1bb826","block_type":"box","text":"BlackRock Shor t Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":137,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"7419e3d1-dbfc-458f-b9cf-f611f7c0dbfb","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":137,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"2bdcb798-703a-47d1-b8dd-8e89fcfdc3d2","block_type":"box","text":"par ticularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":137,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"f3a161c2-68fc-4155-9692-2967204652a8","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":137,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"ce4d4a9d-ae7c-472c-9e75-e088439e89b8","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":137,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"cb6d353b-3492-441b-b6c8-d9ff2bfdca72","block_type":"box","text":"for an extended period of time also may elect to purchase Investor A Shares, because over time the accumulated","page_number":137,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"8ec9cf13-6a53-4101-b8f1-4d3e3b08984d","block_type":"box","text":"ongoing service and distribution fees on CDSC shares may exceed the front-end load shares’ initial sales charge and","page_number":137,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"75542b8d-ce38-4f2a-b324-5bcc4f0f717c","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":137,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"724f3029-42f2-47b5-8199-9692a5561d9c","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":137,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"f3abea33-6d4f-4952-8c05-3a63d673f5f6","block_type":"box","text":"BlackRock front-end load and CDSC share holdings, will count toward a right of accumulation that may qualify the","page_number":137,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"81125ab9-c364-4b2e-a8c2-7068cdd5e599","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":137,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"9655722b-0f70-46ad-a991-ef5a8ac72052","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":137,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"141c534e-04c5-4fb1-8e64-d2221a7eacf6","block_type":"box","text":"have lower total returns than the initial sales charge shares. The ongoing front-end load shares’ service fees will","page_number":137,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"d80d7e07-db11-449c-b4d0-e0d3aa150971","block_type":"box","text":"cause Investor A, Investor A1, Investor P and Service Shares to have a higher expense ratio, pay lower dividends and","page_number":137,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"65e977b6-b92f-4fb0-9766-3bdfced4ae93","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":137,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"bf87d10a-9609-44c7-a70d-c23d0d9d7754","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":137,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"1f39d54d-f9fa-4866-a2ec-4f8d39eb63fa","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":137,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"02072335-88fc-4b76-b6b4-8633ecf7b0dd","block_type":"box","text":"periods indicated.","page_number":137,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"4c53d304-511d-4688-ad7a-18518ee529c9","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":137,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"88e478e4-415b-498b-b979-2c0161a0401b","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":137,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"398ebf57-9b64-43fa-9872-7ecdbe968a3c","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":137,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"cce0e1a7-61c4-4962-bc70-6520a0b70c06","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":137,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"20dd4d42-666e-4044-80a0-45cafef981e7","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":137,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"0b4ee00c-0929-4088-bab5-64c2c437a79f","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":137,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"52b707e2-d9bb-48d5-afbb-ec9b2b0dccc4","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":137,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"ecab1f17-ba13-4232-81fa-a084dc0578ce","block_type":"box","text":"entered into an agreement with the Distributor to offer such shares and are subject to an initial sales charge. The","page_number":137,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"596397fd-c62e-4ee0-9f6d-d46a3ecec0d4","block_type":"box","text":"ongoing front-end load shares’ service fees will cause Investor P Shares to have a higher expense ratio, pay lower","page_number":137,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"1877d20e-922a-4845-a49c-5a0cd3bdadc0","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":137,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"31458c64-5223-4ffc-997b-91d35facfc64","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":137,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"c1c591b8-4d54-4141-9a17-44e3d2312544","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":137,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"cd24f155-c8b1-4cfe-9369-b36c6897f07a","block_type":"box","text":"II-100","page_number":137,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1d961ec3-ab99-4780-a9fd-a965814daac9","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"94b29928-8ea0-4417-aef1-e6497775e3ea","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":138,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"a5ccbc4c-05e0-404e-a088-dbe8775dfc19","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":138,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"401c579f-f15c-4698-b79b-c4a55958716c","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":138,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"a4e5d938-1e8a-496e-93aa-6ff3a40d95ce","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":138,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"68de7ead-b505-457f-9a70-1703adac6e75","block_type":"box","text":"Reduced Initial Sales Charges","page_number":138,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"7aafaa5f-d0b3-4222-8d7b-aa1b6bc7f798","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":138,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"dbeef0ef-515c-4e17-a981-ceb5aa1b1e23","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":138,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"abed6fe2-3556-4192-8511-7694579857f3","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":138,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"e4538948-737c-4dea-8976-b8c0fc4c0f2d","block_type":"box","text":"exchange shares of a Fund from one class of shares to another class of shares of the same Fund provided that the","page_number":138,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"a4ce3ff6-0217-49bf-933b-7eb2a3fa6953","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":138,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"eedcf749-0bcc-4fe3-95fd-0035252a80ad","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":138,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"19cab048-6d23-4198-87cd-9a629273b4da","block_type":"box","text":"cer tain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":138,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"c0f9d9f9-68d3-4a80-98fd-d385d21f14d8","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":138,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"ec0ead76-9b91-4a77-b3b9-fc361803c863","block_type":"box","text":"Reinvested Dividends.","page_number":138,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"b00bd662-8d80-4a9a-a44c-431cea2a73fc","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":138,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"7b47ac72-5621-4d2b-b756-774855d18a69","block_type":"box","text":"reinvestment of dividends.","page_number":138,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"a6d5f186-59eb-4b07-bf54-0932b21ec219","block_type":"box","text":"Right of Accumulation.","page_number":138,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"14ce0e76-75d2-4a59-b9a6-a7034e05493d","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":138,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"ea000700-5f62-4b2b-8262-b61641d4c8a9","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":138,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"5c03df5b-183b-44de-aa9d-9503821179bd","block_type":"box","text":"a reduced front-end sales charge: (i) the current value of an investor’s existing Investor A, Investor A1, Investor C,","page_number":138,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"d2fa2222-400b-437d-afb8-0a83d4ddd91b","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares in most BlackRock Funds, (ii) the current value of an investor’s","page_number":138,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"9570d4f2-e139-42bd-83e7-f107d0967387","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":138,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"672b55c4-b0e7-40df-86e7-b01437605a7b","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":138,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"2a50fe29-5a06-4255-b942-57bebfb54101","block_type":"box","text":"CollegeAdvantage 529 Program by the investor or by or on behalf of the investor’s spouse and children. Financial","page_number":138,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"fbd7b1f8-07ab-462f-82c6-442b71ea85b1","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":138,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"286cf46b-eed2-401e-a334-bdbfce709741","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":138,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"6d44645b-121b-4317-9846-f3f1aff8b337","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":138,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"6671f97e-707e-4914-a181-57c03e15aff4","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":138,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"9ae8b2d3-f8f8-4773-a62d-e2c0332d857e","block_type":"box","text":"per formance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":138,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"d02e181f-229f-42aa-a1eb-9752050f9fb7","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":138,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"79c09fc6-b048-4174-b351-5db2bacfd136","block_type":"box","text":"charge, an investor’s existing Investor A, Investor A1, Investor C, Investor P, Institutional, Class K and Premier Shares","page_number":138,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"4f752d02-d630-4367-963a-cf68efc8c175","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":138,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"d927e335-3b6b-4ecf-88d4-4f20ab36647f","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":138,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"5ca3fb10-ff66-4c8a-b5a6-f24a8ec20f61","block_type":"box","text":"Letter of Intent.","page_number":138,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"3812c0f5-e232-43fb-9abc-f8460324549c","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":138,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"8e90144d-42cc-4507-8bd8-610e3c03da8a","block_type":"box","text":"Intent” stating the investor’s intention to make one or more of the following investments within the next 13 months","page_number":138,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"2212fd78-6f7a-4570-b4d9-fdb338989623","block_type":"box","text":"which would, if bought all at once, qualify the investor for a reduced sales charge: (i) buy a specified amount of","page_number":138,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"8a82262c-3c0d-41dc-8320-17438302e6a2","block_type":"box","text":"Investor A, Investor C, Investor P, Institutional, Class K and/or Premier Shares, (ii) make an investment in one or","page_number":138,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"62a1b931-5109-4bee-84d9-db0d0b279821","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":138,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"c9e6645c-fb29-4dbe-98c9-ad346245c5b2","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":138,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"cd999efd-9092-4031-9068-89326c8068e8","block_type":"box","text":"initial purchase requirement. The 13-month Letter of Intent period commences on the day that the Letter of Intent is","page_number":138,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"fcaa828e-a5a6-49a1-abeb-7a9684bd51a7","block_type":"box","text":"received by the Fund. The market value of current holdings in the BlackRock Funds (including Investor A, Investor C,","page_number":138,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"d1aad7ba-1b0d-4da5-a36d-b6246bdc3847","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":138,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"b303363e-62f4-4c4e-8c62-dc3669f17e3c","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":138,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"c0b8a9b9-344f-4112-b6b2-8729551f66fd","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":138,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"a0ed95af-9b79-4c52-8df5-48c36db29704","block_type":"box","text":"the Fund of (i) any current holdings in the BlackRock Funds, Eligible Unlisted BlackRock Closed-End Funds and/or the","page_number":138,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"db36ae59-550f-404d-9d4a-800678221dd6","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":138,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"4ec88b62-5445-4018-8bc4-6250095b0dda","block_type":"box","text":"subsequent purchases that should be counted towards the Letter of Intent. During the term of the Letter of Intent,","page_number":138,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"92e7f400-eaf0-4647-b09c-e96a03723db8","block_type":"box","text":"the Fund will hold Investor A Shares and/or Investor P Shares, as applicable, representing up to 5% of the indicated","page_number":138,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"48cee732-1c2f-48dc-8844-e883a2b99d0d","block_type":"box","text":"amount in an escrow account for payment of a higher sales load if the full amount indicated in the Letter of Intent is","page_number":138,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"08f53aeb-4c48-4c03-9c36-60da000b53aa","block_type":"box","text":"not purchased. If the full amount indicated is not purchased within the 13-month period, and the investor does not","page_number":138,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"b9a55eb3-0713-4336-bd8a-c11d64218e27","block_type":"box","text":"pay the higher sales load within 20 days, the Fund will redeem enough of the Investor A Shares and/or Investor P","page_number":138,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"8704697c-c6c0-4796-aca4-d9e12c7cdd75","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":138,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"476fc19d-71f1-46c3-8de5-bc95d5679aa8","block_type":"box","text":"Placement Fees.","page_number":138,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"a16d288f-5e17-4a7c-a9fc-da84ec2a1975","block_type":"box","text":"BlackRock may pay placement fees to dealers on purchases of Investor A and Investor P Shares of all Funds,","page_number":138,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"afadcd24-e23b-44a4-8212-22dd897b9c4d","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":138,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"6a13e5a7-6295-4ba1-84eb-c13ce7258f1c","block_type":"box","text":"II-101","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"17e2d218-c7d5-4522-abe7-abae8b7eeb5c","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0ca24c34-2dac-497a-baf9-f4ade8cbf6bd","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":139,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"88f17ea6-c6ae-438e-a477-e2b30a04688c","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"39f8ac03-59ca-4517-a69e-bb2b1d1a34e4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":139,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"5fbd70d1-d126-4c49-9cd9-b0195ef6e00a","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"82524515-5223-49b3-ae61-0cc3c5799467","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"f318f3db-7b43-4a9a-a24b-bc0e2c93544c","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"7ec5b473-8123-4d75-8163-16a9cc0539e7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"13ef6be7-c236-4740-9f67-abeb5be04cf6","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":139,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"7bcd86ce-4025-40d2-932e-d70f87637715","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":139,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"7a1ddeb3-6df7-4edf-bc19-8dab1c7443cb","block_type":"box","text":"purchased prior to July 1, 2020) of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV","page_number":139,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"810c9b97-1f9a-458b-94b9-bc5a7673f0d4","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":139,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"63ea137e-41cf-420f-93e3-f97212d21f90","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"49229811-ffa5-451f-8140-1467475c83bf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":139,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"003e3768-55f1-4213-b5dd-f1da262717f8","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"76fcd402-1ddb-4c82-8f22-3ae6c6ab44d5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"e77330dc-5457-4c26-8b1b-6364d521dde7","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"41808b66-809e-47a1-83e7-f9e73afd9b43","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"f7b860cd-599d-4eef-99a5-ef27431fe2cf","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":139,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"fa4cc23b-2432-45bc-9e20-4c21c0cd6a73","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":139,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"52e9cf6b-8860-490b-bbdf-d2df4c1323d4","block_type":"box","text":"SM","page_number":139,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"3485e95b-809a-465e-bff2-51716b516e6b","block_type":"box","text":",","page_number":139,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"87b48327-329a-4962-b5ed-09da38b7a2cf","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":139,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"74c4ae0b-2797-467b-ab18-93867bfdb16b","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":139,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"b5dfcad0-8129-442a-ac81-deb0cf2d0389","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"820e77fc-ef88-4518-8ee7-64a5b048cbe1","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"8daca749-1e3f-4474-acef-dbc9c1dae6a0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":139,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"732fa0c4-6045-424b-ba23-cbe613cd181e","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"bf9d3f3f-8f94-4c21-908e-93622c687694","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"caed383f-d5c1-4135-82f1-30daec37ea8c","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"4fd7ca3c-a67f-474c-bfea-8c81e916869b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"e13521f1-889b-49c2-acc1-0f58e2e4205e","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":139,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"31615980-4de5-4501-8dbc-88e646375e6a","block_type":"box","text":"Mor tgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"387093d9-04ea-4df1-a264-923509561232","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"e84bf082-2428-4f6c-b742-f49d4dae0998","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"4de45f79-04f0-49ae-ad6b-919c6e27e9a4","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"cf712ae8-9da2-4016-a910-6fb88b71cf58","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"01257593-f8c8-4d28-9ffa-e7bae0cad396","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"84d858d4-de1e-408a-a830-396fe6b0d678","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":139,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"7f1e7d27-3337-4825-81dc-4e2d08d1475b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":139,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"ed2044af-13b5-4294-9ab0-39302ae82f17","block_type":"box","text":"may be up to the following amounts:","page_number":139,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"47e8c25f-0cf1-4a52-acbd-0839dee2a95d","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"e0f12bb2-5d2e-4e32-bf4c-f028cdb33586","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"25bff3de-a932-4fb6-9d08-166bcb39ad96","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"3e5e0a67-64ad-4750-b193-174586ae21db","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"d79c2df2-b991-4820-a90a-33b15abe3818","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"8e8de092-b4e3-4531-819c-9672152ee57c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":139,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"6c863103-ba3a-4892-9f5b-b1777c4d90c2","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":139,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"08522d4c-3bb8-48a4-bfae-21bb6086f829","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"e19a3b8b-0a2d-45f7-9739-c6b5f2610cc4","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"da330edf-c945-463e-80d0-becbc4b01527","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":139,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"22096279-da49-4bf5-9857-e269f648de07","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"ea88d975-c55c-4378-9771-d96ed583fa08","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":139,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"d6cf5483-4b70-4ede-a22f-c5715bd81d24","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"333e57e8-23c6-46fb-bb3e-ebea7eb88972","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":139,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"d577d9ee-2f71-4c7f-9fac-5edffb13fb01","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":139,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"8e422685-1b24-433d-8c78-f59331d41f37","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":139,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"755b119d-f5ac-46b1-8e0d-f776358f7428","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"396c148b-9954-4d48-83da-2e36f2591e96","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"a56799b7-ab87-4c80-a426-0bd0a806b98b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":139,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"12b37401-d728-4511-b1f8-8bb319ec84af","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"31a78053-c613-4d24-8adb-573ac5f758a8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"746a3a93-133f-4ee3-838b-5ad2780adcaf","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"e2803c3c-2b6f-45e6-be3d-a3b75d0582fd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"3332948e-12e4-4f33-8b9d-96918881221b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":139,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"0710994b-f5fa-4d86-bdac-4037c90a0985","block_type":"box","text":"Inc. (for shares purchased prior to March 18, 2019), the placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"f55969f3-1ecc-418d-bb6d-7e2ddebff35c","block_type":"box","text":"$250,000 and above . . . .","page_number":139,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"c8325ad2-1d3e-47eb-a707-538255edca34","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"7eb0a763-d1c4-4ed4-bdf8-f92502168fbe","block_type":"box","text":"II-102","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f1533f32-a52f-4387-abcd-dab0184b2318","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"618fa4d5-03e1-4c78-acd4-752b6dbd42f7","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":140,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"cb005ea8-ee9a-4c34-9e8c-3cb5481891f9","block_type":"box","text":"Inc. (for shares purchased on or after March 18, 2019 and prior to July 1, 2020), the placement fees may be up to","page_number":140,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"871d5333-4e0e-4e45-84b3-b899704ab458","block_type":"box","text":"the following amounts:","page_number":140,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"a7675bdc-3616-4022-aca0-b9075ec2ca97","block_type":"box","text":"$100,000 and above . . . .","page_number":140,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"71571f68-3802-405d-bb2a-70eddf0169da","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"b166b696-f5da-49f4-a8cb-80a10b4f611b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":140,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"ff5aa2c8-d14d-4fad-9e38-afd90289284d","block_type":"box","text":"Inc. (for shares purchased on or after July 1, 2020), the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"686184b8-21bf-4bdd-a286-180e563084fd","block_type":"box","text":"$250,000 and above . . . .","page_number":140,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"71350868-180b-4571-9eb5-ec863b67ea14","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"e6b72dcd-8c85-4bbb-b1dc-2e7ca348e550","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":140,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"340b235e-4a9e-4bce-9a33-5595d13b92c1","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":140,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"d70a740a-11ce-4935-9fb2-3d4263d5e433","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":140,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"b7a4f2a3-0e6a-4d73-bbe4-d324d6586ead","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":140,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"e1f5991f-ccde-4a3b-8b1e-07083268c724","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"c0aad7a9-abff-439d-a62b-67a9a0528e68","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"20d794c6-e037-48a7-9521-7bbe2e08f6df","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":140,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"0f1ab828-a89e-4497-ab42-309fe484f914","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"c49d24fb-b32d-4119-8f90-83ff4a377dab","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"82cc1921-35ff-4d12-b536-f42aca50053a","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"cee55b9f-9d8c-4f6a-859c-ce0fbbe3ffe9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"3f5e8fb4-2b89-47d9-ac8d-17b2cc17101f","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":140,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"9c3d6a8d-ebc7-4baa-849b-5814f1833612","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":140,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"2fcee33d-a600-455e-8e47-abdd7dc9807e","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":140,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"c707dab8-6df3-4e39-8579-852857caa37e","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":140,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"47f662e3-0115-4c0f-bc8a-2d51f8afd3c9","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"b592af2e-4804-4a4d-bb33-76b6e2b2f573","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":140,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"264298c4-dc43-48d8-b99d-1d0013a0e3bc","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"44d21aad-fab9-4631-bca2-ea5cfdda0cd8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"520af2ac-4d03-4c39-b4bc-e6196cf95ab6","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"4d97fb16-0f3f-4868-b60f-09cec62e94b0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"6ce07a25-af5e-4fae-8966-edbc8cd3c1f5","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":140,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"4cc60910-84a7-467b-aaf7-bf189206a8f4","block_type":"box","text":"®","page_number":140,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"8d880109-3a23-40eb-ba62-09cfbbc83920","block_type":"box","text":"Index 2030 Fund, BlackRock 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Small-Cap Index Fund of BlackRock Index Funds, Inc. and iShares S&P 500 Index Fund and iShares","page_number":140,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"1421f5f6-5d07-4e7a-adac-b25be8c7de7d","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":140,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"6dca281c-0fd8-444f-80d3-fe4c58e7a6f0","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":140,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"1ffc4864-29f8-4ab8-89a2-5c0bf4a2d79d","block_type":"box","text":"example, a sale of $4 million wor th of Investor A Shares of BlackRock Impact Mor tgage Fund of BlackRock Funds V","page_number":140,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"c66db476-235b-42ad-9876-56c24ecd6a5f","block_type":"box","text":"will result in a placement fee of up to 0.50% on the first $3 million 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a","page_number":140,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"2b0e0e8f-a6a0-4db8-a260-060c5a9f36b6","block_type":"box","text":"II-103","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8665861f-3e1b-47a0-8629-35b5746e8d31","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"be04473a-d669-4600-837d-c63889c7449a","block_type":"box","text":"fee-based program (such as a wrap account) under which they pay advisory fees to a broker-dealer or other financial","page_number":141,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"5ce365ff-91ea-40a6-ba6d-0c2eaac4fb65","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":141,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"bc51d9a6-2dd3-4311-96eb-5b0204120cd3","block_type":"box","text":"approved by the Distributor to offer Fund shares to self-directed investment brokerage accounts that may or may not","page_number":141,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"239dafb9-d3ab-4800-9a9e-b117664d0653","block_type":"box","text":"charge a transaction fee; (g) state sponsored 529 college savings plans and rollovers of such 529 plans into Roth","page_number":141,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"8d679784-f566-4ac5-8b61-f4e63a945877","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":141,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"3bfc2c69-1de4-47bc-b47e-d5a7a42a0824","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":141,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"d87b7009-0dbb-4e4e-ad9f-dc04def03df6","block_type":"box","text":"involuntarily liquidated from a Fund, who within 60 days of liquidation buy new shares of another BlackRock Fund (but","page_number":141,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"0bd46a3f-5050-4943-b202-b7c4c3948f0f","block_type":"box","text":"only up to the amount that was liquidated). The following persons associated with the Funds, the Fund’s Manager,","page_number":141,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"fa6422f0-cd27-4da9-937c-d358f76198bb","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":141,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"6447e312-a231-4610-b8d3-5a9be0d1e85c","block_type":"box","text":"or Investor P Shares of each of the Funds without paying a sales charge to the extent permitted by these firms","page_number":141,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"5f034151-9eef-442d-99d9-11d48bbc8500","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":141,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"cad0b6eb-f8b8-46e5-8185-84e66ca635f2","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":141,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"068336ab-9ec5-4d7b-86aa-1d9c2ffc1d02","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":141,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"311f414d-7e35-4a4d-aa6a-9032204a52af","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":141,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"3bb49927-0f75-4e5a-b9c4-500edda306b8","block_type":"box","text":"plan for any of the persons set for th in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":141,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"5c4e6be3-253d-4435-88f9-964a44586968","block_type":"box","text":"sales charge should purchase Investor A or Investor P Shares. In addition, a sales charge waiver may be available for","page_number":141,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"f36bf632-bed7-4ea6-8afe-3d24b01114d3","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":141,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"5e757ee8-d6f7-4bd9-bffa-48ad923e3872","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":141,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"74127e48-b536-4598-96de-19abb2b2b41d","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":141,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"6755ff80-863d-495c-8cd5-7d645a1d6f68","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":141,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"161d96e6-ec39-4f41-a196-297c7f25f876","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":141,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"101adfa1-057c-4bba-b564-3082341e9415","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":141,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"22f1e17a-f928-41ec-ba12-4d52fbf5df46","block_type":"box","text":"Income Por tfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":141,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"64044bc4-d7a0-4e79-a492-4f9204a552aa","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":141,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"8e6cc726-93a4-487f-bb50-282a38929d09","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":141,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"ca0900c3-cedd-4d78-aeb7-f0a030f0506c","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":141,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"7eb6dc74-0bc7-4508-9be2-b921516f8a3c","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":141,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"4337663b-4984-4bda-9eec-fa5eb21c224d","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":141,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"013221bc-b82c-492b-9a77-ca6f4bca05a1","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":141,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"48840e0d-3c33-465d-9e06-6121f3a1f99a","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":141,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"e117b1a7-3932-4327-a235-147209967684","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":141,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"31e2fa5f-dec2-47c3-bd51-08844aeecf9d","block_type":"box","text":"BlackRock Funds V) or more in Investor A or Investor P Shares, as applicable, you may not pay an initial sales charge.","page_number":141,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"5b70d98f-80b8-450a-b58e-b6fe5a6eb468","block_type":"box","text":"However, if you redeem your Investor A or Investor P Shares, as applicable, within 18 months after purchase (a","page_number":141,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"ffc8e907-569b-48b4-a719-0e40a7820478","block_type":"box","text":"shor ter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":141,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"fb99c59a-5fea-4da3-b88b-ad7552fd5c80","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":141,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"832becf6-4856-4fde-b6c8-7514be294e6d","block_type":"box","text":"Funds and BlackRock Shor t Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":141,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"6c7ab4f8-52cf-49e9-934d-516c6a9f9566","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":141,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"f9efe48a-f93b-4051-8a30-008eabc13cfa","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":141,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"dcd441f2-3254-4abd-80c8-f2348dd8cdee","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":141,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"bebf5633-c59a-4c72-98db-5a79f4029d72","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":141,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"6e86698d-5453-4e02-8394-51a5d3c99c55","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":141,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"5c78345e-3722-4f61-b4df-c22be3ea2676","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":141,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"6cddd507-4a12-4cde-9174-237fb72ccbea","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":141,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"f91f3dbe-2880-43f0-ab32-acbaed2d8d6f","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":141,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"20cf27bb-01b9-486a-a00f-65e6c66131ad","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":141,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"e6cf3749-0f3c-4555-8692-e8bde9ededb5","block_type":"box","text":"The deferred sales charge on Investor A or Investor P Shares, as applicable, is not charged in connection with:","page_number":141,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"00d4314c-c196-4c2e-a63a-5e8f1204d927","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":141,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"0ef6d6dd-5c0a-4015-b14e-7b9e03f21488","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":141,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"74cf8b1a-5444-4299-90b4-19ecf577bbc7","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":141,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"7bda28f3-2d72-4fc1-b141-f147f08fdd45","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":141,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"221d8567-74b3-4c84-a1f7-7cf63634e15a","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":141,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"f0009893-72bc-43f1-a269-cd99e9256ed0","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":141,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"db97ff7c-181e-49c7-b8ad-db9175c34285","block_type":"box","text":"distribution of account assets to a beneficiary of the decedent) or (ii) in connection with a shareholder’s disability (as","page_number":141,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"b2087a2c-71d5-438e-bb3a-90a585c5e498","block_type":"box","text":"defined in the Code) subsequent to the purchase of Investor A or Investor P Shares; (f) involuntary redemptions of","page_number":141,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"4b369bd8-4051-423b-b0e9-a897876c1d73","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":141,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"3a2efafd-21c0-40f3-9568-c0d2ebeb4025","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":141,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"505ded69-8c56-4348-8d79-c12ce2a515d2","block_type":"box","text":"II-104","page_number":141,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7cf0468f-c0d4-4dcc-9e5c-33ec14ea41fc","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e5687bcc-8ee5-4b56-a0c2-3460d53d49fc","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":142,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"d654c572-2c3a-4bd3-898b-29a4f4c2edb2","block_type":"box","text":"the absolute discretion of a Fund.","page_number":142,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"4699b940-ce12-442f-a278-71efb5b2ebf7","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":142,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"e9c94b2e-2586-474e-be39-a8205b0819b7","block_type":"box","text":"fee, the Fund may, at its own discretion, waive the CDSC related to purchases of $1,000,000 ($250,000 for","page_number":142,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"c3170b21-c62e-4853-b64c-373cdc761545","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":142,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"7501deb3-b208-44ef-90b4-467cfc4f5d8b","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":142,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"582c89ca-7d85-48a1-a151-0893c470454b","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":142,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"d8622093-ca51-4778-826c-c637389babbb","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":142,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"fd274ac2-dd59-43bd-88a4-0d9383fc1070","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":142,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"bed86c07-ab83-4873-a8ca-2e4cf9e4fbc7","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":142,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"13da0bec-f5b7-45e9-b5d7-b6462b446311","block_type":"box","text":"Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":142,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"822a332c-5706-4feb-8d40-0624af3ea644","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":142,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"d9a16d65-f65a-456f-bc7d-7ea739da44a3","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":142,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"cd126d40-98bb-4604-98ec-0f220f4e2815","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":142,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"d37ab63d-09a5-4f21-bcb1-b88d29ef1dc2","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":142,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"e517d6b3-9dbe-4e6f-a534-c957cd2b42c2","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":142,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"c90f3f0f-9426-44db-9ca7-3849365f53fa","block_type":"box","text":"Investor A and Investor P Shares are also available at NAV to investors that, for regulatory reasons, are required","page_number":142,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"a4c36a7b-3c4e-46a6-b5ee-e903d90eda75","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":142,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"27bca161-8808-4d51-8c36-5001d2d7819c","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":142,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"6c36445d-96a5-4182-b9d1-1975e2ed44bf","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":142,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"a87261fd-fa56-4e8c-89b1-db9912960576","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":142,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"d9b47cc4-efa2-4301-aa39-5b9732dd6919","block_type":"box","text":"connection with the acquisition of the assets of, or merger or consolidation with, a personal holding company or a","page_number":142,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"48c1e319-3ebb-4ecb-9b70-d8dbc902bea9","block_type":"box","text":"public or private investment company.","page_number":142,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"649d78e9-38c0-4d55-9c8d-2eee0aad429f","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":142,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"ec1009dd-fd2e-49ce-adf7-11634786a278","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":142,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"b78f56cc-1f76-4d2f-bca9-bb74e68b45a9","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":142,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"5535c3d9-b742-47b6-b84c-e01268153020","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":142,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"2e68176c-1c70-41c4-a302-b8c0c4551b9b","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":142,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"54ca1c51-8cdf-45bd-93c2-43ff8da53568","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":142,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"925c85fa-7a6d-4d37-a2a5-2e3be3dbd828","block_type":"box","text":"as to the length of time they intend to hold their assets in a Fund. If you select Investor C Shares, you do not pay an","page_number":142,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"88d6da2b-81cd-44e2-970f-3a7a72f9ce18","block_type":"box","text":"initial sales charge at the time of purchase. A Fund will not accept a purchase order of $500,000 or more for","page_number":142,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"75e7dcde-7d05-4bd2-a869-0b6de207004d","block_type":"box","text":"Investor C Shares (may be lower on funds that have set a lower breakpoint for NAV). Your financial intermediary may","page_number":142,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"5bdec692-ffe8-496c-a489-df92a00cdd43","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":142,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"1c01e46e-2f94-48af-a99d-7a2da88c5080","block_type":"box","text":"Investor C Shares are not available in accounts opened or held directly with a Fund that do not have a financial","page_number":142,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"5b527a50-a353-4b85-9242-fed6b363b15d","block_type":"box","text":"intermediary associated with the account.","page_number":142,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"1dd297c9-0ed2-4ea4-bab4-586f2a5b8f84","block_type":"box","text":"If you select Investor C Shares, you do not pay an initial sales charge at the time of purchase.","page_number":142,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"82ccd031-1bda-4062-82c4-4fa204c909f4","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":142,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"55057a7c-7ed7-4a38-8659-da73f94664ed","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":142,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"675b2f1e-955c-4f29-bc19-715f50245210","block_type":"box","text":"these fees potentially may be offset to the extent any return is realized on the additional funds initially invested in","page_number":142,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"6fd9072c-1df3-4802-9e5b-35b012cf7007","block_type":"box","text":"CDSC shares.","page_number":142,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"a1fdd142-2898-4d54-ae0c-a31819a4da10","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":142,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"f9373bf2-697d-46b2-920c-58f840c0c431","block_type":"box","text":"of purchase from its own funds. Proceeds from the CDSC and the distribution fee are paid to the Distributor and are","page_number":142,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"06d99490-9127-4931-af25-2d0d2a59ea76","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":142,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"ab4a11f5-ca3f-4989-a96e-d17988689e70","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":142,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"72d25d8a-1d4f-420f-ac56-0fac470a785a","block_type":"box","text":"of the CDSC and the ongoing distribution fee facilitates the ability of each Fund to sell the CDSC shares without a","page_number":142,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"7100ec98-1543-4ce8-b554-ed3a3d54246d","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":142,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"18b395cd-5f74-4e4c-a19e-6d11a8323438","block_type":"box","text":"Imposition of the CDSC and the distribution fee on CDSC shares is limited by FINRA (as defined below) asset-based","page_number":142,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"51dd522f-70f7-4c61-9f0c-83c3e35c2c63","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":142,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"df12e312-7081-4f26-aa79-5b0e6ddf737b","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":142,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"17c487ed-d08f-4f11-92b6-194cb3bab392","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":142,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"4ff5a4e1-09cf-410c-ab7d-4036cdff400e","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":142,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"eb9b30c7-d493-43ff-b8eb-b3b2de70de65","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":142,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"a176d360-50f6-4b1b-a801-8e92e15ed7c1","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":142,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"0caccaae-fffc-4d62-9c6c-cce2f3efb02f","block_type":"box","text":"II-105","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a43c0db8-41f3-416a-bd55-2a81a3a6fb0c","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"70914312-0bb9-4b04-a8cb-773123729601","block_type":"box","text":"with sales of Investor A, Investor A1 and Investor P Shares. These may depend upon the policies, procedures and","page_number":143,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"07238b5e-f3f5-4f74-8111-8cf27ade4eb9","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":143,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"5a415b34-d77f-45dc-9df4-565e80a55ab7","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":143,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"253e9cd5-45b5-49b6-9d24-b9ed60e5b27f","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":143,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"063185d1-47d1-49b7-b1e2-6b66ed03b951","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":143,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"dc0f7f9c-eca1-4254-b3e5-443b45d608eb","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":143,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"31a431c3-0962-4b5f-b30d-ab230d30300a","block_type":"box","text":"Investor A Shares.","page_number":143,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"52e70e4c-ddad-4362-8f77-fd32e496ce07","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":143,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"aa8ff04a-630d-4fe9-918f-0e53e08b8841","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":143,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"b21eb302-40ee-48fa-b337-5a01332828bd","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":143,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"64d49261-612c-4cd4-9cb9-1583bb6a4329","block_type":"box","text":"Cer tain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":143,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"304f66fc-aad9-42b0-ae30-21a96c24076f","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":143,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"5b88cf62-f794-4706-89cc-8b38ef34584b","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":143,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"3954ad41-5d76-40b6-992e-8f50d63dfeb4","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":143,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"02847fc2-fe7e-4b44-80dc-94dc76abe8cb","block_type":"box","text":"cer tain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":143,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"bbc0795d-7219-4d3a-b53d-b52d98380662","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":143,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"d863d402-6c1f-41da-96eb-cdafa143a313","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":143,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"3396a8e4-a8f6-4973-a5a6-2490fb6db9d5","block_type":"box","text":"the Effective Date. If, as of November 23, 2028 (eight years after the Effective Date), a financial intermediary has","page_number":143,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"848a1562-2502-4490-b1b2-806afe15dec2","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":143,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"383f09ad-bfc6-45a6-84cc-b1f3ce08e604","block_type":"box","text":"holding Investor C Shares through such financial intermediary will no longer be eligible to hold Investor C Shares and","page_number":143,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"1198dca3-4def-4cfb-9dd2-46c7b05a001d","block_type":"box","text":"any such shares will conver t to Investor A Shares as soon as reasonably practicable after such date.","page_number":143,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"8c70c45d-4aef-4aac-ab09-9e337022ee01","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":143,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"9078de63-3aa6-47d4-a370-83725dccd4e6","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":143,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"8af02a10-4e0e-43cf-9a39-1649c7384753","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":143,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"25f90fc3-df99-4898-9a1e-b84c779f0cfb","block_type":"box","text":"“Investor C Conversions”).","page_number":143,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"817a1c7c-ad72-4bd9-a738-2d29425989ad","block_type":"box","text":"The Investor C Conversions will occur at least once each month (on the “Investor C Conversion Date”) on the","page_number":143,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"8b11b20a-3731-475a-861f-502a507bbaa6","block_type":"box","text":"basis of the relative NAV of the shares of the two applicable classes on the Investor C Conversion Date, without the","page_number":143,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"7d20dff2-025d-41e8-a8e1-d9d9b7fa4497","block_type":"box","text":"imposition of any sales load, fee or other charge. The Investor C Conversions will not be deemed a purchase or sale","page_number":143,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"d24036a3-8e53-473e-ae14-efe424530cf7","block_type":"box","text":"of the shares for U.S. federal income tax purposes. Shares acquired through reinvestment of dividends on Investor C","page_number":143,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"084f79a4-f83b-4d66-8952-485cc9fa3873","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":143,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"06062ec0-b7cd-4dd0-826a-ef1792b97826","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":143,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"c917d75a-1d59-4371-93a2-e556238e2ca0","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":143,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"7884c1e5-5da3-4f73-bda6-b34cce2b6c41","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":143,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"2775fb82-81b0-4181-965c-5eb1a608f02c","block_type":"box","text":"Investor C Shares that are redeemed within one year of purchase may be subject to a 1.00% CDSC charged as a","page_number":143,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"83cceea6-1095-480d-acf5-59146d76ec63","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":143,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"b81b9d7d-27e7-49d0-ae87-df17c9a87adb","block_type":"box","text":"a redemption, the calculation will be determined in the manner that results in the lowest possible rate being charged.","page_number":143,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"3fded8a9-5d08-4923-b2ee-0f4e9c012ff4","block_type":"box","text":"The charge will be assessed on an amount equal to the lesser of the proceeds of redemption or the cost of the","page_number":143,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"2ca8e93d-aae8-4735-a465-bed10e2015c9","block_type":"box","text":"shares being redeemed. Accordingly, no CDSC will be imposed on increases in NAV above the initial purchase price of","page_number":143,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"a81b5e92-7af8-4652-a7d6-28e1d8f90e27","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":143,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"d7efcb23-db55-4330-bc66-d159a0e6b637","block_type":"box","text":"dividends. It will be assumed that the redemption is first of shares held for over one year or shares acquired","page_number":143,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"997eb5c4-6eb4-4606-aaf0-f1075be98d50","block_type":"box","text":"pursuant to reinvestment of dividends and then of shares held longest during the one-year period. A transfer of","page_number":143,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"8740a50b-b620-440b-b4cd-f20fbef9bd93","block_type":"box","text":"shares from a shareholder’s account to another account will be assumed to be made in the same order as a","page_number":143,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"9dd2cc0b-9f09-40fa-89d4-b5ed8363ca38","block_type":"box","text":"redemption.","page_number":143,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"c2cb7884-9cbc-43fb-a74f-a23f313d0b0b","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":143,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"f836d04c-b658-4413-adf0-7db54b4e2f4e","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":143,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"71930583-6c8c-4563-a211-fbd313105b36","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":143,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"4cb1138f-e445-47fd-85b2-0d97202f511a","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":143,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"aa56aa7a-472e-468b-a309-b03461283173","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":143,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"cc3c266a-3667-4626-8ce8-57674adcf3a2","block_type":"box","text":"cer tain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":143,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"b78572b2-393c-4216-94f1-464d4637d491","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":143,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"ed86c183-ad9d-4a25-8c93-f43d1323396d","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":143,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"7b4408c8-9139-4eac-9cd5-65c1646348e7","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":143,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"b332f9f9-85a4-4abc-b97f-4095c839a9e6","block_type":"box","text":"shareholder’s death as long as the waiver request is made within one year of death or, if later, reasonably promptly","page_number":143,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"4c9f4e55-b44e-4089-8d0f-7869f785f027","block_type":"box","text":"II-106","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7b086183-f040-42b3-8f2a-cdfd74ddfb75","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fbabb74e-8c68-45b1-a0aa-29510aa0af54","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":144,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"3ceb1d97-cd14-434d-ad6e-eea9ef5c7001","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":144,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"d59d7027-0ca9-4f8f-8fe6-bde98e35af42","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":144,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"f95a4435-df71-4f38-b9f6-0f02dc697521","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":144,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"abf4eb56-e9ed-4256-8854-7eb6f8e0adcd","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":144,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"5e63dece-2149-4712-9be8-6af65d14c4e2","block_type":"box","text":"limitations set for th under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":144,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"3ab3eaa4-c98a-49d5-8f2d-fe4c991e7a55","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":144,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"8a2fef3e-1ef2-4514-a40c-7d524b7d060d","block_type":"box","text":"demonstrate hardship, in the absolute discretion of the Fund. In addition, no CDSC is charged on Investor C Shares","page_number":144,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"8cc2ac8d-a874-4d12-a46e-9fc43982ab7b","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":144,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"b17ec385-c84d-4341-8197-7794ee4d25bf","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":144,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"69f021a7-c343-4e86-856b-5b8cc8c49ef1","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":144,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"96746b6a-e911-467d-a153-2230998441eb","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":144,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"d7279b71-dcb0-4e7c-a25f-8b491543596f","block_type":"box","text":"Class R Shares","page_number":144,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"dd2e0346-79b2-45c5-8c62-9df1a73fee4f","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":144,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"3285a37c-11f8-4f52-9865-178b22f760fd","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":144,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"2ecd4e13-7a65-4ec1-88a1-062a30aa48e1","block_type":"box","text":"charge or a CDSC but are subject to an ongoing distribution fee of 0.25% per year and an ongoing service fee of","page_number":144,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"c22da107-09c4-45b4-8241-faeb57bfed20","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":144,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"645d297f-5264-4580-b5af-442742eb517e","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":144,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"c8c434a1-7902-4364-924b-06a044a4be12","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":144,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"77066dfc-182e-49db-92f7-31c2d87fbcb0","block_type":"box","text":"If Class R Shares are held over time, these fees may exceed the maximum sales charge that an investor would","page_number":144,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"5d742219-4ccc-4bf7-b289-83a252f1191e","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":144,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"d03db16b-5614-42d7-ba31-ecdf1b35506b","block_type":"box","text":"Class K Shares","page_number":144,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"94ac1bb0-7a69-44a7-8958-cd36aa325193","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":144,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"e6c3f37f-abde-4ce7-af49-19ca6185d354","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":144,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"24f165c7-184c-46a8-987f-99e0531657c6","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":144,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"844ca648-f659-4466-9b3c-2eae49a577ca","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":144,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"3c7bf2f5-d309-4e4d-b286-ba9269e6daca","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":144,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"5a44871e-340c-4ac7-ab86-6a51e16b9d5b","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":144,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"45328839-1da1-4f7e-9fdb-1ba8c95f737d","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":144,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"6a5bcd4b-7340-4081-9436-13488140fd1f","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":144,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"16c17419-e413-49fe-a74f-c93cfb6ebdc8","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":144,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"1a5ba18d-80c0-4042-a40e-917ed3717f79","block_type":"box","text":"banks that purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":144,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"2c7d5b9e-e5f5-4399-aaad-85368f23d1b5","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":144,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"f9afe0e9-4ca8-44a1-b513-720736b516c4","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":144,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"a1372eb3-ba43-4893-8a67-e32d5847f9c7","block_type":"box","text":"offer such shares to fee-based advisory clients through an omnibus account held at the Fund or (b) transacts in the","page_number":144,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"5c9affbd-f39b-4794-8441-479308c68b70","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":144,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"5ac0ef53-8aeb-4a83-9bc7-3405434b69dd","block_type":"box","text":"met the eligibility criteria for BlackRock Shares or Class K Shares prior to August 15, 2016 and have continually held","page_number":144,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"e6ff5808-6ee7-45fc-aceb-0629ec80d3e7","block_type":"box","text":"Class K Shares of the Fund or the respective Predecessor Fund in the same account since August 15, 2016. The","page_number":144,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"0ea26721-29b4-431c-adae-eb20f2e42f9b","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":144,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"02f71903-9c03-41df-ae79-c8a75995e9b4","block_type":"box","text":"distribution and marketing agreement.","page_number":144,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"0c8c0552-ebac-4eea-87be-86aa71516e3e","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":144,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"867f27e7-430d-429b-b35c-5e6fba1a5e48","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":144,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"7ef1372d-b55e-4322-8215-855418d81480","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":144,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"0e52fadd-2087-443d-b56d-1d1f5033e436","block_type":"box","text":"Class G Shares","page_number":144,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"86fdebc4-b19c-460d-9b4e-2135a55dcda8","block_type":"box","text":"Cer tain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":144,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"b0157694-da40-42d6-bd2e-e130c5a7db3c","block_type":"box","text":"are those where clients invest in the Fund through a single omnibus account in the name of a financial intermediary","page_number":144,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"fff1bf40-8785-4b81-a82b-73d11a52f208","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":144,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"89e819a5-cc22-46df-8fb2-f36e87d773fa","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":144,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"a9fed733-926d-4036-a04b-d7b2ae7dc8fc","block_type":"box","text":"eligibility requirements.","page_number":144,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"5eb22892-cef8-4c6c-842b-f5c0786844eb","block_type":"box","text":"II-107","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"acfec0b0-74be-4e95-aad6-298a84872f81","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"77076aa9-0a4a-4680-beac-b6f2a2049dc9","block_type":"box","text":"Service Shares","page_number":145,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"ac3b6d4b-2e0d-4d7c-ac72-31cf24699886","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":145,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"73fddb6d-702e-4782-8318-096f2222b2ab","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":145,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"47332d1c-b0a7-44af-9b4e-235cd8e77f47","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":145,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"d61ad660-8cee-4689-9864-6b8331d4387f","block_type":"box","text":"®","page_number":145,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"4b6d1d6d-d895-4a1f-9a94-03044e465cbe","block_type":"box","text":"Fund in 1996; and","page_number":145,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"87ea3d06-6dcd-4729-89f4-44d61e9c995c","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":145,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"3578f386-9ce4-4aa4-bbfe-6acf38620df2","block_type":"box","text":"SM","page_number":145,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"182fba7a-bb98-42eb-9b83-5fcfcb43ec54","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":145,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"e6256bcc-045f-4fb3-a992-b74811a9b0d9","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":145,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"9e5d7b6c-ec4d-4223-bc89-76ef9a81a2ed","block_type":"box","text":"BlackRock Shares","page_number":145,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"fa4f5eae-e5ca-463d-a398-0dbb469f656a","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":145,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"725a7a63-9e13-43da-a60f-ff0a9669809d","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":145,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"a6c62cd7-110e-4104-8156-a0dfd2a70123","block_type":"box","text":"fee-based programs.","page_number":145,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"ddf60189-c23b-439b-84ff-efaba85cd8c7","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":145,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"8273a54e-f4a2-469b-b606-60c7838d632c","block_type":"box","text":"Each Fund has adopted a plan (each, a “Plan”) pursuant to Rule 12b-1 under the Investment Company Act with","page_number":145,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"6c153662-1895-468e-beb1-b327ca6e22b2","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":145,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"89ad9958-5fd4-4e50-995b-ea5b385b84b1","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":145,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"3868a5d4-55f9-4f0b-aef0-126258749d18","block_type":"box","text":"Pursuant to the Plans, a Fund may pay BRIL and/or BlackRock, or any other affiliate or significant shareholder of","page_number":145,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"d4b42f98-574c-4537-8e64-51e752902478","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":145,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"10b917eb-d2f8-4d8c-a8a3-bd703dcd1188","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":145,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"e256f47b-e16f-4853-8c05-32d899416ba7","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":145,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"c99473e8-a613-4151-81e0-3c8d4cef992c","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":145,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"4961e97a-bccf-41ed-b8c9-9b829ff6ac5c","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":145,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"e31124ae-061b-4a39-a519-a16944955a50","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":145,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"c99eec00-306b-471d-9db7-e86a59c9af95","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":145,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"9f30d295-a239-4576-ae80-2b394a00bf7c","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":145,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"cd998fab-7cb8-40ef-9d72-dd5f49ecd34d","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":145,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"c05b3cee-6912-43f4-8356-2c7c93ed1056","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":145,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"91018f88-5d9e-483e-9709-8aa949a036b3","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":145,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"eb7868e0-a103-4f65-ad6c-fd7dbe7c7d1a","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":145,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"036e604d-3ff4-4563-abb6-982eb138e0f2","block_type":"box","text":"Service and Class R Shares of a Fund. Such services are intended to supplement the services provided by the","page_number":145,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"15f24ab4-0c75-4d08-afa5-912bed164e2d","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":145,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"c66463b8-a65b-4db9-8adb-4402cc078825","block_type":"box","text":"The suppor t services provided by Service Organizations are general shareholder liaison services, which include,","page_number":145,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"0c3fb271-cfc4-4258-9ffa-5d7ecf3812c2","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":145,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"35500ec4-4024-4326-9c76-488870af9158","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":145,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"77043f4c-d373-4669-aee7-1ded5ba81f12","block_type":"box","text":"per taining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":145,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"1c147896-2c0e-4b11-99ba-b741cfc08f81","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":145,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"9aba29c3-3183-48eb-9d46-e1d9fca53be1","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":145,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"2363143b-4eb4-4c89-974a-cc0d2cb65d6b","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":145,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"fe312628-d962-4e8e-8d15-23f189f549dd","block_type":"box","text":"Payments under the Plans are based on a percentage of average daily net assets attributable to the shares in","page_number":145,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"851c9e72-273f-461b-986a-c9af830e7d84","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":145,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"f4c7b57c-64c5-4aba-9f4e-e38c835a1306","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":145,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"ec877a74-4505-42b1-9f2f-a40ebed35fcf","block_type":"box","text":"with respect to the related class. Information with respect to the payments under the Plans and expenses incurred in","page_number":145,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"ff77ba96-0f45-4ef9-875c-f09dea79f5f3","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":145,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"d346df7f-847e-45a5-8b7f-ced828b20b49","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":145,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"c8630eb3-5614-48f6-9bd3-7299efaf1e76","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":145,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"5ebcfdac-1ed4-4c01-8bf1-940888762754","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":145,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"07b16b4d-e098-4c35-8fb5-ebb16026a0b4","block_type":"box","text":"expenses, adver tising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":145,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"6cca34cb-3a5f-44ec-925f-ec4437f21791","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":145,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"aef034a4-b009-45ee-9f5d-8103ae18c409","block_type":"box","text":"compensation for selling different classes of shares.","page_number":145,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"6e1b7b8f-26a1-45af-a78d-de80ddcad44b","block_type":"box","text":"Each Plan is subject to the provisions of Rule 12b-1 under the Investment Company Act. In their consideration of","page_number":145,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"e61342df-b070-4d46-a88f-f580b9ff7082","block_type":"box","text":"a Plan, the Directors must consider all factors they deem relevant, including information as to the benefits of the Plan","page_number":145,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"2ce766ba-e9a3-4d4b-ae77-b8bb8fd072dd","block_type":"box","text":"to the Fund and the related class of shareholders. In approving a Plan in accordance with Rule 12b-1, the non","page_number":145,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"782b2732-6db1-4ea0-994e-126a741c8cd5","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":145,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"3c6e4a6c-7804-44e0-bd15-92919c42be6e","block_type":"box","text":"II-108","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"be97a6cb-6e1b-4e48-9215-479560439e64","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"100c2c29-9bc4-4c0c-b693-87e2509770f3","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":146,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"2bb40bfe-8030-4ca9-b4a2-7388d2e5edd4","block_type":"box","text":"repor ts regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":146,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"ff1b17dd-48c6-45d6-8919-b46fc635fccb","block_type":"box","text":"(ii) the Plan will continue in effect for so long as its continuance is approved at least annually by the Board of","page_number":146,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"0669eb6d-4a52-4d33-8b76-130583356eb0","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":146,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"d34abb1d-f4e4-4fc9-8d80-d37f82a332d7","block_type":"box","text":"Company Act) and who have no direct or indirect financial interest in the operation of the Plan or any agreement","page_number":146,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"cc45829f-b55c-48ba-9044-f8be2318b91a","block_type":"box","text":"entered into in connection with the Plan (the “12b-1 Directors”), acting in person at a meeting called for said purpose","page_number":146,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"b6ba2d52-c673-48b6-a4c2-9d3006da1294","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":146,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"41e6eef1-33aa-4041-8f16-3ba502e6b285","block_type":"box","text":"approved by the Board of Directors, including the 12b-1 Directors, acting in person at a meeting called for said","page_number":146,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"c95e5183-d5d2-4ac8-8461-c41a68295467","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":146,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"724cab04-91de-48cc-b100-8b342f9478b1","block_type":"box","text":"services pursuant to the Plan shall be effective only upon approval by a vote of a majority of the outstanding shares","page_number":146,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"9b2f6ad3-baa5-40bd-a3cc-22a482b77b27","block_type":"box","text":"of such class and by a majority of the Board of Directors, including the 12b-1 Directors, acting in person at a meeting","page_number":146,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"7c5ee79a-dc7a-4cb8-89f6-1c7367fd1b35","block_type":"box","text":"called for said purpose; and (v) while the Plan remains in effect, the selection and nomination of the Fund’s Directors","page_number":146,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"33d94ba3-9a2b-4b81-b411-9a6787a18fc2","block_type":"box","text":"who are not “interested persons” of the Fund shall be committed to the discretion of the Fund’s non-interested","page_number":146,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"5a130202-96cf-4b0b-be3c-ce6b07c71fda","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":146,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"7a0c715f-05a0-4287-a916-4fb82366071a","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":146,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"415444d9-80fd-4693-a0e8-77bcb81505c9","block_type":"box","text":"easily accessible place.","page_number":146,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"c1dfcfdd-856a-4415-83e4-e8d345e43dfb","block_type":"box","text":"Each Plan is terminable as to any class of shares without penalty at any time by a vote of a majority of the 12b-1","page_number":146,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"67286d33-1484-43b5-a4ba-37f377561048","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":146,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"4d4b88b1-ed20-4c40-96f1-c0d80f2847a3","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":146,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"68680374-e28d-4837-aedd-a2c781d26a96","block_type":"box","text":"information relating to the fees paid by your Fund to the Distributor under each Plan during the Fund’s most recent","page_number":146,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"f9a3cdf6-7325-414f-802d-db808b7833c6","block_type":"box","text":"fiscal year.","page_number":146,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"e2aea26c-1f55-40a3-941d-441bd4bed1a4","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":146,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"c1a92aee-2ea9-4e08-929d-1f62baaea62b","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":146,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"c0f3176c-f22c-4313-92d3-abb61d815e4b","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":146,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"1fdeb1ac-ef1b-4d23-a52f-7432dc651822","block_type":"box","text":"the distribution fee and the CDSC borne by the Investor C Shares. This limitation does not apply to the shareholder","page_number":146,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"9fd8ea0c-5016-4053-a28b-88e79581f0fd","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":146,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"fa70d0e7-b150-43ae-9ad0-c185c61274ee","block_type":"box","text":"distribution fee payments and CDSCs payable by a Fund to (1) 6.25% of eligible gross sales of Investor C and Class R","page_number":146,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"1d415f4a-9746-45b3-aaea-a16ee1df4ae3","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":146,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"a5cf4ffc-f447-40d9-aa21-4a556b390ca0","block_type":"box","text":"(2) interest on the unpaid balance for the respective class, computed separately, at the prime rate plus 1% (the","page_number":146,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"bbdee713-9418-4acf-ad5e-4e367e4e477f","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":146,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"52519af8-c659-438c-8020-fdca962dd63b","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":146,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"2e051664-3e54-4619-8f88-310913640c0c","block_type":"box","text":"for comparative information as of your Fund’s most recent fiscal year end with respect to, if applicable, the Investor C","page_number":146,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"4e3fe5f7-5cbe-42d5-ba07-848198594fa4","block_type":"box","text":"and Class R Shares of your Fund.","page_number":146,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"7ed87e6b-29f3-42f8-a015-112b60395101","block_type":"box","text":"Other Payments by the Fund","page_number":146,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"c575e741-5929-45ac-a169-fb7b03185afb","block_type":"box","text":"In addition to shareholder servicing fees that a Fund may pay to a Service Organization pursuant to the Plan and","page_number":146,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"24c745d5-3b3e-4bac-9165-2ec3ccd0328d","block_type":"box","text":"fees the Fund pays to its Transfer Agent, BlackRock, on behalf of a Fund, may enter into non-Plan agreements with","page_number":146,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"8c9957df-92a1-4a45-abf2-d9a7980e7e1c","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":146,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"1d3e8353-bfef-4b61-88d4-331446313aa6","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":146,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"e072b507-8c35-4acd-a770-dd39863aa483","block_type":"box","text":"generally based on either (1) a percentage of the average daily net assets of Fund shareholders serviced by a Service","page_number":146,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"70433b8c-3972-4e70-911b-065fec8ef546","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":146,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"1f8bd78d-c3b2-4951-9f4c-0d66e58b6063","block_type":"box","text":"of these payments may be substantial.","page_number":146,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"4c6e856a-ba12-43a2-b1df-36040250aa6a","block_type":"box","text":"Additional Payments by BlackRock","page_number":146,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"d30858f8-5779-42bb-a0ae-7658a83e67ae","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":146,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"f7bc0e4a-ed97-41e1-9b0b-e9e94364023a","block_type":"box","text":"may compensate Service Organizations for the sale and distribution of shares of a Fund, for services to a Fund and","page_number":146,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"f251a7ee-42ca-44eb-b018-a1b9c364e9ed","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":146,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"13e5ac50-d95c-487f-86cc-b91515f02607","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":146,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"7cc8c695-378e-4744-9026-762ac5983436","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":146,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"8c0a38ab-c41b-4e2e-b493-8c2415c9bf6a","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":146,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"6d1768af-91b2-4174-8b0d-c40750ab0d4d","block_type":"box","text":"paid by a Fund to BlackRock for various services, such as investment advisory services). These payments are not an","page_number":146,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"c5d886f3-d360-46b3-b810-9b576f12368a","block_type":"box","text":"additional charge to a Fund or its shareholders and do not change the price paid by shareholders for the purchase of","page_number":146,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"39ef5d93-09b3-4d59-b53d-e47829c0c32c","block_type":"box","text":"a Fund’s shares or the amount a Fund receives as proceeds from such purchases. Additional Payments made to","page_number":146,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"bc5c80d6-e955-48d3-837b-be568a4a30ba","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":146,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"9cbe8fad-523f-4d10-8e4a-9cdf0eb902cf","block_type":"box","text":"II-109","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e6c9de52-a8d3-4d48-a11c-867112082bb3","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f475f014-62e8-4c66-b45a-33ffeaf66d70","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":147,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"2881ed7d-4b3c-45eb-b767-3b38bf713f7a","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":147,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"16b45e5c-d0ec-4cba-9e4c-42b19b5be7a9","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":147,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"cba71fe2-9349-4d16-9b35-0f115cfc7db7","block_type":"box","text":"such payments in connection with the sale and distribution of Fund shares, are required to be disclosed. While FINRA","page_number":147,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"a8d2e135-0c9e-4a43-ab1d-77ede5267678","block_type":"box","text":"regulations limit the sales charges that shareholders may bear, there are no limits with regard to the amounts that","page_number":147,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"7748e582-8456-4fcb-b2cf-700ed3b2ca6f","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":147,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"20213cf6-692c-419f-859c-61033bff8889","block_type":"box","text":"Additional Payments may be made as a fixed dollar amount, may be based on the number of Customer accounts","page_number":147,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"484c4497-f7b9-4a4a-9cca-9715323b928e","block_type":"box","text":"maintained by a Service Organization, may be based on a percentage of the value of shares sold to, or held by,","page_number":147,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"1d6c26fc-a455-4129-9ca7-acb730f3d0b2","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":147,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"017369e6-2202-4f7e-a1b1-1b0e4f26474c","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":147,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"2d887d18-efbc-40d0-b79e-921c1d4f057f","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":147,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"fe3b4e5d-26de-4c02-97e0-d71e275c7478","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":147,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"92d59244-1131-4935-ac56-ece04908f2e6","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":147,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"4a06749a-4dc3-4eba-8e69-c956cea032ba","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":147,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"12b8a4fa-ecd5-4217-bc70-5c8bf2a18b97","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":147,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"a5aa3aa8-8aad-465d-84f9-d204ce669eec","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":147,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"5a9b0a4c-25c9-488c-b8c4-851507534418","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":147,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"6e5d668a-dc11-4c01-9870-5fa3ac211da1","block_type":"box","text":"cer tain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":147,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"5831aefc-9156-4732-8cf0-c19ad74eebe3","block_type":"box","text":"same Service Organization, or one or more of its affiliates, may receive payments under more than one category of","page_number":147,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"9e00ae17-37bd-4d9f-a135-c872ee2ab843","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":147,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"f0a3a44c-7d6f-44e9-8498-3a18ee1fbf9c","block_type":"box","text":"Funds.","page_number":147,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"d5ad8815-f13a-4f7c-8e25-0d021bc861ef","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":147,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"756ee09d-37e4-484d-9a64-a0f4530a1626","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. These","page_number":147,"box":{"x":101,"y":415,"width":740,"height":11}},{"id":"89dc80eb-e7a0-4403-bd3b-3b46b1420b2a","block_type":"box","text":"payments may take the form of, among other things, “due diligence” payments for a Service Organization’s","page_number":147,"box":{"x":70,"y":430,"width":764,"height":11}},{"id":"21e7bbaf-7746-4867-b3fc-c8b8f41c4486","block_type":"box","text":"examination of a Fund; payments for providing extra employee training and information relating to a Fund; fees for","page_number":147,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"a88a2469-c03c-43cd-a3e3-817980a2ebb1","block_type":"box","text":"access (in some cases on a preferential basis) to the Service Organization’s registered representatives,","page_number":147,"box":{"x":69,"y":460,"width":742,"height":12}},{"id":"6bac5252-4aff-45cd-bf8d-fe3938625f61","block_type":"box","text":"salespersons or other personnel, including at sales meetings and conferences; “shelf space” payments for placing","page_number":147,"box":{"x":69,"y":475,"width":820,"height":12}},{"id":"44107f22-e904-4d81-b5e9-ca6d553cb553","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":147,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"5caa863d-c87e-4004-834c-d720cfa489a2","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":147,"box":{"x":69,"y":506,"width":830,"height":11}},{"id":"301abebf-a745-4368-b0a3-a802b95b9053","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":147,"box":{"x":70,"y":521,"width":803,"height":11}},{"id":"3d1d81d2-8fbc-4e11-9602-84f558647fd6","block_type":"box","text":"include promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":147,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"7131d105-8663-41bf-b96a-c512703057a1","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of share balances;","page_number":147,"box":{"x":69,"y":551,"width":823,"height":11}},{"id":"7d0d51e6-c778-49d8-ad2f-b46c186e3ec5","block_type":"box","text":"transaction fees (also referred to as “ticket charges”); and payments for infrastructure suppor t. These payments","page_number":147,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"c4846628-42b0-4743-8c5f-864626cac0e7","block_type":"box","text":"normally will not exceed the sum of (a) 0.25% of such year’s Fund sales by that Service Organization, and (b) 0.21%","page_number":147,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"0f38b47a-7f62-40bc-8467-4ea2cf8e2dd9","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":147,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"d3c28ba6-ae48-4f45-9429-59736a47ec43","block_type":"box","text":"B. Shareholder Services","page_number":147,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"ddec55c6-db34-4c93-bcf3-7eceeaaf200c","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In these","page_number":147,"box":{"x":102,"y":642,"width":754,"height":11}},{"id":"65580f1c-cc45-4d30-b8f2-778870aa1a2e","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":147,"box":{"x":69,"y":657,"width":830,"height":11}},{"id":"ab87458c-ed43-432b-bda2-90cadc6f8982","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":147,"box":{"x":69,"y":672,"width":823,"height":11}},{"id":"a7ef57aa-dd19-430e-80f0-3c9bdfc8a49d","block_type":"box","text":"had been in the Customers’ names on the Fund’s books. Such services include sub-accounting services, shareholder","page_number":147,"box":{"x":69,"y":687,"width":839,"height":11}},{"id":"4c3edbae-43c4-47ae-9488-382cf7474764","block_type":"box","text":"servicing and transaction processing services and are sometimes referred to as “recordkeeping,” “sub-transfer","page_number":147,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"e7c08df9-67ad-4d69-816e-18dafa434cd3","block_type":"box","text":"agency,” “sub-accounting,” “networking” and/or “administrative” services. Additional Payments may exceed amounts","page_number":147,"box":{"x":69,"y":718,"width":837,"height":11}},{"id":"c0e44955-2c5f-4cab-84f6-fd46c023aea2","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":147,"box":{"x":68,"y":732,"width":828,"height":12}},{"id":"69908c75-3b9d-46a3-8f9e-e9531097bab8","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing and transaction","page_number":147,"box":{"x":68,"y":748,"width":827,"height":11}},{"id":"63bc86ae-3fba-4a29-aba4-06197986ab5d","block_type":"box","text":"processing fees paid by a Fund, as applicable.","page_number":147,"box":{"x":70,"y":763,"width":328,"height":11}},{"id":"8fda747b-a464-4b0f-a18b-8f6eeebf267f","block_type":"box","text":"C. Data Provision and Technology Suppor t","page_number":147,"box":{"x":102,"y":786,"width":299,"height":11}},{"id":"a176196f-c2b5-4146-bf87-ce2e9e9a7e3d","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of cer tain analytical or other","page_number":147,"box":{"x":102,"y":808,"width":805,"height":11}},{"id":"c91f0cab-8c0e-4244-b6c5-a09c225f7ab5","block_type":"box","text":"data services relating to the Funds, such as statistical information regarding sales of the Funds, or technology","page_number":147,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"6751410d-11dc-402b-b07e-0d5e9208fcd0","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":147,"box":{"x":69,"y":838,"width":821,"height":12}},{"id":"38cdc031-b378-4b7b-8733-345b339ea931","block_type":"box","text":"D. 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Service Organizations may charge their Customers additional fees in connection with the","page_number":151,"box":{"x":69,"y":618,"width":794,"height":11}},{"id":"1dc1d84b-33db-4a1c-86bc-88cda460f1f0","block_type":"box","text":"purchase or redemption of Fund shares or for account-related services which are in addition to the sales and other","page_number":151,"box":{"x":70,"y":633,"width":818,"height":11}},{"id":"18b7b99d-7e5d-4c3b-afe9-33d311b29db4","block_type":"box","text":"charges described in the Fund’s Prospectus and this SAI. Such charges may vary among Service Organizations but in","page_number":151,"box":{"x":69,"y":648,"width":836,"height":11}},{"id":"e16a34b6-08c8-4966-9750-2401d1a5f63e","block_type":"box","text":"all cases will be retained by the Service Organization and will not be remitted to a Fund or BlackRock.","page_number":151,"box":{"x":69,"y":663,"width":723,"height":12}},{"id":"755ae9f7-7c6e-44bf-9c28-82ad3dfcca15","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":151,"box":{"x":102,"y":686,"width":759,"height":11}},{"id":"910c590a-18c3-4365-8abc-415e7eaa9779","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":151,"box":{"x":69,"y":701,"width":760,"height":11}},{"id":"f13f049f-7dcf-4909-9d53-a5667370024f","block_type":"box","text":"appropriate.","page_number":151,"box":{"x":69,"y":716,"width":84,"height":11}},{"id":"86958c46-4967-4e30-a6f8-33f690d65505","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":151,"box":{"x":160,"y":716,"width":738,"height":11}},{"id":"a947a564-9140-4c9f-98a0-141170995d52","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":151,"box":{"x":69,"y":731,"width":795,"height":11}},{"id":"784c717d-8bf6-428d-ade7-247ceb24737a","block_type":"box","text":"described above.","page_number":151,"box":{"x":69,"y":746,"width":122,"height":9}},{"id":"dfcd3827-84d9-413c-8b14-e4d192a1a258","block_type":"box","text":"REDEMPTION OF SHARES","page_number":151,"box":{"x":385,"y":776,"width":208,"height":10}},{"id":"08d37834-756e-4e37-ba7c-3a13c26efa36","block_type":"box","text":"Shares normally will be redeemed for cash upon receipt of a request in proper form, although each Fund retains","page_number":151,"box":{"x":102,"y":799,"width":798,"height":11}},{"id":"5b95772a-0e5a-4ec2-b0f9-5d8862dca9ff","block_type":"box","text":"the right to redeem some or all of its shares in kind (valued in the same way as they would be valued for purposes of","page_number":151,"box":{"x":68,"y":814,"width":836,"height":11}},{"id":"e35ad232-58ac-49be-9c8e-95ec26c0aaa9","block_type":"box","text":"computing a Fund’s NAV), by delivery of securities and other assets selected from the Fund’s por tfolio holdings at the","page_number":151,"box":{"x":69,"y":829,"width":840,"height":11}},{"id":"8f5cf882-2a13-41c3-926c-9b88fb55f409","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in por tfolio securities and other assets rather","page_number":151,"box":{"x":70,"y":844,"width":814,"height":11}},{"id":"402fd4b7-9156-4af7-8f55-a883c81ef032","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":151,"box":{"x":68,"y":859,"width":809,"height":11}},{"id":"573b8c57-b082-4e9e-9b12-b923e775fa77","block_type":"box","text":"able to accept securities in kind, and may also be used in stressed market conditions. If this occurs, the redeeming","page_number":151,"box":{"x":69,"y":874,"width":827,"height":12}},{"id":"e9140395-fe91-42c3-884a-6603005c8e16","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to conver t the securities and other assets to cash. Each","page_number":151,"box":{"x":69,"y":890,"width":839,"height":11}},{"id":"e79ceb35-4a79-4d04-9a6d-cc4b68122d4b","block_type":"box","text":"Fund has elected, however, to be governed by Rule 18f-1 under the Investment Company Act so that the Fund is","page_number":151,"box":{"x":70,"y":904,"width":797,"height":12}},{"id":"df86e1df-0e58-4ffa-95f7-16169a56ee86","block_type":"box","text":"II-114","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f56e8bb1-ff5d-4918-9588-e32089a6f611","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":151,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a21a9acf-52e1-4ad7-83b4-075388e7bb84","block_type":"box","text":"obligated to redeem its shares solely in cash up to the lesser of $250,000 or 1% of its NAV during any 90-day period","page_number":152,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"60e20555-131f-4c7b-a459-0bc361a79d16","block_type":"box","text":"for any shareholder of the Fund.","page_number":152,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"2c4d6f11-32bd-4804-be67-34258f444546","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":152,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"5decf925-d4f0-48e0-b02b-4c13356bc8d1","block_type":"box","text":"redemption. The value of shares of each Fund at the time of redemption may be more or less than your cost at the","page_number":152,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"592257e0-e71b-4e81-9038-aca648ecfb7d","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":152,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"eb6019dc-e346-4c3b-b93f-4347514b5f0d","block_type":"box","text":"any CDSC that may be applicable, there will be no redemption charge if your redemption request is sent directly to","page_number":152,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"0d727c03-6779-4aa0-b614-729e5cb4ba53","block_type":"box","text":"the Transfer Agent. If you are liquidating your holdings you will receive all dividends reinvested through the date of","page_number":152,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"f957c27a-fbcd-4b52-a233-9cdd69c0e426","block_type":"box","text":"redemption.","page_number":152,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"3df60a44-aca2-4702-9f45-0c1e182b1170","block_type":"box","text":"The right to redeem shares may be suspended or payment upon redemption may be delayed for more than seven","page_number":152,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"2dc22c96-41d6-43cd-a185-525b78459896","block_type":"box","text":"days only (i) for any period during which trading on the NYSE is restricted as determined by the Commission or during","page_number":152,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"560a02b1-e890-4c63-a6c4-6ca56d1726d2","block_type":"box","text":"which the NYSE is closed (other than customary weekend and holiday closings), (ii) for any period during which an","page_number":152,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"3b5e8c70-e159-4291-aaba-fadb1626d88b","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":152,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"ae8bd255-19d4-4a26-b1a6-b00e89034fa7","block_type":"box","text":"determination of the NAV of a Fund is not reasonably practicable, or (iii) for such other periods as the Commission","page_number":152,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"30f6edcf-fec2-445c-adb8-87620fbcbabc","block_type":"box","text":"may by order permit for the protection of shareholders of the Fund. (A Fund may also suspend or postpone the","page_number":152,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"3cd42e13-65a2-4b58-ad5c-34561a760ea1","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":152,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"ec50edc9-9474-485e-b579-dbf8825d9f1a","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":152,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"349dd0ee-bf6f-4594-a2b5-2fefdbad24c9","block_type":"box","text":"credit with a syndicate of banks that is intended to provide the Fund with a temporary source of cash to be used to","page_number":152,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"ba931551-cb9f-40d6-97c7-a8a19e0b64c3","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":152,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"d4a6e58b-37e1-4766-995d-8484939e9781","block_type":"box","text":"Each Fund may redeem shares involuntarily to reimburse the Fund for any loss sustained by reason of the failure","page_number":152,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"bde02969-4dc5-43bb-ad8c-036b4a0230a3","block_type":"box","text":"of a shareholder to make full payment for shares purchased by the shareholder or to collect any charge relating to a","page_number":152,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"b0e5fe14-5f14-4e00-a424-9684071e33ac","block_type":"box","text":"transaction effected for the benefit of a shareholder. Each Fund reserves the express right to redeem shares of the","page_number":152,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"d4efb1d9-be03-433f-b99a-82642f86ea79","block_type":"box","text":"Fund involuntarily at any time if the Fund’s Board of Directors determines, in its sole discretion, that failure to do so","page_number":152,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"2395f33e-3bf1-4daf-813a-1df1e5f4b306","block_type":"box","text":"may have adverse consequences to the holders of shares in the Fund. Upon such redemption the holders of shares","page_number":152,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"c9e98562-6bc3-4ee2-9c88-72807c035963","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":152,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"f8d918e9-ba5b-42a6-8aeb-2886500fc422","block_type":"box","text":"Redemption","page_number":152,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"91a950fc-e513-46eb-ad8b-3af0fa5c8ffc","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":152,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"b3f8e019-8677-4323-a8c4-77e07fa4ed50","block_type":"box","text":"Redeem by Telephone:","page_number":152,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"c732d007-4f30-441f-90f1-d15eba19915e","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":152,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"80a74356-74e8-4c70-bd0d-91c4e101be7c","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":152,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"441d0a71-0501-41e1-833d-fdd6b14450a4","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":152,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"a158e598-b736-4afe-b548-dc7b7cc3a261","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":152,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"a031c6f2-c39b-45d4-8ab1-8828fd8b653e","block_type":"box","text":"verified banking information on file; or (ii) the proceeds are not paid to the record owner at the record address, must","page_number":152,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"690f1911-d650-4e7a-8a12-f9dbf332b5cd","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":152,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"c6a7930d-393b-48fc-a650-91e698b9e2be","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":152,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"98036b6f-c0df-47cb-aa85-57410c57fe0c","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":152,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"15dd030f-ad11-4b7a-abe0-83e10b75081f","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":152,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"ba7351f1-9566-4536-9fe6-c6716b89bde5","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":152,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"b9a4d2cd-86a6-4d73-a7de-599921487599","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":152,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"3f44b554-d983-4eb4-857a-cfabab1a934d","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":152,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"a746e2aa-86e5-4fb2-bb1b-6241a891e63f","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":152,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"0cd74e8a-74ef-4a3d-8cce-f964fb13b84b","block_type":"box","text":"will not be accepted. A notary public seal will not be acceptable. Generally, a properly signed written request with any","page_number":152,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"6cb2b3f6-e45a-47a0-b7ef-4446ebeb2cac","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":152,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"8e24185f-1c83-4866-bf47-7534d1d51ee5","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":152,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"4dd9ac7a-b3ee-4f7e-970c-5fbe3c000015","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":152,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"39982c00-389c-4063-bc31-ac6e7285f4ca","block_type":"box","text":"If you make a redemption request before a Fund has collected payment for the purchase of shares, the Fund","page_number":152,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"ed2a28b6-71f0-4ea9-a29a-7c57172b9c63","block_type":"box","text":"may delay mailing your proceeds. This delay will usually not exceed ten days. A Fund, its Administrators and the","page_number":152,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"c46adec6-df96-4d10-bfb8-30996b32b180","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":152,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"651e02a3-b681-4392-932b-3d4e99612ae7","block_type":"box","text":"Telephone redemption requests will not be honored if: (i) the accountholder is deceased, (ii) the proceeds are to be","page_number":152,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"166f5d57-3c90-4d79-94f9-532afdc735f5","block_type":"box","text":"sent to someone other than the shareholder of record, (iii) a Fund does not have verified information on file, (iv) the","page_number":152,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"e8f5075d-3ebf-4703-87f3-a9bdf04a1e42","block_type":"box","text":"request is by an individual other than the accountholder of record, (v) the account is held by joint tenants who are","page_number":152,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"95a64565-d1a0-4a59-b44b-ae9b34eb1e2b","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":152,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"5706a0b1-2ad4-4bd6-bd3c-aa356ed2fc2a","block_type":"box","text":"on the account, or (vii) to protect against fraud, if the caller is unable to provide the account number, the name and","page_number":152,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"34b0d5f0-d194-4c7e-981c-14cf2d152349","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":152,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"fccbf089-763d-451e-a6a1-7efe2a0dcc30","block_type":"box","text":"service providers will not be liable for any loss, liability, cost or expense for acting upon telephone instructions that","page_number":152,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"0ba9902d-d37c-4cb2-b717-d104f09b1177","block_type":"box","text":"II-115","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"db09fb3e-3011-48d6-a4ac-6eefced14d2d","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d6c731c4-9f05-481e-8874-f4234ba442fe","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":153,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"5d2d060d-331f-4622-9539-53d6601ab664","block_type":"box","text":"honored, signature approval from all shareholders of record on the account must be obtained. The Fund may refuse a","page_number":153,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"9075d88d-4275-4fc2-b9b8-dad74b86affd","block_type":"box","text":"telephone redemption request if it believes it is advisable to do so. During periods of substantial economic or market","page_number":153,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"6cf6c9d7-fad7-492a-8b00-daf7591b511a","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":153,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"09e577c3-b300-438c-9056-79526b69999f","block_type":"box","text":"Redemption orders for Institutional Shares placed prior to 4:00 p.m. (Eastern time) on a business day will be","page_number":153,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"be941dc8-be70-4083-b4ae-de57172ecf6a","block_type":"box","text":"priced at the NAV determined that day. If redemption orders are received by 4:00 p.m. (Eastern time) on a business","page_number":153,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"378e74f4-9b06-48ed-b226-65f0cee2a733","block_type":"box","text":"day, payment for redeemed Institutional Shares will normally be wired in Federal Funds on the next business day. If","page_number":153,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"f95ba083-1d3b-4b96-8bc2-6d69658c4fa9","block_type":"box","text":"the Federal Reserve Bank of Philadelphia is not open on the business day following receipt of the redemption order,","page_number":153,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"40a1fa50-858d-4354-b404-258afde1bd0b","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":153,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"877efcf4-4b70-46cc-9727-2c204278c96e","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":153,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"4c5bde5d-ed8b-4d57-a054-2f66511e1157","block_type":"box","text":"Redeem by VRU:","page_number":153,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"3f8626e8-85cf-4816-a446-9b369bfd4824","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":153,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"1648da46-db81-4da3-91af-209385a32fb1","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":153,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"903f943b-bc97-48e9-af70-eb0b67e8d5b4","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":153,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"647f8ff2-d409-4e55-b4aa-2336ed4db32a","block_type":"box","text":"Redeem by Internet:","page_number":153,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"6d7cb20c-b111-464a-9bd6-09db1ab27778","block_type":"box","text":"Cer tain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":153,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"9b183ce6-2d46-4727-9e2a-17f3a3992df2","block_type":"box","text":"BlackRock website at www.blackrock.com. Proceeds from Internet redemptions may be sent via check, ACH or wire to","page_number":153,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"f505573d-5ca0-4ec7-abdf-5352f1b45c71","block_type":"box","text":"the bank account of record. Payment for shares redeemed by Internet may be made for non-retirement accounts up","page_number":153,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"b933044f-b103-479a-a950-57e3be623711","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":153,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"bb7dcbcf-95ed-46c1-a6c2-e45fc2d82829","block_type":"box","text":"institutional investors.","page_number":153,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"1ff03078-3e76-470b-837c-9dbe5c38230b","block_type":"box","text":"Redeem in Writing:","page_number":153,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"f19a0aed-5b4a-4416-9310-4a241f60591c","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":153,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"45bfbe9a-0f3e-4c34-aad2-35d7c3effd4f","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":153,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"a2c7403e-aa14-43ea-81ea-6823b3a0cef7","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":153,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"4ff9cb5f-bece-4cde-8ce4-d2a6ac545775","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":153,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"4b6f2504-9862-418d-837c-9d42d54f60a6","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":153,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"cd155901-095f-4d46-b6f7-32e6f47e4d8f","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":153,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"3dca12f1-2e80-480b-b936-2fa7d148d5f8","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":153,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"1c019320-a0e1-4293-b69d-0d1ce6b7b6cb","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":153,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"3c123a92-ee95-44e8-b583-56fa253a3324","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":153,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"565e75ae-a8aa-45ff-8cc8-ad6a96d2d172","block_type":"box","text":"or wire to the bank account of record.","page_number":153,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"bff46e7c-520b-4654-8be8-afb082a72df2","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":153,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"65f87daf-81f8-4d82-a546-818255eea654","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":153,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"94e2f8d1-5ad2-425e-9de6-0a95a227c5f0","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":153,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"cc94aae6-8127-4cb9-91d0-f5fc9c5ba6ad","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":153,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"6f9a86e3-5109-48ff-9796-8b0eff4eea27","block_type":"box","text":"of receipt of the proper notice of redemption. A Fund may delay the mailing of a redemption check until good payment","page_number":153,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"b1f2e048-61c5-419a-a48f-6f4e06dab674","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":153,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"d8e85def-a012-44e9-992e-7403f9f7c4d7","block_type":"box","text":"shares, which delay will usually not exceed 10 days. If your account is held directly with the Transfer Agent and","page_number":153,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"305676ba-32a5-4554-85be-b543e13f1d96","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":153,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"b9ce3fcb-2068-4d87-af20-d1fb992b78a9","block_type":"box","text":"redeemed by the Fund.","page_number":153,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"bd1d46c4-9ae5-4bf7-8b2f-b5261ca0accb","block_type":"box","text":"Note on Low Balance Accounts.","page_number":153,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"67e0fc5e-6e82-461b-8aff-67f94a511b33","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":153,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"84fde7e7-f1eb-43fa-90ea-67c2d6452e50","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":153,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"acb110c2-f388-444e-bfbb-b103f5438ba3","block_type":"box","text":"Minimum”), and may redeem the shares in your account if the NAV of those shares in your account falls below $500","page_number":153,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"aade15f0-3e79-42ac-b426-ff1551248580","block_type":"box","text":"for any reason, including market fluctuation.","page_number":153,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"30c18a41-431e-42bf-aece-9be1917258dc","block_type":"box","text":"You will be notified that the value of your account is less than the Fund Minimum before the Fund makes any","page_number":153,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"72ebd98c-ec3f-4245-826b-a6b7dcf60d0f","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":153,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"c31083ed-cceb-4bae-bddc-5cdc0209d597","block_type":"box","text":"investment in order to bring the value of your account to at least $500 before the Fund makes an involuntary","page_number":153,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"a0dc4e01-2012-40e6-8481-7665027baaa8","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":153,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"c80f6abf-0bdb-45c8-8d1d-178a1798afdc","block_type":"box","text":"cer tain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":153,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"272f77ae-07f9-4e37-96df-0e5c389d0796","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":153,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"2652efb5-9b91-4f20-a486-eb47e292b793","block_type":"box","text":"Redemptions in Kind:","page_number":153,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"01772dd2-f4d6-44e0-9278-b63a9f0abc98","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":153,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"c66c519c-59b8-4584-be6f-4edcdd04e404","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":153,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"eb175df2-7d10-444e-9e59-8191d31f1b69","block_type":"box","text":"Fund’s NAV, except that each Fund is obligated to redeem shares solely in cash up to the lesser of $250,000 or 1%","page_number":153,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"40f09ae3-4a75-485b-8b24-2eeed483092c","block_type":"box","text":"of the Fund’s NAV during any 90-day period for any one shareholder. Redemptions in excess of those amounts will","page_number":153,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"abd91286-7e60-4be6-b4bc-bdf4fb593dcb","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":153,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"9a4ea97d-5abc-4a0d-8da2-5177fb0766d1","block_type":"box","text":"II-116","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f51a5320-b23c-48b7-9118-69f9c8d9173a","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"49f70b8f-b606-4b3d-b0e9-bd61470e037e","block_type":"box","text":"The specific security or securities to be distributed will be determined by the Manager and could include a pro","page_number":154,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"658e9574-e5b1-4e97-a0fb-7a678cb5f52c","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":154,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"adb1eb74-4987-4ca8-a331-948c3182d90c","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":154,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"d617c7a2-7c0e-459a-999f-a9bc600b1d64","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":154,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"02a7b329-47f5-43f8-931c-da1c12e358f5","block_type":"box","text":"considering cer tain factors, including, without limitation, the por tfolio management team’s model or optimal por tfolio,","page_number":154,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"e18c4fa7-0325-4aff-9b9f-5b196b0c56f6","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":154,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"961d3cb9-022f-4559-adb8-76dfda431042","block_type":"box","text":"liquidity of the securities, and the tax basis of the securities. There is no assurance that BlackRock will select to","page_number":154,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"65d334ec-cdca-43a4-b3d8-4fea9abb0ad0","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":154,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"5955a7d5-fa83-4355-8328-9e5682bbbf3c","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":154,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"01c18ee1-e9d3-48c6-9103-bb8815260724","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":154,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"b883de2d-2720-43d1-940f-af20e9dfc751","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":154,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"af8bfbdf-1c52-4ef2-a969-3059190f4567","block_type":"box","text":"efficiently or for any other por tfolio management purpose, and (b) externalize cer tain transaction costs that would","page_number":154,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"dcf9c7a6-d2c8-4513-9f1b-467418336a88","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":154,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"0433d6c6-aac0-42ba-8bac-a794899c341b","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":154,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"ade5903b-969c-4172-a416-20f9255b6e41","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":154,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"b99a97ce-436e-42ef-95ee-e226d57a0f92","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":154,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"5917ff24-61cc-4859-b739-a19130b9a57d","block_type":"box","text":"redemptions in kind can or will be effected when they would be beneficial to a Fund, and it may be impractical or","page_number":154,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"01d061ce-306c-44be-8f58-7d9713038f28","block_type":"box","text":"impossible to effect redemptions in kind with many or substantially all of the Fund’s shareholders because of, among","page_number":154,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"48f1764d-3ae9-4a35-91a8-00223ea376e4","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":154,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"ea74b917-df83-48a5-983e-96700d8e9f96","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":154,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"3de58238-3a29-4f7f-854d-8543d4d484ca","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":154,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"c0aee139-2238-420a-bc31-ee5d9099d7a5","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":154,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"803ad41f-fd8f-46cd-a776-7212b45121b1","block_type":"box","text":"kind rather than in cash. A Fund’s ability to pay these redemption proceeds in kind relieves the Fund of the need of","page_number":154,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"4f567f37-5e4c-4edd-9434-076e855e666a","block_type":"box","text":"the Fund to sell the securities that are distributed in kind and incur brokerage and other transaction costs associated","page_number":154,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"323af1da-0dda-4ca2-a5e0-1301d77d5fe5","block_type":"box","text":"with such sale, and may have the effect of reducing the amount of taxable gains the Fund would otherwise be","page_number":154,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"13549e15-cb32-4f90-9cc2-a870557f1952","block_type":"box","text":"required to distribute to shareholders. A Fund’s ability to engage in such transactions is subject to, among other","page_number":154,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"f976a989-49e6-4d83-818d-7dfebcdc12ae","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":154,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"67f90231-8481-4bf2-b711-1adce6b680aa","block_type":"box","text":"to transact in kind, and there is no assurance that the Fund can or will effect any redemptions in kind. Financial","page_number":154,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"f0fb5b17-833a-490f-9d14-f2227b4746b7","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":154,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"6d119ba2-62af-4436-a971-9322f0a56681","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":154,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"03709947-3963-4c38-a92f-b5485c8a2df2","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":154,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"923c6ebc-ba03-455d-9257-70bb80d92005","block_type":"box","text":"and brokerage and other transaction costs to dispose of the securities. You may also receive less for the securities","page_number":154,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"1f9526f0-18b1-4b69-bff4-4486a5449ae8","block_type":"box","text":"than the price at which they were valued for purposes of effecting the redemption. There may also be a risk that","page_number":154,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"6d542a1b-e41b-4c25-baa7-87686a77e2ef","block_type":"box","text":"redemption in kind activity could negatively impact the market value of the securities distributed in kind and, in turn,","page_number":154,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"e1c8ab3d-2413-4cc9-94f2-5453b1785780","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":154,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"daa1463f-94b4-4212-8fce-a65d643d3a29","block_type":"box","text":"Repurchase","page_number":154,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"f16d8d17-5923-4ec9-ac6b-c6ea782c9211","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":154,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"b9b2061b-1c75-4bc0-ab1d-6c85168bcaca","block_type":"box","text":"priced at the NAV of the Fund next determined after receipt of the repurchase order by a Selling Dealer that has been","page_number":154,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"286c11a6-033a-49c5-9fed-0c733015fe71","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":154,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"7973b4e4-1942-4c30-98bd-a1a11c316fb7","block_type":"box","text":"prior to the close of business on the NYSE (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the","page_number":154,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"e4bb1c73-69a5-4a9f-a8e3-b6210daa52d8","block_type":"box","text":"order is placed, which includes orders received after the close of business on the previous day, the repurchase price","page_number":154,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"a208e025-3b92-4209-be2c-63e97ef99dcc","block_type":"box","text":"is the NAV determined as of the close of business on the NYSE on that day. If the orders for repurchase are not","page_number":154,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"21edd529-6e6c-4d50-9b4d-ea6f9a0712ad","block_type":"box","text":"received by the Selling Dealer before the close of business on the NYSE, such orders are deemed received on the","page_number":154,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"41e09064-1b15-4af1-8282-33069b478001","block_type":"box","text":"next business day.","page_number":154,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"bac60fd3-83ef-46b9-961a-77eeb3b40cc5","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":154,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"b85dd290-cd14-475b-89cb-4975acddc328","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":154,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"8bc7af8a-2473-4253-9756-1758af91f4d6","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":154,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"36bb7984-a10d-4ae4-8b5b-819ec97c5720","block_type":"box","text":"impose a transaction charge for transmitting the notice of repurchase to the Fund. Each Fund reserves the right to","page_number":154,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"ab0ce56f-69ae-49fd-8fb7-4826eebd0336","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":154,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"3e65bb5b-20f0-4c88-bddb-e0c95e42d1be","block_type":"box","text":"redeem shares as set out above.","page_number":154,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"92cc035e-f48f-4548-8029-d2d06cc3e559","block_type":"box","text":"II-117","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6d59ef02-5d9d-4338-8e52-ccb322167e05","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":154,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"853818bd-4326-4af9-a1ab-13217c4a5328","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":155,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"872fcf6e-1165-428f-adfc-2c2efad2d0cf","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":155,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"5e0aac82-87ad-4319-83c5-49b299b2964e","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":155,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"22e7dbdb-7bfa-4ce0-9d4e-a03cac5399a9","block_type":"box","text":"Shares of the same or another BlackRock fund without paying a front-end sales charge. This right may be exercised","page_number":155,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"bd977825-1447-4f57-aa90-98a12f3bf4bc","block_type":"box","text":"within 90 days of the redemption, provided that the Investor A or Investor P Shares, as applicable, of that fund is","page_number":155,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"60884ead-a62d-49e0-b8b3-8164d4f450c9","block_type":"box","text":"currently open to new investors or the shareholder has a current account in that closed fund. Shares will be","page_number":155,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"ad57b8cd-17a4-467c-b1c3-04872a9ebece","block_type":"box","text":"purchased at the NAV calculated at the close of trading on the day the request is received in good order. To exercise","page_number":155,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"8ef20771-90c8-4cee-b371-ce7537088a30","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":155,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"ec690348-ab66-4097-adc9-0764ee4c008c","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":155,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"08437c7e-37d5-4a65-b205-aa01e8035e25","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":155,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"6d06e9e4-38bf-40a4-bc2a-1228a7247509","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":155,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"cce8fb7a-53d0-4094-8ed1-3d45c758b96d","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":155,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"bf26d97d-8cd8-4f46-a91a-c15027b590e8","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":155,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"a3974baf-2727-4a78-98f2-c3edd4f5c46d","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":155,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"d4a1e124-c59d-42cb-94a3-87e081e8137d","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":155,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"538b00bf-19e6-4b2c-ae5f-6229f9a03d34","block_type":"box","text":"Investment Account","page_number":155,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"d4b497a2-62bd-4ee9-8951-5052261a34ea","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":155,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"d4442d2d-7dcf-4d62-a0ce-821a5890ded4","block_type":"box","text":"least quar terly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":155,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"98c909c9-b879-4b29-b5cc-79fb66184351","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":155,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"cbeb2d58-a528-4495-ba03-3ee3a81e6bee","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":155,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"ba8f7903-60a2-45b5-a642-d6d1168b465b","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":155,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"09c85097-ad2c-45f5-8e96-2bc1bf5b07c6","block_type":"box","text":"the Transfer Agent you may make additions to it at any time by mailing a check directly to the Transfer Agent. Each","page_number":155,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"8030b4ae-dd0f-4713-b622-afd65939120c","block_type":"box","text":"Fund limits purchases by personal check to $500,000 per trade. You may also maintain an account through a","page_number":155,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"b4f0c772-d77d-4ed4-baef-27de3fc69f96","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":155,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"7c5d647d-b437-42fa-a2ca-ca0587fc2b53","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":155,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"5c67d663-1004-4bec-9ea1-e887c67f88df","block_type":"box","text":"automatically at the Transfer Agent.","page_number":155,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"85cfda90-6c5f-476b-bdc2-f7b248d0d425","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":155,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"ed645c91-981f-4a88-b62e-1c414401da19","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":155,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"eed5d44b-55e4-4229-81f1-b3f089da26ae","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":155,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"1e40779d-90a5-452a-a2eb-268d5e8404d0","block_type":"box","text":"coordinated by the new firm. If you wish to transfer your shares to a securities dealer or other financial intermediary","page_number":155,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"168cdc43-259b-4569-b055-864bfb7ca535","block_type":"box","text":"that has not entered into an agreement with the Distributor, you must either (i) redeem your shares, paying any","page_number":155,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"daea2978-cfe5-4d60-a717-915f27229b4e","block_type":"box","text":"applicable CDSC or (ii) continue to maintain an Investment Account at the Transfer Agent for those shares. You also","page_number":155,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"8036cf35-1c8c-442f-8686-f623a991dc03","block_type":"box","text":"may request that the new securities dealer or other financial intermediary maintain the shares in an account at the","page_number":155,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"90e66459-9cef-4a22-8a03-66b4370c57a8","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":155,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"d6cc4a16-b2ef-4047-9aa4-6ed6f8137bd2","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":155,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"a4c6bc3d-1886-475e-9544-93fdc775921c","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":155,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"154f0ab8-1aec-459c-ae30-bb7e39d1f961","block_type":"box","text":"not be issued physically. Shares are maintained by each Fund on its register maintained by the Transfer Agent and","page_number":155,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"a812c059-5c03-4167-804d-bd34fe5b7939","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":155,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"a1e1a18a-a1d8-422d-8c6e-b12f5a52b72f","block_type":"box","text":"issued.","page_number":155,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"0bdd864e-59c9-4bec-95df-738b17cbbc99","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":155,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"73bae613-1f8c-4fe9-8b88-9dad7c726e74","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":155,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"8787d51e-d585-4740-834c-2b5d02ef154b","block_type":"box","text":"that if the new firm will not take delivery of shares of the Fund, you must either redeem the shares (paying any","page_number":155,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"961c9268-4a82-45c0-a02f-c0850e2598f6","block_type":"box","text":"applicable CDSC) so that the cash proceeds can be transferred to the account at the new firm, or you must continue","page_number":155,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"72fd27f8-aacc-4af2-9e3a-d169c37b9046","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":155,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"54bc3607-06e9-47e7-b25c-dbaf9a4ff0cb","block_type":"box","text":"Exchange Privilege","page_number":155,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"0daf4f92-c869-4d78-acb4-1272e60ee331","block_type":"box","text":"U.S. shareholders of Investor A, Investor A1, Investor C, Investor P, Class K, Institutional and Class G Shares of","page_number":155,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"198cb876-4b56-4b4a-abd5-70d989e1afb0","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":155,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"9e588efe-6f50-4498-9114-5d34bdaaafd8","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":155,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"265916fb-9867-42ed-b29f-206895067bbc","block_type":"box","text":"$1,000 if you already have an account in the Fund into which you are exchanging. You may only exchange into a","page_number":155,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"c9fbaf28-7c12-44ea-b3c7-7ead5b790cac","block_type":"box","text":"share class and a Fund that are open to new investors or in which you have a current account if the class or fund is","page_number":155,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"e91388ab-c3e4-4882-8bc4-a585b9fe7039","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":155,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"dc6e3cd1-eddf-460d-8cac-475deb09bb26","block_type":"box","text":"II-118","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1feb986a-7bf4-41ec-b313-03bda56b4a95","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":155,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f5ca8017-b735-436f-b6e8-a3807024edc7","block_type":"box","text":"into which you wish to make the exchange. Exercise of the exchange privilege is treated as a sale of the exchanged","page_number":156,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"1afa081d-1c1b-4d12-b6a8-214319cf4320","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":156,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"fa5c3051-fe9a-4448-a062-38ab85f3c086","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":156,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"9ca971fa-cbea-491d-a621-dff56c17cf8a","block_type":"box","text":"Institutional Shares","page_number":156,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"899b7477-ff5b-4e14-b718-3d486053e588","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":156,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"0e398476-4ba1-4427-9bad-7c797e24dc65","block_type":"box","text":"Investor A Shares of other Funds to the extent such shares are offered by your financial intermediary. Investor P","page_number":156,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"c5eadfb1-3153-450c-9e4a-09bc21129c2f","block_type":"box","text":"Shares are exchangeable for Investor P Shares of other Funds, to the extent such shares are offered by your financial","page_number":156,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"bfb9b642-6d0e-4bf4-b6f1-0f7148eee4d7","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":156,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"0052412c-8468-41d4-937e-44a2d3592bec","block_type":"box","text":"for Class G Shares of other Funds.","page_number":156,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"fe96f139-56fe-4c1d-8765-64aeddb9b814","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":156,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"0e4716be-c0f8-4963-947a-2110a3d74c5a","block_type":"box","text":"market fund are effected on the basis of relative NAV per Institutional Share. Exchanges of Investor A or Investor A1","page_number":156,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"41a5118e-e4f4-4534-a337-ece1862485ba","block_type":"box","text":"Shares outstanding (“outstanding Investor A Shares”) for Investor A Shares of a second fund, or for shares of a","page_number":156,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"d55f6c37-f0b3-46dc-901b-9de98bb31ed7","block_type":"box","text":"money market fund (“new Investor A Shares”) are effected on the basis of relative NAV per share. Exchanges of","page_number":156,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"bdc342ff-15af-45f4-9a8c-e89d8f8d0f22","block_type":"box","text":"Investor P Shares outstanding for Investor P Shares of a second fund are effected on the basis of relative NAV per","page_number":156,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"364ee16b-b0f7-4dab-a12c-9c9ab5afc357","block_type":"box","text":"share. Exchanges of Class K Shares outstanding for Class K Shares of a second fund, or for shares of a money","page_number":156,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"f790e3d7-fe44-429a-9c3e-80f49c260a06","block_type":"box","text":"market fund are effected on the basis of relative NAV per share. Exchanges of Class G Shares outstanding for Class","page_number":156,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"f61bb8be-009a-4dad-9e72-d891c55cadae","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":156,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"bc46b680-272d-4627-a970-ece03870ab5d","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":156,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"4cebe47f-e577-410a-95c1-0914d9b7f317","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding (“outstanding","page_number":156,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"f84f350c-2eb9-4a4e-ab30-de9ffaf391b4","block_type":"box","text":"Investor C Shares”) may exchange their shares for Investor C Shares of a second Fund (“new Investor C Shares”) or","page_number":156,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"d37446bf-9ed0-48e8-89bd-cec53e588a5a","block_type":"box","text":"for shares of a money market fund (“new money market fund Shares”) on the basis of relative NAV per share, without","page_number":156,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"14e691e1-4b11-4ace-915f-9c3ba4c93d5d","block_type":"box","text":"the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":156,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"0d6081c1-f3f3-4c1e-a3bc-e4e4ecc4a523","block_type":"box","text":"upon redemption of new Investor C Shares or new money market fund Shares, as applicable, the time you held both","page_number":156,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"0328dce3-b803-4951-8188-7e647ae4cef7","block_type":"box","text":"the exchanged Investor C Shares and the new Investor C Shares or new money market fund Shares will count","page_number":156,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"328f8310-f542-4d89-b30b-b33ffcb1e559","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":156,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"0bdcbc1c-b1de-4c1a-ae58-774c4ba10300","block_type":"box","text":"Exchanges of Service Shares.","page_number":156,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"8c87f355-348a-40a9-ab9a-e2d18cb64a7e","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":156,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"78acc36d-4fbd-4cd0-adc7-2364c61e787e","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":156,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"fc1d456c-cc2b-42a9-8d13-19bcabf7268a","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":156,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"070d9ac9-dd8a-4b5b-b06d-502b9939f599","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":156,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"08026b30-2f27-4884-b8ed-86f034277fbd","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":156,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"dd97bb38-4be9-444b-b9e1-c8ec4187ac2d","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":156,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"ace81e31-d07c-4e09-be3c-c51988c9eb50","block_type":"box","text":"classes of shares: exchanges of Investor A, Investor A1 and Institutional Shares of a Fund will receive Investor A","page_number":156,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"fb014cf5-769b-4ed2-b40b-ac28c8f688da","block_type":"box","text":"Shares of Summit and exchanges of Investor C Shares of a Fund will receive Investor C Shares of Summit. You may","page_number":156,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"d2105c6f-4e63-47f6-9a87-886f35beb8dd","block_type":"box","text":"exchange Investor A Shares of Summit back into Investor A or Institutional Shares of a Fund, if you are eligible to","page_number":156,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"bdad98cc-955b-4ba6-84e3-ce98e7db774f","block_type":"box","text":"hold such shares. You may exchange Investor C Shares of Summit back into Investor C Shares of a Fund and, in the","page_number":156,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"ef0b2e0d-579a-4c95-8a3b-daded8d1cdb2","block_type":"box","text":"event of such an exchange, the period of time that you held Investor C Shares of Summit will count toward","page_number":156,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"35669ba8-9591-486b-960e-899cc345b867","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":156,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"51dafc4c-ff1b-4524-94ee-a9dff0b85301","block_type":"box","text":"subject to a distribution fee at an annual rate of 0.75% of average daily net assets of such Investor C Shares.","page_number":156,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"6c50fbf8-e301-44bc-adfc-14bdcd3f5780","block_type":"box","text":"Exchanges of Investor C Shares of a money market fund other than Summit for Investor C Shares of a Fund will be","page_number":156,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"2343b2bb-ffa7-479f-9b5d-3f53006dfc9a","block_type":"box","text":"exercised at NAV. However, a CDSC may be charged in connection with any subsequent redemption of the Investor C","page_number":156,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"55f28aa9-66f7-47f0-b5e8-b11730c47f0a","block_type":"box","text":"Shares of the Fund received in the exchange. In determining the holding period for calculating the CDSC payable on","page_number":156,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"94d34e30-5515-47ea-b301-735b664210a3","block_type":"box","text":"redemption of Investor C Shares of the Fund received in the exchange, the holding period of the money market fund","page_number":156,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"ca11ca4e-d626-4d05-8121-fcbaf2cd6b9d","block_type":"box","text":"Investor C Shares originally held will be added to the holding period of the Investor C Shares acquired through","page_number":156,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"ef48ba36-261d-40c3-b0e2-66528efc8dc1","block_type":"box","text":"exchange.","page_number":156,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"d5743a0c-a6b5-4363-9615-9d414d797ce6","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":156,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"77c2742f-95cc-49aa-bf35-ef7bab825b68","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":156,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"4bbacb85-b2b3-46d5-b65f-f53bb6146681","block_type":"box","text":"par ticipants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":156,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"2a52e06a-863b-4689-8bb1-db03d0379bb3","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":156,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"7dd6935c-b936-413b-9718-dfa483486cf7","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":156,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"0727a5dc-4885-4cf8-823b-ce613ec23bec","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":156,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"c73bfbc6-e3ee-48af-afe7-bc22091f9452","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":156,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"07dee403-9383-4407-95c0-d9e7a33ca558","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":156,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"338f8f45-c6e6-4065-b2ff-31ee8a76cb19","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":156,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"13acea0c-29d5-45c4-9a56-8529580ec85a","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":156,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"2313bb2d-62e2-46d9-8665-0a12646e5a6c","block_type":"box","text":"A shareholder who wishes to make an exchange may do so by sending a written request to the Fund c/o the","page_number":156,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"b984286e-d823-4296-b955-8593eb78d25c","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":156,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"b44d9853-0e84-4c4a-ac85-5618ffe76d02","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":156,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"d27dcc9a-6a70-437e-990a-39ce47b531d6","block_type":"box","text":"Application that they do not wish to use this privilege. To add this feature to an existing account that previously did","page_number":156,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"54559b21-9d4b-4acb-813a-8ea4dbcc4cbf","block_type":"box","text":"not provide this option, a Telephone Exchange Authorization Form must be filed with the Transfer Agent. This form is","page_number":156,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"13b80259-1f58-43d2-aa1a-ecc7cc869fae","block_type":"box","text":"II-119","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"af048c97-b4d0-4eaf-992f-f69e601e38d3","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":156,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3e467960-5ea3-4cce-a246-e44ef9c40409","block_type":"box","text":"available from the Transfer Agent. Once this election has been made, the shareholder may simply contact the Fund by","page_number":157,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"c4c4e605-2cf4-4c44-b86c-a45fab239b3f","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":157,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"637aaacc-69cc-4004-813c-19833aac55df","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":157,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"5806e30f-889b-4ae9-abdd-a833d3b5482f","block_type":"box","text":"Transfer Agent in writing.","page_number":157,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"77c50ae6-d8af-44ed-b730-07c8e2c2dbb5","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":157,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"e452e059-abf6-47b9-a36b-382b2b963352","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":157,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"09440834-5a61-452f-9032-652959272f1e","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":157,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"0be36dcd-63f9-40e5-a924-e1ed9b0cacf7","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":157,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"eac96b69-335d-4118-b43b-1cc8ea647a32","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":157,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"d877b00b-c47e-4d57-a924-ed404f2e1d67","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":157,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"4b24ac2f-915f-4373-86c7-82d6e51270fb","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":157,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"235acff8-0ec2-4393-8671-26352dbe99b6","block_type":"box","text":"must be legally available for sale in the state of the investor’s residence. For U.S. federal income tax purposes, a","page_number":157,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"1fae5b87-938f-4ed2-993b-a8d9dfe63942","block_type":"box","text":"share exchange is a taxable event and, accordingly, a capital gain or loss may be realized. Before making an","page_number":157,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"917946db-52bb-4d10-bef9-40a7c034d433","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":157,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"78f15bd5-996e-4ca7-9d06-00d7774b2348","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":157,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"04c61210-0186-4501-8fd2-72e3280f8534","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":157,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"d2434b93-0a2e-487d-b379-ea94ea02d725","block_type":"box","text":"The Funds reserve the right to suspend, modify or terminate the exchange privilege at any time. Notice will be","page_number":157,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"608da69b-3904-420d-9bf9-698e89172ee0","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":157,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"43d836dd-5a27-4368-8324-61d25ccf087a","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":157,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"2569f7e6-4f2c-40af-a2df-796d0a95f1b4","block_type":"box","text":"amount or frequency, and to other restrictions that may be established from time to time to ensure that exchanges","page_number":157,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"5ed9cfc4-a207-4698-8a06-9a5ee3f77529","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":157,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"33824206-e40e-4265-801b-11cac00c00e7","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":157,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"ae4353bb-1bb9-4336-bbdc-c99012ae9f67","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":157,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"3911ef1b-11d4-47cd-b0fe-9895396ae87d","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":157,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"0463a1fe-3c0d-434b-86c5-8f2638c216cf","block_type":"box","text":"such procedures. By use of the exchange privilege, the investor authorizes the Fund’s Transfer Agent to act on","page_number":157,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"a15c83a3-3e39-470a-b4c3-e1481dd57c39","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":157,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"2fd1ac7e-966c-4baa-9864-e4ec89dd0b69","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":157,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"868c6635-3525-473c-bbc5-1755fd0f41b3","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":157,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"3cd0ca7d-7a20-4d24-b342-ba5af061a56c","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":157,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"3d23b10c-6750-4a17-a6c6-e562464537dc","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":157,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"151dd79b-30d0-40fc-a874-64d113c70f35","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":157,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"373cc9f8-a8b5-4ab2-929f-90fb0f7f0d3f","block_type":"box","text":"such offering from time to time. The exchange privilege is available only to U.S. shareholders in states where the","page_number":157,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"d4c4f09b-0777-42d7-a1ce-3144812929fa","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":157,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"40e7b1db-7c4f-4da0-8713-d6f20420012d","block_type":"box","text":"may be distributed by the Distributor.","page_number":157,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"c7ce3615-c0c9-4bc0-8e24-444581b83ff2","block_type":"box","text":"Participation in Fee-Based Programs","page_number":157,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"e476e766-ba89-4288-97f5-902f7ac6c418","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":157,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"fd2f0941-6fb8-4c71-b617-80df16e188f9","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":157,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"e3e4fe38-b80e-4b08-b4e2-35b4d724915b","block_type":"box","text":"programs in which BlackRock par ticipates, you may be able to buy Institutional Shares, including by exchanges from","page_number":157,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"21351136-328d-45c1-884b-ef43354eda5e","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":157,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"4bdc6afd-496f-4bfd-b4ae-e04c8c7f3ac9","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":157,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"c306b112-364c-4a18-a592-d22d89ba2ef8","block_type":"box","text":"if you choose to leave the fee-based program, you may have to redeem your shares held through the program and","page_number":157,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"fdf23b2c-612e-4332-8283-f31d97696ac9","block_type":"box","text":"purchase shares of another class, which may be subject to distribution and service fees. This may be a taxable event","page_number":157,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"51bcfe82-8a03-40aa-b607-2ac1fb68ef92","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":157,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"1def61fe-b590-4777-bf9f-dd9d61330816","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":157,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"aecd8857-1670-44b9-b005-744d7c95646f","block_type":"box","text":"Generally, upon termination of a fee-based program, the shares may be liquidated or the shares can be held in","page_number":157,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"419f72c2-0e32-45ae-b9d6-bb1120f372aa","block_type":"box","text":"an account. In cer tain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":157,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"9e38d8fe-2b2c-4a0a-8bfc-082d7b62a507","block_type":"box","text":"class was held in the program can be held after termination. Shares that have been held for less than specified","page_number":157,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"982098c1-ab97-4b93-b446-01defe694397","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":157,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"1750fa3d-b3e7-45ee-8bdd-7ae376526d95","block_type":"box","text":"Institutional Shares in the program may be eligible to purchase additional shares of the respective share class of a","page_number":157,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"694a8d14-5d81-42db-a391-e0912f446795","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":157,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"56e78850-cc3e-4db6-a207-bc45a64fea61","block_type":"box","text":"Institutional Shares are permitted only if you have an existing position at the time of purchase or are otherwise","page_number":157,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"855f88c8-a7de-4a14-9d90-1e38704d77cd","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":157,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"a11beb90-2811-4f23-a551-4f459a6148ae","block_type":"box","text":"II-120","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3ed3da9d-cb99-4b57-ad03-e56088af47a1","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":157,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"722983b9-1130-4d48-b806-4a6d0a7ce685","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":158,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"60ea69a7-a456-445b-8e78-9786cc2fa3e2","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":158,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"3e5d4c0b-0279-4fe5-afed-73c8baa170b5","block_type":"box","text":"intermediary’s policies and procedures, exchange the share class held in the program for another share class of the","page_number":158,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"e38ada29-76ef-487a-afb5-b8a541547667","block_type":"box","text":"same fund, provided that the exchanged shares are not subject to a sales charge and the shareholder meets the","page_number":158,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"3b6308a6-4035-421d-a465-0eab1babea19","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":158,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"cea44b29-ee43-4f29-8427-fd88be9c231c","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":158,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"236044ac-841d-44cc-993c-8048965c690e","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":158,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"37962124-b59a-4c80-ba9f-7e2c1a81bc81","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":158,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"70edc956-170b-44e9-afd8-7cf0c3df9e7a","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":158,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"e765d227-d830-47c3-b49e-7eb9d0b6388c","block_type":"box","text":"information.","page_number":158,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"3a26be58-6860-4699-93f0-098f71b49e54","block_type":"box","text":"Retirement and Education Savings Plans","page_number":158,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"472f0238-ae8a-47f9-a11b-5a67de0d0529","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":158,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"b544c542-931e-412d-9031-30356c9ca21c","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":158,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"fb463972-ad5c-49a4-a5ff-10e311546110","block_type":"box","text":"the other mutual funds sponsored by the Manager or its affiliates as well as in other securities. There may be fees","page_number":158,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"97d53867-9682-4032-827b-8a6fa0f0a6d2","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":158,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"e27b9f57-69ad-4c28-b692-5b424fe7adec","block_type":"box","text":"your financial intermediary.","page_number":158,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"54d7811d-864b-4dbc-965d-75f272d2a765","block_type":"box","text":"Dividends received in each of the plans referred to above are exempt from U.S. federal taxation until distributed","page_number":158,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"e55cf977-c323-441d-b54a-f707ae9ddd1e","block_type":"box","text":"from the plans and, in the case of Roth IRAs and education savings plans, may be exempt from taxation when","page_number":158,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"fa427c2b-f943-4818-884e-36e551afe4cd","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":158,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"262803ba-2f12-41a1-a79d-23c85fefae01","block_type":"box","text":"specific tax laws relating to the plan and should consult their attorneys or tax advisors with respect to the","page_number":158,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"0c167492-a491-45f6-a3ff-41c0f4055053","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":158,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"3775f516-5703-4333-9c15-3f9ba071fac0","block_type":"box","text":"Automatic Investment Plans","page_number":158,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"0eb4454b-c9b6-43b3-9a46-ccad4f0b6f81","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":158,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"7f4437dd-fba5-46b9-819f-056012f9a324","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":158,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"71d1c53b-6cc4-478f-af64-ac0685d4dbaf","block_type":"box","text":"®","page_number":158,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"36953a4b-b518-443f-ab8f-2953444fcf92","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":158,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"a4639ce0-e016-4069-bfe7-2501b473ffd9","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":158,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"7c4b601a-587f-4ad3-87d7-b71d638b04f5","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":158,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"d2b3a05d-ccd4-4def-bb2c-71b38dc63855","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":158,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"14e818d8-2632-493c-8da0-d22fbaf0631a","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":158,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"4775c590-a593-4c51-a42d-891e6c53004e","block_type":"box","text":"Each Fund will distribute substantially all of its net investment income and net realized capital gains, if any, to","page_number":158,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"cf063df8-cadb-4fed-a044-28350900ffc5","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":158,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"be530ef1-f6b5-4c31-9613-d740940c2266","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":158,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"247d2e52-77f3-462b-9fae-83b73b1320fb","block_type":"box","text":"Fund’s prospectus. Such election, or any revocation thereof, must be made in writing to the Transfer Agent, and will","page_number":158,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"99a51c84-29fd-4a53-97c8-adf256e1d128","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":158,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"04aa6b37-de4c-4d21-ba1f-7683ddad275a","block_type":"box","text":"Systematic Withdrawal Plans","page_number":158,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"6e8374f3-5004-47d7-a3fc-56b16fa54c7a","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":158,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"8734abd7-3080-4643-b508-8b6a0c5533e8","block_type":"box","text":"Upon commencement of the SWP, the account must have a current value of $10,000 or more in a Fund.","page_number":158,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"c056b3a1-c6b2-418b-bef3-b278ca064011","block_type":"box","text":"Shareholders may elect to receive automatic cash payments of $50 or more at any interval. You may choose any day","page_number":158,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"dc8b4b72-79e1-42bf-83ec-e816620be34a","block_type":"box","text":"for the withdrawal. If no day is specified, the withdrawals will be processed on the 25th day of the month or, if such","page_number":158,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"b35cbcb0-944b-413f-b4ed-18f335a3a308","block_type":"box","text":"day is not a business day, on the prior business day and are paid promptly thereafter. An investor may utilize the SWP","page_number":158,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"16331877-fae0-4b59-a2b8-17743348dcc8","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":158,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"d1c17f25-a8b3-407b-90f3-83575a2dddbc","block_type":"box","text":"www.blackrock.com.","page_number":158,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"5e7384d9-7086-44e0-89df-3d2c43e981c0","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":158,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"d7b50089-10d0-4456-9bc0-30c4df45d3a2","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":158,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"04d63b9b-f84e-4b09-8463-68de0cf441fb","block_type":"box","text":"Shareholders may change or cancel the SWP at any time, upon written notice to the Fund, or by calling the Fund at","page_number":158,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"1b92c8f8-6ebf-43fb-83c1-724fb4a44a5b","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":158,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"1d95e014-9206-4890-96a5-39b371c826c5","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":158,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"4d147fc7-ff97-495d-8a7b-c84eac0204bd","block_type":"box","text":"CDSC will be assessed on redemptions of Investor C Shares made through the SWP that do not exceed 12% of the","page_number":158,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"e131ed29-6570-4f3b-a731-c69667d8eb6a","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":158,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"8b7d91e1-5b05-41fb-862a-14992dbc7c15","block_type":"box","text":"II-121","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"82ed05ca-d365-4d16-b02d-b523560e72ac","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e77ed07f-f578-478d-8d87-38b05f3f3192","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":159,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"1685c087-378e-4d61-9cad-a5273be421ad","block_type":"box","text":"annually), respectively, of an account’s NAV on the redemption date. SWP redemptions of Investor C Shares in excess","page_number":159,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"badc6eb4-0173-4b25-b8a4-192b357fa2e7","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":159,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"b9e00335-1060-4f20-8225-b8378c99f220","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":159,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"3612d169-f2f2-42dd-8740-7eae56003b3a","block_type":"box","text":"to Buy, Sell, Exchange and Transfer Shares” or “How to Buy, Sell and Exchange Shares,” as applicable, in the Fund’s","page_number":159,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"e0c9bb3d-c532-4408-8a70-6d7cc23cd5e6","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":159,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"3538088b-98b7-4371-81e5-0eb492b742b2","block_type":"box","text":"Dividend Allocation Plan","page_number":159,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"2b7b13cb-41bf-42a6-9aa9-9e1aae8c3e21","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":159,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"ccb700f9-bd32-4d0f-b023-f07fc6676ffc","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":159,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"6e5b9525-7119-4001-86ce-0185f1f6238f","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":159,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"4b1943e4-1a72-42ba-87be-1288a934bf09","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":159,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"ea6233eb-39ed-4cb3-bc90-05f8c3d50305","block_type":"box","text":"PRICING OF SHARES","page_number":159,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"6f433268-9edb-46c9-bd56-419cefbc47ff","block_type":"box","text":"Determination of Net Asset Value","page_number":159,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"e26d98b3-346a-4085-aa1e-cc0e62eda541","block_type":"box","text":"Valuation of Shares.","page_number":159,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"5eff27e5-2db9-462c-bdee-36dde4e28f4c","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":159,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"603943d2-bfcd-46b8-a371-693898b94978","block_type":"box","text":"regular trading hours on the NYSE (currently 4:00 p.m. Eastern Time) on each business day the NYSE is open.","page_number":159,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"30e3c840-cf31-4fc5-a667-f28f79692ff8","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":159,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"9666e625-086b-4402-b860-57141a0ae84c","block_type":"box","text":"Equity Investments.","page_number":159,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"b3aabf9a-13bf-463b-98e5-dc07c04625e3","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":159,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"521492da-d055-4f9e-924a-cff8b75aef45","block_type":"box","text":"e.g.","page_number":159,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"d4b1aeec-cf44-4304-a342-37616a08411b","block_type":"box","text":", NYSE), on separate","page_number":159,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"c15c394f-c945-465b-bf8a-f528e3b03e70","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":159,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"db49d36f-c6f8-4b8d-9365-15b97d502a02","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":159,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"3ad112dd-556b-475d-9d9f-05a8cd9c5a77","block_type":"box","text":"generally at the Exchange closing price or if an Exchange closing price is not available, the last traded price on that","page_number":159,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"bab129c9-a594-447e-813b-0cc13ac0d495","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":159,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"e7cb454b-dc2a-4be5-b7e2-5e8a5b908dba","block_type":"box","text":"other means of determining current market value may be used. If an equity security is traded on more than one","page_number":159,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"62f66beb-c17a-465b-ba26-d27bc354226e","block_type":"box","text":"Exchange, the current market value of the security where it is primarily traded generally will be used. In the event that","page_number":159,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"d997cf89-7674-47b2-8980-0af5acefb525","block_type":"box","text":"there are no sales involving an equity security held by a Fund on a day on which the Fund values such security, the","page_number":159,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"d3e9a173-67d5-420a-8320-aa41305fde94","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":159,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"06a2c2fe-c283-48d2-948e-81d01b859666","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":159,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"faa43c14-017e-4370-af12-091faf2f19d5","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":159,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"c651d004-e49d-436d-9a73-ee4d29995733","block_type":"box","text":"values such security, the prior day’s price will be used, unless BlackRock determines that such prior day’s price no","page_number":159,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"5453e07e-edcd-4a44-ad51-5c08ad9b33e7","block_type":"box","text":"longer reflects the fair value of the security, in which case such asset would be treated as a Fair Value Asset (as","page_number":159,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"6fbef1b6-3837-4194-a1e4-c155d3095f31","block_type":"box","text":"defined below).","page_number":159,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"c92e2c8b-9c1b-48fb-8d6b-1593c2348975","block_type":"box","text":"Fixed-Income Investments.","page_number":159,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"3a8741e6-bfc8-4fc9-943f-da27a7d10a54","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":159,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"4ee91d21-c96d-431a-93d7-963e4c986a28","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":159,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"7f83625b-8404-41c2-a1a0-9e9346a8199d","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":159,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"27f6c924-5f74-423c-af51-91438865c030","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":159,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"b3eff224-14bb-46ba-88fc-4437a7b4f2b9","block_type":"box","text":"e.g.","page_number":159,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"022a586a-35bb-4465-8ba5-4ec927bde25a","block_type":"box","text":", recent representative bids and offers), credit","page_number":159,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"d038fba8-d5c9-4c71-9909-27a2ce059e6c","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":159,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"53a11f1e-25b3-4ee1-b6c7-8f35012207fc","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":159,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"67c1778a-8c8b-4402-9757-8d6ea972415a","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":159,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"165105c4-d8f9-4ffa-8fce-6062d71eda9e","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":159,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"35f246ff-0fed-4825-92dd-c7b875f1ea93","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":159,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"2bd3e85d-ed6c-4274-aac0-a7c110923590","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":159,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"8d596c1c-73c9-4cc6-aae6-e26495c36cab","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":159,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"57dc38f9-a41e-4def-9788-9728b1219a3d","block_type":"box","text":"respect to debt obligations with 60 days or less remaining to maturity unless such method does not represent fair","page_number":159,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"21889ba8-b0e5-4b84-a8c9-1e58c627cf1e","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":159,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"6a3b95d2-acbd-4c3a-8655-29d6bfdb4d31","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":159,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"54676570-a252-4ae3-a955-190188c79624","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":159,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"f182cb18-b24f-4f06-b3cf-fcff42eb26e4","block_type":"box","text":"attributes of the tranche.","page_number":159,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"a1ab8d28-2e66-4941-97c3-5b1418250544","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":159,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"b27a8c0a-bd1a-4247-8395-05ddf995dd74","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":159,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"2e957b06-27a8-4dea-9a67-90e1743074b1","block_type":"box","text":"index options or those that are customized) for which market quotations are readily available are valued at the mean","page_number":159,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"a28bb89b-36c6-4712-bd77-d5a61842cc15","block_type":"box","text":"of the last bid and ask prices as quoted on the Exchange or the board of trade on which such options are traded. In","page_number":159,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"ff317453-8b7c-4d29-9357-61f9e6679898","block_type":"box","text":"the event that there is no mean price available for an exchange-traded equity option held by a Fund on a day on which","page_number":159,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"7116ee88-158c-4ec9-a73b-6bd294ebdbc7","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":159,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"4a4d45ec-f27c-46d5-baaf-0e49c5829669","block_type":"box","text":"the value of such option. If no bid or ask price is available on a day on which a Fund values such option, the prior","page_number":159,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"ab08f943-f5c0-4860-a7c4-40ba418043f4","block_type":"box","text":"II-122","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7b683b11-eb51-46e8-ac0b-b43546841add","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"072aa182-ddb3-471c-9861-a2244d0ca8d3","block_type":"box","text":"day’s price will be used, unless BlackRock determines that such prior day’s price no longer reflects the fair value of","page_number":160,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"6e20340c-354b-4db4-9a9b-85cace6ee04e","block_type":"box","text":"the option, in which case such option will be treated as a Fair Value Asset. Customized exchange-traded equity","page_number":160,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"5a7e449d-6ffe-4d65-b63c-f02a36a4e623","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":160,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"45125dea-49cd-43db-a7f3-6ac02fd2139d","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":160,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"ff60b60b-0d22-4cb1-b85c-d5d5efc68f95","block_type":"box","text":"on exchanges, are valued at their last sale price or settle price as of the close of such exchanges. Swap agreements","page_number":160,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"81a95954-cf50-42be-85bb-cd55d338f96d","block_type":"box","text":"and other derivatives are generally valued daily based upon quotations from market makers or by a pricing service in","page_number":160,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"d1d6b64d-5b0c-45e8-a471-41f46c07756b","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":160,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"a670ac85-6cb5-4089-800b-8b204cd54ca6","block_type":"box","text":"Underlying Funds.","page_number":160,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"b57d54a1-6aff-4fea-9452-146241d0a1ec","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":160,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"a530446d-0f18-4db7-9d45-2e55f0ef9bf3","block_type":"box","text":"market funds) are valued at NAV. Shares of underlying exchange-traded closed-end funds or other ETFs will be valued","page_number":160,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"027c1790-b00b-432f-8be6-ded793e62dca","block_type":"box","text":"at their most recent closing price.","page_number":160,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"043167d9-7d81-4429-aa30-21b2dccf9f26","block_type":"box","text":"General Valuation Information.","page_number":160,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"ae07a02b-4c66-4614-8915-f5886ccb4d13","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":160,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"d77f8837-df19-4161-b071-70247f70bf20","block_type":"box","text":"market makers to value each Fund’s securities and other assets and liabilities are based on information available at","page_number":160,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"ef43a55e-3b5c-4d55-9d3c-3ced9c1a29d6","block_type":"box","text":"the time the Fund values its assets and liabilities. In the event that a pricing service quotation is revised or updated","page_number":160,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"6eedc9dd-df53-4c93-80d2-63774d7778f7","block_type":"box","text":"subsequent to the day on which the Fund valued such security, the revised pricing service quotation generally will be","page_number":160,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"2aa36193-0675-43c6-b458-5d0046401059","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":160,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"c3d10fba-c5cb-4f0c-aa27-39ab54354da4","block_type":"box","text":"the revision.","page_number":160,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"06a0f354-f82b-4ee1-ad97-808c6ed47d4f","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":160,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"c9716e7d-f9cd-43d8-b524-ef213a819d91","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":160,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"bb7e0a7d-2bfb-4ec3-b939-16b71b651f1e","block_type":"box","text":"matrices, yield curves and other specified inputs and assumptions. This may result in the assets being valued at a","page_number":160,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"713b12f3-568d-4bf6-bc9d-e8cbbb4521d7","block_type":"box","text":"price different from the price that would have been determined had the evaluated pricing method not been used. The","page_number":160,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"8e379753-684e-46a5-9628-a029d2d3103d","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":160,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"50a1d7bb-c402-473a-aeb6-666acc18da3e","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":160,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"8c83027a-e1c9-4397-833a-6eee97dba7e4","block_type":"box","text":"methodology or a price provided by an independent pricing service. As a result, the price received upon the sale of an","page_number":160,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"29e370d8-d24f-45fe-8193-6ae01114d082","block_type":"box","text":"investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss","page_number":160,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"0a8e6908-e3d2-480f-bf7a-ad3ecdbaeea7","block_type":"box","text":"or lesser than expected gain upon the sale of the investment. The Fund’s ability to value its investment may also be","page_number":160,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"24719e8d-c0d7-4e16-af84-c43421b0178f","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":160,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"74145b21-d026-48ee-b1a1-dabb62f35717","block_type":"box","text":"In the event that application of the methods of valuation discussed above result in a price for a security which is","page_number":160,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"e35e17f5-7056-498f-a1dd-d856a59a444f","block_type":"box","text":"deemed not to be representative of the fair market value of such security, the security will be valued by, under the","page_number":160,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"224cce89-fa4d-46df-94d9-6735ddaec112","block_type":"box","text":"direction of or in accordance with a method approved by BlackRock, the Fund’s valuation designee, as reflecting fair","page_number":160,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"8c1c2991-3982-4eb3-9126-550637df1ab5","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":160,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"d00cf1c7-e501-48e2-8380-ee686d9c155c","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":160,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"2c0f9b9b-2d0e-47dd-96a7-51af9da0ba92","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":160,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"b3519d52-3ce3-419a-9529-f1b3b5252ce3","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":160,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"85d10347-cb5f-4519-83fe-a0ce20669e61","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":160,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"5622dbb8-37e1-4fe7-81f8-109e95cad19b","block_type":"box","text":"which a Fund’s NAV is not calculated. In such cases, the NAV of a Fund’s shares may be significantly affected on","page_number":160,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"74bc6cd5-76b3-4dd6-b58e-a0ec8dd9ae1c","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":160,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"eef54eba-c4b1-48d6-92a8-5d37d0aa4264","block_type":"box","text":"Fair Value.","page_number":160,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"391c52a5-f9c5-48d4-904d-e1331a60df43","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":160,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"a3e18325-016b-44d6-81ea-30527d9ab1e1","block_type":"box","text":"Fund’s investments are valued at fair value (“Fair Value Assets”). Fair Value Assets are valued by BlackRock in","page_number":160,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"975a672e-4d63-4e76-a8da-5af54ed6e332","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":160,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"22fe8c98-f979-4897-a95f-0ab81aa01584","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":160,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"3f2e098c-18ad-4093-9317-6df7bbb1132c","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":160,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"2b86e005-dd29-4f72-b2f4-ddc52ef29863","block_type":"box","text":"unreliable if, among other things, a security or other asset or liability does not have a price source due to its","page_number":160,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"283422ea-bbab-4b3c-bba3-e8ce5cb0dca8","block_type":"box","text":"complete lack of trading, if BlackRock believes a market quotation from a broker-dealer or other source is unreliable","page_number":160,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"b6099368-1d7c-45d8-9c00-d90c479761ae","block_type":"box","text":"(","page_number":160,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"dc5e54e1-8aee-4f43-8b39-161bda5b88bd","block_type":"box","text":"e.g.","page_number":160,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"b4db0647-4cb8-4a3c-96e0-0ff36abe05e7","block_type":"box","text":", where it varies significantly from a recent trade, or no longer reflects the fair value of the security or other asset","page_number":160,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"4894d2c2-d605-4485-ae1a-3aae3acf6c2b","block_type":"box","text":"or liability subsequent to the most recent market quotation), or where the security or other asset or liability is only","page_number":160,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"915d202f-d530-4fa9-95e2-290afbab70dd","block_type":"box","text":"thinly traded or due to the occurrence of a significant event subsequent to the most recent market quotation. For this","page_number":160,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"53f6316f-709e-497a-9692-997a9d36ce75","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":160,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"8b61730b-721e-4efe-945e-2184c4bf4152","block_type":"box","text":"an event has occurred after the close of trading for an asset or liability but prior to or at the time of pricing a Fund’s","page_number":160,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"bc7f7703-220f-4a0c-bdd8-a8aa9b7f84b7","block_type":"box","text":"assets or liabilities, is likely to cause a material change to the last exchange closing price or closing market price of","page_number":160,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"31beecc7-7f2d-4589-910c-e31a61ba85f2","block_type":"box","text":"one or more assets held by, or liabilities of, the Fund. On any day the NYSE is open and a foreign market or the","page_number":160,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"83199945-e472-4718-a30d-681de992570c","block_type":"box","text":"primary exchange on which a foreign asset or liability is traded is closed, such asset or liability will be valued using","page_number":160,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"97136c9a-e132-4b95-b773-2cc06cc972b9","block_type":"box","text":"the prior day’s price, provided that BlackRock is not aware of any significant event or other information that would","page_number":160,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"855175c7-79f7-4151-990f-28c4a600480c","block_type":"box","text":"cause such price to no longer reflect the fair value of the asset or liability, in which case such asset or liability would","page_number":160,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"52955706-7b0b-4309-a33e-5125a250d0c0","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":160,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"92dbfa22-fd0b-4d47-9db3-226dfb7483ce","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":160,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"c88abf0f-7617-47b9-936b-0555180c3cdb","block_type":"box","text":"II-123","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5ee648e0-1b8a-465d-a83d-114bb2ac6f05","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e070bf31-635f-4357-a562-7527b627fd84","block_type":"box","text":"closed. This systematic fair value pricing methodology is designed to correlate the prices of foreign assets in one or","page_number":161,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"cca3744b-04f1-4a55-8a61-374074eec6af","block_type":"box","text":"more non-U.S. markets following the close of the local markets to the prices that might have prevailed as of a Fund’s","page_number":161,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"fc1ca257-9fe1-44cf-8b9b-80f90f0bdf57","block_type":"box","text":"pricing time.","page_number":161,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"d311c32c-63d7-4c83-be6e-c07c5c8d6d64","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":161,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"91b101bc-5a82-42a0-8ff9-067ae29be0d4","block_type":"box","text":"and significant inputs used in the fair valuation of Fund assets or liabilities. In addition, the Funds’ accounting agent","page_number":161,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"8720e511-136a-4cd3-be82-8325627a0c74","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":161,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"271da6e5-888a-4b31-8350-414bc7af2271","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":161,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"66c000c6-be70-473e-851c-2d3164ad0086","block_type":"box","text":"assets and liabilities of the Funds.","page_number":161,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"b902c0a8-cffb-407a-b8e4-667333d09231","block_type":"box","text":"When determining the price for a Fair Value Asset, BlackRock will seek to determine the price that a Fund might","page_number":161,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"bd909f4a-0372-4de2-b3cc-028a42763aaa","block_type":"box","text":"reasonably expect to receive from the current sale of that asset or liability in an arm’s-length transaction on the date","page_number":161,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"fba4f7a6-a1a1-4eaa-a48e-e45c23ad2095","block_type":"box","text":"on which the asset or liability is being valued, and does not seek to determine the price a Fund might reasonably","page_number":161,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"acb77e6c-b8a8-46b9-8857-9e17bebc02a8","block_type":"box","text":"expect to receive for selling an asset or liability at a later time or if it holds the asset or liability to maturity. Fair value","page_number":161,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"29324a56-d5c7-4290-bbf3-c5062fc1bcb1","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":161,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"105b0145-4b15-434f-bbbe-308a8e1b8133","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":161,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"33e2f77d-0529-452b-9da4-70b449ebf5aa","block_type":"box","text":"valuation models.","page_number":161,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"894adbe7-25c3-4126-bbdc-7a4cf8fda5a9","block_type":"box","text":"Fair value represents a good faith approximation of the value of an asset or liability. When determining the fair","page_number":161,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"377f5f9b-6650-4381-9b28-3618cc1b8794","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":161,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"19a33e9f-e58a-450c-8f99-89b4ee1f6d99","block_type":"box","text":"the asset type). For example, the investment may be initially priced based on the original cost of the investment or,","page_number":161,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"bc8a6331-bf79-4648-9a36-7862db7043c5","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":161,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"18429f61-0c7a-47cc-bb0e-6b6753320419","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":161,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"9c374276-60af-4ae3-a2de-674ae6da8d87","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":161,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"fde1140e-ea77-4aca-ac38-9637e8e556bc","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":161,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"c80baf4b-449e-440b-885b-15d961612415","block_type":"box","text":"The fair value of one or more assets or liabilities may not, in retrospect, be the price at which those assets or","page_number":161,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"13cf83cc-5591-4056-b3c2-3fd655228278","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":161,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"0d9b60a0-7ada-47d6-abd1-ad0bc5cf3ca0","block_type":"box","text":"NAV. As a result, a Fund’s sale or redemption of its shares at NAV, at a time when a holding or holdings are valued at","page_number":161,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"80d59838-a923-4db8-9236-77cf5b83da8d","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":161,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"a0e99ec2-bab8-4b6f-8bce-92e074c7f228","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":161,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"e499409a-a86c-4869-8a07-844a23173b6d","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":161,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"e5e5837d-d680-4b20-8caf-c2e5c1c38bf2","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":161,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"1c1fb264-2bd3-4460-92a2-a1da0cf3a729","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":161,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"25e924d8-aba1-468a-911f-5903996e3cc2","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":161,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"04bbfabe-cef1-46ac-ba8b-a91989cef33a","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":161,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"93d09e84-9b8f-4710-a9df-123cb1f57a01","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":161,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"fa146ce1-12c9-41ce-bff2-ef4882c72df8","block_type":"box","text":"of the fair market value of assets or liabilities, to the extent such rules become more stringent, would tend to","page_number":161,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"dbaaf094-dbdd-4be6-a299-f01566602e21","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":161,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"8a220f71-f86c-493b-a734-4165a7bfa08a","block_type":"box","text":"increase the costs associated with selling assets or affect their liquidity due to a Fund’s inability to obtain a third","page_number":161,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"153c6d54-89f5-4786-8e2d-e82791d6eff7","block_type":"box","text":"par ty determination of fair market value.","page_number":161,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"55e79a36-bd52-4728-b27d-08801005bfa2","block_type":"box","text":"Computation of Offering Price Per Share","page_number":161,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"eba50210-f27b-45ba-bd86-6bb32058c3a7","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":161,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"053311eb-784f-4b14-884c-62b4c62ae846","block_type":"box","text":"the offering price for shares of your Fund.","page_number":161,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"963a6c59-645a-496b-9431-bfdc01fd1103","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":161,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"8a7d1557-4bb5-4016-b043-97d925ec1d7b","block_type":"box","text":"Transactions in Portfolio Securities","page_number":161,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"af4f0b07-4f75-411b-9974-cdb30d5c2c40","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":161,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"41280575-a5c2-4e38-9af2-a745a196c684","block_type":"box","text":"a Fund’s por tfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":161,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"69478ea1-ef47-4a8b-bc9b-be50812114ce","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":161,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"7a3ca148-fca6-4f44-920c-30931dba4d83","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":161,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"7eedf80c-501c-44dc-8d0c-52e2e55d141f","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":161,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"ade08717-3489-4205-9d23-e8fb95cd3aba","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":161,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"aaffcf8b-2837-4b41-836d-809574ebad7c","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":161,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"31566362-758c-41b5-8e33-14ba068164f9","block_type":"box","text":"BlackRock and its clients, including a Fund. In return for such services, BlackRock may cause a Fund to pay a higher","page_number":161,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"aeab66a7-00f7-492c-a91c-a2cae775350e","block_type":"box","text":"II-124","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0c29c3d0-abdf-494f-ad68-53259ed3e379","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f2038d00-e811-4075-9917-d7129228a519","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":162,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"9843a763-8d58-40f6-a03b-86e932eb5a6e","block_type":"box","text":"reasonable in relation to the services provided.","page_number":162,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"4722817d-e304-4d16-b784-eb40c36e993f","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":162,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"40a36320-8325-42e4-8e18-6c61315ed89f","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":162,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"2bcb22fc-15f1-4813-b46c-2dd88eface9a","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":162,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"3abcb2f9-a100-454e-b6e0-d27899c53dbb","block_type":"box","text":"the best price and most favorable execution for a Fund, taking into account a variety of factors including: (i) the size,","page_number":162,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"3babd498-7156-4c35-add2-9bc926f25f4e","block_type":"box","text":"nature and character of the security or instrument being traded and the markets in which it is purchased or sold;","page_number":162,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"65c41e8b-92ee-4137-a8f0-c9eb7c11f670","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":162,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"8958a60a-f3d1-4020-9ab0-d9b1aa01e728","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":162,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"e305e0c2-7b21-4eb6-b51c-5de79ad90370","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":162,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"6a6aff78-8add-43c7-89c7-c90f4c4df82f","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":162,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"f4158a1e-4346-481a-8aed-611502fe4d7d","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":162,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"ac2bf60a-3590-40f3-b369-1a96fe2606ad","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":162,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"f4376301-b799-4b79-9235-fc52340e5d8d","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":162,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"aa1fc609-70d4-43f7-a4af-dda2ef1dc214","block_type":"box","text":"to cause an account to pay a broker or dealer a commission for effecting a transaction that exceeds the amount","page_number":162,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"944f1ba9-9c2d-4c79-b157-28e7636a8a6b","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":162,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"603f83b4-3e09-4717-9055-bfce50415662","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":162,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"c60e652a-da69-4130-80be-08516f9d6c31","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":162,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"82477524-f355-4cbe-ab0e-915bc9142d46","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":162,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"269d13ac-bff8-491d-8680-700e78f0998a","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":162,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"f65a8b2e-5aa7-4e2a-b398-4cec8e92377f","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":162,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"8d2ca7ca-c926-4e19-baeb-e44db929c551","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":162,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"7da1e2cc-f29b-400a-8976-f54c08d93524","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":162,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"75f6dde1-4ec2-42c8-a318-b52575d5f84a","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":162,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"a1e555ad-3fd9-486f-9078-b26757c3e985","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":162,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"8b35dba2-3e3d-45a3-9585-76cd59fa5f23","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":162,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"1e872461-e5f9-4b28-a461-56df848a3f7f","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":162,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"596ee3eb-3a8d-444b-9353-e257cb4993b8","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":162,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"11879cc8-b637-473f-a678-203de1a02258","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":162,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"25ec33b3-cef2-4877-b3fb-37568142c759","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":162,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"4ad172aa-4b92-4cb5-af4b-498f2d11193f","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Cer tain Funds","page_number":162,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"e1108ddd-8830-484d-aa92-c2f794014061","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":162,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"73034d5c-bc38-460e-99c9-b9dd00b20b93","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":162,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"c9846353-c760-49af-abb0-655ac7e3a937","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":162,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"fe2a3d1b-89a4-44c2-a2df-62570d93324d","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":162,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"39ab703d-c093-4d17-86c7-3a19aa57aea3","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":162,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"3b2ff99f-8293-41d0-bf20-218b7d051a58","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":162,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"d3d52fc4-56e1-4652-9ee7-f74646d2f5ce","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":162,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"33ff4283-f37e-401b-8e96-449449bb201d","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":162,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"84561719-293b-45f5-b6d8-f2b468d655d4","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":162,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"d72590ae-bfcf-42a7-b1ef-9ff98bb7d4ae","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":162,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"62f48a24-8b7a-4470-b235-875de9a10ef7","block_type":"box","text":"por tfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":162,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"febaad4d-a486-4a57-ba1b-c9fed1e8e55d","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":162,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"6fd023b6-520d-4688-9cbd-3d69d49efd9a","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":162,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"ec28c251-8977-4085-bc13-902ab760d0d3","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":162,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"b7cb5abe-9d2d-4039-b7d8-903c1009061c","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":162,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"d3113766-594e-48ca-88a6-7d3bd29eec6b","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":162,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"4d7e0fbc-4a76-45c7-bb8b-ed9027f0f092","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":162,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"ab24ef09-8cd4-43f9-9a5c-0a926b210a79","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":162,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"460633fb-5138-4167-b464-39b6bd6e1152","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":162,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"e74ddf27-df8c-453c-915b-648df2e36dea","block_type":"box","text":"par ticular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":162,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"f71b3153-0754-4d1d-bd20-fc94de9c4b04","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":162,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"faab899e-fe84-46d6-be49-12ae0f18873c","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":162,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"14aba56b-48ec-4c0a-a2a5-527f6e93b0fd","block_type":"box","text":"used in servicing some or all client accounts and not all services may be used in connection with the Fund or account","page_number":162,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"1682b4aa-c771-4492-a492-2ed8f69ba528","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":162,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"965ab557-1233-4f80-802c-8bc87c80cf3b","block_type":"box","text":"II-125","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3c6b35a4-edf7-48fc-b67c-7a2ba776f10f","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e38807cb-907b-47f6-a916-bad523976931","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":163,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"2712868d-2731-49af-825e-f27c67f727f8","block_type":"box","text":"managed por tfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":163,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"eb10750c-c4b7-4782-8533-e2b3edc04113","block_type":"box","text":"paid by a Fund to BlackRock are not reduced as a result of BlackRock’s receipt of research services. In some cases,","page_number":163,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"52d0443b-35a3-4677-9867-07d26ce6b436","block_type":"box","text":"BlackRock may receive a service from a broker that has both a “research” and a “non-research” use. When this","page_number":163,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"57403edc-7c68-4b95-bc5b-2a8eb79ae79c","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":163,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"5b7777a7-5cd1-47ec-bac2-862f7942f745","block_type":"box","text":"research uses of the service. The percentage of the service that is used for research purposes may be paid for with","page_number":163,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"4dc763cd-5f8b-4101-8aea-50209f770abf","block_type":"box","text":"client commissions, while BlackRock will use its own funds to pay for the percentage of the service that is used for","page_number":163,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"ecb1e12a-43e4-4245-bb2e-063c5778fd4d","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":163,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"0cc8900b-6a8e-42c8-bdb0-308faf43c098","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":163,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"6ba669e8-f7c2-463d-9711-37fb00ba10e8","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":163,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"39c4bdd7-4d47-43d9-8a3d-84fa838ef857","block_type":"box","text":"Under MiFID II, investment managers in the EU, including BIL, are not able to use soft dollars to pay for research","page_number":163,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"3fa53cf0-3015-4db4-89b5-2b901693eb0b","block_type":"box","text":"from brokers. Investment managers in the EU are required to either pay for research out of their own profit and loss","page_number":163,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"54229593-b120-480b-8df2-188eb3f0c228","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":163,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"beae60af-8bad-47cb-bac3-1dac7cf83b53","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":163,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"7bd999c6-b96b-42f7-84af-8f26545980ca","block_type":"box","text":"payments for research are unbundled from the payments for execution. BIL will pay for any research out of its own","page_number":163,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"07fb75da-406c-4003-8519-ea7b30aaf282","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":163,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"6c34945a-7967-48e9-a28e-cff3a3514077","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":163,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"37aa9efd-58ac-4bb9-81f6-05b6af5872c9","block_type":"box","text":"to the Feeder Fund (or affiliated persons of such persons), will be made in accordance with Rule 17e-1 under the","page_number":163,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"98e9c0f9-d5f3-40a1-b7a8-ba716e17e2a3","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":163,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"234bcbb8-942f-4269-a922-41706ac2b5fd","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":163,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"ed6998fe-1f6c-4bf2-957d-b497885cdaf5","block_type":"box","text":"brokerage.","page_number":163,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"a6d48aff-26b4-4efb-9ec1-8cce07f8312d","block_type":"box","text":"From time to time, a Fund may purchase new issues of securities in a fixed price offering. In these situations,","page_number":163,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"d74c6c6d-1f16-4046-8ceb-ddc6767343ab","block_type":"box","text":"the broker may be a member of the selling group that will, in addition to selling securities, provide BlackRock with","page_number":163,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"283b9b91-5a5e-44f1-84f5-95298c0061ed","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":163,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"3db4b7b8-dda3-4a2c-9e0b-3140331a3af5","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":163,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"53b914c7-4de7-4ff2-8d07-2497494880e9","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":163,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"16cb79c2-e64d-4621-a2c3-910b7faee1a6","block_type":"box","text":"Section 28(e).","page_number":163,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"a3db8719-15f0-4e1e-a1d4-9061acb458ef","block_type":"box","text":"BlackRock does not consider sales of shares of the mutual funds it advises as a factor in the selection of","page_number":163,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"8d0ba1f0-8eb4-478f-998c-5ff42b13264c","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":163,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"2bb92b59-a885-4f41-b3a2-cd0da7ae3fc1","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":163,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"0326aa8c-00b9-4f11-a81f-f20fa94ec600","block_type":"box","text":"execute transactions for those mutual funds.","page_number":163,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"ffa6382f-9b93-44fb-9b73-cba54aeb6da0","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":163,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"cbca8f25-0ac8-4f5d-aec0-388cad137899","block_type":"box","text":"primarily on the principal stock exchanges of the applicable country. Foreign equity securities may be held by a Fund","page_number":163,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"647b03d0-ef4c-47b0-90f6-7956e40be99b","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":163,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"41fed319-88a8-46c8-ae2d-27efa2a38ad2","block_type":"box","text":"may be listed on stock exchanges, or traded in OTC markets in the United States or Europe, as the case may be.","page_number":163,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"d440ab55-e114-4947-91fd-ee58533aa05b","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":163,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"58adfe26-eb54-4911-95aa-f845003155b1","block_type":"box","text":"commission rates. Because the shares of each Fund are redeemable on a daily basis in U.S. dollars, each Fund","page_number":163,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"0919ce46-78f8-491d-b192-a1c316918ea7","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":163,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"56d3989a-20fb-4fcd-900f-5a43841bec17","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":163,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"459cb67c-f1f2-41a9-b9f1-49159b6545f4","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":163,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"6266ab3a-139f-4a13-918d-b09d714733a4","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":163,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"2f83433f-1085-4479-9cba-9a9ecbc040a9","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":163,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"a4e90844-248e-4284-9202-0c138721cdd5","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":163,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"ecdb25bd-bafc-4ae7-8c97-815847b108d2","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":163,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"83b07928-7c55-4906-a7df-27e35790fd91","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":163,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"fc5ef1d0-a53a-49b0-a73e-01e27c0c147f","block_type":"box","text":"affiliated with such affiliated persons are prohibited from dealing with the Fund as principal in the purchase and sale","page_number":163,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"3bb90061-35fa-4b88-bd13-f5ad1d2687a9","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":163,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"dfca53d4-9da3-48b7-a4bb-64d7843c7f91","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":163,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"2a9ba3ae-030e-4ed8-a2ce-5617d00d09b4","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":163,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"5a323794-5eb0-42ee-aacb-bfb1edbec3f8","block_type":"box","text":"person of a Fund may serve as its broker in OTC transactions conducted on an agency basis provided that, among","page_number":163,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"7f1ba926-e42b-41fe-a3cd-1d386f69ba8a","block_type":"box","text":"other things, the fee or commission received by such affiliated broker is reasonable and fair compared to the fee or","page_number":163,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"f83cf12f-55ed-4712-a104-58a2f90b1553","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":163,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"d28b0c4b-3211-43e7-90ab-5edd597c7fdc","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":163,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"fb97b44f-411f-439c-8889-c6d04def731f","block_type":"box","text":"normally traded on a “net” basis without a stated commission, through dealers acting for their own account and not","page_number":163,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"be5753f7-10f0-499f-ada6-78000e41ba65","block_type":"box","text":"II-126","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6cadb57b-10c3-478e-b482-e13d28629c0a","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"95dce1ee-ecce-4d07-a443-768bc6f917c5","block_type":"box","text":"as brokers. The Funds will primarily engage in transactions with these dealers or deal directly with the issuer unless a","page_number":164,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"1ae7b4f1-46f5-4a87-b6f4-a56d36b16197","block_type":"box","text":"better price or execution could be obtained by using a broker. Prices paid to a dealer with respect to both foreign and","page_number":164,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"b91a7ea5-1f5a-4db3-b6b2-4bd19fc41517","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":164,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"b49e8390-57fc-4fc4-a5cf-6c2c34a892a8","block_type":"box","text":"is willing to purchase and sell the specific security at the time, and includes the dealer’s normal profit.","page_number":164,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"8be10acb-d63d-4b20-830f-2a6a95eee0d9","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":164,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"4d4f0f54-76a2-41ef-8b95-879277056241","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":164,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"75ba0075-e62c-44c4-9572-c81be074c53c","block_type":"box","text":"instruments are generally traded on a “net” basis with dealers acting as principal for their own accounts without a","page_number":164,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"89f1dac2-e2e6-48d0-9204-1d0d5c9f4a16","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":164,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"ceb6f143-3f66-435f-8969-a7599b9027bf","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":164,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"eb33e807-cbf1-4cd4-baa0-f5fc779c00b9","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":164,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"d874206d-f77c-4d2f-b651-c49787bc765d","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":164,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"6f38561e-2ad2-4709-bbc6-16151924afe2","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":164,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"ee3e924a-807f-4047-8c90-30a415834cf5","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":164,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"8977751f-501f-4764-afc3-1cbdc3ac15bb","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":164,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"91e7f6d4-ff69-44f1-84ab-437638c2185c","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":164,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"6a311a65-655c-4dc7-8dd8-14665d319936","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":164,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"a9ae5087-e920-48ea-8525-0c57122cee98","block_type":"box","text":"selling commercial paper to consider the repurchase of such securities from a Fund prior to maturity at their original","page_number":164,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"f911293a-a3b7-489d-be0d-8e7463672f4f","block_type":"box","text":"cost plus interest (sometimes adjusted to reflect the actual maturity of the securities), if it believes that a Fund’s","page_number":164,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"9e294f10-06b4-4309-b214-45a74839193e","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":164,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"f2b5ef7a-7a0b-4962-b990-76870512b704","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":164,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"0d68d636-4b25-4dcd-ab12-7bb65733872a","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":164,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"31879582-306f-49a0-9dd7-cdc1c63010f3","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":164,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"a41f1fff-25b0-4296-ab41-aa5524ad94f7","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":164,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"fb02b786-4c9b-4d6f-9d2f-726b8e4d7780","block_type":"box","text":"accounts in a fair and equitable manner over time. A variety of factors will be considered in making such allocations.","page_number":164,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"b1189486-d3f2-4f42-b76c-1babef9ff880","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":164,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"bf1eac69-7fa5-46c5-9f08-d22494ff2928","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":164,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"9623122f-04db-406f-93e9-f4d9f93e9abf","block_type":"box","text":"concentration parameters for an account, (iv) supply or demand for a security at a given price level, (v) size of","page_number":164,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"63121e31-9f26-4eb0-b12b-6619686fb1b6","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":164,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"5af5499e-42c9-477b-8712-6c9830b56c35","block_type":"box","text":"(viii) minimum investment size of an account, (ix) relative size of account, and (x) such other factors as may be","page_number":164,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"e6784c09-6200-4af5-a24f-c02a60dd6ab3","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":164,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"8079f197-ca31-4f79-bffd-3d1455ebcbf3","block_type":"box","text":"another based on any of the following considerations: (i) to favor one client account at the expense of another, (ii) to","page_number":164,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"8e53cb73-36a0-4176-836d-b279b5b314c2","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":164,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"90e4b5d3-9541-411a-9284-4175325a16f5","block_type":"box","text":"BlackRock, (iii) to develop or enhance a relationship with a client or prospective client, (iv) to compensate a client for","page_number":164,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"7066c4df-f66f-4752-870c-f1dab7f678a6","block_type":"box","text":"past services or benefits rendered to BlackRock or to induce future services or benefits to be rendered to BlackRock,","page_number":164,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"779964e7-4dc9-41f2-ac0e-c28b6dd763a6","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":164,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"0bb3c7f4-74c0-4a7c-b3f9-8f2013915172","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":164,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"3dc2d7c6-8869-4b1a-9873-14328f980338","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":164,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"4b45f6dc-6a19-46ff-a5a2-956e512ec6b5","block_type":"box","text":"accounts and compliance constraints.","page_number":164,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"2b233880-5aec-4c04-b06b-059b7803499d","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":164,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"a2e10c15-78d5-4425-b401-f4221870a57b","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":164,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"037c7672-0411-481e-bb35-ad923fad1ffa","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":164,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"4ecc568d-f8b6-49e4-b682-99d0c7119f56","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":164,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"4fe5f9bb-6f31-46fe-a244-b995792134c8","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":164,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"ba1d4dc3-88f5-4d4c-a32a-c27a079b48f4","block_type":"box","text":"accounts for which that team is responsible. Initial public offerings of U.S. equity securities will be identified as","page_number":164,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"cf11e85f-3694-4880-9c5f-8650f11f804c","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":164,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"dc22f001-2d25-46ae-835a-6f1319c54aef","block_type":"box","text":"based on market capitalization of the issuer of the security and the investment mandate of the client account and in","page_number":164,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"2fda6088-0ff2-4df2-a970-d8c06a530212","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":164,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"9fe5e854-dc4a-48ad-92e8-ba7c4e0e8007","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":164,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"2e16e189-c83f-48c2-a0a4-7c249286fb9a","block_type":"box","text":"client accounts within each investment mandate on a pro rata basis. In situations where supply is too limited to be","page_number":164,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"1ef0b6ea-329d-4261-a37b-b91e0106e15c","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":164,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"b7e69b3b-6db0-4a37-aa00-713d413a732e","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":164,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"05c3f6b6-cf5e-4419-ada2-70ac7a72e9cc","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":164,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"3bb58219-8a1e-4582-8367-42edca2d7485","block_type":"box","text":"clients may be used as well.","page_number":164,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"2b3c1ba5-5f71-4146-acbb-5c64d4befa42","block_type":"box","text":"II-127","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b86fe7f9-1613-46f7-9635-292f34372a3b","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"47091f3e-5d97-4e9f-9b49-2a63c474ee99","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":165,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"abb4f02c-8335-4a64-88d7-9668a8bd0596","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":165,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"b0937f9c-d5d2-490a-a39b-6b3508c437fe","block_type":"box","text":"and strategies of those accounts. For example, BlackRock may decide that it may be entirely appropriate for a growth","page_number":165,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"109fba88-5632-45bc-87d9-0801662973fc","block_type":"box","text":"fund to sell a security at the same time a value fund is buying that security. To the extent that transactions on behalf","page_number":165,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"439856b1-c8bf-4171-8fe6-cbb30129d48c","block_type":"box","text":"of more than one client of BlackRock or its affiliates during the same period may increase the demand for securities","page_number":165,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"ca5958ca-f6a3-40a9-b71c-1d373da16ebc","block_type":"box","text":"being purchased or the supply of securities being sold, there may be an adverse effect on price. For example, sales","page_number":165,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"1911b1ac-baeb-4e86-a536-3d64ef8ef4fe","block_type":"box","text":"of a security by BlackRock on behalf of one or more of its clients may decrease the market price of such security,","page_number":165,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"ffd6dddb-ec07-4d85-95c2-e071b6a7b254","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":165,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"7ca6b9ab-18fa-400a-a854-4e8575fc4062","block_type":"box","text":"consideration at or about the same time that would involve a Fund or other clients or funds for which BlackRock or an","page_number":165,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"b56c007a-1a89-413d-a624-7fdcc020b1f4","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":165,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"1da6ed4a-dc0a-4cc1-adca-924c4afbab21","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":165,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"ade5bf05-eba4-4384-808a-e49e0994d3fc","block_type":"box","text":"In cer tain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":165,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"b5e406e4-f230-4896-9f0b-4ecbcbef3a56","block_type":"box","text":"aggregate cer tain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":165,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"b6ae5f44-fef6-4aeb-b196-67f51f808d1b","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":165,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"3c7d2ea2-eb2a-4b30-b9b2-b787f9f11f85","block_type":"box","text":"will be aggregated in a single order if the trader believes the aggregated trade would provide each client with an","page_number":165,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"72505e68-db23-4e13-9b94-631863657e4a","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":165,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"c9f5550c-d56a-46dc-8c69-2449cf626280","block_type":"box","text":"aggregated order will be shared pro rata among the clients in the aggregated order. Generally, if an order for a","page_number":165,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"6eed37a4-9a7e-4ebc-8e06-521ac3161a13","block_type":"box","text":"par ticular por tfolio manager or management team is filled at several different prices through multiple trades, all","page_number":165,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"33ba8302-de74-4630-863c-b3592c7675a3","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":165,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"8092571f-ae12-4301-9046-ab967712c620","block_type":"box","text":"where average pricing is not permitted. While in some cases this practice could have a detrimental effect upon the","page_number":165,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"d2e198d7-fb43-42f4-bfca-42c7b155d708","block_type":"box","text":"price or value of the security as far as a Fund is concerned, in other cases it could be beneficial to the Fund.","page_number":165,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"5e1a2a5f-f134-4491-a30d-7d8b0a5ff32a","block_type":"box","text":"Transactions effected by BlackRock on behalf of more than one of its clients during the same period may increase","page_number":165,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"3c3dcb62-514b-4a76-a0c3-24b740103737","block_type":"box","text":"the demand for securities being purchased or the supply of securities being sold, causing an adverse effect on price.","page_number":165,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"b17283f2-bec5-4e70-94c5-cf5fd75d9e68","block_type":"box","text":"The trader will give the aggregated order to the broker-dealer that the trader has identified as being able to provide","page_number":165,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"bf8db7e6-c46e-4bc0-adaa-01b1b34d0c26","block_type":"box","text":"the best execution of the order. Orders for purchase or sale of securities will be placed within a reasonable amount","page_number":165,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"f48735f3-530d-4b25-93f4-4f3edddefeab","block_type":"box","text":"of time of the order receipt and aggregated orders will be kept aggregated only long enough to execute the order.","page_number":165,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"a324f7f5-6d70-4564-94b9-71ed01fae736","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":165,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"6c81ce9d-d5ba-41eb-8b2e-b3eb19627965","block_type":"box","text":"securities of which BlackRock, BRIL or any affiliated person (as defined in the Investment Company Act) thereof is a","page_number":165,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"0fc35e3c-f3cd-4e60-97b9-16dbb6ac35c4","block_type":"box","text":"member except pursuant to procedures adopted by the Board of Directors in accordance with Rule 10f-3 under the","page_number":165,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"3282ce24-8820-4409-8655-d3762b1f78cf","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":165,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"8dc9325c-9ae0-48e7-a0f8-eb87fbef5b2f","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":165,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"c42177bb-c819-463f-9def-3e6d7c569b0a","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":165,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"521329f2-ef6a-4dc1-8cf5-b97abf29cb74","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":165,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"50e3391a-7383-4af8-9376-28f9aff24dd6","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":165,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"6a14d3a3-da75-4d2c-9a77-e684533bcf25","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":165,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"017664c0-8e69-4a74-92d8-84078ddedacb","block_type":"box","text":"to all by BlackRock. In some cases, this procedure could have a detrimental effect on the price or volume of the","page_number":165,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"eeae3339-c615-4a2f-aaee-fe13708b47f0","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":165,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"df95163a-f3aa-431e-be41-448b9f46cd6a","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":165,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"ce5930de-f13d-4eb0-9ecd-1bc285cea97a","block_type":"box","text":"invest for its own account in the types of securities in which a Fund may invest. BlackRock may, from time to time,","page_number":165,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"ef6decc2-e64a-4704-8015-7d66149d70bc","block_type":"box","text":"effect trades on behalf of and for the account of a Fund with brokers or dealers that are affiliated with BFA, in","page_number":165,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"26bba589-1cef-4d1f-b244-ab8fa913dbcb","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":165,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"5a52dfff-43f9-47fa-a1ab-efab7b704a7e","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":165,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"bae239f0-93da-4244-9530-92c435ee1324","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":165,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"db021320-cf3b-4b77-a062-031c8b60005f","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":165,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"bf505643-1af1-4678-a79b-04de5fdd15b5","block_type":"box","text":"Portfolio Turnover","page_number":165,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"07d53c4b-ea00-4a03-9682-b6219f5e7758","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":165,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"9bde4bcb-607f-4283-943c-9a94c252484a","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":165,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"b9eda5b5-860f-4a19-927e-58b7ce241b8c","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":165,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"d6590319-4664-48e8-9b03-ee38b47cdaa7","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":165,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"ce0ed9ad-2d24-463e-9765-6d6c127cc05e","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":165,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"7b57f7f2-0d95-444b-b885-169722c92477","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":165,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"ff86ba00-a2cf-4d50-846a-c9d3d23b2fd8","block_type":"box","text":"II-128","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3d7cd025-bfb6-4455-ba26-0c92e05b7dd2","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b7410ac1-938f-4d46-86b9-64cb1f1f3110","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":166,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"7400b586-7b0e-449e-a045-62487d133f94","block_type":"box","text":"Dividends","page_number":166,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"0d5dfbd5-1d3c-4b15-bff2-4ad569a40c46","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":166,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"fc709ae0-62e8-4201-8bb3-0db8733ed626","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":166,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"45f2c9d2-052d-4e46-b6f9-930b702c9df3","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":166,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"be1274f0-2a11-4f4a-ad12-fc56bb359950","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":166,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"7f7a5e9c-018f-4bec-8331-14edee8daf7f","block_type":"box","text":"percentages of its ordinary income and capital gains be distributed during the year. If, in any fiscal year, a Fund has","page_number":166,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"437f5567-de0e-4de3-ac9d-aa31c1c31e03","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":166,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"24083c0a-880c-4218-b2bc-9fc9d2b6d358","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":166,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"d874f293-d9a0-4910-846b-bdbd57ffe6cf","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":166,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"18afe9f6-e362-4483-b15e-e8cae3ba7999","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":166,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"5f292d43-fc8a-4b09-9f16-1588c2ce041d","block_type":"box","text":"whether they are reinvested in shares of the Fund or received in cash. The per share dividends on front-end load","page_number":166,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"702f3d24-3c8a-46eb-acd0-40f5ff35c17b","block_type":"box","text":"shares, CDSC shares and Service Shares will be lower than the per share dividends on Institutional Shares as a","page_number":166,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"e8a3bdbd-ab9b-448c-ba44-eb6a852f3f91","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":166,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"a920c96b-a4f3-43ec-9c9a-56ea642c6898","block_type":"box","text":"applicable to front-end load shares and Service Shares, and the service and distribution fees applicable to Class R","page_number":166,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"4c86e042-060b-4a82-8bf4-82b2c63de30b","block_type":"box","text":"Shares. Similarly, the per share dividends on CDSC shares and Class R Shares will be lower than the per share","page_number":166,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"f47e1878-b699-4e98-b69e-076a9ad6c736","block_type":"box","text":"dividends on front-end load shares and Service Shares as a result of the distribution fees and higher transfer agency","page_number":166,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"883f1089-c6dc-4a4a-a2fa-f5a972d783e1","block_type":"box","text":"fees applicable to CDSC shares and the distribution fees applicable to Class R Shares, and the per share dividends","page_number":166,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"432bef85-47dc-470f-8dd5-cc7aaa6375e7","block_type":"box","text":"on CDSC shares will be lower than the per share dividends on Class R Shares as a result of the higher distribution","page_number":166,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"b95cc6ef-28b3-43e6-a4ef-10a9c713fd33","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":166,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"16de971e-f900-4098-92b2-343fc3357d12","block_type":"box","text":"Taxes","page_number":166,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"849a15b1-2a39-44c2-b288-0c199754875f","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":166,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"3c619502-ac92-414b-92b3-a0ddbce540ac","block_type":"box","text":"companies under the Code. As long as a Fund so qualifies, the Fund (but not its shareholders) will not be subject to","page_number":166,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"7baa2ba6-9710-40d1-937d-e768a402a9cb","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":166,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"b181cf7c-2f38-4444-a33c-d3a722cda81a","block_type":"box","text":"distributes to its shareholders in years in which it distributes at least 90% of its investment company taxable income","page_number":166,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"0b78d697-5026-41b0-9a9f-f8eb32b0e001","block_type":"box","text":"and at least 90% of its net tax-exempt interest income, if any, for the year. To qualify as a regulated investment","page_number":166,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"f5cbf1ed-ee14-4e87-872c-a67aad41f869","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":166,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"7e3ebc21-9a49-46bc-8949-7d348c996b8e","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":166,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"60c5d88e-4347-48b8-8a73-53c22b8c4297","block_type":"box","text":"for a discussion of the asset diversification requirements. In the case of a Feeder Fund, such Fund may look to the","page_number":166,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"43b7d2ed-af03-4d0f-99e3-b0e57b1177da","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":166,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"e05fd36e-10a7-43aa-805c-7eec8f333311","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":166,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"c40bbeb4-707c-4c52-bd34-c6b4c5b3d417","block_type":"box","text":"A Fund may be able to cure a failure to derive at least 90% of its income from the sources specified above or a","page_number":166,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"6ce1e898-aa28-43b5-af90-a8939707fbee","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":166,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"6b1705ce-bad1-4d1c-8553-cd997b245d24","block_type":"box","text":"paying a tax and disposing of assets. If, in any taxable year, a Fund fails one of these tests and does not timely cure","page_number":166,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"0cc6b451-4ef4-4650-a1e2-c94b2acf116e","block_type":"box","text":"the failure, the Fund will be taxed in the same manner as an ordinary corporation and distributions to its","page_number":166,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"7701ec0f-61ab-425d-9991-ac5ede88156a","block_type":"box","text":"shareholders will not be deductible by the Fund in computing its taxable income. Although in general the passive loss","page_number":166,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"f02454a6-06b8-4eb2-b896-267f6f448b5a","block_type":"box","text":"rules of the Code do not apply to regulated investment companies, such rules do apply to a regulated investment","page_number":166,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"9a7075d5-a47c-4776-9e28-75450af2afa7","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":166,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"6365c945-4521-4bb5-9e63-e3538eeb4ef2","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":166,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"f67c1bf5-efb3-4188-94de-67e5be5e6c0a","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":166,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"a77a8ad8-369a-461b-930a-b547d15d5a28","block_type":"box","text":"Each Fund intends to distribute substantially all of such income and gains. If, in any taxable year, a Fund fails to","page_number":166,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"ffb85490-54ad-47dc-b922-77c03c9bda71","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":166,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"6e75fbd3-2aba-4a79-a980-5e3ec7019238","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":166,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"46bd2bdb-d9d0-4cfc-a486-d0e3df7f08ab","block_type":"box","text":"earnings and profits (as determined under U.S. federal income tax principles) to its shareholders would be taxable as","page_number":166,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"76936ba9-50d5-4dbd-9269-fcf57087b1c0","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":166,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"44fd2ea7-32f6-468f-b3a5-d02d75032ac6","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":166,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"f739d5ad-a41e-45f0-9cb7-88535d1d536c","block_type":"box","text":"exempt obligations, as defined herein, would no longer qualify for treatment as exempt interest. Each Fund that is a","page_number":166,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"625baaa0-709d-4466-afbe-35e799b2c19e","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":166,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"adb8268c-20a3-4554-b77c-2429bc9415e3","block_type":"box","text":"U.S. federal income tax purposes, and therefore is considered to be a separate entity in determining its treatment","page_number":166,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"c5f689ab-7c30-436c-9826-f1f55542c5f3","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":166,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"fdff16e9-aae1-40b7-a320-337b18da9344","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":166,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"3989ded2-aa18-41f2-8660-488cb6318b6e","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":166,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"c00daf4c-f1d4-444d-83fc-99d168369edc","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":166,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"9fb1ae07-416c-436f-8cfc-1654de14407d","block_type":"box","text":"II-129","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9503f5f4-9e14-4210-99ad-dcfc72666a08","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c2a5e3a8-a216-41f2-9d21-5b50572f79ae","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":167,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"631495ac-212e-431d-a2f4-04d267ba6b35","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":167,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"6d8a30dc-c1dc-4743-9a6e-ca8a50369230","block_type":"box","text":"determined on a calendar year basis, and at least 98.2% of its capital gain net income, determined, in general, as if","page_number":167,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"11f514f3-2db7-4f00-a786-d38285b6b17a","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":167,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"b5c65a5c-e6e2-40a7-bc53-d0076452aef4","block_type":"box","text":"previous years. While each Fund intends to distribute its income and capital gains in the manner necessary to avoid","page_number":167,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"64303d5e-c2e2-48fd-8c46-bd5e99192c44","block_type":"box","text":"imposition of the 4% excise tax, there can be no assurance that a sufficient amount of the Fund’s taxable income","page_number":167,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"2d289904-6d3c-47d1-9833-d5e67577b0b9","block_type":"box","text":"and capital gains will be distributed to avoid entirely the imposition of the tax. In such event, a Fund will be liable for","page_number":167,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"cbf9500a-fb3f-4c68-bf7d-307b49df7e10","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":167,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"a155aa91-6991-4db1-a3af-712e86d8202c","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":167,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"c426e90c-eb9f-40f2-8a8f-633b2805696b","block_type":"box","text":"have been reduced to zero. In the event that the Fund were to experience an ownership change as defined under the","page_number":167,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"743a67cc-e68a-4a5d-af45-9d2be435860a","block_type":"box","text":"Code, the Fund’s loss carryforwards and other favorable tax attributes of the Fund, if any, may be subject to","page_number":167,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"23ece863-e661-4241-8ea2-dd2638ddf136","block_type":"box","text":"limitation.","page_number":167,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"d5f233e9-5e3e-4902-a003-ef2fdca7d6fe","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":167,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"26cfa35c-db44-4d73-9d5b-8b15d9d87e6b","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":167,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"9d2cad5d-8944-4289-bb91-708857c55103","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":167,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"4ff1d01e-b889-42b9-b9d2-804f29d76112","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":167,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"3d87ff3c-dd38-476d-8d0c-382ba09f9216","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":167,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"cfa00677-405b-40d2-bbce-0117a085c785","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":167,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"de20da98-6476-48bb-93f3-6ab74f342f43","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":167,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"b1c581a3-fabe-49cc-a63a-4986f57ca567","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":167,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"3308fc2a-5320-46d2-995a-7eff83723ac9","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":167,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"87c8c044-a224-426c-8470-e43a174eab2d","block_type":"box","text":"taxable to such shareholder at long-term capital gain rates provided the shareholder has held the shares on which","page_number":167,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"a967bfe2-e494-4251-9b1a-70bf047829b5","block_type":"box","text":"the dividend was paid for at least 61 days during the 121-day period that begins on the date that is 60 days before","page_number":167,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"c5e05156-ca3b-4a82-91ed-8cfbec350ab5","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":167,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"64388eae-fd3d-4d1b-876f-b1a45d376528","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":167,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"888adc42-82f6-4e18-8c89-844d432ef562","block_type":"box","text":"was paid for at least 91 days during the 181-day period that begins on the date that is 90 days before the date on","page_number":167,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"10b93886-8a11-44a0-b66b-d9298597efaa","block_type":"box","text":"which the shares become ex-dividend with respect to such dividend). However, to the extent a Fund’s distributions","page_number":167,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"69794bb3-66f1-412c-9415-e720bd6f771c","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":167,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"1d140503-054f-4f71-a6bc-69af40c72a6b","block_type":"box","text":"tax purposes and shor t-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":167,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"df83661b-6f99-4153-90f0-37cdf5b002ec","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":167,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"bd6237db-8b6d-4bb6-b58e-a0cc371488db","block_type":"box","text":"constitute “qualified dividend income.”","page_number":167,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"2bf2c008-78b1-42b7-90d5-5abb42eb4738","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":167,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"b7d0addc-604b-40cd-b8dd-b76f83bdf40d","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":167,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"29bd0758-09fa-4515-86e2-7df36896b5da","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":167,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"c590da69-56e9-4e7f-9d9e-49c0fad4930c","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":167,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"b9be7fe8-7965-489e-95ea-148ded180120","block_type":"box","text":"Fund retains net capital gain, it is subject to tax on that gain, and may designate the retained amount as","page_number":167,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"79a21b65-da64-42b2-b92c-ff9f1e4f76c4","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":167,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"30f3bf0a-0708-40f8-a2c7-eca2608bc687","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":167,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"daacea5a-7334-4f2a-bb90-03e16c5d7d08","block_type":"box","text":"have paid and may claim as a credit against their U.S. federal income tax liability (and as a refund to the extent it","page_number":167,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"86a52c99-de2d-4761-aada-2dca81a82752","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":167,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"188cb040-1c32-459c-abea-cfe3e7d0e473","block_type":"box","text":"basis of their shares in the Fund by the excess of the amount included in income over the amount allowed as a credit","page_number":167,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"c5f287ee-38ab-43f6-bddd-1a2ad97c6253","block_type":"box","text":"against their taxes.","page_number":167,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"b1a477e5-0878-4f46-a2e2-70cb76f76c36","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":167,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"6fd174c7-2d17-4a97-834c-1a8ff9837725","block_type":"box","text":"tax basis of a holder’s shares and after such adjusted tax basis is reduced to zero, will constitute capital gains to","page_number":167,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"cf20742f-c87a-4f2c-86ec-45d187bd5212","block_type":"box","text":"such holder (assuming the shares are held as a capital asset). Distributions in excess of a Fund’s minimum","page_number":167,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"41c196af-5477-4e79-a972-44d0d4c66a30","block_type":"box","text":"distribution requirements (or taxable income) but not in excess of a Fund’s earnings and profits will be taxable to","page_number":167,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"ac23b7a9-a7fa-48b3-a3fc-337b855546cc","block_type":"box","text":"shareholders and will not constitute nontaxable returns of capital. In the case of a Fund with a non-calendar taxable","page_number":167,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"bb56b49f-8f28-4961-9c7f-157282d2c2ce","block_type":"box","text":"year, a Fund’s earnings and profits are allocated first to distributions made on or before December 31 of the taxable","page_number":167,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"b1b136cb-0d5d-4657-9a41-2f596e9a4898","block_type":"box","text":"year, and then to distributions made after December 31 of the taxable year. Any loss upon the sale or exchange of","page_number":167,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"23302915-78ca-4bfe-9ed7-fd47a82b9e02","block_type":"box","text":"Fund shares held for six months or less will be treated as long-term capital loss to the extent of any capital gain","page_number":167,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"afa79635-0152-4206-9da1-df7aed79973d","block_type":"box","text":"dividends received by the shareholder.","page_number":167,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"1eff3280-b067-4cb0-9179-74cce512e443","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":167,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"f9037920-49bd-4a49-aa3c-6875f9da3da1","block_type":"box","text":"shares of a Fund. Distributions by a Fund, whether from ordinary income or capital gains, generally will not be eligible","page_number":167,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"35931ea1-5163-466e-b761-e1ceaf0f0c2a","block_type":"box","text":"for the dividends received deduction allowed to corporations under the Code. If a Fund pays a dividend in January","page_number":167,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"522bede0-6785-4dbb-a617-629d45a1270d","block_type":"box","text":"that was declared in the previous October, November or December to shareholders of record on a specified date in","page_number":167,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"faa021ba-e414-440d-b3d6-5e23c031ee37","block_type":"box","text":"II-130","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0aea3059-0a15-4f46-8337-167ebff25115","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b3eabf1f-3ad8-4bd1-8d33-4db0fa866d0b","block_type":"box","text":"one of such months, then such dividend will be treated for tax purposes as being paid by the Fund and received by its","page_number":168,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"9317ee5a-92b9-456a-9731-082d22addc48","block_type":"box","text":"shareholders on December 31 of the year in which the dividend was declared. In the case of a Fund with a non","page_number":168,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"17442b0b-10a1-4d6c-af75-84ca038fba98","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":168,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"85ec3bce-5cee-4484-b811-2fe33b50660f","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":168,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"c88341b3-3500-44d5-96b5-4b57d1a07cfa","block_type":"box","text":"dividends made after December 31 of such taxable year. A Fund may elect to defer recognizing, until the following","page_number":168,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"6235d507-cc88-4004-81d0-970bf79696d0","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":168,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"54cb03b6-a6b0-4e3f-a85c-1cd174a0d4ce","block_type":"box","text":"losses arising after October 31 and/or December 31 of the current taxable year. This may have the effect of","page_number":168,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"71de522b-28e2-4f73-a321-dbb2e81ceec2","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":168,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"2eee8b20-d120-44df-93d8-c467c70b3729","block_type":"box","text":"taxable year.","page_number":168,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"f46b2019-85e8-4388-8757-47805d88a96e","block_type":"box","text":"No gain or loss will be recognized by Investor C shareholders on the conversion to Investor A Shares. A","page_number":168,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"28deab0d-e967-4a02-bcb1-3ab06ea39080","block_type":"box","text":"shareholder’s tax basis in the Investor A Shares acquired upon conversion will be the same as the shareholder’s tax","page_number":168,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"99fc187a-e53d-4e07-ae6a-b91474a08cf1","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":168,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"a2a8d454-6484-422c-b0c2-04095385f581","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":168,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"ae29f084-984f-4787-8857-2e1b15ba2d55","block_type":"box","text":"If a shareholder of a Fund exercises an exchange privilege within 90 days of acquiring the shares of a Fund, but","page_number":168,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"06e92871-b62a-4417-8fcf-9fe71ea2b38b","block_type":"box","text":"on or before January 31 of the following year, then the loss that the shareholder recognizes on the exchange will be","page_number":168,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"b91c114f-f613-47ce-a421-65c22223d85d","block_type":"box","text":"reduced (or the gain increased) to the extent any sales charge paid on the exchanged shares reduces any sales","page_number":168,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"adc5eea7-ca4b-4fe6-9cc6-9e954bf433aa","block_type":"box","text":"charge the shareholder would have owed upon the purchase of the new shares in the absence of the exchange","page_number":168,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"67f97a2c-34e0-4522-bd72-34b85e2b04c7","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":168,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"31f0dbd0-0ffa-40fe-a1f9-fbf520263130","block_type":"box","text":"A sale, redemption, or exchange of Fund shares may give rise to a gain or loss. In general, any gain or loss","page_number":168,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"069a2ff1-5efd-4ca0-b46d-c21078a59739","block_type":"box","text":"realized upon a taxable disposition of shares of a Fund will be treated as long-term capital gain or loss if such shares","page_number":168,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"42a2aea1-7e03-4078-88be-f341e5fb3116","block_type":"box","text":"have been held for more than 12 months. Otherwise, the gain or loss on the taxable disposition of Fund shares will","page_number":168,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"a9838e80-5284-43a2-b17b-8faf9431cd13","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":168,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"7aabb37a-a2ae-4eec-9a50-6fc1ea6d743e","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":168,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"49e81138-ae0c-4a89-894f-efdb01247148","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":168,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"d693e318-ddc0-41d1-9033-75b7eafc7269","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":168,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"a093b000-a8d6-4f62-93ba-e28237625fd3","block_type":"box","text":"plan described in section 401(a) of the Internal Revenue Code should see the Fund’s Prospectus for a discussion of","page_number":168,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"9c62903a-b7d1-4568-8202-0f73ef249c02","block_type":"box","text":"special tax rules that apply to their investments.","page_number":168,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"29b23e58-06cc-4ea6-a71a-881d2b9c060d","block_type":"box","text":"A loss realized on a sale or exchange of shares of a Fund will be disallowed if other substantially identical shares","page_number":168,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"63417916-a9fe-42c6-b5f8-7310095612b5","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":168,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"b0051cea-08d6-4b70-9107-36a759e459b8","block_type":"box","text":"30 days before and ending 30 days after the date on which the shares are sold or exchanged. In such case, the","page_number":168,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"2d7d75f4-20d6-474e-bba7-6d2917921d96","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":168,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"e7f80781-7f3b-4c4e-b0b8-e910166062f7","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":168,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"de8b2d65-0b78-4659-b29e-35aaa309aa30","block_type":"box","text":"shares of the Fund acquired on or after January 1, 2012, and sold or redeemed after that date. This information","page_number":168,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"ba287d0b-0982-45fa-b979-d192b3405fe0","block_type":"box","text":"includes the adjusted cost basis of the shares, the gross proceeds from disposition, and whether the gain or loss is","page_number":168,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"40295a57-0f9f-43e5-ac36-09ef63730bb4","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":168,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"74e592cb-a1c0-4ff9-9d7c-811d0fb5d78b","block_type":"box","text":"selected by the Fund, unless a shareholder, before the sale or redemption, informs the Fund that it has selected a","page_number":168,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"b3dde650-23fb-4df3-b0da-4eec0712bc0a","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":168,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"3d8e54ea-9f91-4fbe-87a0-8f285ab2519e","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":168,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"9c3faa63-da67-4b8b-8fbc-e1cd36ef0319","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":168,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"7c186f4c-3cad-4fe9-9c21-0b21b4d875bb","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":168,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"4ecfd189-32b6-4add-9385-1ca4b8d16175","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":168,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"b1380770-f8fb-48f1-ad74-3967f9f1610d","block_type":"box","text":"redemption of such shares.","page_number":168,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"07d8beac-c992-4bb6-88d4-fde1ac71b82d","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":168,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"4d3a1903-99b7-49ee-b72c-2e0a3dbae03a","block_type":"box","text":"purposes of por tfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":168,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"eeab3b91-0a24-4f8c-b60c-6a889eeeb41c","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":168,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"d9be7e3d-5f8a-430c-be9a-9c3bccf8ecb4","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":168,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"9ab45c7c-3ddf-4d65-a360-51e9de79dd54","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":168,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"084b733f-cbb7-49f3-9450-f4ee43cddb24","block_type":"box","text":"capital gains as described above, the Funds do not employ a systematic approach to tax management. There is no","page_number":168,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"d9cb45a1-f131-4b5d-a821-6b1861878a4d","block_type":"box","text":"assurance that a Fund can or will be successful in effecting any redemptions in kind and shareholders should expect","page_number":168,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"c063d89a-bf04-493c-99c8-36a09066f5ed","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":168,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"8cdfc490-f2b6-4162-8ab1-ea00ecfd6ee8","block_type":"box","text":"Cer tain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":168,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"f8c43787-5fb8-4520-98ec-b270e618a24f","block_type":"box","text":"agreements. The U.S. federal income tax treatment of a derivative contract may not be as favorable as a direct","page_number":168,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"89c2e2c3-20bc-4f61-b827-c556c770d371","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":168,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"94e91178-2a51-4256-9ed3-d9dfe40100a6","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":168,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"e7ec70ae-e0c6-4db1-a791-8db33aecd2c5","block_type":"box","text":"II-131","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fbed2193-f089-4590-9675-dbb5d7ba9b69","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"536c1e1e-70db-44b6-8860-2b57c98ee86a","block_type":"box","text":"income rather than capital gains. In addition, section 1256 contracts held by a Fund at the end of each taxable year","page_number":169,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"8189fc1c-85c5-424c-aaf2-df4831894bd9","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":169,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"08781d3a-3d18-4d66-818d-75264db4e753","block_type":"box","text":"market,” such that unrealized gains or losses are treated as though they were realized (with such gain or loss being","page_number":169,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"524e40e0-c9b1-4d76-b9a6-4a48f1df16c7","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":169,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"c9e00a89-a6a4-4506-8435-77b81214f544","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":169,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"9326cb5f-1c03-4640-a02c-9a9030d05651","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":169,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"daf779fe-889c-440a-9949-d7bc5f287fac","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":169,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"330480e1-b5f3-4ae5-9259-366dc22bbac3","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":169,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"18991b4e-7b22-4748-b123-196b29584c82","block_type":"box","text":"Cer tain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":169,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"9fc6c0d4-660e-4fea-b653-43fedbf46fe7","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":169,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"714d6c23-66d2-4374-9c93-c7c9f89204b6","block_type":"box","text":"agreements since all the income on a notional principal contract may be ordinary income, whereas 40% of the gain","page_number":169,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"2ba26d56-3bf9-4f28-ad83-f900828286c9","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":169,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"909b84ea-a008-41cf-96fd-0586b7b16fa7","block_type":"box","text":"term capital gain taxed at more favorable rates when distributed to shareholders. The rest is long-term capital gain,","page_number":169,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"81d4e700-02fe-4c39-816e-d664c51e2fdf","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":169,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"83b047c3-22d8-4bf2-813a-493d831be85f","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":169,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"293c90f3-160d-4d93-82d8-139c6b1936d1","block_type":"box","text":"finalized, these regulations could result in the Fund having to treat more of its income on swap agreements and more","page_number":169,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"accc727b-34b6-4565-ae4c-471d9bb06751","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":169,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"adcc0ea5-aa8a-4f03-8053-2597c79f173a","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":169,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"6c8ff46e-baa8-4369-9835-06bf10fc837f","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":169,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"cd6b508a-6646-4a94-a303-33bb8ea7d004","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":169,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"dd51e244-1a91-42d9-b5dd-6cdd5dbf31c1","block_type":"box","text":"price of the securities over their issue price (“original issue discount”) each year that the securities are held. Since","page_number":169,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"bb8f22da-50ec-4035-a3db-194947351ace","block_type":"box","text":"the original issue discount income earned by a Fund in a taxable year may not be represented by cash income, the","page_number":169,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"7e24556c-9cbc-4f45-81ef-dfce092045d0","block_type":"box","text":"Fund may have to dispose of securities, which it might otherwise have continued to hold, or borrow to generate cash","page_number":169,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"434c7f7c-4f4d-4493-bd6e-8b1e622e21c3","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":169,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"20d56c84-1394-45a1-bc21-613729f4dee4","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":169,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"ad1f2f8c-37b6-4d53-a066-3920d9e030b7","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":169,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"f43adde6-8d3f-4f3c-b718-44227302c94d","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":169,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"921a4661-b051-41ca-9421-3a5c5bca38af","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":169,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"57a73b17-2a5b-4a73-b143-004fd71cfe5f","block_type":"box","text":"contracts or forward contracts (or similar instruments) may give rise to ordinary income or loss to the extent such","page_number":169,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"7ee1e1e3-646c-4e65-85b2-727ac5acc87d","block_type":"box","text":"income or loss results from fluctuations in the value of the foreign currency concerned. Any such net gains could","page_number":169,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"1e60fda3-64bc-4d35-957e-8cbb4564803f","block_type":"box","text":"require a larger dividend toward the end of the calendar year. Any such net losses will generally reduce and","page_number":169,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"dd116811-446b-40aa-8621-226949978c22","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":169,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"ebfe5124-b32a-4d20-829f-9799e31738fc","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":169,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"acb35fbd-fe26-46da-86e5-585486b94604","block_type":"box","text":"income. Any net ordinary losses so created cannot be carried forward by the Fund to offset income or gains earned","page_number":169,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"65c47554-d624-4210-beff-20eeab4b1be0","block_type":"box","text":"in subsequent taxable years.","page_number":169,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"7d1e1b02-f884-4314-9fab-f9c595c6f4a6","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":169,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"82f3f331-b2e2-4d15-ba67-06921dbff45a","block_type":"box","text":"through entities to the extent owned by U.S. persons) generally will be subject to a 30% U.S. withholding tax under","page_number":169,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"5396149a-0ead-4140-a42c-4ec7801a22de","block_type":"box","text":"existing provisions of the Code applicable to foreign individuals and entities unless a reduced rate of withholding or a","page_number":169,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"80694536-9550-457a-9ed8-1616690711ae","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":169,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"4c06e93b-4eb8-4fc1-aecf-502cfc751d34","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":169,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"88b78abd-9d71-4e38-8d54-2996bc90cf42","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":169,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"d28596f7-e6be-494b-be48-f1c157644c9a","block_type":"box","text":"company from shor t-term capital gains and qualified net interest income (including income from original issue","page_number":169,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"4970bcc2-7db3-4522-b63c-1e5bb0a3b676","block_type":"box","text":"discount and market discount) and paid to shareholders who are nonresident aliens or foreign entities, if and to the","page_number":169,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"adae2d16-22f9-4fbe-8335-579f0926ad85","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":169,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"fa8abec3-7200-4e6f-8912-50d256b70e77","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":169,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"b82872ab-9a19-4ffa-826a-c3d9f07b1e9b","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":169,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"8cd13fc7-7cd2-4474-b15d-9351e6b8238b","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":169,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"30280a8d-8279-4826-bba5-497efb5f5fa4","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":169,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"8d44732e-5140-4189-8fcc-988342b17884","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":169,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"0243968c-89fe-43d4-a41a-5a2f61edfa74","block_type":"box","text":"relating to its foreign status (including, in general, furnishing an IRS Form W-8BEN, IRS Form W-8BEN-E or substitute","page_number":169,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"38fa71b4-b747-407d-b059-6c6c39f86cfa","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":169,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"0d8b81a2-bcfe-4571-ba62-042b04877e01","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":169,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"38c60d23-efb1-4546-8a3a-d354d6af4d58","block_type":"box","text":"intermediaries with respect to the application of these rules to their accounts. It is not possible to predict what","page_number":169,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"9557c502-7870-47d5-bccf-9124580b4c7f","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":169,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"b46272b2-08fd-4e35-9572-7f3738c56d6d","block_type":"box","text":"dividends under these rules.","page_number":169,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"f145bf2f-005c-4928-b3a9-09278ee99772","block_type":"box","text":"II-132","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4e1cb9c6-48bc-4f3c-9598-906275ebe820","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"701658d3-8ac2-4c81-8153-277e18c6d6c5","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":170,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"50cc2cfd-84d6-4784-84ed-dceb9959e846","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":170,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"0a8dd2bb-81f1-479b-8499-71cee91a82ad","block_type":"box","text":"the date of the distributions, to the extent the distributions are attributable to gains from sales or exchanges of U.S.","page_number":170,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"1a2181f7-fb5b-4e68-befb-d8f083e4e2f5","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":170,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"f38465d7-69da-485b-8d4c-72af8ff5603f","block_type":"box","text":"although exceptions may apply if any class of stock of such a corporation is regularly traded on an established","page_number":170,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"315fd1a6-3786-421b-9196-b856d80ea7b3","block_type":"box","text":"securities market and the Fund has held no more than 5% of such class of stock at all times during the five-year","page_number":170,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"07da2839-6e11-414e-b646-aa3290dce874","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":170,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"4a7382ea-a33f-480d-a9ac-7750f9aff314","block_type":"box","text":"effectively connected to a trade or business within the United States, which is generally subject to tax at the","page_number":170,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"22644063-fabe-4492-b154-4ffb60a87d2b","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":170,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"d1d07ca8-27e0-4a52-8791-cdbf6b533089","block_type":"box","text":"than 5% of any class of stock of the Fund at all times during the previous one-year period ending on the date of the","page_number":170,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"c50e9104-5241-45f5-bbb5-19543894f831","block_type":"box","text":"distributions. Such distributions will be subject to U.S. income and withholding tax and generally will require a foreign","page_number":170,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"66f9af87-7b61-43f5-9e5f-be33300956bc","block_type":"box","text":"shareholder to file a U.S. federal income tax return. If the foreign shareholder held no more than 5% of any class of","page_number":170,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"004faecf-1df7-491f-90b2-2f84a6fb7e85","block_type":"box","text":"stock of the Fund at all times during the previous one-year period ending on the date of the distributions, the","page_number":170,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"08f3d913-7a01-4776-903c-1829f4175fee","block_type":"box","text":"distributions will be taxable as ordinary dividends and subject to withholding at a 30% or lower treaty rate. In addition,","page_number":170,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"32a92d5e-5b04-4b0a-b54c-789b85e7da95","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":170,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"66656665-c30f-42f5-b5b1-960a2574fcd6","block_type":"box","text":"income and withholding tax and generally will require the foreign shareholder to file a U.S. federal income tax return,","page_number":170,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"252995b1-fc4e-4cef-acb7-d6a50d211dce","block_type":"box","text":"although exceptions may apply if more than 50% of the value of the Fund’s shares are held by U.S. shareholders or","page_number":170,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"9554ede2-4331-4295-ab61-c60adc9d8870","block_type":"box","text":"the foreign shareholder selling or redeeming the shares has held no more than 5% of any class of stock of the Fund","page_number":170,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"5eb33d85-2be9-4727-b8e0-fc47c62b44a3","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":170,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"e80dee09-995f-455a-b3ad-38949feed636","block_type":"box","text":"Provided that more than 50% of the value of a Fund’s stock is held by U.S. shareholders, redemptions and other","page_number":170,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"42bf49d6-05e4-421a-9c97-2dd5f0920aea","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":170,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"00c22b53-075f-4ded-85a0-1d9ca1708c51","block_type":"box","text":"corporations”, although exceptions may apply if any class of stock of such a corporation is regularly traded on an","page_number":170,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"0f218bb5-c0f5-4453-ac6c-1c918b7f3eb2","block_type":"box","text":"established securities market and the Fund has held no more than 5% of such class of stock at all times during the","page_number":170,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"1fe55167-086c-448e-a77f-93953bfd2ff7","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":170,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"8f91fead-7553-414e-acf6-b8a4b8a942bf","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":170,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"5dfe4044-feaa-438f-84cd-33e0a4c5b3d5","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":170,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"f6d8d774-9ec9-4f1c-8b92-1bfaed56bbdd","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":170,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"d2c93589-951d-44f0-afdb-72551cdee662","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":170,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"91f025ec-ca2e-4722-ac56-6524a8ed11d5","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":170,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"c8cdd61a-f95c-4bb2-b540-6e88d7a1e8bb","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":170,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"24f685d8-ff7f-43c5-b252-1f852d9f89cb","block_type":"box","text":"concerning the par ticular tax consequences to them of an investment in a Fund.","page_number":170,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"bd2ffd73-ee9c-41e0-8975-36adbf6c918d","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":170,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"2cdf5e54-cd42-4761-9415-bb4e5d0609f3","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":170,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"1008333d-91b7-4b48-aac2-83505b9be284","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":170,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"16a72ace-cce4-4257-8fef-b22c7fb2356d","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":170,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"d90a19a5-04ef-431d-b9f4-8790454efaa4","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":170,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"a6e44d22-7251-49ba-a855-154122124a19","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":170,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"ea6a80a6-4da5-40a1-8907-d8ebfb591c39","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":170,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"ec2dde79-32d5-40c7-be8d-0d30418f8fc0","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":170,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"81d8f2ba-e6a5-4d93-9a15-4e1cd12d3b1c","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":170,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"40b3a144-e91f-45dd-8c1b-e59dbf3fff70","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":170,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"ae3cedb7-2556-451a-86c5-0656f7a3e0ba","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":170,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"763a665f-252c-40ab-95b5-6f65fd002465","block_type":"box","text":"is on file with the Fund or who, to the Fund’s knowledge, have furnished an incorrect number. When establishing an","page_number":170,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"411e6390-4483-43ba-a161-0df7c06e8739","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":170,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"584664c0-3e0e-4ea0-af91-5724de3c9fdf","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":170,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"c0057877-0a22-4340-b8eb-e9c491d0f78f","block_type":"box","text":"may be allowed as a refund or a credit against a shareholder’s U.S. federal income tax liability, provided that the","page_number":170,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"d45d7c59-e0d1-4c27-99e7-edbf4bb7f73a","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":170,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"725b44ad-d786-404b-b5fc-1d5ca3bc8ce3","block_type":"box","text":"If a shareholder recognizes a loss with respect to a Fund’s shares of at least $2 million in any single taxable","page_number":170,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"2f390036-b566-4e13-af31-d430856553ea","block_type":"box","text":"year or $4 million in any combination of taxable years for an individual shareholder or $10 million in any single","page_number":170,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"8fe3583b-f547-4650-b6f2-9b9642d92260","block_type":"box","text":"taxable year or $20 million in any combination of taxable years for a corporate shareholder in any single taxable year,","page_number":170,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"15299d82-4fe8-4b25-bfba-29f92e13a757","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":170,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"b5b87cc3-e2d9-4d1f-acd2-45de337016e6","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":170,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"502331b2-3401-4619-a6ff-ec20780c97bb","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":170,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"0ce552b5-553c-4128-920e-d85828575da9","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":170,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"c429d70d-25bf-4379-ac7d-d042bf34858a","block_type":"box","text":"II-133","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bb183e72-370f-4ac2-bfc9-17c4da778b9a","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f7011663-73ca-414e-a3a0-cb05caff5a50","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":171,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"09343849-3de2-4b81-b9ff-2d2fc695421c","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":171,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"36ea3abe-04f3-41b7-95e1-8c6486520551","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":171,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"888967b4-5f19-4cba-a245-ad876a311a9d","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":171,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"747b9ee0-bfd3-422e-b501-c3bb7d4abe5d","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":171,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"30461b8f-c292-4ce3-a2d0-bcb504b62887","block_type":"box","text":"be offset by otherwise allowable deductions for tax purposes; (iii) not be eligible for reduced U.S. withholding for non","page_number":171,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"c751b289-f770-48f9-ab2d-2a37904913a4","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":171,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"f8e366a9-8965-4799-86c9-b60111b0e535","block_type":"box","text":"organizations,” as defined by the Code, are Fund shareholders. The Fund tries to avoid investing in REITs that are","page_number":171,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"92719bea-e388-417b-a48b-a894525318da","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":171,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"d94bec8a-e836-475f-b7e2-4b6e4b8f4170","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":171,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"22a04960-c635-476f-afc3-828673455ded","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":171,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"9977862c-3210-4bd1-a952-f190c22975e7","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":171,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"4f3bea86-df4f-4e53-9435-55adbdd9b463","block_type":"box","text":"investment oppor tunities.","page_number":171,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"a6b4e0b9-e984-43bd-afad-54ca51aaed07","block_type":"box","text":"Dividends and interest received and capital gains realized by a Fund may give rise to withholding and other taxes","page_number":171,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"9873b13a-090e-4fd7-880f-8fbabab4da01","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":171,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"b408a692-1820-4f02-ab73-075b97495864","block_type":"box","text":"eliminate such taxes. Shareholders of a Fund more than 50% by value of the assets of which at the close of a taxable","page_number":171,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"88e444b4-bc1a-41a2-83ab-b32f6bb22bdf","block_type":"box","text":"year are foreign securities may be able to claim U.S. foreign tax credits with respect to such foreign taxes paid by the","page_number":171,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"740b913b-c2df-4ffb-aefa-dcd0b62e35c3","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":171,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"1623ec0b-8eaa-4671-a930-4ef350fb5970","block_type":"box","text":"accounts and cer tain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":171,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"c12d6d7c-ff38-45ba-b5f9-f0ff4cc14dbe","block_type":"box","text":"held in a Fund. In addition, a foreign tax credit may be claimed with respect to withholding tax on payments with","page_number":171,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"b6ce6432-c0d0-4472-9941-b1e120f1ac95","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":171,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"82cb8942-e63c-443a-b793-ae207b8e51f3","block_type":"box","text":"shareholder and the Fund must meet these holding period requirements, and if a Fund fails to do so, it will not be","page_number":171,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"da922d9f-b9b2-4558-9a77-c8cff0285d35","block_type":"box","text":"able to “pass through” to shareholders the ability to claim a credit or a deduction for the related foreign taxes paid by","page_number":171,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"de6fe39a-06cf-466d-a8c8-4598ffaaa712","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":171,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"c847b243-4628-4c16-a8f2-87df1d9105a5","block_type":"box","text":"subject to foreign taxes, it may not be able to pass through to its shareholders the ability to take a foreign tax credit","page_number":171,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"706690bb-6c42-4a3b-a089-ce8b8e5471b4","block_type":"box","text":"for those taxes. If a Fund satisfies the applicable requirements, such Fund will be eligible to file an election with the","page_number":171,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"d11c3c23-61a9-4422-aecc-f2277a29c83f","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":171,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"dd3ccdd1-769c-4489-9cc8-8b0626baeebd","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":171,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"1f9b8b21-78b1-4ef3-bab2-872a317520b0","block_type":"box","text":"deduct such propor tionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":171,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"72deb01c-87ca-4a38-98a0-a2dc841dd3f0","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":171,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"8dd2cfa0-d88e-4f85-85c4-cfdff0e6ca0f","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":171,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"ebb723da-a02b-4654-8fc3-6642f669d80f","block_type":"box","text":"corporation may be subject to U.S. withholding tax on the income resulting from a Fund’s election described in this","page_number":171,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"0da51dc0-c86a-4f1a-86a1-26298863ad3e","block_type":"box","text":"paragraph but may not be able to claim a credit or deduction against such U.S. tax for the foreign taxes treated as","page_number":171,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"32ec2624-e705-464f-b25d-af90dc71e0b7","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":171,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"f9522baa-23f5-45ec-9278-8969bf2435f2","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":171,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"d58192a4-8311-403e-a8e5-8e900c20067f","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":171,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"cf07f54f-bfde-4ff7-9c80-8d579ec747f1","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":171,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"782fd2a1-f9bd-45f1-8fb8-2f7eba048134","block_type":"box","text":"allowance of cer tain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":171,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"17984d3e-c3b5-4472-b2cf-95c206f5df12","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":171,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"acf3dad9-6e9c-4ff7-9dbd-5563231ec69f","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":171,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"f0001419-ea86-41a8-9cf5-453d06a95b9f","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":171,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"7ab3d85c-0aef-4b9e-a239-4b1f8c9af7a5","block_type":"box","text":"positions in its por tfolio (","page_number":171,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"fedcb5d4-e1cc-456d-8c79-2ed7df688f7c","block_type":"box","text":"i.e.","page_number":171,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"8509cd74-2f32-443b-b303-6f1830bc0c1e","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":171,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"846a4697-2768-405c-b443-4d15ea8e3791","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":171,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"a36a0f2e-15ba-4acf-84bf-e7daf20f4e2c","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":171,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"102b1600-d90e-40ca-a403-7a57affca2ad","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":171,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"a3467451-1093-49f3-b259-b1001678e45e","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":171,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"f0df73db-2e72-454f-ae52-3d2074c50d09","block_type":"box","text":"Cer tain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":171,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"35b3c146-55cb-4e87-8557-a0a558a3100b","block_type":"box","text":"any of the Fund’s transactions in foreign currencies and hedging activities, are likely to produce a difference between","page_number":171,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"57b1d40d-7ebe-4bc3-9e46-7c78481dd0ea","block_type":"box","text":"its book income and the sum of its taxable income and net tax-exempt income (if any). If such a difference arises,","page_number":171,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"9dc0ff32-4a97-4f7e-902b-2bc68357797e","block_type":"box","text":"and the Fund’s book income is less than the sum of its taxable income and net tax-exempt income, the Fund could","page_number":171,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"4b9c5453-71ac-4dfe-be90-5ceae38b3046","block_type":"box","text":"be required to make distributions exceeding book income to qualify as a RIC that is accorded special tax treatment","page_number":171,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"67215249-adf2-4eff-b8e5-7cd238b9f1af","block_type":"box","text":"and to avoid an entity-level tax. In the alternative, if the Fund makes any distribution based on book income and such","page_number":171,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"a68de215-95d2-4188-b05a-64603640b183","block_type":"box","text":"book income exceeds the sum of its taxable income (including realized capital gains) and net tax-exempt income, the","page_number":171,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"5b64f517-57d9-470f-b4d7-4fbe07756752","block_type":"box","text":"distribution (if any) of such excess generally will be treated as (i) a dividend to the extent of the Fund’s remaining","page_number":171,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"901ee999-ed25-4ab7-a8b7-71ad5d4abd78","block_type":"box","text":"II-134","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c1fe27a2-588d-44df-9021-619144824ec4","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d75776ab-4e3c-41a7-a235-84341ee3d313","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":172,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"cd3f6129-a437-474c-887d-25b95a067ec0","block_type":"box","text":"capital to the extent of the recipient’s basis in its shares, and (iii) thereafter as gain from the sale or exchange of a","page_number":172,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"2581effc-af73-4521-9b2c-8cb599d07dfc","block_type":"box","text":"capital asset.","page_number":172,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"4cb1b044-620f-45bf-9768-6cbe408fab5a","block_type":"box","text":"If a Fund invests in underlying funds, the Fund’s realized losses on sales of shares of underlying funds may be","page_number":172,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"52839f70-e022-47b2-82d1-78e5d698018e","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":172,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"d19a4a34-bce0-44b4-a875-b08a60bfd761","block_type":"box","text":"be recognized as ordinary income by the Fund and would not be offset by the Fund’s capital loss carryforwards, if","page_number":172,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"baaa5ad9-da37-4e0b-b982-61ebf5567dda","block_type":"box","text":"any. Capital loss carryforwards of underlying funds, if any, would not offset net capital gains of the Fund. Each of","page_number":172,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"5ae8c7e9-c595-4cc1-9fed-a79ef5739e50","block_type":"box","text":"these effects is caused by the Fund’s expected investment in the underlying funds and may result in distributions to","page_number":172,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"7813eb03-0717-4fbd-bf09-267d4e2c1231","block_type":"box","text":"Fund shareholders being of higher magnitudes and less likely to qualify for lower capital gain tax rates than if the","page_number":172,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"0d942392-6ee2-4b5e-a409-3e05c70d1d3f","block_type":"box","text":"Fund were to invest otherwise.","page_number":172,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"1d67fcba-d6f9-4d8d-b177-7782233cceb8","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":172,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"75e22dd0-8efb-4c87-9cc0-05db84184654","block_type":"box","text":"“Subsidiary”). It is expected that the Subsidiary will be a “controlled foreign corporation” and that all of its net","page_number":172,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"8185473a-e0a2-43a8-aee6-528d26685518","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":172,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"3285045a-2b90-4021-8fef-315486ca0672","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":172,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"82e1095c-38a2-4bbd-b580-6ceab8ad289f","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":172,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"fb3e7f2f-57f7-4443-acc4-e9eed4280b0f","block_type":"box","text":"to the Fund. (Previously taxed income will not, however, be taxable again when distributed.) If a net loss is realized by","page_number":172,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"56c9fb04-822a-4274-b506-9a1dcd23dc59","block_type":"box","text":"the Subsidiary in any taxable year, the loss will generally not be available to offset the Fund’s other income. It is not","page_number":172,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"7452d748-b574-4c36-b46b-7bb832722457","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":172,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"aee61c32-5120-4ffc-98f8-65afbbc037ae","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":172,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"5418af91-c589-4c38-84bc-f4b708a0b2cc","block_type":"box","text":"the Fund will generally be treated as owning shares in a passive foreign investment company (“PFIC”) for U.S. federal","page_number":172,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"c3902a11-25b4-40f8-b12f-e84a6d32c085","block_type":"box","text":"income tax purposes. A Fund may be subject to U.S. federal income tax, and interest charges (at the rate applicable","page_number":172,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"0d522045-e392-4dc5-a06f-ccbbedd679e5","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":172,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"5ac7c1c7-7878-4b58-9670-7260de3ff087","block_type":"box","text":"a company and on gain from the disposition of the shares of such a company (collectively referred to as “excess","page_number":172,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"43a2cb47-a202-4166-9afb-a31e3d694824","block_type":"box","text":"distributions”), even if such excess distributions are paid by the Fund as a dividend to its shareholders. However, a","page_number":172,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"a54adba7-5384-4523-a410-fc007c294e9a","block_type":"box","text":"Fund may elect to “mark-to-market” at the end of each taxable year shares that it holds in PFICs. The election is","page_number":172,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"89590966-83ef-438b-8f18-5d121702aee2","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":172,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"ca7eab1d-ba17-4fca-9b71-0727ac2f34c2","block_type":"box","text":"revoked with consent from the IRS. Under this election, a Fund would recognize as ordinary income any increase in","page_number":172,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"eccea5d5-660f-4f59-9920-baaeac06f2e3","block_type":"box","text":"the value of its shares as of the close of the taxable year over their adjusted tax basis and as ordinary loss any","page_number":172,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"eee166f3-03ad-4d61-9555-4ac7ba012058","block_type":"box","text":"decrease in such value, but only to the extent of previously recognized “mark-to-market” gains. By making the mark","page_number":172,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"ff11677a-5c61-4a65-b039-8da56f34e4d8","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":172,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"7e577714-25a3-403e-9fe2-d62366b8bbae","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":172,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"3c145bc9-5d15-467d-ba75-099d536cba21","block_type":"box","text":"PFICs.","page_number":172,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"5b6fcb4d-e2fa-4364-b3e0-0f45eaa4aa1a","block_type":"box","text":"If a Fund were to invest in a PFIC and elect to treat the PFIC as a “qualified electing fund” under the Code, in lieu","page_number":172,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"99432ffe-16c0-4073-96be-4804c74e4297","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":172,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"9caf006f-5425-4e9a-aeff-ee59abb326ff","block_type":"box","text":"earnings and net capital gains of the qualified electing fund, even if not distributed to the Fund, and such amounts","page_number":172,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"7ae45650-ed40-487b-8e2f-8b89644a4421","block_type":"box","text":"would be subject to the 90% and excise tax distribution requirements described above. In order to make this election,","page_number":172,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"f0e06e00-06c1-439f-b74d-ccaba2d82150","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":172,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"8d1cc5fb-bb85-4256-a1ab-ce7e1bffed29","block_type":"box","text":"difficult or impossible to obtain.","page_number":172,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"b532df54-65d5-48ec-9db0-c09f665fb6f1","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":172,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"8e58fe44-0be9-4d0c-93f9-abc16751ac7a","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":172,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"7d2587af-6c3a-4aed-bb8a-d4debc45bedd","block_type":"box","text":"(defined as the sum of the excess of post-October foreign currency and PFIC losses over post-October foreign","page_number":172,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"18af112e-5bb3-4c7b-9e22-2abb487301e1","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":172,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"a7a0682f-ddce-43da-a33c-7401ded97a1c","block_type":"box","text":"the next taxable year in computing its investment company taxable income and net capital gain, which will defer the","page_number":172,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"ae1f5424-9c8a-4521-912e-442225e787c0","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":172,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"35eea67a-cc98-43fd-995b-067efebcd427","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":172,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"d4e629c7-847c-411f-b36d-39591a942a65","block_type":"box","text":"Municipal Funds","page_number":172,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"d8339f00-5ee7-4a65-ab8b-cd8de5d86d88","block_type":"box","text":"Each Municipal Fund intends to qualify to pay “exempt-interest dividends” as defined in Section 852(b)(5) of the","page_number":172,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"c9fd6928-f072-450f-90f1-9ba6090a8bc9","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":172,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"20a170f1-dc8b-411f-8920-171303068cbb","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":172,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"ec889c56-7e60-4ed5-b5d9-3fc545299286","block_type":"box","text":"Section 103(a) of the Code (relating generally to obligations of a state or local governmental unit), the Fund shall be","page_number":172,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"b3292b85-c059-4343-b4e5-1943315112b2","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":172,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"3f1ff7e1-8fa8-4587-bcf0-e2b10b2f340f","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":172,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"60dfcae2-da99-4ce7-b6b0-8aa64f694f26","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":172,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"8c2287b0-7a56-467e-a38f-1f6cbde1d80f","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":172,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"546f04d6-1007-4bfc-be14-5dc6c4a2fda8","block_type":"box","text":"II-135","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a10b301a-604c-47af-8eaf-ab5a323a66fe","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dc9f8699-b783-4797-b5f4-c220f4efac83","block_type":"box","text":"below) among the Fund’s shareholders according to a method (that it believes is consistent with the Commission rule","page_number":173,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"4db073e7-a147-43fd-b648-f5289ce0a5ec","block_type":"box","text":"permitting the issuance and sale of multiple classes of shares) that is based upon the gross income that is allocable","page_number":173,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"83ba56d5-e55c-4f71-b1dd-655f419f477f","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":173,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"956ae424-c400-4694-abbe-5f3095cf8650","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":173,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"adde7cad-1ffe-44c0-9bac-bb5a4c8be276","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":173,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"5f17129c-c0ef-40e2-9db0-07c1821b18b5","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":173,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"0c6d216e-af49-4f8f-b1a6-890e8a71adf6","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":173,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"be19382f-5cb7-4958-88c9-685d269bb371","block_type":"box","text":"the Fund, will not be deductible by the investor for U.S. federal income tax purposes to the extent attributable to","page_number":173,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"6108d969-9a38-4b51-8922-6b499aa549c0","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":173,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"108541fc-92f4-4305-9676-c55875c1b7cf","block_type":"box","text":"interest dividends retain the exclusion under Code Section 103(a) if a shareholder would be treated as a “substantial","page_number":173,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"3d54cb3e-a2c6-4929-9109-e5013ef6dac5","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":173,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"ad59e03c-2a58-4448-9eb0-13ae69f35509","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":173,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"4c47f365-3b43-4119-9e7d-067bce014adb","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":173,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"5414d8a9-7c82-43ee-a19c-2ff85b129e4a","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":173,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"d5e8d553-15d2-40d7-9cfd-9ad9c79c0420","block_type":"box","text":"constitute exempt-interest dividends.","page_number":173,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"7763c240-3a2a-43fd-a92d-02d2226f0f6a","block_type":"box","text":"Distributions in excess of a Fund’s earnings and profits will first reduce the adjusted tax basis of a holder’s","page_number":173,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"22824e9d-8c1b-40df-8c09-fb115ced2301","block_type":"box","text":"shares and, after such adjusted tax basis is reduced to zero, will constitute capital gains to such holder (assuming","page_number":173,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"080f0882-e1c1-49b0-a932-71df09b2cdf9","block_type":"box","text":"the shares are held as a capital asset). Any loss upon the sale or exchange of Fund shares held for six months or","page_number":173,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"b20df7cd-6747-4134-ad3e-0f947ff1a63d","block_type":"box","text":"less will be disallowed to the extent of any exempt-interest dividends received by the shareholder. In addition, any","page_number":173,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"48d9c35c-d86d-46d3-bdd3-12800598368c","block_type":"box","text":"such loss that is not disallowed under the rule stated above will be treated as long-term capital loss to the extent of","page_number":173,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"5cc891bd-bb95-467f-88e6-a690a3a7660c","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":173,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"ed8bdaa7-8102-4a9b-9306-937fb2a27f62","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":173,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"971e0da7-e5e5-4367-b296-26b65e61bc29","block_type":"box","text":"discount will be treated as ordinary income rather than capital gain. This rule may increase the amount of ordinary","page_number":173,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"b9cd8c40-cd3f-4160-9600-e000743d5d9e","block_type":"box","text":"income dividends received by shareholders.","page_number":173,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"11199a13-bc61-4e9e-ab09-32bed312b56f","block_type":"box","text":"Any market discount recognized on a bond is taxable as ordinary income. A market discount bond is a bond","page_number":173,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"db876422-7bf4-47da-a4e4-4a9cc7ea7345","block_type":"box","text":"acquired in the secondary market at a price below redemption value or adjusted issue price if issued with original","page_number":173,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"1acc3a36-9897-4b30-8a2d-384cdbb83b58","block_type":"box","text":"issue discount. Absent an election by the Fund to include the market discount in income as it accrues, gain on the","page_number":173,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"938abe18-88b3-4b74-9cf6-59cf671abb10","block_type":"box","text":"Fund’s disposition of such an obligation will be treated as ordinary income rather than capital gain to the extent of","page_number":173,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"77c453a0-5b12-44c4-824e-a53706507190","block_type":"box","text":"the accrued market discount.","page_number":173,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"172547d1-eaa8-44a4-8eb4-da7aa33443bb","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":173,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"37a278f4-b0f5-4c6c-9766-e7da15526c36","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":173,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"78de0d27-ef7f-425d-b376-28e16effa3d0","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":173,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"8e10b07b-46d8-4be1-a824-ef5a45d6e22f","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":173,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"c48b4d13-5d20-4f0d-b747-f53f95a69299","block_type":"box","text":"e.g.","page_number":173,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"95242b70-36cf-49b0-9a7e-de77915994e0","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":173,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"1ff91965-5e10-44ce-ae0c-538b0cff5887","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":173,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"397ed844-a602-4753-b9e9-d430f4b3e010","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":173,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"c0c8b88e-ea9e-45c4-b68e-f33cf855b45c","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":173,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"02da01eb-0637-4cc3-9076-7ef3d3f5845e","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":173,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"89f6fde7-233b-4d13-9111-817f2347379c","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":173,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"ee500e4d-68f6-4f16-8f26-2904e44a4b24","block_type":"box","text":"the taxation of interest rate swaps are not entirely clear and may require a Fund to treat payments received under","page_number":173,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"ebf34033-b119-48ee-a6fc-eb75d4e4fe7a","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":173,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"fd3104ae-a02f-4572-913a-d3e79b13d3f5","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":173,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"ca03570b-54fc-425b-92b9-decf4d5de7b2","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":173,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"c5f34309-c68e-4a21-b066-4591211e0d56","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":173,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"bd3d807a-b376-45b7-ba6e-af8c28081804","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":173,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"5cff3db0-df28-4529-9240-b85cd9163a8d","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":173,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"deece1ba-7932-435d-af02-0ae130be1186","block_type":"box","text":"Oppor tunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":173,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"afb02a28-75f1-44d5-b7b2-191a841a1101","block_type":"box","text":"within each applicable state.","page_number":173,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"38558b2c-082b-4b0c-97a9-6b1e6feaa99b","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":173,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"6878b200-14e6-4c1e-8ddc-fc35a3436431","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":173,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"67e3aec8-ab65-4cf5-a2c0-78d590cd23bf","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":173,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"788701d5-e1a1-4d61-9fc7-c29e8ecdcb83","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":173,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"4b4ae3f7-fbea-45ab-b307-3cade510d3ba","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":173,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"33a67e37-e075-4bb7-92fe-feacb6bc46f7","block_type":"box","text":"its discretion, the appropriate course of action for the Feeder Fund. One possible course of action would be to","page_number":173,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"f828b6ca-7ebb-4689-9a9e-38715ad6054a","block_type":"box","text":"II-136","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3c400ddd-0adc-4d85-841c-3d85dd42f7e5","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7f07b303-e6de-4ea5-8c7b-e35583828690","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":174,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"09b4315e-7741-4a69-a5c4-5b515a3c852b","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":174,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"63578703-a750-40ac-af8b-526c6b823194","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":174,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"68237b2d-eecf-4774-ad70-901b17b35e0f","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":174,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"e0002fd5-7e32-43ec-9a6c-0c51105d7ac9","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":174,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"4cdee977-5d86-45f3-8cac-5638a706de39","block_type":"box","text":"exempt from state income tax.","page_number":174,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"9e70ab3c-b30d-41ab-af5e-9d6f966d0749","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":174,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"453b53b6-01a5-41f3-a9e6-d7e23014afb3","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":174,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"d9d78641-2450-4900-8dc5-6ecfa424594c","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":174,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"48d80f30-ee40-4724-bc85-6e26d43f46f7","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":174,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"bec6d6e3-204d-415b-9522-8775031986a5","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":174,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"675aca30-3262-4f2c-a3a7-6b1859516940","block_type":"box","text":"cour t decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":174,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"8d50bede-7840-4ebb-a32a-a96a72763a67","block_type":"box","text":"decisions may have a retroactive effect.","page_number":174,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"53e3cc68-9169-4edb-9015-8db3e82013d4","block_type":"box","text":"PERFORMANCE DATA","page_number":174,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"00dda786-b272-40ec-8b36-316ba1e0e23f","block_type":"box","text":"From time to time a Fund may include its average annual total return and other total return data, and, if","page_number":174,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"43ca1712-d1f4-4cb7-95c8-28cd0404af53","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":174,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"01454c80-5923-438d-aec4-6bedd7be92f0","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":174,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"f397e303-816c-45e3-8564-58fe83ca849b","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":174,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"3f685ac1-2024-4125-95c8-2181e867b9ad","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":174,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"bf82c111-8cc3-41db-a15a-88a561b7b2c5","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":174,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"9e0c36f5-7012-493d-aeb1-59a01d2fbafb","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":174,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"46d3562e-81d0-4282-b745-948fff3c68af","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":174,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"a0d22837-dd3c-4850-90ed-c870af986f0c","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":174,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"d60601f6-0175-4379-acd7-9888639ef1e6","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":174,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"ea9270a9-f70d-421f-8b65-cb6cc6319f5f","block_type":"box","text":"expenses, including the maximum sales charge, in the case of front-end load shares, and the CDSC that would be","page_number":174,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"a950e93a-8ef7-48d9-bac7-c840e296fc57","block_type":"box","text":"applicable to a complete redemption of the investment at the end of the specified period in the case of CDSC shares,","page_number":174,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"80666e93-ec5c-48c5-89df-700917e855ba","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":174,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"2c1404c6-6a97-4946-8aeb-8c73a7b7eafb","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":174,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"78bbe9c9-d090-40e5-80db-89c450a8c0f9","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":174,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"919c5e2a-c28d-44f5-8853-95ae6c04be82","block_type":"box","text":"value of such investment at the end of each period assuming payment of taxes on dividends received during such","page_number":174,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"3a161856-b9f2-48ac-9e31-fbd7e4dd188f","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":174,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"1b2195ca-5b96-43e3-96e1-d3fa37dfb1df","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":174,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"7cdb69de-eb65-4163-88c6-5f0303a38239","block_type":"box","text":"including the maximum sales charge, in the case of front-end load shares and the CDSC that would be applicable to","page_number":174,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"05c8a7d4-fce4-4333-9834-ac51e1373239","block_type":"box","text":"a complete redemption of the investment at the end of the specified period in the case of CDSC shares. The taxes","page_number":174,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"5d496e14-fb97-4cfc-a5db-7cbca45056c5","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":174,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"cd19b8f4-6cb4-4a06-b6e0-f1d4aa074761","block_type":"box","text":"income tax rates in effect on the reinvestment date for that dividend. The rates used correspond to the tax character","page_number":174,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"2f680e01-fa27-44f5-8479-2180f1d7130b","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":174,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"42a00d00-defb-4644-ac90-cf4a90a21579","block_type":"box","text":"taxable amount and tax character of each dividend are specified by each Fund on the dividend declaration date, but","page_number":174,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"d2b12857-1a93-4325-8169-0a1037277749","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":174,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"2d9a75c9-1d46-4e25-aefb-b422b577f939","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":174,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"a5b88924-56f3-4684-998c-2c1ba1fd3ee2","block_type":"box","text":"credits, are taken into account according to U.S. federal tax law. The ending value is determined assuming complete","page_number":174,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"e0874d3a-2333-4955-b636-16902b7392c9","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":174,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"0f28aa68-fd2a-44a2-99c9-5965487947f3","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":174,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"3855e323-da40-4811-ad90-e5c975e6fc2e","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":174,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"80350b34-7dec-412c-8a4e-b78ecd8eb989","block_type":"box","text":"invested to the ending value of such investment at the end of each period assuming payment of taxes on dividends","page_number":174,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"295b2f42-3d6f-41f5-b607-7837eb03d547","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":174,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"c671c4fb-70b4-449a-a319-0ae6b92dabe5","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":174,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"a8b134eb-3e7a-4e33-81cb-0a30b3554103","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":174,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"6bf63f61-2819-40a4-8a19-b7f5fc0f95df","block_type":"box","text":"charge in the case of front-end load shares and the CDSC that would be applicable to a complete redemption of the","page_number":174,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"c0fec22f-536e-4ce8-8c91-86fddec55c3c","block_type":"box","text":"investment at the end of the specified period in the case of CDSC shares and assuming, for all classes of shares,","page_number":174,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"43564b58-3645-456b-aac6-94acb17787f5","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":174,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"32f69267-8817-4784-91c9-09ecdc145619","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":174,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"a345edab-93cc-4661-9040-4c57cb452094","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":174,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"b329b03a-d512-40d6-a065-f6cadb5a0612","block_type":"box","text":"II-137","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"50a1c113-866c-497a-846e-77d778483360","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5bd1e1af-0306-49c3-9ae9-29732dd816dd","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":175,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"62e0f805-c08b-4d76-9193-da5f74e8bca0","block_type":"box","text":"individual income tax rates in effect on the reinvestment and/or the redemption date. The rates used correspond to","page_number":175,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"4f6f2d67-6506-4f6e-9e8f-4569808c37ab","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":175,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"a6603674-3429-40d6-9aea-4ba8031a62f6","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":175,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"c483eef9-01e2-495b-bae3-226a17341680","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":175,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"1d9030fb-0877-496a-9349-635876c42a34","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":175,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"ed5f9ba6-d581-424b-89f5-0cbf65c17a2b","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":175,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"135d46b0-f13c-4e8c-85b7-ac7386ea7109","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":175,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"b344f8a7-2126-4ea9-98c7-4f9bda595c39","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":175,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"20b08fbd-5c22-4ca0-b99f-7030d8ed4fde","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":175,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"f9ea87ad-e3ad-4acd-81c1-812099aa90f4","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":175,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"34a736ef-d7e9-4d6f-bc33-2f35da49cedc","block_type":"box","text":"will not be included with respect to annual or annualized rates of return calculations. Aside from the impact on the","page_number":175,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"873cc55c-d0ee-4a41-9597-755dfea6c568","block_type":"box","text":"per formance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":175,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"39a2fe98-4061-4f68-a20f-39523e28531e","block_type":"box","text":"annualized total return data generally will be lower than average annual total return data since the average rates of","page_number":175,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"2bdfca92-ad08-4027-9ae5-f7ae776030cb","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":175,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"0166c7c2-8255-4606-b953-bb34fdff40b9","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":175,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"d87d0459-f047-4802-babc-ef09d920a7f9","block_type":"box","text":"Yield quotations will be computed based on a 30-day period by dividing (a) the net income based on the yield of","page_number":175,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"c6a116db-9891-4177-8e65-16c5ab36edec","block_type":"box","text":"each security earned during the period by (b) the average daily number of shares outstanding during the period that","page_number":175,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"5ec5d8aa-b898-4f3b-9e47-377c0ccb6c2e","block_type":"box","text":"were entitled to receive dividends multiplied by the maximum offering price per share on the last day of the period.","page_number":175,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"baf77694-66e7-4394-a204-5393112f361a","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":175,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"fed31653-d40a-479e-85aa-b3945c76e797","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":175,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"124b9d52-4527-40eb-b720-5ce3f64e272f","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":175,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"7cee7627-2655-4bc8-9c45-52799ba33bc2","block_type":"box","text":"Fund’s operating expenses and the amount of realized and unrealized net capital gains or losses during the period.","page_number":175,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"615e6ce7-e607-4c78-a4bf-5e02e4431c41","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":175,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"07925a30-c116-4b2e-ac69-b68b38715d2f","block_type":"box","text":"less than their original cost.","page_number":175,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"43bd2f3b-23f2-4d73-946d-f6c2bdb2e7f1","block_type":"box","text":"In order to reflect the reduced sales charges in the case of front-end load shares or the waiver of the CDSC in","page_number":175,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"abc9ba73-410b-44dd-b6c0-678ac93d6526","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":175,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"c8b7fe14-0705-4763-b97f-95d73b79c542","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":175,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"e324e116-32b4-4a49-9b4a-16c027b83d67","block_type":"box","text":"take into account the reduced, and not the maximum, sales charge or may take into account the CDSC waiver and,","page_number":175,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"19d4812f-8e61-4d60-a998-c71192492bcd","block_type":"box","text":"therefore, may reflect greater total return since, due to the reduced sales charges or the waiver of sales charges, a","page_number":175,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"71aa48a7-0aa7-47c1-a2bf-28a0a75553ba","block_type":"box","text":"lower amount of expenses is deducted.","page_number":175,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"907bc8b1-3a07-482d-8456-1ae2a8efb3d8","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":175,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"5e43f64c-3afd-41bc-92d5-28d151c8525d","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":175,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"5c1f3166-38d3-4134-8574-c6314b79fa5b","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":175,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"55fe80a7-9b24-4a50-a43b-4ba134de6aa7","block_type":"box","text":"Money Magazine, U.S.","page_number":175,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"9a8e443d-a292-413a-935a-efb998d215ec","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":175,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"0841aeab-d6fd-4c20-82e4-5c267089cfa0","block_type":"box","text":"or other industry publications. When","page_number":175,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"608d8fef-28ad-4964-9b30-d89e818af92e","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":175,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"b63761e2-694a-4932-9ce8-67db16e27dce","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":175,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"9fe5b5c2-4b0d-456b-bf58-fae976c507ea","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":175,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"53ed0a9d-edfd-4d0f-b33e-ba10316c1a2f","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":175,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"6dbc6cf6-0945-4578-819a-c74fdc8aa320","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":175,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"c66d5f34-9c53-473c-9583-87a2ecbefa1f","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":175,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"64258d23-2ae5-4ead-8091-633c364dc497","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":175,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"f67e8618-f4df-4ccb-b83c-f5fbab16198f","block_type":"box","text":"developed by Fund management.","page_number":175,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"f8034f32-eb18-419e-aaf7-9576f90ea1ec","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":175,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"f38c3e1b-7da3-4d96-89af-9b89aa9c5836","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":175,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"0f0065ac-2695-45fb-9d7e-a616454cd9f5","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":175,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"97d3f52a-147a-4152-a70f-1924a4aef1af","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":175,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"b7966ded-755f-45ed-9ce8-20edb817dbcf","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":175,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"532cf1d2-c8c0-46a4-95a7-31be3cda9a72","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":175,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"bf64edd4-ef1f-460b-9694-825b6bc65f55","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":175,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"54a8391d-50a6-4893-8795-a4d916919608","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":175,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"2600644f-c6fd-42dc-a268-c09d79f70cd8","block_type":"box","text":"II-138","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e799177f-e5da-49c5-838a-9111677eb778","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c537e43e-ba98-47a3-a30a-1212f954becc","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":176,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"03c2199c-856e-425b-ad7a-531a0f842dbf","block_type":"box","text":"The Board of Directors of the Funds has delegated the voting of proxies for the Funds’ securities to the Manager","page_number":176,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"9ffac0a2-42b4-404c-8c5a-277c82255d8f","block_type":"box","text":"pursuant to (i) the Open-End Active and Fixed Income Index Fund Proxy Voting Policy (the “Active Fund Proxy Voting","page_number":176,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"42f5f026-170c-458c-bc03-2a197f5cf391","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":176,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"9f0e0663-bcce-4c8c-8472-e182d964baf5","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":176,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"c938cf76-f404-4c1b-b3ed-93afc581f84a","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":176,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"388065ef-2acd-490e-8079-ea195ea72bb1","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":176,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"0273521a-15b2-49f6-89e2-8f293f435a26","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":176,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"172b764d-805b-4c61-b170-2e45c155c0c7","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":176,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"d71abdd4-cbbf-44b5-bd8b-0a68904f67bc","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":176,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"83d18327-c749-4720-bf6d-c2d2a99f623b","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":176,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"edcadeea-de1e-4ce1-b563-c453b76f421b","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":176,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"28eb2597-ac98-426f-8798-b22b58eec9e9","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":176,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"48259d23-fcb4-4225-a466-ead9528f5e2f","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":176,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"6c6a3256-a432-4b3e-8873-ff5606a56b66","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":176,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"1391e6a0-9864-489f-8d79-9d570861a2b7","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":176,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"d02c0fc0-a2b9-42c1-95f2-36aab2f16ec0","block_type":"box","text":"If a Fund invests in an underlying fund managed by BlackRock, the Fund will use its proxy voting policy when","page_number":176,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"a4e77c4a-b6f8-4470-be46-a785eb88c3cd","block_type":"box","text":"voting on proxies for the underlying fund while the underlying fund will use its proxy voting policy when voting proxies","page_number":176,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"02cd688d-dd7f-4444-b8bd-8b645a782464","block_type":"box","text":"on investments the underlying fund holds. Therefore, the Fund may use the Active Fund Proxy Voting Policy while an","page_number":176,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"d0b6733d-d84c-47cb-90c4-b64cbaa7afe6","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":176,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"fdb91b2f-d46b-4621-b405-8f81396638c6","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":176,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"03bf6164-0cb8-4b6d-8ff1-9dcec72e030a","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":176,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"ab340887-9070-4c52-92d8-dcb949f6be8e","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":176,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"8fe10910-a2c4-4de8-b80a-905fd4edee5f","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":176,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"254ec5b4-3c5d-4ecc-b0e9-db4ca556471f","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":176,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"611cb25e-5827-4b20-83d0-59f15068a710","block_type":"box","text":"month period ended June 30 is available without charge, (i) at www.blackrock.com/proxyrecords and (ii) on the","page_number":176,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"385e3336-35e6-4dbb-88be-2abcd9cd5497","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":176,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"3e97626b-a4d4-4d4f-94a5-62a9c8bcb627","block_type":"box","text":"GENERAL INFORMATION","page_number":176,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"efb77be7-fedd-4176-8065-780949c84fb0","block_type":"box","text":"Description of Shares","page_number":176,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"15879154-e37c-466a-861e-273bef54b284","block_type":"box","text":"Shareholders of a Fund are entitled to one vote for each full share held and fractional votes for fractional shares","page_number":176,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"aab61117-9b2c-4eeb-b319-9769a7914153","block_type":"box","text":"held in the election of Directors and generally on other matters submitted to the vote of shareholders of the Fund.","page_number":176,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"0a8d0d76-991e-4534-a6f7-c6f2225eefc9","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":176,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"f9d0d178-298b-4d50-bb0c-773025aadeba","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":176,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"40d9ea84-57e9-4386-979c-cf97447b898c","block_type":"box","text":"more than 50% of the shares voting in the election of Directors can, if they choose to do so, elect all the Directors of","page_number":176,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"6cb2e80e-255e-4832-86af-f6198b05929c","block_type":"box","text":"a Fund, in which event the holders of the remaining shares would be unable to elect any person as a Director.","page_number":176,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"de645260-3a2d-4eef-991c-707668f483c7","block_type":"box","text":"No Fund intends to hold annual meetings of shareholders in any year in which the Investment Company Act does","page_number":176,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"2c71354a-d8f3-460c-bffb-5bc24ffe3ab6","block_type":"box","text":"not require shareholders to act upon any of the following matters: (i) election of Directors; (ii) approval of a","page_number":176,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"f8af8a6e-e35a-4e68-8b2c-ad6838bbcd44","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":176,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"04843e24-3d1f-41dc-b101-9e1a394e507f","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":176,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"31bedb3b-cf80-4f4b-be77-d3476469e5f3","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":176,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"5a92b9cd-7bda-43e6-afb4-47b52dd4200f","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":176,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"33f7e1e5-eefc-486a-ae67-c1022656b404","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":176,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"9fdf417b-4807-4290-8c19-5df73c2e8d34","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":176,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"175a4942-ae12-4648-85ae-8ea8c525c9de","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":176,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"7a215513-118c-490c-a627-b8336ae5797d","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":176,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"4b4eb05b-0114-400b-a42d-073942866b11","block_type":"box","text":"Cer tain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":176,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"0fe3c8dc-7292-4e90-9505-21e983824182","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":176,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"4807c8d6-70c3-4878-844a-75df778af1b3","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":176,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"29156cac-d5f9-469a-b1b2-089228221d67","block_type":"box","text":"with all amendments thereto (the “Declaration of Trust”), is on file in the office of the Secretary of the","page_number":176,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"f9e01998-eabe-4363-bea2-f811ef25affa","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":176,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"864b9ff4-647c-4ff4-ad03-2d96ca7e7df1","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":176,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"0cf9a8da-5670-465f-8914-08b8d8145268","block_type":"box","text":"II-139","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a867b3aa-2650-45de-a48e-b806a71b9223","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b63550b8-1177-4b9e-b7fc-a6e6d908a3b9","block_type":"box","text":"shareholder held personally liable for the obligations of the trust. The Declaration of Trust also provides that a trust","page_number":177,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"f8714a37-67bc-44ef-a80c-b831bdc17d47","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":177,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"d25228ef-849e-4ee3-b311-9cf48ee121f8","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":177,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"7093dd8a-9a04-4ece-9049-095356a88573","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":177,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"6bc3d313-f6ad-41d2-ad9d-f224e33271b3","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":177,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"1e81e9a1-c62e-44a9-a6c9-b4f64bf3c773","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":177,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"bda2100b-4643-43bd-92bc-9dc38710ce6e","block_type":"box","text":"Additional Information","page_number":177,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"1d985b7b-cda0-40cc-a4c7-d267595d95ec","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":177,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"464910f1-7dc5-4665-91f0-b5be16f60140","block_type":"box","text":"has reserved the right to (i) withdraw its consent to the use of such name by a Fund if the Fund ceases to retain","page_number":177,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"a0b298c3-d0e9-4f20-b80a-bbca1481e7ed","block_type":"box","text":"BlackRock Advisors, LLC or BlackRock Fund Advisors, as applicable, as investment adviser and (ii) to grant the use of","page_number":177,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"efc281ba-a0c7-4f07-af24-65eae5f340bd","block_type":"box","text":"such name to any other company.","page_number":177,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"44b743a8-960c-440d-94d1-8fe14fa95c32","block_type":"box","text":"II-140","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7848a231-25cd-45a2-a438-00ec3473d39d","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"360496e7-6e2f-46c1-8d8a-891fb71ee742","block_type":"box","text":"APPENDIX A","page_number":178,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"239b4810-80d4-4117-929e-254d69296de7","block_type":"box","text":"Description of Bond Ratings","page_number":178,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"8412d642-10f4-4ced-92a2-a0920dae3874","block_type":"box","text":"A rating is generally assigned to a fixed-income security at the time of issuance by a credit rating agency","page_number":178,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"985f4c37-eff1-4c1f-9f65-fa9c3c628ac9","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":178,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"08707a8e-9088-47cc-81ca-6ef6e592ee2b","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":178,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"1e62b93a-7f77-4091-8f86-4feb8bbc9289","block_type":"box","text":"so, and the ratings given to securities at issuance do not necessarily represent ratings which would be given to these","page_number":178,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"5fc4337a-848c-44c5-9e90-ad10e0e08edb","block_type":"box","text":"securities on a par ticular subsequent date.","page_number":178,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"ad9b5b1e-5434-46b7-840d-d5915be8c9fc","block_type":"box","text":"NRSROs may rate specific investments (","page_number":178,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"dc5a155a-658b-425d-afad-e48c35ab3f84","block_type":"box","text":"e.g.","page_number":178,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"d89f2d18-fb87-4759-a741-998888af17c7","block_type":"box","text":", bonds), issuers (","page_number":178,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"a1f12c63-7d25-4451-87b3-aa4fc1557e28","block_type":"box","text":"e.g.","page_number":178,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"a9811847-2a50-45b1-8f79-12b72d7a9b83","block_type":"box","text":", corporations, governments and financial","page_number":178,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"49f28384-574c-44db-a620-7176db72e7ff","block_type":"box","text":"institutions) and/or programs (","page_number":178,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"f9e812a7-542f-42a8-8b5f-ad2bc6e30b61","block_type":"box","text":"e.g.","page_number":178,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"5cde25c7-2c09-47c3-ba4e-cee9c050d822","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":178,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"5c4505be-9fc3-4193-af1d-b3f2ef9b3722","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":178,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"a0119429-0c07-4104-97a2-a065dde41e6c","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":178,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"acf82617-1942-469c-a2c0-bdd1ee56c51a","block_type":"box","text":"investments, as well as US Treasury securities (some of which are not rated), where an NRSRO has not rated the","page_number":178,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"bcad1da8-3c24-4ac8-ac31-bb30a498228e","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":178,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"72c50207-667d-4843-87d8-e03748d04d0e","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":178,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"1ac06c65-f9e6-4c46-b394-92aa73ad1475","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":178,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"5f612e9e-1732-4e5a-8ec9-5b81ac7cb2ce","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":178,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"e51502ad-61a7-4f0c-801d-fefbd6337d9d","block_type":"box","text":"security (","page_number":178,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"f45c5a38-788c-4137-a36d-15dd8e718455","block_type":"box","text":"e.g.","page_number":178,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"fbf92b63-0ea8-4eb7-b639-f9157fee1b01","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":178,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"b75147ad-c0db-487d-a106-e2cef213652d","block_type":"box","text":"highest of the multiple ratings.","page_number":178,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"c090beec-7118-4e66-8849-2c5d5ef5d0b8","block_type":"box","text":"New issue securities (regardless of type) may not be rated by an NRSRO at the time of their initial offering.","page_number":178,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"18b56c40-9b21-4773-b657-94c65c7b1550","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":178,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"b5384bc4-9e9d-4757-bd15-97cc62c400a9","block_type":"box","text":"determined by the underwriter and/or issuer) or an NRSRO rating for the issuer of the security. If applicable, when","page_number":178,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"9a165e27-2f24-4da7-81b0-f2bf889a200c","block_type":"box","text":"deciding whether to purchase a new issue security that has not yet been rated by an NRSRO, BlackRock may","page_number":178,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"5105f8fd-6da0-430c-b939-5ba0b5ab18c6","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":178,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"0578a563-7663-4e83-94fb-2a3141aac16f","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":178,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"1e7deca9-3096-4419-b871-1b723020c3ff","block_type":"box","text":"the preliminary prospectus or term sheet for the security; or (iii) with respect to asset-backed securities, the rating of","page_number":178,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"66efb013-5313-46b8-a4b1-4f7cdbe87bd6","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":178,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"9d1f7403-7715-4b06-9739-45132a31597a","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":178,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"6d091d9e-befb-4c7a-86e7-556658866925","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":178,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"ffd384be-917a-4745-b7d2-83f471ec5a5b","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":178,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"16392ea2-9c79-4699-beb8-1599837f99e9","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":178,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"b47660fb-2e98-459c-a9a5-f4890c5c7890","block_type":"box","text":"invest, directly or indirectly, in securities that are not rated by a rating agency or securities with a credit rating that","page_number":178,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"f0c7be08-3b5c-4d5a-96a0-7f4bcff6e584","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":178,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"6a6fd274-b994-4f47-a76c-5c25adb72de0","block_type":"box","text":"downgraded but not yet removed from an index, following the removal of a security from an index prior to its sale by","page_number":178,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"21f4a2e4-2b10-4bb4-96c4-2354ff7b9c2b","block_type":"box","text":"the fund or as a result of a corporate action or restructuring affecting an issuer of a security held by the fund.","page_number":178,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"05b17f43-0230-4a14-b063-ecb204cd354b","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":178,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"d001e4d5-702d-4009-abd9-563844b0b4f3","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":178,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"19e1d563-8af0-4f54-b1cc-cda3f07b56ba","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":178,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"eac9cd18-a979-42bf-8ac7-3661dceb50dd","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":178,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"bcbe10ea-651d-4633-a6bb-ec6026098cb5","block_type":"box","text":"Investors should note that the assignment of a rating to a security by an NRSRO may not reflect the effect of","page_number":178,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"cc0bd05c-3e5a-41d7-a351-cfa356fc35a9","block_type":"box","text":"recent developments on the issuer’s ability to make interest and principal payments or on the likelihood of default.","page_number":178,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"689a7b23-d691-49ea-9371-b54b0f228eea","block_type":"box","text":"Securities deemed to be high yield are rated below Baa3 by Moody’s and below BBB- by S&P Global Ratings and","page_number":178,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"3f1d42f9-577e-4b04-98cf-75378c499b25","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":178,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"ffe6ff50-1dda-4b7c-9917-c5c186afd789","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":178,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"c76195f4-3d5e-4d15-98c9-942f1fcac72b","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":178,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"1e41717b-8914-466a-a793-e8e2c63f3086","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":178,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"99f4a816-5fbb-4b7b-8a38-f9480a779e59","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":178,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"c8efd3b8-c2be-42ae-ad7d-ef7e18f0d420","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":178,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"da7cc181-90e6-4a44-b3e1-e4101ebc5010","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":178,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"8db71976-fde7-4a3b-86cc-ed4c320105c8","block_type":"box","text":"risk that an entity may not meet its contractual financial obligations as they come due and any estimated financial","page_number":178,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"362e416d-29a1-4d7b-8208-f28687701387","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":178,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"d26c6787-ce13-4e9f-a489-0ac18fe2f693","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":178,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"2889528e-404c-4d15-9687-851e4b37f144","block_type":"box","text":"upon standard sources of variation (","page_number":178,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"e139a166-e5b2-4c8f-bc89-79b716f1b872","block_type":"box","text":"e.g.","page_number":178,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"267cec1d-7ca9-4410-a308-0ca8a9619be8","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses","page_number":178,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"c0fec3cb-d5cd-495d-a692-0f9ace42bce6","block_type":"box","text":"A-1","page_number":178,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"6447160f-6212-4f08-bbe4-8572c8b9634d","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4d4a05f2-2648-4a63-a904-a0100b9651bc","block_type":"box","text":"the issuer’s ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s ratings do","page_number":179,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"441be1c1-1ed0-4c7a-8dea-606620159489","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":179,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"e4649d88-c8ee-4c80-8b4b-a272d66a51c5","block_type":"box","text":"e.g.","page_number":179,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"3a71b50c-4497-400b-8f56-dc5d54fa01ce","block_type":"box","text":", equity indexed), absent","page_number":179,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"90984490-4b84-4597-a33f-f7998e291131","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":179,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"c43546b1-fc38-4afa-a075-22ca5555ef43","block_type":"box","text":"assigned to issuers or obligations with an original maturity of eleven months or more and reflect both on the","page_number":179,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"c8ff1d15-edf4-48eb-90ce-83b5609629ac","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":179,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"78575eeb-e43e-4242-b571-47c1328160e2","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":179,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"468289ef-537f-486d-8000-191b3b0360b6","block_type":"box","text":"months or less and reflect both on the likelihood of a default or impairment on contractual financial obligations and","page_number":179,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"0f227b4c-6376-4e05-88a9-deb9ffef214d","block_type":"box","text":"the expected financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level","page_number":179,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"98d5ef19-a430-4dd6-bec3-b78431ef0ccc","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":179,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"0b80495b-53fa-4e32-a670-b9bef992036a","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":179,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"d484c985-b000-444d-8a59-6be94875e5fa","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":179,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"96c7d32f-24ad-4d76-9644-3b178afaf50d","block_type":"box","text":"i.e.","page_number":179,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"cee64bf5-07b8-49b8-9662-d8255fc1c486","block_type":"box","text":", ratings on nonfinancial","page_number":179,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"4dfaffa6-9316-4275-83d7-ecf056341f01","block_type":"box","text":"corporate, financial institution, and public sector entities) on the global long-term scale by adding (sf) to all structured","page_number":179,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"743d9a9c-34e8-4c6b-a912-498e5b491332","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":179,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"f1d7a567-b00c-4298-a635-2b7ed44f9dfd","block_type":"box","text":"and fundamental ratings at the same letter grade level will behave the same. The (sf) indicator for structured finance","page_number":179,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"c6f16e2e-63e5-4167-992d-58f2b71a7393","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":179,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"af4a4ade-2304-4b0c-9fcd-78f0f31d91bb","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":179,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"82a65ab9-0673-45b3-9ade-201656f1d8ea","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":179,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"a444cd2c-11b4-4146-8a66-17c67cbc3d4a","block_type":"box","text":"of time.","page_number":179,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"f2fd50a0-fe0e-4705-985a-3d26d3f0dbee","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":179,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"e1d51722-c41d-47ff-94ae-0dda809accdb","block_type":"box","text":"Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit","page_number":179,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"32ef260e-698f-4c01-8f0d-6c859054a532","block_type":"box","text":"risk.","page_number":179,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"bd4b5e17-55c3-4627-89a6-614c3521a643","block_type":"box","text":"Aa Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.","page_number":179,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"b15b9e46-8757-4e16-99f9-3cb918349e3c","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":179,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"94ea7047-9fcb-4967-9993-71c73c14c645","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":179,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"3c4bbf9e-96f6-4af3-8d2b-2cf8c83ed8f7","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":179,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"0357e96f-1f0a-4c34-a807-3f14f6cf2ec5","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":179,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"d506869b-e2b6-417e-844d-ff0c5a7a38be","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":179,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"97089751-00f2-4a80-8385-abceb75de9fd","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":179,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"afc974ae-532b-4376-a8cc-2008e5b1bdad","block_type":"box","text":"credit risk.","page_number":179,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"f961689e-808a-49a3-b255-6af1c299587c","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":179,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"51837dff-53fa-4a4c-b6c2-83efe483bcbf","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":179,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"eb03be9d-92ac-4d52-9e03-94289426cfb6","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":179,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"a8d42165-e678-40ce-b4f5-3549da5067ab","block_type":"box","text":"of principal or interest.","page_number":179,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"f4a9f63e-9474-4f0b-baff-15a045211bef","block_type":"box","text":"Note:","page_number":179,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"f8ccd321-73b7-4092-a6ef-a0af48c6172a","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":179,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"aa228aa2-01a6-4d77-851f-b843ea27116f","block_type":"box","text":"Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2","page_number":179,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"3a9b21e9-d912-45ac-bb24-08efbf28d8c8","block_type":"box","text":"indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.","page_number":179,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"ec33be49-df8a-423e-970d-acdc15eb93a8","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":179,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"34a1e4d3-4841-4f5b-8c60-334eaf1030fc","block_type":"box","text":"companies, and securities firms.","page_number":179,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"39f27ee2-d84c-4ab7-a5a0-2d6d113d63d5","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":179,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"d75a0482-a197-4472-8d2d-2ae99a47748d","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":179,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"6a4ac23d-1453-424b-b5a0-1941c961218e","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":179,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"7394a466-085e-44d9-9aab-15f5818cf990","block_type":"box","text":"long-term obligation rating assigned to a hybrid security is an expression of the relative credit risk associated with","page_number":179,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"14f7ffb0-025a-4a8c-9626-7c3853e0258c","block_type":"box","text":"that security.","page_number":179,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"34636ee5-3618-4c7c-af61-784ce02295ba","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":179,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"d41977df-9cda-4198-9eeb-54d4e1f83d17","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":179,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"93ccfe4d-c62d-49a5-bb69-b74eeab51956","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":179,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"a44cc012-ecbc-468f-9f21-7fc086709c72","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":179,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"6690deb4-caae-473e-9871-6950975ca7d1","block_type":"box","text":"NP Issuers (or suppor ting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":179,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"4f8b0e15-15d7-4776-928b-b18d78ef8baa","block_type":"box","text":"categories.","page_number":179,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"8233d76d-a8a2-4b76-b30c-88216bc737ba","block_type":"box","text":"A-2","page_number":179,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"3c7ca8f5-840a-44ec-a700-037105c2653a","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9f059cde-3359-4821-b85f-f8d71e5905af","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":180,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"d9f67f09-432a-43d3-b98e-2b9c57051b16","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":180,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"0b600f53-889f-4c25-a5ee-a681c531e93e","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":180,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"6f09b164-75c2-40cb-a286-5ac9f7f4f134","block_type":"box","text":"an issuer’s self-liquidity.","page_number":180,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"f6f0a28f-b157-4333-bec2-d186340e2caa","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":180,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"e6434bd1-888f-4440-b67d-68e6f6e0fbd7","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":180,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"39400edf-bfb6-4242-be60-9105125d9ed6","block_type":"box","text":"MIG Ratings","page_number":180,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"0692b76b-c36b-420d-afc1-e871798ee25f","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":180,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"962002de-563e-4af3-bb4a-fc518333cd8e","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":180,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"b53944a4-de11-4301-8250-7b9c1fba7e56","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":180,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"79e9f4fc-3c2f-4c44-80cf-bc04d3a16878","block_type":"box","text":"MIG Scale","page_number":180,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"00c6eb56-4509-4430-904a-093a2751469b","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":180,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"ed6f3619-89cc-409e-9da1-d5d4cfa8f4e2","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":180,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"08f52d4c-c073-40ad-a9c0-a2718a7f3236","block_type":"box","text":"refinancing.","page_number":180,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"95971984-e17a-4d98-8ed9-c908b6bd709a","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":180,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"e76d9e98-330f-425a-a445-0d9ada05cea7","block_type":"box","text":"large as in the preceding group.","page_number":180,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"d0909326-5fc9-4042-a44e-73c365b272b8","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":180,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"1c16c4dd-db26-4119-8706-dd48cff55bdd","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":180,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"f528e5e7-1057-4fc2-a41c-bad3b8b7b262","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":180,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"0c905afa-4abc-43f1-84f9-2426d1d52d04","block_type":"box","text":"lack sufficient margins of protection.","page_number":180,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"5582bd79-41b6-4a11-b811-41710dfad0e5","block_type":"box","text":"VMIG Ratings","page_number":180,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"42fd1a64-0687-4508-8958-61586b0d0ad3","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":180,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"a7674960-c338-4e23-8b31-c2b51b120f91","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":180,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"7e6eace2-8c05-4772-b42f-03afced7d8e3","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term payment obligation rating addresses the ability of","page_number":180,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"6d2c6127-5118-4989-ab48-f8b3f7143512","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":180,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"b4998505-5921-4358-8b8a-be8a5f82b5a9","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":180,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"1271b3b7-b364-4955-911f-0a04dc0e841f","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":180,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"d6183494-0ee8-49b1-bce9-e177ff0f0233","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":180,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"b8676faa-c384-4f6f-9589-d00b35032bad","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to","page_number":180,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"fcf71483-5d26-4e53-8c5c-8a2a4978e5bf","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":180,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"497aca48-1698-4bd5-8c61-fd327d9b14b7","block_type":"box","text":"grade.","page_number":180,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"be2583b4-00ff-4f29-ae92-5a64d9bda268","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":180,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"9e415c45-baac-4afd-9000-9327be7a78d2","block_type":"box","text":"less than every three years. If the frequency of the demand feature is less than three years but the purchase price is","page_number":180,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"617aa7ea-4b16-4f6b-997f-e74c88b17302","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":180,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"a3b5faaa-1e21-4119-85ad-47c3217363d2","block_type":"box","text":"Industrial development bonds in the US where the obligor is a corporate may carry a VMIG rating that reflects","page_number":180,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"cfc91b03-3f23-407e-b7b6-62f622abf0f8","block_type":"box","text":"Moody’s view of the relative likelihood of default and loss. In these cases, liquidity assessment is based on the","page_number":180,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"cb6184eb-ce5e-4f02-af48-7eaf9a3f3e3f","block_type":"box","text":"liquidity of the corporate obligor.","page_number":180,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"03b9bea1-7b56-478c-be0e-afc7c8a6d7a2","block_type":"box","text":"VMIG Scale","page_number":180,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"1cf832c8-d3cc-43ac-944f-5e1ca8f280c3","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":180,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"3a00a79d-5619-4dcb-8ffe-5089b95849cd","block_type":"box","text":"shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":180,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"3afcdae7-af34-4bf6-9db9-24d486a215dd","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":180,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"fcd07289-923f-4cdc-bcad-332d8c9138fa","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":180,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"921d420a-3fd4-4e3b-b970-2c41b072f35e","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":180,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"ab9f0126-bd3a-4d65-ad0e-9f75907868e7","block_type":"box","text":"satisfactory shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":180,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"e69f3bda-651c-4788-8eb6-af5cca368efd","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":180,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"2d6432fa-feb7-4df1-a5d5-c258128cf13d","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":180,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"c29e3224-9308-4826-b8ce-ff94f033d7dd","block_type":"box","text":"may lack the structural or legal protections.","page_number":180,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"3c4e0513-fa2a-46db-b35c-feb68b03e19c","block_type":"box","text":"A-3","page_number":180,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"8b557b6d-8857-4c75-ab29-32738b1ef578","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"46fd21f3-444c-4d2a-bfe9-d7cc1de6fd49","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":181,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"71d991dd-abf0-46db-aea1-1940cda6e114","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":181,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"88f1f446-3f28-4235-8acd-afe37386adba","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":181,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"2cd669cf-7fe7-4366-a33c-d8fb1c33feb4","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":181,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"68f491f3-f98f-4015-ae51-4ab5bcdf7102","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":181,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"458e9acb-b90d-48f3-a37e-7c24fd2921c0","block_type":"box","text":"which the obligation is denominated. The opinion reflects S&P’s view of the obligor’s capacity and willingness to meet","page_number":181,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"3f57928a-69ae-4799-9dc2-6130eb429183","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":181,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"beea2986-80ae-4728-be5e-748c5c54e4b7","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":181,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"b4b22e59-f40f-4751-b046-8e5d7db56af1","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":181,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"460453c4-85c5-45c5-a975-291584538092","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":181,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"f5a1a21b-e252-47e7-a5f9-c953ab01021d","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":181,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"655419cc-f7f1-4717-aa8f-01a3cae1f507","block_type":"box","text":"put features on long-term obligations. S&P would typically assign a long-term issue credit rating to an obligation with","page_number":181,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"5914ec18-dd7b-41aa-a52d-19e72f9cf454","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":181,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"55cafd52-7b16-4e87-ad30-7743efea52fb","block_type":"box","text":"from these guidelines based on market practices.","page_number":181,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"bb8c9d61-90b6-4e9e-addc-ec884217e08b","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":181,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"e8edc890-af97-4869-aae0-57119f099789","block_type":"box","text":"•","page_number":181,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"1cc61876-938c-42ab-8e0f-394a29db99e2","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":181,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"c04c1621-2f53-4897-a9da-ea6365653975","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":181,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"60221b6d-427a-4e42-911b-12496a6877da","block_type":"box","text":"•","page_number":181,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"9cb70132-7dcd-4260-8415-c2fa2343ed15","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":181,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"d620ef18-d42d-494d-9543-886f9fd3c09b","block_type":"box","text":"•","page_number":181,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"5c57fedb-ec32-4752-a547-99854934b4ea","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":181,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"43c4069f-46da-4002-9874-1d268a69eaab","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":181,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"a0097f0a-8da8-421e-ae5c-daf397aaf0c8","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":181,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"f16e7dbf-e860-4292-a178-c1b59973fe60","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":181,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"dd764480-75d5-43c6-a674-712a7119cd8a","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":181,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"0d080d6c-e7e6-41ff-bd02-29a45e3db372","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":181,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"ddb97ef4-cd7d-42e0-b98c-43fc171bceba","block_type":"box","text":"obligations.)","page_number":181,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"8ec2adf9-76bd-4701-93ba-97e1073ead9e","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":181,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"0dc2e5b8-94ac-49dc-b12f-f28b6dd291d9","block_type":"box","text":"AAA An obligation rated ‘AAA’ has the highest rating assigned by S&P. The obligor’s capacity to meet its","page_number":181,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"b748450f-4e59-43f2-9588-a7ec92a90436","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":181,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"79c0fe00-5559-482a-881f-179a4aa6f9c4","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":181,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"f3ad045a-f433-49e0-be38-d8f6e24bd055","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":181,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"7137fef5-91f2-4463-b706-9309e7551954","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":181,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"d43d09fb-08aa-49b2-a29e-63f12e6b3abd","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":181,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"a2c18331-7ad3-4e79-9e54-9bcbc068a999","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":181,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"6388ef6b-c597-41db-8287-8c37cb53eb4b","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":181,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"38a15109-c413-4415-be35-3c27be0abd28","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":181,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"ff1033cc-b064-4677-b3dd-a395c1e04595","block_type":"box","text":"financial commitments on the obligation.","page_number":181,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"6836d48d-e811-4867-90e0-2c3e3678f185","block_type":"box","text":"BB,","page_number":181,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"0894f5dc-4c26-4cfd-8d23-31fbc9337915","block_type":"box","text":"B,","page_number":181,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"a9741901-2a2c-4baa-8338-84bb4b501ce8","block_type":"box","text":"CCC,","page_number":181,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"99f1a459-d355-428d-9759-74b9eb6db2c1","block_type":"box","text":"CC,","page_number":181,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"c75f0afa-2df2-46f2-a967-34146d4b3aa7","block_type":"box","text":"and C","page_number":181,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"3a1f2e56-c06a-4b0d-bdba-4b09900f1544","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":181,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"dbeeccf5-f533-4b7d-be76-aba6646abeb2","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":181,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"a6e00556-420e-497e-908b-94d25d6b00b9","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":181,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"496583f1-2ca5-4ac9-9c60-c44f405d929a","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":181,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"a23fa688-be13-40b7-a95c-e06bf86c58d8","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":181,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"d7a5bacc-2e79-4f1b-8442-46a9715283f5","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":181,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"a9c7b74d-d75b-4eeb-a103-d65454236ab1","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":181,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"90188e48-cc96-4579-ac4b-69ee26cc1671","block_type":"box","text":"on the obligation.","page_number":181,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"93cf3add-2e80-4eeb-b853-52102b619336","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":181,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"94ef9fc2-8d20-471c-96f2-e54e330b5fd6","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":181,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"cc61a59f-079b-4f87-97ab-70a8a72d14f9","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":181,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"98167c66-f30d-4be8-b62b-a4c32cfe7046","block_type":"box","text":"financial commitments on the obligation.","page_number":181,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"54b43837-53b3-4a55-9631-478d53829a2d","block_type":"box","text":"A-4","page_number":181,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"cf4ee952-d590-42ce-8181-1ea68d6ef44c","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2251f60c-13b4-4aea-a549-c97ade9e0e9d","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":182,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"1d177436-3194-41be-9669-36eb814a6b09","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":182,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"3b7390be-7c09-484f-88e4-f9fdbe9c607a","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":182,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"bd7eec65-c8a6-4d91-9baa-5f090843c9c6","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":182,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"81d6c6f9-1d8c-4c39-baae-9f384e913c4d","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":182,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"ffea3489-005a-4a6c-b961-64274caf1938","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":182,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"922bf2cf-ab11-4bfb-be8b-50bfa6d91cc8","block_type":"box","text":"anticipated time to default.","page_number":182,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"99dd7c8a-81e0-4758-8601-92f06082d403","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":182,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"4d5d02a3-f001-4998-97e2-9f4cf9ffbff2","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":182,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"adc4b81a-e79d-4dab-ab3a-744bb42e60c7","block_type":"box","text":"higher.","page_number":182,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"af335c70-3f9f-479c-94ed-56f4258be1b8","block_type":"box","text":"D An obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid capital","page_number":182,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"ff6fc082-52b3-4cb7-9216-e997587d9305","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":182,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"9003a9a5-0d93-470c-8092-e660b6562594","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":182,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"999983cf-00dd-4d08-a0a5-e724c3350577","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":182,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"47cfbc2e-0b91-4fce-a438-10c3203b029f","block_type":"box","text":"days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking of similar","page_number":182,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"a0dcb1b6-f77c-4a26-8940-141c0160adb7","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":182,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"5b9936a6-74e1-44d4-8124-c4e8708b5b5c","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":182,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"f4582f69-6e02-481b-8303-7ca924228cfa","block_type":"box","text":"restructuring.","page_number":182,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"91248359-2506-417a-8979-795f38863423","block_type":"box","text":"*Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative","page_number":182,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"18114877-33f6-44e3-bc1e-2be7defc5604","block_type":"box","text":"standing within the rating categories.","page_number":182,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"37251a15-e7dc-4b17-9598-b54f85e234a5","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":182,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"f17a8c23-06af-40fb-87a6-66f5a918d4c9","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":182,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"319cb4cb-2af3-4181-b212-a5a14bbbdc0a","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":182,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"af0d340a-bf80-4b87-bd81-65ff02660f0e","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":182,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"37d43d8d-78c3-4704-9912-59f345ad29dc","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":182,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"56f30b50-855e-47ae-a021-113a875a6522","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":182,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"66a81620-eaa0-458d-bfc7-ad176bba5d96","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":182,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"c7ecbc5d-08ee-4bd3-b7b9-52ca4f199d10","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":182,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"bc4484ac-325c-44e7-be9f-31b4969a654e","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":182,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"dcc9a86f-ce4e-4783-aa54-3282a16e9c44","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":182,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"590e0e56-7e47-4063-9158-bb32337ed2db","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":182,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"2842417c-359f-42ca-af6d-4fa12f8ca4cf","block_type":"box","text":"B A shor t-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":182,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"d50f5ebd-37df-495c-9627-e9b23dc39c6f","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":182,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"43cbb485-697a-4671-af79-18b48570323e","block_type":"box","text":"it faces major ongoing uncer tainties that could lead to the obligor’s inadequate capacity to meet its","page_number":182,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"1f4c6d2a-f27c-411e-abc6-4bec7f963e17","block_type":"box","text":"financial commitments.","page_number":182,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"9dd0c883-fc79-4d48-90d1-c071897f8ef9","block_type":"box","text":"C A shor t-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":182,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"f9973925-2a22-4755-84f3-51d87c47f860","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":182,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"f1a73744-67d4-47d0-bcb8-3a2326654ec0","block_type":"box","text":"commitments on the obligation.","page_number":182,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"a288592c-54cf-42fb-b2c4-4076f3fbd25d","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":182,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"eb3188d6-5114-4f21-b8ba-6c8c80d28c90","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":182,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"ea489751-c595-47e8-a3a4-d2e0e9e74590","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":182,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"33017a81-3d17-4fdd-9982-d457b26c53b4","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":182,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"40978b2c-73c2-4bbe-9fc8-36a4a3d50c71","block_type":"box","text":"business days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking","page_number":182,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"6aa3cb2c-e067-4942-90fa-c900dd3f1941","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":182,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"82b53f21-2358-4850-832c-91694724dfb9","block_type":"box","text":"automatic stay provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed","page_number":182,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"da5998ab-a627-4a2d-ae5a-1b34fcff5978","block_type":"box","text":"debt restructuring.","page_number":182,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"7702a5e6-02c7-4ef3-8210-cbfd8ec3aecf","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":182,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"faecf62a-2bff-40aa-8f49-b2ab47cecae4","block_type":"box","text":"An S&P U.S. municipal note rating reflects S&P’s opinion about the liquidity factors and market access risks","page_number":182,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"3376e8f3-e640-469f-8cb4-a84755606f7c","block_type":"box","text":"unique to the notes. Notes due in three years or less will likely receive a note rating. Notes with an original maturity","page_number":182,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"33ef7ef7-d187-4c39-aafe-ec2eafa543f8","block_type":"box","text":"of more than three years will most likely receive a long-term debt rating. In determining which type of rating, if any, to","page_number":182,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"3033771d-5b6f-4c29-a7c7-416175491f3b","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":182,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"d0d334dd-93b0-4e36-8fa0-0ae6f80fe27d","block_type":"box","text":"A-5","page_number":182,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"cf7d708c-a5e8-4ebb-91e1-7961c1024848","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"821b7391-d22f-403a-9fa0-464b0ce68832","block_type":"box","text":"•","page_number":183,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"1f58b314-fa1a-4c43-ac0b-98af247060a1","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":183,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"2578e993-187c-4d68-98fa-4d0088a6a8a0","block_type":"box","text":"as a note; and","page_number":183,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"5745b024-5724-4f4e-8f8c-a0cc6bce372e","block_type":"box","text":"•","page_number":183,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"9b1a7610-aec7-4f6d-87c3-5b3d632735b8","block_type":"box","text":"Source of payment—the more dependent the issue is on the market for its refinancing, the more likely it will be","page_number":183,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"ac3954d0-6e0b-4511-bf6c-97ae807bc2ac","block_type":"box","text":"treated as a note.","page_number":183,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"2b28f41d-7194-4435-8515-e5fa406fa8b9","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":183,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"a26b0b24-040b-41aa-9c1c-2052136eb7eb","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":183,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"7ec6bd22-71d1-4694-833f-df31769fd317","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":183,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"fe5de221-fe9c-43a8-90da-f47cd5f011cb","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":183,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"209559ab-0c24-4707-a312-852654dcbf8f","block_type":"box","text":"economic changes over the term of the notes.","page_number":183,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"c1f863ed-7e15-46a6-b1f3-928c95daa5bb","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":183,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"3ea051bf-6c03-40c3-9668-cd8adb6f7d99","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":183,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"4c0fbfd2-5329-4414-84a1-5d0ac0ef5c77","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":183,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"ecf05c96-f3a6-401b-90c6-f5dd71f02732","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":183,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"47564223-a535-437d-bf63-19cf497d2e00","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":183,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"02e6638c-a9ac-4a6a-a533-cd7e64f83d04","block_type":"box","text":"Fitch publishes credit ratings that are forward-looking opinions on the relative ability of an entity or obligation to","page_number":183,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"781ea0d5-7955-4f1b-a7b6-699dc0ccb416","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":183,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"32f95e00-a720-48c2-bf06-bb880dc0a70b","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":183,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"4588a0af-a6bb-4b66-8bee-730ef3e53457","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":183,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"1bcf327e-832f-4d1d-8de6-23d4979b202b","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":183,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"605683b6-5324-4018-9afd-595da93113b8","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":183,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"26a0234b-5dee-4992-8bc1-e065d669ef1a","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":183,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"849bb6fe-50ba-4b71-9aa8-6f21d7cf5ead","block_type":"box","text":"Fitch’s credit ratings relating to issuers are an opinion on the relative ability of an entity to meet financial","page_number":183,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"3adc65e8-bddb-405e-9c78-0ec9f2e54392","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":183,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"2e407026-84cc-4c27-b9f1-53d4d7558199","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":183,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"0fcab5a3-082f-4496-aafc-3c196fbbd89b","block_type":"box","text":"Credit ratings are used by investors as indications of the likelihood of receiving the money owed to them in","page_number":183,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"cdfc23fb-0734-43c6-bc65-e7dd84c5d44a","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":183,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"47dbe9ae-a5f0-447b-afde-8e4b33a63aa2","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":183,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"927ea8db-614e-4382-85c7-1e4992938871","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":183,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"5d8e839c-1916-45ce-bb7a-2d19d25ce5a5","block_type":"box","text":"receivables or other financial assets.","page_number":183,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"9a62d8c9-3c5e-4aa7-9165-538262ac61dc","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":183,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"b011a39b-e5c3-4745-b7ea-d73dc5416525","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":183,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"d40d2620-5de0-44f9-a17f-7eac58ff5152","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":183,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"bf24395c-895d-471b-8c5b-3024a2fd60e3","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":183,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"ebc1096f-f78e-426e-8620-018a0d1a8c3a","block_type":"box","text":"while ratings in the speculative categories either signal a higher level of credit risk or that a default has already","page_number":183,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"80ecc421-ded0-4aba-a6fa-097d566ee6f2","block_type":"box","text":"occurred.","page_number":183,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"9ff6404c-3021-44b2-8fc4-160dc1e1daba","block_type":"box","text":"Fitch may also include issues relating to a rated issuer that are not and have not been rated on its web page.","page_number":183,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"05166484-1298-42ca-b1f2-69ebc17a5f02","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":183,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"ecb03450-1821-4588-b8d5-450d223233da","block_type":"box","text":"Credit ratings express risk in relative rank order, which is to say they are ordinal measures of credit risk and are","page_number":183,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"4dc88c4e-24bc-4a8b-9ffa-477e76870f09","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":183,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"3b5cf815-899f-4475-8e25-6ef176cee9ee","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":183,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"42ee42de-4f00-4806-ad15-1aed16640093","block_type":"box","text":"the risk of a market value loss on a rated security due to changes in interest rates, liquidity and other market","page_number":183,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"de1cd47d-b347-46d9-940b-175310dc3739","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":183,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"2cf242fb-e505-47d6-b42a-905867a7d9d2","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":183,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"780297c4-f76b-4f53-9e80-c260c0701cbf","block_type":"box","text":"Ratings nonetheless do not reflect market risk to the extent that they influence the size or other conditionality of","page_number":183,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"9f983dd5-aee2-4643-9797-ce242a6b7867","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":183,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"68e5f9d5-a2d2-41ac-99eb-de0e71fe60fd","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":183,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"105667c3-fe10-49a2-a11b-577d17a1dbbc","block_type":"box","text":"to the likelihood of non-payment or default in accordance with the terms of that instrument’s documentation. In","page_number":183,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"60bebd26-42a1-4285-824a-6ab66ba59ce8","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":183,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"76cc0cee-d783-40f7-99ad-d8c7a3b9968b","block_type":"box","text":"i.e.","page_number":183,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"08c5b96e-fb8a-4abe-ba8d-508f0ee1bced","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":183,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"5800f249-2651-4796-a17f-86130ab706d9","block_type":"box","text":"the obligation’s documentation).","page_number":183,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"beaed859-9b94-49aa-a33a-7fd2fed6ab12","block_type":"box","text":"A-6","page_number":183,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"7971ac0f-6761-4dfd-b471-83d16be60201","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7a532af1-c431-4404-af73-5a51c1917bdc","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":184,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"cf804984-3764-4bda-b3c0-589fbfa70b0f","block_type":"box","text":"issuance programs or for private ratings. In this case the rating is not published, but only provided to the issuer or its","page_number":184,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"786592fa-e1f7-4a51-90e2-c53acc820222","block_type":"box","text":"agents in the form of a rating letter.","page_number":184,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"8ea19e29-b4e6-4e7e-87fe-e15f55deaa49","block_type":"box","text":"The primary credit rating scales may also be used to provide ratings for a more narrow scope, including interest","page_number":184,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"a4f7b223-e3b8-466c-9695-e8b59eefeee7","block_type":"box","text":"strips and return of principal or in other forms of opinions such as credit opinions or rating assessment services.","page_number":184,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"ba0231a4-ea58-4f5c-be74-4d3ce38324d9","block_type":"box","text":"Credit opinions are either a notch- or category-specific view using the primary rating scale and omit one or more","page_number":184,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"564cbf0b-1687-4a7f-b07e-fd8bbcf0ca58","block_type":"box","text":"characteristics of a full rating or meet them to a different standard. Credit opinions will be indicated using a lower","page_number":184,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"79f84251-e082-40ce-b121-664cefd09358","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":184,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"aa55f3c5-53e9-4f4d-83a6-4b097b6a7414","block_type":"box","text":"e.g.","page_number":184,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"c9d57c7d-ceea-40f5-be53-55d9e01222b1","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":184,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"80c9d6ff-86f4-4687-908c-4edd43021360","block_type":"box","text":"opinions will be point-in-time typically but may be monitored if the analytical group believes information will be","page_number":184,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"4f1b4ca0-9dea-4e93-b6bc-1f9851eecba0","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":184,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"ea2653ac-492d-4add-8aa5-97debea9c06e","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":184,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"b2d60ef8-ed3c-41cb-9abb-b529eb27f1a9","block_type":"box","text":"rating assessment services are point-in-time and are not monitored, they may have a directional watch or outlook","page_number":184,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"949c967a-66bf-4aed-83fa-e8ef3792a5c8","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":184,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"ab77eee6-5f5b-4693-94c1-00ea0e0322b0","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":184,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"6318a9d6-551e-47fe-a025-27f8150399e8","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":184,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"910e7c85-8626-4802-9082-5fde8e230525","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":184,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"7c69f760-fa97-4cb2-ba14-8cc9d747ab84","block_type":"box","text":"default on that liability is also included in the rating assessment. This notably applies to covered bonds ratings, which","page_number":184,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"5dd5f5d2-6ff9-4655-9884-83f7b71b5760","block_type":"box","text":"incorporate both an indication of the probability of default and of the recovery given a default of this debt instrument.","page_number":184,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"ee8328c9-4f97-4fa1-a6f7-43f41e35e0c8","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":184,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"a9a4d61c-21b3-4fe7-a326-8f8bb3587daa","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":184,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"75825663-c956-4c26-a5c9-9dcfc0c3290c","block_type":"box","text":"Individual obligations can be assigned ratings higher, lower, or the same as that entity’s issuer rating or issuer","page_number":184,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"b518b8e2-3e99-4fc2-b1ac-a427bb6cfd89","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":184,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"55010bc2-56ac-4943-baa4-daef0e64c314","block_type":"box","text":"Ratings.","page_number":184,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"0f3710dd-4f1f-493f-9424-2422714f44f2","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":184,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"579c0292-3921-4618-875f-bc4a8021fa58","block_type":"box","text":"same as that entity’s issuer rating or IDR, except DIP obligation ratings that are not based off an IDR. At the lower","page_number":184,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"33bf749f-715e-46ea-98a1-b5e491ad7e0e","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":184,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"9088a14a-f7e5-4b5c-8d70-577aca423daa","block_type":"box","text":"obligation ratings.","page_number":184,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"47510b07-5f7c-40ae-b79a-0915b2b0ac48","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":184,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"1f3f5542-6893-4546-82ac-93281b6261ef","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":184,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"0c2eb5b2-8dc9-4417-8de4-9ad4e7623700","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":184,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"15a78ec2-f02f-4577-9b3b-bb635db3c926","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":184,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"7738d9d0-a7d5-4c6d-a4d5-562f1e4d9ef8","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":184,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"de492a4a-0a97-46d7-9724-2685ac411557","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":184,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"99477b08-4619-4061-ac3f-a38eb0814226","block_type":"box","text":"to foreseeable events.","page_number":184,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"4b13dcee-276c-4c4c-8d8e-004cf3b265b7","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":184,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"04e30008-f15e-45b9-b7ea-3afe6c8bdbf5","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":184,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"94379ba5-162e-44e8-8209-0e01a9449db0","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":184,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"fbf8efcb-43cf-4023-b491-b77e2d6daa97","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":184,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"822e958a-7931-4bcd-b410-69a3dd91c0a4","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":184,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"73c9f90a-1a79-49f2-9e76-13b0952a7bab","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":184,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"2d9b6da1-b4eb-412f-830f-e8dce19165b0","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, par ticularly in the event of","page_number":184,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"c368001e-026c-4f2c-9147-d178f88a0285","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":184,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"29625aa2-6aaf-483b-8771-4c616f6bc799","block_type":"box","text":"flexibility exists that suppor ts the servicing of financial commitments.","page_number":184,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"c7dbb49b-9ae0-48fb-b028-6ffd30eafb24","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":184,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"09ca91b0-8d23-4aa1-940e-a46b20157d3c","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":184,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"c4b868b9-0341-48d1-aea5-31e434ea2470","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":184,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"81ae942a-50e5-48b9-ba54-09072e40893d","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":184,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"2aa53d0e-a348-458b-9dda-b948a3ca0100","block_type":"box","text":"possibility.","page_number":184,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"3d472766-3c16-4f11-ad3c-1274f02e44b6","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":184,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"754cc953-88cf-433d-bf5e-45959e2385d1","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":184,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"471aba0c-ea0e-46a2-9c12-709593015712","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":184,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"f83ffb33-59e0-4836-8dc4-75d9ec4ce74f","block_type":"box","text":"A-7","page_number":184,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"70f48aef-d9f9-4b79-a1e8-5cf9f3a78f91","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c0dc6782-f5e2-4388-8e6e-675712a8bdc4","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":185,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"85623d23-675d-4f37-8745-211b3c64abe0","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":185,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"853a5004-5b16-431a-a46b-a70a773c99e4","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":185,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"d8be8cad-6e0c-4e3b-846f-24ff6c9e5968","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":185,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"ad0633f0-4a55-4ec7-a78a-8f8c6f00c137","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":185,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"2745a772-5e71-4530-9887-bf200e9e0185","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":185,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"fb8919e2-71d1-4cde-aac1-539c9e01d458","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":185,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"9422f141-2db2-45c7-9bb7-961691dc2de1","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":185,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"94d8a9cf-11d3-4ada-b677-723fbf34b255","block_type":"box","text":"relative status within major rating categories.","page_number":185,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"9a1ac03e-58e9-4b12-92b8-78fb1602872a","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":185,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"35d36217-3c98-4b46-afc0-52a3ce1e958f","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":185,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"a13df707-4fdc-458f-b84b-b7bbe67911a7","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":185,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"3e161e12-b7bc-49a7-9eda-574acaa2dd9c","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":185,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"05827a0a-cde1-4202-87ff-6eda3b8772d2","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":185,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"fca0b5bd-4081-4fda-ab23-0f30760a637c","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":185,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"3f54f2be-30df-4e26-a5ee-7041d043f03d","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":185,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"35238b4b-cad4-487b-9681-a88fd002ff9a","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":185,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"0fd8ea95-038d-43ce-bcb4-6cc291b98df9","block_type":"box","text":"13 months for corporate, sovereign, and structured obligations and up to 36 months for obligations in U.S. public","page_number":185,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"62d87324-5d1d-4038-8c25-9146b7d6d676","block_type":"box","text":"finance markets.","page_number":185,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"477b2536-e572-4d62-8f46-bf7c1fbe8fc7","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":185,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"7e35cb20-328e-4775-8c56-39463d01e257","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":185,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"1febac1d-2651-4c1d-a880-26f07e145a40","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":185,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"2bb9ddc2-17b4-48ef-9f16-446b84e6f89f","block_type":"box","text":"F2 Good Shor t-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":185,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"fa08da66-4607-49ce-841b-a218e4cf7448","block_type":"box","text":"commitments.","page_number":185,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"22aa50ce-3c10-43fe-bd9a-203b9f99e463","block_type":"box","text":"F3 Fair Shor t-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":185,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"f556a399-6db8-432b-959c-00b9265b4b67","block_type":"box","text":"adequate.","page_number":185,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"db99c623-fd35-43d0-8a79-79456fd7e390","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":185,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"ea2dfe65-2db5-4ff6-aec1-50e9cdbaa0d8","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":185,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"00d19b7a-cc97-43cb-8017-79b215e10ba6","block_type":"box","text":"economic conditions.","page_number":185,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"796dce27-ba98-41cf-8099-124563fa3bcb","block_type":"box","text":"C High Shor t-Term Default Risk. Default is a real possibility.","page_number":185,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"1d629916-41ee-4ee6-aaa0-7c17e6f1f506","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":185,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"a3da096d-3f49-40bd-97da-bd80f3b4a62a","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":185,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"37c26b18-ed7f-4b21-9551-2085ec4da693","block_type":"box","text":"ratings only.","page_number":185,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"ef58ec0f-3e51-4ae1-b1d0-69aa89845c5c","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a shor t-term","page_number":185,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"086a1a15-20a6-466d-8216-598e32b0309c","block_type":"box","text":"obligation.","page_number":185,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"1d8acc51-c69c-434f-8f35-83c8c31983d2","block_type":"box","text":"A-8","page_number":185,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"76b4f78e-0044-45ad-af96-bb8ca57108d1","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"86d59bc8-a7da-4aae-b858-4a445332b922","block_type":"box","text":"APPENDIX B","page_number":186,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"14d50735-eb65-43af-9198-33843376d2da","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":186,"box":{"x":247,"y":106,"width":484,"height":11}},{"id":"3ec15af7-7cd1-4d28-9b10-71e6ed806f8f","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":186,"box":{"x":247,"y":121,"width":486,"height":11}},{"id":"8f901b43-e738-45a0-b04e-7529333802f2","block_type":"box","text":"Effective Date: January 1, 2025","page_number":186,"box":{"x":376,"y":136,"width":227,"height":11}},{"id":"d9a3220d-8bc3-4573-95f7-72dd043b2495","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":186,"box":{"x":231,"y":159,"width":515,"height":11}},{"id":"0ff00eed-39c1-4523-89ce-a35afbaae945","block_type":"box","text":"□","page_number":186,"box":{"x":284,"y":181,"width":15,"height":12}},{"id":"45108354-df89-493b-9331-348aaec60324","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":186,"box":{"x":306,"y":182,"width":388,"height":11}},{"id":"2914aa16-1f45-413f-a784-618c61ae8cd3","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":186,"box":{"x":205,"y":204,"width":589,"height":11}},{"id":"dd72ba80-164a-41b3-979a-9f390c321f1e","block_type":"box","text":"□","page_number":186,"box":{"x":405,"y":227,"width":14,"height":11}},{"id":"c7cfd4c4-5fbd-429b-9c05-4ecef078f6b3","block_type":"box","text":"Money Market Funds","page_number":186,"box":{"x":426,"y":227,"width":147,"height":11}},{"id":"0783f95d-0e7c-4b08-9ec1-f460e5594943","block_type":"box","text":"□","page_number":186,"box":{"x":416,"y":249,"width":14,"height":12}},{"id":"646e28fa-a19b-4ea0-b8bd-12e891395f2d","block_type":"box","text":"Closed-End Funds","page_number":186,"box":{"x":437,"y":249,"width":125,"height":9}},{"id":"fc4ed9a2-63e8-4a8e-b4f5-736a1cc65984","block_type":"box","text":"□","page_number":186,"box":{"x":460,"y":272,"width":14,"height":11}},{"id":"5029f362-5425-48a9-ba77-03ff27627107","block_type":"box","text":"Other","page_number":186,"box":{"x":481,"y":272,"width":38,"height":9}},{"id":"eedced85-e243-4adb-8664-6a616d9dc3c7","block_type":"box","text":"Objective and Scope","page_number":186,"box":{"x":101,"y":295,"width":149,"height":11}},{"id":"1ce841cb-718b-4fd8-8f37-0cf98233ae7b","block_type":"box","text":"Set for th below is the Open-End Active and Fixed Income Index Fund Proxy Voting Policy.","page_number":186,"box":{"x":134,"y":317,"width":622,"height":12}},{"id":"6cd95692-6784-4a8c-a2fc-9c7af51b7247","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":186,"box":{"x":102,"y":340,"width":354,"height":11}},{"id":"fb776b05-a92f-47a2-8e43-f179c14b034e","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of cer tain open-end funds (the “Funds”) advised by","page_number":186,"box":{"x":134,"y":363,"width":702,"height":11}},{"id":"c05753a3-7e9c-478d-8fac-d9f348dfc4fd","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":186,"box":{"x":102,"y":378,"width":789,"height":11}},{"id":"020474e0-5837-403f-9ec7-7905afc10595","block_type":"box","text":"voting proxies relating to por tfolio securities of the Funds, and have determined that it is in the best interests of","page_number":186,"box":{"x":101,"y":393,"width":801,"height":11}},{"id":"2f3a0a9b-7c53-4b9e-9051-a7a774117c87","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":186,"box":{"x":101,"y":408,"width":763,"height":11}},{"id":"1b170a52-731e-41cf-8a70-293609daeafe","block_type":"box","text":"principles outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":186,"box":{"x":102,"y":423,"width":775,"height":12}},{"id":"3d9bf549-e9a6-4f62-8a01-3c119dd45ada","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":186,"box":{"x":102,"y":439,"width":651,"height":11}},{"id":"796127d1-7f4a-4988-be4f-53b778504782","block_type":"box","text":"BlackRock has adopted the BlackRock Active Investment Stewardship Global Engagement and Voting","page_number":186,"box":{"x":135,"y":461,"width":718,"height":11}},{"id":"fa19d137-e394-4621-a4a7-feda6bbe0d21","block_type":"box","text":"Guidelines (as from time to time amended, the “Guidelines”) governing proxy voting by active and fixed income","page_number":186,"box":{"x":102,"y":476,"width":788,"height":11}},{"id":"77441da8-fbb7-41f0-b1ad-e0b33ae3dcae","block_type":"box","text":"index Funds managed by BlackRock. The Guidelines include “climate and decarbonization” guidelines which","page_number":186,"box":{"x":102,"y":491,"width":766,"height":12}},{"id":"60319f3b-d5f1-4cb5-b0f2-bf7c660d62db","block_type":"box","text":"apply to the Funds listed in Appendix A, if any.","page_number":186,"box":{"x":102,"y":506,"width":325,"height":12}},{"id":"80f2bb21-a6d6-442c-9838-3015d474f74d","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":186,"box":{"x":135,"y":529,"width":751,"height":11}},{"id":"5aaf28dc-a69d-469c-8575-e7c7b8db6ece","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines.","page_number":186,"box":{"x":102,"y":544,"width":765,"height":11}},{"id":"f36b5919-a376-4079-aec3-60bfba44f51a","block_type":"box","text":"Conflicts Management","page_number":186,"box":{"x":101,"y":567,"width":165,"height":11}},{"id":"78cee50b-930f-4f5a-a00c-abf0423ca7e7","block_type":"box","text":"BlackRock Active Investment Stewardship (“BAIS”) maintains policies and procedures that seek to prevent","page_number":186,"box":{"x":135,"y":590,"width":758,"height":11}},{"id":"3e71d17b-e319-4f7e-8110-a193958d5c21","block_type":"box","text":"undue influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise","page_number":186,"box":{"x":102,"y":605,"width":797,"height":11}},{"id":"7308d182-6ac4-4f2f-9e9f-e52452185e53","block_type":"box","text":"of proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":186,"box":{"x":102,"y":620,"width":805,"height":11}},{"id":"111425ed-f699-4301-a316-b61a3cced126","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":186,"box":{"x":102,"y":635,"width":797,"height":11}},{"id":"24bf5b9b-4dd9-4c5a-898f-bf0f1dc385d5","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":186,"box":{"x":102,"y":650,"width":756,"height":11}},{"id":"34bcaae8-dd7b-4de3-bde5-405b5634e4d5","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":186,"box":{"x":101,"y":665,"width":800,"height":11}},{"id":"1ce0009a-70fd-4c2a-9aab-cedbd3c9d8e4","block_type":"box","text":"BAIS will adhere to the Guidelines.","page_number":186,"box":{"x":102,"y":680,"width":244,"height":9}},{"id":"695497aa-1feb-4e38-8e6d-10c592865bac","block_type":"box","text":"In cer tain instances, BAIS will engage an independent third-par ty voting service provider to make proxy","page_number":186,"box":{"x":135,"y":703,"width":731,"height":11}},{"id":"6893b16f-d51c-44d0-96cf-9c5017daf18e","block_type":"box","text":"voting recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory","page_number":186,"box":{"x":101,"y":718,"width":763,"height":11}},{"id":"d2bd35f4-cd6f-4314-aebe-3edcfe2d4095","block_type":"box","text":"compliance requirements, or as may be otherwise required by applicable law.","page_number":186,"box":{"x":101,"y":733,"width":550,"height":11}},{"id":"9d28c9ef-b452-4d33-95dd-67e2eef5ae9c","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":186,"box":{"x":134,"y":756,"width":774,"height":11}},{"id":"1662bd07-2ce8-4ad7-92c8-d42b7b4d81be","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":186,"box":{"x":102,"y":771,"width":791,"height":11}},{"id":"9c2bf874-d879-4b49-b77d-951abe89949c","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":186,"box":{"x":102,"y":786,"width":778,"height":11}},{"id":"a498dc06-6a29-4151-b97b-e49c98b40f9a","block_type":"box","text":"connection with proxy voting.","page_number":186,"box":{"x":101,"y":801,"width":203,"height":11}},{"id":"58ef4ac7-a3f9-486a-bb2c-c7413bb60a28","block_type":"box","text":"Reports to the Board","page_number":186,"box":{"x":102,"y":824,"width":153,"height":11}},{"id":"c8b05dad-93ea-4650-9842-a89d2d0d5371","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":186,"box":{"x":135,"y":846,"width":755,"height":12}},{"id":"6cf9bad1-2573-45fc-8ee4-5f199945f51b","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all 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The money BlackRock manages is not its own — it","page_number":191,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"1f0b51c3-b489-473c-af15-b9ea16572502","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":191,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"e8dd71a9-da47-4464-84aa-da60a3f61366","block_type":"box","text":"As a fiduciary, BlackRock invests on clients’ behalf to help them meet their investment objectives. The firm does this","page_number":191,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"8dc2881e-233b-4a75-aa99-f14cf3c5297f","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":191,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"61fd662f-ff3f-4dc4-98ba-9a53e3784a84","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":191,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"f41d49cb-6aaa-462f-85d4-5a1dd72ef7f2","block_type":"box","text":"this work with research, data and analytics.","page_number":191,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"f0d4d32b-d83b-4f7a-aeb8-a5969f6073ab","block_type":"box","text":"At BlackRock, investment stewardship is core to our role as an asset manager and a fiduciary to our clients. As","page_number":191,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"d2f0b8f1-bbed-4d49-b904-b09edb7247a5","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":191,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"3671aec6-168e-4d6b-bf99-ab8677635612","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":191,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"4905d3c1-819e-44ac-9c6d-d791ba3e124b","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":191,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"1dea7dec-3cf4-4f56-9f6a-13d78c4fc3f9","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":191,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"157cac7d-dbfd-44c4-9824-f3660245e20f","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":191,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"5b339431-44da-4d52-b039-8a99a28ca1cb","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":191,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"6f07af88-321a-4e9f-8039-df6ea9677964","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":191,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"216592be-8ec7-4393-8044-1e8b6f79220b","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":191,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"54e134b7-235e-47bf-ae01-19d47dca9663","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":191,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"4ea059c6-9975-4285-ae41-eec912868644","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":191,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"8097a5ca-82f8-48ee-81ef-0d2676aebb26","block_type":"box","text":"shareholder meetings.","page_number":191,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"469143dd-d1e0-45f8-b6f4-10670ed36efe","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":191,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"1c33a7d9-da50-4545-9e6a-3ecb1e775de2","block_type":"box","text":"investing.","page_number":191,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"73f03b90-2407-4b01-8503-3040ab056820","block_type":"box","text":"3","page_number":191,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"6e72bc95-f770-4acb-a127-96f942a0ed72","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":191,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"53caf6cc-5054-41d1-a07d-5536daec485f","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":191,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"25688693-ad4e-428f-b6ca-31e9b4dc69a6","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":191,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"5e759642-774c-4d66-a9c7-4af50c73ad43","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":191,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"d63c4385-02f1-43e6-a215-888011156a00","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":191,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"3af3f567-6fd9-409e-b056-d880045a9f40","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":191,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"4b828768-9b7e-495c-a3b7-310344f6cf81","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":191,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"ad1754dd-f8de-4e76-824b-f59d1e6da150","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":191,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"38fead0c-4354-4c90-85b2-9498b1163ad8","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":191,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"5f43900c-4d69-4b14-a765-78b8412fcca2","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":191,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"9c4d676c-0cea-48b5-93a1-965e49420b54","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":191,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"3bfab2b6-6768-4f87-8a9b-622faabed823","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":191,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"5fd7ac50-5204-4663-b31e-f759a25ad6eb","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":191,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"d8a8ed69-2b28-4193-8a9d-20f9225ad7c0","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":191,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"3ee8e208-3c2f-4b1a-a0cb-c7bd6ee38c53","block_type":"box","text":"management teams and board directors","page_number":191,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"bbf3e4fa-faa4-4a3f-a818-8e75db81bed3","block_type":"box","text":"4","page_number":191,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"1ca89447-1b29-4f7d-9833-b0c905a7dfdf","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":191,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"de83d2b4-3fc2-40df-ad8b-cecba9c79288","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":191,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"99d689f2-3baf-4830-a50a-afb4715d44f6","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":191,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"8ba3c047-c949-4f74-8238-bb231bf28c0b","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":191,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"77f8d932-6e76-49a3-9753-e37dc3b13cae","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":191,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"fbe9399f-20a7-4403-ac25-69b07e8b5c80","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":191,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"b4026089-5c38-4ed2-b03f-8e2efbb9648a","block_type":"box","text":"to – direct a company’s strategy or its implementation. We look to companies to provide disclosures that explain how","page_number":191,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"4194a7c9-587e-4a95-a789-80358eb68a37","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":191,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"352c304d-2e8a-45c1-b949-1713403f037f","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":191,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"e1b99364-6e9d-4dd8-86db-9122a5f009bb","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of corporate","page_number":191,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"fa8a6f4f-92ab-4653-9a04-91ea7acda5fd","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":191,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"db9fc25c-430c-4e8c-95b3-8052a7c43a49","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":191,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"b26aa5f4-8be5-4324-b430-576283f61c45","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":191,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"6cd5246a-4fcb-4bd8-a5ff-dd6b17b4be01","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":191,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"7aa7b92e-6902-432a-9501-74df9d4daaa3","block_type":"box","text":"3","page_number":191,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"25d07f18-8667-45c8-bba1-69d9e9af3d31","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":191,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"9a5b868a-8830-4f80-9ced-680d9266f9ec","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":191,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"1da446eb-2145-4397-b426-187fe063e845","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":191,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"93755b4f-4ec4-4b53-90b3-703483d4bbf2","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":191,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"ff4beb96-4ff7-4955-bda5-03d823392fa1","block_type":"box","text":"4","page_number":191,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"84c9552a-5fba-4dbd-892a-229d6e4623ff","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":191,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"b192140a-4828-4d62-a82b-87cfcc1ae27c","block_type":"box","text":"boards and their members, where relevant.","page_number":191,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"e6cf0010-b4ff-47a8-b0ec-f23975d53e79","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"3e1be862-8d3f-41ba-b20a-c928247cfcd4","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":191,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"310db097-9802-4a4f-837d-a0f7c28c4ac5","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":191,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dca351a1-b24d-4d6f-8b54-12dccaa5d645","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":192,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"5421c7f6-599d-46fb-b282-c430d642e025","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":192,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"b383fbb3-ea40-488c-a5ed-0e8e2ab25b67","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":192,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"8236883d-8360-4bb0-a9b4-d9993482f070","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":192,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"55ea759a-a1ee-4785-b56b-48fa526be217","block_type":"box","text":"on a case-by-case basis, in the context of a company’s situation and the investment mandate we have from clients.","page_number":192,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"af239ab3-f0d6-4237-ad37-a1b0cfd3a4af","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":192,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"1cc6bbef-24c3-4a20-81d1-2f621181ae2c","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":192,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"79cc0eee-ecf7-475a-83fc-e630132f8598","block_type":"box","text":"5","page_number":192,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"6002cb17-4e71-4856-bea5-692f1b4eb610","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":192,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"228b527f-49f1-499f-8327-1b149251e6a3","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":192,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"6b6dd58b-b721-4cab-a3b6-5a7880d00d78","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":192,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"54564b09-7364-44ba-921e-c087ab4de760","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":192,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"6c8524a8-79cb-4998-b874-714cc79c30e3","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":192,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"9f431383-23ff-4347-935d-e2adc27ea8c1","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":192,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"3023bd65-a5e2-4149-8d32-298f558d4008","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":192,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"e797f621-0493-4349-956e-dd36a8d616db","block_type":"box","text":"5","page_number":192,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"87c73553-5245-40d6-86c6-9914815be430","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":192,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"6ab15e61-7bce-473f-a2ab-b9704c32155c","block_type":"box","text":"multi-asset solutions strategies, as well as holdings in BlackRock’s index and active fixed income strategies, to the","page_number":192,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"cc1c026b-0f4e-444c-9ae2-d5335827f55e","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":192,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"536da117-e519-47ae-9f27-848918de19f8","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a8a16e1f-0ef6-4ab9-8ce9-c897909f60ae","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":192,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"4b7bddc2-52fb-477c-9204-cc359bf5bc83","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":192,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d3baf11c-339e-414a-b915-0072795e0651","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":193,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"aadf335f-99af-44f0-a7de-a0af4c0437e9","block_type":"box","text":"Roles and responsibilities","page_number":193,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"341d7643-fea9-4633-a0e8-f919edaca4e7","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":193,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"d38147dc-7aca-48c3-a924-20e7bc8ced18","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":193,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"3e376ef2-8838-4bd2-aae6-618fd781549c","block_type":"box","text":"6","page_number":193,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"ef7f8b53-792f-4cc7-bb6a-a3efe9cb9ffd","block_type":"box","text":"We look to the board of directors (hereafter the “board”) to have an oversight role in the establishment and","page_number":193,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"ec3da69c-da9e-4956-a19b-9eeba56bf144","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":193,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"01007691-339a-4150-8500-deb326035e31","block_type":"box","text":"can better position a company to be resilient in the face of a changing business environment, help reduce the risks","page_number":193,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"0ae9bd5d-1ae3-443d-aedf-654bc57e1391","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":193,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"42c84d82-6858-457f-9501-3f5399592ab4","block_type":"box","text":"per formance over time.","page_number":193,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"53da78bf-f024-4d3f-9709-a336804b90f0","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":193,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"d99eb47c-504c-4672-b231-ecef65619eb8","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":193,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"912a646c-133d-43af-8a14-ae9e65f3cadc","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":193,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"503a03ca-8fba-420f-8f3a-1af5ad4c9678","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":193,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"cfae9934-f234-4249-8afa-c2bff8f404d2","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":193,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"711cc226-239d-436a-91c4-53c97314a848","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":193,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"1d723ac2-bff3-4a95-9257-48f5931257cc","block_type":"box","text":"Composition and effectiveness","page_number":193,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"1c3ab676-c9e9-4260-810b-488060f27142","block_type":"box","text":"Appointment process","page_number":193,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"79226633-8af2-4910-8ea2-ca23791872bd","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":193,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"62318283-f126-417c-9ec2-9f9a33efeec9","block_type":"box","text":"board is composed of directors with the appropriate mix of skills and experience. Generally, the board or a sub","page_number":193,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"c4ac33e3-d9c5-44a6-9229-8f2b8dc075e2","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":193,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"514a5ecb-f50b-4d91-9c7c-9cbc5c6b133e","block_type":"box","text":"e.g.","page_number":193,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"3bc82ea6-4360-41c3-a81f-24aa08d1b9dd","block_type":"box","text":", sector, maturity, geographic","page_number":193,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"e34a5170-e78e-4fa2-9cd8-551d9f21bbce","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":193,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"4a749682-aac1-4661-99a7-8ab5da28a427","block_type":"box","text":"e.g.","page_number":193,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"3c50f9b9-deef-4228-a10e-d5860d09910e","block_type":"box","text":", financial exper tise, industry track record). To","page_number":193,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"5089058b-d67f-439a-8ed4-8f1f050f8751","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":193,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"89086038-06ad-4441-8ab0-3c58e987216e","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":193,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"f1a72339-ec37-42ac-9565-8834b0f4318d","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":193,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"a698c66b-3848-4fd8-b55b-ea601bc125e7","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":193,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"30ef9e4b-cf30-48be-8da1-652a901cac70","block_type":"box","text":"and local market requirements.","page_number":193,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"862456cf-c6c6-44dc-befb-69b8be5cda9c","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":193,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"17e96318-842f-445e-889e-d1d010befc9b","block_type":"box","text":"composition in our engagements or voting but seek to understand how well placed a board is to act in investors’","page_number":193,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"7f75c667-ff15-4768-b316-d47752e9222f","block_type":"box","text":"interests. We may vote against the election of the most senior independent director, or the chair of the relevant","page_number":193,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"6e5b6ec9-74f6-4801-9258-224d3337259f","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":193,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"fce8efc1-6051-4aa8-8829-f8aec8099676","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":193,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"172c9619-bfc5-4ea1-bf4d-5b5deeda864c","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":193,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"f0226d2c-2709-4efd-9837-2f37a5c750bb","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":193,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"c6a437f6-9a09-4df9-a5d7-9b16be8f5a1e","block_type":"box","text":"Independence","page_number":193,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"7f297a1a-3e77-44f2-a0d7-f7b65761608f","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":193,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"1579fd16-45aa-43e6-b4fe-beb8352b5cf8","block_type":"box","text":"e.g.","page_number":193,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"2f0f678b-e391-4a2c-846f-cf40d350ab06","block_type":"box","text":", government or","page_number":193,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"52a566dc-5dfa-4d09-888b-21daadab825c","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":193,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"b3ddf44b-2c96-4aae-be78-7889f239abd0","block_type":"box","text":"BlackRock’s clients. We consider it good practice for at least half the directors to be independent and free from","page_number":193,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"084cf60b-8d31-4760-967b-3914607e2b60","block_type":"box","text":"conflicts of interest or undue influence.","page_number":193,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"bb1f4cb9-7af1-4571-81fe-a0c7bd6ff4e8","block_type":"box","text":"7","page_number":193,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"46e28b10-78ce-41d9-91a5-56545f3ae9e3","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":193,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"715a9cf0-c050-4fb4-ab59-e3b86b6b522b","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":193,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"a1c7acce-0cc9-4a96-b788-512012b8c853","block_type":"box","text":"independence should meet those local requirements.","page_number":193,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"ff00a55c-9879-4201-879a-fdfd4aafcda9","block_type":"box","text":"We may vote against the election of non-independent directors if the board does not have a sufficient balance of","page_number":193,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"6908ab09-9cc0-4a0a-9ca4-5a851470b1c2","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":193,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"ec76707b-90a1-44a0-b77e-c49c8638895f","block_type":"box","text":"composition if this is a perennial issue.","page_number":193,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"0633f1d6-31ad-4ae9-8217-7c0542f08756","block_type":"box","text":"6","page_number":193,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"81ff54a7-88b5-4fab-b56f-6d89465ab79b","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":193,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"6d7db82b-bccd-462a-b4d2-7d357da87c25","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":193,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"d6458abf-6a3d-41a3-9c99-29e5d085fbd0","block_type":"box","text":"7","page_number":193,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"75286b2e-0695-4a4f-a50f-f1d3638f99c0","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":193,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"487867ab-fe0e-4d1f-8fa6-e6d875dca288","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":193,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"672d3ec7-1940-45ec-9b20-c0a7f315c726","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":193,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"d38ea6b4-ccb1-40c5-b528-d822d9151711","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":193,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"9949ab61-ef66-4614-a72c-3d185726771f","block_type":"box","text":"of the company and shareholders.","page_number":193,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"e3ee5d4f-d0bc-4ac8-9c4a-007d9646af37","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"5adf2303-f1ca-4685-a430-d506dd488f45","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":193,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"22ac45e4-61b5-4687-9be5-e95aae7596c2","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":193,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b9f314fe-7757-47ba-9cd4-da68274685db","block_type":"box","text":"Independent board leadership","page_number":194,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"8ea89e21-e4f7-43f0-9ff7-daa59b4253e3","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":194,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"afee36b6-cf9f-44fa-89a9-59301d47d040","block_type":"box","text":"board leadership. One is a non-executive, independent chair of the board who is responsible for leading the board in","page_number":194,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"3e1adad8-f46a-4fae-b954-a21adfdb72de","block_type":"box","text":"the effective exercise of its duties. The other is a lead or senior independent director, who is responsible for","page_number":194,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"0716c1c7-a3e0-4bf8-b78d-503d678fdf1c","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":194,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"d87d8174-5150-4f98-93fb-a2b908df77e5","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":194,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"c87ba8dc-0883-41dc-9938-e7795f8458d7","block_type":"box","text":"ensure the board is effectively fulfilling its responsibilities. In our view, the independent leader of the board, and/or","page_number":194,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"ef2a24eb-4b78-4ad4-9224-d5c9d7cfcae2","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":194,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"e12f3cb7-3635-4ec0-ac68-5d3188b37ace","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":194,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"92a9e99f-d382-497e-a16e-8accd3f58a1f","block_type":"box","text":"how it serves the interests of shareholders.","page_number":194,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"a6bc0d09-86b0-445c-bbb0-8f989abd9973","block_type":"box","text":"We may vote against the election of the chair of the committee responsible for board composition if there is not","page_number":194,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"1018ee27-5413-4915-adf2-5c1e3a3c0f04","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":194,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"40855efb-778a-4793-b30e-39ff0a113737","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":194,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"9077c18f-2b23-4d00-997d-c1ef4213e20d","block_type":"box","text":"Tenure and succession","page_number":194,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"67183463-b203-43d1-a158-1f83ffa9b719","block_type":"box","text":"In our view, it is good practice for boards to establish the length of time a director would normally be expected to","page_number":194,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"60a89a2c-8032-4f9c-b1e0-5b01d452bf30","block_type":"box","text":"serve, in line with market norms where those exist. We find it helpful when companies disclose their approach to","page_number":194,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"1f19bc0a-9faf-45d4-8307-d9ac57301ca5","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":194,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"c5a80a70-8fc8-435c-a045-b804f8d5dca8","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":194,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"71c15222-f2d9-441d-89d2-c159f881fe55","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":194,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"d997e19b-8954-4d80-9e69-b81dd71b0265","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":194,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"00b89630-40e9-45ea-bfa5-166f9d52ee06","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":194,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"3f6fa8d1-34ff-4b72-88c6-a5dc9dda2bfa","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":194,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"92340b2e-466c-4ab8-91e7-b82e32b7cea2","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":194,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"04f74a1b-c3d3-4bc3-b2fe-ce195bf3af08","block_type":"box","text":"practices, we may vote against the election of the chair of the committee responsible for board composition if a","page_number":194,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"2e6af4cb-5bb6-45e5-8223-bb48d66d1407","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":194,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"9424e09e-c161-43aa-9552-0c3b54394050","block_type":"box","text":"election of directors who have served for more years than is typical in markets with specific guidance, where the case","page_number":194,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"9e6be791-5613-494e-aabf-3915eb28bb03","block_type":"box","text":"for their continued service is not evident.","page_number":194,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"443c9a55-68c8-4cb0-96a0-1a14301cfe5a","block_type":"box","text":"Capacity","page_number":194,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"3e0c04c8-9aa1-451f-9ecf-435027bbd05a","block_type":"box","text":"To be effective and engaged, directors need to have the time and energy to commit to the role. In our view, an","page_number":194,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"0596eb4f-3a5e-434b-8e77-71c29bef390b","block_type":"box","text":"effective board will assess the ability of its members to maintain an appropriate focus on board matters and the","page_number":194,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"2a536363-500a-4fe3-b552-494979f72707","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":194,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"a63941de-3fcc-4aec-a523-1e4652701548","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":194,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"1c94c747-b2b5-4b30-be94-14b6484c1233","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":194,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"4f530898-3a29-4ad0-9ead-886593b3d37b","block_type":"box","text":"determinations across markets.","page_number":194,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"deb1d0e7-0e94-484b-beb8-09f0eabf6cae","block_type":"box","text":"We may vote against the election of directors who do not seem to have sufficient capacity to effectively fulfill","page_number":194,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"95f52de9-d168-4117-8680-09da917408fe","block_type":"box","text":"their duties to the board and company.","page_number":194,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"12331750-41fa-482f-9d25-3eae9304b800","block_type":"box","text":"Director elections","page_number":194,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"4f365551-8d5c-4c61-bc70-5ebb7699c66d","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":194,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"6e1840ad-94ea-4dc7-8db2-a05db9e476f4","block_type":"box","text":"structure","page_number":194,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"0919aa0b-f6ef-4508-ac00-f9f458c9b714","block_type":"box","text":"8","page_number":194,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"a839c6c2-8d62-437a-8fe3-1e0eedc56439","block_type":"box","text":"may be justified by a company when it needs consistency and stability during a time of transition, or on the","page_number":194,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"dbbcea06-0dab-4281-9e9a-9a51e153b47f","block_type":"box","text":"basis of its business model (","page_number":194,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"05fd7051-6bd9-4b96-81d2-84a919efd702","block_type":"box","text":"e.g.","page_number":194,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"52db8f84-d19a-4bb8-bf11-7610226e19f1","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":194,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"7db56b59-3c16-4180-9287-a0bb20c109fe","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":194,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"d52b3855-7fef-4653-85a2-0387b994f7f1","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":194,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"cf078d6e-e3ca-480c-844f-7946df686bd8","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":194,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"0260c9c3-69b4-4069-b8c0-f97b2a47e8f7","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":194,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"03869fa6-e993-4f7f-aaef-1ed3a8add179","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":194,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"e3c78d26-ee46-47f6-9829-ee2d2cd87542","block_type":"box","text":"shareholder meeting. Where a company’s practices differ, we look to the board to provide a detailed explanation as","page_number":194,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"de64c757-7451-45d3-82fb-b464073339a6","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":194,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"596a1459-2cb1-4347-8164-4831bedb7d70","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":194,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"9f4abe86-d318-4df5-b907-34298000bf8f","block_type":"box","text":"a simple majority vote standard for director elections. We may vote against all the directors standing for election as","page_number":194,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"1b9e4b8d-f6f1-4949-8eb6-a337b6a5385c","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":194,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"2c92ae60-f55d-4720-b3c9-29abc215ea44","block_type":"box","text":"8","page_number":194,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"7a9c59b6-8f18-451d-8ba3-d2a27bb357da","block_type":"box","text":"A classified board divides the directors into classes with different overlapping terms. As a result, only one class of","page_number":194,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"0574b5bb-e1cf-4d40-891d-36d0d882e884","block_type":"box","text":"directors stands for election in any one year.","page_number":194,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"e44e8974-3a20-4455-9935-e4f47eb32c08","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"396e3035-0528-41cb-8bf5-d4db18b05c30","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":194,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"0acf3401-5256-4f6d-9c5e-8c0319af6589","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":194,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ab4cf23c-155e-4014-bc02-1f624ee40c13","block_type":"box","text":"Committees","page_number":195,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"55b16ab3-013c-492c-bc12-e2c61eabb65c","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":195,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"a977ca6f-f51f-48f5-9951-fa4a4747e70b","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":195,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"e52dde7a-9791-461d-a95c-c242177c3991","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":195,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"e1c1d0a0-72d9-4f94-a2de-135b2c578396","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":195,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"44bd4045-6a0a-45ba-a9d8-4c84abe1f61c","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":195,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"6e722b66-5996-47c4-9edd-c7df3e4f02e7","block_type":"box","text":"matters are assigned either to the full board or to one of the committees. It is helpful to investor understanding when","page_number":195,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"bb521f96-d95b-429a-a438-f1c0563de166","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":195,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"824928bd-1b26-4693-bcc7-698692e05dd2","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":195,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"096320b2-6ad7-406a-b164-eddf4c2890cb","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"292853c3-5b46-4091-92d0-08a305f745ba","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":195,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"daf9ed1a-1c2c-4837-8017-24a2e5612bce","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":195,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"08603885-514d-4b92-999b-52275921e863","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":195,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"94f7bc36-d12a-414a-b24f-e2d99f827224","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"9cbb0dfb-dd7a-470d-8b92-1fef3bc14773","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":195,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"3bacb8ae-4d3b-41b9-84b9-37eb7502aee5","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":195,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"54c6d42e-87d4-45eb-b76f-9a49d1479b19","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":195,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"30714657-25e8-42b5-a0b3-d819b32d5d4a","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":195,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"1fbaea67-c55e-4245-9866-628eb3e2dddb","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"145fac47-8bf6-4bc7-a2a8-92e9a9d978e1","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":195,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"2d1fbfba-1466-4e01-948b-ed62963e5b4d","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":195,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"84df93ba-0a4f-4c0b-95f9-b0d94377b60d","block_type":"box","text":"firm-wide compensation policies.","page_number":195,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"c59a4d8f-c25e-42e8-b1c6-ee3bf71b0c63","block_type":"box","text":"We may vote against the election of the chair of the committee or other directors serving as committee members","page_number":195,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"408be84c-b7a7-473b-a758-61715b326065","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":195,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"3ba3442d-cae9-4c2c-95e1-8addccfb66a3","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":195,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"86217088-0bee-4f27-9cd0-1dded57581bf","block_type":"box","text":"Board and director evaluation","page_number":195,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"f83e2c0d-a473-4701-9ae3-ea3acc40e6b9","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":195,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"34ec72b2-14f2-4413-9d73-78270cb43b5a","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":195,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"cce88547-ed54-48f6-b104-d6cbc6079b5e","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":195,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"5d662fec-5349-4d7e-b183-fde9679bb3fa","block_type":"box","text":"disclose their approach to and the objectives of evaluations, including any changes made to the board’s approach as","page_number":195,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"cb16667c-d400-4f87-88a1-3827cc09b542","block_type":"box","text":"a result.","page_number":195,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"26f1ccea-5f82-49a1-9e69-47fd1875fda0","block_type":"box","text":"Access to independent advice","page_number":195,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"4076d1a7-2f2b-46b1-9f9b-5a5b531e6fc1","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":195,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"29bb6c93-42b8-4f5e-b924-4643f5aff490","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":195,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"dff69826-3d4c-4884-a34e-dfbfdcd37665","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":195,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"28431200-8774-439a-aa6e-055c336c1008","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":195,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"96a26a30-f11a-4552-842d-c4edf69dad56","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":195,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"80a20ac8-fdcc-4cb0-be56-062ccad7daaa","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":195,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"e84d3cfa-d57e-40da-9c4a-9d0971d133f8","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":195,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"4ddfc33e-450c-45a4-8c3c-4ed0f26a32e6","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":195,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"7f665df5-93e3-48f3-8cb3-965d50adab77","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":195,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"28c99b9c-0fa1-4e6c-a990-095ff45046c6","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":195,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"f8287157-1eb9-4dde-8032-fc1e4e0c96bb","block_type":"box","text":"per formance.","page_number":195,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"9739ee3c-f189-4fbb-8300-a6ca6f6d1bf6","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":195,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"335c3ba5-e10c-457e-a2c7-d1835b831594","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":195,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"786207bd-2739-4bac-a8da-01d8a2c67ea4","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":195,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"fae78950-9abc-4dbe-81ac-07a68acec238","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":195,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"aa296cc4-063d-4836-8b90-0eaa280ced8d","block_type":"box","text":"to be tailored to the company, its sector and long-term strategy, as well as the individuals the board is seeking to","page_number":195,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"d8bf76b9-70e9-4fde-ab0b-d0cf1f42bb5d","block_type":"box","text":"recruit and motivate.","page_number":195,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"6c81251f-e75b-478c-8369-24003e9e75f6","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":195,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"7052efb9-1147-45f6-855a-9cff7b352773","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":195,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"88e89839-c2e8-4d14-bd8e-0eb590d6e718","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":195,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"d211c823-3592-4b69-b4b8-ca57a9fc1a9a","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":195,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"eeb9d38f-41a2-4c9f-bfac-da935574d563","block_type":"box","text":"arrangements include:","page_number":195,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"9001ccfa-aa86-46b2-8a23-3a454771236e","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"2d5b493d-5ffd-480a-ae08-2db6be41646c","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":195,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"4873b029-4f3f-4985-b903-c200c47ba2c4","block_type":"box","text":"the company’s size, sector and market.","page_number":195,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"143e5f32-6b08-4e64-aa5d-e77912b39de0","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"0ca5d458-41c7-481d-86d5-8555797e7ee5","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":195,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"b84aa7e0-b949-48c0-8724-4c7ea6ec7d5b","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":195,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c7d97fee-a4bf-4507-94cd-2c0ce8c490a7","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"40c900af-9a1a-4a64-aa7f-8cb26ea07136","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":196,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"ffa8a60e-4375-426f-b6a9-ceb653865496","block_type":"box","text":"strategic objectives.","page_number":196,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"db5b8a8d-63f6-4357-9925-70add221bd03","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"8d18d907-1af4-4fb4-aa6f-93e55bd6e70b","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":196,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"e936b519-ebb8-473c-98ed-dedd4aa382c7","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"7c0981cd-dcd7-44da-a3d7-3ee7ac27d3b5","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":196,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"30b36e9f-7953-483d-9626-770ca012dd7b","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":196,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"fbf2d678-e78e-4488-ae52-f7ee22061ad5","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"5bc7ca01-cff4-4ce7-a777-94857c206ad2","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":196,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"fa2698bc-d47f-48ed-a475-07b59b36f8bc","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"eb1e8a78-31a8-4b4a-9af3-0698ae4374c3","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":196,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"03104a29-f9fe-472d-ace3-a46d268762af","block_type":"box","text":"transparently.","page_number":196,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"17f348c6-c8eb-4fb6-b2e9-31e6fff98711","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"79c64cb4-e594-433a-b8d0-ba4002a9b9ce","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":196,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"d9a83d3e-0aeb-467a-a884-feeed7d63a53","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":196,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"27a7ddb9-6a5f-4c53-acb0-48fd361b9867","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"4c0033b5-c7a0-4eb6-b372-734022508406","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":196,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"4ff55073-0d0b-4e65-8836-9a0ec2523430","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"2d43f81a-a5a8-4e61-a79c-991863d78366","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":196,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"7c4bc020-038f-4a2d-91a6-147a28e5b7e4","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":196,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"edbed16e-f45d-477e-bdad-b068fb72df01","block_type":"box","text":"misconduct.","page_number":196,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"10d89f0e-8b29-4769-8fa2-30dd33a1532a","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"460dd0d5-8f1b-465a-9673-39ed0c8bbf61","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":196,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"a8995c4c-d078-46c2-9e9b-b85680778949","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":196,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"49279117-f796-4a6b-ae75-c5c8d2f085e8","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":196,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"6be4627d-8c53-4fef-a798-ee13a4c81045","block_type":"box","text":"and our clients’ financial interests. When there is not an alternative, or where there have been multi-year issues with","page_number":196,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"b3b99087-4543-453d-9b90-b0e1e1a13bf8","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":196,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"6dd1f955-4e95-4773-9262-532df63df7ad","block_type":"box","text":"committee, or the most senior independent director.","page_number":196,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"40311451-49ed-4e7b-8ee2-dd32a788ea8b","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":196,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"379810ca-c5e5-471f-9123-5821cdfb35dc","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":196,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"0d9646c4-902a-4b3e-9972-eb9654a91044","block_type":"box","text":"the two. Some companies also pay additional fees for service on board committees or in board leadership roles. We","page_number":196,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"5f3dfb67-af28-4f9f-ad47-41c06effaaf2","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":196,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"b7fd3f3c-a108-4cc6-95d6-e19d21d87826","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":196,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"7b654fc4-84d0-4110-a689-43683d73d106","block_type":"box","text":"CAPITAL STRUCTURE","page_number":196,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"4c473a37-3717-4af7-9861-da84fff17dd4","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":196,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"0249c08b-22ee-421a-87c5-3160fcc7e171","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":196,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"4d4567fe-601e-4891-a553-a929a0676e0b","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":196,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"f036c123-b44c-45bf-927b-5c2c36865e9c","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":196,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"6777ab73-4a98-4ab4-bb6c-0d2b7b9d4638","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":196,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"8c6815e7-da48-426e-b289-31b10eac7c81","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":196,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"16e8d5f6-18e6-42d9-b7e8-166872955a69","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":196,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"5746e867-798b-4406-b251-2cfecb84c95d","block_type":"box","text":"Share issuance","page_number":196,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"16cc0b4e-b4a6-4537-bbb1-2e5a70ef961e","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":196,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"d0b56619-c8ab-4e92-9a9d-16d955ac9eb8","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":196,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"58fcce34-31a9-4096-903c-d7b5d0e46025","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":196,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"20413cbf-9427-42d5-a231-548199b5c46b","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":196,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"39725818-2aac-4c04-b1f3-b2deb3614cc1","block_type":"box","text":"market environment.","page_number":196,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"fa37cad5-5b60-4706-b33e-f3081e26bb5b","block_type":"box","text":"Share buybacks","page_number":196,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"55ea61e4-f36e-4851-8aad-d764bb75925e","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":196,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"dcb1939e-ca50-4c02-9857-c01eff88e7dd","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":196,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"7b60778b-5cea-4df8-8ece-3eee26149442","block_type":"box","text":"the company and returning cash to investors. We also take into consideration the effect of a buyback program on the","page_number":196,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"563b5d35-10a5-4f9e-908c-9be7b083c9d1","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":196,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"54d5449e-4461-4486-b022-d1fa639949ac","block_type":"box","text":"relative to market price. We consider it good practice for companies to seek regular approval of these authorities to","page_number":196,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"bd0cf419-85a1-4ca6-b0ac-29c6f741bd2b","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":196,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"17c96f94-a087-4611-bc84-49a70f5a7e5f","block_type":"box","text":"of the company and the market environment.","page_number":196,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"d9d6ff70-5d9e-4a06-a002-37c9dd4f8448","block_type":"box","text":"Dividends","page_number":196,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"57b89cde-b700-4412-853f-185948d6a73c","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":196,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"14d42798-5254-458c-8463-529529cab2ff","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":196,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"0a067503-e86e-4626-a34e-8d94e4329117","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b941fc1a-d532-4918-a1c2-25622d81c1c8","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":196,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"1c9bb65b-1eae-4cf9-a463-a297e0b94694","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":196,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"96ee878f-9223-4b6d-b3c1-c0c505214509","block_type":"box","text":"Differentiated voting rights","page_number":197,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"90c1a432-d2ac-4f3e-985b-91e764ee0ed2","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":197,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"fec4206b-4f9f-4b2e-b9fc-a0912e29c202","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":197,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"f5c163a1-3eb1-4cda-a467-35e6910a10b1","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":197,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"aa4175ee-b78d-4005-9250-d2515fa3b982","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":197,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"4ecd48d1-68b0-42de-bdf1-c6cb68d0a9fc","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":197,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"4b2e83b6-18d0-43f4-ae0a-b539b54c86f0","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":197,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"981064d7-9f51-41ee-81d0-a6cb180a8752","block_type":"box","text":"analyses of proposals.","page_number":197,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"5a8ff469-500b-47f5-8e8e-ff29fd5a9d25","block_type":"box","text":"Mergers and acquisitions","page_number":197,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"36e55532-4f78-47f9-86f7-c1041e37d846","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":197,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"23c94b7d-1cee-4ed4-8e2d-a0affb738af5","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":197,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"04f343d4-a6fa-451d-a669-d33bbbbcb5b6","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":197,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"6d118410-3719-4395-8283-dbe8f952dc5d","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":197,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"722c4dba-85b8-4dda-8768-fd9f58b81401","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":197,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"159c80fe-929e-4f8b-ab87-a49a5954c83a","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":197,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"dd5ec354-6faa-4be4-83ed-906b2f27cfa4","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":197,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"81ea10f5-2335-40c8-b950-83073efec018","block_type":"box","text":"Anti-takeover defenses","page_number":197,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"b2a8180e-c632-4110-a99f-a27202b0377e","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":197,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"3b939f7c-d761-4bee-a133-8d886b33bad6","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":197,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"09cd8b1f-a9f4-49fb-9d79-1dcee47e4965","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":197,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"a20985ac-60c9-4651-993b-4d921eb60425","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":197,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"3f3701b5-3d67-41c0-9dac-871e78e8037c","block_type":"box","text":"case to use a poison pill to block a shareholder activism campaign that may be counter to the interests of other","page_number":197,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"715ea412-10f4-4704-ab4b-238963da7985","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":197,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"2ba92fc1-1be9-4380-9970-f1189dc2e980","block_type":"box","text":"be closely monitored by the independent members of the board. We consider it good practice for companies to put to","page_number":197,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"aa9e00a5-c290-43a4-8168-70a5cf17c35c","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":197,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"026d53d7-1e67-4bea-b12d-ad5e66396151","block_type":"box","text":"Shareholder activism","page_number":197,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"30faafb1-ccc6-44c9-9763-e48ec42b4064","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":197,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"529a8716-e2c7-4516-9a0d-3b046aa3f268","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":197,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"4615b736-764a-411c-bd28-fd27cf625c51","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":197,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"3a41d692-16d7-44a7-9ecf-dfa2bffb5034","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":197,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"57effe60-49ef-4d02-98e6-86c8c3623796","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":197,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"03ef5561-04c4-43c2-815b-37373cefdee6","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":197,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"af16e850-a08b-4bec-b64a-9f7b9bbfc878","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":197,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"4405c78d-7ffa-4657-b309-952cc78a1e61","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":197,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"3727e10d-30ac-4ee0-b0f0-4fde57b84a72","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":197,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"5d2289b6-af24-4e90-a7c6-f6cd18c3a6dc","block_type":"box","text":"protecting shareholders’ interests.","page_number":197,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"1139f36c-7157-4320-ab28-faa59bddd706","block_type":"box","text":"Significant shareholders and related party transactions","page_number":197,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"ffd4c12a-bd16-4f1a-88c0-d3675c2eea61","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":197,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"ce3d0c64-acda-48d6-a9aa-1a6cd3e8d742","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":197,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"0e3d5b62-0bd9-43f9-9080-fe8adc22671d","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":197,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"1bdaf688-dc26-452a-883d-f45587d5ecd3","block_type":"box","text":"affiliated with the public company, to be disclosed in detail and conducted on terms similar to what would objectively","page_number":197,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"d9a68494-e516-424c-a9d4-252fcba270a2","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":197,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"0f339c7b-48f2-459d-af09-327c441c0ad9","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":197,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"aa4f6df8-f053-47d9-a000-a8496dbeaf48","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":197,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"18b5412c-580e-43fb-92f1-02733ebb8ff0","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":197,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"f5d3f789-32e8-40f5-a71a-ccdd928e9495","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":197,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"25d044c9-8aa2-478b-894d-e1a8effdb045","block_type":"box","text":"potential for the company to create shareholder value over time. We consider it good practice for the board to","page_number":197,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"41dd5368-5dd2-496e-89ed-6d6b247927e5","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":197,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"9edc650e-12a3-4bda-b07e-bd0da069a221","block_type":"box","text":"audit.","page_number":197,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"fe196b6f-fc14-4eaa-b197-81e97def7648","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":197,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"a15bc91a-b51e-48cf-839d-0c7871c54a60","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":197,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"5707d7c8-b65a-462c-9bdd-85e09b84c6a1","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":197,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"5c9fdb25-97e3-44f3-8a65-7cd143a0c3ac","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"fab2e425-691b-4c62-9389-f90202918a1f","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":197,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"4b958f85-78b4-4e1b-b7bb-a38ae6f38d82","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7f50ac82-67e8-4193-b26c-68ee12f64d58","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":198,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"8f795d5a-28bd-4a3e-8dbf-d6c1900a6965","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":198,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"359027b6-09c0-4ff9-9ca6-d7c2791d5c13","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":198,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"8f2d1ad1-7f67-4e81-afd2-7b13ca047256","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":198,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"8acdda00-697b-496e-90fe-db5ed7a42ba5","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":198,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"c665bf78-abe7-4252-8dc4-51963f02285c","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":198,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"07181028-e066-4e0a-9876-639e58a2ca3d","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":198,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"f4d07eab-c808-41fb-a395-18b74c21d58d","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":198,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"6385fd9a-78ac-4d16-aba1-f888e1301b33","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":198,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"338f6f44-4b41-40e1-9546-46ee0f52f990","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":198,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"6c55a8fb-dbca-4b65-950a-4ca4331b9295","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":198,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"e16e2709-6d88-434a-b870-92606d47d02e","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":198,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"edd1e631-6515-4b4b-a0cb-143b2c46431b","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":198,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"20806e74-c8bb-402c-aa8a-f9b1c5d6060f","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":198,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"1677fd9d-4416-4408-8465-395421f3884b","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":198,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"8ae4ad73-d5b1-42a5-aa88-d5ad9c1fbe13","block_type":"box","text":"9","page_number":198,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"90e3fb67-55e2-47ef-b604-38a807e22612","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":198,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"66a92e9a-97e2-4d94-9b31-df10414523fd","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":198,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"0d9a0ff3-375a-44e4-97be-d403c14a4804","block_type":"box","text":"standards specified by policy makers.","page_number":198,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"f4435d39-d5f6-4748-b4e4-12a91e2d5a75","block_type":"box","text":"10","page_number":198,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"33090f29-dfed-4417-86ad-e6a2b80b75f7","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":198,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"c62ade3b-2a39-4013-a93c-323c10c2fad7","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":198,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"2fa272e2-c16b-4528-aeb5-f461462c879f","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":198,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"6c88ad06-6c76-4af2-bc2c-0cbdc01b764d","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":198,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"dd92fc86-b7d9-4c00-8743-f2fe7b8cc709","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":198,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"4ead0b95-56e1-430a-957a-1fd86e87962e","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":198,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"901c8466-6210-440f-9d5c-a16bf015e1b3","block_type":"box","text":"well as any critical audit matters identified and how these were resolved. A comprehensive and effective audit is time","page_number":198,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"8f66a16e-20bd-4392-977d-b753f6272eb2","block_type":"box","text":"and resource intensive, and the audit fee should be commensurate. Fees paid to the audit firm for non-audit","page_number":198,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"737326ec-f971-42e0-be80-084be693dd09","block_type":"box","text":"consulting should not exceed the audit fee to a degree that may prompt concerns about the independence of the","page_number":198,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"d01c5c5f-89a9-49ce-b217-cb913d4f8353","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":198,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"5ed54cd5-d0ba-4732-8a7a-bb943fa05d63","block_type":"box","text":"remained independent.","page_number":198,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"7e03fc70-7bb3-4428-84e7-ad41272e6afa","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":198,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"596e8b4a-a9e1-4019-b5c0-5561b33549e0","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":198,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"f39ac49c-323a-4d9b-8bd9-725cdd487aff","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":198,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"dfb24361-eb59-41af-9a9e-4d1c02636086","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":198,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"f1856886-2df5-447a-aa4a-ba9bd44645cf","block_type":"box","text":"audit fee if we are concerned about the auditor’s independence, the quality of the audit, or there are material","page_number":198,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"7b45e1bd-13df-4b2c-9e87-d80ef374c726","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":198,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"03e52874-f2c9-4491-b982-599854cf7e36","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":198,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"9271a500-62f5-4f7c-9371-a876b5032ecb","block_type":"box","text":"General shareholder meetings","page_number":198,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"d5978882-ce5b-4e37-a38d-ad4af0caa2cb","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":198,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"262735c6-726b-4baf-81fc-f4aea4229492","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":198,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"90a23bdc-77ee-405a-9289-f7355c9c3356","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":198,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"fa765a33-fbd7-4e9c-910b-bf4e8a410b7f","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":198,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"6ccdeb05-622b-4c94-9575-c724436b9fab","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":198,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"a2fc1c07-d214-43ae-8568-1944fd27815e","block_type":"box","text":"an in-person meeting.","page_number":198,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"dc3b9e69-ab81-4395-bd56-cc9ff9198b30","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":198,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"dd3be490-59e1-42a6-b25c-dc946cb7aa42","block_type":"box","text":"provided in a timely manner or do not provide sufficient information for us to make an informed voting decision. We","page_number":198,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"843c0746-dab4-4a25-9a86-4a31835e1557","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":198,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"12244104-0341-4fec-90a5-dd7f104e6021","block_type":"box","text":"par ticipation.","page_number":198,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"b3c686dd-e8d2-4641-82c9-851f7f777703","block_type":"box","text":"9","page_number":198,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"0c717bcf-84cf-491e-a700-9b7512727fb1","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":198,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"3ee7ec22-1ea5-44ab-92fa-b14f96a5abfd","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":198,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"fd396f6c-66ac-4f52-829b-5a65ec0d9d99","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":198,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"b25880f6-273d-4446-ab43-27840080fb6f","block_type":"box","text":"Disclosures.”","page_number":198,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"cecdaa22-71fd-4bf3-b3b2-4f6d572e0ce1","block_type":"box","text":"10","page_number":198,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"ccf0107b-b39f-4a41-81c3-1e152d822fff","block_type":"box","text":"See, for examples, https://www.ifrs.org/news-and-events/news/2025/06/ifrs-foundation-publishes-jurisdictional- profiles\r\nissbstandards/ and https//financeeceropae/capitalmarketsnionandfinancialmarkets/compan","page_number":198,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"bd90eea2-b045-4a74-b3f5-e3dc96802033","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":198,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"4baeab70-472a-43a9-8989-87d80c1f8f80","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":198,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"a631158d-45cd-4d7f-b14a-bff3ed62b872","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e4fcd83e-1275-4dbe-b85f-a827157eb1a8","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":198,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"ece8a093-7864-4cf4-b533-be5947308ef3","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cd70ee56-3a34-41f5-9691-095c4c0d22e3","block_type":"box","text":"Bylaw amendments","page_number":199,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"e827fbf8-6131-49b5-b147-8d2af57b3e9f","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":199,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"a85a8e9a-fef8-49c5-9d79-126f8e69df60","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":199,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"e7eb2a44-2f11-48f9-b693-95947cfa9e8a","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":199,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"000fade5-2406-4938-8150-82b260e4d308","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":199,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"2894144a-9006-40ea-aae0-1b7ade63c1fd","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":199,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"350a3a28-96a0-4e52-971a-ce9067641baf","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":199,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"dcc50729-c3ca-442e-a8b6-fefbf5fc1a06","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":199,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"f2c6315f-f3d4-4d67-a3fd-6afd29cb9fed","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":199,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"fa76ad02-7d58-44a6-9240-bad92f45ceca","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":199,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"699081b4-cb85-4887-92ad-2306962ae34a","block_type":"box","text":"group, with a meaningful shareholding, the right to nominate directors to the company’s board. The threshold for this","page_number":199,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"13917175-e242-4a26-8f97-95b5ae43a4c5","block_type":"box","text":"right should be set so that shareholders can exercise it without being unduly disruptive to the board’s own","page_number":199,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"83efbfde-fc19-487a-816a-edff7a566997","block_type":"box","text":"nomination process.","page_number":199,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"260865f6-ffcb-4353-9477-6b74c9447dc9","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":199,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"4083a7ab-537b-4ef4-81fb-578cafe2d35f","block_type":"box","text":"We may vote for a shareholder proposal seeking the addition of either of these provisions to a company’s bylaws.","page_number":199,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"99b878d3-14e3-457a-92c5-313ffc5342f8","block_type":"box","text":"Change of domicile","page_number":199,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"a0a2171b-9f01-46bd-bc2c-0dd531830719","block_type":"box","text":"We generally defer to management on proposals to change a company’s domicile as long as the rationale for","page_number":199,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"898dd4cf-f5a9-47d8-827f-c8016cec2acf","block_type":"box","text":"doing so is consistent with the company’s long-term strategy and business model and the related costs are","page_number":199,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"5a3e8f74-d620-4e62-8377-ac85e6706fa2","block_type":"box","text":"immaterial.","page_number":199,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"4e0b5d30-13f6-4e3f-80b9-9391d6279c4a","block_type":"box","text":"We may vote against directors or a proposal to change a company’s domicile where it does not seem aligned","page_number":199,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"c77e1e00-0951-4bf9-a8ae-ca167b0ab48e","block_type":"box","text":"with our clients’ financial interests.","page_number":199,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"31fe5766-3f9c-45ae-b8e6-d3c89b6cb930","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":199,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"0995e2bb-63c3-42ce-a047-f15bafb77949","block_type":"box","text":"Plans to materially change the nature of a company’s business or its purpose should be disclosed and explained","page_number":199,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"fbf80424-ca4e-4389-8e98-1b5e4afa91cf","block_type":"box","text":"in the context of long-term strategy and business dynamics. Such changes may significantly alter an investor’s views","page_number":199,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"05249334-7f6e-4f40-8a42-fadba20b3aee","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":199,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"ed9a214a-cc51-4493-a460-9c0d036d81ea","block_type":"box","text":"Where relevant, we may vote against proposals to change a company’s purpose or the nature of its business if","page_number":199,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"b6cc28a4-77a6-40b0-a7bd-f3cfeebc12ad","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":199,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"d522b2bb-50b7-4b10-b841-0f38804f2b43","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":199,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"380eaf3f-b6af-4e59-b903-1083da7e54ab","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":199,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"bb3c9c5e-32b5-4392-9fef-b535775985e5","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":199,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"8f4c5746-702f-4fc9-bd52-65bc1f9d3069","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":199,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"439e9304-0b6b-4b64-908c-135bc286cc5f","block_type":"box","text":"relevant to a company’s business.","page_number":199,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"296a36ee-ed9e-49b6-aa7f-014e1ef3073f","block_type":"box","text":"We vote on these proposals on a case-by-case basis. We assess the relevance of the topic raised to a","page_number":199,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"0d50027f-f382-4f42-8173-64a1a8c1dc12","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":199,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"b1ffd242-1d39-4715-bbb5-e48d5fdbe6ae","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":199,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"562c6773-0bac-4478-83fc-bb76744f1c1c","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":199,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"26d7bf80-c9fe-4326-9e42-b3ab0f2f5849","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":199,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"63747a47-2a81-4123-98a9-851bd8438060","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":199,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"242ebd33-c6e4-43ee-b04e-828f02d17f36","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":199,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"56e6d48c-1244-4402-8d56-8158f9d90bc7","block_type":"box","text":"shareholder proposals that are legally binding on the company, seek to alter a company’s strategy or direct its","page_number":199,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"80d84f3c-517a-4cf3-a0cf-05f248906962","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":199,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"e74a1f6c-8012-4366-987c-14e5369952d0","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":199,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"89473158-2c99-4c4a-85b0-e3732d7b456f","block_type":"box","text":"and limitations on how we can interact with the companies in which we invest on behalf of our clients, including our","page_number":199,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"395a1025-354f-40bc-a725-9aaef697b13a","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":199,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"3c6a7eba-a0a9-441f-9f44-8af8c81c8266","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":199,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"49f51634-7cdc-45a7-937b-5b23e168fcbb","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":199,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"c49128fd-f8b5-4fc7-9e50-5aa19fe08040","block_type":"box","text":"A corporation’s ability to engage in the policy process is subject to rules and regulations set by the jurisdictions","page_number":199,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"5c8acfe4-5f9a-44e7-90c9-c927cd1f200c","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":199,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"e624fb90-c6f1-4b56-ae1a-3c26fc16dfb4","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":199,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"3aa6ec4d-d138-40ea-b3c1-469c19052813","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":199,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"7fcb8689-931a-4559-a643-a53d5d853c4b","block_type":"box","text":"statements on policy matters material to the company’s long-term strategy. The board should be aware of the","page_number":199,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"02f1a28b-183d-4421-a598-f697bf65f739","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":199,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"f94e8303-f418-442f-a6d6-dd0a56137722","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"dc570a90-0939-4c90-b635-f2dd1c6743d4","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":199,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"b4ecfb71-5140-4756-922d-8ab6f0f424c5","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"840ee7ef-f9f7-4016-af86-e682235e7fd0","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":200,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"bb3d1f06-1e62-4ca8-84a4-1f972437e6ab","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":200,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"d4d01287-9577-4b33-9ef8-ab32366494dc","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":200,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"4a0c44db-4064-4351-b117-7b7bc1fb958a","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":200,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"ff0ab3ff-ef19-4999-9aa2-b368891d1f9d","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":200,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"e6b25210-ddf5-481b-82d3-652d324a0b0f","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":200,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"7432e2cb-ae74-4cc1-b8b5-fa9d275bed0f","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":200,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"ea8ce7c6-d8ce-4851-a27e-0e9b21727cd8","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":200,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"809415e0-9b9b-47ae-8e8c-6206ee830c9e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"6131eaba-40c0-489d-9e4c-57bae500095b","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":200,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"17319402-1960-4667-b74f-a366f79ecff9","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4ead78df-ed6c-4bc8-bb3f-129577a509ce","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":201,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"b1db56ad-f9d8-4cb1-981c-c9711fcc403f","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":201,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"6d3a7d00-9c1f-4bb1-923d-ac71de531216","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":201,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"df35763c-2b3e-4c68-8668-4abea9b7bd67","block_type":"box","text":"11","page_number":201,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"b2d3c65f-5439-4d97-baaa-b4265c50116d","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":201,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"3b334943-09fb-4275-9ada-95e0aed82323","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":201,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"1c610095-b9eb-477b-aa32-0f51f153ebc4","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":201,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"8af3af79-5dc4-4d7c-8b45-93a498a73778","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":201,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"17fb4605-c81f-43ea-b61b-99e058d405ca","block_type":"box","text":"regulatory requirements.","page_number":201,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"1d015074-9cae-430f-a5db-4186bdd29e61","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":201,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"8712c953-a2f4-460e-8fe4-aceeeacaee90","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":201,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"6067cc2d-c8ba-4f3b-900a-950ebf3e34be","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":201,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"f91d1c90-01bc-4d31-a734-3c2f112f85da","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":201,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"56ac1966-4802-49ea-a7b0-e2ea14fe6e14","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":201,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"0ba0d0f0-5401-4461-ac32-b45d9ba81b26","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":201,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"a698afb6-709f-499e-ab84-4323810d58ab","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":201,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"bf9f6260-6f9a-43fe-b23c-63e4d09838f1","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":201,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"dc00e47f-90ea-4790-ae19-66e1b5f05a0d","block_type":"box","text":"returns.","page_number":201,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"72bfee77-7d1c-4865-9a28-db685b07f08f","block_type":"box","text":"KEY STAKEHOLDERS","page_number":201,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"6887a8aa-a5e7-4408-945c-cfebe0c3fb94","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":201,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"800ba639-0cd3-4571-86ff-daf87f4e9c5b","block_type":"box","text":"whom they depend for their success over time. It is for each company to determine their key stakeholders based on","page_number":201,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"61683dac-a3b1-4f3d-929a-e621ce72d241","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":201,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"77068eca-cfe9-4735-a3c8-1401f7b9e935","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":201,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"936f546a-0674-4b4b-88c7-af408fbe361f","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":201,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"39f72b4c-ae48-4ef3-80af-af6ea9750df7","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":201,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"c3fdde70-f5ec-4185-99c2-f0da0403148f","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":201,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"2573c7b6-cf5b-4b11-b4cc-c48bbc351211","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":201,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"8d7d18b4-a4f3-43fb-80bc-cc0a39061cd5","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":201,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"95ae2a80-bef0-465d-be3e-19f86729cc60","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":201,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"037a4ac3-65cc-4ce5-b795-b5d449fe6ca3","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":201,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"61c9c16a-c27f-4f46-ba49-a80494667059","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":201,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"dbc84ce1-13e3-4164-ae0d-87f370e6b05a","block_type":"box","text":"i.e.","page_number":201,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"b3e8f25d-d0fa-4bc3-8432-a2179cd9c36f","block_type":"box","text":", one in which global","page_number":201,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"7a485ce9-f26a-4c2f-89f0-329696a2e811","block_type":"box","text":"temperature rise is limited to 1.5°C above pre-industrial levels. In addition, clients in separately managed accounts","page_number":201,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"c48a163b-8b39-4ced-8cd1-70c61bd4b366","block_type":"box","text":"may instruct BlackRock to apply these guidelines to their holdings. Both in the case of funds and separately managed","page_number":201,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"3176b61c-5e9e-4931-bbaa-2bd37c62d9cd","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":201,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"c74d0f4f-0d16-40d8-9255-78ccb77981ba","block_type":"box","text":"client.","page_number":201,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"028233c3-677f-42f0-b929-ff04afd49684","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":201,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"80da5231-445f-44bb-9120-3714cfd6d783","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":201,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"0cedc6e0-ea15-41eb-8850-d2a84a63c441","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":201,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"9d372f37-7224-4568-9f9c-7475a8328256","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":201,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"928235b2-bc72-444d-bebf-33e412a2a4e0","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":201,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"afebe58d-3022-4877-8310-9281105bd75a","block_type":"box","text":"include an explanation of the decarbonization scenarios a company is using in its near- and long-term planning, as","page_number":201,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"50de18b7-5763-4692-943d-0cca42dce0d1","block_type":"box","text":"well as its scope 1, scope 2 and material scope 3 greenhouse gas (GHG) emissions and reduction targets for scope","page_number":201,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"8a2537bf-9800-44f0-a362-3a8b75882048","block_type":"box","text":"1 and 2 emissions.","page_number":201,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"391e0630-94f7-41f1-8dab-63a5bd8addfc","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":201,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"7431b9fd-d50f-40d9-9097-11caced2bbdc","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":201,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"02e866ec-df5a-4381-9abd-6b1da39af4bc","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":201,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"f7ed63b1-1be7-48c3-bbd6-fd075c43391e","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":201,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"0ee4d905-1180-49d6-915e-90527c1e6f82","block_type":"box","text":"11","page_number":201,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"a0191439-9e81-4505-86bb-3cc73763f0bf","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":201,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"7c1dcf8e-0dc9-4568-a409-62b7964abeca","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":201,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"bbd20ff4-564a-4ef1-9214-8f2eeb852ccc","block_type":"box","text":"issues include, but are not limited to, water use, land use, waste management, and climate risk. Examples of social","page_number":201,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"c99cfb44-d18d-4eb7-bb1f-2f424cb9a1e6","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":201,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"34cf6b37-4f48-4a61-a8a9-935183b1ac08","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":201,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"c45f8002-4396-4812-94dd-5efc9abba2b5","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":201,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"56398def-54cc-4aee-a416-82efcaa9880d","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":201,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"cd3256de-8b3c-4818-aa9a-c48ca42572e1","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":201,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"a80a8191-5255-498c-9b6f-0790e56b1db1","block_type":"box","text":"sound governance framework.","page_number":201,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"3ecb6c0c-68e7-4630-b5bb-c2771dd4c62e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b369e073-c89b-425d-b83b-026d0aa1bd14","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":201,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"f8192111-21e0-470a-b7e6-1d00b400d2b5","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ddd50634-3f66-4ac9-9850-9a3c2c9084ea","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":202,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"4131443f-6ff0-4934-8f93-15d4afcc8869","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":202,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"131c137b-ef76-46e4-83ec-fd3ce3228b4e","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":202,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"b6e14c2b-63ef-414d-ac19-874ceda8a34f","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":202,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"be142865-2882-4655-a67e-6857e81a1f58","block_type":"box","text":"their investment mandate and fund objectives. For the funds and accounts in scope, voting on matters not related to","page_number":202,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"23e4e062-5538-4ed2-b5b2-62ccd992b368","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":202,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"68fa9393-eb75-4cc0-ad69-a0e86c4b8f62","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e79d4bb0-e4a3-4996-8051-9faefc942d61","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":202,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"961b3c56-5040-410f-bf0a-6a958a87e0cd","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3b3e6d52-ab54-4bff-875f-3656756408a6","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":203,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"819d01ab-1b77-453c-8f02-6c7b49ed31f5","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":203,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"0cd86313-2a5c-442b-a7b0-add309acb41a","block_type":"box","text":"Oversight","page_number":203,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"c5c94303-6ccf-4440-8d6c-28316418d178","block_type":"box","text":"The Global Head of BAIS has primary oversight of and responsibility for the team’s activities, including voting in","page_number":203,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"bf78fbd3-8022-4a56-b137-e87c41b7753b","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":203,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"8376a749-4e70-4556-bb44-0ad1ee350314","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":203,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"00490721-ad18-43f8-99ed-b0e4c5828860","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":203,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"1ca538b1-bd69-4a32-a8e5-c8d75b1a83a4","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":203,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"db8eaa88-e80d-4e41-ab5f-770e2fcde29d","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":203,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"c61f6d30-c155-48a3-b556-045f6b08baf7","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":203,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"a9d4a03c-44a8-4bc7-a810-4058489ecb35","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":203,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"f5b01143-a94d-4ab2-8b8e-c7c523726b3a","block_type":"box","text":"to BAIS’ policies and practices. It does not determine voting decisions, which are the responsibility of BAIS and the","page_number":203,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"5ae097d2-abbf-46a7-9f0d-9c8589519486","block_type":"box","text":"relevant active equity investors.","page_number":203,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"c32c684a-87e4-44d9-a187-3d242b9e3dc5","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":203,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"e6ace229-7dc0-4853-ae60-bf476cc77c50","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":203,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"1c5b8271-91d9-450c-9a2c-977ab40513ba","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":203,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"2afd9073-06b3-45ea-a16d-10b52adc6c53","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":203,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"456e99e4-fdaf-47f3-a144-2d43b15fcf7e","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":203,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"a8c1f779-66cb-43f5-8f7c-be5f38732049","block_type":"box","text":"third-par ty vote services providers” below).","page_number":203,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"3428ee94-a7b9-483a-9460-b066be16d29a","block_type":"box","text":"Voting guidelines and vote execution","page_number":203,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"623755b4-7f4e-47fc-b164-b99ce42fc25c","block_type":"box","text":"BlackRock votes on proxy issues when our clients authorize us to do so. We carefully consider the voting items","page_number":203,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"6b6b00f3-2d36-450f-9531-b11f2dc95841","block_type":"box","text":"submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have voting authority. BlackRock votes","page_number":203,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"fbb17ce8-48d9-45f5-9997-fc5c266ca4d8","block_type":"box","text":"(or refrains from voting) for each Fund for which we have voting authority based on our evaluation of the alignment of","page_number":203,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"f4091cbf-f9eb-42dd-95cf-41566e1e4d8f","block_type":"box","text":"the voting items with the long-term economic interests of our clients, in the exercise of our independent business","page_number":203,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"55d73cb1-3b02-4ca4-935b-491b5e372be4","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":203,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"c21e0be3-64bc-4cf1-ac5c-3b7128dc5fec","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":203,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"c3fe506f-aec7-479d-861a-da215f5c73b5","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":203,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"4311f6c4-17c1-4420-87df-361ff10ea10e","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":203,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"f3283436-df55-4cbd-bdb3-683edf64410f","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":203,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"730ac74f-1670-48e5-bb15-6191d028771d","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":203,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"d47018c7-b54b-40cf-8e8f-fe6e8805bd8a","block_type":"box","text":"The Guidelines are not intended to be exhaustive. BAIS applies the Guidelines on a case-by-case basis, in the","page_number":203,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"54661641-17ae-40e9-bdb9-ac17dad2ad80","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":203,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"2e06b4a2-d5d8-494b-8c79-8f365d309661","block_type":"box","text":"do not indicate how BAIS will vote in every instance. Rather, they reflect our view about corporate governance issues","page_number":203,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"83984ed4-ad2a-4dee-924c-98c1a49c91fa","block_type":"box","text":"generally, and provide insight into how we typically approach issues that are commonly put to a shareholder vote. The","page_number":203,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"d6ca4604-bb3f-45a4-b8fd-8458189883ad","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":203,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"b7378f47-bb31-4c6f-96be-ebe7329be232","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":203,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"b341c0ed-594e-4040-946e-3c5cc7ec179b","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":203,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"cfa0aed7-b9f8-4b3b-bf7d-1ad6ad99eec2","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":203,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"7c44cbd1-b08a-4023-8560-6a83873f4cde","block_type":"box","text":"well as the desirability of voting such proxies. These issues include, but are not limited to: i) untimely notice of","page_number":203,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"3044e7d8-274a-4c9e-87b5-0350b1578529","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":203,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"8ef78238-c742-438f-a633-ba99c7055051","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":203,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"fd0c286f-4580-4a50-92ca-fd77274c21ee","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":203,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"9d45a705-4adf-4505-8093-1a0f16fd47f1","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":203,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"c1bcb39a-c690-4f33-bb9b-1e997f9e8003","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to the","page_number":203,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"efd8920b-98f4-47bb-a3d5-2089c8384696","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":203,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"0a4fcd2b-fd9e-4825-8d12-c3f3ecf8c06d","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-effor ts” basis. In addition, BAIS may determine that it is","page_number":203,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"3b6d06f3-573d-4cbf-85e8-cb74cbb4004c","block_type":"box","text":"generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs","page_number":203,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"2fbe7c4c-5256-46da-bca0-f6d7ca691ade","block_type":"box","text":"(including but not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising","page_number":203,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"3abeca94-aba7-4572-b07e-a0158b2e120d","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":203,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"520d5ea2-5485-4693-9d8f-2f3162e63566","block_type":"box","text":"Voting Choice","page_number":203,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"75a85865-c7a0-4be1-9923-9ee1a0fb7bff","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":203,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"1f3fa072-e7df-4097-b3e7-75df9a8156f4","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":203,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"882f4a3d-d729-4cdc-a3f8-0f4d3fad6c99","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"87b22829-6994-45b3-bbd0-d4451621223a","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"f9217161-7808-4540-aeb5-7bfd86ecae3b","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f70b9ec5-e725-4ba5-bc3f-40fab6b39451","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":204,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"2c6c7b2f-10f0-41da-aa70-f1ad79d60303","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":204,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"b62d20fc-7f18-446c-95bc-b9d9855316f1","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":204,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"05eb927e-4a72-4f32-8cd3-19a7d56dc3fe","block_type":"box","text":"strategies.","page_number":204,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"fe597af8-b6a2-4685-8990-a4cf5d8e8bd4","block_type":"box","text":"12","page_number":204,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"123db915-bada-4d1b-b6e9-dbec527d48e5","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":204,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"91b2e407-2623-44bf-bd46-171b4148fba0","block_type":"box","text":"on whether our clients have authorized BAIS to vote on their behalf, have authorized BlackRock to vote in accordance","page_number":204,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"4b076ad2-4f59-471e-b438-48a9ac0ae0e0","block_type":"box","text":"with a third-par ty policy, or have elected to vote shares in accordance with their own policy. 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Reliance upon this information is","page_number":206,"box":{"x":68,"y":822,"width":823,"height":11}},{"id":"f6366b6f-4349-498b-b9fd-1e82657eaa6c","block_type":"box","text":"at the sole discretion of the reader.","page_number":206,"box":{"x":69,"y":837,"width":250,"height":9}},{"id":"3492b418-176c-48ec-83e6-ad983bb23df7","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":206,"box":{"x":69,"y":868,"width":196,"height":10}},{"id":"02e233d0-f5e6-40c2-a243-d79fd45aedbf","block_type":"box","text":"©","page_number":206,"box":{"x":68,"y":898,"width":6,"height":4}},{"id":"d46e76d4-9704-47a4-8a62-b8f48d48a02b","block_type":"box","text":"2025 BlackRock, Inc. All rights reserved. BLACKROCK is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":206,"box":{"x":75,"y":898,"width":809,"height":11}},{"id":"bc323613-c419-481c-adaf-f44282a904e6","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":206,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"8aa74369-f85b-4112-80ff-b28f7bdad65b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"517c2537-2e8c-4d96-8a0c-999f6c06f3f3","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":206,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"c12a743d-e70f-4f57-a335-378b46806455","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":206,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4f3b929b-1f7b-4d4a-898b-22cd10d47609","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":207,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"20397ddf-ba64-443b-b479-96a96903049f","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund 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Funds","page_number":207,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"0b9301fe-7a25-4a19-9515-5ace5c17c12e","block_type":"box","text":"□","page_number":207,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"44e4fa4d-5fdc-4567-8b22-80b608dbf848","block_type":"box","text":"Other","page_number":207,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"1acd78bc-1775-4f9c-b425-8b0b56756dd7","block_type":"box","text":"Objective and Scope","page_number":207,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"85a894c2-81c8-4dc1-9c1d-3eebac12e6b3","block_type":"box","text":"Set for th below is the Index Equity Fund Proxy Voting Policy.","page_number":207,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"e73e593a-2f9f-4eae-b00a-ecde745d4f27","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":207,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"617ff2ab-2e23-46d6-85ba-590fbed8646d","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of cer tain open-end funds (the “Funds”) advised by","page_number":207,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"92669a44-520a-4af7-96af-efea1638bcf1","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":207,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"1f8d3918-af3f-416c-8176-733a10106d2d","block_type":"box","text":"voting proxies relating to por tfolio securities of the Funds, and have determined that it is in the best interests of","page_number":207,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"e2e9fed4-3805-4661-81c7-dd952293b082","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":207,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"61ecd7e7-c74e-452d-bc54-071da3e26d7a","block_type":"box","text":"principles outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":207,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"b3052b33-70d3-4323-a41f-874d291d4213","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":207,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"15b542e5-9f78-4914-a841-e3542ffdaafe","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":207,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"7fcccab4-c396-4e5c-9c6b-32fb62202461","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":207,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"ba9b41d4-ef50-42c5-8293-872dc2d389d8","block_type":"box","text":"the iShares Core S&P 500 ETF. In addition, BlackRock has adopted guidelines and procedures (as from time to","page_number":207,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"b251e4a3-4490-4134-a4d9-fb86cf94af71","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":207,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"cafae220-9bc0-433a-81e9-a20ad4d9a779","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":207,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"71c8157c-4076-4c61-8e55-ec0b989c8ecf","block_type":"box","text":"Appendix A.","page_number":207,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"c0e1057d-2f60-4d52-babf-e79e11998e21","block_type":"box","text":"BlackRock will cast votes on behalf of each of the Funds covered by this policy on specific proxy issues in","page_number":207,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"46c9c197-758c-49e7-8cd8-e521dc8112f6","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines and","page_number":207,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"6a3789a6-207d-46da-b9ff-9e9c11f3441e","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":207,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"63ad4fe4-979d-45be-b96a-420769d17d88","block_type":"box","text":"Conflicts Management","page_number":207,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"cde0e61f-7162-4966-85fe-c102a48c1ed0","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":207,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"3b0abf82-87bd-4123-af61-5bca91c14b14","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":207,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"e493917b-46fd-49d4-a0eb-9c1bbd241823","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":207,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"839404f3-3bc7-4e12-a97e-3b7e92a943f1","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":207,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"d8338190-b418-4c72-98c7-81eced6c6e5a","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":207,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"be5360af-d6a5-47cd-bcf2-706101767ba7","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":207,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"558dbcb6-3fe8-41ff-98f2-c0be6cf2dc91","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":207,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"1bdd44dd-e704-4f79-8eae-eecbb7b888d6","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":207,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"ad3993a9-dbbf-4697-aa36-5f26efd1b138","block_type":"box","text":"recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":207,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"cc2ea65e-136f-4131-b161-380a0c0aa33c","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":207,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"01c05bb3-67ff-4c3b-9308-868f15e0fe35","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":207,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"611b1cef-d1fa-430c-a54a-6a14b4663372","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":207,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"5c5ba78a-3c7f-41d5-976d-c76f7562275b","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":207,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"1656c290-394a-48e2-9430-8aa9c99183f5","block_type":"box","text":"connection with proxy voting.","page_number":207,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"d817f831-56b6-4ada-b808-f2ef550af872","block_type":"box","text":"Reports to the Board","page_number":207,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"524b7f61-2ab0-4c4d-b930-17928e85b8ed","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":207,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"cbbe4cc7-9833-4130-85f4-4de447e406c4","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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Reporting on our activities to inform clients","page_number":211,"box":{"x":69,"y":292,"width":351,"height":11}},{"id":"9b21a7d5-a0af-4d8b-9087-7442fc07c73b","block_type":"box","text":"about our stewardship effor ts on their behalf through a range of","page_number":211,"box":{"x":426,"y":292,"width":457,"height":11}},{"id":"4e1a4e8c-a21e-4247-8036-d8ce6e2a1a65","block_type":"box","text":"publications on our website and direct client communications.","page_number":211,"box":{"x":102,"y":307,"width":439,"height":11}},{"id":"5410a40a-4829-43b2-808b-b2ae97459158","block_type":"box","text":"This document provides an overarching explanation of the principles that guide our approach to engaging and","page_number":211,"box":{"x":101,"y":329,"width":778,"height":12}},{"id":"6a6f6471-ea49-4819-91a1-61c6c843a9f3","block_type":"box","text":"voting on corporate governance matters and other material risks and oppor tunities under BIS’ Benchmark Policies.","page_number":211,"box":{"x":68,"y":345,"width":817,"height":11}},{"id":"136ac3ac-667c-4b7b-a9cd-615af205a040","block_type":"box","text":"The BIS Benchmark Policies – which are comprised of the BIS Global Principles, regional voting guidelines, and","page_number":211,"box":{"x":68,"y":360,"width":790,"height":11}},{"id":"6b241316-bd1a-49d1-82bc-b5fc2baf6c14","block_type":"box","text":"Engagement Priorities – apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":211,"box":{"x":70,"y":375,"width":829,"height":11}},{"id":"bd169d54-b853-4219-9809-62b81d1558af","block_type":"box","text":"based approach, and are focused solely on advancing clients’ long-term financial interests.","page_number":211,"box":{"x":69,"y":390,"width":648,"height":11}},{"id":"ad4d9a09-6657-4e51-a35b-549a3a1f33d6","block_type":"box","text":"2","page_number":211,"box":{"x":718,"y":390,"width":4,"height":5}},{"id":"22c83706-ab36-4bd3-aac5-aeaafc4ffba7","block_type":"box","text":"PHILOSOPHY ON INVESTMENT STEWARDSHIP","page_number":211,"box":{"x":321,"y":420,"width":337,"height":9}},{"id":"2010ebf7-febf-47a3-96a2-f15727d16efa","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":211,"box":{"x":69,"y":526,"width":840,"height":11}},{"id":"48ef3445-2180-4290-939e-7fa6e59f0d89","block_type":"box","text":"understand how corporate leadership is managing material risks and capitalizing on oppor tunities to help protect and","page_number":211,"box":{"x":69,"y":541,"width":835,"height":11}},{"id":"fd30bd35-692e-415e-9d2f-aa3ac3c41158","block_type":"box","text":"enhance the company’s ability to deliver long-term financial returns.","page_number":211,"box":{"x":69,"y":556,"width":481,"height":11}},{"id":"2f5a3a8c-a3d3-40e8-973a-6823bfe0273d","block_type":"box","text":"STEWARDSHIP IN PRACTICE","page_number":211,"box":{"x":384,"y":586,"width":210,"height":9}},{"id":"5e6c3f85-e3ac-456d-b213-fb1f5fb8d09c","block_type":"box","text":"The assets BlackRock manages belong to our clients, which include public and private pension plans, insurers,","page_number":211,"box":{"x":101,"y":609,"width":791,"height":11}},{"id":"bfff7c77-d7b8-4b2d-a27a-8bd099f640e3","block_type":"box","text":"official institutions, endowments, universities, charities, family offices, wealth managers, and ultimately, the","page_number":211,"box":{"x":69,"y":624,"width":772,"height":11}},{"id":"ced81a02-2cbd-451f-90da-360dcb06d96a","block_type":"box","text":"individual investors that they serve. 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Engagements provide companies with the","page_number":211,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"bc91d0a6-6da6-430b-a107-f10757e6a727","block_type":"box","text":"oppor tunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":211,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"fdb95b8f-ae9e-4e1c-9110-f455eddde035","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":211,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"3443f786-5244-48a9-adec-32b840f55ed6","block_type":"box","text":"1","page_number":211,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"ccfdeb9e-1555-4abf-8b24-ce27e5430cc9","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":211,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"3bad9d52-27b4-4f58-9ebd-1c4cf84704c5","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":211,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"5b956216-1e6f-435a-87a9-fd1302fe3261","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":211,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"aeacd05c-de88-4c61-8089-d15f8648ea8f","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":211,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"c476517d-c36b-4d42-bfe5-f68ced404572","block_type":"box","text":"2","page_number":211,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"0998e367-375d-4f4a-bfd1-cdd6345ef04a","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":211,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"9f785113-d30b-4650-a538-91bfffb75624","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":211,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"749783bb-ecf3-43ec-823a-0d8ebcd954ac","block_type":"box","text":"material business risk or oppor tunity.","page_number":211,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"d3991fdb-6366-48e9-ba32-c98364f70977","block_type":"box","text":"BlackRock Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d2476ec2-acae-4381-a438-42f4f5f7a3c8","block_type":"box","text":"Global Principles | 3","page_number":211,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"0f9af096-2c77-401c-8cd0-84da0c6009be","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":211,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1b793374-2a7d-4758-b3ee-46619c233ba9","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":212,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"f50e0e65-1b74-43e8-8169-2f05085ff923","block_type":"box","text":"governance. As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":212,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"27808670-3451-49b0-832f-e920a5e51b07","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":212,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"2304698c-2b7c-41e4-903e-8d6a1cd0acdd","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":212,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"7c5a8a7c-fd6c-4471-8def-e9eea0a023ce","block_type":"box","text":"judgment of what is in the long-term financial interests of clients. 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These are topics that shareholders may have","page_number":212,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"65d03ddc-2499-4151-9377-6fbf1a2b072b","block_type":"box","text":"the ability to vote on at shareholder meetings. 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Our regional voting guidelines explain how the BIS Global","page_number":212,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"7ce09c07-0280-40df-b667-9cca922d307a","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":212,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"43f2d139-3419-4839-8f71-e073546908ba","block_type":"box","text":"4","page_number":212,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"afc1d999-45ee-486a-95f3-c7e7a69b52a7","block_type":"box","text":"3","page_number":212,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"d7a88a3c-fd4d-4df8-b4c5-98025de5bfa5","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":212,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"334091ac-e368-4d02-9342-88828a84854b","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":212,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"2d9f3d57-3fb2-4892-b210-16b9871d6b32","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":212,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"9971f8ce-304f-457f-977e-57203495a779","block_type":"box","text":"4","page_number":212,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"b5db5b81-dcb8-4e80-b7cf-1254b9fd2046","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":212,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"c11d9bd5-8a7d-435b-b22b-412306755c5b","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":212,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"c6a0c508-bb14-4acf-9222-a1f9b8f1d971","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":212,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"0332d765-6be8-4bb5-973a-0f813d0e6ada","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":212,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"829401ff-6765-4d74-930a-83ec984841ec","block_type":"box","text":"guidelines.","page_number":212,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"909b7f87-a1fe-4c39-b9b1-d2a4448efa7e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ea406ac1-75bd-4f2d-9600-a07eb9e1e518","block_type":"box","text":"Global Principles | 4","page_number":212,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"01f491ae-2090-4757-86e1-c948b09ecc5b","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":212,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6eb12f84-fd97-4f08-8a26-0518243081b5","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":213,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"839324a1-1b06-4053-a7f3-9b0fdd2c2a30","block_type":"box","text":"Oversight role of the board","page_number":213,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"e11bd65f-bc1a-4b57-b53a-518e16c630f9","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":213,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"91f457b1-615a-49b0-9a16-d6f95140da99","block_type":"box","text":"characteristics relevant to a company’s business enhance the board’s ability to add long-term financial value and","page_number":213,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"549e5cdc-f502-428c-8b72-dee7d84755ec","block_type":"box","text":"serve as the voice of shareholders in board discussions. In our view, a strong board gives a company a competitive","page_number":213,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"4ae64c46-5cc5-4552-911b-e70a2159c0ed","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":213,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"0b9b40e8-552e-41d5-b9a1-cdd8d26d9cd3","block_type":"box","text":"long-term financial per formance.","page_number":213,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"3fa5bbee-ce07-4e3b-886a-32b1585e8f0c","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":213,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"843bb5ee-26d0-4d4d-94c5-d5a3abad0191","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":213,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"1680089b-92b2-4c6a-b418-1ba186d5ce90","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":213,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"7fe5f162-4536-4fc3-8bf0-c205176cb671","block_type":"box","text":"the business environment in which a company is operating.","page_number":213,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"7784f205-005d-4ecd-9f96-37f3407b8935","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":213,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"615301fc-620b-4a2c-8fc2-c35ab734ba5d","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":213,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"64089a94-c5bd-4fe2-8166-873a72bc9965","block_type":"box","text":"long-term financial interests of investors. This includes having clear descriptions of the role of the board and the","page_number":213,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"090ac753-0597-4dd3-8322-4a61b5b8aaf6","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":213,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"92afe023-c1c5-4c77-bf88-df21d41677dd","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":213,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"170c0f9e-e08e-4f3f-bbc4-7a2ffd0b777b","block_type":"box","text":"mitigating such risks.","page_number":213,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"981100a3-e68e-4dbc-a3db-40d5fc1bc4e5","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":213,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"ca6c17be-40fc-44a8-91a4-3ab190999d62","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":213,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"39627e26-8fb0-47f2-b6d3-7547bbf9e3c7","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":213,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"547e85db-4115-4a57-8292-0b9775b85b34","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":213,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"6cb51211-1159-4338-86d7-9dbd8d421b8b","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":213,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"c3b064bc-c69b-4796-ae73-020116c67329","block_type":"box","text":"strategy.","page_number":213,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"5880a955-9fb4-49ab-a21b-ecfdf04fb3b7","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":213,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"f6c536c7-6321-45aa-82ea-af3aab6dbda2","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":213,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"4aa7339e-0f86-4d92-98d1-324c501ce400","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":213,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"3beca08f-8be3-4282-9b57-4b005f084ad6","block_type":"box","text":"When casting vote decisions on behalf of clients on the election of directors, some of the factors that speak to","page_number":213,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"63f79ada-c305-478a-9929-e56fa4a7f066","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":213,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"93178916-fe20-4893-af85-4a66e2ee89a0","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":213,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"f952ff9d-8896-4ff3-8d87-95d072942cd7","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":213,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"25a9694d-f91b-4864-b73c-71430664c62e","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":213,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"4c3b3c19-eac4-431a-b582-dd548778ea47","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":213,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"cafc0042-4bbb-493b-bdcc-34a341260dbf","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":213,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"f8210d55-a41d-45d4-9b9f-30f629e98544","block_type":"box","text":"Regular accountability through director elections","page_number":213,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"0fb49011-9a5c-4a20-b3b8-31a4d6b6963c","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":213,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"e5c575f9-4c49-4678-9d11-7539c61e6004","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":213,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"5709d502-154f-4bc6-9fc5-0e9461f34f6e","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":213,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"ef0f0b1f-1187-468a-9c88-6854b2705910","block_type":"box","text":"5","page_number":213,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"4984a972-bfda-4e04-9377-98d0f88bfa0e","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":213,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"3c4e73fc-e32a-4851-a06c-e2c340cc18e2","block_type":"box","text":"decisions in a timely manner. When board members are not elected annually, we consider it good practice for boards","page_number":213,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"2f9d0328-9c50-4850-8f17-65b09c321af9","block_type":"box","text":"to have a rotation policy to ensure that, through a board cycle, all directors have had their appointment re-confirmed,","page_number":213,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"dda48d95-9f59-4b38-be76-f835e5a2e2ed","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":213,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"5a11284f-e85d-4370-8d75-64e2d914744c","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":213,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"03f4730a-e138-44bb-9bc6-af41090b6a06","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":213,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"ccce0c6d-c987-4150-a727-370c1797cd18","block_type":"box","text":"developments in the company’s strategy and the market environment. In our view, it is beneficial for new directors to","page_number":213,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"ec66cad7-589b-47a9-ab37-831906737b3f","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":213,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"556559c4-031c-4de3-b385-bd1e94d0b144","block_type":"box","text":"5","page_number":213,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"6357f7c2-a288-4332-b5d4-d87004547f9a","block_type":"box","text":"In most markets, directors stand for re-election on an annual or triennial basis, as determined by corporate law,","page_number":213,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"ba349875-b517-4fca-936d-f66647c45f08","block_type":"box","text":"market regulation or voluntary best practice.","page_number":213,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"fde9ce1b-d817-4774-bbed-aa9abd2e229f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"adba296a-f197-4763-9154-6a9e3bc5dc4b","block_type":"box","text":"Global Principles | 5","page_number":213,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"5c695227-d9e4-4601-a1cc-d0c2ffe5f22b","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":213,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f884d98f-aef8-42d1-b3dc-432598746274","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":214,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"bcb096e5-e8d0-461d-8a59-2f6326d62080","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":214,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"929b1624-2ff0-4822-9a7e-7dc05e0db5b3","block_type":"box","text":"recently.","page_number":214,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"86db6c63-0317-4195-b523-b5c406c3d735","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":214,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"a6a4178e-dfe1-4bbb-8cd5-6faf0dc08254","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":214,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"6a0d4794-44cc-4995-9650-fb2cad8daa41","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":214,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"5bc97126-b475-40ef-9a25-bed3ab1f6e5e","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":214,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"bdee1aa4-79e7-4261-8172-3f32c7185a09","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":214,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"59f4373b-177c-4d99-b077-ce26befa3d3f","block_type":"box","text":"Director independence","page_number":214,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"8fae2247-2b59-4fe1-b1ba-e05edae7fd39","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":214,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"c1ff5788-3dee-495b-be85-aff546755ad8","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":214,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"4313e3f2-a855-4247-bdbc-ee279897081e","block_type":"box","text":"6","page_number":214,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"580c6e76-cbbd-43f7-b6b7-2fd7709dd2fc","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":214,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"9490e0ea-9de7-4ff5-9f90-96b0619a0f28","block_type":"box","text":"directors, free from conflicts of interest or undue influence, to ensure objectivity in the decision-making of the board","page_number":214,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"bc032814-b6ac-4c51-a215-c8306d75cb40","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":214,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"d73a2337-e013-4c40-a07a-9b678ced5cb4","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":214,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"c1a9082b-13da-49c9-99ae-3d0d36061b58","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":214,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"14c50a82-3353-4695-a430-1809f84a36a9","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"c674461f-de07-4b16-9af3-14da9076e7bd","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":214,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"f6e53815-f993-45d5-ae55-b5d0a5ba5a69","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"f4b4e917-da39-4717-a746-720e592aaf98","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":214,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"da357e62-632c-41ba-85c5-62384ae7654c","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"30f3584d-6c0b-4d7b-aefe-8b0d1aa86f8f","block_type":"box","text":"Interlocking directorates","page_number":214,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"589c15ff-2d92-4c68-ab87-c93cf5a14053","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"7bb01958-c14e-48fb-9138-be783733020b","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":214,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"45cce525-422f-4cec-beab-ed6ca5d1ef00","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":214,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"cbff2156-9018-4089-8c2c-4bdc6ed177d0","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":214,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"85a50173-e9c1-4faa-9850-2b52df2ad56d","block_type":"box","text":"independent board leader. This director may chair the board, or, where the chair is also the CEO (or is otherwise not","page_number":214,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"9ffe4a86-c97b-418c-ae45-3381a105d2cc","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":214,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"b0ac1708-7198-4fdd-8f0d-097fd1c313da","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":214,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"3f7c6656-80cd-413a-a1ea-ecd780d28412","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":214,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"4442daad-5f24-4944-a367-4f08664d5cdf","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":214,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"b449f1de-ecb9-45d0-b468-3720ab94e3e0","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":214,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"d97c21d6-0850-4f98-aa58-b7e2b2dd7904","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":214,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"0e632b8f-1493-4ae8-b3ea-0c2475ff5a02","block_type":"box","text":"require additional focus. It is our view that objective oversight of such matters is best achieved when the board forms","page_number":214,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"740fc1c5-f98c-458f-bc3f-759466345cca","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":214,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"b0712369-ec83-43b0-93ba-a79612b2909d","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":214,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"880ba18a-f0f2-4471-a352-0fe8760e18ac","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":214,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"3aa60e20-f99a-4e7d-88f6-e5506fb3b7cc","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":214,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"77daea28-0b72-45c2-9150-f7d6f15245f3","block_type":"box","text":"Sufficient capacity","page_number":214,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"70f0e3e4-2f36-4b70-b279-91080a1b9841","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":214,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"3ffe51f9-968f-4afa-88b1-8892ee5caa67","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":214,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"bb35dcf0-5dda-4c81-86ca-ff07dc738356","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":214,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"d29f4f04-6fd2-4a62-92eb-7c56b7e3e4a4","block_type":"box","text":"practice when they don’t take on an excessive number of roles that would impair their ability to fulfill their duties.","page_number":214,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"00ddf531-1629-4324-8c13-446274672df0","block_type":"box","text":"Board composition","page_number":214,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"412e78ea-3b7d-4e43-8fdf-4176ac47cf6b","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":214,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"c50e1d42-7d6f-456e-8c88-eddab55175d9","block_type":"box","text":"capitalization, and ownership structure, as well as the market in which the company operates. We find it helpful when","page_number":214,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"a0f2d73d-11ec-4258-9954-83c466c16347","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":214,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"bac9f1ad-f94a-46a0-919b-a4083972032f","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":214,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"fa2787da-34ad-4f93-b2f4-a725a8ddab66","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":214,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"654fe3aa-7dd2-4d01-9b10-5190d55b769c","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":214,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"9f4c8d3e-4352-40c7-9cbe-a0c48380bdbe","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":214,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"840068ee-16ad-46c5-9f13-2c1ac8609ece","block_type":"box","text":"6","page_number":214,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"b099d209-caef-4e26-a060-f9347a8304ec","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":214,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"e8287b12-0329-434d-8942-b2c1272f8e28","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":214,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"b6db6840-9e95-442d-be19-bcc318b78483","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"b4f59c2f-1460-4f9f-8ef1-b432e0f35849","block_type":"box","text":"Global Principles | 6","page_number":214,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"5c2cd53a-ff65-4eef-9e83-7126572b01a7","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":214,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0dd6ca3e-cba2-4956-8f91-049e67bff2f5","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":215,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"d282f03a-18f0-4c97-a564-59e688a1edf5","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":215,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"1e636bf5-6934-4d07-9b7f-0074cc7919d9","block_type":"box","text":"It is in this context that we are interested in a variety of experiences, perspectives, and skillsets in the board","page_number":215,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"3ec4571d-dddd-4170-995a-c40f71fe4cf9","block_type":"box","text":"room. We see it as a means of avoiding “group think” in the board’s exercise of its responsibilities to advise and","page_number":215,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"1a5abdf4-5690-4b19-b2d5-267d4093ffe1","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":215,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"27655c9c-3a29-4cdf-8437-c54e77f2ba58","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":215,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"43a0d20c-2d56-4147-8d48-349e5cdaec73","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":215,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"7b3e1b98-b856-4e07-8745-850277a11327","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":215,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"5eb5aee8-c3b6-4c69-b422-d3661b880e0a","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":215,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"fb1e44ac-c92d-4b2a-8e53-1f8c3e660645","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":215,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"b6e05ee4-2e18-417c-b9d8-850444958cfb","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":215,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"59d2cf90-fdaf-4351-9c9f-33ea7307d0bf","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":215,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"82c38595-29c1-4c22-96ab-5b3e7d614cc9","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":215,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"94a692ed-0210-4dd3-8317-aac007a3a36a","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":215,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"f2763edd-dd7a-42cb-aba1-3744e58589d3","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":215,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"ea3b4cae-e759-4dc5-9427-a6777deb444f","block_type":"box","text":"systems.","page_number":215,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"63c826dd-afc4-4d4c-b0b0-bc4048db22be","block_type":"box","text":"7","page_number":215,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"2d50f81e-8562-4dd7-9cd2-37ecab6b3813","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":215,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"61dc2ccd-91b3-4f7e-bc4d-a74201540355","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":215,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"bde2cd43-491e-4983-be81-4cfa6f84a69f","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":215,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"5769e01f-18ed-4c55-8a8e-e2213594cd5e","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":215,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"6f9e89d7-31a3-4881-96d1-99c06bf7c3fa","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":215,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"90760798-d202-4f99-a7ae-7e761aff9cc4","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":215,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"b9716243-c40d-44e4-8b97-60c6dcee23bc","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":215,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"1666dc5e-ec3d-43ac-8674-54e84cb30f4d","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":215,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"575f3648-f12e-40b7-bb02-3963eb29900f","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":215,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"396bc92f-cbad-495c-9613-1a072f5c2ffe","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":215,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"67ec64f5-cbbe-4e0b-b746-57261d521b6e","block_type":"box","text":"or internal audit function.","page_number":215,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"966c5c02-b3c1-41fc-b4bd-5a676a8e1d85","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":215,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"484a1cb2-8564-49e8-84d5-83fe24966f04","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":215,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"b4e9030f-ca1c-42af-922a-d2a6ea6ad342","block_type":"box","text":"and are seen to be, independent. Where an audit firm provides services to the company in addition to the audit, we","page_number":215,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"d8e21039-a3ed-4d30-a71f-a0cb57a49ccd","block_type":"box","text":"look for the fees earned to be disclosed and explained. We look for audit committees to have in place a procedure for","page_number":215,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"0c0abc2d-b177-4593-9565-638c992563bd","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":215,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"fd0d6cf7-7d88-44ec-84a4-5c0dccee6bfe","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":215,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"d78d649d-4260-48a4-9d22-e04266759e9b","block_type":"box","text":"management practices and, more broadly, the quality of the board’s oversight. We look to the audit or risk committee","page_number":215,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"3801dbe1-151c-43e1-bf0e-eceb99114f8a","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":215,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"afe1081a-7b31-4cc8-9980-96f6ba84367d","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":215,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"d2bcd0e2-3c7f-4127-85d7-33233093c78d","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":215,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"126e3989-ed99-4fe1-8dcd-0461260e2e34","block_type":"box","text":"risk.","page_number":215,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"4845a6e1-5eda-4c63-837e-2cf0e2bd5d01","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":215,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"bf6d4508-6761-4fbb-baf5-b6209bd3251a","block_type":"box","text":"The capital structure of a company is critical to shareholders as it impacts the value of their investment and the","page_number":215,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"e63e8961-49eb-4c5b-9995-be0cc071a079","block_type":"box","text":"priority of their interest in the company relative to that of other equity or debt investors. Pre-emptive rights are a key","page_number":215,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"d64bd7f7-2de0-4854-8682-99cebfbedb73","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":215,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"618c95b6-1bcc-4180-9051-f5d2ada2f3d1","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":215,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"30d2065b-b19c-4fe6-af65-21ba16bac788","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":215,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"aff4e779-1050-447f-aa39-85cdf669b61d","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":215,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"6e1dda48-6704-4cc1-bc4e-554a5197cdee","block_type":"box","text":"7","page_number":215,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"11017c63-1a67-4579-a6ed-3c282a6e83b4","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":215,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"18a89931-0ee7-4d09-9bc5-f58f643c6793","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":215,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"ced6d60c-3219-46cb-871a-f1e0364426b6","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":215,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"b719df8b-e862-4652-a00f-78975dcd6471","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":215,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"f9a1217c-ee5a-4318-9e49-d239ab8b9ee5","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":215,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"8d97fc80-3108-4e36-aa04-faced21e5983","block_type":"box","text":"BlackRock Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"3ac8d77d-1fee-4274-ab9a-f95afff976d0","block_type":"box","text":"Global Principles | 7","page_number":215,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"e3181f14-9c5c-4806-b0bb-c8dd08ca9c84","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":215,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6e4ff7b7-167a-40f6-b3bc-97b3e55d7b1a","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":216,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"14526ece-dbed-4e75-a608-687eb1fea9ab","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":216,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"b57f39fb-d78f-4649-9535-f8428b09e9e3","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":216,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"f8fd5351-9f74-4496-b513-bc60134c2104","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":216,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"64688919-ce32-4736-8ae3-9fa0087d81d0","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":216,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"b5f3f8f4-fd3c-41f0-8d13-875a9c4901e1","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":216,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"568c655b-5228-45a9-9e56-ce06fc7b95a0","block_type":"box","text":"minimizing costs to shareholders.","page_number":216,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"f8b96547-fdce-4adf-8299-16fc2c1cb027","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":216,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"713ed558-5fcb-496b-b0b5-e69da414457a","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":216,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"fa2f0ea3-d99b-4726-88fe-1c8fe32fac70","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":216,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"fdfc047f-b7be-4d61-947a-6c296c66fefe","block_type":"box","text":"board and has been negotiated at arm’s length, and whether the board or management has clearly explained its","page_number":216,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"ab7a1212-82ae-46c7-b074-c8fed6c724ee","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":216,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"4f68b406-5bab-4e8b-a262-b1a6f72a94df","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":216,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"6245b4df-74a1-4037-a084-6f5b1cfdfc2f","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":216,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"7fa75cf6-f5e1-4a06-b637-fb11cb073208","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":216,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"89eb301e-7705-4077-ae26-a6d508a4cab1","block_type":"box","text":"have been assessed through an independent appraisal process. In addition, it is good practice that it be approved by","page_number":216,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"afb02c92-2309-4e5e-90a4-2827780feeb9","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":216,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"ae0f144d-dabf-45af-8969-f10336fa8d10","block_type":"box","text":"As a matter of sound governance practice, shareholders should have a right to dispose of company shares in the","page_number":216,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"6251a104-720a-4994-bb8e-ddd064800576","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":216,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"5cd6a70e-2746-4a6e-96f6-150b4bc1bd63","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":216,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"76b122e0-be25-4225-848f-705d4a214ae6","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":216,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"3a70a37a-ffb4-4cbd-8a75-7cf30672202a","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":216,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"00423ab9-b9db-4c78-a9af-3fbffc79dc49","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":216,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"2b742d18-2c81-4e12-9845-6bb8721f3911","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":216,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"ad5f3f9a-291a-46f9-b917-b90daa466baa","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":216,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"e2a298f8-9482-4e36-bb25-fb73478e37e0","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":216,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"0b4c9681-220d-4eac-877a-5a77dd60afa9","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":216,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"1b1ecb86-daf5-4cd5-9568-97032ea81fed","block_type":"box","text":"ownership.","page_number":216,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"8599c2fb-1870-44bc-a1cd-d278f6970393","block_type":"box","text":"8","page_number":216,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"2cbecbe9-c286-4da7-bebf-a977914eb4bd","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":216,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"ae927101-1ad7-4a45-97bd-76bedd612186","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":216,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"0fee8186-1a92-456c-a0ef-981ccd7f2337","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":216,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"24755fd4-6f0a-450a-9b4e-a6016ed86c15","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":216,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"7b3a8cd9-ecbd-4a60-b3db-1f906f9bcbae","block_type":"box","text":"structures, but, where they are included, we look to companies to be as rigorous as they would be in setting other","page_number":216,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"755304a5-9888-4e4f-b2e6-6e50749bca33","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":216,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"55c19745-34f0-43a1-a2d0-571a5a183a7b","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":216,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"3baf9e69-e6c6-4269-8a8b-7d7956f93a0e","block_type":"box","text":"results over a period of years.","page_number":216,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"cb6d51ae-3b89-4113-a401-bb08400998a0","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":216,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"c0408ada-e4b2-4a51-adf2-a8f0ac74f000","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":216,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"c9164ec0-efa0-462b-b20f-6b1aa01ff800","block_type":"box","text":"company’s risk profile, the environment it operates in, and the individuals the board is trying to attract and retain. We","page_number":216,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"62f70634-39e0-48ad-a177-55b1d64d5f4f","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":216,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"2e32b82c-3916-49f4-ac00-51aa1a876c88","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":216,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"6ea402ac-9ec0-49c5-ab0b-ccf97d88ed87","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":216,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"49dd6d73-963c-4b13-b8aa-343a3df063be","block_type":"box","text":"executive compensation strategies.","page_number":216,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"75e76ef2-a0f7-4185-9cd2-9bfbf77970d3","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":216,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"fe77576c-5597-4e8e-b2ef-3dd9bedc14b4","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":216,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"39ea2b93-4566-4dc4-b3dd-795eca0176f9","block_type":"box","text":"and why the discretion was used, and how the adjusted outcome is aligned with the interests of shareholders. In","page_number":216,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"d5d44190-f960-4774-9fc3-60067fe352d1","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":216,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"df8c47e5-3c5b-4eb9-ba54-7b95ab26505f","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":216,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"2ba6059c-78f3-4f70-89fb-71b4e6d30f07","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":216,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"de85add7-fc81-40d9-b7e8-070a7779bd1d","block_type":"box","text":"8","page_number":216,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"10cf077a-8229-4254-8a90-5d29e1d66f20","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":216,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"5810f2c9-cd85-4015-8be2-0cc7b5fea41a","block_type":"box","text":"different markets.","page_number":216,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"4f274464-0880-4b23-b867-0ca028c78ec0","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"9e9f631a-1dfe-45d2-aef5-90569d13c143","block_type":"box","text":"Global Principles | 8","page_number":216,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"34642cc3-c4c2-4c79-a1d1-a4eccb996904","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":216,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"896ac1a2-edf6-4ce5-bed4-5b052d46210d","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":217,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"62efe1d5-7caa-4781-a7a7-e8dc916a5e10","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":217,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"4959b379-7c73-4b3d-ab04-4f17073be445","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":217,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"83284099-adcd-4a9d-bcf3-5feed1b06741","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":217,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"de0ffa4a-b2d1-4c5b-9b13-f6afc114793e","block_type":"box","text":"In our view, non-executive directors should be compensated in a manner that is commensurate with the time and","page_number":217,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"724b5e9d-cbc9-45f3-9e2c-897f29a01523","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":217,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"eb9e3f61-6c62-4fd5-a2da-99e50afde73a","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":217,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"7d6c65cd-36c4-4dfe-ba0b-41397e8fe187","block_type":"box","text":"whom they are charged with overseeing.","page_number":217,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"c97f5d41-2da4-4a90-8408-d12c89d01917","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":217,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"530754aa-78e3-45e8-9286-2b55941fed92","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":217,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"5d50ddab-ac97-443f-bb12-36815a23f9f6","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":217,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"4a741130-3466-4ffe-affd-c82fd7b2d108","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":217,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"28c28b64-b1e8-4fb6-8fd6-aa283587d58e","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":217,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"d4adf887-f76b-4c3c-b3e1-927f9c1b8754","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":217,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"e68a69cc-332f-41fa-8f16-75304a5f7143","block_type":"box","text":"structures.","page_number":217,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"6bc5a11a-3d75-4d06-abaf-df52d3c53938","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":217,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"cbc34ea5-4987-43c1-9081-4956b4cda734","block_type":"box","text":"Corporate form","page_number":217,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"fedaa3db-029a-47ae-a42d-c4452b859afa","block_type":"box","text":"In our view, it is the responsibility of the board to determine the corporate form that is most appropriate given","page_number":217,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"3479e826-f430-45ed-bd1e-3f12f3318edc","block_type":"box","text":"the company’s purpose and business model.","page_number":217,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"c7d9dd97-a597-4a98-9d04-e1df169c7ea4","block_type":"box","text":"9","page_number":217,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"9018864f-dc7c-495e-b9e6-3c7849968e48","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":217,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"2780910b-2175-41e9-aa7a-dd6f675c809a","block_type":"box","text":"public benefit corporation, or similar entity, to put it to a shareholder vote if not already required to do so under","page_number":217,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"fe5dad13-d5ee-4899-9613-77cd0133be4c","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":217,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"49cba82b-5748-47f7-8bfc-53b04c7a776c","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":217,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"8f8b4d62-d247-4ad2-8391-4451339a9bf6","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":217,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"41a4861e-e851-433e-a595-d7e44a8f417e","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":217,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"24462a47-4e73-43fe-8220-6cade9de7b59","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":217,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"17d6593c-adbc-41ad-9893-8e4f6c7dbb12","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":217,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"9f353dd8-5e38-45c2-b5e1-ef64823870f2","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":217,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"1d0eb995-affe-4cbc-9bca-4e12062af68c","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":217,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"bea5967a-2758-44fb-a65c-324e3d5bd267","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":217,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"bca15f0b-a124-4d46-b723-615b67bf1101","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":217,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"657eca43-808d-4583-9cec-8313aa471b05","block_type":"box","text":"BIS takes a case-by-case approach to voting on shareholder proposals and maintains a singular focus on the","page_number":217,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"c3ba1664-122f-4130-8530-f289301fa9e3","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":217,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"d76f53a9-d7e6-42b6-a56e-f831e86fa5b2","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":217,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"546918a2-7386-4abf-beaa-85c6091c80d4","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":217,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"56b31464-5ae1-4f66-808c-d046c13f3d4b","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":217,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"c5b0cc8f-e0a4-43ad-83e4-52b62d0c4a0a","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":217,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"6bf751c0-1b51-495f-aba1-e40a81872bc6","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":217,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"aef847de-531d-4c7d-94a7-155fee4bf4d7","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":217,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"46a97656-d181-4ceb-87b0-3bc5eddcf539","block_type":"box","text":"benefits to the company of meeting the request made in the proposal. We take into consideration a company’s","page_number":217,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"a9b5ef6f-c205-48a2-a639-d3a3fbf1c2a1","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":217,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"ce9a2132-fca8-4f8d-91b5-8bcbf640596c","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":217,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"476e42d2-1d95-4d97-a6b1-df9dfb36875b","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":217,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"a2f7afc7-1a3c-472b-a1ef-3a0e7d931b8b","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":217,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"937c7169-c674-4886-9c3b-2df8c54202c2","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":217,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"672e94e8-ddad-4492-942f-2a8b7376a9cb","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":217,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"b0db6d76-ff86-47f9-94c5-e3312af2454c","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":217,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"dae6758f-a739-49f0-8967-3a2c494fef98","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":217,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"fbeb7e04-8a33-429b-82fe-f0d16525d8fc","block_type":"box","text":"request made in the proposal. In voting on behalf of clients, we must vote yes or no on the proposal as phrased by","page_number":217,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"e3b324d2-63ef-4598-9382-be9416b7bb20","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":217,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"4e9238a6-2968-477e-abb0-45fec36f281d","block_type":"box","text":"9","page_number":217,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"4cad85b9-181c-4eb6-b8dc-794877923cf9","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":217,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"77136f5d-1ef3-498d-b265-d6f476e2f892","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"2a1abf9c-eaab-4e3e-bdd6-1431cf88c80f","block_type":"box","text":"Global Principles | 9","page_number":217,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"e2898be4-a591-4650-aa18-f13658677a88","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":217,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"58bc00bf-d7c2-4b69-aef5-c01928b792df","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":218,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"9bfebafe-4862-4b97-ac9d-81af1096a9c6","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":218,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"c1c1b04c-7fa9-4989-aca9-5373fa1bee84","block_type":"box","text":"long-term financial interests.","page_number":218,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"82169c2c-78b6-4aab-9d96-58009e942994","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":218,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"3958c5dc-7c24-48bd-b95d-86c1017f1768","block_type":"box","text":"restrictions and limitations on how BlackRock can interact with the companies in which we invest on behalf of our","page_number":218,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"0aae49a2-e4dd-4237-8a80-637cbdd7b221","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":218,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"b1613925-8e64-4c0e-ac3b-fa464273d1b0","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":218,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"65337b72-0770-42eb-a3f2-359319ec9bf5","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":218,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"729d4aca-b6d5-4207-8120-7515b8a0db14","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":218,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"7ca1c7e1-09f6-49cf-8d6f-557de2df870d","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":218,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"423557e2-2a9e-4ebc-a21b-fbf5732f2c26","block_type":"box","text":"term financial value creation.","page_number":218,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"a6ab96a6-5709-4adc-9ed4-30c5fe009e9a","block_type":"box","text":"10","page_number":218,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"18185177-92bb-4d46-b182-e0a3a12e3e16","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":218,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"8d6bcfd3-d9d1-421c-bcd3-c263d21a3b49","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":218,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"46f9c65b-4a02-4abb-982c-b1708b2e8d40","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":218,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"0c7745eb-7b35-42c4-bce3-1ff91194ab03","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":218,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"9da83b15-e9d2-420f-a051-7557436b9937","block_type":"box","text":"industry-specific metrics.","page_number":218,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"0c3ac6df-9ca9-4d73-8736-0f7b98263c95","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":218,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"6f17861d-5eae-4121-827f-efd9bad88479","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":218,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"ff4f0aa4-09c0-49df-87ac-c6d08241262d","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":218,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"9ba72b53-3259-4761-9116-d216dd007d0c","block_type":"box","text":"11","page_number":218,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"c7a4054f-29ee-4cbc-b285-1dc11908b962","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":218,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"57b94257-8365-44d1-8f97-529975f2cb8b","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":218,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"8bac6419-2bee-41d3-a6bb-6a7489174c4c","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":218,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"843584b9-ad12-45a5-9469-0089592491c7","block_type":"box","text":"specific.","page_number":218,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"6079e9da-827e-4cac-a26b-defbb894ac32","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":218,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"b83964bb-280f-4805-8a5f-2c08aa447f25","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":218,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"0d12873b-fc03-44e1-acea-a160dfce088a","block_type":"box","text":"them sufficiently in advance of their shareholder meeting, to the best of their abilities, to provide investors with time","page_number":218,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"ba731c51-182f-4d17-b711-efb3b3a5197d","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":218,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"fe0fa1af-84fa-4fa1-a5dd-c4f160bffb14","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":218,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"9654b2bb-f120-4874-822a-a5608b2abdc9","block_type":"box","text":"best practices and disclosures. While not a voting item, we find it helpful to our understanding of investment risk","page_number":218,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"a08ccf14-5508-469a-9222-9b386053fa15","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":218,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"bf2bfab2-5c47-425b-9f50-6cfad608e40a","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":218,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"a0555bbc-a45b-4165-bb56-373a73f56a01","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":218,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"59d12da6-b67e-495f-91b6-bfa9e1d778a6","block_type":"box","text":"10","page_number":218,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"c7c9a4d0-a331-40a2-a71a-b0642d43719f","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":218,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"fd0a512e-e092-4867-ac8a-6c53a2a338dd","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":218,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"79303195-a1c1-4258-8ed4-a8ad05c7bb23","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":218,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"710c3eef-4502-4e7a-9653-dfb26deb5e61","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":218,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"ef20e98b-191b-4bcc-a690-eecbf6195cfe","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":218,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"893b078a-15d8-4b6d-8450-42f52abe05e2","block_type":"box","text":"11","page_number":218,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"5d8b33a7-d19e-46ed-a95f-fa0597c87ac5","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":218,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"8909448a-d0c2-4a1e-a469-eba4aa9c82cf","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":218,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"27ef9522-5f6b-4acd-bdcb-d3d20d6db3b4","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":218,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"288af7d1-e027-4317-9269-5a010eaee483","block_type":"box","text":"converged under the ISSB. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":218,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"dbce4397-643c-43cc-97dc-73a42c5b43d6","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":218,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"9188a600-8bda-45e2-b5bb-348da567dff7","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":218,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"e3dd350c-18fb-47d2-ab07-a819d9ef4386","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"3d8b487c-a03b-40d3-9772-481e2106cf2a","block_type":"box","text":"Global Principles | 10","page_number":218,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"53e95bea-a704-40b5-bf8c-c18268e1f361","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2e7188fb-5429-4cee-a36f-ea1a000b2e7b","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":219,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"c45ea1b8-b98e-4a2b-a6be-a44f30ff4a8d","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":219,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"809331b6-c38a-45e3-bce9-579b80ccdeae","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":219,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"1ae6f6cb-e835-4aac-b60a-860cc3810d49","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":219,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"182e57b0-5706-4358-9148-87540fe619ce","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":219,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"af8f5d2f-ff80-42da-b4e6-c930a2b207e5","block_type":"box","text":"12, 13","page_number":219,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"6d400f02-783b-4b30-b422-7586f77b02ce","block_type":"box","text":"From company disclosures and","page_number":219,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"185f7030-47cd-4b6c-affc-04f0bb70d2c2","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":219,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"08c6c7da-eddf-4911-a008-a1861c3bfa6f","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":219,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"f6f7082a-dcf3-4f50-922a-73649e138533","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":219,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"b3fa4a1a-1a7a-436f-8bd1-518f13021e66","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":219,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"332134c9-785f-4c7a-9bfd-3b6db35e26be","block_type":"box","text":"viewed as best practice in the market.","page_number":219,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"168318a5-b06c-4df9-b7ef-22900e653f99","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":219,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"9428c003-9aa7-437a-8a2d-01f8d7f0ce3a","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":219,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"7491965f-69a5-4ce8-bcb0-7ee3a22c9c2d","block_type":"box","text":"with insights into how companies are managing the risks associated with a transition to a low-carbon economy by","page_number":219,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"24ae0a61-5c40-4d43-9ef0-55bd958e5759","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":219,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"9bf7fd7c-9bcf-45ed-92fc-0f3c4349db30","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":219,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"1b7f5a2e-7679-4d3b-bb95-88a4428632ee","block_type":"box","text":"long-term targets, ideally science-based where these are available for their sector, for scope 1 and 2 greenhouse gas","page_number":219,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"22b4f6de-90bb-4e67-ba0c-880927399ede","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":219,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"fc8ffeb6-c015-45ec-9f17-569cdd03487d","block_type":"box","text":"interests of their investors.","page_number":219,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"43796efe-9877-43e2-9e05-fcafbe6e5ac2","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":219,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"a39e0db8-aae5-4c39-9b26-1ba84c3258ca","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":219,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"88ca33b5-e62c-47f0-ae3d-6c32cb4e07cc","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":219,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"be1aadd3-b6b1-4219-967c-b7b4448f4424","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":219,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"cb1bb578-6733-493c-bcec-839c8b71c4d0","block_type":"box","text":"good-faith basis as methodology develops.","page_number":219,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"a6cc9def-fbe8-4c96-91ab-20e489c7c14e","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":219,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"03e48d13-32f4-489e-9f3b-11fea747b4cd","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":219,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"e07ca2e6-1943-499b-85c9-5dbd8a2c7929","block_type":"box","text":"generate long-term financial returns.","page_number":219,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"4e47d4fe-2a9d-40c1-959b-aaf56f0c3245","block_type":"box","text":"14","page_number":219,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"5e349c92-88b5-4742-bf1a-48c811095400","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":219,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"5b363cde-44d2-4bfa-8480-a39428555a92","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":219,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"8b30e31b-304e-4ca1-993b-c0b6751bd6b4","block_type":"box","text":"15","page_number":219,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"62515040-c7f6-43ef-a45f-395abd7e555a","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":219,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"404a8f9b-89ee-41bb-a83b-c49b1e75546f","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":219,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"e921bc53-b51f-4ef6-ae6b-0606a6bc7afc","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":219,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"e20f78b1-c69c-4844-9c95-63584dca3411","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":219,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"e03736d1-0642-4e5d-bf48-d9903b560634","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":219,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"c05b7cc0-25fd-460e-a004-134ef902ca85","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":219,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"4ed07dc3-026b-43f3-815f-ad1ea7451351","block_type":"box","text":"12","page_number":219,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"699c9495-7a1d-4ec8-aab6-3990bf833027","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":219,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"2ca2603e-6c73-4baf-8141-25536a285190","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":219,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"16debcd2-72f8-4bb0-ac56-e0209d45f40d","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":219,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"a931632b-5c97-41f3-9507-01101fc6b3ef","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":219,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"1a2aab73-0496-465a-aa5f-b18ab240d2db","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":219,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"605265cf-db90-48a5-8bf5-7b5cfbe5245e","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":219,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"e3820a26-d6e4-448f-ada5-7bc362330d3b","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":219,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"5fe8d88c-b2dc-4c53-9784-95f67aef2948","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":219,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"6c02e9e2-6d8f-4415-ac34-c18091f75c28","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":219,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"f46854e7-a240-4764-b896-3b063007064b","block_type":"box","text":"13","page_number":219,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"77e039a0-1ec1-4c52-88aa-b9dc9e23ba55","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":219,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"4580fb20-af9e-4d80-8d1d-8942b6c2e688","block_type":"box","text":"2025.","page_number":219,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"44362072-d32c-4fd1-9c19-c06f2a721a7a","block_type":"box","text":"14","page_number":219,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"7b195f30-57e0-4996-9072-f0ab52070fcb","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":219,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"6f698e0d-ec6f-4465-97d3-f9384b85abfa","block_type":"box","text":"2025.","page_number":219,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"7fcbc317-22c0-4773-b352-5b078e809ba1","block_type":"box","text":"15","page_number":219,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"b9b0ac03-2936-4e3d-b3e7-c53b9d921c5e","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":219,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"b0ce4b67-e5d1-45b8-af40-9263376a43f9","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":219,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"59fd827b-8a86-4b66-ac91-fd0964eddf1a","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":219,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"febcea72-066a-4563-849c-25b8aaea59bc","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":219,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"8d308ec8-9591-4dad-b23f-3fdc4ec7870f","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":219,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"fd4c5574-a2ce-4e73-a82a-1e7e07fbb9c8","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"93a1a44d-23a1-4457-8971-dcfba5048184","block_type":"box","text":"Global Principles | 11","page_number":219,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"0d424a51-f4f4-45da-9e99-0d4dc1ee35a6","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c9614a78-0283-4e54-a186-046aa19d2f8f","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":220,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"1f441994-e28d-4d28-9a78-ff98dc2745d7","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":220,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"24746b9f-0fa8-4402-af8a-053c4beac613","block_type":"box","text":"16","page_number":220,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"f814f412-5bd0-43f8-8c09-1c630e3f5f8d","block_type":"box","text":"As a long-term shareholder on behalf of our clients, we find it helpful when companies disclose how they have","page_number":220,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"10bbcc6e-31e4-4cba-9481-c67a27445d55","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":220,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"8ef2dcf5-5b95-400c-80ab-9957c89791b2","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":220,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"9577acfd-01da-41a9-baee-5a46704c5813","block_type":"box","text":"needs of their workforce today, and the skills required for their future business strategy. We are also interested in","page_number":220,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"44ecedc3-c475-4bc2-bf2c-7d9454151fd5","block_type":"box","text":"understanding how the board monitors and engages on these matters, given it is well positioned to ensure that the","page_number":220,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"a2796716-0768-475f-9222-23e6f8b718a8","block_type":"box","text":"approach taken by management is informed by and aligns with the company’s strategy. BIS does not direct a","page_number":220,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"5e666d46-8332-4601-b813-4b30a54c7480","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":220,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"b3f568dd-d678-43a5-8cf1-aa4a0d008d39","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":220,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"ac40669d-a966-4b78-bffe-9600e04410b8","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":220,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"561431fe-adbd-4f23-b6e0-a04361b113f2","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":220,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"0130cee6-4641-4c30-8ab3-9bc3b35e85cd","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":220,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"0aef9b03-9ca5-4451-9d79-01a3debdfb9a","block_type":"box","text":"impacts.","page_number":220,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"4a66f84a-850c-4cab-80ae-7deb98eeb659","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":220,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"2bfeae9c-f666-4bc4-aad2-1cc2c08b4361","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":220,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"1210125c-7637-4f34-be7d-e2b0c290296b","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":220,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"c6086892-e538-47a2-b123-9a431a24af77","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":220,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"4789448a-77eb-4877-b8fa-9560955aca6c","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":220,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"a200ddc6-8eb3-459d-8e07-b65f8f90ae8b","block_type":"box","text":"clients at the global and regional level.","page_number":220,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"2f1a6529-4791-4948-9a84-b6249aad7ed9","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":220,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"2040793e-23b4-4c21-937a-6653a9b93207","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":220,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"054034e1-43de-49cb-b966-accbbbc27fcb","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":220,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"c002e114-88ea-439d-ba75-0ba70c3d2e5d","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":220,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"2406a96e-7b64-431f-95de-a2dc5e6dfa30","block_type":"box","text":"BIS on behalf of clients, as well as updates on material process issues, procedural changes, and other risk oversight","page_number":220,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"9c68fe84-4524-44b3-8545-8ca577998e6f","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":220,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"c925dd31-450d-4b15-ae21-4164e5c9e1e9","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":220,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"ea19c7c6-1b6a-4824-bb88-5334957c9d79","block_type":"box","text":"are independent from the investment stewardship function.","page_number":220,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"6bb6fa97-fd9d-4770-8b0f-a7630606af98","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":220,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"64507a0e-27b2-43ba-9732-97af5bd97ce4","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":220,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"aee89698-99d9-4f64-82f1-04030a4f1e9b","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":220,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"013f6559-15f2-4e19-a51f-9b74f96ee985","block_type":"box","text":"VOTE EXECUTION","page_number":220,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"d1257bd7-ab9f-4147-8412-938422c63df9","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":220,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"385e8e92-66d0-4c63-8fa8-9dfcffd706e2","block_type":"box","text":"processes in place to consider all proxies for which we have voting authority, and submit voting decisions, or refrain","page_number":220,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"15a73427-96cf-435d-8163-81e3a92230cb","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":220,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"f45e38e1-78bf-481a-b8c8-079917787fb8","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":220,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"b93e1b0d-fc94-4fe6-87b6-c534567d3e01","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":220,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"47a71f5d-bf3a-4039-82de-95a64b8a384d","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":220,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"751d6cd1-1498-4584-8175-584af42c83fe","block_type":"box","text":"management policies and procedures,” below).","page_number":220,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"c5672b49-8727-407c-abe3-5d6dcda01ade","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":220,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"88422796-df01-43fa-a646-7ce24ff0dd0c","block_type":"box","text":"of voting such proxies on behalf of our clients. These issues include, but are not limited to: 1) untimely notice of","page_number":220,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"a6724125-f088-49c1-a194-bfff7725d5db","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":220,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"78b66d39-2e02-482a-84f0-e6ed68087438","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":220,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"cb70d041-c554-4f07-aace-2b005108bf7f","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the after the shareholder meeting","page_number":220,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"9520b2db-ee30-4347-8737-37b5ea342612","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":220,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"74aed744-444f-42e2-9590-90b1a512b21c","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":220,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"198025cf-6120-4831-aa09-f2c010ebc07a","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":220,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"39b02858-f612-4b76-a0fb-c96984b0d9c6","block_type":"box","text":"16","page_number":220,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"0a3f18cd-edc0-4910-b3f4-fdba3534ad4b","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":220,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"28bf68ff-83b6-48a3-911e-a3de6f51d0a5","block_type":"box","text":"December 2025.","page_number":220,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"3d2d65b5-4ae4-479e-a100-71bd539bf628","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"76b14da2-f26d-4b9c-ae69-24d6d799a06f","block_type":"box","text":"Global Principles | 12","page_number":220,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"b73a798b-d557-421f-8283-1415ec5f7164","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e49fe6ab-fae8-4411-9804-0cff5fd7cb07","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":221,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"a9d99d09-a3f1-4d1a-bb87-da4898b0abec","block_type":"box","text":"in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs (including but","page_number":221,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"79f27d80-44e9-4b7c-97cf-20c6cba4f6e1","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":221,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"ae69e766-8261-4b33-9378-402038ac7dae","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":221,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"dd655980-2134-41c5-a1c5-d7e5228328cb","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":221,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"13fc522e-0f01-4453-8e25-2a4ebd739b3e","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":221,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"09c24fe6-4dcc-4c28-a600-ee03b620951b","block_type":"box","text":"enterprise-level vendor management activities.","page_number":221,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"857f5c3f-2543-484b-8784-ecb4f8a725b4","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":221,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"2e31bc36-760e-4289-bc41-827dc7a024d0","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":221,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"514fd49d-f2f4-4f18-a400-e2f8fff0b8a8","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":221,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"4f733673-a5cb-4402-9be8-55d4ca329fc1","block_type":"box","text":"BlackRock employees.","page_number":221,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"03b3676d-2608-46fd-aa90-396e978ae79c","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":221,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"1c6fba84-ec9a-4885-8995-c0a473217900","block_type":"box","text":"SECURITIES LENDING","page_number":221,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"743e91a0-5eb1-4b50-a9f7-767200522a5e","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":221,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"a499f55f-71ab-4ccc-893a-77673f24816d","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":221,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"7a881bc1-1631-49c9-a004-6b8b09cca7ad","block_type":"box","text":"recall securities out on loan at any time. BlackRock (or any other lender) does not retain voting rights for securities","page_number":221,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"bc770c76-16bb-480b-96f8-a5d1b309f236","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":221,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"74ded739-e2e5-45c2-af77-625cb6d1f87d","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":221,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"44260a44-681e-43f0-9efb-9cea05542a38","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":221,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"8f71596e-b1d8-4488-88f5-047d0444ba7e","block_type":"box","text":"loan and may determine to recall them for voting, as guided by our fiduciary duty as an asset manager to our clients","page_number":221,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"7136df5b-a93b-4dc5-932a-b29c528069fd","block_type":"box","text":"in helping them achieve their investment goals. While this has occurred in a limited number of cases, the decision to","page_number":221,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"4419f91e-fdc1-4cfa-bf1b-e76419668e06","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":221,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"243180d9-cec1-4864-b50f-f07a7d79e908","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":221,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"a0a0a936-bc10-4522-b69a-ae27dece0f97","block_type":"box","text":"potential long-term financial value to clients of voting those securities (based on the information available at the time","page_number":221,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"21aa3037-4fd6-4326-8736-ba0d5da4c457","block_type":"box","text":"of recall consideration).","page_number":221,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"be06d023-5e67-4a6c-97da-967b56cde102","block_type":"box","text":"17","page_number":221,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"30a4d314-afd1-4169-9ac8-e45f0caacf67","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":221,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"9146992f-628a-4495-af31-9d9fe96ba7ad","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":221,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"0f6e44c9-e4c2-449c-b0e7-e134a9a080ca","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":221,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"92dff047-734f-4e8e-a5c7-a698bd669d5f","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in cer tain instances,","page_number":221,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"62a23528-e006-408b-91cc-603e64446c3b","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":221,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"b134ed76-7b51-4056-8249-ac0846e7b627","block_type":"box","text":"the securities lending revenue loss to clients and would therefore recall shares to be voted in those instances. It is","page_number":221,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"41a3c8df-3b94-4ef2-a22d-22f067ed4db6","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":221,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"77a9a710-9779-4c1c-aa17-bf708a8334eb","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":221,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"8dc86a10-3ed3-4e85-8497-70ed5a74c400","block_type":"box","text":"and may modify it as necessary.","page_number":221,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"cf16ca0e-dce6-4abe-b78e-7691ceb1f2ab","block_type":"box","text":"VOTING CHOICE","page_number":221,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"9bdef50d-762c-4941-934d-8b62c9b8b75c","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":221,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"522b99f7-48b1-48bd-83d5-de1eb734309b","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":221,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"dd14daca-3c6f-4980-b0f3-9b891ebc3c6d","block_type":"box","text":"18","page_number":221,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"00c635eb-0ffd-44aa-8eea-58455a1c2257","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":221,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"81dac9ef-d837-4610-a714-b9bb44a65016","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":221,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"ff0106f0-5725-4207-a177-5ebde48054b6","block_type":"box","text":"17","page_number":221,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"09e8b7e1-63ac-452b-ae7a-e9a49af1d301","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. In the U.S., for example, the record","page_number":221,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"27fa2ecf-49e7-4650-97ae-be81190a8c13","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":221,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"0fb38477-2a7d-47a2-ac6f-6c7d94c785b4","block_type":"box","text":"practicable to evaluate a proxy statement, determine that a vote has a material impact on a fund and recall any","page_number":221,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"f40beb3d-7926-4d88-b434-fe4395682549","block_type":"box","text":"shares on loan in advance of the record date for the annual meeting. As a result, managers must weigh independent","page_number":221,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"cafb4804-fe8b-4518-b79a-ee1b275dcdc6","block_type":"box","text":"business judgement as a fiduciary, the benefit to a fund’s shareholders of recalling loaned shares in advance of an","page_number":221,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"104ec13c-ef62-4a43-b9ac-42ca0800c49b","block_type":"box","text":"estimated record date without knowing whether there will be a vote on matters which have a material impact on the","page_number":221,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"35f9f74b-f92d-4cbd-a1b5-b5f00d7534bb","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":221,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"6d173c87-0f9f-454e-89a6-0148a598e69a","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the oppor tunity to vote).","page_number":221,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"8a536371-c4d3-4f5c-8f82-62f464614f92","block_type":"box","text":"18","page_number":221,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"a5d4d330-3262-4fe6-a758-cd1a120b13b2","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":221,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"8da99a19-ddf2-4e42-ab0b-f52ae97e07d1","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":221,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"982043cb-d793-4219-b9f5-fbc31dc7df12","block_type":"box","text":"including the decision to lend securities.","page_number":221,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"bdef4706-90d3-428b-9cc4-a1f8b7c4a9e5","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"5e71f51f-7fd8-46f4-86b3-b1839465e8b4","block_type":"box","text":"Global Principles | 13","page_number":221,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"72aa44d9-e4c7-42a4-8fbc-f9df503bcb09","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cfd6ee8a-264b-49b3-86c5-89d74d982bd5","block_type":"box","text":"cer tain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":222,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"95b57ef2-0964-4de6-9c77-954a5b3454d1","block_type":"box","text":"(SAE) strategies. In addition, institutional clients in separately managed accounts (SMAs) continue to be eligible for","page_number":222,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"da1e6970-61ed-46af-858e-279caad417b5","block_type":"box","text":"BlackRock Voting Choice regardless of their investment strategies.","page_number":222,"box":{"x":70,"y":75,"width":471,"height":11}},{"id":"aba68443-6126-464e-998c-80a3107cb6cb","block_type":"box","text":"19","page_number":222,"box":{"x":543,"y":75,"width":9,"height":5}},{"id":"a80b5572-4a85-4dc2-b183-6b822064522c","block_type":"box","text":"Voting Choice is also available for eligible U.S.","page_number":222,"box":{"x":558,"y":75,"width":328,"height":11}},{"id":"25cab2b7-08da-4510-a220-7dcc14ecfdac","block_type":"box","text":"retail shareholder accounts invested in BlackRock’s largest U.S. exchange-traded fund.","page_number":222,"box":{"x":69,"y":90,"width":619,"height":11}},{"id":"62f07add-690b-4f11-8235-c894a8a026a5","block_type":"box","text":"20","page_number":222,"box":{"x":690,"y":90,"width":9,"height":5}},{"id":"1dfdbf2a-cc5b-412e-a294-df0e2c3a6446","block_type":"box","text":"As a result, the shares attributed to BlackRock por tfolios in company share registers may be voted differently","page_number":222,"box":{"x":101,"y":113,"width":782,"height":11}},{"id":"542dd336-e4be-4085-9799-72d0842ea8a4","block_type":"box","text":"depending on whether our clients have authorized BIS to vote on their behalf, have authorized BIS to vote in","page_number":222,"box":{"x":69,"y":128,"width":767,"height":11}},{"id":"a4a7416f-7100-4335-9437-018dcb64b4b6","block_type":"box","text":"accordance with a third-par ty policy, or have elected to vote shares in accordance with their own policy. Our clients","page_number":222,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"68e028b4-7859-49f0-b32b-cc46e93b52df","block_type":"box","text":"have greater control over proxy voting because of Voting Choice.","page_number":222,"box":{"x":69,"y":158,"width":454,"height":11}},{"id":"b8e8bda6-178e-43e7-a4b5-16e375368849","block_type":"box","text":"21","page_number":222,"box":{"x":525,"y":158,"width":9,"height":5}},{"id":"90bd5daf-52a3-4db8-9827-c3130ff1be96","block_type":"box","text":"REPORTING AND VOTE TRANSPARENCY","page_number":222,"box":{"x":343,"y":188,"width":293,"height":9}},{"id":"6962bebc-0e6f-404e-8bd8-3aa581147859","block_type":"box","text":"We are committed to transparency of the stewardship work we do on behalf of clients. We inform clients about","page_number":222,"box":{"x":101,"y":211,"width":789,"height":11}},{"id":"60ca10e3-3b57-4824-b215-3aa6ab7ae324","block_type":"box","text":"our engagement and voting policies and activities through direct communication and through disclosure on our","page_number":222,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"0c39eebd-977d-464c-8f29-0742d2cec724","block_type":"box","text":"website. We make public our regional voting guidelines for the benefit of clients and the companies in which we","page_number":222,"box":{"x":68,"y":241,"width":795,"height":11}},{"id":"8fbf6bba-2af7-4587-a11c-ad5f7814bdaf","block_type":"box","text":"invest on their behalf. We also publish commentaries to share our approach to engagement on our five engagement","page_number":222,"box":{"x":70,"y":256,"width":825,"height":12}},{"id":"ce5b1041-9bd5-4709-8381-fda4296e1de2","block_type":"box","text":"priorities, as well as quar terly repor ts detailing our proxy voting and engagement activities.","page_number":222,"box":{"x":70,"y":272,"width":644,"height":11}},{"id":"29246360-9468-4c18-bbea-9ad3abf51636","block_type":"box","text":"19","page_number":222,"box":{"x":69,"y":324,"width":9,"height":4}},{"id":"4c5a2d31-19ce-4748-ae6a-8419ff045ecd","block_type":"box","text":"With Voting Choice, SMA clients have the ability to select the policy that best aligns with their views and","page_number":222,"box":{"x":83,"y":323,"width":739,"height":12}},{"id":"336abb9a-8d85-404c-85f5-ac59a8e8cd20","block_type":"box","text":"preferences from a set of voting policies from third-par ty proxy advisers. BlackRock can then use its proxy voting","page_number":222,"box":{"x":70,"y":338,"width":800,"height":12}},{"id":"5dc9c1ef-033d-4e32-bcff-00aae914581e","block_type":"box","text":"infrastructure to cast votes for the SMA based on the client’s selected voting policy.","page_number":222,"box":{"x":70,"y":354,"width":596,"height":11}},{"id":"b26029a1-6e8e-40c9-a2e0-296d274e189b","block_type":"box","text":"20","page_number":222,"box":{"x":69,"y":372,"width":9,"height":4}},{"id":"56637b68-bb53-4393-9419-a5d2541ff3f4","block_type":"box","text":"Read more about BlackRock Voting Choice on our website.","page_number":222,"box":{"x":84,"y":371,"width":415,"height":11}},{"id":"df180dcc-128a-4e4a-91b0-1dc3483b9964","block_type":"box","text":"21","page_number":222,"box":{"x":69,"y":389,"width":9,"height":5}},{"id":"b155f3e3-8c84-420d-b1b6-2a232da288f4","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":222,"box":{"x":84,"y":389,"width":820,"height":11}},{"id":"23ccd736-e2c5-4cfd-b1bc-b07ea880d7ca","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"9b8d0c15-e578-4758-9c8c-e4a961f453b2","block_type":"box","text":"Global Principles | 14","page_number":222,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"29059bc7-eb20-4225-ad60-ecec677c0d61","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f583e3ff-d909-45f1-86be-b0d608315760","block_type":"box","text":"Want to know more?","page_number":223,"box":{"x":68,"y":731,"width":152,"height":9}},{"id":"7f3868fa-b18f-4348-a91a-0aa015022c1b","block_type":"box","text":"blackrock.com/stewardship | contactstewardship@blackrock.com","page_number":223,"box":{"x":69,"y":761,"width":464,"height":13}},{"id":"31fcbc31-6366-458c-a060-07597aada500","block_type":"box","text":"This document is provided for information and educational purposes only. 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related to climate","page_number":226,"box":{"x":101,"y":526,"width":784,"height":11}},{"id":"34a5f861-d7d2-4e29-b215-38e8de567702","block_type":"box","text":"risks and the transition to a low-carbon economy at companies that are held by in-scope funds and accounts that","page_number":226,"box":{"x":69,"y":541,"width":806,"height":11}},{"id":"37cc49d5-7822-489b-8b63-cbc070c9c7b1","block_type":"box","text":"apply these Guidelines.","page_number":226,"box":{"x":69,"y":556,"width":165,"height":11}},{"id":"131d61fd-0bad-4e52-bd89-00d72b9324d1","block_type":"box","text":"The Guidelines differ from the Benchmark Policies in that they consider, in addition to financial objectives,","page_number":226,"box":{"x":101,"y":579,"width":755,"height":11}},{"id":"b1841fb4-f329-45c1-af26-901caa123425","block_type":"box","text":"companies’ strategies to align with the transition to a low-carbon economy. They also incorporate the more ambitious","page_number":226,"box":{"x":69,"y":594,"width":834,"height":11}},{"id":"74ec7bea-d6ab-4668-ad5b-03e65c2115a3","block_type":"box","text":"goal of the Paris Agreement - namely to limit average global temperature rise to 1.5°C above pre-industrial levels.","page_number":226,"box":{"x":68,"y":609,"width":806,"height":11}},{"id":"c2485fa2-35b8-4dae-8f00-46a3e064b0b9","block_type":"box","text":"6","page_number":226,"box":{"x":876,"y":609,"width":4,"height":5}},{"id":"9ceea693-0c43-4507-b148-2d84f74d95c4","block_type":"box","text":"The Guidelines apply primarily to companies in sectors that play an impor tant role in the transition to a low","page_number":226,"box":{"x":101,"y":632,"width":766,"height":11}},{"id":"4201e8e4-4799-4dfb-bf18-ab883665dbf2","block_type":"box","text":"carbon economy. 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Net zero commitments are sourced from respective","page_number":226,"box":{"x":79,"y":850,"width":782,"height":11}},{"id":"1c6bc48a-4c0d-46de-9b65-fc5fc2843c8f","block_type":"box","text":"company websites, as of January 2025.","page_number":226,"box":{"x":69,"y":865,"width":284,"height":11}},{"id":"78da6814-bb6a-400d-afc9-23ebccea5096","block_type":"box","text":"5","page_number":226,"box":{"x":69,"y":883,"width":4,"height":5}},{"id":"260028d4-e561-48cb-b2f7-8339390c09bc","block_type":"box","text":"A list of approved funds is on BlackRock’s website here.","page_number":226,"box":{"x":78,"y":883,"width":401,"height":11}},{"id":"07503de3-aa9e-4811-a929-cbf2183e6bcf","block_type":"box","text":"6","page_number":226,"box":{"x":69,"y":901,"width":4,"height":4}},{"id":"6f7f1871-03aa-4cbc-95a5-4db4b4ae2a6f","block_type":"box","text":"United Nations Climate Change, “The Paris Agreement,” accessed in December 2025.","page_number":226,"box":{"x":79,"y":900,"width":614,"height":12}},{"id":"a827a595-18f8-4288-ba1c-70f765a89494","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a05d13b8-5be4-4d45-a269-a1dd0a8215f8","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 3","page_number":226,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"c151ca1d-130f-4cfc-8f87-cffa01dd91eb","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":226,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"acd382f6-bec3-458f-be71-2ddf90590afd","block_type":"box","text":"par ticularly those representing the major sources of scopes 1, 2, and 3 greenhouse gas (GHG) emissions across","page_number":227,"box":{"x":70,"y":45,"width":806,"height":11}},{"id":"c5edfa4b-b0f5-4ac7-bd97-d1a5916373d9","block_type":"box","text":"companies held by in-scope funds and accounts that have selected the Guidelines.","page_number":227,"box":{"x":69,"y":60,"width":590,"height":11}},{"id":"82d20c48-31ed-4ec8-9d43-0d171fea23c6","block_type":"box","text":"7","page_number":227,"box":{"x":661,"y":60,"width":4,"height":5}},{"id":"88b25c91-2ec9-4e44-bcb3-b47f77b5f7e1","block_type":"box","text":"For companies and matters not related to climate and transition risks, the dedicated team follows BIS’","page_number":227,"box":{"x":102,"y":82,"width":731,"height":11}},{"id":"b5fa520b-3afe-4cfd-8e2f-136c9f66bcac","block_type":"box","text":"Benchmark Policies.","page_number":227,"box":{"x":70,"y":98,"width":141,"height":9}},{"id":"c787cc83-0364-400e-a14f-be2328349815","block_type":"box","text":"8","page_number":227,"box":{"x":213,"y":98,"width":4,"height":4}},{"id":"834f65cd-bb2d-4881-937f-f2a1b5560486","block_type":"box","text":"In addition, for clients who do not direct BlackRock to prioritize climate risks and","page_number":227,"box":{"x":224,"y":98,"width":572,"height":11}},{"id":"92a2b707-3eb8-444e-b79f-b85a4b0c7bc8","block_type":"box","text":"decarbonization as an investment objective, BIS under takes our stewardship responsibilities in line with our","page_number":227,"box":{"x":69,"y":113,"width":769,"height":11}},{"id":"a523c38c-a659-4d92-8a68-cecf68bf528a","block_type":"box","text":"Benchmark Policies, with a sole focus on advancing those clients’ long-term financial interests. 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Fur ther, the Guidelines consider the","page_number":228,"box":{"x":102,"y":45,"width":751,"height":11}},{"id":"3ac23e4d-cef3-4757-be43-aa914a9518f1","block_type":"box","text":"differences between the actions and outcomes over which company management has influence, and those it","page_number":228,"box":{"x":101,"y":60,"width":778,"height":11}},{"id":"ea0ac434-ca56-46c4-a843-014122e0bb00","block_type":"box","text":"does not.","page_number":228,"box":{"x":101,"y":75,"width":66,"height":9}},{"id":"aa0cb7b7-25ef-4b20-8dbd-179408f1f3a8","block_type":"box","text":"•","page_number":228,"box":{"x":69,"y":98,"width":6,"height":4}},{"id":"a4d7c03c-429f-4926-8d47-f6a2819812fa","block_type":"box","text":"Focus on useful, contextualized disclosures that help inform investors views, while recognizing data","page_number":228,"box":{"x":102,"y":95,"width":729,"height":11}},{"id":"cce9a901-657c-4048-b8b0-e7466b609c98","block_type":"box","text":"limitations:","page_number":228,"box":{"x":102,"y":110,"width":80,"height":9}},{"id":"0aeb432d-9648-472b-81c6-fa5e7ea1fb41","block_type":"box","text":"Under the Guidelines, the dedicated team looks for disclosures that outline key milestones and","page_number":228,"box":{"x":189,"y":110,"width":679,"height":11}},{"id":"cb531492-9d65-4cb7-bb5b-8a4ec52ef128","block_type":"box","text":"dependencies underpinning the company’s low-carbon transition strategy, explain the trade-offs required to adapt","page_number":228,"box":{"x":101,"y":125,"width":807,"height":12}},{"id":"4c252ba9-e3e4-42f1-a75f-ed961a121beb","block_type":"box","text":"the business model, and include relevant data and narrative.","page_number":228,"box":{"x":101,"y":141,"width":433,"height":10}},{"id":"16de6988-bf78-4862-98f3-d5b684ed09a5","block_type":"box","text":"•","page_number":228,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"b8b9169b-135d-42c9-9a4e-f34775b81e06","block_type":"box","text":"Consistency with the participating clients’ position as a minority investor:","page_number":228,"box":{"x":101,"y":161,"width":541,"height":11}},{"id":"8ab633a2-43c6-4ccf-b387-7eb5f052b36f","block_type":"box","text":"The boards and executive leadership","page_number":228,"box":{"x":648,"y":161,"width":261,"height":11}},{"id":"2eb0f3a4-327c-4e31-8331-3aa8220f92a7","block_type":"box","text":"of companies determine a company’s strategy and its implementation. Under the Guidelines, the dedicated team","page_number":228,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"22cfdf2c-997a-471b-a258-6e2320c521fa","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":228,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"abc3a283-438f-4549-85fd-619fb3610c2c","block_type":"box","text":"judgment of the priorities and outcomes most aligned with par ticipating clients’ investment objectives.","page_number":228,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"fb702d2e-eec8-4c37-9e11-6d62ac98c7e4","block_type":"box","text":"Voting approach under the Guidelines","page_number":228,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"702e4370-9ab8-4778-84e5-c0aebc940a3b","block_type":"box","text":"12","page_number":228,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"d89a5d82-461b-4cfb-82e4-5ac703978803","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":228,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"e29a5552-ffc5-4d6d-bb99-7027fb83ece5","block_type":"box","text":"case-by-case approach that reflects the uneven pace of the low-carbon transition across sectors and markets, and","page_number":228,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"690ddc74-6cde-41fa-94e7-5b12fd40b7ac","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":228,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"5fb36657-2204-4273-b8fa-7854a230a8f8","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":228,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"ccf38155-e24e-40b5-8abd-5870137d209a","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":228,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"788306c1-ab43-43fb-aa47-0db1dbb20b5c","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":228,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"516bf024-67fe-490d-adf7-52ade885792b","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":228,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"ae66e09d-b81f-450c-aa1b-1f35c666c4dd","block_type":"box","text":"Corporate Disclosures","page_number":228,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"cb10fe76-9bcf-49e0-83ce-3e3bedf7e192","block_type":"box","text":"13","page_number":228,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"28d97d23-85ec-4f59-b10c-8e26f530fe7d","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":228,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"1fd22a2f-534e-4a39-871f-b9422a0889bb","block_type":"box","text":"assess whether the company’s strategy is aligned with the low-carbon transition. As a general point, the team looks","page_number":228,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"a2d17c68-41c1-4054-97d2-876bb5384d0d","block_type":"box","text":"to companies that are impor tant to the transition to a low-carbon economy to explain the strategy and governance","page_number":228,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"6b3e03f6-db62-4998-accf-074efec6daae","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":228,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"a70bc8b6-d6f1-4cfb-a489-37224bf63cca","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":228,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"56c34cf5-632f-426c-b8c5-16b356d1e81d","block_type":"box","text":"temperature rise to 1.5°C above pre-industrial levels. This would typically include a long-term strategy to achieve","page_number":228,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"025357aa-4460-490a-a14a-39bee582a7b6","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":228,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"0bc9cf29-85d2-4d98-a809-3c4be0749d57","block_type":"box","text":"(2) low-carbon transition-related repor ting. Standardized disclosure of sustainability-related data suppor ts investors","page_number":228,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"6a820336-ee07-4e4a-8144-9789293a238f","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":228,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"5c139d9c-4947-4288-a52b-0f9232bc6af8","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":228,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"f1bb5df6-4627-4898-915f-a14fb6a0669f","block_type":"box","text":"14, 15","page_number":228,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"a26f9420-40ef-4180-a9bb-acc9fd9aafe8","block_type":"box","text":"IFRS","page_number":228,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"44c817f8-fce5-4875-a493-51c96e12dec8","block_type":"box","text":"S1 addresses the general requirements of sustainability repor ting and IFRS S2 sets out the disclosures that","page_number":228,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"c1908950-6d0f-4af1-86df-b6bdd4a891da","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":228,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"fdb1952a-8f4d-46e3-9637-5a8a81c9d844","block_type":"box","text":"transition-related risks and oppor tunities. This includes receiving independent, third-par ty assurances, as audit","page_number":228,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"569bbefb-f218-4cdc-a2cc-c59c406d809d","block_type":"box","text":"and assurance standards are developed.","page_number":228,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"9f9fceeb-e6cb-40f5-ae37-2f19d8127e36","block_type":"box","text":"12","page_number":228,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"4225467f-301e-4fe0-b78d-90bc4fb0bee3","block_type":"box","text":"These Guidelines are not intended to limit the analysis of individual issues at specific companies or provide a guide","page_number":228,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"dbacf79c-8629-4081-8f4c-ecf4d7b46e99","block_type":"box","text":"as to how the dedicated team will engage and/or vote in every instance. The Guidelines are applied by the dedicated","page_number":228,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"074e4e77-e90a-453f-9aa1-5884b72f5585","block_type":"box","text":"team with discretion, on a case-by-case basis, taking into consideration the range of issues and facts specific to the","page_number":228,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"45175705-b240-4368-b5ab-e329cdc09ccf","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":228,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"5501f556-aa5a-472c-8fce-027c7eb38e7e","block_type":"box","text":"13","page_number":228,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"e2e29e13-92c6-46d6-a4ed-ac0d13ce6598","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":228,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"af0079e2-ed90-47a6-984e-dea6d394902d","block_type":"box","text":"repor ting methodologies are nascent. In addition, cer tain disclosures related to a company’s plans for adapting their","page_number":228,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"060d8f1c-8c13-4c97-ae97-5853beb483f0","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":228,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"f35b5153-088e-40fe-be33-0fcea0479a47","block_type":"box","text":"14","page_number":228,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"e3606ffd-7d6e-45e6-bcba-21fa1d4998a4","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":228,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"2ca39fa5-042e-431a-85bc-a15ed32cd331","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":228,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"3138fd21-e525-45f9-afb2-053214e9f65b","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":228,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"1715036a-e08c-4106-a0ff-328a0740acd1","block_type":"box","text":"converged under the ISSB. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":228,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"7bc5ffd7-2421-4668-aec5-869d2d69f9dd","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":228,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"2ac4b656-d106-420c-a050-7761409f9376","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":228,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"34acd3c0-97fc-4ecf-b472-3d09754943e9","block_type":"box","text":"15","page_number":228,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"66b17367-9ea1-4995-941e-2016bdf3edfd","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":228,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"61b857e9-e3dd-4ce4-a669-7ed7dce58283","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":228,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"ebd314bc-2c88-44c7-a007-99f15c4e5c8f","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":228,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"c3e1dffb-3b79-4807-928e-bc7e8bd046a2","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":228,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"7173dac7-c9bb-4897-bfc9-2d5ef08984a2","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":228,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"097f7ed4-0d67-40db-b18e-2639b8bfd969","block_type":"box","text":"BlackRock Investment Stewardship","page_number":228,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f0c3e6da-00ee-4db5-a997-39d892f830e9","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":228,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"d0a03d61-4505-4d19-b39d-0a73b8420a71","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":228,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"599d0f58-5947-4aa5-8329-180cc60b853e","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":229,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"9d36fa4e-7c6a-47bc-99b5-d9b30f4e47f3","block_type":"box","text":"16, 17","page_number":229,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"84ed4361-268d-4b07-9886-b1f2aacb97e3","block_type":"box","text":"In addition, the dedicated team looks to","page_number":229,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"c91e9851-64b5-4817-9e8b-f00fb0a41720","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":229,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"1024b86c-a128-42be-94fc-ebbe9f5cccf8","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":229,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"2f1f4c38-3503-4ce1-8de5-d175bcd37318","block_type":"box","text":"scope 3 emissions reductions. 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The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":229,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"f8e2ade3-609a-4b76-b170-41df4ddd9d82","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":229,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"ef1889ee-8659-4542-b6ed-4d31236277f8","block_type":"box","text":"science-based and net-zero targets in line with the global 1.5°C goal.” Websites accessed in December 2025.","page_number":229,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"6adeb49a-aa50-45af-8b20-793484153492","block_type":"box","text":"18","page_number":229,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"dc92aef4-594d-4a53-afb4-305d22763378","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":229,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"57b1069d-3207-4398-b75f-4cf8982568f0","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. 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Where the dedicated team","page_number":230,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"e77a7559-9798-402b-b44d-1c8f7bc367ed","block_type":"box","text":"determines this is not the case, it may vote against the election of one or more directors who the team identifies as","page_number":230,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"b273e9ae-fd5a-463d-9c99-2fdc0c890e4f","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":230,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"f5cd975d-33fe-4258-b51c-06040ee52325","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":230,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"235685b5-652a-4555-97f4-99c8f08a6a6d","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":230,"box":{"x":69,"y":734,"width":813,"height":11}},{"id":"58821c7d-3d83-43e9-b36a-ea691c547185","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, [that]","page_number":230,"box":{"x":68,"y":749,"width":828,"height":11}},{"id":"0d69128f-6497-4d3d-800f-0d22916d9a0b","block_type":"box","text":"offer the most significant GHG reduction oppor tunities and are most relevant to the company’s business goals.”","page_number":230,"box":{"x":69,"y":764,"width":801,"height":12}},{"id":"63fb5a3d-06d0-4154-9c99-fdad899e6cbd","block_type":"box","text":"Website accessed in December 2025.","page_number":230,"box":{"x":68,"y":779,"width":272,"height":9}},{"id":"ba634686-40fa-4dc5-9a29-1d9534a2f8e5","block_type":"box","text":"22","page_number":230,"box":{"x":69,"y":797,"width":9,"height":5}},{"id":"8127fea0-8afb-41b8-b60c-3d390b95863e","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":230,"box":{"x":84,"y":797,"width":787,"height":11}},{"id":"9857e07b-a7b3-4190-be7b-73e10739c337","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":230,"box":{"x":68,"y":812,"width":500,"height":11}},{"id":"46bbf69a-e9a5-4729-bbcb-6b94252bb70a","block_type":"box","text":"23","page_number":230,"box":{"x":69,"y":830,"width":9,"height":5}},{"id":"d7ea3a37-81c1-4561-aaa3-fe56bb4ac17b","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":230,"box":{"x":84,"y":830,"width":801,"height":11}},{"id":"fa19598f-c465-432d-b170-217ee2fddc17","block_type":"box","text":"information on a company’s sustainability effor ts, operational resilience, or financial condition, among others.","page_number":230,"box":{"x":70,"y":845,"width":782,"height":11}},{"id":"bdd90092-6791-446a-9b12-caee75b2682b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":230,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ad2c89d9-ea69-44fc-ae42-6cbbd7039be0","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 7","page_number":230,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"4064b8e1-f23c-441c-b67e-49d577c45230","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":230,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b1b254c4-64f4-4354-8d8f-60a66d95f79b","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":231,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"29da85f0-c2bd-41d8-8518-d3fc889cd59d","block_type":"box","text":"company has not subsequently made progress towards aligning with the transition to a low-carbon economy, the team","page_number":231,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"72d2ae23-5f2a-40ef-8be8-bb3b951190b5","block_type":"box","text":"may escalate by not suppor ting the re-election of additional responsible directors.","page_number":231,"box":{"x":69,"y":75,"width":582,"height":11}},{"id":"4f74c3be-06b7-4668-a6b3-a978e9b696e7","block_type":"box","text":"24","page_number":231,"box":{"x":653,"y":75,"width":9,"height":5}},{"id":"598500a2-5880-4732-9ae1-c508d53f7a21","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":231,"box":{"x":69,"y":105,"width":528,"height":11}},{"id":"0802a32f-11f3-43d3-94ef-638f3641b093","block_type":"box","text":"In cer tain markets, company management may submit proposals— commonly referred to as “Say on Climate” —","page_number":231,"box":{"x":102,"y":128,"width":807,"height":11}},{"id":"c3fdc4f5-09a0-407f-8a4e-9a62b2dcf153","block_type":"box","text":"seeking shareholder approval of their climate action plans or progress repor ts. The Guidelines consider these","page_number":231,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"0048ebd4-d01c-4057-b6da-4578bb2ca99a","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":231,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"0e289da9-e8d9-4d48-9fcd-03bfa548d567","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally suppor ts management’s climate","page_number":231,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"dff2315d-dc7f-4416-90c3-82cc504ff42a","block_type":"box","text":"strategy proposal if, in the team’s assessment based on these Guidelines, the strategy is aligned with the low-carbon","page_number":231,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"de080262-a07f-4a46-8cef-02866be89337","block_type":"box","text":"transition. Similarly, the dedicated team generally suppor ts management’s proposal on a progress repor t if the","page_number":231,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"dd79f5b9-af53-420a-bca5-5de90a821f84","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":231,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"95fa341f-d509-4122-b62b-0ffc2cd64c42","block_type":"box","text":"transition plan and targets.","page_number":231,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"6d516199-7eaf-4a8e-8fcb-f5d0ffeeeb0c","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":231,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"79dd055f-3e2e-4ce9-97c9-2a4529acfab4","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":231,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"8d08ab0f-bd71-43da-8074-fa71ec999eed","block_type":"box","text":"long as cer tain requirements are met. 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When the dedicated team votes in suppor t of a proposal, it is not necessarily","page_number":231,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"f8d13910-6d47-4681-be2d-2c38c8141fba","block_type":"box","text":"endorsing every element of the proposal or the reasoning, objectives, or suppor ting statement of the proponent.","page_number":231,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"ecaa2023-a5c0-4198-89a0-ecce49617386","block_type":"box","text":"In addition to financial materiality, the Guidelines consider the proposal’s relevance to the company’s low-carbon","page_number":231,"box":{"x":102,"y":392,"width":802,"height":12}},{"id":"f9deeb55-fbc2-4a26-9a2b-47bdd2b4c50a","block_type":"box","text":"transition strategy and targets. The dedicated team assesses the implications for, and the relevance to, the","page_number":231,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"b919e324-2240-4805-a745-ecb6bb083518","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may suppor t","page_number":231,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"e887e29d-ef89-4c23-a55f-eca9cd24d629","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":231,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"1011142a-f1bd-4627-a5b0-05eede1b544e","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"713bb79a-d483-447b-afb6-ff44e4f3abd8","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":231,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"ebc3a1e9-ec65-40cb-a4d3-c340db539848","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":231,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"b253fcf2-7b94-4931-8356-c5ef2c426e9a","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"7ac122c5-b3f7-46f0-9675-3cc08285678a","block_type":"box","text":"Align scope 1 and 2 GHG emissions reduction targets to, and/or discuss how their targets align with, a long-term","page_number":231,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"d83de545-e03c-48fe-a8b6-821d1eaa81e8","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":231,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"afa3c9ab-a0dc-490e-8657-ad2b5f3d31a8","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"23f6bbee-44ac-4ab7-9bc6-4b906e7be4d1","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":231,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"f033dd65-33d2-419f-991b-5bee7316acad","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"f834386c-beb3-436f-93c1-935f182954fb","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":231,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"1e4ce7f4-6d16-4d33-9844-452f69fba2c6","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":231,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"d6c8e6da-2b7e-42bb-8659-f439c50fdcec","block_type":"box","text":"25","page_number":231,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"85881eb8-4c61-4541-96bb-e651dfde49bb","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":231,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"4a0dcfda-8143-46b7-957f-395dcce928b7","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":231,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"d33205ea-793a-4b4c-b29c-056d56b94079","block_type":"box","text":"RELATED MATTERS","page_number":231,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"3cf2dbc7-3189-4389-b438-e6d528d03523","block_type":"box","text":"There are other business items not covered above that may be put to a shareholder vote that could address","page_number":231,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"793aae4c-f7ea-46c8-8304-2a84cd24ce8b","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. 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Some companies, in light of their long-term strategy, may decide to include relevant","page_number":231,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"6600aa43-9156-41ec-9741-9147d577bf3c","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. 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Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":232,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"9799cf39-3c31-414e-b857-382658b30da4","block_type":"box","text":"strategy and risk management.","page_number":232,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"056b6fd3-eb35-41c2-846e-febb68e73393","block_type":"box","text":"Auditors and audit-related issues","page_number":232,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"0a1c1090-cd7b-40cc-8993-449dbfecc7a3","block_type":"box","text":"For companies with material climate or transition risks or oppor tunities in their business models, the dedicated","page_number":232,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"e1a6e127-fa07-44f8-a4c1-de24047b021e","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":232,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"b49a483c-877e-4500-b180-61c146bc5afa","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":232,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"141cc82b-6a63-495b-8463-1644123f3112","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":232,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"c2852af8-51e8-4b81-9e43-2b9e5f3ae0da","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":232,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"6945979d-5cfe-4df3-aaf0-061646a93819","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":232,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"b4d91f63-72bd-4866-b4d4-f9dd9a663343","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":232,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"b3ac4012-435f-466f-a765-58ea3c74f936","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":232,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"093c2426-ec16-4d60-920f-066a861e2b23","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":232,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"3ab9985b-6249-4ad5-a31b-5115ddef52b9","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":232,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"7e1e3381-d593-4a7d-afca-25e1c9773560","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":232,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"767b95a9-555d-49c8-b076-8f08887b7ff4","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":232,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"efc41f05-8f4f-4ecc-86c6-fd80499e12f5","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":232,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"e89b5fe1-a534-48dc-83ee-818b509bd652","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":232,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"be10fdfc-89da-4409-8885-ab5ffaaf131b","block_type":"box","text":"stakeholders.","page_number":232,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"debdfa39-7849-43a0-b343-c8585f29c366","block_type":"box","text":"26","page_number":232,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"3c27b072-ec0b-44df-a413-b446843aa4ca","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":232,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"5eec00fd-e189-476a-bdcb-1608e2715b63","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":232,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"57ad983d-834e-435a-a84a-f38288fd05af","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. Similarly, the","page_number":232,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"92586b65-1b59-46ee-a7ab-1e7d596b0734","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":232,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"716e24fb-52f3-460b-8f6a-d94bece9cec3","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":232,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"90c3b696-a0c5-4b90-853b-229fd246aabe","block_type":"box","text":"26","page_number":232,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"32f4ed3d-55e1-4761-967f-cabfed191be6","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":232,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"25073143-11a8-489b-bec5-056a9818b319","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":232,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"08dce3b5-31f7-462b-ad52-93bee6784f0d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":232,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"5f1f0930-ba36-4e63-86d6-fe65c9ba988e","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":232,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"95d52991-9472-4104-b6df-11ad8b6ed0e0","block_type":"box","text":"BNM1026U-6032633-19203487","page_number":232,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"477d902c-f911-4b85-8418-5b00527b64a1","block_type":"box","text":"Appendix 1","page_number":233,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"3db637f2-2570-4eb8-97cb-226957e75924","block_type":"box","text":"Terminology","page_number":233,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"50d17374-65af-47d5-9b20-d4e94b230484","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":233,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"00592514-2ad1-460d-82e4-c6ce3ddacbd9","block_type":"box","text":"Climate risk:","page_number":233,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"9b1a6e6a-ceaa-4df1-9d62-5aaf1cddd591","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":233,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"a1ea697a-99ff-4695-ab3e-02713cb1cf0d","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":233,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"3c52f752-bfcd-40ff-839c-fb9c4ab36448","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":233,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"740d3ad9-7576-421e-8ca3-384955a0917b","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":233,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"4d30a98e-d12e-4d94-8dee-776456d312cf","block_type":"box","text":"The global economic shift toward lower","page_number":233,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"19ed4187-c682-4604-ae4c-8e76c4ad219c","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":233,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"fcf28469-71c1-4261-a02e-fb7c0fa6a282","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":233,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"c0c71788-d286-4680-9fa7-b33e867e2c00","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":233,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"6336b647-61ca-49f7-9b93-3b87ae50cd0b","block_type":"box","text":"Decarbonization:","page_number":233,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"99ff52ba-425b-470a-9685-2a8cf5106a9b","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":233,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"05646bd4-c6ba-4893-9d2a-7e09368d71ec","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":233,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"b7418148-10b5-4a4b-9ca4-dee1e6a7c0c4","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":233,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"11da51d0-94f9-4176-bac1-015692ed3fe0","block_type":"box","text":"e.g., methane.","page_number":233,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"72172bd3-f4cc-4ed5-993f-6d38555d1a15","block_type":"box","text":"Climate-related risks and opportunities:","page_number":233,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"d45f9ea9-b8ec-46cf-acf0-4154c16f10d2","block_type":"box","text":"The investment oppor tunities and risks associated with the transition","page_number":233,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"b4d13475-a5c4-4387-a105-bab35e3f3769","block_type":"box","text":"to a low-carbon economy, including transition risks and oppor tunities and physical risks and oppor tunities in adapting","page_number":233,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"56f59452-65db-4f15-af45-a4f64c58cea3","block_type":"box","text":"to physical climate change.","page_number":233,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"33d0f91e-680d-4f45-9147-1297f393a940","block_type":"box","text":"Climate-related transition plan:","page_number":233,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"7f300ace-218d-41ee-9be8-7b2c01629fcd","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":233,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"eea2bda8-8ea6-4307-8159-c26ec726780a","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":233,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"d6b01b8d-d4e3-4cae-8790-6584b3f278f0","block_type":"box","text":"greenhouse gas emissions.”","page_number":233,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"717a42ee-c2cb-459a-91eb-0bbfd5e5548f","block_type":"box","text":"27","page_number":233,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"95052147-5097-4991-93f4-a07261485e2b","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":233,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"eae1f9e9-5533-4c9d-9798-f2d350c3403c","block_type":"box","text":"Targets that “","page_number":233,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"2f253282-0a1d-4acb-bc42-491f8dbb2591","block_type":"box","text":"are in line with what the latest climate science","page_number":233,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"32635720-cdf9-475d-9ba5-74e9db60fe6c","block_type":"box","text":"deems necessary to meet the goals of the Paris Agreement — limiting global warming to 1.5°C above pre-industrial","page_number":233,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"6b58c85a-9e54-4944-b059-c003be2889e8","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":233,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"60dc9443-c5cd-434d-bed7-7f8aee101321","block_type":"box","text":"global warming to 1.5°C. They define how much and how quickly a business must reduce its emissions to be in line","page_number":233,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"77f3cebf-44e6-42c2-ac0c-7fa2737750f2","block_type":"box","text":"with the Paris Agreement goals.”","page_number":233,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"0e6f3e6b-a0dc-4def-84ba-8820b7c80547","block_type":"box","text":"28","page_number":233,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"a66117a7-6fbe-4b37-ac49-b437c95686e1","block_type":"box","text":"Scope 1:","page_number":233,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"ebda5af1-698f-4906-b8ce-eb20712ba2c8","block_type":"box","text":"Direct GHG emissions. Direct GHG emissions occur from sources that are owned or controlled by the","page_number":233,"box":{"x":172,"y":498,"width":718,"height":11}},{"id":"61c5e307-e90a-4608-889a-8e92c1c5af50","block_type":"box","text":"company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions","page_number":233,"box":{"x":69,"y":513,"width":836,"height":11}},{"id":"71fef281-aae2-42a7-9615-bc6828ea6563","block_type":"box","text":"from chemical production in owned or controlled process equipment.","page_number":233,"box":{"x":68,"y":528,"width":489,"height":11}},{"id":"c10056b6-d94e-42b3-a30a-5ffa098ca0f9","block_type":"box","text":"29","page_number":233,"box":{"x":559,"y":529,"width":9,"height":4}},{"id":"1d3aded5-2c71-4d02-95a3-2f605f15abf6","block_type":"box","text":"Scope 2","page_number":233,"box":{"x":101,"y":551,"width":59,"height":11}},{"id":"c01c7f3d-a2e0-46dd-9c26-a02171490946","block_type":"box","text":": Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of","page_number":233,"box":{"x":162,"y":551,"width":685,"height":11}},{"id":"20375a17-293a-4712-8d8f-9060a0da19b4","block_type":"box","text":"purchased electricity [steam, and heating/cooling] consumed by the company. [It] is defined as electricity [steam,","page_number":233,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"77055c22-6d24-442e-87c1-57efbb9f6655","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":233,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"c01c045f-41ae-40c0-a2de-49120a3ba997","block_type":"box","text":"30","page_number":233,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"815812db-d438-4a7e-8dc3-4b12bab2a6e9","block_type":"box","text":"Scope 3:","page_number":233,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"a2288f51-4f1a-472a-9a81-ace1aaa73c74","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional repor ting category that allows for the treatment","page_number":233,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"d76f679d-21f6-4ee8-9b15-13e69481e575","block_type":"box","text":"of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur","page_number":233,"box":{"x":69,"y":619,"width":803,"height":11}},{"id":"c1b9a7b0-2954-4666-8f77-30e7964e31b9","block_type":"box","text":"from sources not owned or controlled by the company.","page_number":233,"box":{"x":68,"y":634,"width":386,"height":11}},{"id":"a7730594-a14a-410c-bc0a-35b9ce9ef75c","block_type":"box","text":"31","page_number":233,"box":{"x":456,"y":635,"width":9,"height":4}},{"id":"4c5ee7ef-ec48-4257-a323-64f6fa20dfa7","block_type":"box","text":"27","page_number":233,"box":{"x":69,"y":679,"width":8,"height":4}},{"id":"41939fa6-8fd6-4937-acb9-c0f4b9c71bc0","block_type":"box","text":"As defined by the International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023..","page_number":233,"box":{"x":83,"y":679,"width":821,"height":11}},{"id":"3dbbdff2-4d1c-4b4c-b944-4e46a2c54812","block_type":"box","text":"Several jurisdictions are basing their own transition plan disclosure frameworks on the IFRS S2 definition. We","page_number":233,"box":{"x":69,"y":694,"width":779,"height":11}},{"id":"ddcf0c5c-46a6-434c-b68f-26b0a7e2c110","block_type":"box","text":"anticipate transition plan disclosure becoming mandatory in an increasing number of jurisdictions over the near term.","page_number":233,"box":{"x":69,"y":709,"width":836,"height":11}},{"id":"9e003361-89d9-402b-adaa-bd6e8e1b1ae2","block_type":"box","text":"28","page_number":233,"box":{"x":69,"y":727,"width":9,"height":4}},{"id":"a27ed7cb-e844-4f5c-b971-af04ea602fad","block_type":"box","text":"As defined by the Science Based Targets initiative (SBTi). SBTi “is a corporate climate action organization that","page_number":233,"box":{"x":83,"y":726,"width":785,"height":12}},{"id":"b11dd141-467d-4808-8699-0ced78142046","block_type":"box","text":"enables companies and financial institutions worldwide to play their par t in combating the climate crisis. 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