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I-23","page_number":9,"box":{"x":545,"y":174,"width":364,"height":9}},{"id":"2b1ef337-2ebb-4541-a782-d699e3e13a8c","block_type":"box","text":"Computation of Offering Price Per Share . . . . . . . . . . . . . . . . . . . .","page_number":9,"box":{"x":69,"y":190,"width":446,"height":11}},{"id":"4113998c-5d67-4872-a553-9c24ef2fffd4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-24","page_number":9,"box":{"x":521,"y":190,"width":388,"height":9}},{"id":"a2d61071-0363-4a96-8265-ca2796574f20","block_type":"box","text":"Por tfolio Transactions and Brokerage . .","page_number":9,"box":{"x":69,"y":206,"width":283,"height":12}},{"id":"5b9c477d-62a5-4f6e-a8eb-f2c43e0c0b03","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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Write or sell put options, call options, straddles, spreads, or any combination thereof, except for","page_number":15,"box":{"x":134,"y":778,"width":706,"height":11}},{"id":"74ed71cc-257d-4011-b1d9-ebcf6f9109ab","block_type":"box","text":"transactions in options on securities and securities indices, futures contracts and options on futures contracts.","page_number":15,"box":{"x":101,"y":793,"width":794,"height":11}},{"id":"9584e1a6-e5c9-4a5b-b7bb-44edde563879","block_type":"box","text":"6. Purchase securities of companies for the purpose of exercising control.","page_number":15,"box":{"x":134,"y":816,"width":527,"height":11}},{"id":"94da39bc-9f92-42ab-be7d-4df9295f96cf","block_type":"box","text":"7. Purchase securities on margin, make shor t sales of securities or maintain a shor t position, except that","page_number":15,"box":{"x":135,"y":838,"width":756,"height":12}},{"id":"d90f1483-372c-4014-8f46-875895e15873","block_type":"box","text":"(a) this investment limitation shall not apply to the Fund’s transactions in futures contracts and related options","page_number":15,"box":{"x":102,"y":853,"width":791,"height":12}},{"id":"590fcacf-e953-4f9f-8b28-b9e23947374f","block_type":"box","text":"or the Fund’s sale of securities shor t against the box, and (b) the Fund may obtain shor t-term credit as may be","page_number":15,"box":{"x":102,"y":869,"width":790,"height":11}},{"id":"66383695-d2e1-4138-8dd2-5f55c9fd11cb","block_type":"box","text":"necessary for the clearance of purchases and sales of por tfolio securities.","page_number":15,"box":{"x":102,"y":884,"width":531,"height":11}},{"id":"d0c083b4-8663-472c-bc30-1c963bc2a307","block_type":"box","text":"I-6","page_number":15,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"6c165a15-e679-4579-9d81-bfc6329d5f99","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":15,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"474807af-ee02-4a21-afcc-ce5ed90eb465","block_type":"box","text":"8. Purchase or sell commodity contracts, or invest in oil, gas or mineral exploration or development","page_number":16,"box":{"x":134,"y":45,"width":707,"height":11}},{"id":"4d1d36d4-f316-40b1-b39b-440e4f54f6ae","block_type":"box","text":"programs, except that the Fund may, to the extent appropriate to its investment policies, purchase securities of","page_number":16,"box":{"x":102,"y":60,"width":795,"height":11}},{"id":"cd02d0bb-a2ca-4f28-bc34-1387e509f573","block_type":"box","text":"companies engaging in whole or in par t in such activities and may enter into futures contracts and related","page_number":16,"box":{"x":101,"y":75,"width":755,"height":11}},{"id":"7c347950-04e5-4d2b-95c4-aec46f517819","block_type":"box","text":"options.","page_number":16,"box":{"x":102,"y":90,"width":55,"height":11}},{"id":"2b1f1bde-c49d-4f0e-a550-6ff75bf44949","block_type":"box","text":"9. Make loans, except that the Fund may purchase and hold debt instruments and enter into repurchase","page_number":16,"box":{"x":134,"y":113,"width":745,"height":11}},{"id":"88c23924-489f-43c2-b01d-b0202c9d5700","block_type":"box","text":"agreements in accordance with its investment objective and policies and may lend por tfolio securities.","page_number":16,"box":{"x":102,"y":128,"width":729,"height":11}},{"id":"d3835dd3-cbb4-46cf-a07f-fc95dbb5e9c1","block_type":"box","text":"10. Purchase or sell commodities except that the Fund may, to the extent appropriate to its investment","page_number":16,"box":{"x":135,"y":151,"width":735,"height":11}},{"id":"46d69347-6f0f-4162-9bc4-4027823df912","block_type":"box","text":"policies, purchase securities of companies engaging in whole or in par t in such activities, may engage in","page_number":16,"box":{"x":102,"y":166,"width":744,"height":11}},{"id":"c7178b3d-7b9f-4bb3-af74-4407a11807e3","block_type":"box","text":"currency transactions and may enter into futures contracts and related options.","page_number":16,"box":{"x":101,"y":181,"width":565,"height":11}},{"id":"6684edce-17ef-44ff-94cf-3d729bbf3024","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":16,"box":{"x":102,"y":204,"width":494,"height":11}},{"id":"2682ef01-0ad6-4e12-9b41-677d3f3b5ace","block_type":"box","text":"The following notations are not considered to be par t of the Fund’s fundamental investment restrictions and are","page_number":16,"box":{"x":101,"y":226,"width":799,"height":11}},{"id":"f6b50ad6-b578-4a51-8bec-6c6edd60b54c","block_type":"box","text":"subject to change without shareholder approval. With respect to the fundamental policy relating to issuing senior","page_number":16,"box":{"x":69,"y":241,"width":803,"height":11}},{"id":"a279d1ac-7982-4dfd-b3ed-dee561f7db8b","block_type":"box","text":"securities above, the Investment Company Act, including the rules and regulations thereunder, generally prohibits the","page_number":16,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"2df80c9e-f4d3-4168-8d6c-7833cca24bb5","block_type":"box","text":"Fund from issuing senior securities (other than cer tain temporary borrowings) unless immediately after the issuance","page_number":16,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"56b3eb05-c21d-446b-a993-66375fce1915","block_type":"box","text":"the Fund has satisfied an asset coverage requirement with respect to senior securities representing indebtedness","page_number":16,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"8a5ec059-5c52-4782-b37a-e5975fc3e24e","block_type":"box","text":"prescribed by the Investment Company Act. Cer tain trading practices and investments, such as derivatives","page_number":16,"box":{"x":70,"y":302,"width":758,"height":11}},{"id":"01a020d2-3b7a-4fed-8f35-8dd17636c0aa","block_type":"box","text":"transactions, may be treated as senior securities. Prior to the adoption and implementation of Rule 18f-4 under the","page_number":16,"box":{"x":68,"y":317,"width":824,"height":11}},{"id":"9f7cd576-b00d-45a3-8e98-2cdf0c847861","block_type":"box","text":"Investment Company Act, when the Fund engaged in a derivatives transaction that creates future payment","page_number":16,"box":{"x":70,"y":332,"width":754,"height":11}},{"id":"0d6de3e7-8018-46eb-b146-356e15e4606e","block_type":"box","text":"obligations, consistent with SEC staff guidance and interpretations, the Fund was permitted to segregate or earmark","page_number":16,"box":{"x":69,"y":347,"width":832,"height":11}},{"id":"df69ebe9-c63e-449f-9f9f-d453b7c129bf","block_type":"box","text":"liquid assets, or enter into an offsetting position, in an amount at least equal to the Fund’s exposure, on a mark-to","page_number":16,"box":{"x":70,"y":362,"width":823,"height":11}},{"id":"9f12247d-9958-4d5f-ab55-7a80d9edc80e","block_type":"box","text":"market basis, to the transaction, instead of meeting the asset coverage requirement with respect to senior securities","page_number":16,"box":{"x":69,"y":377,"width":837,"height":12}},{"id":"08c8b317-a2a3-4a31-bf8a-04dfecfdf6cf","block_type":"box","text":"prescribed by the Investment Company Act. The SEC staff guidance and interpretations were rescinded in connection","page_number":16,"box":{"x":70,"y":392,"width":832,"height":12}},{"id":"338bdc92-8fcb-4630-9438-f7c21574ce0b","block_type":"box","text":"with the adoption of Rule 18f-4, and the Fund now complies with Rule 18f-4 with respect to its derivatives","page_number":16,"box":{"x":68,"y":407,"width":753,"height":11}},{"id":"edccacc2-0aae-4c6d-9b90-8f4202c48ad8","block_type":"box","text":"transactions. Thus, the fundamental policy relating to issuing senior securities above will not restrict the Fund from","page_number":16,"box":{"x":68,"y":423,"width":820,"height":11}},{"id":"692b7d70-1cc1-4df0-897a-1f73dc3b4eb2","block_type":"box","text":"entering into derivatives transactions that are treated as senior securities so long as the Fund complies with Rule","page_number":16,"box":{"x":69,"y":438,"width":809,"height":11}},{"id":"3c7190c7-c66a-4747-820a-a9fca975bf68","block_type":"box","text":"18f-4 with respect to such derivatives transactions.","page_number":16,"box":{"x":70,"y":453,"width":364,"height":11}},{"id":"bd11cb84-368b-446f-ae6d-643698a011f3","block_type":"box","text":"For purposes of investment restriction 1 above, with respect to the Fund’s industry classifications, the Fund","page_number":16,"box":{"x":102,"y":475,"width":768,"height":12}},{"id":"87c8d08e-437f-44c3-b8f7-419549267e3d","block_type":"box","text":"currently utilizes any one or more of the industry sub-classifications used by one or more widely recognized market","page_number":16,"box":{"x":69,"y":491,"width":817,"height":11}},{"id":"481c0dd0-b21a-45ad-9040-ee7381558d20","block_type":"box","text":"indexes or rating group indexes, and/or as defined by Fund management. The policy also will be interpreted to give","page_number":16,"box":{"x":70,"y":506,"width":817,"height":11}},{"id":"e7a3e3ea-662f-4855-8e84-e73f8786b9b3","block_type":"box","text":"broad authority to the Fund as to how to classify issuers within or among industries.","page_number":16,"box":{"x":69,"y":521,"width":597,"height":11}},{"id":"9152d706-1b99-4a06-bcde-6c94d71611a0","block_type":"box","text":"While cer tain swaps are now considered commodity interests for purposes of the Commodity Exchange Act and","page_number":16,"box":{"x":101,"y":543,"width":793,"height":12}},{"id":"e0bf9212-4910-4588-beb6-d8223a18f478","block_type":"box","text":"the rules thereunder, at the time of the Fund’s adoption of fundamental investment restrictions no. 5, 8 and 10","page_number":16,"box":{"x":68,"y":559,"width":796,"height":11}},{"id":"cecbd292-7d97-4004-bccb-4a7f9e61f603","block_type":"box","text":"above, many swaps were treated as securities for purposes of the Fund’s compliance with applicable law.","page_number":16,"box":{"x":69,"y":574,"width":752,"height":11}},{"id":"6d02dabb-9ba2-41a6-ab12-a68bd3431fe0","block_type":"box","text":"Accordingly, fundamental investment restriction no. 5, which does not restrict transactions in options on securities","page_number":16,"box":{"x":68,"y":589,"width":817,"height":11}},{"id":"faad82ca-12b6-45eb-86b0-71b7e905c86b","block_type":"box","text":"and securities indices, and fundamental restrictions no. 8 and 10 are being interpreted to permit the Fund to engage","page_number":16,"box":{"x":69,"y":604,"width":834,"height":11}},{"id":"0a1155ef-ac8d-477d-882f-494e813b4056","block_type":"box","text":"in transactions in swaps and options on swaps, as applicable, related to financial instruments, such as securities,","page_number":16,"box":{"x":70,"y":619,"width":815,"height":11}},{"id":"de82396c-5cf4-4a0d-b649-5223fa33641e","block_type":"box","text":"securities indices and currencies, but not to engage in transactions in swaps or options on swaps related to physical","page_number":16,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"ad1628b7-1d4e-474f-b898-dad8872f9ecc","block_type":"box","text":"commodities, such as oil or metals.","page_number":16,"box":{"x":69,"y":650,"width":254,"height":10}},{"id":"7c637c8c-b766-4217-a353-107765d8b077","block_type":"box","text":"Under its non-fundamental investment restriction, which may be changed by the Board without shareholder","page_number":16,"box":{"x":102,"y":672,"width":760,"height":11}},{"id":"9c943ff2-9b79-4274-ad2e-6cfbdd89585a","block_type":"box","text":"approval, the Fund may not:","page_number":16,"box":{"x":69,"y":687,"width":197,"height":11}},{"id":"11088b71-a46a-4c7f-8994-583e1ba99905","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":16,"box":{"x":102,"y":710,"width":742,"height":11}},{"id":"78e50e7c-2292-4d42-8328-edd82135d94a","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":69,"y":725,"width":759,"height":11}},{"id":"7dde8597-3c93-49e4-bfbf-fc829adc5735","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of funds”","page_number":16,"box":{"x":70,"y":740,"width":829,"height":11}},{"id":"f8d9f141-d1c4-4ce4-9821-d511660e2fa3","block_type":"box","text":"provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are purchased by","page_number":16,"box":{"x":70,"y":755,"width":808,"height":11}},{"id":"d309c422-dd3f-4b1e-b3d4-c3f291649633","block_type":"box","text":"another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":16,"box":{"x":69,"y":770,"width":763,"height":12}},{"id":"c57c8b61-e967-4b29-b585-70e8a14dd48d","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":793,"width":771,"height":11}},{"id":"4a2a520b-c97b-4278-842e-a9d3c5be45d4","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":808,"width":822,"height":11}},{"id":"930daf0c-0f9a-4333-94f1-134e70a78c5d","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":823,"width":803,"height":12}},{"id":"c5ff104f-3e1d-42f2-8213-dd2bda689063","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":838,"width":835,"height":12}},{"id":"6451b611-e235-4989-b29f-0f1ecce8a636","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":853,"width":833,"height":11}},{"id":"b40c90ab-3d7d-47e4-9656-dd55386a7c89","block_type":"box","text":"investment without undue market or tax consequences.","page_number":16,"box":{"x":70,"y":869,"width":393,"height":11}},{"id":"86bab6aa-3ed2-49d4-9015-1b0c23662f38","block_type":"box","text":"I-7","page_number":16,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"5e4c2803-1dd1-4932-a011-bed391d9d5c6","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":16,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"70268625-698f-4f04-8033-76568003f6c1","block_type":"box","text":"III. Information on Trustees and Officers","page_number":17,"box":{"x":69,"y":45,"width":290,"height":9}},{"id":"ccdf003a-3873-4278-bacc-e316424fb81c","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":"6864bf9e-14a4-4c30-9c2f-afe60b8fa77d","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":"eb2cab1e-9590-4b2f-a1be-5dbabb59b87d","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":"d76e2e4d-02d1-4aa1-a903-6aabc6671aa5","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":"58e2f9d3-7932-4cc6-a90d-2e52586c5ab5","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":"24b61456-3445-4ff6-bb0e-e7edef2b8c97","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":"a0f02696-b25b-4c1a-b8b2-6d97172fc327","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":17,"box":{"x":70,"y":158,"width":335,"height":11}},{"id":"64cbdd88-37da-455f-943f-dd48d5ce2eba","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":"b45476eb-367c-4be0-8bc9-3f77a20a60e6","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":"cafd347d-a251-4248-b6be-38ff903abfda","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":"e18bbbab-395b-407e-9217-fd616d7065dc","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":"060233f8-54b8-4339-a864-b6268d55aac2","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":"f2f528a2-7c8a-4432-9471-34888bd9aeb0","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":"038555ca-a496-4a79-b796-b7083985ef86","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":"f0c8bb14-0933-4a9c-afa7-377d19721819","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":"b0ee3cd5-ed7f-4f4f-acbc-2807285b1e09","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":"ba9f51ab-1784-4238-bd35-3bbc29cfbe9c","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":"36cf8923-f25d-4305-8c51-e20b0289a51d","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":"c59f25fb-f885-4be3-a6e2-3fd448e08832","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":"c1b0c380-5160-48b8-92ce-24b7cd48f808","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":"6b74fa10-f227-41b7-9cb2-638472e504d8","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":"dae737d9-3b4a-4d06-ac66-7942fea10d4a","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":"a9be751f-0c7d-4b6c-ad76-aa61ea30b507","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":"f6b8315c-f05a-4ed1-a403-9c05b8891ddd","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":"d9ef19c1-648a-4e4e-bb95-cfd303b0d345","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":"0ff0182f-509a-4e05-9bed-ca7aa93caaf0","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":"456ab7fa-6179-4c70-beb9-d9a55d64adc6","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":"e3855f44-0941-4570-9952-d7a85280025e","block_type":"box","text":"the operations of the Fund.","page_number":17,"box":{"x":68,"y":491,"width":192,"height":11}},{"id":"1933f00e-5f21-426a-a5ca-039f05af6b8d","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":"d477e0b9-4230-4826-9644-a39d980ae28b","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":"8ce56fac-c0c5-4025-b708-0e1d68630255","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":"5002ce66-0824-42bf-91ca-ce8b7c15eef9","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":"b751e08f-59ad-4eb7-ad11-53a0dc27ad90","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":"8973378f-ca40-49c4-8f7e-23cc53fe690d","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":"365dcaf5-3e20-4d80-8240-301332a857e7","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":"43107e6c-c331-4401-9142-44906544892d","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":"ae32fc71-4d3b-4c3e-9607-ebe0f2506778","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":"2ca9a8b4-2766-4030-916c-17f0b98a7665","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":"e46a5c05-bf53-4ce4-b60f-53a0029ef757","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":"a738ef0f-f15a-4906-893e-a0711385d229","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":"d343bd78-a620-4fa1-bd5d-d2bd9eed6b91","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":"f7e5784c-bfba-4aed-9adc-59a618b37976","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":"a0061537-8e8e-41fd-87b8-87a91af3c58b","block_type":"box","text":"per forming their oversight responsibilities.","page_number":17,"box":{"x":70,"y":725,"width":299,"height":11}},{"id":"cd94bd5d-abb5-493f-b285-3433adcb5a0c","block_type":"box","text":"Audit Committee.","page_number":17,"box":{"x":101,"y":748,"width":122,"height":9}},{"id":"e43316ed-9942-4417-a9ea-6d2f9db42fc7","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":"deb3ef9f-03e2-4eb0-926a-fe6b31d41f33","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":"4c30f1c3-eba3-47ff-94cf-9b9da6ff6549","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":"b938df99-ec6c-40a3-b3fa-23c159f7037a","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":"4661fcec-276d-4e88-81e8-c51f1a9e94dc","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":"c63d9a7f-5d96-48d7-8bc5-e18738845dce","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":"66c30da0-5d06-45f3-a422-33dc3debe496","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":"b6366fca-0d95-4524-8621-be5a5be4c014","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":"bf14a9fd-871a-488b-ae70-82bf0f396beb","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":"0480c5b3-dda3-4872-9edc-d4e6e4ad0787","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":"868c0818-99f2-4c14-97d7-3ebc593b449a","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":"00edc82a-ac54-4a9e-8924-6f9b47bdd7ee","block_type":"box","text":"I-8","page_number":17,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"866b2b78-772a-438f-8636-098f7d9d6379","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":17,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9e88f31d-5483-4a86-b1d6-01d7c18f4b7a","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":"f03fee50-eeba-4c13-83c8-aaed502eb9dd","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":"1a1d80cc-51a8-48ff-bbc8-c067d98be6a6","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":"51b27588-b218-48af-828f-d0f21f77100c","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":"1262c438-096f-4944-a559-43bc3112fbf9","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":"1eb6a330-7eb4-4de2-ab1c-03d83ef38e86","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":"b058c051-fa22-4767-adc7-c2e38062f12d","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":"8e9d6c51-39bf-40b6-9810-f39c990c1519","block_type":"box","text":"Governance and Nominating Committee.","page_number":18,"box":{"x":102,"y":158,"width":286,"height":11}},{"id":"5e09e729-9cb1-42da-a4f0-32ccf230a6d1","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":"7e684a9e-2f6b-42eb-af19-bfcea09ff2a8","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":"30cc8c07-837d-4a2d-8ce8-1900fa750de7","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":"91734325-657d-4269-b6e5-79a692b0bf54","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":"1f62fd60-42f6-4a33-ad23-bf2717440948","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":"a0e538a0-0dc8-41ed-84bb-c3235cbc5c52","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":"8b23827b-6e2d-4bd8-b7ca-a3e81b6b57c9","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":"1c682cac-d759-461d-97c6-8587dcfccd01","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":"07c7598f-64a6-4543-8b80-881125fa138f","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":"301bc4e6-6c4e-48ca-81cb-8b2b4859ca76","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":"f5748052-1b47-4cc8-a4bd-777f9c61ab6d","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":"4898119c-93c6-4b45-a1fa-d77fa697275e","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":"ad76c7ef-e538-4435-a815-f4daf127979f","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":"4434f552-5fd2-45bb-95b6-17592f9f7644","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":"29b06fe9-0746-4a95-9f6c-a097d18d8cbf","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":"c3f48a2e-a538-490f-b90f-ee4d83688780","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":"efbd1ead-d2fc-43dc-a606-2f41df1d8c68","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":"cdb1b847-cc4d-4f41-8bf7-3e17df5cc375","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":"a5b25cf7-ca39-42cb-9944-18020088964b","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":"cb87f780-ccbb-48c5-a5c7-857743569d5f","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":"c9bd3683-253c-4914-ad85-ef298e27313d","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":"8b1d98cc-e164-4419-9908-588ce6fed7d1","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":"b856e28c-7088-4ae2-a8d4-609b08dec3b9","block_type":"box","text":"Governance Committee met ten times.","page_number":18,"box":{"x":69,"y":491,"width":274,"height":9}},{"id":"91b89427-5b6a-4b7f-b0f6-86318574bc58","block_type":"box","text":"Compliance Committee.","page_number":18,"box":{"x":102,"y":513,"width":168,"height":11}},{"id":"074b0dd5-d4d4-4892-9419-7962ad0f184f","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":"75c29f83-0d03-4b11-a925-722aff023756","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":"c6f55a8c-3c84-4b81-b2a9-27c5cca58394","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":"7f56b6e3-98e3-4785-8773-53e4030e97d4","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":"4d467a62-c752-4b91-8d5f-a25472293258","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":"ea3e539f-d45c-480e-aba0-0a98e8d19142","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":"8965b7c2-621c-4631-8186-b4c891fa3901","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":"427ded53-0389-449f-9077-0ee76097f99c","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":"e2088f46-fb7f-4c23-a7dd-4e4254ad7241","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":"d3bc041a-1ddc-499c-aa90-f9fd9617d509","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":"12296f52-f484-49ed-8ad7-bc99af298ad8","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":"221ad28a-3079-4ed7-8e71-1bed17bcd755","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":"53e19b9c-a82d-485d-87a6-e46b611cff0b","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":"9beed2cf-5084-435a-a131-c6132406e144","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":"9b65bfba-7a69-4bc2-b794-7808199870cc","block_type":"box","text":"Per formance Oversight Committee.","page_number":18,"box":{"x":102,"y":732,"width":248,"height":12}},{"id":"03914582-d512-4a5d-b45f-8d3a5d814aa3","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":"3c436281-ac2e-49cd-9da5-25aa6f46af23","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":"db6f22c3-a001-456e-b77e-b9ab6b254567","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":"f106dae6-3822-4a35-8845-8aac9b439332","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":"72bea233-68d7-4065-96e4-764c0c50181b","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":"7e8347ff-07a1-43dc-8128-19cfb86d4382","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":"9bb36d8c-dbac-4314-9f90-4f62d046a659","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":"72dc2735-f183-4fd3-bc32-2a34ab4c2040","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":"31172ac0-a6e0-49fc-a618-51d26f668fa6","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":"29c87e95-7d9b-40a7-bd3b-9b803a2f636f","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":"7e329588-d95c-445b-acc1-2cc689e1d0ef","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":"09b4fd29-7b45-45ff-91ef-c1d67969c8f8","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":"b9852068-fa0d-46b0-b3cc-51ce4b82cda3","block_type":"box","text":"I-9","page_number":18,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"e2e32cb0-bd27-4fdc-b5ae-a743bae48866","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":18,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dcb73e4e-97b9-40de-8570-c05d5f081483","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":"87368742-6427-49df-9926-5b8033243ac0","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":"3935c45a-a342-4d5f-9008-87a8d376f1db","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":"0cb01e55-72d7-47fb-a24f-119dc2140457","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":"9eb95ac2-e686-4e63-acd2-d72a8c706241","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":"df43b4e4-b6d0-4116-87f5-8bb4e5646592","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":19,"box":{"x":101,"y":128,"width":186,"height":11}},{"id":"95bf5e61-e67c-4e2b-bfa5-f40aed3283e7","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":"ab6b1c96-63a0-411c-8735-4bd94722103d","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":"564ec378-2352-4fd5-9a76-b398c749c9d4","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":"2389304b-ef72-46ef-9321-075f25a94215","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":"1f2477a2-7ee8-4a16-9e3c-325170332d3b","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":"3f8c9463-1706-4061-8059-5325bc521960","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":"1d1bb4b2-17cb-4641-adda-299f45a521a3","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":"21797db4-79ea-4254-9410-6cdc6fbaeada","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":"6c5b1d9a-1de3-4bb3-82dc-5bd4379a7c75","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":"4b5ae69d-0ee4-47f4-acf5-99633cfc541c","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":"224587ce-fa89-4b94-aee8-d325995dccac","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":"9db18ec7-3c2e-42e5-a7ea-f6de84c448fa","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":"aa12d7c1-d647-499a-ad93-2fea56801465","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":"b7a6b459-a8a9-4463-833f-5881e2b8a9b9","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":"db42b9ee-8bea-4078-ae64-b365737253c5","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":"8abc4975-0d20-4ca6-be2e-932dae071f0b","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":"b0ea9d2a-30fe-424e-9457-4781ab163710","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":"1d49829a-d32c-4e57-8710-b04e35b4f847","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":"987256de-f19d-4b69-bced-6c92cfaa0a99","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":"b2b5fecf-b2b3-4ee6-9abd-dd293a87d365","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":"850128ba-bdc0-4bf5-abd0-48b0124ec995","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":"d93034a7-e770-4b92-abef-785f3096d7c7","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":"c98bd6bb-6fbc-41cf-879a-52abade6c5dc","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":"95b126d6-758d-4c68-b16a-0ce95c851cb6","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":"e6629a9f-cdcf-4632-b3a4-2bcdb5edd5cb","block_type":"box","text":"ad hoc","page_number":19,"box":{"x":762,"y":491,"width":47,"height":9}},{"id":"d45c5103-2654-476a-a976-21fddc13918c","block_type":"box","text":"committees","page_number":19,"box":{"x":814,"y":491,"width":82,"height":9}},{"id":"648eb577-317a-4da5-b4bd-d5ed60fea4ec","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":"da729be2-7e98-44e3-8558-292884f94792","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":"856cfea9-f753-4da4-90bd-70fd49e667db","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":"3009727d-ff26-4fd3-b79c-5c729cedf75d","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":19,"box":{"x":68,"y":572,"width":409,"height":9}},{"id":"681c5732-29c7-4800-ad1f-2ecc3ca9eaf1","block_type":"box","text":"Independent Trustees","page_number":19,"box":{"x":70,"y":588,"width":154,"height":11}},{"id":"7448aa15-df41-4781-9e0e-a99a6d17e2b3","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":"6957706b-70c7-4b43-b5ee-deccd59f5d47","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":"a8e481cb-91e1-41ae-8585-020d42e9c2a7","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":"9e520b35-4885-4733-9db7-e7fd7150d876","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":"d4c524c9-c594-43df-b561-9a4d1ec060ae","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":"e9a92507-a8cd-4713-a8e8-32ad0a2c0ee9","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":"2f77a8a6-1726-4023-b1ef-a6e8ecd285e2","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":"aa35752f-6606-4a7f-b7fd-fec7773c4e79","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":"dc584860-16ad-41b6-924a-a15e259adfe5","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":"03ee4b91-dde9-4a08-be18-0c63bd311f5f","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":"3a5d188d-70db-45ee-a123-e33f540eacd5","block_type":"box","text":"Committee and the Per formance Oversight Committee.","page_number":19,"box":{"x":265,"y":755,"width":389,"height":11}},{"id":"1c53624d-5843-4b21-83cf-e3dc7a66c08c","block_type":"box","text":"I-10","page_number":19,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"e8a52e50-467d-4cd7-9c08-fd1f5691b9ba","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":19,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"94a968ad-d8ab-46da-8020-70f906a0c7f7","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":20,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"df3b781d-1cd1-4c0d-ad57-a7f1406fe077","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":"f0f35287-cbe4-4efb-b319-cbf5c384b411","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":"1ab2135b-6fce-4d42-8953-bdd3fbe2af89","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":"6dd077b7-7f9d-4bfc-ae09-419aeb7d6309","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":"e4ff465a-be16-46fa-9dfc-96597a76ab5d","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":"773db883-d1e7-4eae-9c8a-c94c865c6d0f","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":"52c254be-f683-4ea1-99f0-99d25a316535","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":"805d6c25-7f0e-49bb-845e-0ebc183ca993","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":"a800c616-dc42-4c09-a7dc-867dd3baefe0","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":"7b0fec80-dbbd-4823-a455-94369e23966a","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":"5307b6be-09bc-4ad0-b7d1-b226a9d9c8a1","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":"764a0dba-b977-4255-a177-61b00a842d48","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":"ada23b8d-983c-443d-b656-a6ad85d8702b","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":"7ddb4feb-d5eb-4db6-874b-c5795f2ee936","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":"e9bbb2d3-b544-456a-9756-ed5b7c32e532","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":"5ddbeb6f-a7ed-4242-bd84-7567da4b23bd","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":"10abf28c-eae2-472e-ace8-0f333d568eec","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":"eb1b766b-86fe-4f41-8c74-b3af2983db9f","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":"910175a3-d801-49f5-a9bc-040d9045760d","block_type":"box","text":"perspective on the markets and the economy.","page_number":20,"box":{"x":265,"y":345,"width":323,"height":11}},{"id":"3484d289-4b42-4368-aafc-f03310ba3409","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":"0c92c0f4-cc7f-4d35-987b-182632c48a69","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":"bd59da80-aef7-48df-be67-1e76e04e4b8f","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":"a0218bc9-953d-472e-a8d1-9e2ce120c1b9","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":"74db9d97-361e-4785-882d-223f00260ed7","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":"61225875-5fd7-481c-a3ab-36a21772f11d","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":"00303d38-8b19-4673-bee5-17b9d3c6fd2e","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":"3c53178f-c25f-4527-b264-0ee32a76e9ef","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":"37c27906-c734-47e6-826b-fafe6ef57365","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":"6cfb1cd4-4f89-42ef-98f7-6d76c17b954d","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":"6fe86e94-3683-4c84-aa35-252e340b6cdc","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":"834faeaa-730f-4b5e-9475-220d02482cb2","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":"745c4630-4cc4-4155-99df-e220860fb526","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":"afc52be7-19ff-46bb-a44e-f21941615711","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":"cca24074-e9d1-42de-b89c-fbcd6b1e23b8","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":"e83163e8-571d-40d8-97cc-f6cde6485daf","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":"f23d07be-1ac5-46d4-ad08-837c5b50fef7","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":"570ac268-53e9-4e0a-aaf3-79cb45e00198","block_type":"box","text":"rules.","page_number":20,"box":{"x":265,"y":633,"width":38,"height":8}},{"id":"974843b7-313a-4618-9db0-26ac9a44b63f","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":"7d951a32-327b-4599-a28c-4360582de918","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":"74a4bf74-a32a-43fd-9597-746c7718e21a","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":"944c14bc-14e7-4009-b3a2-6a40c1f2a640","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":"c9ee4e38-d4c8-4394-a8f1-dbb9155cbc60","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":"5496f994-c320-437f-ac9f-110a4440fd4f","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":"d34510b6-db49-4ed1-b087-e1c8ad32d9d7","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":"577c51ac-a68f-451a-88ff-fe4f50d9c022","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":"917d5b7f-69a6-4e0a-a37f-4be7e8314025","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":"a7ae863e-f283-41ff-88b9-8d661be43ec2","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":"3b096ede-83c2-4b83-ab4b-ad799ca76819","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":"e1f60e18-804a-4413-8bde-77c10cd09cd4","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":"cc73e6ba-22f1-4a15-a769-de99b3d9d07f","block_type":"box","text":"applicable Commission rules.","page_number":20,"box":{"x":265,"y":837,"width":208,"height":10}},{"id":"32de2a01-8336-4184-8b23-a65b21bc62ea","block_type":"box","text":"I-11","page_number":20,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"842898a2-1f85-4ff2-95c7-ff4aa71ec812","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":20,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c49fc1e0-eb9a-4c86-bc80-481bc5de5108","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":21,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"474e99fe-f6c9-49f2-bacd-7e0926f1e88c","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":"c621e11e-3bbc-4aa5-9b0e-ccf09b409ac5","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":"4e9c9417-2e84-4139-a535-2fd6d5547de4","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":"554e1835-7167-469d-a6ae-07a95084a492","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":"95045cd6-1faf-4213-91b7-efcd24a155dc","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":"2893e290-5f90-4ddd-b10e-0fb265dfbaad","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":"cc8e08c5-0954-47c0-ba51-a6d41ec14a1f","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":"cd669657-1f4d-4f25-ac90-de22e09f7a1d","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":"b864812e-11ae-4644-bc3b-ca2e76c4a64a","block_type":"box","text":"ar ticles and books on these topics.","page_number":21,"box":{"x":265,"y":187,"width":251,"height":10}},{"id":"b7da5c38-de80-49a2-80ca-cdf0e47931c6","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":21,"box":{"x":70,"y":209,"width":764,"height":11}},{"id":"b0aed86f-108b-4b33-a6d8-850eac8fceda","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":21,"box":{"x":265,"y":224,"width":642,"height":11}},{"id":"9d0cd1bf-24d9-4383-ae70-5970db0d49e1","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a par tner,","page_number":21,"box":{"x":264,"y":239,"width":593,"height":12}},{"id":"b87e0900-5489-4f6c-ba5b-74664319ce3e","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":21,"box":{"x":265,"y":254,"width":603,"height":12}},{"id":"c03c8d8c-e945-45db-ad96-0070b7d12f00","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":"87871f6e-49a8-416b-8ca9-b2d2e4eb2794","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":"294c0740-e6c2-4fd7-962f-1f071ec64c5f","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":"f4e150b5-d5a4-4a1e-a733-8b84bf0f9439","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":"3ebf600d-8fbf-499f-a6e2-d2a04647b658","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":"9ad1863e-942c-4778-8f6d-ebf89353a2d7","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":"3bfac0e0-3fa4-45c5-9b8c-79e2235383b4","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":21,"box":{"x":265,"y":368,"width":626,"height":11}},{"id":"ea24e0b1-e667-4eb3-814c-555f26dec899","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":21,"box":{"x":265,"y":383,"width":592,"height":11}},{"id":"05978ccc-862c-4a1b-8163-66eac20ccdb4","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Ar thur","page_number":21,"box":{"x":265,"y":398,"width":629,"height":11}},{"id":"0b03613f-59c8-49ba-a4f3-8c5892922bac","block_type":"box","text":"Levitt. 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":"ef2d6dd5-a1b3-4899-a753-738455abf7c4","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":"108321aa-9964-4d22-935b-bbc2b2e13b7e","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":"b3909326-0965-4355-83ce-efe08ee2dc07","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":"69563c9a-1605-4efe-89a8-a8a27ef18eb8","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":"79706a12-5692-4d15-a019-dddaf9bc69b5","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":"c9802d2f-34cd-4b2f-917c-08e89098904c","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":"72c957ee-c33d-4bc5-a3dd-c89663b6c3e9","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":"35e570fe-da86-4383-8fad-99ebd327ef9b","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":"db504e15-2fef-4205-a2b5-eec790d009a6","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":"ac7329b0-9726-4725-9c89-f998543c00f7","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":"baedf5a0-5a75-4a49-8bf2-5a9bae8ba6c4","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":"f0a9f51a-44d2-421a-a1ec-fd56ea66ff23","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":"289c7d03-adab-4598-9ced-d6301d516c8a","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":"e2aa5a79-6502-4ab5-a02e-103607b68603","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":"97e56219-f3bc-402a-bb67-cda21c8ad42b","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":"cbf030f1-c001-4222-aee7-06f82ab06940","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":"83748213-d570-4d38-9ed2-888c121133f4","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":"6745a154-6fdd-4160-ae3c-47934499fb5e","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":"ebb0f03f-8b0b-4a8c-afee-4ef47e1203d8","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":"f6ff6e7c-a59b-4aa5-921d-fd4569675179","block_type":"box","text":"various private and non-profit boards.","page_number":21,"box":{"x":264,"y":723,"width":265,"height":11}},{"id":"70f68a52-5793-412d-9034-874153fd752d","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":"bce98709-af0e-4d66-9a0c-ca7e4e9b9be0","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":"77af9a08-c495-4e15-ae27-28fdab2a4968","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":"aaf33730-5c88-4ead-817f-51033beafd52","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":"b441d101-7128-4289-8719-fd0d3fd804f4","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":"45757821-7262-4ec4-aed5-c1f2edad581c","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":"e3b20d56-1f0f-4031-8fd3-e30de96d1c4f","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":"e08ae3d7-69c6-452a-9651-054fee7fcae5","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":"409d14ac-6199-46ae-b22e-35a39fc7c64b","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":"2a1e2eff-2b1e-4941-aeb3-4a0753daeef9","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":"61bb1ed1-b247-4711-bde4-7064a27748b9","block_type":"box","text":"Trustees prior to becoming an Independent Trustee.","page_number":21,"box":{"x":264,"y":897,"width":369,"height":11}},{"id":"8d5813fb-23f5-4d9b-b9fc-71910bbb0949","block_type":"box","text":"I-12","page_number":21,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"cc30e2fb-9d69-4e51-9ed5-18044bf0df90","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":21,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"55f70648-b193-40fc-8234-5a50e8f3c478","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":22,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"ec9ab425-9f3d-450e-8174-f2ae0dcf2082","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":"96f3d8b9-1b29-4696-a053-001f1dc1ac42","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":"cc6c25f5-af5a-471b-bdf2-dfc6c82edeb3","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":"097a992f-29bb-49a5-b52b-8c005540fd89","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":"3413063d-e4f3-4e1a-97c6-967ef0e9e859","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":"98157ba7-a05b-48b3-b5ce-03deba841888","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":"0ecb4fdf-94a3-4624-b72e-e75a4d769c31","block_type":"box","text":"Commission rules.","page_number":22,"box":{"x":265,"y":156,"width":131,"height":9}},{"id":"5cd3acf8-5480-40aa-9a17-7ea350b8f912","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":"20ef8035-66c8-4eb4-842c-f265e25764f9","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":"c052b671-b023-46b3-a2f2-0041534c4d38","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":"666c20de-12bf-46a0-8f95-a6abbee37a0e","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":"4c31ffdf-6a35-45a8-9568-079cbc7b57b6","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":"cf451f48-22a7-4a8b-abfa-44c6234226a2","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":"3510355c-b768-472d-9f78-c39ea24a4ca3","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":"95371668-b3c9-4035-9fab-68171d190a80","block_type":"box","text":"economy. 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As of December 31, 2025","page_number":27,"box":{"x":69,"y":253,"width":819,"height":11}},{"id":"39366cb6-9208-436e-ad79-000c8bd8feb0","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":268,"width":839,"height":11}},{"id":"a7b5060f-6e6e-4f8b-9910-076c00cdaaec","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":283,"width":798,"height":12}},{"id":"a4241009-3c5b-4962-81b4-c33e765a1b69","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":299,"width":831,"height":11}},{"id":"0b205b25-92ca-4038-b130-a5881a8a3c42","block_type":"box","text":"entities.","page_number":27,"box":{"x":69,"y":314,"width":56,"height":9}},{"id":"c05a4271-6e16-4228-9629-875819db6ceb","block_type":"box","text":"Compensation of Trustees","page_number":27,"box":{"x":69,"y":344,"width":190,"height":11}},{"id":"260645e6-faec-4e52-b05b-d6c1b3f46cd0","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":366,"width":791,"height":12}},{"id":"8cc54a49-a6fd-4e73-b094-2eb9be9e4927","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":382,"width":810,"height":11}},{"id":"ca81cb1f-3e8d-4b49-8216-35527e297741","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":396,"width":838,"height":12}},{"id":"f185141f-1856-4afe-a5ea-6e12b526d6dd","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":412,"width":807,"height":11}},{"id":"52118dc0-e776-477e-b38a-c35dc3ef727c","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":427,"width":791,"height":11}},{"id":"3af1c212-f4f9-483b-8b59-13e1b32a9014","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":442,"width":786,"height":11}},{"id":"6026633f-e9b6-42ca-989a-1d0c9547f8aa","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":457,"width":769,"height":12}},{"id":"dc718a7a-dff2-4edd-9010-dce16749f55d","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":472,"width":778,"height":12}},{"id":"0dfa2abd-52b6-48df-b4ff-b458a4904849","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":487,"width":689,"height":12}},{"id":"d1c40642-3473-48cd-b298-89660d44ec66","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":510,"width":766,"height":11}},{"id":"786ba802-3dcb-466c-9a58-ce73c21e9091","block_type":"box","text":"fiscal year ending May 31, 2026 and the aggregate compensation paid to them by all BlackRock-advised Funds for","page_number":27,"box":{"x":68,"y":525,"width":817,"height":12}},{"id":"34171f41-8571-43e2-b723-658633c2c988","block_type":"box","text":"the calendar year ended December 31, 2025.","page_number":27,"box":{"x":68,"y":540,"width":326,"height":12}},{"id":"e1d31fca-9fca-4950-a959-2eb08d299851","block_type":"box","text":"Name","page_number":27,"box":{"x":69,"y":609,"width":32,"height":7}},{"id":"30d78690-4126-4372-9d29-15cbb9357aaf","block_type":"box","text":"Compensation","page_number":27,"box":{"x":551,"y":599,"width":83,"height":9}},{"id":"594b43ae-a594-47ab-8e00-7c5746fb6bbc","block_type":"box","text":"from the Fund","page_number":27,"box":{"x":552,"y":609,"width":81,"height":7}},{"id":"46002883-e6d5-4b27-8ace-4d8de38385f6","block_type":"box","text":"Estimated Annual","page_number":27,"box":{"x":664,"y":589,"width":102,"height":7}},{"id":"3f2aac3b-de35-4c09-aa28-63c9686345b5","block_type":"box","text":"Benefits upon","page_number":27,"box":{"x":676,"y":599,"width":79,"height":9}},{"id":"4d983d4b-d1c1-47f7-b525-3443010a7166","block_type":"box","text":"Retirement","page_number":27,"box":{"x":683,"y":609,"width":64,"height":7}},{"id":"eac0368a-0740-44c8-a656-f2dbf77e9107","block_type":"box","text":"Aggregate","page_number":27,"box":{"x":822,"y":569,"width":61,"height":9}},{"id":"10051149-b328-4b3d-8388-dfe7e4c60231","block_type":"box","text":"Compensation from","page_number":27,"box":{"x":796,"y":579,"width":113,"height":9}},{"id":"46f28c79-ae14-4c21-8f66-ff6d09683dc3","block_type":"box","text":"the Fund and","page_number":27,"box":{"x":815,"y":589,"width":75,"height":7}},{"id":"80fe574c-60c2-46ea-bb3a-9fa96b59793e","block_type":"box","text":"Other BlackRock","page_number":27,"box":{"x":802,"y":599,"width":102,"height":7}},{"id":"9fdcfcd1-9289-49ca-8097-30dc475d84fe","block_type":"box","text":"Advised Funds","page_number":27,"box":{"x":809,"y":609,"width":84,"height":7}},{"id":"b5dc8739-4f1f-4fcd-a40e-5e27050c9c86","block_type":"box","text":"1","page_number":27,"box":{"x":893,"y":609,"width":4,"height":4}},{"id":"cf639c2d-0048-43a1-ade0-7ca36eb71e79","block_type":"box","text":"Independent Trustees","page_number":27,"box":{"x":70,"y":627,"width":154,"height":11}},{"id":"d42245fb-ee1a-43e2-8bc3-e8407d8547bd","block_type":"box","text":"Christopher J. Ailman . . . .","page_number":27,"box":{"x":79,"y":642,"width":180,"height":11}},{"id":"57f3fa89-98d6-4fe4-994b-41f352c67bf2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,180 None","page_number":27,"box":{"x":266,"y":641,"width":467,"height":11}},{"id":"79f9ed96-b8a7-4d0a-a310-46ff74fc9d9b","block_type":"box","text":"$445,000","page_number":27,"box":{"x":817,"y":641,"width":72,"height":11}},{"id":"7f84c0b2-1513-4143-a319-b8d0622e4616","block_type":"box","text":"Susan J. Car ter . .","page_number":27,"box":{"x":79,"y":657,"width":123,"height":9}},{"id":"8ec8bb06-327e-4960-98d4-186aece5a917","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,180 None","page_number":27,"box":{"x":208,"y":656,"width":525,"height":11}},{"id":"6b2505f1-737c-4aeb-ace5-eebaaad057ab","block_type":"box","text":"$445,000","page_number":27,"box":{"x":817,"y":656,"width":72,"height":11}},{"id":"6f52281c-4328-4c3f-bf74-4a55ae1cee1c","block_type":"box","text":"Collette Chilton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,180 None","page_number":27,"box":{"x":79,"y":671,"width":654,"height":12}},{"id":"5ea62d3c-fae3-4ec1-92ef-cf08ce55c44d","block_type":"box","text":"$445,000","page_number":27,"box":{"x":817,"y":671,"width":72,"height":12}},{"id":"e2b6b878-ed7e-4a95-aa3a-cca9a9f61a62","block_type":"box","text":"Neil A. Cotty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,408 None","page_number":27,"box":{"x":79,"y":686,"width":654,"height":12}},{"id":"7aab6cc2-45ee-47b2-83c2-151cc00d25d3","block_type":"box","text":"$467,500","page_number":27,"box":{"x":817,"y":686,"width":72,"height":12}},{"id":"2beeb060-2c4d-4341-9250-5007477aed6a","block_type":"box","text":"Jeffrey Jarczyk","page_number":27,"box":{"x":78,"y":702,"width":103,"height":11}},{"id":"e56dfda2-f646-4513-9f34-cfb8917be9cd","block_type":"box","text":"2","page_number":27,"box":{"x":181,"y":703,"width":4,"height":4}},{"id":"73965b9b-90fe-43a4-a67d-b969ff3cbcb3","block_type":"box","text":".........................................","page_number":27,"box":{"x":192,"y":710,"width":328,"height":1}},{"id":"510cc059-105a-4952-86dd-c578ffd53068","block_type":"box","text":"$813 None None","page_number":27,"box":{"x":574,"y":702,"width":297,"height":10}},{"id":"0a8a9ece-a63e-4aec-8e33-4d785432f6dd","block_type":"box","text":"Henry R. Keizer","page_number":27,"box":{"x":79,"y":718,"width":109,"height":11}},{"id":"789566ae-68e6-433f-b758-6a8c65a908a5","block_type":"box","text":"3","page_number":27,"box":{"x":189,"y":718,"width":4,"height":4}},{"id":"329d9cf3-4332-4fa4-aae2-2255af1ed237","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,810 None","page_number":27,"box":{"x":200,"y":717,"width":533,"height":11}},{"id":"db9cf93b-57b5-4c4b-8757-7c8e7422678c","block_type":"box","text":"$490,000","page_number":27,"box":{"x":817,"y":717,"width":72,"height":11}},{"id":"f1969f9d-c736-4d53-ac45-44651f43c6ed","block_type":"box","text":"Cynthia A. Montgomery","page_number":27,"box":{"x":79,"y":733,"width":164,"height":11}},{"id":"c3ff9bd8-6a3a-4d08-b5a6-c64b8caa3f66","block_type":"box","text":"4","page_number":27,"box":{"x":244,"y":733,"width":4,"height":4}},{"id":"077c824f-9a0e-4032-bf44-17343083ed30","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,628 None $490,000","page_number":27,"box":{"x":257,"y":732,"width":632,"height":11}},{"id":"2da02824-0df7-48a1-b84a-05769b6083fa","block_type":"box","text":"Donald C. 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Urish . .","page_number":27,"box":{"x":79,"y":808,"width":131,"height":9}},{"id":"d834b29d-53bb-45d5-bfca-9d29b4a2c7b5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,180 None","page_number":27,"box":{"x":217,"y":807,"width":516,"height":12}},{"id":"c0668b99-0a41-459d-adb0-711a313c8a2c","block_type":"box","text":"$445,000","page_number":27,"box":{"x":817,"y":807,"width":72,"height":12}},{"id":"8c52783a-cf19-4d0b-ad19-f9875a91c34d","block_type":"box","text":"Claire A. 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The contractual agreements may be terminated upon 90 days’","page_number":28,"box":{"x":70,"y":303,"width":810,"height":11}},{"id":"e2de951e-4cec-4b18-b143-b73b5fd4d94d","block_type":"box","text":"notice by a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of the","page_number":28,"box":{"x":69,"y":318,"width":827,"height":11}},{"id":"b591ddfc-6ea1-458c-b9ca-c894e8faadd7","block_type":"box","text":"Fund.","page_number":28,"box":{"x":70,"y":333,"width":36,"height":9}},{"id":"c8c0d60e-77ef-4e41-9b62-e4c2525e5944","block_type":"box","text":"BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual","page_number":28,"box":{"x":102,"y":356,"width":778,"height":11}},{"id":"3071c95f-1651-4153-ab6e-5d42a10dd9b3","block_type":"box","text":"Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Interest Expense, Dividend","page_number":28,"box":{"x":70,"y":371,"width":823,"height":11}},{"id":"fbef1a44-b964-4b21-9904-5e44f563e03d","block_type":"box","text":"Expense, Acquired Fund Fees and Expenses and cer tain other Fund expenses (as defined in the Fund’s","page_number":28,"box":{"x":70,"y":386,"width":734,"height":11}},{"id":"42d21ed2-73b3-462f-8d92-3cfd064b7445","block_type":"box","text":"Prospectuses) as a percentage of average daily net assets to 1.14% for Investor A Shares, 1.89% for Investor C","page_number":28,"box":{"x":69,"y":401,"width":798,"height":11}},{"id":"cbf28587-39be-46c1-ac4c-c74c69ce762a","block_type":"box","text":"Shares, 0.89% for Institutional Shares, 1.39% for Class R Shares, 1.14% for Service Shares, and 0.84% for Class K","page_number":28,"box":{"x":69,"y":416,"width":831,"height":11}},{"id":"4a94d29c-27fe-4bbe-af91-3ba3ff78aef5","block_type":"box","text":"Shares through June 30, 2028. The contractual agreements may be terminated upon 90 days’ notice by a majority of","page_number":28,"box":{"x":69,"y":431,"width":837,"height":12}},{"id":"e2032092-c708-4574-a3e6-f3a05d2567f8","block_type":"box","text":"the Independent Trustees or by a vote of a majority of the outstanding voting securities of the Fund.","page_number":28,"box":{"x":68,"y":446,"width":710,"height":12}},{"id":"9427ff9e-5427-4d92-90b2-a15e3d5d42d4","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":469,"width":784,"height":11}},{"id":"00ceac7b-bcd8-488a-ac56-1f842b29c25e","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":484,"width":838,"height":12}},{"id":"3c8ce4c0-ca24-465a-b626-7f66d96d9e20","block_type":"box","text":"per form investment advisory services with respect to the Fund. 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BlackRock may terminate any or all sub-advisers or such delegation arrangements in its","page_number":28,"box":{"x":70,"y":530,"width":827,"height":11}},{"id":"a4351880-ae0c-4253-aeca-faa16739da92","block_type":"box","text":"sole discretion at any time to the extent permitted by applicable law.","page_number":28,"box":{"x":69,"y":545,"width":486,"height":11}},{"id":"1480a6bf-3b19-4846-a31f-b20316cbeac5","block_type":"box","text":"The table below sets for th information about the total management fees paid by the Trust to BlackRock, on","page_number":28,"box":{"x":101,"y":567,"width":765,"height":12}},{"id":"d0f4ac30-5ea7-4afe-bb79-0d7a6acbb15b","block_type":"box","text":"behalf of the Fund, and the amounts waived and reimbursed by BlackRock for the periods shown.","page_number":28,"box":{"x":69,"y":583,"width":692,"height":11}},{"id":"c9abcb99-f977-47ca-908a-f1c2f68f52f3","block_type":"box","text":"Fees","page_number":28,"box":{"x":637,"y":611,"width":27,"height":7}},{"id":"c4275856-db4c-4c7e-bd58-20828ddb0091","block_type":"box","text":"Paid to","page_number":28,"box":{"x":630,"y":621,"width":41,"height":7}},{"id":"21c9d983-185f-400f-8f7c-b0e2c8da4f91","block_type":"box","text":"BlackRock","page_number":28,"box":{"x":619,"y":631,"width":63,"height":7}},{"id":"9450034b-c8bd-4256-92d8-c8f61d9924f9","block_type":"box","text":"Fees","page_number":28,"box":{"x":747,"y":611,"width":27,"height":7}},{"id":"f6180975-6367-4b8d-a672-7713386bca73","block_type":"box","text":"Waived by","page_number":28,"box":{"x":731,"y":621,"width":59,"height":9}},{"id":"e51208c7-9214-4b3c-9a05-d24de72ff2a2","block_type":"box","text":"BlackRock","page_number":28,"box":{"x":730,"y":631,"width":62,"height":7}},{"id":"eb08ed36-e2e0-4565-b2df-02b3e95a5f8f","block_type":"box","text":"Fees","page_number":28,"box":{"x":852,"y":611,"width":27,"height":7}},{"id":"cd07ed77-9bca-4e71-bc98-cec1cf75d675","block_type":"box","text":"Reimbursed by","page_number":28,"box":{"x":823,"y":621,"width":85,"height":9}},{"id":"1306169f-7497-4547-985d-943b790766ca","block_type":"box","text":"BlackRock","page_number":28,"box":{"x":835,"y":631,"width":62,"height":7}},{"id":"f0880065-0efd-4ed5-a6b1-98aaa46cec41","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . .","page_number":28,"box":{"x":70,"y":649,"width":264,"height":11}},{"id":"3dd018bd-fcd9-4e0e-a1a5-ef412be3c730","block_type":"box","text":".............................","page_number":28,"box":{"x":341,"y":656,"width":230,"height":2}},{"id":"427d950a-d967-4ff7-953e-6ed784ec060e","block_type":"box","text":"$51,387,897 $19,246 $ 80,785","page_number":28,"box":{"x":602,"y":648,"width":307,"height":11}},{"id":"01924c71-a185-4e24-8b3b-f8b54a25686c","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . .","page_number":28,"box":{"x":70,"y":664,"width":264,"height":11}},{"id":"b428ab47-6535-4871-a318-2bb691773d08","block_type":"box","text":".............................","page_number":28,"box":{"x":341,"y":671,"width":230,"height":2}},{"id":"7b123c35-1a08-4b4b-a0e8-62bd510b01c3","block_type":"box","text":"$44,202,451 $36,173 $ 123,137","page_number":28,"box":{"x":602,"y":663,"width":306,"height":11}},{"id":"d1d7f3b2-13ee-46aa-95aa-633e0643c978","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . .","page_number":28,"box":{"x":70,"y":679,"width":264,"height":11}},{"id":"661ef7fe-82af-495c-9d7d-1ef2ac816378","block_type":"box","text":".............................","page_number":28,"box":{"x":341,"y":686,"width":230,"height":2}},{"id":"dc2389e7-8d62-41f5-9e22-c062672bb1c1","block_type":"box","text":"$36,858,993 $ 9,040 $1,007,943","page_number":28,"box":{"x":602,"y":678,"width":307,"height":11}},{"id":"6ff22907-8b47-41f6-965c-6975291cf64a","block_type":"box","text":"Administration Agreement","page_number":28,"box":{"x":68,"y":711,"width":191,"height":11}},{"id":"75a3d1e3-b8c6-4358-b5c7-42097ab63dda","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":733,"width":711,"height":11}},{"id":"5fabdbe5-ab17-4d3a-8a13-26ba96163654","block_type":"box","text":"administration agreement (the “Administration Agreement”). The Administrator has agreed to maintain office facilities","page_number":28,"box":{"x":69,"y":748,"width":838,"height":12}},{"id":"980d0e53-208b-4e7d-b1ad-13d26586de03","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":763,"width":830,"height":12}},{"id":"e3c0161e-e6a1-4ff1-8812-c8bb509fabe1","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":778,"width":813,"height":12}},{"id":"a3ff3989-5d34-461e-be97-7eea5d4d90cc","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":794,"width":837,"height":11}},{"id":"f3ee9405-4afe-4bff-9721-ea2f329e54ef","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":809,"width":836,"height":11}},{"id":"b920df01-5850-43df-920c-4691119686cd","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":824,"width":785,"height":11}},{"id":"e6a6dd9a-f043-40b3-a2a3-a1ae7cbaeb86","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":839,"width":765,"height":11}},{"id":"203b731a-fcd8-4fb5-a9a7-89eb3ebebee2","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":854,"width":819,"height":11}},{"id":"d0fd01ad-7b15-4e3e-88ce-34b15a7f8411","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":869,"width":818,"height":11}},{"id":"3aa63ed5-42e3-4f3d-88a1-07ca19853850","block_type":"box","text":"Administrator may from time to time voluntarily waive administration fees with respect to the Fund and may voluntarily","page_number":28,"box":{"x":68,"y":884,"width":840,"height":11}},{"id":"30350a57-c14f-4c4a-9dd7-a83c2b5619d9","block_type":"box","text":"reimburse the Fund for expenses.","page_number":28,"box":{"x":69,"y":899,"width":238,"height":11}},{"id":"5b0a9cc6-152a-4431-be3c-d72050deaaf7","block_type":"box","text":"I-19","page_number":28,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"91329c0a-e047-4880-b88c-28f6ffae5e0c","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":28,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"76bb6092-3f48-48bf-963d-d80d0f924245","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":45,"width":802,"height":11}},{"id":"545799da-a93d-4f48-b228-36332bbfeb42","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":59,"width":830,"height":12}},{"id":"bbdaa84c-64af-4a62-a925-f36978f36cd2","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":74,"width":788,"height":12}},{"id":"dcc4854b-efc0-4192-8b90-1a48f743c7d3","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":89,"width":785,"height":12}},{"id":"b344509f-6868-426f-80cf-89dd6125ac8a","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":104,"width":816,"height":12}},{"id":"0dc69415-38c6-4d1b-8af5-635fb814affb","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":120,"width":805,"height":12}},{"id":"8b94b462-ccf5-493b-a33a-dbcbf7372bd5","block_type":"box","text":"shares of the Fund.","page_number":29,"box":{"x":69,"y":135,"width":137,"height":9}},{"id":"a142beaf-590f-496d-bfa7-5408f0b25cc4","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":158,"width":793,"height":11}},{"id":"6c83d593-2d48-4871-b326-13d66064bdaa","block_type":"box","text":"the Administrator, and the amounts waived, for the periods shown.","page_number":29,"box":{"x":68,"y":173,"width":474,"height":11}},{"id":"cd8fa19e-a661-40bb-8547-77a69332f353","block_type":"box","text":"Fees Paid","page_number":29,"box":{"x":729,"y":201,"width":56,"height":8}},{"id":"47574463-2fc2-40b0-973a-8f8a56a4a2d5","block_type":"box","text":"to the","page_number":29,"box":{"x":740,"y":212,"width":34,"height":7}},{"id":"3355e036-fc0c-44c8-85cd-33725eaa5e7c","block_type":"box","text":"Administrator","page_number":29,"box":{"x":717,"y":222,"width":79,"height":7}},{"id":"98a4e2bf-6938-4a57-a183-be4fed2f623c","block_type":"box","text":"Fees Waived","page_number":29,"box":{"x":834,"y":201,"width":72,"height":8}},{"id":"0e5156d3-18e1-4f9a-89ed-53d330c02bc1","block_type":"box","text":"by the","page_number":29,"box":{"x":853,"y":212,"width":35,"height":8}},{"id":"bfd9db65-4bee-4ba9-bbf9-e055b622bb61","block_type":"box","text":"Administrator","page_number":29,"box":{"x":830,"y":222,"width":79,"height":7}},{"id":"33da30b5-def0-4e81-a76a-ee86ef8d5228","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . .","page_number":29,"box":{"x":70,"y":239,"width":253,"height":11}},{"id":"b8eeefb1-0c2a-4cdd-a53f-3340df6389b9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,","page_number":29,"box":{"x":330,"y":239,"width":406,"height":11}},{"id":"54cc90fd-62ff-4662-a159-084455303357","block_type":"box","text":"773,431 $886,984","page_number":29,"box":{"x":738,"y":239,"width":168,"height":11}},{"id":"9413607d-471f-48b4-a9b7-f57d22d6bc93","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . .","page_number":29,"box":{"x":70,"y":255,"width":253,"height":11}},{"id":"3d54edbf-80cc-494e-bad0-8bd64924dbb0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,","page_number":29,"box":{"x":330,"y":254,"width":406,"height":11}},{"id":"cee9ae6c-5d91-47b8-8e0b-ec4ddec99da9","block_type":"box","text":"241,940 $646,033","page_number":29,"box":{"x":738,"y":254,"width":168,"height":11}},{"id":"76f16bca-a570-4674-b98e-206a568612c3","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . .","page_number":29,"box":{"x":70,"y":270,"width":253,"height":11}},{"id":"d5358e7a-fbb4-48df-a45c-794e48fd7138","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,","page_number":29,"box":{"x":330,"y":269,"width":406,"height":11}},{"id":"7c366c9e-59b7-474e-be09-f63cdfd72aeb","block_type":"box","text":"705,640 $918,064","page_number":29,"box":{"x":738,"y":269,"width":168,"height":11}},{"id":"4dbd49df-91b2-4a87-9c00-792bf54dd222","block_type":"box","text":"The Trust and its service providers may engage third par ty plan administrators who provide trustee,","page_number":29,"box":{"x":101,"y":294,"width":708,"height":11}},{"id":"aad664dc-a75b-429a-b0dc-b8950d304d71","block_type":"box","text":"administrative and recordkeeping services for cer tain employee benefit, profit-sharing and retirement plans as agents","page_number":29,"box":{"x":69,"y":309,"width":838,"height":11}},{"id":"82e86e9a-d043-4570-8972-63425e2df8d7","block_type":"box","text":"for the Trust with respect to such plans, for the purpose of accepting orders for the purchase and redemption of","page_number":29,"box":{"x":68,"y":324,"width":800,"height":11}},{"id":"3ba93b26-0673-46e4-b0cc-caf7ca178fcc","block_type":"box","text":"shares of the Trust.","page_number":29,"box":{"x":69,"y":339,"width":138,"height":9}},{"id":"860dfe5e-8f95-459b-a871-0b6d3a4697dd","block_type":"box","text":"In addition, pursuant to a Shareholders’ Administrative Services Agreement, BlackRock provides cer tain","page_number":29,"box":{"x":102,"y":362,"width":740,"height":11}},{"id":"661d818b-f4b0-4ef8-8b9d-9972a96b3ed5","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":377,"width":824,"height":10}},{"id":"bac1f9d8-0a37-4bcd-9ff0-6907b4fb9189","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":392,"width":787,"height":11}},{"id":"ed10b3a9-a3d1-46b2-b5f7-cea3eba4a85f","block_type":"box","text":"employee salaries, leasehold expenses, and other out-of-pocket expenses.","page_number":29,"box":{"x":69,"y":407,"width":531,"height":11}},{"id":"8656573d-7a62-406c-8b20-711e4bfcd2e0","block_type":"box","text":"For the periods shown, the Trust on behalf of the Fund reimbursed BlackRock for shareholder liaison services","page_number":29,"box":{"x":102,"y":429,"width":780,"height":11}},{"id":"2e8e2439-2ca9-4a0c-93b1-e4793a08809a","block_type":"box","text":"pursuant to such agreement in the amounts set for th below.","page_number":29,"box":{"x":70,"y":445,"width":427,"height":11}},{"id":"00979c3b-54ab-4407-b9f5-157a4071ca28","block_type":"box","text":"Fees Paid","page_number":29,"box":{"x":655,"y":473,"width":55,"height":7}},{"id":"7e644329-04c4-4c1b-8e75-7cb23fec4709","block_type":"box","text":"to BlackRock Fees Waived by BlackRock","page_number":29,"box":{"x":643,"y":483,"width":267,"height":9}},{"id":"84536d4a-d64d-4ad2-ad06-2b4e69574f39","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . .","page_number":29,"box":{"x":70,"y":501,"width":289,"height":11}},{"id":"d48871cc-2207-408a-8b3b-ad1258dab9e4","block_type":"box","text":"...............................","page_number":29,"box":{"x":366,"y":508,"width":246,"height":2}},{"id":"4234546d-4220-4373-a38a-484351382579","block_type":"box","text":"$110,200 $26,546","page_number":29,"box":{"x":647,"y":500,"width":215,"height":11}},{"id":"30b1fcab-ba25-4082-9f98-62c358c89a43","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . .","page_number":29,"box":{"x":70,"y":516,"width":289,"height":11}},{"id":"5f67788c-33b0-49df-8cec-c1405af0072a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 68,181","page_number":29,"box":{"x":366,"y":515,"width":352,"height":11}},{"id":"cc99da27-510c-4740-b8a5-08c22366132f","block_type":"box","text":"$25,155","page_number":29,"box":{"x":800,"y":515,"width":62,"height":11}},{"id":"be99def5-02bf-4b7b-8c98-3ccb92f12ded","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . .","page_number":29,"box":{"x":70,"y":531,"width":289,"height":11}},{"id":"71de5776-b163-47bc-8b2f-df7ddb67af29","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 87,543","page_number":29,"box":{"x":366,"y":530,"width":353,"height":11}},{"id":"a9d47673-5ae7-48af-8651-3e782588827b","block_type":"box","text":"$86,543","page_number":29,"box":{"x":800,"y":530,"width":62,"height":11}},{"id":"5b910eba-a52c-4e33-9b2b-070308c1fbde","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":29,"box":{"x":69,"y":562,"width":335,"height":12}},{"id":"b0da6a6b-58d3-4d20-a391-59b554c5f405","block_type":"box","text":"Tony Kim and Reid Menge are the por tfolio managers and are jointly and primarily responsible for the day-to-day","page_number":29,"box":{"x":101,"y":585,"width":796,"height":11}},{"id":"035a1d8d-f0fd-4bfb-b68a-f3dc3da8054b","block_type":"box","text":"management of the Fund.","page_number":29,"box":{"x":69,"y":600,"width":181,"height":12}},{"id":"d1323690-0364-4224-aefd-b0e1f0f297fb","block_type":"box","text":"Other Funds and Accounts Managed","page_number":29,"box":{"x":70,"y":631,"width":265,"height":11}},{"id":"925ef806-9874-403e-ad93-d788c58dbdfe","block_type":"box","text":"The following table sets for th information about the funds and accounts other than the Fund for which the","page_number":29,"box":{"x":101,"y":653,"width":753,"height":11}},{"id":"caaa68ca-1876-4f8a-8a04-caac70fd65af","block_type":"box","text":"por tfolio managers are primarily responsible for the day-to-day por tfolio management as of the Fund’s fiscal year","page_number":29,"box":{"x":70,"y":668,"width":801,"height":12}},{"id":"e0467610-c1d8-4ab0-a1e1-d5bd58fc2c1b","block_type":"box","text":"ended May 31, 2026.","page_number":29,"box":{"x":69,"y":683,"width":154,"height":12}},{"id":"09a4dc3c-e685-4b01-9669-d8d8b8dd8c20","block_type":"box","text":"Number of Other Accounts Managed","page_number":29,"box":{"x":362,"y":712,"width":211,"height":9}},{"id":"8b9bff96-1fbe-4d90-9ae1-d69b431633f2","block_type":"box","text":"and Assets by Account Type","page_number":29,"box":{"x":385,"y":722,"width":165,"height":9}},{"id":"abf2860a-90a2-476a-b58a-3dfc4d7f8799","block_type":"box","text":"Number of Other Accounts and Assets","page_number":29,"box":{"x":656,"y":712,"width":222,"height":7}},{"id":"8a3fe720-50c1-44cd-9030-8842baab1575","block_type":"box","text":"for Which Advisory Fee is Performance-Based","page_number":29,"box":{"x":634,"y":722,"width":265,"height":9}},{"id":"a6e0e4b4-e7c5-4076-bc91-9efb334aa9d6","block_type":"box","text":"Name of Portfolio Manager","page_number":29,"box":{"x":74,"y":765,"width":157,"height":8}},{"id":"f6b75c86-c02a-4b46-899b-225b93f2aff0","block_type":"box","text":"Other","page_number":29,"box":{"x":345,"y":734,"width":32,"height":7}},{"id":"21305f38-a9f6-4311-bffb-d54e7882ce24","block_type":"box","text":"Registered","page_number":29,"box":{"x":330,"y":744,"width":62,"height":9}},{"id":"42924d22-ddfb-45bc-92db-059783d6bab6","block_type":"box","text":"Investment","page_number":29,"box":{"x":329,"y":755,"width":64,"height":7}},{"id":"ee05d0ae-70da-42f3-8f27-2f636bcd9f59","block_type":"box","text":"Companies","page_number":29,"box":{"x":329,"y":765,"width":64,"height":8}},{"id":"38213e30-11e1-4ed3-85c6-532fdd525a17","block_type":"box","text":"Other Pooled","page_number":29,"box":{"x":425,"y":744,"width":74,"height":8}},{"id":"88848b61-54e7-45e6-8534-a0c5166256e8","block_type":"box","text":"Investment","page_number":29,"box":{"x":430,"y":755,"width":64,"height":7}},{"id":"25e24cbe-3dce-4f59-a74c-2ac8316bccf5","block_type":"box","text":"Vehicles","page_number":29,"box":{"x":438,"y":765,"width":48,"height":7}},{"id":"221bb25b-b114-4664-a830-d9b543bcec17","block_type":"box","text":"Other","page_number":29,"box":{"x":553,"y":755,"width":31,"height":7}},{"id":"cc2a8016-9274-4c25-9745-e9e3905e4b28","block_type":"box","text":"Accounts","page_number":29,"box":{"x":541,"y":765,"width":54,"height":7}},{"id":"b8672e3d-9289-4a17-9f85-e2ee7c42da02","block_type":"box","text":"Other","page_number":29,"box":{"x":656,"y":734,"width":32,"height":7}},{"id":"07ab61a4-e362-497d-8288-070257119fb0","block_type":"box","text":"Registered","page_number":29,"box":{"x":641,"y":744,"width":62,"height":9}},{"id":"cb84f43d-d054-46ae-bbd4-fd2b4ca9f189","block_type":"box","text":"Investment","page_number":29,"box":{"x":640,"y":755,"width":64,"height":7}},{"id":"a915c60e-4dd2-4e3a-bd3f-76fb9c1533df","block_type":"box","text":"Companies","page_number":29,"box":{"x":640,"y":765,"width":64,"height":8}},{"id":"e936c09f-79b2-4b7e-b267-c058c612d838","block_type":"box","text":"Other Pooled","page_number":29,"box":{"x":735,"y":744,"width":74,"height":8}},{"id":"721da939-d6e8-4eca-a410-322093026601","block_type":"box","text":"Investment","page_number":29,"box":{"x":740,"y":755,"width":64,"height":7}},{"id":"e333db2c-562c-4f91-b1b2-32e1141bf252","block_type":"box","text":"Vehicles","page_number":29,"box":{"x":748,"y":765,"width":48,"height":7}},{"id":"dcda80e2-205c-4332-bb90-322761ae5bc8","block_type":"box","text":"Other","page_number":29,"box":{"x":852,"y":755,"width":31,"height":7}},{"id":"4efd46e0-593b-4493-9cf3-6c15fed6b3e3","block_type":"box","text":"Accounts","page_number":29,"box":{"x":840,"y":765,"width":54,"height":7}},{"id":"6135177c-140b-4bdd-b91f-e66d0e039ca0","block_type":"box","text":"Tony Kim 6 4 2 0 0 0","page_number":29,"box":{"x":73,"y":778,"width":798,"height":9}},{"id":"d2e715b6-f344-47a7-bd73-c04f8b2e91fc","block_type":"box","text":"$23.41 Billion $23.72 Billion $231.78 Million $0 $0 $0","page_number":29,"box":{"x":321,"y":790,"width":553,"height":9}},{"id":"b9a8e077-c8c4-4b8f-bffc-c759b5df1d93","block_type":"box","text":"Reid Menge 16 7 2 0 0 0","page_number":29,"box":{"x":74,"y":804,"width":797,"height":9}},{"id":"b636f1cb-3e9b-4ce8-afc8-444d8a91cb4f","block_type":"box","text":"$43.53 Billion $28.24 Billion $231.78 Million $0 $0 $0","page_number":29,"box":{"x":321,"y":816,"width":553,"height":8}},{"id":"510a609a-6dbe-4134-90e9-43008fe75a96","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":29,"box":{"x":69,"y":850,"width":304,"height":12}},{"id":"85dab288-047f-4084-9b73-f899baa93df9","block_type":"box","text":"The discussion below describes the por tfolio managers’ compensation as of May 31, 2026.","page_number":29,"box":{"x":101,"y":873,"width":656,"height":11}},{"id":"36ee017a-28a8-491f-91e7-4bf5dfaec694","block_type":"box","text":"BlackRock’s financial arrangements with its por tfolio managers, its competitive compensation and its career","page_number":29,"box":{"x":102,"y":896,"width":774,"height":11}},{"id":"e8b51292-48cc-415f-afcd-9f80418ca839","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":29,"box":{"x":70,"y":911,"width":837,"height":11}},{"id":"fa51f0b2-64bc-4ff4-8ea8-f0c0a10fbb41","block_type":"box","text":"I-20","page_number":29,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"b64bd025-a9d3-4255-9f70-93244da2d9bf","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":29,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"00534f4e-a717-446d-bee2-48647e07c88b","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":45,"width":823,"height":11}},{"id":"ba73ff28-04e9-4588-ad33-798bd9e4d609","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":60,"width":799,"height":11}},{"id":"35ff7176-a417-4a41-b6f4-6cf91b49be00","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":30,"box":{"x":70,"y":75,"width":670,"height":11}},{"id":"983b309d-b623-4ce6-9c66-7d91cbe0c295","block_type":"box","text":"Base Compensation.","page_number":30,"box":{"x":102,"y":98,"width":148,"height":11}},{"id":"52d6529e-8979-42cd-9f55-4c3c3db2e7a3","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":30,"box":{"x":257,"y":98,"width":640,"height":11}},{"id":"2d760c99-33c8-4f19-90c8-dda63c7de28c","block_type":"box","text":"firm.","page_number":30,"box":{"x":68,"y":113,"width":32,"height":9}},{"id":"e4b9f731-60f2-4c67-bdb0-478faa555d26","block_type":"box","text":"Discretionary Incentive Compensation","page_number":30,"box":{"x":69,"y":143,"width":277,"height":11}},{"id":"49e74d55-e0be-463b-99b1-b8b19593a4eb","block_type":"box","text":"Generally, discretionary incentive compensation for Fundamental Equities por tfolio managers is based on a","page_number":30,"box":{"x":102,"y":166,"width":763,"height":11}},{"id":"83a8b09f-cacf-4bd1-ac90-2cfd1182dafb","block_type":"box","text":"formulaic compensation program. BlackRock’s formulaic por tfolio manager compensation program is based on team","page_number":30,"box":{"x":68,"y":181,"width":832,"height":11}},{"id":"76be6af5-765c-461f-9419-ac4962a6c8d8","block_type":"box","text":"revenue and pre-tax investment per formance relative to appropriate competitors or benchmarks over 3- and 5-year","page_number":30,"box":{"x":69,"y":196,"width":815,"height":11}},{"id":"83d93eed-78ab-40d4-8931-9cc583d4cb00","block_type":"box","text":"per formance periods, as applicable. In most cases, these benchmarks are the same as the benchmark or","page_number":30,"box":{"x":70,"y":211,"width":757,"height":11}},{"id":"27d3295d-57f4-4b84-b7cb-15e373f283e1","block_type":"box","text":"benchmarks against which the per formance of the Fund or other accounts managed by the por tfolio managers are","page_number":30,"box":{"x":69,"y":226,"width":814,"height":11}},{"id":"3b50ad2b-122b-4ee9-baff-7cf4c7322f62","block_type":"box","text":"measured. BlackRock’s global compensation team determines the benchmarks or rankings against which the","page_number":30,"box":{"x":69,"y":241,"width":780,"height":11}},{"id":"630d5e5c-b9f6-4d21-8066-377702aea1a4","block_type":"box","text":"per formance of funds and other accounts managed by each por tfolio management team is compared and the period","page_number":30,"box":{"x":70,"y":256,"width":829,"height":12}},{"id":"3ceed6b4-a850-40db-a833-13e150bce8b8","block_type":"box","text":"of time over which per formance is evaluated. With respect to these por tfolio managers, such benchmarks for the","page_number":30,"box":{"x":69,"y":271,"width":806,"height":12}},{"id":"cf42afff-75d6-4faf-8b73-ea250ba58907","block_type":"box","text":"Fund and other accounts are: MSCI ACWI 25% Call Overwrite Index; MSCI All Country World Index (Net Total Return);","page_number":30,"box":{"x":70,"y":287,"width":825,"height":11}},{"id":"4388946e-ad7c-47fe-978e-f02521be5d34","block_type":"box","text":"MSCI All Country World Information Technology- Net Return in USD.","page_number":30,"box":{"x":70,"y":302,"width":474,"height":11}},{"id":"a3ede2e4-a01d-4bc3-bf50-da89b59c5da0","block_type":"box","text":"A smaller element of por tfolio manager discretionary compensation may include consideration of: financial","page_number":30,"box":{"x":101,"y":324,"width":759,"height":12}},{"id":"ce4e78a0-9db7-47e3-a59c-9d39e6ac9827","block_type":"box","text":"results, expense control, profit margins, strategic planning and implementation, quality of client service, market","page_number":30,"box":{"x":69,"y":339,"width":798,"height":12}},{"id":"c79b44de-adac-47fa-aa48-eee78fc4c1a5","block_type":"box","text":"share, corporate reputation, capital allocation, compliance and risk control, leadership, technology and innovation.","page_number":30,"box":{"x":69,"y":355,"width":814,"height":11}},{"id":"f7d379c8-9bfe-4d5a-8ecc-a9a20e32d5fe","block_type":"box","text":"These factors are considered collectively by BlackRock management and the relevant Chief Investment Officers.","page_number":30,"box":{"x":68,"y":370,"width":798,"height":11}},{"id":"7f82ab3a-ee98-4eb9-9ffb-20711c37a4f9","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":30,"box":{"x":102,"y":392,"width":389,"height":11}},{"id":"e82e03e6-9910-45bf-9935-b60e98c5e0e7","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":30,"box":{"x":499,"y":393,"width":383,"height":11}},{"id":"e94a2f0e-725b-4179-aeec-529d4f1c0443","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":407,"width":815,"height":12}},{"id":"111ea06b-f50c-4929-ab28-e6a5d1702e3a","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":30,"box":{"x":68,"y":423,"width":522,"height":11}},{"id":"e5a20a95-8bd2-4144-b40e-aa1eaa25f34b","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":445,"width":760,"height":12}},{"id":"af39c14c-0cf3-46a7-a861-c407039e1269","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":460,"width":795,"height":12}},{"id":"aa68250c-2db4-4823-86c9-53fa39735d3f","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":475,"width":805,"height":12}},{"id":"a43bd23f-33fd-4802-8c33-8b8a4c3f79a0","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":491,"width":822,"height":11}},{"id":"0da3fb85-dcd9-463c-8071-760548513ca6","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":506,"width":839,"height":11}},{"id":"0e409c98-327b-4d7b-a8a5-0845d6924a55","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":521,"width":802,"height":11}},{"id":"f1111f30-7ee5-4c80-8d3b-6a60b707b9ba","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":536,"width":820,"height":11}},{"id":"b6d6519f-9247-4bee-95fc-e017b36e0171","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":551,"width":801,"height":11}},{"id":"f7c76ed0-6f9e-46c2-88fd-1ccc8deb9eb5","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":566,"width":831,"height":11}},{"id":"070f6e8b-c5ec-4b6c-a187-6246f8b459ca","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":30,"box":{"x":69,"y":581,"width":479,"height":12}},{"id":"c0e968a2-f61d-4792-a662-938f7e4f04f2","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":604,"width":785,"height":11}},{"id":"712e6edc-90c0-4fef-af2d-88b36dfc2f21","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":619,"width":836,"height":11}},{"id":"4b0eb9ea-a587-400a-9516-4f7986fbf5eb","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":634,"width":821,"height":12}},{"id":"151472b0-d713-4f9f-b958-dea10f7ee6da","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":649,"width":829,"height":12}},{"id":"cf89b55c-47e3-460e-bf29-ccd677442c7b","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":664,"width":835,"height":12}},{"id":"ff71627a-3b19-4fa4-b0f4-aa1ac92be7aa","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":30,"box":{"x":69,"y":680,"width":414,"height":11}},{"id":"5c053db1-b327-48f9-a837-9160e25de575","block_type":"box","text":"Other Compensation Benefits.","page_number":30,"box":{"x":101,"y":702,"width":218,"height":11}},{"id":"33dad4e3-a636-4f8a-8ed0-7119821ccb3d","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":30,"box":{"x":327,"y":702,"width":552,"height":11}},{"id":"32917ad0-db6e-4249-81bf-6b514bf21a4f","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":717,"width":582,"height":12}},{"id":"d7072d54-a8e3-45df-ae27-99a656b3f21c","block_type":"box","text":"Incentive Savings Plans","page_number":30,"box":{"x":102,"y":740,"width":167,"height":11}},{"id":"be4ac447-6ad5-452f-9498-5389b47dd76e","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":30,"box":{"x":274,"y":740,"width":614,"height":11}},{"id":"c4e99e31-3ba7-4874-bae4-c3b6a3ab3a38","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":755,"width":831,"height":11}},{"id":"385837c5-5792-4a7c-b129-36d77460e7db","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":770,"width":785,"height":11}},{"id":"a3071c83-edde-46f3-bb87-fb627f86ee38","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":785,"width":830,"height":12}},{"id":"3ca9d44d-21fd-413b-acc4-c483cbe1b776","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":801,"width":799,"height":11}},{"id":"f7cc1a55-0a24-48bb-897b-f7a24aebef46","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":815,"width":831,"height":12}},{"id":"040bd8c6-8c91-418e-910a-88f56f3078e6","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":831,"width":798,"height":11}},{"id":"bfe270cf-e5b0-4dd0-9e8b-82ce426bbf50","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":846,"width":809,"height":11}},{"id":"12af6913-6416-4517-a32b-eba14124a652","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":861,"width":793,"height":11}},{"id":"2fe3b1ab-d6b6-4425-b8ae-08c99702d734","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":876,"width":832,"height":11}},{"id":"00ddc08b-9bb8-4c4e-a02d-b2987d9a7720","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":891,"width":805,"height":11}},{"id":"8dbd4dba-701d-4110-acb3-6c8849fb07d5","block_type":"box","text":"I-21","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"9508b6f8-36bb-4ba6-a98b-aca364796f8d","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":30,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d3a6832-f7c1-4d9d-8359-eee9820ded7c","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":"b4fe60c6-e0e1-4973-addf-c8793c39d5e8","block_type":"box","text":"par ticipate in these plans.","page_number":31,"box":{"x":70,"y":60,"width":185,"height":11}},{"id":"2cb2d563-3ac4-4bfe-9314-ff30bd7e1c3b","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":31,"box":{"x":69,"y":90,"width":268,"height":11}},{"id":"261e86ac-fcb4-47ac-a135-9d3765b67b37","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":"4e728cfe-553a-4a8e-bb19-fea4ae0a0cc6","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":"f73746c9-c5b1-4cef-9eee-bd7ef62d6ec7","block_type":"box","text":"Portfolio Manager","page_number":31,"box":{"x":69,"y":166,"width":105,"height":9}},{"id":"3330ff4b-516f-410e-b608-d0c12d23f050","block_type":"box","text":"Dollar Range of Equity","page_number":31,"box":{"x":759,"y":156,"width":129,"height":9}},{"id":"ab46d3d8-0a31-4a09-84a4-819ac54fdd7d","block_type":"box","text":"Securities Beneficially Owned","page_number":31,"box":{"x":736,"y":166,"width":173,"height":9}},{"id":"b3c38487-e47f-4190-84d4-0430f611be10","block_type":"box","text":"Tony Kim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over $1,","page_number":31,"box":{"x":68,"y":183,"width":752,"height":12}},{"id":"4664c0b3-a554-4b94-9e0a-5f98437bb37a","block_type":"box","text":"000,000","page_number":31,"box":{"x":822,"y":184,"width":63,"height":10}},{"id":"b82da044-184e-4f93-9702-964e0db3b835","block_type":"box","text":"Reid Menge . . .","page_number":31,"box":{"x":70,"y":199,"width":105,"height":11}},{"id":"80270e68-8c30-4316-8ed7-b345194b303b","block_type":"box","text":".................................................................","page_number":31,"box":{"x":182,"y":206,"width":523,"height":2}},{"id":"b7062519-7f14-46ef-b867-2c662c071cd2","block_type":"box","text":"$100,001-$500,000","page_number":31,"box":{"x":749,"y":198,"width":148,"height":11}},{"id":"51f93dc9-40a3-46ab-b22b-d785a3af98ca","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":31,"box":{"x":69,"y":230,"width":403,"height":12}},{"id":"c6f31641-6619-4fbc-a203-b1c5335a2f09","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":31,"box":{"x":102,"y":253,"width":727,"height":11}},{"id":"af67f0bd-a2e4-40ed-86c5-9a9a597e54bd","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":268,"width":814,"height":12}},{"id":"9138d0f3-7bfd-4312-9d5f-51d37de7cc00","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":283,"width":837,"height":11}},{"id":"eb5f1a0c-1906-4a06-8c43-66a09ab27105","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":298,"width":810,"height":12}},{"id":"ee6f8675-8768-49db-a3ae-b33c49a7cc17","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":314,"width":782,"height":11}},{"id":"02dfe722-0c89-4746-93fe-a26e4bcd819b","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":329,"width":830,"height":11}},{"id":"9619a8b4-6f00-4a87-b934-7435e1f6b0f2","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":344,"width":828,"height":11}},{"id":"05bda7bc-f9b6-4210-a473-759ae32b09db","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":359,"width":834,"height":11}},{"id":"ce8142df-99db-4aa5-908e-c0996325d661","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":374,"width":777,"height":11}},{"id":"dffe6eb7-9e9b-4f54-aab5-9a9c222fa89b","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":389,"width":821,"height":11}},{"id":"778a7f47-49c0-4b4b-8bea-d713fccb16ba","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":405,"width":819,"height":10}},{"id":"ab4e4d99-dfde-479f-a99e-6160f6a28534","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":419,"width":832,"height":12}},{"id":"032bdc79-9665-44ad-972d-1407f0010c12","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":435,"width":804,"height":11}},{"id":"0a123ab0-a773-49b6-b15b-8d10c875462a","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":450,"width":760,"height":11}},{"id":"71f6ef43-cfb0-4bc0-aac6-5ec21e585bc3","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":465,"width":834,"height":11}},{"id":"b25ed695-00a1-46ac-a9f6-14da89a5dd20","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":480,"width":836,"height":11}},{"id":"14b55a5e-ac66-41f0-b1f5-522524d2c2e1","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":495,"width":822,"height":11}},{"id":"921f266a-16f2-4220-8bc3-d96c89a3240f","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":510,"width":835,"height":11}},{"id":"b1dddd76-0934-45f5-867b-0ca3ef381e9d","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Messrs. Kim and Menge may be","page_number":31,"box":{"x":69,"y":525,"width":779,"height":12}},{"id":"f0deb2e1-3bc6-48ca-a79c-282cccfb7a98","block_type":"box","text":"managing hedge fund and/or long only accounts, or may be par t of a team managing hedge fund and/or long only","page_number":31,"box":{"x":69,"y":540,"width":811,"height":12}},{"id":"717bcf13-b35f-4bec-8b51-93e0543691af","block_type":"box","text":"accounts, subject to incentive fees. Messrs. Kim and Menge may therefore be entitled to receive a por tion of any","page_number":31,"box":{"x":69,"y":555,"width":809,"height":12}},{"id":"0a35abab-92e2-4162-b405-2215d05ee3f7","block_type":"box","text":"incentive fees earned on such accounts.","page_number":31,"box":{"x":70,"y":571,"width":286,"height":9}},{"id":"8f74a960-0c1e-46d9-b53e-25f8cb033dd1","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":593,"width":788,"height":11}},{"id":"fbacff75-7a9a-4e01-a17e-c249658b272b","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":608,"width":839,"height":11}},{"id":"28747f4b-fa6e-453d-9704-b7b683d0d7f4","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":623,"width":823,"height":12}},{"id":"76179c38-a767-4884-8957-8a93c32068aa","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":639,"width":812,"height":11}},{"id":"4a91c048-bb3a-46ab-b392-2f3bacc32739","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":654,"width":777,"height":11}},{"id":"470885c7-865a-4069-8410-4b8c5652b538","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":669,"width":826,"height":11}},{"id":"cc2f5a3d-f039-4e19-81b8-266d9567acf8","block_type":"box","text":"Accounting Services","page_number":31,"box":{"x":68,"y":699,"width":150,"height":11}},{"id":"06efe411-95c7-46f9-963d-76eb42a91692","block_type":"box","text":"The Bank of New York Mellon (“BNY”) serves as the accounting services provider for the Fund. BNY records","page_number":31,"box":{"x":101,"y":722,"width":767,"height":11}},{"id":"efe9d78a-a112-46ad-beb5-f1d3dc760fae","block_type":"box","text":"investment, capital share and income and expense activities; verifies and transmits trade tickets; maintains","page_number":31,"box":{"x":70,"y":737,"width":769,"height":11}},{"id":"c3928cd4-92fa-43f5-99bf-15d433689f5f","block_type":"box","text":"accounting ledgers for investment securities; maintains tax lots; reconciles cash with the Fund’s custodian; repor ts","page_number":31,"box":{"x":69,"y":752,"width":823,"height":11}},{"id":"0bb63189-1576-4496-a27c-e26c21ad1bf8","block_type":"box","text":"cash balances to BlackRock; prepares cer tain financial statements; calculates expenses, gains, losses and income;","page_number":31,"box":{"x":69,"y":767,"width":830,"height":11}},{"id":"ebdc7f57-5289-4119-8d03-3474c99e1c41","block_type":"box","text":"controls disbursements; works with independent pricing sources; and computes and repor ts net asset value. In","page_number":31,"box":{"x":69,"y":783,"width":795,"height":11}},{"id":"4106e046-5f55-4fea-b17b-08e9fdcc1c0e","block_type":"box","text":"connection with its accounting services, BNY also provides cer tain administration services.","page_number":31,"box":{"x":69,"y":798,"width":650,"height":11}},{"id":"607cf68a-2f7d-4ca8-a700-7212ee736813","block_type":"box","text":"The table below shows the amounts paid by the Fund to BNY for accounting services for the periods shown:","page_number":31,"box":{"x":101,"y":820,"width":767,"height":11}},{"id":"75fc9eed-e0bc-4847-a99a-59f1bff738af","block_type":"box","text":"Fees Paid to BNY","page_number":31,"box":{"x":808,"y":848,"width":102,"height":7}},{"id":"79605b11-d3b1-4336-9e74-d27fa4169082","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . .","page_number":31,"box":{"x":70,"y":866,"width":283,"height":11}},{"id":"085eca96-f624-4270-86b1-a7154f91fb98","block_type":"box","text":"....................................................","page_number":31,"box":{"x":359,"y":874,"width":418,"height":1}},{"id":"3c815871-15cd-49bc-ac25-fd6c2e04a90b","block_type":"box","text":"$405,332","page_number":31,"box":{"x":823,"y":865,"width":71,"height":12}},{"id":"0d1e493d-67ff-4bfe-b056-eac82fed69aa","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . .","page_number":31,"box":{"x":70,"y":881,"width":283,"height":11}},{"id":"6763ec44-5d52-4924-b3c5-a30f1cc8f102","block_type":"box","text":"....................................................","page_number":31,"box":{"x":359,"y":889,"width":418,"height":1}},{"id":"fe0253f6-e38b-4048-a7a0-6f493b2e8d21","block_type":"box","text":"$354,887","page_number":31,"box":{"x":823,"y":881,"width":71,"height":11}},{"id":"869b1054-6ea4-47cd-8661-ec1e3984192f","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . .","page_number":31,"box":{"x":70,"y":896,"width":283,"height":11}},{"id":"f5e93a63-720d-4115-ba7d-2fb7cbc819df","block_type":"box","text":"....................................................","page_number":31,"box":{"x":359,"y":904,"width":418,"height":1}},{"id":"8e5057ae-8c0a-47cb-b06d-117cee2dc926","block_type":"box","text":"$297,035","page_number":31,"box":{"x":823,"y":896,"width":71,"height":11}},{"id":"310b48f2-71a7-4b3e-b9aa-fba6ca028490","block_type":"box","text":"I-22","page_number":31,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"324c6ac8-6f3e-405e-a175-95ea8e16b3d7","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":31,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bea44ae9-eaca-4a92-bca7-4e10ffeb57fe","block_type":"box","text":"Custodian","page_number":32,"box":{"x":69,"y":45,"width":72,"height":9}},{"id":"fda23490-955b-421f-a1e2-ab7190dc5d6d","block_type":"box","text":"BNY, which has its principal place of business at 240 Greenwich Street, New York, New York 10286, serves as","page_number":32,"box":{"x":102,"y":67,"width":790,"height":11}},{"id":"2e27563e-d67c-461a-aa92-eca7e966a847","block_type":"box","text":"the custodian for the Fund . 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The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate","page_number":32,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"5e7eb397-ee6a-4f64-92e7-6425be7ea443","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":400,"width":833,"height":11}},{"id":"f01b1d9d-45dd-45fa-9a7b-125aee545443","block_type":"box","text":"charged interest at a variable rate.","page_number":32,"box":{"x":69,"y":415,"width":245,"height":11}},{"id":"1fa337fa-fbb0-40cf-8233-16019256e183","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":32,"box":{"x":68,"y":445,"width":491,"height":11}},{"id":"a700e19f-ace4-4f32-9a4b-e293f113bcbe","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":468,"width":773,"height":11}},{"id":"a0f9e271-db55-4177-8253-a4b332ae0fdc","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":483,"width":812,"height":11}},{"id":"53fc39d0-97bc-4f0d-a02b-f20d9bd71277","block_type":"box","text":"years. 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$17,787","page_number":32,"box":{"x":731,"y":718,"width":174,"height":11}},{"id":"a4e95ab1-2f5d-47fb-918d-19fb05af7f3a","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":734,"width":474,"height":11}},{"id":"d6f3078d-b540-4b95-b1e6-139f437b2d9e","block_type":"box","text":".................","page_number":32,"box":{"x":550,"y":741,"width":132,"height":2}},{"id":"8302968b-eb81-419d-84ee-bc474b716f82","block_type":"box","text":"$14,023 $14,023","page_number":32,"box":{"x":731,"y":733,"width":175,"height":11}},{"id":"3932f030-d3b6-43bb-bed2-9f2c127724af","block_type":"box","text":"The table below provides information for the fiscal year ended May 31, 2026 shown about the 12b-1 fees the","page_number":32,"box":{"x":101,"y":758,"width":781,"height":11}},{"id":"1360fce6-2564-4fad-9347-af0c24656151","block_type":"box","text":"Fund paid to BRIL under the Fund’s 12b-1 plan. A por tion of the fees collected by BRIL were paid to affiliates for","page_number":32,"box":{"x":70,"y":773,"width":800,"height":11}},{"id":"17308374-7f1f-4124-a925-54d63c4dd149","block_type":"box","text":"providing shareholder servicing activities for Investor A and Service Shares and for providing shareholder servicing","page_number":32,"box":{"x":70,"y":788,"width":815,"height":11}},{"id":"a527e8fe-c8df-485c-b13a-6f03f9630683","block_type":"box","text":"and distribution-related activities and services for Investor C and Class R Shares.","page_number":32,"box":{"x":69,"y":803,"width":579,"height":9}},{"id":"1636b3d1-7803-4bd4-8d93-d50b481340e8","block_type":"box","text":"Class Name","page_number":32,"box":{"x":69,"y":831,"width":68,"height":7}},{"id":"39b1bfef-6546-41a6-ae0a-14a1b621330e","block_type":"box","text":"Fees Paid to BRIL","page_number":32,"box":{"x":806,"y":831,"width":103,"height":7}},{"id":"d462f0b5-77b2-4e14-8309-faab856c2912","block_type":"box","text":"Investor A Shares .","page_number":32,"box":{"x":70,"y":849,"width":134,"height":9}},{"id":"78ae8968-8cf5-4c1e-a15b-306dd0f09917","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,","page_number":32,"box":{"x":210,"y":848,"width":626,"height":12}},{"id":"88c0d361-0b07-4a2e-a18e-003c980ea02d","block_type":"box","text":"148,208","page_number":32,"box":{"x":839,"y":849,"width":62,"height":11}},{"id":"5f44f1b3-4579-43d1-9332-e40b91e7da50","block_type":"box","text":"Investor C Shares . . .","page_number":32,"box":{"x":70,"y":864,"width":150,"height":9}},{"id":"6d1db64e-90d0-47bc-8bea-3650678def77","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,","page_number":32,"box":{"x":226,"y":864,"width":610,"height":11}},{"id":"4657b1a5-0e39-4f2c-a9b2-4c93b7bc9e9f","block_type":"box","text":"127,385","page_number":32,"box":{"x":839,"y":864,"width":61,"height":11}},{"id":"3d00bcab-ce2b-4130-b5e5-38b5bf721a77","block_type":"box","text":"Class R Shares","page_number":32,"box":{"x":69,"y":879,"width":109,"height":9}},{"id":"3deeff3a-63be-4e51-8e71-e3ffcca1d2d6","block_type":"box","text":"......................................................................... $","page_number":32,"box":{"x":185,"y":879,"width":637,"height":10}},{"id":"b0351f77-93b7-4f97-ae44-a7868fe2c764","block_type":"box","text":"287,081","page_number":32,"box":{"x":839,"y":879,"width":62,"height":11}},{"id":"20ca6b29-d508-451d-939f-948ef7fba6d3","block_type":"box","text":"Service Shares . .","page_number":32,"box":{"x":69,"y":895,"width":126,"height":8}},{"id":"481617af-b407-430f-931f-7ad7fb766562","block_type":"box","text":"....................................................................... $","page_number":32,"box":{"x":202,"y":894,"width":620,"height":10}},{"id":"864aa500-c183-41ae-b272-e5068338edf5","block_type":"box","text":"139,171","page_number":32,"box":{"x":839,"y":895,"width":62,"height":10}},{"id":"9a252f89-51bf-4737-b699-4b358633b613","block_type":"box","text":"I-23","page_number":32,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"fae2513b-c89d-40da-9fe0-8811f9baa47a","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":32,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9b360875-2fc2-4301-9ac4-fbe6bbc33947","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":33,"box":{"x":68,"y":45,"width":318,"height":11}},{"id":"c8bf7777-7600-4f9f-908d-e0a59d0e67f1","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":67,"width":805,"height":12}},{"id":"3fa4c707-2a76-429e-b0d3-fd7bdb6b9e06","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":82,"width":827,"height":12}},{"id":"93cd4645-086d-41cb-9ec6-a5c81eca79cd","block_type":"box","text":"for th below.","page_number":33,"box":{"x":68,"y":98,"width":83,"height":9}},{"id":"da4d80b5-3d78-4c70-92a9-ea0dadb85b08","block_type":"box","text":"Investor A Shares","page_number":33,"box":{"x":798,"y":126,"width":102,"height":7}},{"id":"c83372dd-e569-4da0-af4a-5864c63145da","block_type":"box","text":"Net Assets . . .","page_number":33,"box":{"x":70,"y":144,"width":100,"height":9}},{"id":"811dde0d-fac8-45bf-8ad8-9a20e8baec18","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,247,","page_number":33,"box":{"x":176,"y":143,"width":669,"height":11}},{"id":"4fab23ec-fb6f-4f62-ada6-f1bfe1e2f0ca","block_type":"box","text":"176,113","page_number":33,"box":{"x":847,"y":144,"width":62,"height":10}},{"id":"84c1a87b-302a-4cf5-ab0f-5c5eeedbd17b","block_type":"box","text":"Number of Shares Outstanding . . . . . . . . . . . .","page_number":33,"box":{"x":70,"y":159,"width":320,"height":11}},{"id":"1c86afad-955f-4ff6-8db5-f8963e182624","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,","page_number":33,"box":{"x":396,"y":159,"width":449,"height":10}},{"id":"f5d72aad-2aa5-47d3-aafa-85ee2b845710","block_type":"box","text":"893,916","page_number":33,"box":{"x":847,"y":159,"width":62,"height":10}},{"id":"6ea66681-ed08-4aa9-b686-10b8be0c4795","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":33,"box":{"x":70,"y":174,"width":571,"height":11}},{"id":"9c1f34e1-07be-46cd-a51f-dbdf4d0de3c2","block_type":"box","text":"..............","page_number":33,"box":{"x":649,"y":181,"width":108,"height":2}},{"id":"f359a4bc-c5f2-4fa6-8b44-513f9f94bf4c","block_type":"box","text":"$95.80","page_number":33,"box":{"x":857,"y":173,"width":52,"height":11}},{"id":"6813a347-5640-42f0-9b37-f524850e62f8","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":189,"width":534,"height":11}},{"id":"2f523b77-21ec-43b3-9871-43246661d8d0","block_type":"box","text":"1","page_number":33,"box":{"x":604,"y":189,"width":4,"height":5}},{"id":"fb8f4365-b269-4c62-8421-a6e9b9373df2","block_type":"box","text":". . . . . . . . . . . . . . . . . . $5.29","page_number":33,"box":{"x":616,"y":188,"width":293,"height":11}},{"id":"ebcb33fc-b3dd-42e0-aa55-5d1d57abbec0","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":69,"y":208,"width":687,"height":12}},{"id":"04d92495-525e-4417-9021-acfaa4fa0cf8","block_type":"box","text":"$100.72","page_number":33,"box":{"x":847,"y":208,"width":62,"height":10}},{"id":"fc335b30-8d87-404d-8f72-09adf4ac6f87","block_type":"box","text":"1","page_number":33,"box":{"x":69,"y":241,"width":3,"height":3}},{"id":"c953dca2-b77b-4b01-bcf8-943172047473","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":33,"box":{"x":94,"y":241,"width":541,"height":8}},{"id":"2f08d60c-3839-4ed0-8040-b8d555b67693","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’s net asset value computed as","page_number":33,"box":{"x":101,"y":261,"width":796,"height":12}},{"id":"87abb325-283b-457f-80bc-7b8dad4d091c","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":276,"width":833,"height":12}},{"id":"dfcb558c-4ffd-4aa3-9a15-58b72f9fc3f6","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":292,"width":813,"height":11}},{"id":"7c16df4e-f463-41cb-833c-f0e8179c9ad3","block_type":"box","text":"Shares” and “Pricing of Shares” in Par t II of this SAI.","page_number":33,"box":{"x":69,"y":307,"width":377,"height":11}},{"id":"32c78c95-068c-44a3-84cf-4343fc377a74","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":33,"box":{"x":68,"y":337,"width":302,"height":11}},{"id":"d9ae965b-b1fe-48bf-9684-bbd891c58987","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":360,"width":609,"height":11}},{"id":"716467d7-a79e-4eb7-b552-863a4fb5c090","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, during","page_number":33,"box":{"x":102,"y":382,"width":798,"height":12}},{"id":"9e75ef84-29ef-4c26-a787-add07440f127","block_type":"box","text":"the past three fiscal years is set for th in the following tables:","page_number":33,"box":{"x":68,"y":397,"width":435,"height":12}},{"id":"0480611e-d61e-4a19-9263-0d1e39995077","block_type":"box","text":"Aggregate Brokerage","page_number":33,"box":{"x":613,"y":426,"width":125,"height":9}},{"id":"a29f9def-2e9b-4f97-83a4-e7b999b55af2","block_type":"box","text":"Commissions Paid","page_number":33,"box":{"x":623,"y":436,"width":106,"height":7}},{"id":"a69814c4-1693-4314-8462-ff44be8125fe","block_type":"box","text":"Brokerage Commissions","page_number":33,"box":{"x":769,"y":426,"width":140,"height":9}},{"id":"f3b1a554-6435-46c9-8cfa-e7ea3c8395be","block_type":"box","text":"Paid to Affiliates","page_number":33,"box":{"x":791,"y":436,"width":96,"height":7}},{"id":"91b10509-2114-4665-a6eb-96a3e4440505","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . .","page_number":33,"box":{"x":70,"y":454,"width":292,"height":11}},{"id":"a1cb85e6-e190-44a9-b67e-c79ae059f032","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . $2,","page_number":33,"box":{"x":369,"y":453,"width":286,"height":11}},{"id":"9cb8a017-d28d-4f94-ab02-a6bbd1ce6ce7","block_type":"box","text":"096,772","page_number":33,"box":{"x":657,"y":454,"width":62,"height":10}},{"id":"1a34b9c3-8b8f-48fd-97ee-79dbf79459e2","block_type":"box","text":"1","page_number":33,"box":{"x":720,"y":454,"width":4,"height":4}},{"id":"3831c9d3-27ee-40c2-802c-33a679e5dbc7","block_type":"box","text":"$0","page_number":33,"box":{"x":830,"y":453,"width":18,"height":10}},{"id":"143f2fd9-d558-436c-a84e-89ab553a9837","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . .","page_number":33,"box":{"x":70,"y":469,"width":292,"height":11}},{"id":"e221efff-506d-45dd-94a4-2021563122c8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":33,"box":{"x":369,"y":468,"width":286,"height":11}},{"id":"f8577ba5-1271-4482-ab7e-c686caf10859","block_type":"box","text":"042,686 $0","page_number":33,"box":{"x":657,"y":468,"width":191,"height":11}},{"id":"423f0d44-2af1-4469-8e57-73d03c017d5e","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . .","page_number":33,"box":{"x":70,"y":484,"width":292,"height":11}},{"id":"b4bcaf2b-246e-40a6-aa2c-bb278bfad526","block_type":"box","text":"........................... $","page_number":33,"box":{"x":369,"y":483,"width":272,"height":11}},{"id":"595f608c-8e40-4343-92d3-3ad16ef6e78a","block_type":"box","text":"937,353 $0","page_number":33,"box":{"x":657,"y":483,"width":191,"height":11}},{"id":"347137ae-48fe-4024-86c6-c0720ed050fe","block_type":"box","text":"1.","page_number":33,"box":{"x":69,"y":508,"width":5,"height":4}},{"id":"14a02a78-b081-4f2a-8c9b-d93a6e679aa4","block_type":"box","text":"The increase in brokerage commissions paid by the Fund as compared to the prior fiscal year was due to an increase in trading volume","page_number":33,"box":{"x":93,"y":508,"width":770,"height":9}},{"id":"a4e2da5a-67b1-41b4-a96f-5b6ebd103d3c","block_type":"box","text":"resulting from market volatility.","page_number":33,"box":{"x":94,"y":518,"width":173,"height":9}},{"id":"738ee73d-c711-44b1-9879-105c2a374793","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":539,"width":770,"height":11}},{"id":"be7aa829-9d3c-4f8b-92ce-06126f50bf01","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":554,"width":814,"height":12}},{"id":"d27e1f53-0b16-4018-977a-42ef077a842f","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":569,"width":829,"height":12}},{"id":"0a47960c-26e7-44ac-8e6b-0491c2367a54","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":584,"width":822,"height":12}},{"id":"9d19865a-5850-4f15-82f6-71077bb718c2","block_type":"box","text":"with such brokers.","page_number":33,"box":{"x":68,"y":600,"width":130,"height":9}},{"id":"06980516-3374-4810-a51a-160311f9c85a","block_type":"box","text":"Amount of Commissions","page_number":33,"box":{"x":264,"y":628,"width":141,"height":7}},{"id":"cb7ebc92-c9ab-4d57-a29c-7246e0d19012","block_type":"box","text":"Paid to Brokers for","page_number":33,"box":{"x":280,"y":638,"width":110,"height":7}},{"id":"2e8d24d6-93b7-4ae6-a017-b85a5917ebff","block_type":"box","text":"Providing 28(e) Eligible","page_number":33,"box":{"x":267,"y":648,"width":136,"height":9}},{"id":"2d1c11b1-99ad-4120-a956-d0a9056530a3","block_type":"box","text":"Research Services","page_number":33,"box":{"x":281,"y":658,"width":108,"height":7}},{"id":"927d3bb7-9a0c-48f2-983a-4811524d20f1","block_type":"box","text":"Amount of Brokerage","page_number":33,"box":{"x":588,"y":648,"width":124,"height":9}},{"id":"d676373b-2dd7-4f2b-af09-7eac493f3804","block_type":"box","text":"Transactions Involved","page_number":33,"box":{"x":587,"y":658,"width":126,"height":7}},{"id":"df483444-f471-4bd2-9de3-c3b6c6ae520f","block_type":"box","text":"$940,153 $3,148,738,962","page_number":33,"box":{"x":299,"y":675,"width":412,"height":11}},{"id":"cc3e12f6-38fc-43e7-b0ce-d8c884001b1e","block_type":"box","text":"As of May 31, 2026, the Fund held no securities of its regular brokers or dealers (as defined in Rule 10b-1 under","page_number":33,"box":{"x":101,"y":700,"width":808,"height":11}},{"id":"419dce7f-e1e9-407d-a79f-dfe581bf72aa","block_type":"box","text":"the Investment Company Act) or their parents whose shares were purchased during the fiscal year ended","page_number":33,"box":{"x":68,"y":715,"width":748,"height":11}},{"id":"96983882-c180-44ac-a282-b59de02e94ae","block_type":"box","text":"May 31, 2026.","page_number":33,"box":{"x":70,"y":730,"width":104,"height":11}},{"id":"3d9b0e62-8665-4300-9dcd-84a48a2bca92","block_type":"box","text":"Securities Lending","page_number":33,"box":{"x":68,"y":760,"width":135,"height":11}},{"id":"591d0169-c880-4277-897f-e8697d9c2641","block_type":"box","text":"To the extent that the Fund engages in securities lending, the Fund conducts its securities lending pursuant to an","page_number":33,"box":{"x":101,"y":783,"width":807,"height":11}},{"id":"b55aac37-5fe5-4e1d-81e7-0802ea4e9e35","block_type":"box","text":"exemptive order from the Commission permitting it to lend por tfolio securities to borrowers affiliated with the Fund","page_number":33,"box":{"x":69,"y":798,"width":817,"height":11}},{"id":"51f3cd35-66d0-4c8b-91f5-bd587ab48f44","block_type":"box","text":"and to retain an affiliate of the Fund as securities lending agent. To the extent that the Fund engages in securities","page_number":33,"box":{"x":69,"y":813,"width":813,"height":11}},{"id":"e40cae95-bd68-417b-a945-a0eac76b037b","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":33,"box":{"x":70,"y":828,"width":838,"height":12}},{"id":"caddee46-264e-4767-b6e1-ab356ba38107","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":33,"box":{"x":69,"y":843,"width":813,"height":12}},{"id":"2e71b62e-b91f-4a8c-b1b0-79c9ad1367ed","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":33,"box":{"x":70,"y":859,"width":646,"height":11}},{"id":"bef89cd8-1b0f-455e-a523-76be629dbb9a","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":33,"box":{"x":101,"y":881,"width":735,"height":11}},{"id":"5a171f2b-2063-49dd-8aa8-71ce36f4a77f","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":33,"box":{"x":69,"y":896,"width":834,"height":12}},{"id":"1e1b0e62-32dd-4250-8f35-95d5d158f46f","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":33,"box":{"x":70,"y":911,"width":822,"height":11}},{"id":"4af85de2-eaa4-4de6-9873-88bed8c65cb5","block_type":"box","text":"I-24","page_number":33,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"79f8c26d-3f29-4e68-9142-282ec85a7e2c","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":33,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e9e63916-b914-44dd-a3ec-b39a82f16b36","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":45,"width":787,"height":11}},{"id":"25ca9711-4697-42f3-a37f-461dbeaf65f0","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":60,"width":783,"height":11}},{"id":"00dc19d7-8fc5-4d99-8fd9-4801e75b84d8","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":75,"width":800,"height":11}},{"id":"48666ee0-0a70-4c29-a3e9-047ca9960b58","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":90,"width":813,"height":11}},{"id":"69f5a1ca-fd64-4926-8f77-ecfc0baecb78","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":105,"width":830,"height":11}},{"id":"baadf07e-cb37-4705-84d4-38332ebfb98f","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":120,"width":773,"height":11}},{"id":"d9e509d6-f1b2-48cc-8763-5ed80b878509","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":143,"width":776,"height":11}},{"id":"9d4e6aac-515f-4abe-ad5a-7218bdd36b18","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":158,"width":831,"height":11}},{"id":"48e7a6b2-9345-4026-aaa0-294597c80fff","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":173,"width":812,"height":11}},{"id":"1fee65f8-cc14-43cc-b890-935b19054467","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":188,"width":799,"height":11}},{"id":"bf2c2639-ad61-4114-a006-4acc3f67a99c","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":203,"width":835,"height":12}},{"id":"4777a8c4-95a5-4c96-bb0b-449e78f61111","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":218,"width":818,"height":12}},{"id":"805456f8-4fd5-4252-9b40-3ea2cc33c558","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":234,"width":789,"height":11}},{"id":"13e558ed-3a73-40e0-8982-28e2d4b26f07","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":249,"width":829,"height":11}},{"id":"a860b781-3d54-4a61-8264-a09a16ef97e2","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":264,"width":839,"height":11}},{"id":"bb003333-8261-4a5d-909c-38a1b91ec53d","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":279,"width":802,"height":11}},{"id":"d6f74eff-fcd4-4b1c-99df-10f1cdf0eb93","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":294,"width":830,"height":11}},{"id":"b9260ef5-070e-4c93-9ced-a8e9b050d26d","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":309,"width":838,"height":11}},{"id":"5b6fc92d-bf89-4a99-a4aa-fce5ed659d45","block_type":"box","text":"Fund’s returns on securities lending.","page_number":34,"box":{"x":70,"y":325,"width":258,"height":11}},{"id":"b302f3ed-b38d-4a1f-81f7-72f09e106f2b","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":347,"width":774,"height":11}},{"id":"2817b052-9279-4d79-8a22-6722ff9fa7a7","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":362,"width":794,"height":11}},{"id":"561dd009-7419-456b-b603-9bc94faf0651","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":377,"width":809,"height":12}},{"id":"94b2a6a5-d7f1-4839-85af-2f849e220937","block_type":"box","text":"Trust and BIM.","page_number":34,"box":{"x":68,"y":393,"width":103,"height":8}},{"id":"44b520ee-6ff2-4106-ae17-081f7eae5214","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":415,"width":783,"height":11}},{"id":"66973645-090d-4933-b832-b7e2936c71fe","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":430,"width":815,"height":11}},{"id":"11d26859-214e-4145-a439-85efccdcc115","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":34,"box":{"x":69,"y":445,"width":463,"height":12}},{"id":"a032878e-a9ac-4e00-8243-315bb7a17187","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":468,"width":753,"height":11}},{"id":"7e3b4eea-2132-409d-b7b4-50f38082679a","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":483,"width":778,"height":11}},{"id":"d542bc95-8684-4924-adbb-ba68cb43a829","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":498,"width":817,"height":11}},{"id":"d24b9b19-5ce3-4bd1-9741-1122c913b7b9","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":513,"width":794,"height":12}},{"id":"cd15821a-c592-4277-afee-ac6c6edcebde","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":528,"width":825,"height":12}},{"id":"7617c4d1-33ea-46be-93b7-b589ebf6fd34","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":551,"width":683,"height":11}},{"id":"89790c14-fe53-4a1b-b605-2ad9013e81f9","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":574,"width":803,"height":11}},{"id":"4efc14e8-4a24-4576-bbdb-b901ff1a41c3","block_type":"box","text":"the following:","page_number":34,"box":{"x":68,"y":589,"width":93,"height":11}},{"id":"034aee7f-343e-4e1b-acd2-4de7eea3d442","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":609,"width":818,"height":11}},{"id":"6d254dc5-286b-4caf-a9fa-d2292ccf7312","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":34,"box":{"x":102,"y":624,"width":333,"height":11}},{"id":"a90868dc-c50b-479f-b2e3-f3e0c6261a38","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":34,"box":{"x":69,"y":644,"width":538,"height":12}},{"id":"c8fcb47b-c567-4b64-8c29-07bb5ff69b8b","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":34,"box":{"x":69,"y":664,"width":330,"height":12}},{"id":"5229725f-9143-4024-bc66-5af82f984301","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":685,"width":834,"height":11}},{"id":"93f5d6e3-1627-4024-928e-aad4173f5322","block_type":"box","text":"of excess collateral, as necessary;","page_number":34,"box":{"x":102,"y":700,"width":246,"height":11}},{"id":"c123c7f5-2d78-4412-ab85-3f5132ea8804","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":34,"box":{"x":69,"y":720,"width":562,"height":11}},{"id":"df3ac9cc-5f98-42bb-a936-02cedf5a8dc4","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":34,"box":{"x":69,"y":740,"width":665,"height":11}},{"id":"26b33bbe-1ae4-49d4-8193-9e777a97b7d5","block_type":"box","text":"(7) in the event of default by a borrower with respect to any securities loan, using the collateral or the proceeds of","page_number":34,"box":{"x":69,"y":760,"width":822,"height":12}},{"id":"1e43f90e-5777-4c89-a305-6d6494a903a7","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":34,"box":{"x":101,"y":775,"width":803,"height":11}},{"id":"f1712481-a211-4525-805d-bf9a99ab4125","block_type":"box","text":"of the loaned securities; and","page_number":34,"box":{"x":102,"y":790,"width":203,"height":11}},{"id":"c2c95fb1-47a5-4a68-96e0-1e3747e43bfd","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":34,"box":{"x":69,"y":811,"width":808,"height":11}},{"id":"96299adc-f4e3-4e08-b959-66a459f17f36","block_type":"box","text":"I-25","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"5f5a9a59-67d4-4bd1-a75c-a4de6cacf606","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":34,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"680f70e5-f010-40e6-ba63-0ab769fec7c5","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":35,"box":{"x":101,"y":45,"width":805,"height":11}},{"id":"cc680d5c-2e6b-4bef-a3c6-69ef41614203","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended May 31, 2026.","page_number":35,"box":{"x":69,"y":60,"width":546,"height":11}},{"id":"b23eed71-1254-48b1-a5b5-a5366e78044a","block_type":"box","text":"Gross income from securities lending activities","page_number":35,"box":{"x":69,"y":88,"width":343,"height":11}},{"id":"71f6ea13-bc08-4e66-91d5-472c6f38870a","block_type":"box","text":"................................................","page_number":35,"box":{"x":416,"y":95,"width":385,"height":1}},{"id":"2daba82f-172d-4ac0-a5f7-f6ff23f3d4df","block_type":"box","text":"$2,738,932","page_number":35,"box":{"x":822,"y":87,"width":87,"height":11}},{"id":"a2b12a8f-3af6-4cd1-b9e1-66055e3b8825","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":35,"box":{"x":70,"y":107,"width":565,"height":11}},{"id":"1997f93f-c5ed-45c7-b070-3d2f265750db","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":35,"box":{"x":79,"y":122,"width":599,"height":11}},{"id":"ea30141d-74a4-42a7-b626-b56e95a45270","block_type":"box","text":"............... $","page_number":35,"box":{"x":685,"y":121,"width":145,"height":11}},{"id":"ff5dc55c-597d-45e2-b78b-a34b841c6df8","block_type":"box","text":"290,707","page_number":35,"box":{"x":847,"y":122,"width":61,"height":11}},{"id":"3a2f7b30-ca1c-4f6d-a759-68fd28c2c24b","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM . .","page_number":35,"box":{"x":79,"y":137,"width":673,"height":12}},{"id":"13fa8dba-caa8-4697-89a3-f4271ee29e77","block_type":"box","text":". . . . . . $ 18,392","page_number":35,"box":{"x":758,"y":137,"width":151,"height":11}},{"id":"e970bfd7-3b6a-40ff-ad47-bc2876e7d3ec","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":35,"box":{"x":78,"y":152,"width":551,"height":12}},{"id":"30512f18-19fe-4739-93e8-d77b72f279e5","block_type":"box","text":"..................... $ 0","page_number":35,"box":{"x":636,"y":152,"width":273,"height":10}},{"id":"878fa9b6-a746-4814-9d06-21d006e67f61","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":35,"box":{"x":79,"y":167,"width":567,"height":12}},{"id":"bd300083-02a6-44c1-91f5-9f361ab32bca","block_type":"box","text":"................... $ 0","page_number":35,"box":{"x":652,"y":167,"width":257,"height":10}},{"id":"92249154-19e2-4974-8b47-52bfc9381416","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . .","page_number":35,"box":{"x":79,"y":183,"width":289,"height":11}},{"id":"893b66d5-8e4c-49b4-adb9-514e2c65df33","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":35,"box":{"x":375,"y":182,"width":470,"height":11}},{"id":"e0ac7b68-c7ee-481e-b6eb-4f972fe59aef","block_type":"box","text":"179,770","page_number":35,"box":{"x":847,"y":183,"width":62,"height":10}},{"id":"c27548e9-940e-4d5c-8686-eb8f309a29e7","block_type":"box","text":"Other fees not included in securities lending income paid to BIM. . . . . . . . . . .","page_number":35,"box":{"x":79,"y":198,"width":542,"height":11}},{"id":"716f98a3-a63f-4158-b4fa-1db6d9b0c643","block_type":"box","text":"...................... $ 0","page_number":35,"box":{"x":628,"y":197,"width":281,"height":11}},{"id":"83a210f4-917e-4d27-857d-48651ce6e4ad","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":35,"box":{"x":68,"y":213,"width":455,"height":11}},{"id":"a3951fb7-100d-441c-a827-20a5d9fe2af7","block_type":"box","text":"..................................","page_number":35,"box":{"x":530,"y":220,"width":271,"height":2}},{"id":"f3d7e164-d3fa-4c49-a2c0-398e6fc77a36","block_type":"box","text":"$1,488,869","page_number":35,"box":{"x":822,"y":212,"width":87,"height":12}},{"id":"ee7f3d67-6c8c-4f28-9a5a-a7779e0fc334","block_type":"box","text":"Net income from securities lending activities","page_number":35,"box":{"x":69,"y":232,"width":327,"height":11}},{"id":"74119b63-c269-4a84-ba05-9161bf87eda9","block_type":"box","text":"..................................................","page_number":35,"box":{"x":399,"y":240,"width":402,"height":1}},{"id":"4f9374e9-9d11-440c-b0a3-5dff85c138db","block_type":"box","text":"$1,250,063","page_number":35,"box":{"x":822,"y":232,"width":87,"height":11}},{"id":"c033e507-db4e-42e1-a042-a15335335823","block_type":"box","text":"VIII. 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Please see below for the per formance of MSCI All","page_number":35,"box":{"x":69,"y":427,"width":794,"height":11}},{"id":"50b50902-e5e8-4df2-bd25-28ee1ad35ccf","block_type":"box","text":"Country World Index, MSCI All-Country World Information Technology 10/40 Index and MSCI All-Country World","page_number":35,"box":{"x":69,"y":442,"width":777,"height":11}},{"id":"628cce07-8e4a-4777-b479-71d124a206bf","block_type":"box","text":"Information Technology Index that do not reflect the deduction of such maximum withholding taxes for the period","page_number":35,"box":{"x":70,"y":457,"width":799,"height":12}},{"id":"1b57f98b-98e3-44a7-9d2d-9c664e058281","block_type":"box","text":"noted below:","page_number":35,"box":{"x":69,"y":473,"width":89,"height":8}},{"id":"34a0f2a1-81d4-4b75-bdc2-1b8c761c4095","block_type":"box","text":"For the periods ended 12/31/25","page_number":35,"box":{"x":69,"y":501,"width":193,"height":8}},{"id":"b202892e-92ed-4be7-aaea-9eecc0b7914c","block_type":"box","text":"Average Annual Total Returns","page_number":35,"box":{"x":68,"y":511,"width":173,"height":9}},{"id":"b82b6993-a5c0-4279-b251-c60a5bc3ba36","block_type":"box","text":"1 Year 5 Years 10 Years","page_number":35,"box":{"x":716,"y":511,"width":193,"height":7}},{"id":"1aa5319e-2d11-4e23-b468-8c7b3355737a","block_type":"box","text":"MSCI All Country World Index","page_number":35,"box":{"x":70,"y":529,"width":205,"height":11}},{"id":"0b2f5336-4f5c-4485-a688-82ab76d42c44","block_type":"box","text":"(Reflects no deduction for fees, expenses or taxes) . . . . . . . .","page_number":35,"box":{"x":79,"y":543,"width":431,"height":11}},{"id":"bdf0f878-0613-47a4-b647-c05178162a0e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . 22.87% 11.70% 12.28%","page_number":35,"box":{"x":516,"y":543,"width":401,"height":9}},{"id":"b1ec6c38-c3f5-4679-b79e-28f7b3a29ecf","block_type":"box","text":"MSCI All-Country World Information Technology 10/40 Index","page_number":35,"box":{"x":70,"y":558,"width":425,"height":11}},{"id":"00307f83-7efc-4d4a-8742-3fc11b07599e","block_type":"box","text":"(Reflects no deduction for fees, expenses or taxes) . . . . . . . .","page_number":35,"box":{"x":79,"y":572,"width":431,"height":12}},{"id":"9a1a01ae-48f6-4b04-903f-8aa7d7e7bb4c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . 30.46% N/A N/A","page_number":35,"box":{"x":516,"y":573,"width":382,"height":11}},{"id":"379d3134-52dc-4325-b200-9d71c43c27f7","block_type":"box","text":"MSCI All-Country World Information Technology Index","page_number":35,"box":{"x":70,"y":588,"width":373,"height":11}},{"id":"bd25bf63-a428-410d-a20f-b8d6ed6a2f93","block_type":"box","text":"(Reflects no deduction for fees, expenses or taxes) . . . . . . . .","page_number":35,"box":{"x":79,"y":602,"width":431,"height":11}},{"id":"07b85cae-ac54-4a65-b081-8b94bdbd7da3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . 26.62% 17.43% 21.98%","page_number":35,"box":{"x":516,"y":602,"width":401,"height":9}},{"id":"cc1de8e1-766c-448e-a511-ab6cf08d9d87","block_type":"box","text":"The Trust","page_number":35,"box":{"x":68,"y":634,"width":69,"height":9}},{"id":"c2546fc5-40ee-44d2-8d3c-23495b2cead8","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":656,"width":807,"height":12}},{"id":"218e9076-e43c-403c-852c-baa8b9ebea5e","block_type":"box","text":"Investment Company Act as an open-end management investment company. 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Financial Statements","page_number":38,"box":{"x":69,"y":45,"width":179,"height":9}},{"id":"26c41f92-d0c7-44b4-ab87-36203830959a","block_type":"box","text":"The audited financial statements, financial highlights and notes thereto in the Fund’s Annual Financial","page_number":38,"box":{"x":101,"y":67,"width":726,"height":12}},{"id":"43c375e4-6ee4-4868-bb7d-84eb4c8cf665","block_type":"box","text":"Statements and Additional Information for the fiscal year ended May 31, 2026, as filed with the SEC on Form N-CSR","page_number":38,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"d4c48a8a-fe70-4733-adaa-4a6e9330c345","block_type":"box","text":"(the “2026 Annual Financial Statements”), are incorporated in this SAI by reference. No other par ts of the 2026","page_number":38,"box":{"x":69,"y":98,"width":800,"height":11}},{"id":"aaefa168-b0b6-465d-a66e-4d5e81d310a3","block_type":"box","text":"Annual Financial Statements are incorporated by reference herein. The 2026 Annual Financial Statements have been","page_number":38,"box":{"x":68,"y":113,"width":833,"height":11}},{"id":"80aee293-0677-4396-b7e8-71c0f64d47c4","block_type":"box","text":"audited by Deloitte & Touche LLP. The repor t of Deloitte & Touche LLP is incorporated herein by reference. Such 2026","page_number":38,"box":{"x":69,"y":128,"width":839,"height":11}},{"id":"403082fd-a090-4a6e-aea8-a740e4ebf175","block_type":"box","text":"Annual Financial Statements have been incorporated herein in reliance upon the repor t of such firm given their","page_number":38,"box":{"x":68,"y":143,"width":790,"height":11}},{"id":"7fad1ae1-cdb7-4203-899e-8a5f815cb4f5","block_type":"box","text":"authority as exper ts in accounting and auditing. Additional copies of the Fund’s annual and semi-annual repor ts to","page_number":38,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"5ab9b60f-b2c5-46f9-9450-7427f2a3bf2c","block_type":"box","text":"shareholders and the Fund’s Annual and Semi-Annual Financial Statements and Additional Information may be","page_number":38,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"67024d7d-6cd1-4d6b-88f4-263e012ef0b2","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":38,"box":{"x":69,"y":188,"width":836,"height":12}},{"id":"b01bafce-531b-4efd-8dcc-de691ebc0f48","block_type":"box","text":"I-29","page_number":38,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"c9e293c2-2d7a-458d-a041-fe56ca14b371","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"599f6e15-e7bf-469d-b2a6-3cadb7b67b47","block_type":"box","text":"PART II","page_number":39,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"abd2ff56-b0f3-42f5-bbb1-343cdef888a7","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":39,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"a2e14386-6a45-45b1-af29-2fb88ca5d1df","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":39,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"0e584359-553f-456d-843b-3062335dcd65","block_type":"box","text":"they invest cer tain of their assets in municipal investments described below.","page_number":39,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"d16640fe-a0cd-4602-8b2b-fc082bf1f8cb","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":39,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"51ecd933-a5cc-43d5-b9c7-7fde67790887","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":39,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"5697972e-4cd5-46a4-b292-03e31d33965a","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":39,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"f91fe4b6-c1fd-4e5e-9064-38505bb7e69b","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":39,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"5603ca1c-8f3a-492e-9543-b5ee523e1389","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":39,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"b780bc60-b58d-4640-b724-01b3061c63ab","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":39,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"8657a859-03f2-4548-8e18-a5993fc4b5f6","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":39,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"30e6112d-6674-4a9b-8dd6-eb696c70c620","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":39,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"44806688-6615-4ea4-84d1-7ce30fab2e00","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":39,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"4ec834ce-9f54-4feb-b8b9-c56cfe4b722b","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":39,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"3b50ddba-cca6-4c5c-8a62-da1fa053ca94","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":39,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"3fdcfe0f-1234-4601-9e0a-eeb9eb60cca9","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":39,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"7a7e71f9-f9f1-40ec-af68-21d08753d750","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":39,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"229288e6-6d3a-487a-a50b-4f92aa6c30a9","block_type":"box","text":"corresponding “master” por tfolio (each, a “Master Por tfolio”) of a master limited liability company (each, a “Master","page_number":39,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"45d6ec6c-d34d-40e7-8cb2-045e0fa36ece","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":39,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"347e302b-6ec4-4494-8cb5-43f3baafb97b","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":39,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"b8f99d95-bec0-4542-9bce-23dfa4310dcd","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Por tfolio in","page_number":39,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"11136d5e-7d62-4e64-b55a-a14086865628","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":39,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"67c983f4-a3cb-4caa-84a6-dac940ca6dd1","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":39,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"e0d3f45f-8783-453e-8f84-e989f7c8c6fe","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":39,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"52022a12-bf90-43f3-9696-6bc943607d83","block_type":"box","text":"par ticular Fund.","page_number":39,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"be48b940-b706-4451-bd1b-c03d7f522f09","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":39,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"b3bb8d4b-86b7-4aad-90ab-643d1fe52f31","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":39,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"f4cd3697-7bd8-4d87-b907-0b698bb9b3e6","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":39,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"e46fe055-9970-4ecb-b4c8-8a1a936fe181","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":39,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"6e204ed4-a0fa-4555-b79b-9a264f768f3c","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":39,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"ee07ebdb-b5f4-4fc2-9b0c-31f15981bfbe","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":39,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"2d93aa0a-c8b1-4fd1-bcc2-addc36d84421","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":39,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"8493ccb9-6fea-4de3-9b06-d0cd9b836096","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":39,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"b89eeaf7-1b99-43dc-9397-66e00f7100be","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":39,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"1ca481ad-4c7f-4d67-af19-592890aecf49","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":39,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"e93e954f-67a8-44de-97bf-84e46b3e48cf","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":39,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"01c38854-037f-4866-a321-bc9146b9f9d3","block_type":"box","text":"Asset-Backed Securities.","page_number":39,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"cb58a6ec-759d-4379-9014-573150433bdd","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":39,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"a4886b04-8f17-4131-836e-26a12b200337","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":39,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"bffa17c1-fce4-4a46-abd5-2e8332830854","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":39,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"feb22f8b-4c96-4db1-8700-6348e4b1b05e","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":39,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"0e39d685-df8b-4a40-aebc-eb637aee6df5","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":39,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"27785fb6-54de-4916-b427-8105436b9d40","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":39,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"bc0d3c06-d608-4edf-a301-9026fb018c53","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":39,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"01570734-9aa5-4582-bc89-40de18ebb3bb","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":39,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"faa41c60-7d7c-4d9a-95af-e6967c83545b","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":39,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"9455798f-293f-4d0b-a791-91a4008f69a0","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":39,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"c3778c98-159f-4b15-9171-974187b321cc","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":39,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"9835f3c5-4a2e-4382-9e66-2a0e74d49c66","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":39,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"c53f4f0f-a46f-4afb-aa7c-ceb0de6b91ed","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":39,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"fbde4b1b-1af1-457d-b5a5-dce9dce41f11","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":39,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"0a413861-1eb7-46bf-a7c8-07f5370ff12e","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":39,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"cdaab534-55bf-4857-9caf-6bb3b1701790","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":39,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"47fe1fe9-1878-4967-aedc-a28ef76eeb9f","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":39,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"ca52260d-9236-40b9-87c1-9b2b0980c275","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":39,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"0a0a67e0-96f3-4ffe-a77c-bd92fcbe9476","block_type":"box","text":"II-1","page_number":39,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"a6fe5c2d-4625-4c71-9246-0e09e75a77c7","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"61072bf5-fbfd-431e-a71e-b577e43d6bc3","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":40,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"4cf48a26-6fcb-497a-8fb4-7423c779f911","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":40,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"b4d7f86d-82c1-4c1a-8a8c-f299e6acd32a","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":40,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"b7e89727-cafc-4b56-acec-2e7ad01538d8","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":40,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"87735e5d-a27e-4a4f-ac18-df12f5023ca8","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":40,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"10d0aa6d-9383-4506-9ab1-844ac6627e52","block_type":"box","text":"Asset-Based Securities.","page_number":40,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"cda3e1c1-6e43-4f25-a0b9-ba00a460b5d6","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":40,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"f71a2b31-618b-49c9-a6b1-61a218d449b6","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":40,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"f19b4b65-3836-4a1e-a068-bd52a98418f8","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":40,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"90c31e9c-2ea9-420f-8485-671c7b23c2fa","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":40,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"96136305-b12f-4e20-a50e-dec28ae70e20","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":40,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"e68e7b35-2745-4369-9cdb-75bf13da9294","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":40,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"4bec338c-0c5d-4e5d-be50-d719acb6f57f","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":40,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"b01a0405-7063-4882-940b-e27e0946d876","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":40,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"79346853-81fd-406e-bd4d-710b468381cd","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":40,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"83ee0d19-5442-4677-ac92-547594bee193","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":40,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"a13bfe44-c892-4012-af74-d84da66dda52","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":40,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"eb6bffcb-2016-4581-ae39-8dce7a28b5f4","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":40,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"d5974f65-16a9-4947-8c5a-9f83eef1c31c","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":40,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"59366584-525e-4039-a009-dafe01d37413","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":40,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"1a177bde-8f37-4d96-9eb6-4c7548210732","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":40,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"76ea74f3-15ac-4cc7-bf05-983687fb5f76","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":40,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"4fb46e36-d7b8-4b04-bd48-1e98f66cf5cf","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":40,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"397fe2ea-4479-4201-840a-d8380235bb39","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":40,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"7b2e8553-030f-4948-b686-c8ca51701118","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":40,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"e95ca8ae-7076-44e1-87a2-533ad4771cef","block_type":"box","text":"appreciation in the underlying asset.","page_number":40,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"77699bd5-a94b-4582-8ebb-8648c40a04d8","block_type":"box","text":"Precious Metal-Related Securities.","page_number":40,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"721b61ea-d053-4702-bd7b-346123503771","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":40,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"08d97eef-e1f7-4b81-bafa-784e9bc5818b","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":40,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"c8224654-a00b-4829-9789-08d3efc55a82","block_type":"box","text":"e.g.","page_number":40,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"a7cd3781-b768-40f7-a986-7e817adf283d","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":40,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"e5af8fa4-3922-44da-bcbe-2d82c857631b","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":40,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"68eeaf2c-a6a6-454c-93a3-6785b86e3a04","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":40,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"31844daa-0e0e-4ac9-91d9-6cbbab8bb800","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":40,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"f6e8a446-1ee5-4c69-8afc-e54dad46917a","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":40,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"155f8351-e334-4944-bb54-35b72cc38a4e","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":40,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"5160d8cc-58c7-4c82-b670-319e121745dd","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":40,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"c26b554c-acab-4426-815e-5b948a60374c","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":40,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"d2964113-f175-43a1-a02e-9b3829edabdf","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":40,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"ebd1a36f-b688-480b-981f-7ebf35add367","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":40,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"b6badadf-ce7c-4d92-8f20-46b1bd6b0d49","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":40,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"11b27eb0-be24-456b-9760-fdd1770d3836","block_type":"box","text":"South African gold production.","page_number":40,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"1b9e437c-6277-4553-b4b2-8b7ac4927db8","block_type":"box","text":"Borrowing and Leverage.","page_number":40,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"1e42a094-938c-4abe-8f4a-7a3bc866db51","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":40,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"341924fb-ec5b-4481-a7a2-18868ed30a74","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":40,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"e6ddf068-9049-4cbb-a6ff-d1516027dd06","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":40,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"6300b0a8-3978-4bcd-adbd-9dc74af7c9a6","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":40,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"46420ef4-c012-4034-b405-1df874259c10","block_type":"box","text":"other securities transactions.","page_number":40,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"3dce0c71-1bb8-4ecd-bad3-25f77f9dd001","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":40,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"3f0e1248-29da-41f4-b2f2-21b1c287c3c1","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":40,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"0d82db9b-1c6f-4adb-9e08-5458e096ddd8","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":40,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"df5b8eea-e26a-44d8-a9a1-cca505fe7d55","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":40,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"a5c15b03-7daf-43fc-ae54-f505400cbfa9","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":40,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"94617c53-3c95-4b3b-8285-5cca51a95faa","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":40,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"32dbcd2f-dd10-412e-86a9-ccb3f23d8722","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":40,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"639d4dca-82dc-4ed6-937d-36216b767d8c","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":40,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"ba32ba8a-5260-4add-b87b-4c607d922e57","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":40,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"724ebdfd-5b1b-4786-9897-d38fae87faf0","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":40,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"2141e06b-99bc-45fb-9d2f-aab4b00ca107","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":40,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"966b99d7-a0a2-41d6-ab79-67a50ad8ddf9","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":40,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"89cf88d5-0dc1-4cdb-a2c8-740f34cc4ce0","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":40,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"c6b53f7b-db14-4a39-80d4-b6bf3679290e","block_type":"box","text":"II-2","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"3e8e0421-add2-4d55-9705-dc9959269338","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9d5fa69e-5562-45d8-80df-341b26eb6556","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":41,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"a849bb59-96f1-47f1-bdd9-daaa4f23d27a","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":41,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"2480f90e-1e5e-4a09-a6c4-a0f20482ed84","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":41,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"223aa75b-a4cb-4105-a72b-4752bb730eb7","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":41,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"9b3c8a41-b4a9-46f3-b6d8-2b12f59a1dae","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":41,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"35bceebd-b93c-4081-9684-8f103ac92c1a","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":41,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"01852329-25d2-4f72-bc96-839f998e41dd","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":41,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"49c07d5b-c92f-4dc2-9b41-6ba6371f7b7c","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":41,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"0a2d84b7-8619-4eda-afa2-4554638f1803","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":41,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"c2c6b675-3a36-41e7-8b70-a24cd6601b4b","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":41,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"63cd3bd3-6e2f-46af-9879-f47e761719dd","block_type":"box","text":"Cash Management.","page_number":41,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"8edbc85d-e2cb-461b-8f08-6af1a625f88a","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":41,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"01e5897e-7a2e-4b7f-bd90-eac45f8aa5ee","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":41,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"30622f8a-8913-42ca-8f3c-d7e524149876","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":41,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"20b0cfe9-ca4d-49ad-b18e-e97ea3e9a1e3","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":41,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"31472e51-9ab0-44d1-903f-135d43abc863","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":41,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"c5b67592-53e0-4e21-a111-1819a79f1d9d","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":41,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"b2bcf46c-16d6-452e-a8fb-5ff7b8e9364e","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":41,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"3c904a74-c51b-4124-8a2c-9486df5a7e8b","block_type":"box","text":"cer tificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":41,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"593e1240-9f03-48e4-8390-6d34a720aec6","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":41,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"6c901ff0-b9db-4489-af9d-ca405cda98c3","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":41,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"9c77d728-e2da-4a0a-a1e9-906fa2f2ab7e","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":41,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"2d0356a4-f950-4e3c-86a6-a622158f2e5a","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":41,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"93766ea2-c78a-47c3-a1a2-57595f2bf200","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":41,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"62c0b5c4-f3df-46e3-9b8f-382c4074f1ed","block_type":"box","text":"Collateralized Debt Obligations.","page_number":41,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"1c2d2c5f-6b43-42f7-90b8-c1918b477c67","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":41,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"efb3beb4-d0e1-4c60-ae17-a6b782f7b79d","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":41,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"67a93bea-fc1e-4287-b5bf-92ffcc71fb7b","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":41,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"b8a4eea0-c47c-48f1-9e4f-8db3f80bfa60","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":41,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"8c7afbb4-79c6-435d-b2c7-70277d1a3c09","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":41,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"1cae2c5b-f815-435f-8360-f81aa70438e4","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":41,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"21b10304-0a32-49fe-9fd9-decf2e055403","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":41,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"7d08df39-f4d9-4cac-a411-42cbec053ed6","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":41,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"0c5ca739-c321-44e4-ab70-2984692c297f","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":41,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"f0702790-4189-4aa8-b220-b426e267e705","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":41,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"9f140517-3552-4ca1-ba8b-463fdf9ad970","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":41,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"f4f869e2-0c2a-43f3-a02e-7f05ba011cb4","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":41,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"016d2766-3e74-4946-90e6-584ab5913993","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":41,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"39e84e3d-4e64-493a-be2c-365818e88fe1","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":41,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"8f236acc-dac6-4b00-ae9c-46e91ae1b0c9","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":41,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"713e9a7c-715c-4db2-990e-136df74eda29","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":41,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"e5c058a6-ce8a-430c-9e75-90e05a838aa8","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":41,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"8dd920d3-d6cf-4c5c-a8ac-0fd7d407d0dc","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":41,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"fae475ac-9a28-4fa4-b9fc-0215b40c87b2","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":41,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"9fb443a6-15ac-45c6-8e70-957002f1ef28","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":41,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"7e124283-4f1d-42ed-a5d1-1db66a995230","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":41,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"c8e20a27-8d7d-4f28-a7cd-030259face1c","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":41,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"a751e016-35c5-4d8b-97c3-6581f4360313","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":41,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"fc5fa7cd-66e4-46ee-a768-0b2822777f64","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":41,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"e2017747-b270-4df5-a23c-73e18c2264de","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":41,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"099f38b2-acc0-4a42-8c42-b6c351292d0a","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":41,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"d8b21ad5-2916-4f7a-a44a-22b03b37318d","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":41,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"840a3727-e3ac-4cc7-87f3-19068f8aa716","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":41,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"d534b262-d650-4497-9c5d-f7ffa3955b6b","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":41,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"dc16e3a3-7470-4da2-b4a6-eb96a5749704","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":41,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"f32e1509-cdcf-4cd9-8d0c-c57f936180b6","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":41,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"73a19126-efaa-4f18-a9da-67c3a6d658e5","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":41,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"0d79b0cc-7f35-4dc5-866a-e862302b8e5d","block_type":"box","text":"II-3","page_number":41,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"1ecfda32-5586-4862-8f29-667330ef86f9","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"19abdb04-c719-4f5f-9907-0fc6ef3b59db","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":42,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"3502c58d-7f72-4d51-b31f-e36f3e20d10c","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":42,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"5907ac0e-8786-4f3b-9115-bc914fe88653","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":42,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"6644532c-7940-4761-b0d2-1d126ae5b3ca","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":42,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"5fb39ece-44e6-467e-ad94-c1f9cc7ebb87","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":42,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"b4cfc475-0484-44b5-8080-b06628226081","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":42,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"e1ff1d14-7245-4f4f-8c47-5052c175f414","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":42,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"6a6d091c-b61f-4135-8473-b9d95b732280","block_type":"box","text":"Commercial Paper.","page_number":42,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"c92ccca1-fd5a-475b-9641-52c258e50e9d","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":42,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"c02deead-2433-445d-9d38-455fbcc56773","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":42,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"9f7eb531-b091-464c-956c-da2c3ebdf056","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":42,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"94d60d21-2733-476b-bd39-baea452950fe","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":42,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"dd7501e7-5a3a-468a-8de0-466774107622","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":42,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"121662bb-ae2c-423a-9778-dfa7e069f420","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":42,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"21762a61-d4e0-4ef3-9b13-455281f51a9b","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":42,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"f4d04770-1f2b-45d4-939e-788daba798cf","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":42,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"f16c1e46-0ecf-4bb0-9731-faa64f8228f8","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":42,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"8e3797cc-f44a-478f-a2cb-4450b2811324","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":42,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"f0110148-b794-4be0-996f-ac2c17a6dc6d","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":42,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"1c4fa9e9-4caf-4a68-8ad8-64dd244f1c68","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":42,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"9de6a17a-572f-4bc8-a2ca-ace590a81712","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":42,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"3accd2c5-4538-48a9-a2c4-c781b80b94e0","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":42,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"0a7dd489-de4e-419d-8695-37823b61bec7","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":42,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"fcdf895d-9a1d-419c-a41e-619a0fd3b98a","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":42,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"fd1f4f0b-fdd4-49ca-817e-d203226a49d0","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":42,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"07c9bdc4-ec32-4eb8-b0a7-2c07d96ddab2","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":42,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"307cd26d-c3ae-425b-b712-ab80ed654b3d","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":42,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"64438805-06aa-4d52-b406-afbd25c55825","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":42,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"1733b8b4-6b6d-4dcd-ba39-a832a04f2205","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":42,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"f6990504-3f6c-4415-ad87-f1547a03ebf3","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":42,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"27cf3ba3-48f3-4ef5-bea4-c9f12f45731b","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":42,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"f4071cd5-99fa-472d-ac98-89b4a8efe2a1","block_type":"box","text":"variable.","page_number":42,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"baddbee2-1d20-4145-9eb4-ab5b2d48fd74","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":42,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"1ec7f29c-82d6-44dd-b579-dcdc9817f2bc","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":42,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"5110b97c-1442-4ae1-a711-d15eba6c2c1e","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":42,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"0d040bf0-0b6e-40d8-bf56-2ab2a6c59458","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":42,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"3c3600dc-4366-4acf-8540-dd0f20309cb9","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":42,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"7170883c-86b8-4b83-a288-578059c2b62f","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":42,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"90818a7d-4fed-46c9-aa00-1d381fc1c18c","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":42,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"7332a3b2-27d3-4587-a496-cfc834b54015","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":42,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"f53887d3-9a52-4367-bc0b-e4057499534f","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":42,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"d4f5bbe7-80d9-48ab-b3e4-6781321d1730","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":42,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"33bd2e3e-bdde-4038-bc9f-1d1060a93650","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":42,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"46060010-7826-4ba3-af7d-21ba23303151","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":42,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"38b04404-10d2-47e0-a446-a913756790ff","block_type":"box","text":"correlation with stocks and bonds.","page_number":42,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"fc06b8c3-2437-4094-8858-d9614200d234","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":42,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"89eb5379-4ed4-49e8-8203-db47ccae9e7b","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":42,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"c67f778f-dc86-4b9b-89d9-8e537847023b","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":42,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"2d2330aa-0d74-456d-8ee3-f05a26cf61b8","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":42,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"78420d9e-3e49-462a-aa7f-3de52a058f0b","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":42,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"88bcaaf7-5849-4440-91e7-5ad6768f8226","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":42,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"9675c4a1-8f8c-4424-a52f-736ee74d0649","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":42,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"067b21dd-0a7c-453b-b298-535b89a2534c","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":42,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"64427130-a7e5-4d85-98d6-56aa8898c034","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":42,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"34622df7-ccbc-4192-8610-be77b0f7d63d","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":42,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"33daedbc-cbdb-4cc9-b17b-c795b578f2f4","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":42,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"3766ac62-9389-4528-8a18-8d02d0850a50","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":42,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"73daf968-9090-41cc-a4dc-def614db6a38","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":42,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"890f1e86-d377-4157-8972-e6a601ca7f4c","block_type":"box","text":"II-4","page_number":42,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"7d7ff9d0-4ad9-49db-acf5-2c2f70953a26","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":42,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"47c27f6a-9543-4e26-b1da-ec29e2b63695","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":43,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"c4728dbc-2170-4f50-80b4-dbc453312d73","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":43,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"515f22f5-b8b7-4c10-88e8-107e95a8ea41","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":43,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"83e90ba2-e74e-4301-ad1a-1329487a822a","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":43,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"8cad1e16-32d1-423b-8920-6f2380efc623","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":43,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"9785d3ee-0826-4423-8ad4-016d563b7001","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":43,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"1a577a52-f434-4c9f-8cf0-9466e538496b","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":43,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"382b8a9c-c07c-4b41-ac27-618bf4160cb0","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":43,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"b6c67be0-e6dd-43ea-82d0-67957c70a1f0","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":43,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"9f328821-0c46-435f-8038-90ac94336a45","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":43,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"b41ea16c-ff21-4c36-bd87-cbdbfc0fb094","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":43,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"2596196b-1c02-4d9c-9f85-71a836201762","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":43,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"d823ddc7-03b7-474a-8400-ceeecc5704ba","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":43,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"3f0d86fc-c5b6-4a94-8fbb-b596b3e3912c","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":43,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"6ff27a29-2bca-4fe1-a38b-d42bc81d2a12","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":43,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"3779af8b-dbe1-4e9e-ae8c-7712ac4135ab","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":43,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"5c2bca99-f34a-4ade-aca7-77814b7fab5f","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":43,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"fc86e565-62d8-4e73-a5ed-b12469060b35","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":43,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"655fddb1-9b51-490c-8cd3-3daf9d722697","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":43,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"bf0ca3ef-d8a1-48a2-8363-1c79890fb20e","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":43,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"24a8d11f-ef26-4315-b9b2-3a85f2452af5","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":43,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"4cdc0895-4291-4619-9379-985a4d63e557","block_type":"box","text":"the Manager believes are relevant.","page_number":43,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"08302ed4-6306-496f-91cb-a905119a8b8d","block_type":"box","text":"Limitations on Leverage.","page_number":43,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"bc197a71-cae2-47d4-90b8-f7bed35f00a0","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":43,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"fd17415c-276b-49c2-b729-e9c8446b811b","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":43,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"bf7f81df-0ce4-4d5d-b8a2-c9fc5dc6654a","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":43,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"6914c779-16d0-498c-9e0f-02993361def9","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":43,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"49edf699-b09e-4aca-a212-6a0bb242554f","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":43,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"7ef6256d-20e8-42a7-aae1-fab047b1bd37","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":43,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"4d00ae1f-0e00-4e9e-b0e4-62ff9df4bd24","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":43,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"fb679821-8863-48f3-a6ab-bfc7c04088bb","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":43,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"e5c60128-e1f6-402b-b61a-d35a02ae09c3","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":43,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"a15fefa3-afc9-4e0f-8a85-8796c18cd817","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":43,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"c2828c7c-85ad-47bd-8599-36b1da365780","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":43,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"3fa31e9c-a394-4304-a22d-fbaf5cefe68a","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":43,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"3ffaed9b-02a0-43b4-9d62-b808aa0c744f","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":43,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"5f9dc8e2-ddb3-47a2-be6a-69fefd1214ed","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":43,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"c224f089-7e3e-41c1-9119-997a6c113d1f","block_type":"box","text":"Counterpar ty Risk.","page_number":43,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"7407e82b-fe21-4df3-8422-aa5cefb8c377","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":43,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"7e2bc559-5bbe-4f2a-ab7d-493e4115222a","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":43,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"edc5d0d9-0bf7-4149-9d5b-8ae5b91a3ce2","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":43,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"80996d2b-db48-4d05-bc1f-14cd71dbaf42","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":43,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"8e51e0d1-230c-44da-b629-f02fbd47813c","block_type":"box","text":"e.g.","page_number":43,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"fc8eded5-dc8c-4ec2-86d2-9b1a264afe3e","block_type":"box","text":",","page_number":43,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"3d9cbf6c-5da0-4e12-a9de-231c85964272","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":43,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"9309052d-eaa3-45dc-ac9d-caad618f04cf","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":43,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"1e1bd3bd-7b62-495d-8cac-8c224dbdfd31","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":43,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"1fdbdfab-dfa3-4579-8590-fd4d636e0495","block_type":"box","text":"obligations under the structured note.","page_number":43,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"02f0dfa7-3974-4b36-a6a0-25f96af163b1","block_type":"box","text":"Convertible Securities.","page_number":43,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"508c793a-52ac-4719-9298-ae587db84e3f","block_type":"box","text":"A conver tible security is a bond, debenture, note, preferred stock or other security that","page_number":43,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"94ce214b-28a5-4fe2-b178-2a69f3869a9b","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":43,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"385af6f4-d4a7-4c14-8e83-d267abe877af","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":43,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"1660e16d-3669-499b-8869-113abdd22327","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":43,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"6ae65af0-8eee-4111-b39d-af4ce60fe203","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":43,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"cda42f3b-6048-4171-8030-6c101dc62b14","block_type":"box","text":"characteristics similar to nonconver tible income securities in that they ordinarily provide a stable stream of income","page_number":43,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"524df51a-09e4-4798-9b36-e185ecf8e877","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":43,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"584d8c22-c14e-464c-a7e5-4aff00a7a0e9","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":43,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"412bf292-b7c3-49b0-a1e7-08a3c97191bf","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":43,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"ce7d6542-76ca-460d-b496-e3a352cb336f","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":43,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"4cba1229-ed58-4cdc-9481-97424538573b","block_type":"box","text":"Conver tible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":43,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"e8cfbb80-879a-415d-ab7e-c46ae92e81c8","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":43,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"c9d6208f-4e99-4dec-a4f6-32c16122593a","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":43,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"f4ccf7ec-a308-4d26-a3ff-ffcabe3cb821","block_type":"box","text":"II-5","page_number":43,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"69842f64-1123-47e1-b3a8-7d7d047d3b2b","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7aa07af8-4c14-4a70-a27e-84cce541db0b","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":44,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"a6702fdb-1435-4502-b9e8-2f8b69d532fe","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":44,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"c805fae6-ab73-49cf-975b-ed893d702353","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":44,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"ec3ce75a-7162-4c58-a085-0fa259335ae7","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":44,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"72d71c90-2ff3-4f1e-b714-f1e97ac24970","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":44,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"c17bdffd-ba9e-4738-9a07-00583e8c0b18","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":44,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"2f306b11-1a2c-4953-b2c2-1ac6e60f00f4","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":44,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"2ebc075c-4057-4fa7-92f1-f1ee0666408c","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":44,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"fba03997-fb9a-48eb-ae77-aacba42f949d","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":44,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"baa833f3-0d0a-4032-b519-4174d7848671","block_type":"box","text":"things.","page_number":44,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"980b5612-18c7-4578-8afb-424393777b41","block_type":"box","text":"Conver tible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":44,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"7dfab3a9-90a9-46c4-835d-508478955f74","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":44,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"7651732b-9a49-40d2-9794-d57b2f9c4c5c","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":44,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"3f507c9c-0ee2-4835-aec5-fb4095223109","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":44,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"b5719950-52c9-4b02-b396-2b02db5e3cb0","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":44,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"7f327cd7-9f2e-4664-b673-52d90175a6bc","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":44,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"c17b9903-0061-4eba-8554-badf9c6d6c4c","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":44,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"c41bf5cf-f0a9-4a6c-ba15-e63e7a8c5012","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":44,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"3a71d888-cc72-4f42-ae81-a2dbff3b5813","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":44,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"a12b17ca-d94c-4c3a-ab3e-2c42b7119721","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":44,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"bcad2e21-ca36-498b-875f-9a819386e727","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":44,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"1b8a3768-015b-4fab-8fed-87d20d49880a","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (","page_number":44,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"2ae8a721-9108-4235-9de5-17fd8d0943b4","block_type":"box","text":"i.e.","page_number":44,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"29db9be8-e4f1-4672-bd58-fe51c1cd81be","block_type":"box","text":", strictly on the basis of its yield) is","page_number":44,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"d54c13d4-86fa-4a2e-bbab-ad593e8cde2d","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":44,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"3fbbe184-5989-4917-aee2-915b077c4f7a","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":44,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"05f61e29-a0e5-41ff-a78b-700bb21c5688","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":44,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"9965cdde-e657-4c1b-ac41-8be91d372221","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":44,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"fc0d78c8-af10-4608-a231-2173e74c727c","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":44,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"ffb9625f-1d32-4eb1-94ab-9d1908567360","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":44,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"4e80093d-a34e-43c0-bd5d-837c3a4b91cb","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":44,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"43905b68-927d-4540-9b4d-62a3ee121809","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":44,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"a974b1bf-f401-444b-8bd7-c19d7afc3e20","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":44,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"8f648819-1584-46eb-876a-b99f416c7e27","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":44,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"d1ef9841-628a-4517-8a66-a8e927d02aea","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":44,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"8c12dad5-7cec-497e-bf52-dfcc07052e90","block_type":"box","text":"than the securities’ investment value.","page_number":44,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"c527216f-bde9-4b63-b09d-6a9d8f760737","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":44,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"4fa25fe8-17b2-43aa-8516-f89451c88dea","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":44,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"7c5c6e05-2791-4b4d-9c9a-d5355d2a3624","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":44,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"e2ef1a65-d9d0-4746-910e-e7009dfc4571","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":44,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"066c6b7a-6255-4b44-9b4a-5103727e31cd","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":44,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"2af056d7-957f-4d15-b69f-97c5a497a1cf","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":44,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"79d85a23-b058-4824-b323-8b039c7478ca","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":44,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"6232531d-b8c4-412e-97ac-80134d13c514","block_type":"box","text":"security under cer tain circumstances.","page_number":44,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"0762e5fc-f9e0-4477-8893-20ff04770cb8","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":44,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"fa588ec3-4985-4953-a94b-449ead004c2a","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":44,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"a422e84f-ec93-4e43-aeb7-d01bc26cf3c1","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":44,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"d2ede431-afe6-4b81-9938-63fcec984da5","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":44,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"1c0ac50a-887e-4376-80c1-e1219344b700","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":44,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"63148ee5-3a66-4ec6-bc8f-93632d6fec79","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":44,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"0b629338-b398-4fa6-8f55-caab0f7fd127","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":44,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"e3f75878-5378-4c33-a26e-eeec94c09558","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security,","page_number":44,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"637d672f-eec1-4e77-a125-ea5eff802c3d","block_type":"box","text":"i.e.","page_number":44,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"283f508b-cf07-45e2-9a68-5bac4ab07fd8","block_type":"box","text":", fixed-income (“fixed","page_number":44,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"10c8a8d6-f9f5-4b6e-b063-68d95f337837","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":44,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"905f27c4-8182-4d8d-bfd2-e33a7405dffc","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":44,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"b8ffb940-004c-42dc-89dd-5a26baeac8cd","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":44,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"ab3ee106-53cb-43b3-a79e-22f2507d656f","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":44,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"9fee32c1-9b84-4dec-95bd-6b6e72b1713e","block_type":"box","text":"II-6","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"ea838f28-c7a1-464b-8614-6942bfab516e","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9b144b9f-6f0b-4ff4-9fa2-2e2cd325fe37","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":45,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"69b9a536-d5ae-4d9f-87b1-7564036e50e0","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":45,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"e4abbe4b-a201-435e-b5f9-b74d3d0dc472","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":45,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"02daeaa7-6006-4988-ad4e-79c122238ec5","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":45,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"da2b3419-970b-4b24-badf-72d316b66bdd","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":45,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"30e930d5-9969-4822-9650-0c309a4db1d1","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":45,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"4ed0d5b0-8d24-4888-a11b-026f3e350a40","block_type":"box","text":"component.","page_number":45,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"7ca62d68-8b18-47c6-b88f-d08e22430486","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":45,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"e80e2b10-a417-44a0-91ce-4d43d23f67d8","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":45,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"0d9d3d64-701f-49ca-adb8-8a3a7c346575","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":45,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"b7160a55-4390-4940-ae9b-560689976cc6","block_type":"box","text":"to create a synthetic conver tible security otherwise unavailable in the market. The Manager may also combine a","page_number":45,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"e7d98bc3-21d9-4c88-b49f-c07f33256f87","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":45,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"de379193-7ee1-4311-b06c-0d3ed86beb52","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":45,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"d23e0f01-9d81-4265-9874-6438cc7f14c0","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":45,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"507e67dc-585f-48c4-b9b6-d9adface3cca","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":45,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"4639c3d9-87af-476a-811e-e9ee44841496","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":45,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"69da5a94-c30e-4eb9-bcba-a9c1e07ad588","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":45,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"39f7bb67-9250-4546-9119-afc39f4b2b42","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":45,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"b3c76f55-8cb4-4e94-9c15-9c1b6c598682","block_type":"box","text":"Manufactured Conver tible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":45,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"304b683e-ab84-4e30-b419-a523d363bcc9","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":45,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"15bb1706-2f8e-4867-9af3-bfa3274f4dd0","block_type":"box","text":"favorable market conditions.","page_number":45,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"9cd8eb8b-6b64-4d06-af6f-a6a1d6b1d02f","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":45,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"7b06f086-f0e5-4a18-8bf6-2c7ff4650555","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":45,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"d728fb82-f93b-47ac-8b6f-1e7c7c67418c","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":45,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"948ebe82-f89a-4630-b46f-9cfd8e7c5f1d","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":45,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"37d7b4ad-8b05-47d3-b31b-5654eb5364ca","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":45,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"8e59a222-a451-4439-993a-f17f8ed3288e","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":45,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"1ebeb14e-c7e5-4ec1-a252-1124ec1401f9","block_type":"box","text":"Corporate Loans.","page_number":45,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"0e5b692e-2584-42b5-9d09-351a40d45b26","block_type":"box","text":"Cer tain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":45,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"5a76d85b-4500-42de-aeb7-b91f55a3c046","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":45,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"967506a6-ae20-4d28-b1ac-a7b4fe7e0503","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":45,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"111e12ea-67df-413d-bc7f-7097d3a18409","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":45,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"13093dd8-69eb-4b7c-ba1c-dd148bc43b3d","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":45,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"2b3e3065-58bb-4e48-ba78-0393fa180805","block_type":"box","text":"from third par ties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":45,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"48cc0049-bb56-468c-a8d7-b0feaf803dd6","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":45,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"8df03b21-7e27-4c0e-9105-db4352f80542","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":45,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"38678b56-0c0c-4d0d-aa16-979a8dab1a85","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":45,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"6cda4cb6-f087-4156-83d8-9997b0d45548","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":45,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"01119809-b7e0-4df5-b8b8-6eb369742afc","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":45,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"9d1e204f-65a3-4f6f-9b98-dbcfe7344b70","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":45,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"3a819c37-b54e-47d5-894f-fe610f2fcff7","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":45,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"20369d0b-91a5-495b-a205-e210fa2f5c71","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":45,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"9d5b8c91-4f8a-468e-9530-1a96215c786f","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":45,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"ee83340a-0545-424f-b788-2ced93a8caad","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":45,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"1eb28b1a-d3a8-430c-a6cb-016407316d32","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":45,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"63e533a4-b629-4c7e-b25e-c5c050b3b594","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":45,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"9cd282b6-7e31-422c-89e9-a31134640fe2","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":45,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"4bdfa578-f8e5-4588-b65e-2b8d61419a6b","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":45,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"2e967401-c475-4b39-8475-0de6754dc6b5","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":45,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"1255b20f-e6d7-4a95-83f7-be7bb305f3ed","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":45,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"c6923dcc-e1e9-4371-95f6-545170b59a1b","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":45,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"12246d01-745a-4d7c-9d68-6b9deb6cce19","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":45,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"b4868652-ba0e-4f75-af92-123d79aa0c0d","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":45,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"1f9e7efd-3277-4b05-9236-df4a19f42530","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":45,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"dc27451c-d912-4f08-859f-1cf771228808","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":45,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"f07d8006-ff19-4878-b947-601db0916e5f","block_type":"box","text":"of the borrower.","page_number":45,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"34d0e662-4ea6-46bd-a392-4b96a3fa8c71","block_type":"box","text":"II-7","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"73487181-29e1-49f6-9bf1-7541791ded71","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e216831f-fdea-48fb-953c-2e23737472ac","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":46,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"1e60fc41-5d32-49b4-8f1a-b7a7ffd94e9e","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":46,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"722b53c5-e604-44b7-987c-9a122c49097c","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":46,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"40376052-ad95-46e0-9a3d-44c17d99b66f","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":46,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"68995db6-b34b-4bb4-ad12-5b8bb1f8df19","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":46,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"c8ee4416-1389-42c8-91a1-7b24896f7281","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":46,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"e45a6f76-be4e-4644-a511-2565a899a43e","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":46,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"684b7e1f-9bec-4a52-b85e-0b008bb7b651","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":46,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"cb76293c-7ca7-4b00-b943-c9c3fa54865e","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":46,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"09ea1e70-11c3-4226-8042-54a274c9b4c9","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":46,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"a5e29508-e204-40de-855e-b79b1ba82464","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":46,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"5287c1e3-fc3f-4515-b150-5c1d7db3d989","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":46,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"4bc529a8-45a8-4005-8a2b-90d6806321a4","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":46,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"45faca4b-ce74-40d9-93ab-3c9cb49c0aa4","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":46,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"83fa388d-80d6-4532-9c94-ce342bef2e5f","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":46,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"f099993d-2d20-43a9-b681-a3c734b6229a","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":46,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"06c8ea61-f4c4-4b58-8320-611ff8c20533","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":46,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"69f64924-0868-481f-933c-2c6d80b9afaa","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":46,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"037dd9de-3d3a-4a25-9fa3-9beba7185a17","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":46,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"424f7e4f-25a3-4289-a335-ba406aedebfd","block_type":"box","text":"state law.","page_number":46,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"73069c01-25e5-4e48-9148-5a5f81194ee8","block_type":"box","text":"Direct Lending.","page_number":46,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"e5eb1f31-8442-4c86-a568-26c933672839","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":46,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"d59bb2bb-11a8-4648-aeac-dd1505ccb2d4","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":46,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"4730aa54-62ce-462a-9286-9216dd42d6f1","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":46,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"154af657-0306-442d-8d45-a07027e20890","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":46,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"95f5c7cf-f727-44e9-b2ce-7917be19e725","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":46,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"bce84194-f1ae-4177-8e6c-403401e3c452","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":46,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"b38f245b-9973-410a-bf23-b3a8be497158","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":46,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"35bb1910-6783-4082-bec7-f0ca28f6008d","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":46,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"231a9b65-6b89-496b-987e-9f7463b1098e","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":46,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"1fc71683-18a0-4764-8187-cb0a57f4e296","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":46,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"50a3de41-775e-49aa-8d3b-ab41306a2243","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":46,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"1e020864-01cb-4a8c-8f1a-bc8476cdb7dc","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":46,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"5da4f4b1-f432-4952-8a9c-9c7465ef5864","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":46,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"d623834e-6df8-4cd4-b4cf-355cc9d6580d","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":46,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"5523d34d-246b-4c7e-bead-a3bc0974c851","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":46,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"c7775cf4-1db3-46bb-9c5e-dffe64d0d7a4","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":46,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"7561e565-4ce1-4f4a-b5c3-bd049c6777da","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":46,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"d8b6f166-6099-45e6-bf13-20f563c64524","block_type":"box","text":"As par t of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":46,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"31d75a5e-007d-4732-b949-92fe16914979","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":46,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"b84ac501-f876-4817-a6fe-ba6dab1ebaa8","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":46,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"8a7e1a94-8e87-4ec8-802e-feb806a08c5b","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":46,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"d22798f2-c5b5-4b10-ad42-73cee7c01eb4","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":46,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"694efc12-2f84-47a0-ad6e-aeaa9846afef","block_type":"box","text":"Credit Linked Securities.","page_number":46,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"24d50a3f-aff4-4899-8bb8-34cea112a9dc","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":46,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"c20e3779-f0a9-4777-975f-5202ae0615ea","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":46,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"cb80492d-6927-4612-91b7-a143acd9f34b","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":46,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"96a65519-5d17-4ea4-9a0b-d31cf1c643f0","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":46,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"12f25ab6-4510-4782-be2b-dda004270f90","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":46,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"df9dc549-fb26-46a4-8504-d616529a7bee","block_type":"box","text":"traditional income producing securities are not available.","page_number":46,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"f99d506b-ad73-43bb-ad93-a6a626f19c9c","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":46,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"349efa0a-4a0b-4e52-b57f-90d6e6f4d2f9","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":46,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"9c0a12fc-ccaa-474f-86e0-2fe0a9f29973","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":46,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"ae7030dc-0478-4b42-b6e7-14fe24e7b7cc","block_type":"box","text":"obligations to, the counterpar ties to the derivative instruments and other securities in which the issuer invests. For","page_number":46,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"2bc187d2-8c7a-421f-92c2-58039ebf5dd1","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":46,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"1417678e-b8e5-4ddb-93c7-884d3a915347","block_type":"box","text":"II-8","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"69f46a63-3963-4f53-8c63-f3945c8af261","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4a5dd18d-c225-4850-a3f7-2648ad10ff1b","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":47,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"048d786e-b713-445b-a6ed-2ec6232b7b2f","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":47,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"ec7a8e4f-a6e7-4b3c-95d3-9e589cd5ee5c","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":47,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"83fb51fa-fb1c-4b34-a7ec-ecc99c9c99ca","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":47,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"e193ba63-4643-4380-b6e3-91c40d6bb215","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":47,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"603771eb-c520-43dd-bf34-3cb9299ffcc2","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":47,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"5d799387-1220-4cec-a8ee-c864cde5c6d7","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":47,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"a18c9756-93dc-47c4-9472-9ec1716105cf","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":47,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"87f61102-a5b1-4014-91c9-9f9d97bfea08","block_type":"box","text":"investments.","page_number":47,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"1155372b-7e3b-462b-8122-a9099665936c","block_type":"box","text":"Debt Securities.","page_number":47,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"7964c280-8223-436a-8f79-1e93c57583e2","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":47,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"80e65b25-1f06-48fa-a800-24224433f53b","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":47,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"d740fb25-d051-40dd-aeda-99794cd30072","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":47,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"71040967-6898-46ce-9fbf-ca7f82d45aab","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":47,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"af94c35d-e93c-461c-af6c-180559437040","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":47,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"56b527ce-6644-4b0d-a57a-e3d2b538a93c","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":47,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"8397d859-9b13-4ce9-b9b8-0b8da8cde396","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":47,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"ed61c639-7912-49f7-ac77-6e018a07e681","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":47,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"a46e92dd-ce73-4b7a-b3cd-c343793171e8","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":47,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"b09aa77b-7884-4016-98b7-a946e9f49e99","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":47,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"014f7902-e538-4928-97b9-d21b04906de3","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":47,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"42dd6d3a-b00a-4dff-b506-70339ee78aba","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":47,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"c6e2c0b5-6e19-4663-8b0e-188c57ff43b5","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":47,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"96a7bf70-4884-49cd-9ab4-963072a862f8","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":47,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"d3655617-b78e-49e3-80d7-78793d5f2f9f","block_type":"box","text":"lose value. This is known as extension risk.","page_number":47,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"8bf28a69-fa75-42a3-8f18-99eacd38b44a","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":47,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"d22ebd85-5846-4da1-974d-578b352c62c4","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":47,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"f19f0a58-4620-4668-9f86-dcbc28536d04","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":47,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"e5ae0c15-a290-40b3-8a88-749a3abc4507","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":47,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"32100e80-1205-4c0d-b3f6-caa7a067ad6e","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":47,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"4c671daf-21c9-439a-92a7-03c056e7be9c","block_type":"box","text":"Floating and Variable Rate Securities","page_number":47,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"bb810ec5-0953-4080-bcd8-aa2287c301fc","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":47,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"2f5e47de-6224-42f0-b8ae-f04acd5234b4","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":47,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"2cfe8b07-156c-4b28-a742-536cec6dad28","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":47,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"898f8a73-538b-4afe-9ee6-bceffbd80f65","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":47,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"92866593-57da-44f8-8ab5-155e09c884c7","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":47,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"6a5f6e7d-cede-4ab0-94bd-732b08b81c5a","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":47,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"77a56e6e-1368-4033-b857-13dc10b45c89","block_type":"box","text":"market interest rates.","page_number":47,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"cc060a47-c92b-4dab-a7d6-82e8c9692ee5","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":47,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"6b38b164-e353-4250-ba6a-0c44aef751cd","block_type":"box","text":"Cer tain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":47,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"153a303b-de47-4391-a0b1-2d96ae938a6c","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":47,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"1c03173a-c749-41d5-bd08-877e4ef42345","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":47,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"4aeed22c-f230-4ac6-b360-68ad3e511aae","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":47,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"130e5f4b-b5c7-4707-bae2-aba31de88b14","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":47,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"85812010-1b1d-4197-8058-d39a9855d1da","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":47,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"b3f600c6-3c35-47e9-a77f-3ae812063cdc","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":47,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"ae105aed-e0f1-486f-84cf-12fd0cd9e2b0","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":47,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"03330d99-1cdd-486d-aac4-36af3da56d7c","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":47,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"4deeb533-dd2e-4844-ac79-90485fe61394","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":47,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"b7ffec6f-95fc-4719-b835-af84b036ef93","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":47,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"c9d085e6-a61a-4d61-ae07-57dfebbeba09","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":47,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"57e10e93-5b69-4ba4-aea2-ef83af7ae994","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":47,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"8ea15810-79a5-4044-99e0-35ad6aed4559","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":47,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"ae3ef5df-00a5-4a36-aa3f-fb9ebb17aaf4","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":47,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"d8338513-190d-4d66-acd2-a49b9b932b31","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":47,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"0e071070-637a-4e74-9183-92446f02e900","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":47,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"be69457d-f6a1-4b83-a099-e8277afa0ff5","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":47,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"1ae677b0-610f-4f95-8b42-df414d1222b0","block_type":"box","text":"II-9","page_number":47,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"2fa0f3c4-b662-40d0-8a73-b80262675e48","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6b4ed876-c898-42a6-96a2-171c0436a880","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":48,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"d8a7f4f7-2b17-4acf-9616-9679cb758834","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":48,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"02c1b38b-6e86-46e0-a14c-e70190c6b093","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":48,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"587b4ce3-14b0-44aa-a097-4993b550c704","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":48,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"7fadb1eb-9628-42e2-a35d-4f44d7eb61d6","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":48,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"8e15abb8-cfd0-414e-8881-2b8e7621801f","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":48,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"162242a1-9583-4f02-8e65-b920bbc7b0ed","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":48,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"6ec94930-f3b6-48b6-912e-2ce05560fe0f","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":48,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"ab37854a-3864-4ba4-8ace-ae8827a3871c","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":48,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"27763a2b-c9c2-44c2-bf8d-875ccf826f99","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":48,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"edd7ba18-212f-4304-aaee-b0c9dd821086","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":48,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"20b58d9c-771f-440c-bac0-e5fe68f8e7df","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":48,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"271549a2-a89a-4c14-bff4-b57ad457dfcb","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":48,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"f473a6e7-016a-4cc2-8f3b-63f108ab748f","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":48,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"e9c69507-e67d-4c6c-b763-a3278d484e84","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":48,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"b309522c-672b-40b0-b6bc-ae27787dc852","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":48,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"0f1ab45c-7ca7-43b1-aaed-b556f4675877","block_type":"box","text":"food, transpor tation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":48,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"dd91db9a-6ff0-4909-aff8-4f8c5ba3c635","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":48,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"eb3978ee-bc57-4971-8809-a8871b08e80d","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":48,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"277622cd-5deb-41b5-8860-f090d74a56a5","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":48,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"edbd88cc-59cf-434f-af8b-6f03c047e95a","block_type":"box","text":"United States.","page_number":48,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"7564d2de-d738-4f5c-8365-12b0d8f14a27","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":48,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"9d4bcebb-25ae-4bbd-b771-ea5d25bce585","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":48,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"fe9c8b04-370c-4f14-8eb0-5d06c5b96c6b","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":48,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"fcb62f21-ab26-4b78-9742-e7d894dc6cf3","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":48,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"93ed77b8-4fea-42b5-8cc4-ccfcb9c8da89","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":48,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"a416da07-3f7e-448e-bbd7-ededff529ec8","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":48,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"4c2d71a9-aaf8-4d79-8cbc-9e87f9ef4914","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":48,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"da36622b-0ca1-495f-bc97-8c20aa292676","block_type":"box","text":"i.e.","page_number":48,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"a1d893c7-aa32-4b48-bdfd-4be72cdd8c22","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":48,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"2b31f729-ec03-44d4-9a32-4453ad002a63","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":48,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"6b56512f-fb28-4f3a-b367-fb2f68b9eac0","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":48,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"98348dca-4ec5-44fb-bbbd-730806cae9d1","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":48,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"ac1737a3-1d6e-497e-a3b4-4481a49f189b","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":48,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"266df57b-275b-4a95-9dc9-d1d6f6eae638","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":48,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"65eb237e-6f32-4a68-8b77-de95b37aecb0","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":48,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"798cf503-b25a-4ef8-ab34-f7f6f3d87c2a","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":48,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"b4daee27-06c1-4e38-bb60-f959a4f0a8fe","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":48,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"f7832731-ea0c-4e38-acc6-86ac03d160b6","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":48,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"3f858ae1-65d8-443a-842b-b30d64afee68","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":48,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"9bc0ec9f-5573-4c59-8d5f-342f4a5c817a","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":48,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"3e3a3998-8140-4618-b447-daa11bcf291d","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":48,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"cba4dbc3-7f16-4c8c-877f-6b2ff81f0548","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":48,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"006da6a7-bcf7-4a12-87fd-1556e0a06df5","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":48,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"2a046d3f-928a-45cf-bf51-8ace3b748c02","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":48,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"23caf1c8-73e9-43dc-aa1b-d66a83fb77b5","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":48,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"0cd2e885-bcf4-45eb-8f8a-041791084389","block_type":"box","text":"risk than higher rated securities.","page_number":48,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"77b075a3-db4a-4a32-a5d6-917e34d73ae8","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":48,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"860b9e36-c2ff-444b-96ab-68635ce6684a","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"a5bb7619-0c21-4404-988c-2c09bd41b551","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":48,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"0b4c24d3-95a2-4cca-afc6-c9ca16010c68","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":48,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"8a688bdc-3bf9-4dae-9f93-ffed0886290b","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":48,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"b3c2345a-2877-4f0b-b842-686de0cef1c7","block_type":"box","text":"unavailability of additional financing.","page_number":48,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"599200d0-b3a6-414b-ab43-95430f2bad5a","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"d7c99038-476d-459b-994b-7bd719cb44e6","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":48,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"66ff14ba-672e-4c71-a6f3-d2b9fb4a6017","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":48,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"74a32dfd-7f6a-499f-8b5b-18399fc627c7","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":48,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"c4f3b8d9-0f79-4ac6-a0d4-8c6df13b8f82","block_type":"box","text":"II-10","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2e6815c8-cf73-4e0b-abc1-f5d3f4a3bb50","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0f8a5910-d059-4525-a2fd-6072ffb5a33a","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":49,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"346a586c-558d-476b-9275-35afa5b54f15","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":49,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"64e36014-36b0-4fcf-9d03-d5b0d19b1a59","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"cb5ac435-711e-4ff8-a4f1-71a3e7680756","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":49,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"c1e6b3af-234f-43cd-a5bb-86c437b9d6fd","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":49,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"c4a041b6-0b54-4003-b5b6-7d82c443493c","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":49,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"b036c267-1fa6-4ca3-bea0-563cc819e795","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":49,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"17320278-4c33-4fd4-9552-48ef8f8b2ab2","block_type":"box","text":"investors in higher rated securities.","page_number":49,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"fc311b23-a298-4260-a9db-a821fd61c701","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"182a212a-9990-400c-907b-9a052cb21023","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":49,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"9fbb57a6-49f3-4f0e-a365-9be1c1b75ada","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":49,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"3024ccd5-6fd1-4142-8844-0f8df0f05235","block_type":"box","text":"lower yields and may lose income.","page_number":49,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"02864dcb-bc58-44ed-84c2-ca5f8e45736e","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"d6a6ac6b-b41c-4c31-acb7-6ec7327a4741","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":49,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"ca303d44-a0d8-486d-92de-e0b11ecbda14","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":49,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"f98e74df-1051-40ca-bc18-e2d5e91c758f","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"80d0aae1-38ee-474d-bcfa-d6dbf010593d","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":49,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"443aca21-b742-4d3b-b995-39fec0af41a2","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":49,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"855ec841-fbef-441d-bc3f-e024f328f519","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":49,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"322828e8-2f63-4af9-9818-57c4b6219d4c","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":49,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"07d82e4b-354d-490e-b243-0dd22a1acba6","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":49,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"791ab0ee-1eff-4d15-ad21-955fe43d76b2","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":49,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"da7b58dc-10a2-4615-9dae-fe8bbcc8ed70","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":49,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"a184da9d-ff23-4630-8365-d1da413f3105","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"c0c40256-5be1-4e00-bf5c-92e5085942aa","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":49,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"0dbd2b47-a6bb-4d4e-afbd-d4b3c47e6f28","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":49,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"a6985423-5b4d-4f19-9898-422b927c5b35","block_type":"box","text":"par ticipants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":49,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"192032f8-2983-484f-bf7d-60750dfe1148","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":49,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"f030a55b-303d-451e-af4d-4535b695e90e","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":49,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"00048a10-8a03-48cd-a6ec-c4e1cf5f0e50","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":49,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"8144e1f4-cb3c-437e-9e23-69984ac1280a","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":49,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"96d5eb16-c920-44ab-86bd-33ec5187ea80","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":49,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"64ae29cf-d152-4044-a78f-324006433277","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":49,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"25c97f6a-c7d2-413b-8ae6-8552e1f34e69","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":49,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"d1127301-d8a1-4843-b78f-9e942201a2e1","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":49,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"dc3f7abb-de7e-453b-8dc3-c57845215e7f","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":49,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"d276d45a-0859-421d-a297-0433620b3509","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":49,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"02252ca8-4412-4d1c-ad61-84e73702fddb","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":49,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"4db3ea1e-3b9c-4b67-a979-b583d15e17a6","block_type":"box","text":"role in determining such valuations.","page_number":49,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"5acfd1dd-cd61-445a-87d7-a647751691c8","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"674856fe-edb7-4052-9720-24a2367bb5db","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":49,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"ae9abddb-dc97-4548-9e41-319e7e8c228c","block_type":"box","text":"a defaulting issuer.","page_number":49,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"9e2fcd69-90c7-4b9d-9ca3-66ebbd4f462a","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"e2e413de-ba0f-49c9-ab23-24082dd5cb73","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":49,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"ed34f3ce-b9ba-415d-91d0-6686f65c775a","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":49,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"502792a6-2831-47aa-be77-8760a4d41e1a","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":49,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"b7a40aea-08f0-4f94-bd3a-6eddf920be9e","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":49,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"6e6d56a8-99dc-4c5f-8ef1-eb30af187e8f","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":49,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"89138307-fa59-4eed-a3cf-e1f237d494de","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":49,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"f31c3ba7-6d48-4876-98f7-3d86149afdb9","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":49,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"229e73e2-efb3-47af-a9a1-9b702804f9a2","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":49,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"e3ceb13c-3196-44b3-bd32-95dca53422e6","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"38525db6-a18e-4ac9-acf6-8ee8f3faa3ec","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":49,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"fd61201c-5c00-46d1-b48f-0e3027da27a3","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":49,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"c9e2a3f5-9407-4e38-a8d0-2c0b44d679c4","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":49,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"b61c48a2-47fe-4fe0-892a-2854a0965f8e","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":49,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"ddb7e2d7-01c9-4d0a-ab96-4a6c5f3583c0","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":49,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"3804e872-47dc-47bb-ad0c-9333098a15c0","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":49,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"9fec9ffe-0736-4694-b6ad-49a041cf42d7","block_type":"box","text":"higher-rated securities.","page_number":49,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"b7614674-7b8c-4a4c-8fff-b5d9b59f79f1","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":49,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"4a90737a-be8b-4ebb-afef-d00bcc02c47c","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":49,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"6608dc95-ce61-491f-81bd-61177697fa6d","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":49,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"0a0d523a-f5b8-4ee6-b447-0b0cb4fa8b28","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":49,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"38984618-f7eb-44a1-a4c7-098f9ebad03c","block_type":"box","text":"II-11","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"052587e1-c2a6-4d1d-84d8-59e44a1acc69","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0722db66-91b0-4f81-9f7e-ecc0f8a1969d","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":50,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"54a463b4-0367-4a02-b1a4-7fcab02f300b","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":50,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"eab18ef9-3229-4898-9266-787da031c586","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":50,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"17b40f7b-3241-4191-a5a3-ca1b2f2620ec","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":50,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"27b19d2e-2e14-40e2-9d18-d56a78be31ac","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":50,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"fa202b8b-e889-49b2-9c8a-e1b10e5c76f0","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":50,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"63778133-ed69-4f08-b702-ae6e22f1e5fd","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":50,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"b8f43f76-56c2-42b7-8460-81cb530ae918","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":50,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"b6114e16-f17d-4ef0-b3b4-88b30b805c32","block_type":"box","text":"Mezzanine Investments.","page_number":50,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"647b6b9f-dad9-4070-86e3-f6889384fc8c","block_type":"box","text":"Cer tain Funds, consistent with their restrictions on investing in securities of a specific","page_number":50,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"60770af9-3fe7-45d4-abc7-89c73beafbef","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":50,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"5c5bd539-1913-420a-98fd-1845c0f50c28","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":50,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"afa2a184-a9be-458e-a295-def07638d37d","block_type":"box","text":"e.g.","page_number":50,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"cc9e4a6b-eaab-4666-a1a4-b72bb0877805","block_type":"box","text":", with","page_number":50,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"4851a095-1a2c-4dce-8893-b47cba481645","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":50,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"97435b28-18a5-4c2b-a716-cd3a5169f61e","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":50,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"be46ee0e-a081-4ab1-a54b-0573e934143b","block_type":"box","text":"life is significantly shor ter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":50,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"f405b1ed-0c15-4f5a-a80f-929dcece2bdc","block_type":"box","text":"other obligations of the issuer.","page_number":50,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"1017614d-2f26-4f92-92a4-a6572c994357","block_type":"box","text":"Pay-in-kind Bonds.","page_number":50,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"873fde09-df45-4433-bd23-d8ba0d92c9e7","block_type":"box","text":"Cer tain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":50,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"2b39cc08-0425-45e9-8df0-7cb986d3c898","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":50,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"2903c1ef-c9af-47b5-87d9-5d7a9021a6fa","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":50,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"0504720b-a8fa-4b11-9774-65172cca39b0","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":50,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"8ee66199-74a4-42b8-8b8e-3f34eb1da347","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":50,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"c6bc0e9f-34b5-4f2a-b0dd-60ffdd420004","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":50,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"dc92321a-7fab-40e6-9765-12b48a9dadea","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":50,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"89e7ef95-7300-4f93-a2aa-de7a5d7d0be8","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":50,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"b7650ecc-22ef-4870-ad2a-b00279fc600f","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":50,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"5b392487-efbc-475d-a5a8-efefc5884fb7","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":50,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"7cf15d23-fa5a-4c09-bd8e-80c3b938b0de","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":50,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"b6cd13cc-20c3-4254-bf67-114896dcb690","block_type":"box","text":"Supranational Entities.","page_number":50,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"11785327-93c0-4a72-8d47-ab4bf249555b","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":50,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"ab1e7fff-fdde-4eec-824c-d9fa4e954eb8","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":50,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"99f15127-4e35-4ae8-84d8-3528e6efdac5","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":50,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"7e9c948d-c075-4c0f-abb6-427b151ddaa2","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":50,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"8c20610e-d60c-47eb-bdf0-9863fa5e6467","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":50,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"7e231a73-9eaa-444e-bdaf-bc0203100d61","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":50,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"133304d4-00fd-4fa6-9c44-1fbc06e5b55d","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":50,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"25657688-6dae-4bda-9a62-35de90175566","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":50,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"b7226518-fe79-4ebd-8449-6255d23c9383","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":50,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"76874a43-219c-4522-a15e-990f572ac1a4","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":50,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"7ec60b01-e989-438b-8551-978cc0405f5e","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":50,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"cf44866e-e3c7-435e-bd0c-bf61cc6dc13b","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":50,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"5c980759-a269-4fae-80d6-92b78ee65f74","block_type":"box","text":"conver ted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":50,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"a6eead7b-2357-472f-ac27-23c98f42efdc","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":50,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"2b2bf313-84aa-42a7-9410-9a760e8e97e6","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":50,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"ad9dba02-5e1b-455c-a396-44d91ffaa164","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":50,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"f2d0d4e6-6fd5-49d3-860c-5900e7256d49","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":50,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"657e29b2-72df-4f27-9576-8838083656c8","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":50,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"cb4b694e-0fa2-4437-bd26-f3112855bc6c","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":50,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"55e67bba-aaaf-4f68-8cea-bec2567f0433","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":50,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"fac9a582-aa45-4b8c-8282-bdaecaab0936","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":50,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"fb3a4e03-6ef4-4761-b135-f89c6cc82c1e","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":50,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"e3531f29-7771-4f56-93dc-cb4b5141cb45","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":50,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"3a2fec65-6ae3-41ed-9395-14f76c307cc9","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":50,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"2a73be77-e5bb-4c8f-a235-715f0b1cdc78","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":50,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"2bbb1d22-09af-4e7c-bcae-a6c6d7f1484f","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":50,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"3ef309c4-62ed-4f84-9952-5c675304ec47","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":50,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"df282eb8-c545-4047-86aa-c213b2602ece","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":50,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"8c0f72e2-b305-4897-a5d4-25cae3b3d1f3","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":50,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"d986e2ba-f6a1-46cb-a69e-3a2a4982968e","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":50,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"2e24498f-a911-4bb5-b728-15fa7f26d9ba","block_type":"box","text":"II-12","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8d4ba2aa-5d05-4a08-991d-54471f6a6dca","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3700f5db-9283-4d48-b312-6ca6788bfcb4","block_type":"box","text":"Derivatives.","page_number":51,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"40c8b09e-7081-463d-a5c4-3c55e3edb3b2","block_type":"box","text":"General.","page_number":51,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"ed32af7f-aade-4da5-a8a8-b3d3b70ac46a","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":51,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"559d4223-dd4f-47d3-b453-56b2ebdc810a","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":51,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"2c922b12-e77d-4b5f-8f4b-8f32c6600ce0","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":51,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"0827f7b1-1e0a-465b-88e6-922eabe5b50d","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":51,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"5d3b7a51-5476-447c-b071-4c239a1fcaa9","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":51,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"d3a9435e-7f32-43d9-93fd-439dcb77a3a3","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":51,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"dcd3a958-abde-4b55-8eae-382b79b14c2c","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":51,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"4dd0c20e-fca5-4b2b-bb8f-04913762eeb5","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":51,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"be017d4f-44ff-43e9-b792-114f63154391","block_type":"box","text":"i.e.","page_number":51,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"0c73ffa2-6ed3-4550-b138-c6ab180ec5cb","block_type":"box","text":", the payment","page_number":51,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"7802ee55-54f2-4b57-8ec1-75d4cea9955a","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":51,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"11722ca7-e5fa-4009-8d80-e53f52527007","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":51,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"fb53e4e2-8dd3-4a9b-8cc8-332dedfdd873","block_type":"box","text":"Hedging.","page_number":51,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"71b6bf71-72dc-423f-9cc1-d58abfc32233","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":51,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"aeb6b605-ba3f-4403-90a3-d19491e446b6","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":51,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"155063a2-328b-4ad9-84ba-79381e7d38df","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":51,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"a15bfe0e-1fe6-4cbe-8f8d-b144075fd7c3","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":51,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"4234e4a9-66fe-4f8b-a428-3fe68df2a922","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":51,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"adc24150-f863-4789-8cb6-107439c4330f","block_type":"box","text":"correlation risk,","page_number":51,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"468b3675-9edb-40dc-814a-991e2412054c","block_type":"box","text":"i.e.","page_number":51,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"49b7a9c5-ce77-4f61-9cae-37ec7a1c2eb7","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":51,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"66dc22bd-d7d8-4dae-8a60-b1c04311a7b7","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":51,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"1be2d82f-bc7c-471e-963b-7280503ba124","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":51,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"e1a10a5c-4e7c-4bea-a391-1c57f60dc4b3","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":51,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"75b23f12-0f84-4224-821c-d15c9d3a58c6","block_type":"box","text":"Speculation.","page_number":51,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"2e3a9675-3392-4a68-840e-6dbff78b6987","block_type":"box","text":"Cer tain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":51,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"0a379761-c55c-43ef-969c-298bcb9fdaed","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":51,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"afbd9528-3b95-4bcc-8c1a-a689698e4bb5","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":51,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"2d6bba7d-8564-4db9-a130-0eaa341bcd96","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":51,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"65debb6d-922d-4cf6-9ba1-84e98f3884a8","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":51,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"57c21f8c-b8d9-4791-8e5c-e6d91dd30558","block_type":"box","text":"Regulation of Derivatives.","page_number":51,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"037df18b-27f0-420d-91a4-c2dad7fc0630","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":51,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"eda21074-dcdb-4ba9-a802-8b82a5151ab6","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":51,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"8ddca7b7-6a5d-4474-96fb-82f087942c37","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":51,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"44d5e528-1ce8-46f9-a7a2-af18e65fff1e","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":51,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"92d73243-54c2-400b-8d5e-8c7d782a7371","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":51,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"8baa6b4a-6b52-43be-a0fc-7e31fbca4afa","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":51,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"65e84a44-4bb4-49da-9538-ade7877fad6e","block_type":"box","text":"coverage”).","page_number":51,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"3cd18429-cb40-44f5-8c5e-bf2d084b5aae","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":51,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"c580fedb-2894-4edf-9919-bd398791b028","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":51,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"1e113312-be6e-45ea-a588-9817c22cddab","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":51,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"5042ea8c-a5ec-440b-94e6-ee30feecaecf","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":51,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"db8af84d-5490-43c6-8246-46a51a0dccc8","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":51,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"f853e138-2ffa-463e-bb11-ee104f6f1197","block_type":"box","text":"financing transactions (","page_number":51,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"487b0e7a-199d-4d91-bac3-33118f424b67","block_type":"box","text":"e.g.","page_number":51,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"64bbad2e-4129-4cf0-9afd-97d66b3daca3","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":51,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"726dcfec-01de-4f0c-a585-2a6db2e81590","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":51,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"1b0a4729-9af7-4c59-9bd5-718f8b3690ff","block_type":"box","text":"securities (","page_number":51,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"7d197651-0656-4558-b2b1-3398bd2e9441","block_type":"box","text":"e.g.","page_number":51,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"baa28d84-50bf-46cb-a1e7-903d385e760d","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":51,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"421b7eb3-8250-4bdc-a2dd-1f8fefc263a8","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":51,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"5158e647-2f4c-45b0-8e2c-2d8263844ee7","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":51,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"2da43cf2-e59b-4965-af18-473024ff0fee","block_type":"box","text":"Commitments”).","page_number":51,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"5e303ba9-099a-43dd-b746-350f92b5fa82","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":51,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"ffa8bba4-b274-47a5-aeb0-5193d6db4a86","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":51,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"6176a9f5-72eb-4f31-b5be-6a1e3c6c51b8","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":51,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"042d0ff5-062a-4ea7-a1f6-a294f118bc57","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":51,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"8a0d30ac-1c64-4f1e-bb7c-9f0ec73cbc81","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":51,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"3482985b-edd4-4986-a583-76dc421f0cb3","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":51,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"58bd2354-fc37-49c6-9537-1b12e004b949","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":51,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"83eef612-5568-441a-9a77-f2ff7dc6a0de","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":51,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"2c3adb86-1f45-4960-b81d-11ef00853712","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":51,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"de7aabff-51a4-4643-acd1-24900ab6ba9c","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":51,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"df962079-038a-4fca-95e1-582dbc430eb4","block_type":"box","text":"II-13","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8ef25d07-89a7-4c92-8a4b-e03f959eb0b4","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"df2c4a83-0e3e-4452-a868-e29a38e9fe6d","block_type":"box","text":"Dodd-Frank Regulations.","page_number":52,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"5bf2e1eb-112e-4d88-872a-8b37d87e824d","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":52,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"b9c8a093-d89d-474a-aacd-19c7bd26528b","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":52,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"51e48be1-e370-48ec-8c3e-81bec0c5a575","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":52,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"e0b480b0-59b4-4a78-9528-a98ec6ebb401","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":52,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"549567ba-1b39-475e-82c2-dc5d797de73a","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":52,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"de0a7012-fe2d-4062-9556-1cedfc880ab8","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":52,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"b8669371-cb74-49bb-983d-d84971e021f5","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":52,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"b65f20b9-8587-44d9-922d-c24ad810b219","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, repor ting, transparency, position limits,","page_number":52,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"9fc27fee-6cb6-4826-945b-caaa90508e62","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":52,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"07b5014f-f798-44e5-a9e6-3c8f9f7f4556","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":52,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"3c767e6c-bb9a-406c-b8df-88059f5a1e54","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":52,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"8a7b6a2b-765b-413b-8e20-d4f5929331c4","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":52,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"11a21d25-7593-4087-b289-5ff8da02a7ba","block_type":"box","text":"similar requirements on cer tain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":52,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"1d16c61b-c6de-46ce-967b-0bb0b67e9fbf","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":52,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"2d29a42b-dfb2-477f-bcbc-718e2390a675","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":52,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"1665e737-fa34-4f79-aeb5-f27cd9d0581b","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":52,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"9245df01-99f5-4e0f-a470-b1ffeb5c9594","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":52,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"da1b05b3-c8b9-4fbc-8d4b-5602b21beead","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":52,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"ff1870b9-8ff6-456f-bc0f-dd86a7cfcb46","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":52,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"89d6b171-64fb-4675-afac-3aa9bd8fa6fb","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":52,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"c7b1a9d9-40da-4c0e-81ac-cf889054d1c0","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":52,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"554e9b8d-dc3d-47c5-b30e-683cceef88de","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":52,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"8feda5ae-7ef4-420c-93fd-1be5a3183321","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":52,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"0490405e-1d54-4925-90de-a713831fae7c","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":52,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"673374fd-841c-42a9-bad3-3eee2ed4b907","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":52,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"95d3a34a-22bd-45e7-98c6-463371284851","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":52,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"7bcf0801-1759-4123-9ff7-1b144605543b","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":52,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"2d7f2a0b-2024-468b-9c73-f7e9939f0698","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":52,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"17ed08c7-8c37-48d3-8454-effd9c02ec20","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":52,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"a7d3955b-1cc5-4fae-8277-18e1d1ba1c2d","block_type":"box","text":"member.","page_number":52,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"aeeba1cb-1f90-42e6-bdec-29493078b579","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":52,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"22406651-9985-4e9f-8afa-e7671cee3d94","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":52,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"4499a2bf-e7c0-42e1-b9c9-be7f0defb76d","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":52,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"c9a10774-ea7b-4526-8283-0e4745218507","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":52,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"ac7dcb41-f05d-44b3-9574-1b3bb2f58cb2","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":52,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"22de5e65-55f7-4ae4-a6a1-68bcb3819273","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":52,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"77fefd86-9af4-4d32-8b26-6f84f6be9e52","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":52,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"db8602a0-5975-4994-88a8-067385e964e8","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":52,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"735b0b0c-6eab-4f1c-b4b9-32ad5c42de52","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":52,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"4e5abaf2-327b-48ce-b104-f0a1d7867dd3","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":52,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"265a4aa0-d1ac-4934-9371-411e66d92ea7","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":52,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"a20d0612-e53a-448e-b32d-e111015396a7","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":52,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"b95da554-8b84-4cb7-b19c-ed09ac87dde7","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":52,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"d1ec1e89-e1f2-478b-838d-cf32aa0f85e7","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":52,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"28a90451-66f8-472e-abd0-3c35a71df6f1","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":52,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"ffbd17a5-c86e-4534-ae4e-f16be992ba1e","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":52,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"6d468084-acd0-4a76-a785-3f758043d272","block_type":"box","text":"The CFTC, cer tain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":52,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"568bb521-48fa-4af1-a6db-976bef601557","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":52,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"9ed04caf-28c4-41e3-8179-a437efd276e5","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":52,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"d6e87d6d-389b-4667-b213-660784cf1c8b","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":52,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"73186bbe-22c1-4941-bf7c-7bd51f66c95c","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":52,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"b0996eb3-bcad-4785-8c68-64dc3b987340","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":52,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"85325063-d8eb-485c-9c73-0df9bdad8f62","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":52,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"708bf057-7654-4e75-a399-5e44db495f32","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":52,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"c3cf4c76-5ee4-4957-8254-bd3edd43e193","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":52,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"9ca4c4bd-2dbb-4b43-9f45-3a4b6e66ddfb","block_type":"box","text":"II-14","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9b8a0913-70b2-4e28-a129-2a8f44a9176b","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f4d87c1f-9061-4099-b480-c190a9b49efa","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":53,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"be2ae649-0ebc-4f0a-af1f-bf12a457b757","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":53,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"8145ad58-af04-4c29-9eb0-89e7d702338e","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":53,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"0f799f1c-8857-486f-b48c-b27e49cb3270","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":53,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"e0005a07-e3fc-4f76-ab45-583279f4b9e7","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":53,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"2c0c102f-da66-46a1-9a78-c9d798334e94","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":53,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"30b9ba97-02e6-4794-a33f-39e13ce87378","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":53,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"148b6b17-e79b-409e-a928-428ed28f58e9","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":53,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"0a687cb1-018e-43c7-beb7-b15c6798152e","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":53,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"450cbfcc-d774-44ed-9ca1-1fcf63592029","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":53,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"b7c603f5-4651-43d4-8b50-2f7941c3e412","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":53,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"75ec725d-95b4-408b-8e3d-ba3aa364f858","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":53,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"0fe7b448-eb8a-45c2-af29-98ca03d8de29","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":53,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"d75310c6-589d-4362-9ec2-f7200368c480","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":53,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"9298bde7-d6f3-466e-9073-d0e4daf09069","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":53,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"78646eba-49c0-40d9-b028-054e0871f4e3","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":53,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"16e2710a-b390-41cf-aa9c-f62038e50ce7","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":53,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"1e92b942-6b38-41db-847e-b6b0912b506b","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":53,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"746c08b9-a91f-4dd5-a958-cfd1f71a1c16","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":53,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"120d5532-514e-4a53-bb2f-9e3c01e8071a","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":53,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"57964563-09b9-427e-9140-c7b84325e465","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":53,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"5982792e-2df3-42b6-867a-7456c18d34a7","block_type":"box","text":"regulated entities and cer tain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":53,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"bba2163c-96a9-44c0-b513-827973c61b70","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":53,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"cd5e4bdb-321e-4c04-882a-0aa1819a8af6","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":53,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"2b22ff64-f094-427d-8805-77bb5343a434","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":53,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"30c22634-1db6-442f-ad41-89c964a2ad55","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":53,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"15284818-c7e7-4ce5-b9e3-b2c00b74e9f6","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":53,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"7c7467c3-84d0-49eb-9d89-257c6aa47911","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":53,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"db89d3dc-11c0-478f-a026-4f1edf73a089","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":53,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"cb61ece8-02fb-4cab-b53c-b673ad819819","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":53,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"a9259746-302b-4d48-bef9-d028314bb9b9","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":53,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"4848db5f-c2a4-4944-b073-6e7d2bc79af4","block_type":"box","text":"collateral received under such contracts.","page_number":53,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"2664e3b0-2c79-4999-8d76-7fbd1103215f","block_type":"box","text":"Risk Factors in Derivatives.","page_number":53,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"54b69577-c89b-410b-8b2f-b9488763831c","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":53,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"13ad708c-0f85-4d0e-9291-da21e361d997","block_type":"box","text":"Correlation Risk","page_number":53,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"ba6f51ae-8b39-4da6-a3a9-d7b717395e7c","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":53,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"cd91cd2d-a835-497f-bc34-e013055bb759","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":53,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"dcaa7cd3-22b0-4677-a549-9bee7c90885c","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":53,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"d245a36f-f3ae-4444-85f4-7688d9ee8aa0","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":53,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"1139a8a1-7511-475d-bd07-90862c9cc91f","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":53,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"410610d1-a28d-4239-89ea-0fafc4917ee8","block_type":"box","text":"Counterpar ty Risk","page_number":53,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"55394eb0-dc37-4121-be08-cffa31b60e2f","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":53,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"0cb09495-88b4-4e0a-be83-fac9022a2ae6","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":53,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"3c345365-393c-4490-994a-4a998b8e4630","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":53,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"37c822bf-d1ae-440f-9c94-6da8bb194d92","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":53,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"d9048a36-ae6c-40bc-8e36-888935fb76a1","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":53,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"539ff8d2-d523-4dff-8a5b-8818b5bae59c","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":53,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"3e89eae2-7c1f-4f8b-bfd3-da6a7527ce45","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":53,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"3523b34e-e158-444c-b74e-918409a8ea97","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":53,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"1909033e-1a2b-4ab0-941d-46b0e397d54c","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":53,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"58fae119-a0e5-4b18-9b69-3bf90751724a","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":53,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"68e28dff-3eb6-41df-9321-d3e72ca4a5f1","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":53,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"1f72440f-10d5-4fc7-9953-3985092b52d3","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":53,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"18ff9771-f594-4921-a5f9-381dc17727c0","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":53,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"51956c91-ef57-46c4-99c9-cbff752b33ba","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":53,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"20b42b9d-3bc1-4d8b-87c6-3b13e100508f","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":53,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"200450d7-543f-46c7-810c-092d2db96799","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":53,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"58d9a79e-8682-4fbf-8685-bcc5b3aa07e2","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":53,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"6f4e07cd-e851-4819-b83e-29bba11435bc","block_type":"box","text":"II-15","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"547206b9-cbc2-4f72-9416-83411ebe5754","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7c983595-740e-4daf-9c4a-e93cd43796e3","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":54,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"284061ba-514f-41af-88ba-3a6ede30ae65","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":54,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"2c18717f-cdc4-4ce1-8924-d11f49e4d9f2","block_type":"box","text":"by the clearing member.","page_number":54,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"0e2dfc4d-d60c-4e94-a893-cc78ff4e7f38","block_type":"box","text":"Credit Risk","page_number":54,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"23bd8b54-c28c-45e6-bc17-7b820e222c77","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":54,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"c6d6167b-c280-4e1b-a1d1-babf72ccf6f8","block_type":"box","text":"honor its financial obligations.","page_number":54,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"9bbc011b-1dfd-4588-92e8-f2b8d49d6841","block_type":"box","text":"Currency Risk","page_number":54,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"51406213-7783-463f-a5cd-3583695ab26c","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":54,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"6b64b4df-7dbc-4437-83ad-4dbcfb90aa4d","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":54,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"cc4b3e2f-76f6-4b73-9367-4d38af43c937","block_type":"box","text":"Illiquidity Risk","page_number":54,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"cafbff65-841a-4586-8a9f-191111192ffc","block_type":"box","text":"— the risk that cer tain securities or instruments may be difficult or impossible to sell at the time","page_number":54,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"e30587b8-c99e-499f-a490-74fae25542eb","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":54,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"d3d019f8-0789-4091-9efa-22f3749137a5","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":54,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"ca3c4394-1b23-4374-a720-820e7d248683","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":54,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"f0441193-d693-4752-bdeb-43d3ed967270","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":54,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"8b85b626-e17d-43b0-bd9a-3cb0702c33f7","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":54,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"2f5a9271-923f-41ab-8edb-41eff918526f","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":54,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"43b56186-e329-4194-80a0-b9e74da2b469","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":54,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"e97f6c9f-810f-4559-98e6-1b17370467b3","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":54,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"3bb342a9-07d3-4132-bde8-9c5d1b9ab8fc","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":54,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"3f17f49d-0e11-42bd-b41f-e4efd8d8dcf4","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":54,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"afd87fec-86d2-4a1e-84f3-e8155cc559ea","block_type":"box","text":"the par ticipation of speculators, government regulation and intervention, and technical and operational or system","page_number":54,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"21b4b0c5-b7d0-4291-8e85-3b79499e2581","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":54,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"8c1c10bc-5c03-47eb-9657-f9f9318e7957","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":54,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"7cf35d85-642e-4256-933d-7ed12440b49d","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":54,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"dd2ae0d2-3a86-4db4-a1c3-68d58dc0d945","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":54,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"a4b90816-ec40-44f6-80d1-068b920cab2c","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":54,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"517b0176-0a4e-481b-aea0-72c55c781938","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":54,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"c708616e-708f-42a7-bca4-496d91c578ba","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":54,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"ef211978-a332-4bd8-8437-85ab4e678517","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":54,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"6068cc36-5bf7-4bc1-852a-e9dc9289d74a","block_type":"box","text":"may be disadvantageous to do so.","page_number":54,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"cec40f22-19a6-42c2-ad1c-893c81a6692e","block_type":"box","text":"Index Risk","page_number":54,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"ed3025d1-8ac3-40a7-b308-00687b126834","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":54,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"1be89457-5b41-403d-b296-73c35acd1944","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":54,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"5f315de2-a6f4-43f8-b263-4e0ffd4f52e0","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":54,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"6b59d922-ed82-4e26-971a-2078707e71c3","block_type":"box","text":"Legal Risk","page_number":54,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"f628f598-b061-485c-affe-264af8ca113d","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":54,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"3408dc2e-5272-4153-b962-5192d65c980b","block_type":"box","text":"or enforceability of a contract.","page_number":54,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"cb1fc259-6ebe-41c5-8b77-d4d5e7cbc1cb","block_type":"box","text":"Leverage Risk","page_number":54,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"5bee333b-93cb-48b1-a139-0f1e7d6f9ca2","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":54,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"a1dd9217-6167-4377-9b50-9118e4de577a","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":54,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"1d39c2d0-1a1c-4deb-bf87-77fea168d007","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":54,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"8fa4481b-56d2-4d43-aefd-90d4328877af","block_type":"box","text":"Market Risk","page_number":54,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"93182fed-ad5b-4e09-ae17-2ffc09258e82","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":54,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"9c45f77f-5d98-4c8b-a466-c8dbee1f1487","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":54,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"ea164b1d-679c-4eca-975c-ab7c4e7d1642","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":54,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"2616a1ee-e251-4706-9139-eb16f6fea880","block_type":"box","text":"affected.","page_number":54,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"ece25ccc-2cdd-4bb1-b5a3-83a60931555f","block_type":"box","text":"Operational Risk","page_number":54,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"4a063ad5-229f-4bbe-a76d-4b29bce71c12","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":54,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"7834956e-d9a6-44ad-ab3b-42cfd7a2d0d1","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":54,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"9624827c-0733-4037-93af-e3d665408847","block_type":"box","text":"Valuation Risk","page_number":54,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"8e0a3d75-7e58-4ea9-a0e1-3ce1b1397bfd","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":54,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"1fb3bdc7-bd98-407f-9bb7-c3c30a9af19c","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":54,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"f9896344-4bce-482f-b4d6-4fb8931b9f92","block_type":"box","text":"complex instruments or quote prices for them.","page_number":54,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"860a431d-e543-4f6e-8671-59af14cf11b9","block_type":"box","text":"Volatility Risk","page_number":54,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"53e95659-0d6a-4ac1-bf9c-12f86a7060fb","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period.","page_number":54,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"b289c65d-5fa8-4e1b-8c1b-699b203f7243","block_type":"box","text":"Types of Derivatives Transactions.","page_number":54,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"20f0dab2-693a-405c-a121-84cd85017976","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":54,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"6b1135b6-464c-460e-857d-3a17afadaf3e","block_type":"box","text":"including the following:","page_number":54,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"f45bc445-3a7b-4654-8b9f-2eb3d0e93b35","block_type":"box","text":"Futures.","page_number":54,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"0d0aef2e-af49-4a8e-bfa4-c7f8715e4ae6","block_type":"box","text":"II-16","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6ccf3a26-732c-4178-8ada-1b0e334cdca9","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f84b90aa-e106-4037-a634-955e055857ae","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":55,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"f848d627-f591-4e58-b141-6596cea1c095","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":55,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"2cf27485-4fe0-4117-9a92-bfe7b635ad40","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":55,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"cbbe7f1b-e0c7-4ec8-9a7b-022e5e55df8b","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":55,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"88c7b8a0-9098-4f91-a792-37b6ca78b9ce","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":55,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"31ee059c-c4fa-4ac9-98f6-ef4a7251e761","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":55,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"440cfba4-37bb-4bca-b6d2-4eff2b4c1d09","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":55,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"571fdce2-9125-4bc1-b19b-b14b62cf73d8","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":55,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"d8956efd-6c54-4bb7-a248-998989dfbe57","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":55,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"6a7afacf-a47a-4e73-87b0-fd3a34082868","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":55,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"8d618cc1-b235-40d5-a9e8-070c233344f5","block_type":"box","text":"of the futures contract.","page_number":55,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"0730bf4c-080f-43fd-a74e-79c5c9524166","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":55,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"21252030-3a5f-40b9-a5ee-08f888eb230d","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":55,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"52623766-adf9-4d4e-b957-72efa1b27720","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":55,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"cb1799eb-9952-4b7a-97f6-23973dac1143","block_type":"box","text":"relating to the futures position.","page_number":55,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"48d13ba4-ae8f-44fb-958a-a6225c4104c9","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":55,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"0b21bf53-75f4-4903-b9c5-638c36325383","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":55,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"ccc25cd1-db03-4d2c-be1c-39c37c17537b","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":55,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"ab5570b2-5a2e-4233-a7a3-982b5dc282da","block_type":"box","text":"Regulations” above.","page_number":55,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"c1ea8066-757b-4a07-8af3-eafc18122900","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":55,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"1460e071-860f-4c47-ae8d-5d7f2a2f3cc2","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":55,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"a33b9ee0-ac6b-464b-88ab-552575678d5e","block_type":"box","text":"(","page_number":55,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"41aa025d-9a7f-44dd-bb7f-c03982a60b22","block_type":"box","text":"i.e.","page_number":55,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"cc869aaf-3cc3-4ab1-b701-59a1704cd374","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":55,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"7925ceb6-7baa-407d-85f7-93b2236cce25","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":55,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"a0a39f09-abae-4600-be11-72a67c4db46d","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":55,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"09248e09-9460-4ef6-99c8-ef7a37c4c0c7","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":55,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"480777a3-d590-4e67-ba03-a6ba300ccc35","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":55,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"ce6e6a03-c0e1-40e0-8c5e-a37ba33ee36d","block_type":"box","text":"Fund intends to purchase.","page_number":55,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"f6fa71dc-ed0e-44b0-832f-4e2883cec0a7","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":55,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"d9669b22-6961-49ef-949f-a48cfdbbb39a","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":55,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"5d4bfb2a-8ca1-47ba-a221-e55edc8d7772","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":55,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"bfbf3796-a0d1-45e9-a954-68b2d2c37201","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":55,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"e18190f9-0a68-4864-9b40-e06ffee5e40d","block_type":"box","text":"illiquidity.","page_number":55,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"0838adaf-d38d-47b5-b0a5-4b603c734b50","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":55,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"e460ca64-7712-4a9a-b9df-0d109cd0d424","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":55,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"e6ef96c0-dbc2-4bc4-a488-2acc6f18a989","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":55,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"f2bed5fc-a795-4f71-8be7-366d02854af0","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":55,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"50733805-53a1-4c0f-90f8-71df4b1ee5fd","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":55,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"7740a92f-9912-45be-9009-91f20508c598","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":55,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"d02c11e1-9006-4d3d-a216-eecb541c58a4","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":55,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"04db2439-6a32-4ae7-af06-38799192916f","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":55,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"635316ff-324e-4021-b567-7d284721d8fe","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":55,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"4886ea6d-3447-4d53-a81c-de86c1f214cf","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":55,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"f169ba1a-6283-4fcb-ac52-0a294328964c","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":55,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"3f90511b-b9fd-41dd-9833-5dde33e37cda","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":55,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"b91d6c06-8f66-49f2-9ca3-c5f1efe18ff0","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":55,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"297a701c-f8f8-4b1f-8720-3bf79ef7d687","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":55,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"d41fd812-d0fc-4a23-b0e2-03e7b66da765","block_type":"box","text":"Swap Agreements.","page_number":55,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"633ba0b9-bdec-4c51-bd82-7374c4ac8029","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":55,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"30d7d3c1-9db6-483f-8018-df50525eb63b","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":55,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"2478ec56-8c9a-4ec1-a952-6070b5c1373f","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":55,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"eace7ed3-99c2-4f9c-9898-c93bbdefcf51","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":55,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"326823c5-9cba-4d82-a41c-7ef7d9cdd936","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":55,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"3a4fa458-a855-461c-bb50-700466e105e8","block_type":"box","text":"a “notional amount,”","page_number":55,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"9c7cd283-bcdc-4ac1-be2f-cc6aae48a58f","block_type":"box","text":"e.g.","page_number":55,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"7b3aded0-a587-4774-8990-2454a57fc7e1","block_type":"box","text":", the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":55,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"0ea7be9f-5e60-404e-8775-4f25f9c04efb","block_type":"box","text":"II-17","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bb607519-62ba-4e7a-86ec-8c82b21537aa","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"20285fb1-7d43-492a-a242-8d9f1ad24261","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":56,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"5868ea6f-d3c1-4e36-916a-e20f8b879758","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":56,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"b36de786-01c2-45cd-926e-a95087883179","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":56,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"288be4e8-cd38-48e6-8e05-b632ff97a27e","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":56,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"94b23916-30a3-4741-bcdd-c242af38b5c4","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":56,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"9bd1a65e-3e4c-43b7-a911-e0db066cd9e3","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":56,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"2393d8e0-5309-4661-9fd9-7197bbb930e2","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":56,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"8929d414-ee7e-4ec2-bfb0-8320a0aba878","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":56,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"c1512f9f-8dfe-48dc-a2f9-ed6221cf9cfc","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":56,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"6059cb6e-18d7-45b6-8719-f4bb4a9dcc0c","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":56,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"f87c02f4-94d0-4d91-a50c-64a9d704f0e1","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":56,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"5d79f8f1-af39-4898-9693-200d3b93d7d6","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":56,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"7809e945-49ea-421d-b6ef-932471f711c7","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":56,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"ba027bff-ce71-45d4-93bc-9265bf5fb073","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":56,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"55d90bf8-a575-4c0e-8640-6b006c2a60d7","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":56,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"bbad6dc7-cfbb-4dc9-a06c-da0cbbd3ac3a","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":56,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"13fd5312-b72e-4307-97e5-4bedef37d79d","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":56,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"c5d4bffc-960c-4724-a1c1-2a44ba45e06e","block_type":"box","text":"index CDS.","page_number":56,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"93d05c09-1a3d-46e9-96c5-9c71a22618bc","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":56,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"940373d3-d77b-4310-b064-998982c469d1","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":56,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"96f30dfd-b16b-408d-a2e8-f38b16e674ca","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":56,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"9345de7b-63cb-4abd-b860-79aef1aedc58","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":56,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"639c4632-fdc8-4729-831c-6e4bbbd486ca","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":56,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"6426847d-8f8b-419d-866c-67f01eb4f914","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":56,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"1a394bb2-c1bc-4438-a6cc-e0159aa023b3","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":56,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"003f8423-485e-4cfc-8668-580a5fb30d52","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":56,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"28394e62-170a-4a1d-8283-586c39ae503b","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":56,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"cab3d730-5ea8-4fab-afdd-83ed84b18c54","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":56,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"c5e587a1-23f6-4eb5-89c1-3345dca71ef9","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":56,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"5467cdf4-5149-49f2-94a2-fdbfa4e40e7e","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":56,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"37b6a680-69f5-4596-915d-a9c588142b00","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":56,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"0698f5eb-898c-46a0-a8a1-39924fea9c89","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":56,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"a4a1a7a7-f059-40f5-ae08-881fd02a987e","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":56,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"057d99a6-ab38-4eef-a8cb-209a5b5851f7","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":56,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"a11b0b8d-4bad-47f0-a6f6-9aaa35721672","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":56,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"43ea5b7b-32f2-4d42-9154-96b15a101153","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":56,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"b23db69f-bcdd-4247-81b4-e9399efbb529","block_type":"box","text":"into cer tain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":56,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"36f3cdb4-d091-4b69-9acc-7e5704bfb4f6","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":56,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"b7fcfdfd-3fe2-4fcb-8b87-455a9c6616ef","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":56,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"f8aeb223-842c-405d-9a0b-0e2c222024e6","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":56,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"5a01d805-3397-4823-9d08-e665653707ff","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":56,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"12f899c9-ca7c-49e5-8b69-ae15c03e66cd","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":56,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"ade6df7e-1f1f-4eb6-8b1a-1d055490015e","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":56,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"b178c06e-8cd2-4f39-9a5e-0c37d43f0ab3","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":56,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"94bb1c73-9d41-4ed3-b070-6ddb471573e6","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":56,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"80ff0443-f594-464f-ac87-2ab28a0692ea","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":56,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"5db8b87e-c162-48cf-b054-58588bb51712","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":56,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"7745e862-f8de-4a17-aed1-278ca3e39ef3","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":56,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"47ec85ac-d441-4923-9a5b-800ea13f2479","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":56,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"b3f7072b-473d-4c0a-86fc-a413e3613830","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":56,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"6c70b178-d322-4f44-b4e0-adb2fbef1116","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":56,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"af628fed-ca00-4870-9ba6-5d7b7de61cea","block_type":"box","text":"conditions.","page_number":56,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"44a701aa-e350-47c7-a32a-209515e53888","block_type":"box","text":"Dodd-Frank requires that cer tain index CDS be executed in regulated markets and submitted for clearing to","page_number":56,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"c6ce565e-8e83-49bb-b6a4-72fe76cef15c","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":56,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"318040b8-cbc6-491d-84a3-3f562cefd39f","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":56,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"3245ecdc-a1d1-4f6a-8567-64f186b0dd1e","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":56,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"82d181c7-3022-49ae-b7dd-29507273a28d","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":56,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"91dcff08-e3ed-4675-927b-1c09583940dd","block_type":"box","text":"II-18","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9bb94ad6-eb31-49a0-b679-dc914e27e046","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"603fd507-752f-439a-b922-5f2da15d08df","block_type":"box","text":"counterpar ty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":57,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"abe7bca0-381d-4fca-812f-797291c4a972","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":57,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"3e4e49be-2952-4bac-8194-3cb7fe3ef745","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":57,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"c9151023-23e3-43ee-9472-7e22d9f227f5","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":57,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"0a8b781d-4ef9-416d-aca9-a94fb3b69d26","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":57,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"98ed14d1-9cbe-40ca-a26a-f80b36c99a3d","block_type":"box","text":"In cer tain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":57,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"b222ec43-cb8c-40b0-9784-76724aa70e96","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":57,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"d5145592-9879-4e09-b2b2-a6fe9b28cc65","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":57,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"2774541b-a2ab-434e-acda-705481be1d89","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":57,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"28ddcba1-db3f-4af9-b5a9-851455828899","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":57,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"fee8d66f-6075-457a-8f72-dfd25dfb2a61","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":57,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"8ef09dbc-4837-4ccc-84cd-5f2dfa79977a","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":57,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"355caa95-1349-43a1-b86c-c97282e21e81","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":57,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"c23bf398-5575-404a-9f49-e86490449cf5","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":57,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"afcdc3f7-27a1-43da-9812-1cd202539fca","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":57,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"1149a95b-a952-43da-9bf2-9fc8d32356c6","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":57,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"f5947d99-5f04-4d09-ac3a-71b5937093c7","block_type":"box","text":"Cer tain Funds may enter into OTC derivatives in the form of interest rate","page_number":57,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"ce069e6b-a676-4f75-9d20-10237f62f766","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":57,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"82b512c3-4b70-46d3-8057-a9554406243e","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":57,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"4d1d5a3f-7f57-44c2-ba00-9b6c491a9e4b","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":57,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"34ccaa79-5cb9-4413-949b-06a3e6f186b7","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":57,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"e93aec09-f95f-4d50-83ff-b4c243f963fd","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":57,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"207f41e6-da27-4a8e-b01e-9d4d2ec8916a","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":57,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"5f672d8a-2cce-49b8-a7af-84bcfcac9bb7","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":57,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"a1725dfd-12ed-4102-8085-ec624c62a017","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":57,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"0b5cae83-141b-45de-8fb3-a9acddb4c17f","block_type":"box","text":"cleared interest rate swaps.","page_number":57,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"834562b9-16d0-4e7a-9cc3-c811d22f08f3","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":57,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"4d8755ca-79f0-4f20-a63b-6a2004d78e4f","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":57,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"9866c32e-d744-4589-acca-33ea3e555ee1","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":57,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"83bf4f8a-1a57-467d-8724-b5b15a9dba69","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":57,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"c968763d-ce71-4438-ac06-508e6b36bdab","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":57,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"4b8ba230-c69e-4715-936c-ef3bd530acf5","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":57,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"7ec0f8bb-c8cc-4b09-9c40-0dc1ad813e15","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":57,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"6dab4c6c-0d86-48aa-ab72-7a41bd6ce3b7","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":57,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"3febf356-40cc-46b1-a191-21b35a8a32f0","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":57,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"3a55c070-7fa5-42c2-a2f2-b45841835428","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":57,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"d0b8a9e1-42fb-4c91-94a4-0c54b4ca5846","block_type":"box","text":"or variable interest rate, index or asset.","page_number":57,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"dac8120a-ea38-4048-b06a-b8c688ae6c55","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":57,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"53d4628e-ce2c-49a6-9524-79a9d6e0a12f","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":57,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"0bb20ce8-cb74-43ff-913e-ccf61e51ff0f","block_type":"box","text":"such interest rate floor.","page_number":57,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"768b43be-05cc-4b99-a658-c4df5fce1a7c","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":57,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"afc9a2ab-e3b1-4f7d-ad8f-fd95a78577fe","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":57,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"ffdf3b04-d49d-4999-be64-112456cd96a8","block_type":"box","text":"such interest rate cap.","page_number":57,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"a95b202f-e42e-4c73-97eb-1ebf2ff1f299","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":57,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"14153c7d-c3cf-4a4e-b87b-7ff3eceae6f0","block_type":"box","text":"commitments to pay or receive interest,","page_number":57,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"8e66ade0-7971-4e6b-a77b-e12f70747771","block_type":"box","text":"e.g.","page_number":57,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"18d2f3c3-18b4-47af-b16a-9e8f89c862bd","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":57,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"47c5a23d-a5a4-4455-97ee-ecb1cc619b48","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":57,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"5b33dede-8012-4857-8456-42a0e91a8a2b","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":57,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"4f3b0777-cc15-4228-8a3d-8e8366b7bb10","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":57,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"7b811500-6c93-44df-a81a-0e83f7c8827b","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":57,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"5b39c48a-cf05-465e-865e-220dc80f6510","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":57,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"fa909c4b-d263-464c-a45c-d3847b20be63","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":57,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"e4f17e01-4b2a-4435-add1-6b4847451abd","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":57,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"69c50618-2502-4b8f-80c6-833f08d54e3a","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":57,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"039ae638-c1b3-44fc-925c-d45b0af452a4","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":57,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"bc6dc69d-dbd3-4c8a-8dec-53282a9f0100","block_type":"box","text":"II-19","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6f3e33b5-f264-4c3d-8ceb-35282b69fb84","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"774be172-b3a1-4416-8bc8-fa450cde0f86","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":58,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"88226dab-47dc-46bf-af0e-227ba5e0de9c","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":58,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"3dbe83fa-6f46-4c3c-b200-38b0747bae87","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":58,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"973c1ab7-663e-475e-ba49-cf167e681344","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":58,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"89ff6e6b-8064-4865-9842-b6eea31d8b47","block_type":"box","text":"Total Return Swaps.","page_number":58,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"b5932791-d102-4c88-b00f-3d10d6df1369","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":58,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"7707d928-0ee9-433c-a720-43bfac541239","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":58,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"0750ecc2-0b50-45c9-a78e-94b419716fb3","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":58,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"d4d26f6a-7f93-45ef-93b9-4349ed0f486b","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":58,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"edbfb7ae-0ff2-4f6b-86c9-a7a971b93a62","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":58,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"63d0b87c-48bf-4b9a-9432-f7579d1b5800","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":58,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"8b239877-2a2c-43bc-81d6-5d12d00a4219","block_type":"box","text":"“contracts for difference.”","page_number":58,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"0a195b4d-cd5d-4c1b-9bd1-e402f3bac3c2","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":58,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"df4ae276-9a57-461c-baf4-7fcd5fc4b765","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":58,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"b977ae86-2654-43b8-b34a-bc1853e4e264","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":58,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"9179defb-4f93-48ba-850e-c12e7aba6ff5","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":58,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"7cc1f6c1-411e-42f9-8461-41decd5fbe38","block_type":"box","text":"the notional amount of the swap.","page_number":58,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"c80b289d-0de0-445e-9c2e-d4db90dccd31","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":58,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"ed1466a1-b0fa-46e0-a25e-553d4f37a4bf","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":58,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"9f68608c-6b54-4591-9e5a-cc23dba40baa","block_type":"box","text":"Options.","page_number":58,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"bb1c5365-f074-4b8b-9c37-993bd6b9e096","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":58,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"56c6ad3c-d69f-4dfd-b46f-e2d5e2befc78","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":58,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"1b8264d0-20ac-45b0-9515-83afa8fc09ff","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":58,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"2aae1479-c07c-4fcc-8aef-901eca728d8a","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":58,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"780fd71e-4afc-4c17-96c9-109719fc2f0f","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":58,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"d1ac216a-2fee-412e-8868-6047e6056ef1","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":58,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"566e5dbf-b61b-4e9f-bfbc-6fb83eb8d8e7","block_type":"box","text":"par ties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":58,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"4ba76db0-fb74-4336-9359-a38ca86ffda5","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":58,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"07bb18fd-9ad6-4131-970d-896982245028","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":58,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"ea7ddf0a-3a54-4c53-a00c-ea40eac56d57","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":58,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"a6c425f2-911e-4854-9555-0a5c59538b7a","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":58,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"b87a5c66-2ea2-44ed-a783-e229a379ddcd","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":58,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"677d64c3-3054-43a7-af99-a00ace4d6ee0","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":58,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"84d3974f-a949-44c1-9bd6-636dcaf8d69c","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":58,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"1cc7849e-0fc0-4a05-b96e-8a017eefef11","block_type":"box","text":"OTC markets.","page_number":58,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"7f7649c1-f50e-43d2-8b0b-5b491f073040","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":58,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"5d671316-9d68-46a5-8bce-25836dead6ed","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":58,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"7fd73634-ba1a-4d85-9d89-f7d03e119d23","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":58,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"72b1e100-e2ed-40a9-82a6-61f3e69b1d5e","block_type":"box","text":"par ticular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":58,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"9db5e7d7-7645-477e-b4dc-93579e315281","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":58,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"9f89f826-0b6c-4a12-be43-15bc826a6d75","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":58,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"abdca18a-72e3-47e9-8fe6-0234d41e464f","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":58,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"38f79020-a43d-443d-b1c5-e7f0a5e0cac5","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":58,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"deafbece-0c67-41c0-89a8-4ed789b1e69e","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":58,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"3cc28b82-f692-47be-8d74-01a7c2927a4a","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":58,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"a6ab90de-8a8a-4bf6-aa33-3ac953a0c906","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":58,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"d5321189-ae09-44bb-9031-d3b878c17c0c","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":58,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"ebc02951-03fc-45c8-8ac9-031ddac05f9d","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":58,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"7380f734-072a-4dfe-a69e-b0d0c80a67e0","block_type":"box","text":"terms.","page_number":58,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"8fbb7985-5516-4203-b9f5-a8bf38d12a2f","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":58,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"d260d218-afd0-42fd-895a-9be0e559d2bf","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":58,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"cf2dff25-522c-4ce8-8f84-f478766e37ba","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":58,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"6cc71cd5-f180-4cea-a733-23a05c03e16d","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":58,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"718a55c0-cbe6-473b-b4d6-a6568a59754f","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":58,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"b90a637c-38b4-4d98-b187-a43d0789b3fe","block_type":"box","text":"II-20","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c0a55093-0631-4ff1-ae7c-7e85330f6c0a","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6d537e19-557c-425b-ab4c-c7bf700cd0ac","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":59,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"a6998ca5-7b3e-4cfd-9d22-905c9ba6b2ee","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":59,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"1ebbcd3b-d150-4268-b46c-53acbcf379a3","block_type":"box","text":"Call Options.","page_number":59,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"42d136bb-239f-421f-bb46-6f24debdc9ee","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":59,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"2dde01e7-b513-4404-aa27-b5ea98f1495b","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":59,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"5deedd39-2548-418f-ab2b-fc876d99d4f1","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":59,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"fa2e2cc9-7a9e-4aa9-9f3d-1bb16e81211a","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":59,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"4b8961ea-5380-413e-af70-a39c7eed5bd3","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":59,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"e2109569-290e-4db9-a6df-33469723b9d7","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":59,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"93925a85-423c-49ce-b916-6f591ab35c7e","block_type":"box","text":"of the option.","page_number":59,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"5940a4fd-8ef7-4fb3-899c-d680d8a3b0ff","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":59,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"e0fb5919-12a8-48bc-9b58-f4a9139a1f66","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":59,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"1bc011ec-4f0d-44f4-9405-62b159d6f9cb","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":59,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"60d1adca-6da4-46ce-977b-1fa9ca4036f1","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":59,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"d09b75c3-88aa-49f0-a59c-773971f5fab3","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":59,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"c90e4453-1aeb-4423-b4c4-eb964e5afa64","block_type":"box","text":"A Fund may write (","page_number":59,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"860e74ff-1eb7-4a84-8cf7-6308c673c532","block_type":"box","text":"i.e.","page_number":59,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"3b618c5e-95d4-4c9f-80d4-31d5b0e3ba83","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":59,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"ecf09846-dd22-4574-a550-1bfd40da0e26","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":59,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"0b6b48f4-bf97-448a-98ca-bde5d80f089b","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":59,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"42d4a07e-b1d6-4041-83d9-6f425699eac3","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":59,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"b41f1b85-a149-4464-a2a5-8ed067d21722","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":59,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"5da95801-3631-4568-a037-c6b81271bd7d","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":59,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"46d3932e-0f13-4dae-bb65-f522fff44184","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":59,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"3465b6e0-e263-45e4-9758-00be06b66b26","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":59,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"4a62b58d-552e-4270-8465-32a785dbefdd","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":59,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"060b53b1-d185-4c8d-a427-64c8802d4f8a","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":59,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"97ac0447-3d91-4ec8-9826-fb4d3335afb0","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":59,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"79274157-82ef-4e92-8995-d5665df46a73","block_type":"box","text":"A Fund may write","page_number":59,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"be3c7f2f-b067-4995-a5b3-9ed3bdbee68f","block_type":"box","text":"(i.e.","page_number":59,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"eb1db1d1-4c1b-4fb6-8084-f644d9f8e0ee","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":59,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"0d8c520d-744f-47bb-aeae-dba65769acb4","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":59,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"c31204cb-5041-47c4-9d63-4e561aedaebb","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":59,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"db74be0f-3482-4d06-857a-3f766f43f56f","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":59,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"7d198af2-9ea0-4114-b07d-e78a793c2f20","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":59,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"3e4f2c0f-ca19-45bc-8fad-27de1c037ecc","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":59,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"cbe2a5dd-dcf2-49b9-bbc3-4ce088c6fd40","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":59,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"6affb89e-702f-4655-afdf-715d12e32e85","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":59,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"b31db97e-776e-475c-aa07-b22dc6fac83a","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":59,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"7af1865b-58c1-4910-a301-c4499f9011e7","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":59,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"69cd3ebb-43a0-4d01-bcc3-c5bdda313d84","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":59,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"d633446e-37d8-48fc-a6c3-01cafac6c3c1","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":59,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"95b2de21-bf10-4ccf-a84e-54dbe6c36572","block_type":"box","text":"Put Options.","page_number":59,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"a50bb27d-ed4a-44cf-87b4-a27a2930eccd","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":59,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"234eefb1-aba3-4de6-aeba-477caf70effa","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":59,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"dcef5d98-6496-4470-af7b-880ffcfe8264","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":59,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"9b711109-9d65-48a5-9d67-1994786a3b82","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":59,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"b15f7516-2358-4148-bef2-518a8850af63","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":59,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"1ff0e083-7119-4939-a340-5b80329657bb","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":59,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"dd887bc2-a072-4533-9ccb-1bc1e8fc8a9a","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":59,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"c59bb1d1-737a-40d1-b660-8744e3e4b199","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":59,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"e082adae-4f4f-4352-9053-e7495af8fff5","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":59,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"98ad0742-77f4-483f-b655-62a8bbe0b3e5","block_type":"box","text":"purchase uncovered put options.","page_number":59,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"5151d970-4142-431b-8df3-931bb9e99d75","block_type":"box","text":"A Fund also may write (","page_number":59,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"1e633729-157c-4392-9e28-abd2d58a156b","block_type":"box","text":"i.e.","page_number":59,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"157da04a-fc3c-499b-b0dd-44d2ab7198f7","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":59,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"226bde14-5af5-4527-9a08-c5679aa097ae","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":59,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"45ec2e66-18c0-4461-9c4e-c7223bad8a20","block_type":"box","text":"A Fund also may write (","page_number":59,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"9bec6664-c83f-462e-8a3f-f374b3262029","block_type":"box","text":"i.e.","page_number":59,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"03b5a5cf-93e8-431c-af8c-d1de352b3d86","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":59,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"09857340-18ba-4907-9a24-f70aec1a2b1d","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":59,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"5cb48b00-c5e7-4ebb-930b-d0e12e23c747","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":59,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"29853ba8-8e4b-4ed7-935d-f6d5fed7e6ad","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":59,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"8cea5e74-3ff1-4e44-82da-98fe76749d92","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":59,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"4607ce86-8c66-406d-9a0d-5dc470e1128d","block_type":"box","text":"II-21","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ba85fabc-c886-43f3-9a17-038466f62f2b","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"02d831c8-85f8-4aab-a2cc-0f8a3fe96ede","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":60,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"3bc39dbf-3ccb-4a38-a6ef-5966ba8aa02d","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":60,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"6f47767d-4619-44eb-9fcd-0b21e3e32b13","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":60,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"0213c258-4a87-461a-a356-79e1d7368f14","block_type":"box","text":"the exercise price.","page_number":60,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"c6624ba1-eb5e-4c7f-b279-9fd498dc8674","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":60,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"a1513c10-f0a5-422a-b564-3ad3ae9d5d47","block_type":"box","text":"The following information relates","page_number":60,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"85e7a0d2-4672-441b-9d84-2889affbe6c7","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":60,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"77844a59-eb28-4042-a047-06513fa103dd","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":60,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"94d2a030-6246-4cfc-8105-1879fa2b4f24","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":60,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"5441f265-936b-4e36-8337-8a472107b3a3","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":60,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"67231f4f-0a81-40d9-9b98-a3bccaff7b15","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":60,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"878216f2-9785-4425-a8c4-dff1e1a734ed","block_type":"box","text":"market in order to maintain its “cover.”","page_number":60,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"41d6c425-3ebc-4cc6-bfe4-b7ecab4f828d","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":60,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"c5874785-e3e6-44e6-a05d-428291100159","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":60,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"b3f6104c-a298-4943-9f56-bab20f6f0ee6","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":60,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"20757e71-b3ff-4053-a6ff-b43fe2d9b8fd","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":60,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"8e4801bd-1932-4eee-8f89-6fe31793c8e1","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":60,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"58c1391d-eb9b-4ab9-8102-1cc7a759b206","block_type":"box","text":"and incur transaction costs.","page_number":60,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"3be50e60-3ccb-4d7a-bf50-04381665fe5a","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":60,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"aa4f9045-5ee4-4a88-adea-75104cd367ba","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":60,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"eaf46f58-f69a-4993-ae8e-277862664e4d","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":60,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"d8d193ee-4a7c-40be-8c7d-1603723c2e7b","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":60,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"18928104-6ed8-4e6b-96ca-185b64172f55","block_type":"box","text":"i.e.","page_number":60,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"ebea16a5-e9a5-49cf-a983-4557d1d7db60","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":60,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"86a5360f-4f6e-457d-862c-898c01708d12","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":60,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"0ebdb682-062b-4402-a2cc-226a2d606b53","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":60,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"4a6692ef-3181-443d-a658-a45c831c9a3b","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":60,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"267c607b-ea30-485a-8fca-57c1e66ca637","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":60,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"33c84698-fc50-42a9-9338-e44273f79d78","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":60,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"89129843-1684-417b-b6fc-c673c5eda0a3","block_type":"box","text":"required, to be cleared.","page_number":60,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"a9b78ba9-05ae-4d11-a193-000ed1ff29b8","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":60,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"d5486321-3ec0-48c4-8429-c9ab0fa6630c","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":60,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"e3b80904-10f5-4af1-a925-7a99638217c3","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":60,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"80fd1302-bee3-4332-8a7d-45d5ff9ac397","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":60,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"075e537d-26d9-4c6c-9092-4d2d2b819d97","block_type":"box","text":"Derivatives” above.","page_number":60,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"84c4c299-1454-47ac-a715-a7b959c3a8ee","block_type":"box","text":"FLEX Options.","page_number":60,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"360c309c-34f2-4596-a5e9-213a8e9ce0ba","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":60,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"adbba833-33bd-40f0-b98c-ade98f133a1c","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":60,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"d3b026d4-2d4b-401a-afd1-667b2ccaa312","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":60,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"ef047945-4877-480e-8cdb-f735289829fe","block_type":"box","text":"exercise prices, exercise styles (","page_number":60,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"7f934da3-efa9-48d8-baca-f8b56d9b9fe0","block_type":"box","text":"i.e.","page_number":60,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"01dce4ce-fe82-4eba-97fa-c26beef09ca8","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":60,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"9fda68e8-c543-451b-834a-b551f6647f04","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":60,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"eece3b35-eb24-422e-9c9a-b652d76b9426","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":60,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"2b4836df-72d2-4aeb-9ce1-652aabe973e2","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":60,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"71ac9d73-9706-4d28-91fe-c37f6e7accc8","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":60,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"a3cc3a8c-9d6d-4bb7-92e2-5bb086f89363","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":60,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"0097e746-8eb4-4982-a9a5-6be50f226be8","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":60,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"0c3230d9-802c-47bd-92be-cb14dcafc2d9","block_type":"box","text":"FLEX Option’s expiration date.","page_number":60,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"25190810-dd5a-41d5-92f1-b815651b65b4","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":60,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"f0212fd8-f039-4689-9b5f-87a0e779e592","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":60,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"e0f34594-c84f-4ac1-ae42-32f38daccc3a","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":60,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"d28c9cfb-1ca1-4675-873f-d5be9ae4852a","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":60,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"dd5e5080-6114-479b-b347-531826e04aa6","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":60,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"099cec7d-e525-4800-9b4f-f493589b4bb3","block_type":"box","text":"FLEX Options contracts.","page_number":60,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"262a576a-6edf-4493-ab74-fc666f459213","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":60,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"e994c3e1-b60d-40fd-92d0-5c9ab4709060","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":60,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"481d9877-8782-4001-80ab-4e36f22cedba","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":60,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"254dea42-ff55-4e6f-9ee1-bab4df242c0d","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":60,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"56945e5e-abb9-45b9-8fa0-74744261b8c4","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":60,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"616264eb-0ac1-4516-aaf7-e22605c59fe5","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":60,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"ba9a8d3a-00d4-468f-840b-470e2bf77a6e","block_type":"box","text":"II-22","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a25a3679-5c9a-4b79-a02b-d1dff96f3935","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3e2b6872-74d4-4b12-b1ac-4bea5f82ae62","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":61,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"b0a27d4c-4ce4-4c1c-8c09-196a338519db","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":61,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"5d002ce8-3d23-4e87-809f-006efcc3476d","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":61,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"3ca6df5e-416e-49b7-81df-690b700b7055","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":61,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"0e3ad925-1fb2-42cd-a739-bbd9e0de91d0","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":61,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"2d49b1d9-ffad-4335-a459-7fbf8cb5f53b","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":61,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"323582d6-c94e-4309-a27b-28537c09b098","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":61,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"ddb9e973-1aa3-41f7-8510-39a002fdfc29","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":61,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"2e5c3ad7-36a9-45df-96c9-f79da270a927","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":61,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"52902035-33db-4be4-a44b-0ab845474443","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":61,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"11483fe8-1401-4bff-9a4d-2be3c3c2f532","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":61,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"024fd112-b4c1-4458-8d16-f5f8f02631a3","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":61,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"0f3b18a8-012f-4354-be61-bbe70b3b4505","block_type":"box","text":"expire unexercised have no value.","page_number":61,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"1145e7f3-5baf-44eb-bb17-d1486eacdcc3","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":61,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"2a7a15df-ed43-481c-9600-dbcf97276352","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":61,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"4b0d316e-4a07-475a-95cb-622e6de2514a","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":61,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"3624c333-c258-4c40-87c5-2e8283123576","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":61,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"392a66d9-22a3-4f5e-aca9-ff431ccde4a6","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":61,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"a2ad628b-d9dc-483c-be2a-8354c74a6589","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":61,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"02bc3b90-8a07-4697-8e27-351406d57b4b","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":61,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"26b4115c-b2e2-404f-a1cd-7eaad0bcfa7a","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":61,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"2b7a3a84-2f4a-4577-b34c-ffef4bb16bf2","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":61,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"e4f0423f-46b6-498b-bc04-cc0a122b7574","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":61,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"4fa97d96-4eb7-4e26-9ed5-10796c33e3e7","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":61,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"e5dad3b5-5067-4179-a24b-3ea8ae9835fb","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":61,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"0e243f53-a28f-4e8b-8511-5cea35b84441","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":61,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"4e8074c5-c488-46e6-8481-43720716945e","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":61,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"4d01cb3a-2c18-4507-ab04-a50d315f345a","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":61,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"08a465fe-6c5c-4eee-9117-aef78e544f92","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":61,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"9e90665c-031d-46de-b405-e55fefba2ff9","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":61,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"86a3926f-d680-4891-8d6c-9eac522f4ca2","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":61,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"f49d90d7-b9c9-4a9a-a223-1a2747416e63","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":61,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"3d52f499-e9d5-4274-b349-ce36862503c0","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":61,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"80584af3-ed4e-480c-8621-e1282725c1a4","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":61,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"b6f25a27-4f0b-47aa-b7d8-5a0544f23714","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":61,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"c06a3cf3-d86c-4af2-9da9-ac18c009836a","block_type":"box","text":"Foreign Exchange Transactions.","page_number":61,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"a7509666-b24f-46f9-80fb-7c885cbe68ff","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":61,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"36630cdb-0772-47e7-8f0f-69f5c14a23bf","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":61,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"04e9ec26-f086-4d01-82e6-6f4e8255ab8a","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":61,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"410a8139-716c-43a2-b366-8513e3b58a37","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":61,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"15f593d6-689d-446a-999d-4aaa5f1c94c2","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":61,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"6cb79dc1-bc13-4eb3-a635-03345d50a304","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":61,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"6da3bd79-18fd-4fc0-849f-f327f4b42684","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":61,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"035449d0-c25f-496a-bc4a-7b2a4d7891e9","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":61,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"3c946b27-642d-40db-ac41-16c497c142aa","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":61,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"f187adaf-b93c-4d21-84a7-c9afe16b6625","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":61,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"63ec14fb-beff-497c-be33-9f84c60d2b99","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":61,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"2bef6a4e-a02c-4c25-b392-06169e11e93a","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":61,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"c7c1104f-075d-4a8c-8068-c3c1c630446f","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":61,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"697a6847-de9b-4308-b0ed-f43e14027408","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":61,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"398ae2af-29ac-4126-956b-357d8d92f39c","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":61,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"f8c61114-552a-401a-90ea-fe612db722bb","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":61,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"222e52ec-5fac-4223-9fd5-6de149529053","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":61,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"df9335ca-95d2-43b5-9ac4-56b184f9e8f2","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":61,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"6c987617-61dd-4001-b187-dbb1e7c91ca8","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":61,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"f0d43369-9eb2-43a7-9a7d-49131639ae31","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":61,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"a6dfcb47-a12e-4b49-aadc-c2f50a2eaf0a","block_type":"box","text":"II-23","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4366ceef-f62a-4077-bef3-59b3764c45db","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c9188b2e-d6fd-44f2-aa73-432ffd1fc801","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":62,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"8261ab36-c915-4430-a20c-8940a866419d","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":62,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"402fcf59-7a7e-4224-b1f3-c49be07fa7ab","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":62,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"379f59e8-374b-46bf-b20f-2b98e5fcbdc9","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":62,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"f2a506f3-87cb-4800-b650-5c3bdb57beb6","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":62,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"8a0971a5-4769-4382-812c-610c6ed740f8","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":62,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"142b2d57-d931-4247-b352-c4a33caa024e","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":62,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"4cd9df1b-c991-4701-9bb1-65a31e025971","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":62,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"7d4171dc-0137-4786-9317-a7b63eab2c3c","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":62,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"053cdd00-0952-4482-a5c8-a79d8a35db76","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":62,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"a3925f6e-dd77-4256-ba80-08f5f2a90bd2","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":62,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"df82a194-83b4-4382-b3b7-a79d9058f180","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":62,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"609bb056-ddfa-4f17-a144-68e505e45c54","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":62,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"8bce41bf-4248-4ced-ab9a-5ec790d14d1d","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":62,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"961d7cc5-10d6-48df-8290-f798a4f5aeef","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":62,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"b0950ea8-d34a-4d13-ba1e-02e53fdd7201","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":62,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"f8bac2c9-8aa9-46c2-94d0-fb4daca8ab50","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":62,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"fd95e108-7b46-444b-867e-ccb0b67ec62d","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":62,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"f564c3fa-8e68-40a0-a61a-d8c41e051639","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":62,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"b69fd45a-0d21-424d-92ac-7c81a5f3c139","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":62,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"279c7869-dba8-4f9d-bde5-fd7f82ad63c4","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":62,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"bc4f250a-7ea1-4252-a284-493b8c2173e2","block_type":"box","text":"involved.","page_number":62,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"93aed8c0-b1d8-4b82-b29c-e8d6da29c9cb","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":62,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"c59566db-c574-466f-823b-dabeea26eb4a","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":62,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"f72a543c-c06d-43be-9b8f-e9f4e8a145fb","block_type":"box","text":"denominated in such currency.","page_number":62,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"556abfdd-0990-4a3a-9357-391bc68991c4","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":62,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"03a3f5ce-9c1b-4d1e-8ede-5df9d3dfb331","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":62,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"ddc9afc8-d129-4226-88a4-9f6747cf5740","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":62,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"99114898-2647-4ecd-b298-e397ca67969c","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":62,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"a912c34f-888b-4707-8133-bf2256872b75","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":62,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"dcae59ca-40aa-4580-871f-825a2f568ce6","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":62,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"65a2f8bc-da31-49ec-be3b-3a51e343dbc5","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":62,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"81817bb5-0a1f-40d8-a0b1-e88ee721acd9","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":62,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"2b83a938-6871-4502-a95f-238ab5459be9","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":62,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"f4f374be-2305-4dd5-b4f8-636d7102b9ea","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":62,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"c1ef4462-4641-4a03-b0f4-69ad1a566385","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":62,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"63ddd0db-9c3b-4ef0-989d-de88bb73a94b","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":62,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"1f4b83e1-82ec-4810-afd6-f0206ee6b8c9","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":62,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"4032f1ff-3a53-472f-879e-c46d94149974","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":62,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"be3e372b-416b-40d7-addb-2c0a4d76dded","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":62,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"81c00ab2-40e7-4c40-afa8-470f62cf61bf","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":62,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"1ba18ec5-0424-49e8-acfd-bce7cc893bf8","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":62,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"4b78d948-a57c-43b3-a1de-93acfc806dfa","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":62,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"2facd6e0-59d9-4b43-acfa-648ef24c6589","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":62,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"5fba9a09-0ad4-4401-8541-13f29c9fdb29","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":62,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"e5e75b0e-fdcc-4537-a5f3-0cb3161b62a9","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":62,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"5b0672ac-88e9-4b10-b062-ff1802ff608b","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":62,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"6b1c71d0-37bb-450c-8ae9-ac1b04e8f0f7","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":62,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"6f29ece2-b3b3-4571-8828-f144d6411e6e","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":62,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"1145b192-cd48-4471-8e28-4c16b7228b29","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":62,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"2ac43747-723f-43c5-8b7d-86f1c9c36f09","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":62,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"2288894a-0ce6-40f4-9801-92952e24b245","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":62,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"a833ed31-e53d-460d-9725-7c023b7edc81","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":62,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"a4f03120-62af-4d4b-928b-4ac24a9ee452","block_type":"box","text":"have por tfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":62,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"4340d68f-a4d0-4afa-b0b6-e71db58ef661","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":62,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"4a7fa197-c8d8-4e1c-8fbf-29fbf26d64e4","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":62,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"b40ba0c7-9cbc-45a2-acd0-cbe80ee0ed9e","block_type":"box","text":"II-24","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e4854ef7-155c-4d58-a196-594f6fbe5695","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"86cf956d-b42f-4961-bf0c-9cfd1fc39553","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":63,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"2a5838b1-c814-4a6c-b105-bc1d7e3da2a9","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":63,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"07fc7aa0-44e7-4422-9794-baf2ad68c908","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":63,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"5cf8847f-4540-432e-ac44-e03eeb436484","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":63,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"ae88eba9-e258-4be5-9a42-64daebd603e8","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":63,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"9ebb07c2-a5bd-45be-bd80-988e09a89b0d","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":63,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"6a5cfabd-ea1a-4542-8983-376f8bfc18e7","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":63,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"01776997-f130-41d3-a60c-b5c2f0dbb30d","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":63,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"e095edc0-b9ce-4f2e-84a6-2dbb73f69581","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":63,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"05ec8cb6-591a-4076-a5d6-b4bee432a3a5","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":63,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"2fe9e3ab-6207-432d-864b-ae472aa777b3","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":63,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"b4b7948a-a7a0-4548-9157-a7cd4a1b9a45","block_type":"box","text":"traded.","page_number":63,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"80a4ab29-c4d9-4fbf-9442-e9dec286aa5f","block_type":"box","text":"Currency Futures.","page_number":63,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"405e477d-83c5-4c31-b2d1-e85cd6d9bf52","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":63,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"1e26be12-ef47-4331-9ff4-31464f4d5431","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":63,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"6ab049b0-ecfb-4a68-860f-2614432d7ce0","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":63,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"a3ecd70a-aab2-4f34-9a77-a36cc4a2f193","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":63,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"b9723991-55fe-431d-9ae6-7dd5f8a47fe5","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":63,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"012ce4cf-4feb-4a11-9534-dca9ddb00d02","block_type":"box","text":"Currency Options.","page_number":63,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"8223cc93-1e3a-4a32-bca9-3d95a07df62d","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":63,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"5be7fbc3-0075-46ae-b666-b8edde10898e","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":63,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"a73e4988-1df9-404c-9581-5b09af357cc8","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":63,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"c88f1c2a-3b1c-444d-9cea-8308a4bfc617","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":63,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"2e8d05f8-4665-448c-a432-25a272f51cac","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":63,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"43abde21-a1e5-412f-922e-96586d089e26","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":63,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"4a45058d-1389-4edf-8ec2-35dc3a15e569","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":63,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"2164f748-c380-41e4-9d1e-445d9e931ad8","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":63,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"ad9d196b-fca3-4ebb-9a1a-2f7f48fb552c","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":63,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"b7abe762-ff1a-4beb-a58c-f82bbfaf61e8","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":63,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"899c99e8-f0a1-4cd9-94dc-314ca63f5ba8","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":63,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"a63e963d-6be3-4f56-b6d2-50b91642998b","block_type":"box","text":"Currency Swaps.","page_number":63,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"330a747c-8416-426b-86de-576c3e5aeb77","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":63,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"37bf013f-897b-46af-b77c-cb402de1dfa5","block_type":"box","text":"hedge por tfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":63,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"a88144fb-7686-48c7-8a5b-a29a8bb7463b","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":63,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"91648b2b-6af2-4d8b-8386-052e0023b6e5","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":63,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"98db7504-dce0-4796-8550-94c656d3041f","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":63,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"c24c4930-a53b-4f38-9e16-07e715959b11","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":63,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"cdae079a-4053-40c4-bc97-5ce4349671ce","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":63,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"4e6cdef5-36dd-4c84-b369-999905d80c95","block_type":"box","text":"Distressed Securities.","page_number":63,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"cdbe245b-9a87-4f41-85a2-8763ca55a431","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":63,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"b1f824da-d2c5-40d9-a700-2bda9afdc15f","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":63,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"98eac6f4-d31e-4428-9d00-a7c5f2daa8e1","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":63,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"87f38987-d5ad-4a8d-b963-b3c889f4e355","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":63,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"c9a1ff4f-86e8-44fb-8967-6d95b43e2ff4","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":63,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"752bb5c3-9598-446d-8b9e-fffbd1561bbe","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":63,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"00353ce7-4798-452c-991b-d8270beefc76","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":63,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"4939ce0b-d40d-49bc-a0ba-b1df9206a462","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":63,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"37a4cf75-83fc-4967-95f2-445ccba469ef","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":63,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"fe860a9b-2196-4f76-86d2-830d555996c9","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":63,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"f900ee3c-9cd8-4952-ade2-f5de727686a3","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":63,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"70201bd2-f0ce-49e8-9f81-146c8dee25fe","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":63,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"fc7c63da-2ecf-439e-9a69-c1749e9309f7","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":63,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"7738bc89-f0b5-451c-9f9d-b1b15eaa995f","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":63,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"3556bcd4-f9aa-4aff-95ad-a7ad2b049b35","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":63,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"9dd8924d-5912-47cb-94fd-c6e9fe3050c3","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":63,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"076032c5-447c-4310-bc91-8403c01b0e39","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":63,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"11aeeba6-1416-49d6-b943-eadb44d816fd","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":63,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"efa6318d-5a1b-42d0-8d4c-0510200f83a6","block_type":"box","text":"satisfied (","page_number":63,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"df3c9e36-205d-4854-b3bc-0678c297862e","block_type":"box","text":"e.g.","page_number":63,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"b276de5a-3293-436b-bf68-2f797cfb3044","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":63,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"f0ce6290-30c0-4ecb-834f-993a806d1d00","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":63,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"cedf8c25-5e47-40c0-9dad-6c0ad259813e","block_type":"box","text":"II-25","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5fbc53eb-36b2-4aad-a854-b1c0aeab412b","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"16679654-a0f6-4c54-9256-a8cc4ea66995","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":64,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"c3c17e0c-bf29-4c5b-a526-5de2edac39f4","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":64,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"cb770c37-4cff-44dc-bfcd-58860fd56682","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":64,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"0a98c798-1da6-46a6-ae13-5d6c7e785de8","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":64,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"9234917f-6fff-4e8d-9276-49d02513502a","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":64,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"e8002698-58f4-45ed-988c-fa74c257789d","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":64,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"9a8c1b2f-ae3e-4fd8-87cc-4496ea79edd5","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":64,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"e65b685b-21a4-4418-a01d-ace410bc1266","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":64,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"4213d522-e3da-4f63-b7ff-abe863a212e0","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":64,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"9f9b21de-446f-40b8-86f7-06f3c2b4e4e3","block_type":"box","text":"affairs.","page_number":64,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"42d8bc7f-dea3-40dc-9684-359302d4a1c2","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":64,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"e72f136b-a22f-4fcc-bb84-5e328d24ed2a","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":64,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"383588e5-3b4f-4f51-b15d-349b19644f2f","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":64,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"e41cea59-56cc-4bcb-8eec-d35b8ef2c594","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":64,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"cac12775-d7cd-45ec-a1f9-fbe86bed0de4","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":64,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"b7d84d0b-b9b9-48ac-943a-e2e9e31172ab","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":64,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"5beb5d37-aacc-49a9-a812-ae0e178374a5","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":64,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"90e61ce6-a817-41eb-a23a-ffc5f0f3e82f","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":64,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"6951cc49-a1be-41ae-bf5c-bc16c41a2381","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":64,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"77645983-6c16-4944-b56c-c765e19840a6","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":64,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"9ca32349-38f2-4787-b16e-50a6a7da94bf","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":64,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"a50c304f-d029-40c2-90f7-10f97d98d1a1","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term per formance,","page_number":64,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"b0b0133f-8aae-43d9-ac4f-31b718572146","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":64,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"45118bd1-1405-4d95-bd78-4dab59b65a0a","block_type":"box","text":"Equity Securities.","page_number":64,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"ca5ccf47-fd95-4091-b494-38d1b976893c","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":64,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"69219043-54ad-48de-9016-47444c6c1545","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":64,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"3221efe8-b014-4f3c-bed4-892e64a4e359","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":64,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"8658a297-8975-4211-9245-aebb50e98fb6","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":64,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"1ef65fef-e507-4a55-94a6-3879419e2b10","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":64,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"1e3324ab-6f2e-4b26-8a46-bceb8110c773","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":64,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"09c470ed-4db1-4e53-8587-45a8251d0b24","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":64,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"5ad7235d-6d44-4992-935b-401d92ebbcad","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":64,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"4a446fc6-c84f-408b-8aa2-01723d1bad62","block_type":"box","text":"shor tages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":64,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"0f8b9927-9c4d-4654-a713-e6e75588ca34","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":64,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"d0b6395d-dcda-4ba0-8ef4-52625572e43e","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":64,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"179e7458-30e1-499c-8de3-9d0d644f550b","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":64,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"dd47ba7d-01a3-447d-979a-ce5cf962cf7a","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":64,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"adac226f-ab3a-47bd-93b9-2c66697fb103","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":64,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"751e1c1d-d44a-4a38-a8af-6d751be1b854","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":64,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"f0216325-d7da-4635-b9b5-f0ebda012a2a","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":64,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"209a88af-42d5-4274-b9d0-064d31a8b246","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":64,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"e5f6d8e2-bac6-4c4d-88cc-7ae9a7a74c48","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":64,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"eaa05569-e96d-4f9e-91d1-42fdb0695ada","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":64,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"14e0d0bf-d647-4d64-b8db-f9a1a4f65fb4","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":64,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"89353fe0-faf9-40b5-a896-353ee4124075","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":64,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"6615f65c-6a11-4ad1-a911-176b23bc9130","block_type":"box","text":"initial public offering.","page_number":64,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"89ca1952-5102-4742-b34d-340bf25efd4e","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":64,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"7acb1bd0-f76b-4d40-ba63-a197280688f0","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":64,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"9080c82e-1f25-4c7e-a456-895a2a922921","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":64,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"130e2f1c-e4eb-4b7f-aac5-40ec683e30e2","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":64,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"1aa7a7bd-8487-41ac-8f88-41ddf4c4e7b0","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":64,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"cc8e5c8e-3713-42a0-9d9f-12849e5c2afd","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":64,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"aa5be959-53b5-40a9-98a1-8407e15c9454","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":64,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"a7a9e3ff-900f-46ae-aec1-ac0e8e6a9c0d","block_type":"box","text":"more established companies.","page_number":64,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"fd7efa5a-022c-4faa-8852-da5d98a83fa6","block_type":"box","text":"II-26","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"10fff66d-e4fd-4f78-b784-5b218606642a","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8d49832e-b335-4894-9228-05a6c53b679a","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":65,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"6d5e4d54-3d21-4676-8fbc-36ad4e811a56","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":65,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"26abef17-1079-44f0-ab69-98ffdc3acede","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":65,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"04b10a32-ff5e-4b9a-98a7-ef97cc797399","block_type":"box","text":"below.","page_number":65,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"d13e99ba-e054-49c3-ab45-ef240df75f54","block_type":"box","text":"Real Estate-Related Securities.","page_number":65,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"5491715e-cf1a-4c5f-8c85-7fdb88af7b12","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":65,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"ccf319e7-00dc-4d54-b167-a4c885480377","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":65,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"e0994642-1ee4-4647-ace5-86e43c4386c7","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":65,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"a0bb2fc5-93b2-41a2-8e99-ce6dae044272","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":65,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"3d50a500-cdef-4d2d-a6ef-5664d63c3fc2","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":65,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"bf868f04-e3ae-4076-96fa-0f59b9c132e0","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":65,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"3b6abf59-7b90-4d04-a58c-e3e7dfff5e37","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":65,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"8f9f023f-c550-43e5-a761-89dfc19e887b","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":65,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"9f286724-ae69-48b1-8809-712f41ec6755","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":65,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"b239f91a-f3d9-45bd-bf11-a3874323189c","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":65,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"4d0ec513-0b88-4190-9e61-82f3d868b67a","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":65,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"f60aeb39-0a8c-4be9-a14c-c380a96b2381","block_type":"box","text":"interest rates. 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The securities","page_number":65,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"5fa6e2e8-430a-45c8-8187-a50a60ee0325","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":65,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"1d60ec4a-bb80-46bd-856a-dcb1753eab45","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":65,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"f502e7ad-753e-4f48-b31d-11b6b24681bc","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":65,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"da64f28a-fa5e-4615-b4f1-18b915d6c4af","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":65,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"15c24b31-5fbd-4697-8f6f-07191cbdb657","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":65,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"233d626e-2045-497c-84e0-9deca931d532","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":65,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"f5971993-a2b1-499d-a98e-80fc08adea89","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":65,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"335f4121-a8d5-40f3-b84e-c0ffdea41b8a","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":65,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"c2f02298-29f3-4e46-bc68-e1f467b5c3b6","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":65,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"b6fa7961-6551-4217-9bf5-e93a30ae8e4f","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":65,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"2028b14e-d292-49ab-a6f7-e5ba57c982e8","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":65,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"d79917a8-4f5c-4b3c-97f6-ad8a42b72667","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":65,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"09c8e200-f4a5-40ce-b5b7-b47b80791dad","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":65,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"add315fc-c718-41bd-89cd-f8ab42b53629","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":65,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"2c72d4a3-35e7-4c96-8da0-ce9789aa413c","block_type":"box","text":"Fund management believes that relatively small companies may have the oppor tunity to develop into significant","page_number":65,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"5e903a65-e628-4c05-a161-5e2451a0188f","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":65,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"885b2730-3ba4-46af-8e48-3bf999f9ab95","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":65,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"12751ce8-0a47-4b0f-bd4d-3e48f3959802","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":65,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"53fa9f2e-8678-43b3-808b-5c207b8465d9","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":65,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"737f6512-bc83-4182-85f5-e1e1a57870b6","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":65,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"f5d74fd3-beea-4e40-bdc7-7bea4d3f509e","block_type":"box","text":"cycles.","page_number":65,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"257055e6-2a34-4031-a851-022d7432d050","block_type":"box","text":"Tracking Stocks","page_number":65,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"403dfcb1-f056-4472-8e68-c41bf1355e68","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":65,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"9cf6a2ad-240f-43af-a39a-acc011495cc7","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":65,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"3f13d498-b8cb-4650-8ccd-6e78528f9981","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":65,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"5c58dda8-a985-4b2d-b454-898d260d21c0","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":65,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"5a7adc47-cdf7-4430-ba24-a0f0b935d642","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":65,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"a47ddde4-73d5-4ade-8ff0-9cad2562acd6","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":65,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"745a46a5-0803-4a8c-bdd2-1ac76fc67e1f","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":65,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"b6adcb7f-ab09-452e-a94f-a028b442124e","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":65,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"6e871607-f466-44a0-873e-a0180fcaa563","block_type":"box","text":"II-27","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3a08419b-f914-43a7-b180-2895755f23ec","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"204c167a-78e5-4abd-8bcf-79f76962a748","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":66,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"b7efd731-4478-4d05-a7b2-82074ac165d3","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":66,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"5255d5fb-d4dd-4844-8393-f52ce756c3d0","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":66,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"4252159f-685d-40e6-833a-d6e789274978","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":66,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"b79e8c48-aa0e-4831-8bc5-4ec9db336213","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":66,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"57ec0037-9abf-44e8-b7e5-7bb6c9dd8221","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":66,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"6722784e-4a6f-4d87-9d23-74e72122fe6a","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":66,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"b63be887-972b-4a0c-ace4-c5a32f583283","block_type":"box","text":"per formance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":66,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"002da502-1647-4b02-8644-e6234bf7523d","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":66,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"58add56c-f963-4ffb-bf87-922399d29a13","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":66,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"aaa3b35c-0edc-48d1-9cc1-1f08a787bacb","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":66,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"e285f258-fb66-4807-bb61-35a869894f46","block_type":"box","text":"ETN.","page_number":66,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"0ef5b7ef-6424-45f5-b97f-08fccb7dd84f","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":66,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"59499d2f-0c84-4033-9d67-b58ba6a90b95","block_type":"box","text":"ETNs also incur cer tain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":66,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"8d235511-b3db-498c-af27-61ab9acca642","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":66,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"80aa0558-152b-426a-acb7-73327a33eaee","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":66,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"d3ca8650-0a50-4be2-b83f-572d7bbbc197","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":66,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"52fac0d8-f871-40c6-be09-8e652a35efe4","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":66,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"ce5b6828-53f6-4f6c-bc6d-da7cbfefb99b","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":66,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"65159480-715f-4df5-944c-2657d403fcc8","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":66,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"7e5eb2ab-aa75-45c8-a562-89131908ecb8","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":66,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"acd8d1b3-19cf-4776-83d8-df355b501a12","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":66,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"e5700f00-2687-4469-9037-f724110ac17a","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":66,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"fc8a585c-0281-4170-84f1-6cfc80fbea0e","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":66,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"386284ac-d89f-4be0-b948-c717be3f0ed7","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":66,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"8dcc8a5c-7e52-4231-87ac-82f0b0f6da17","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":66,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"984a943d-f630-40f7-98e4-38783a259bb0","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":66,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"89674a4d-a3f1-439d-abad-a9e2cbdfe268","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":66,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"5782a2d2-11c5-460e-b1db-d5e11e9136fe","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":66,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"a2020e5f-1510-42a6-a80b-3eda7d1c9763","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":66,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"9bf7e44d-b3e8-4fc6-a0f1-5802e1764f15","block_type":"box","text":"Foreign Investments.","page_number":66,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"bddeb539-24f4-45a4-83e0-a9c85c9472c9","block_type":"box","text":"Foreign Investment Risks.","page_number":66,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"d61a3567-89c1-4062-8439-e285e0b7691c","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":66,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"e079324d-f659-46f5-af95-5f0a8d83b9a0","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":66,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"4bac20f9-6468-473a-9b74-51835a305767","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":66,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"f1763a04-9348-498e-a509-12fa3871ca88","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":66,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"65bfe23d-d708-4661-aaa2-252ce5eccde1","block_type":"box","text":"Securities issued by cer tain companies organized outside the United States may not be deemed to be foreign","page_number":66,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"e2f0d2eb-b237-4392-93aa-f24f64288af7","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":66,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"5e1c7341-f60c-4448-ba4b-44d388a55e01","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":66,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"04a41a03-0648-4da6-87c0-bb2bf883b912","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":66,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"bb509115-68f7-4937-a16b-a81d9367d093","block_type":"box","text":"benchmark index.","page_number":66,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"f449a51b-7826-4c7b-9969-0e3046f4e4a1","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":66,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"d52ff6bc-ce00-4977-86e1-894a270e20bb","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":66,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"e8cd729a-9ede-49a7-898b-67b1883ade6e","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":66,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"90c7f06f-1b87-4e66-932b-57dffa578651","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":66,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"7daf06ef-1343-4366-b747-e4101bb7ef30","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":66,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"0d62603f-1870-4930-9548-ae6a82ff0095","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":66,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"be3a81b6-e4f5-464d-89f1-d23433dc2d44","block_type":"box","text":"securities and zero-coupon securities.","page_number":66,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"0188222e-a959-48dd-93e7-5aa1f1e1d2c3","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":66,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"80ffb1b6-2239-4268-9cab-a978290b7550","block_type":"box","text":"taxes.","page_number":66,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"c00be964-0916-4d88-ab9e-31467c78b74e","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":66,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"63804b5a-51aa-47bd-b0d2-aed4a2dc1c39","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":66,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"f19339f6-e4b6-4cd9-9b6b-7421ffc086eb","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":66,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"cc15119c-e6ec-43bd-a644-344928d5ea03","block_type":"box","text":"II-28","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2ea6d266-f821-43a1-bdfb-a2d19178c145","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8ec538a2-6a5f-41e4-93c8-ce6f6742c01c","block_type":"box","text":"underlying security (","page_number":67,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"bf8dd085-3265-42d5-8823-7c9daa87bde9","block_type":"box","text":"i.e.","page_number":67,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"e21f6353-4005-4261-978b-ea4b81e35978","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":67,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"60ffd8a9-4188-4c39-be3d-5adb4250acd6","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":67,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"47223327-7535-4800-8f93-b79bd0b4ec24","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":67,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"264ae257-b738-48d7-939d-604898f7654c","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":67,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"4351a45e-f9a5-44cf-bf87-0497c9178963","block_type":"box","text":"Foreign Market Risk.","page_number":67,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"11ad720a-7117-48f8-a1f0-24efbbbc2bbe","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":67,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"47a95a22-4ef5-4e79-87d2-ebc17f1e901e","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":67,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"e4bd0d0d-d859-44eb-925f-2eb5a24e6cd8","block_type":"box","text":"always) per formed differently from securities traded in the United States. However, such investments often involve","page_number":67,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"ca83e8cf-8d15-477f-bce8-f49a0fd26ead","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":67,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"e7f0d8a4-0e49-42ff-a0e1-005086abbdc0","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":67,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"f90a6e82-c406-4cf3-af6f-312c241bb0b6","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":67,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"7adf40e8-6ecf-4dd9-9b65-2e824856bef0","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":67,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"dca44f7c-9685-461c-8783-584ddabf8a73","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":67,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"ba71f74b-c45b-4a8f-8344-9850d2e7c40d","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":67,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"aec3b386-7724-40c9-8ea0-8f3788f605b6","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":67,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"2f04b6f2-39e8-4ac4-a757-4ac2aa9c650b","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":67,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"4977ddec-1cd3-476a-a632-5b9079db9a8e","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":67,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"83c4d9e4-739d-4c74-90d6-05e035c76181","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":67,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"55b72f40-ef45-4f93-8427-e665fb3f783a","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":67,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"0a3b875c-258b-41f5-9fa3-c304b9063818","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":67,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"348ffa3c-e6f1-46ba-806e-b322a30e5561","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":67,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"8f1c94e3-700a-490b-91ee-527eda5d68cd","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":67,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"3fff5380-81e0-4e35-8b2f-733ecb160f87","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":67,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"87d3c063-13a4-4197-8a8b-4a09ebbe85e1","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":67,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"8abcdf58-f93d-4198-99cf-a198558d16f7","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":67,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"b913ccc2-f54e-4e7f-961e-1e26f7a33e71","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":67,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"813a29f8-acd8-48aa-acba-32bacb9d4b53","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":67,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"0aa6893b-23f8-4a65-8cd3-924e688b38c0","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":67,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"4d754961-952a-4c50-bdb0-c28b4cc1a697","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":67,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"637981a8-0da4-49bb-924c-23212a677c29","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":67,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"9582a9d3-9199-4047-bfef-426caf020220","block_type":"box","text":"Fund’s operations.","page_number":67,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"5b6e7a73-b000-4b1a-bf06-d544657afa7d","block_type":"box","text":"Foreign Economy Risk.","page_number":67,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"b8693305-7d8c-4309-890f-ee3c5a6b247a","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":67,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"5c2ed7cf-bc70-47dc-8ca7-88ee537a20d5","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":67,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"142aef22-42cc-43fd-b147-b347de265356","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":67,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"99116d27-0fd9-4751-86be-0b7123160567","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":67,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"ac282766-6d28-4dde-88c1-d7d6b66a4553","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":67,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"c36927c0-bbe9-4291-b6a1-3eeac345777b","block_type":"box","text":"measures.","page_number":67,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"aede9516-a507-4502-8d38-f57d13e77c37","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":67,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"cae97287-a9ff-486a-a4be-b7ddf719ad67","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":67,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"8d60df0f-9c4d-4768-8158-1b29bc250183","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":67,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"8e24004d-af3b-4fdc-8fc2-14ea286f708c","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":67,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"79f973cb-5a44-42e8-8450-9f225c5524f1","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":67,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"8a73861a-1e72-4256-be23-0e374cfd0e2e","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":67,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"21672de0-561c-45db-9ec5-3c67ea6b33fb","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":67,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"3f399f28-5e56-4f59-a507-b1e296867ab2","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":67,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"ea618bf4-468d-4897-bbc9-0f9c49f29fba","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":67,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"3b9c1d36-d383-46bf-9ed5-c6050370b0fb","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":67,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"a177b7e8-da83-49f4-8f0e-5d289a35bcdb","block_type":"box","text":"United States or abroad.","page_number":67,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"8f79b7cd-914b-4be2-bdfc-e4e9b9d0c47c","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":67,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"780d0782-4f18-4444-9c93-3b1a043af36a","block_type":"box","text":"Many foreign governments supervise and","page_number":67,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"4538f32d-2d28-4f52-9288-21db39b3d86e","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":67,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"2003e520-0335-4463-9138-7fb2d83cf069","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":67,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"8d6b9ad1-e103-42a8-814c-3be9eb142972","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":67,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"a097ea1b-fc08-4fa6-b7a3-7549c462ef05","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":67,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"4a4c228b-53da-4f48-8a91-441e96a87fea","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":67,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"c4827242-820f-420b-b126-b7f30ee1c1e5","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":67,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"f08de52e-1f13-4f26-8039-d0e5f6b930d0","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":67,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"90042019-b669-4bee-8e67-61b1a722ca2e","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":67,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"14d384af-4326-42b2-aed2-0be671b45b59","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":67,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"20012855-a5ed-405d-886a-74b77e6b0a10","block_type":"box","text":"II-29","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"75f656a1-a08f-4694-9217-36208f5df9cb","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"888fd80e-a848-4e99-a957-4ad3790135a7","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":68,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"91dfa29e-5a7f-4727-bfc0-16601b251fbc","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":68,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"db5a0ce5-4e76-4482-96f2-d0ecef070149","block_type":"box","text":"investments.","page_number":68,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"155a0973-99d0-4f7b-a2c2-021aecc1c605","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":68,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"077a5a49-c0be-407b-a97c-f19edd7355fa","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":68,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"f75c27b3-c3d4-450d-ac98-2d37d4b314e2","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":68,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"dd59b455-24d9-4d1d-86d0-083eddb3b668","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":68,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"9a4abdd3-ca39-4cf2-8640-4f2da6c0d4ca","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":68,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"20df59b7-bd0a-4a42-8b2c-0662c6d8e307","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":68,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"fcb68b20-ad3d-4830-9870-f42539651920","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":68,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"e4424a85-b8d1-40ea-b674-c0f385f850e2","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":68,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"c890bbfa-389b-479b-bbcf-b790779e6249","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":68,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"10e32a0c-951b-49a9-b4fe-c0529e0a4404","block_type":"box","text":"States.","page_number":68,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"d59faa20-0851-4477-bbfb-23d1c6e23793","block_type":"box","text":"Publicly Available Information.","page_number":68,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"e15241d7-cc2e-4a97-983a-5640fc3565c4","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":68,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"f40618bc-4a4e-4801-a93c-59ec5104b767","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":68,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"3bee9384-1d05-4f06-aec1-203049f77011","block_type":"box","text":"accounting and financial repor ting requirements applicable to issuers in the United States. While the volume of","page_number":68,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"33304291-181b-49d5-a29b-47411cdce6f3","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":68,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"eaab62b1-c697-4a8b-ae80-3528186337d4","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":68,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"87d6894b-cd21-482e-83a7-dd382811935d","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":68,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"c4197011-74b0-449e-8293-274460d487a2","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":68,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"45ff0247-0e86-4585-9102-3c29ffd9216a","block_type":"box","text":"United States.","page_number":68,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"5b64812c-920c-41c8-af89-65603a6534a7","block_type":"box","text":"Settlement Risk.","page_number":68,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"cc2370f7-379e-43f2-9619-07d274fcce79","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":68,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"0ec5b0d4-e3a2-4c84-81c8-719a3458fcfd","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":68,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"24a39db6-b85b-4aee-b3d5-986703d345c9","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":68,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"a8b2c49a-6041-4a10-843b-daf68f1b4e3c","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":68,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"84e151b3-4efe-4a9c-90a6-768f73a368d0","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":68,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"3f721f47-6aed-48fb-8ce4-5d2a02900778","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":68,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"692b0cea-13cf-443e-bc69-10af89bb0503","block_type":"box","text":"Settlements in cer tain foreign countries at times have not kept pace with the number of securities transactions;","page_number":68,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"6beab596-9b5d-46fe-b3f1-1e4da5051521","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":68,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"a8e3d9c6-558e-4d47-aaa1-3529455a904f","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":68,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"0f435811-a342-4121-bd9f-0ba1c6c882c6","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":68,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"90848364-5f2b-4a9d-910d-2ffa080cf2e6","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":68,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"5d972f0a-87f6-4e9d-bc10-7a9c30f125b7","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":68,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"20985a53-3edc-4758-9312-777a9db0cb85","block_type":"box","text":"Because of uncer tainties in the operation of settlement systems in individual markets, competing claims may","page_number":68,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"47431183-8b67-4405-b77a-6de634d17d56","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":68,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"a5f2c6b2-f3fb-4ce4-9fc6-ed6557c6e945","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":68,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"bdb10152-f71a-4e7a-993e-3f1d72a69df6","block_type":"box","text":"Sovereign Debt.","page_number":68,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"37d95c86-d3f4-4fe1-9984-c07582af0f31","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":68,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"faffc190-1b77-4670-94ab-7778ed3ffd7c","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":68,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"a0be9207-aaac-4ec8-ac61-7daeb85e78c0","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":68,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"99046626-0778-44c7-984e-bc74b7b04869","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":68,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"3fc5631c-4b52-4601-9ddb-7fec38cc6f05","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":68,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"33a177bc-01b8-43be-8c31-fb9248644713","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":68,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"2e110b0b-ef0f-42f3-9f99-fe961ab0c5de","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":68,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"783552b0-7a2c-4d62-93d6-cf66d6f6395f","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":68,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"27f62a9b-425b-4293-ad19-7ae4cc6f54c1","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":68,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"8f876ccf-2d74-440a-a729-dc5dc759d172","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":68,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"2cea53cd-5cd1-463d-9b64-93fae78ba3ba","block_type":"box","text":"economic per formance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":68,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"8859369f-e96a-49d4-8b40-d52aa2ee72ed","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":68,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"4a79836b-da81-4891-94a3-11f11dc4619c","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":68,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"2030d5bd-4d2d-4ba9-81da-230b5cb6db0a","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":68,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"b9b7adc1-b287-4de8-b4d3-ada79183f39e","block_type":"box","text":"debt.","page_number":68,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"4bde560b-8522-4801-8ba4-8b7280671f73","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":68,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"160222e3-a9d2-4e18-aabe-0d2f2652af13","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":68,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"c8ab4fc1-06d7-4590-81fe-db624fa931b8","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":68,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"0ecae200-94cb-4990-9796-58c3e3aa94ea","block_type":"box","text":"II-30","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d35a4bab-5a9f-4839-9c24-d8902d2593d5","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"88053bf3-c527-45d7-b31f-17ec6f8ae859","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":69,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"8697dbca-b812-4b44-8507-11f4ccfb44ed","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":69,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"481ab4d2-2b5e-4393-9e89-735f29db455c","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":69,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"5c64f10d-0a81-4ab2-b884-b73abceb4d73","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":69,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"4bb60508-85e0-497b-bde6-b4c6e03c2d82","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":69,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"dc572c28-2aa7-41ee-8b4d-2b34b5b83cbf","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":69,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"42ae81a0-f890-47cd-86a7-cfcf7c67bf98","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":69,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"88987045-2dda-475d-a1ca-c5432f36e026","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":69,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"d523bb81-5519-4861-ac72-4b92b5a579a9","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":69,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"5d835e74-d8a4-42d6-9f4c-28fd609cc409","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":69,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"0754344c-071d-4a03-bdc9-991645f4606d","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":69,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"d724791a-3da3-4a69-9d6f-701742c59e18","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":69,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"31db97b5-0556-4f01-9358-f61354aca5e4","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":69,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"b11f39ce-c2ab-48e6-9fe2-68359ffe1d6e","block_type":"box","text":"in the Fund’s net asset value.","page_number":69,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"06b34f41-c59c-4bb3-bb0b-44c1bde9d624","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":69,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"13305f0d-0728-43b3-aeba-621534d3b7e3","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":69,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"bd4855c8-e3a4-4834-8b09-ad916db3d984","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":69,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"3dfade3d-6794-4418-808b-97e27a4b8fdd","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":69,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"6b1eab5e-dc5d-4828-8b8d-3123bb16acc6","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":69,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"68ca5f31-06e4-4e2e-be6f-5a21d2e3af65","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":69,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"5b4ed820-a93b-4a79-9aa4-7ce8579f29a3","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":69,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"8b651848-f173-4a5b-84ac-3db6014439ac","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":69,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"f509b377-61f8-4ad2-a969-4ee9b008450b","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":69,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"8ffc7f46-ea6b-4db0-a11c-e2f4e942cc86","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":69,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"c085f4b4-44ad-4a5b-ad6b-3f20b0b0bc6d","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":69,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"87a56076-be07-45d2-8ce6-6afa809c69c7","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":69,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"ceb19aa4-2050-4a4a-9357-2291d8e6eaaf","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":69,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"09dfe967-f5ba-415a-809b-5a9aa7faffe7","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":69,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"253080f6-4cf5-4e60-b3c2-a4e06308b273","block_type":"box","text":"Fund may invest.","page_number":69,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"d0e852eb-636d-480e-af65-a6d46fbc5c02","block_type":"box","text":"Funding Agreements.","page_number":69,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"ff3179dd-90f3-4936-bc46-5ecb00b5188c","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":69,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"072cde14-7d9c-4307-988e-e776a261a769","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":69,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"d1c5beef-6738-44b0-8687-776bdab25811","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":69,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"ceacf027-c720-4b5f-bc2c-4d1ba9abaf63","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":69,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"3b758e37-faba-4f02-848c-e84bf644b028","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":69,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"128d6c8b-dfba-4386-9d5d-7c0c1f15f88c","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":69,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"d895a082-b021-42d8-a75b-6c84e36291c6","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":69,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"8ba56945-830b-4f74-94fb-863358e3ea48","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":69,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"52735c27-dfdb-4784-b3c0-b3eaa6b0f5f1","block_type":"box","text":"Guarantees.","page_number":69,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"d3ab2f9f-5364-4781-95c2-21480b958847","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":69,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"92b092d9-836d-4b52-92d4-8c52d2092f6b","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":69,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"910d61f4-bef3-4546-b5fc-80db1e6b03f9","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":69,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"84b4ae4f-ec14-434f-847a-1b4bad99c571","block_type":"box","text":"Illiquid Investments.","page_number":69,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"087e71a5-2f60-4fe7-9920-74540459c5f7","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":69,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"8aea9765-f9b3-4717-b81d-f3ac1edd6a2f","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":69,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"43183ec4-8e2d-4f87-9ee9-fabf92e6c9c1","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":69,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"eb312c9f-bd7f-4602-983a-c868618a718d","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":69,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"2ca3699e-9dc6-4f09-9baa-104494ad1660","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":69,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"4522f5e5-f217-473f-bed5-c0261c1ce548","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":69,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"76495b91-9c0f-4891-b813-e4814026a1f8","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":69,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"66f94e98-28b0-4a13-954d-cf50d48b4651","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":69,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"bd466017-e395-4cbd-adad-42c5bab899c1","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":69,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"2aeae72c-f1f8-47db-8156-9fa07e179def","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":69,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"2a7c605a-76b8-4365-8c10-786a362003fd","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":69,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"074399c6-5597-4423-8981-719b5492c8be","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":69,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"a3f57ce1-1475-461a-aa3b-fe8fb412ded2","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":69,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"45df78aa-58ab-4d9b-b63b-06f0614db746","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":69,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"3decea07-76c0-4f27-b312-2b6737a845d5","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":69,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"decdf129-1d34-47cd-9b49-903be22c117e","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":69,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"8b6f6b12-aaff-402d-9e58-1a48172b9b34","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":69,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"36975e88-8050-42e3-abd5-a222e32908e2","block_type":"box","text":"II-31","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c42a77bf-0a23-4a9f-828a-6c8e837067e3","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":69,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"33881c8c-45e9-43c0-9eb6-46297267a1ef","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":70,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"f80ba93e-79d7-4270-a0b1-d5d288ed9622","block_type":"box","text":"shor t-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":70,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"83d157e1-93c0-4878-9f7e-3f549f9f56da","block_type":"box","text":"Index Funds.","page_number":70,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"bc1f5fba-1c7a-455a-891e-5ddcc00159bd","block_type":"box","text":"Cash Flows; Expenses.","page_number":70,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"6242e994-96b6-4b19-8f1d-04296ac77d00","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":70,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"4341c65b-7f24-4631-a2b2-dbdc6fb28436","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":70,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"ed005b0a-63f4-4d1d-a886-c5a26e6cc167","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":70,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"8143d2e8-15b3-4b37-a49b-37a3b7df6206","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":70,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"aba59975-3265-448e-b8d4-4ff214618a9b","block_type":"box","text":"the investment per formance of each index is a hypothetical number which does not take into account brokerage","page_number":70,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"684855cb-aea1-418f-899b-3943c1660d9f","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":70,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"85cb4ce0-4521-443b-95be-74c82699cabd","block_type":"box","text":"(","page_number":70,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"af20d556-7050-44ed-b9b5-164d3b4da152","block_type":"box","text":"e.g.","page_number":70,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"ae9f468f-6b22-4193-9a93-017d039e7b21","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":70,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"7ffc8bb7-7c90-4d9e-9134-2c29d3244efc","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":70,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"14835a34-b19a-4725-9193-381285552f18","block_type":"box","text":"par ticular security as an investment.","page_number":70,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"1fc6a339-ae0c-43e0-a227-05c0d32ec97e","block_type":"box","text":"Tracking Error Risk","page_number":70,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"f38e350c-9315-44b7-88ca-1032df0ddbb7","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":70,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"dd8ac990-69cb-4941-b02d-f812ddd582d4","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":70,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"1bd8bee5-0004-4424-96d0-2407be8e0fe9","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":70,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"8b22224f-8c38-4374-b5b0-7c2554f36da3","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":70,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"ed3703fe-dd78-4b8a-aee9-83f56d625bc5","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":70,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"8b2afa9b-e158-4b05-a3c4-4da3e124e768","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":70,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"b82b47f9-7b62-4385-b752-e3b7da7ed939","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":70,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"b2862821-40cc-43af-b276-cb2f1957dc7f","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":70,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"85a1b858-fada-4669-8d09-74f4e7c4b5ec","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":70,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"eef935ea-c578-4755-9298-c9e484edbd14","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":70,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"ee3ff128-a7be-440d-b4ef-65cca69a6503","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":70,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"059e4321-3dd3-46f3-9fb8-efbc4dab60f4","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":70,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"9ec00d89-77bf-45bc-9277-3ec74faa8e25","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":70,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"8465dbda-3f34-45b1-91e6-73f24930186d","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":70,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"3b0fa159-054f-47dd-b582-0197bbfc0369","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":70,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"4e14143d-74e8-490f-8277-d3ff6060bfab","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":70,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"c53d729f-bd96-4cdf-91dc-dfe538d6240b","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":70,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"fbb58c32-1171-4566-a059-1a766b7e2799","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":70,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"06c6b5f0-83b6-4f28-8d7e-103c183fd996","block_type":"box","text":"the rebalancing of its index. If the securities continue to be included in the index, the Manager may underweight or","page_number":70,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"5035c894-62d1-480a-9cdf-bc354cb8e5fb","block_type":"box","text":"exclude such securities from a Fund’s por tfolio and, if it does so, such Fund will be subject to increased tracking","page_number":70,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"5bea2fb0-678a-41a5-ac29-6e5a1f953023","block_type":"box","text":"error due to the divergence in the securities included in its por tfolio from its underlying index. The application of the","page_number":70,"box":{"x":69,"y":559,"width":825,"height":11}},{"id":"f44fd940-7394-4eb0-b57f-e87c2afc7ab6","block_type":"box","text":"abovementioned analysis and screening to a Fund and its Underlying Index is in the sole discretion of the Manager","page_number":70,"box":{"x":69,"y":574,"width":818,"height":11}},{"id":"51fd39d0-fd4a-40f7-b367-28643f6a86ff","block_type":"box","text":"and its affiliates (without any guarantees). The analysis and screening may not exclude any or all high risk securities","page_number":70,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"f1f82b94-0e98-4ec0-8765-fbb535f440d2","block_type":"box","text":"from an Underlying Index or a Fund’s por tfolio, and the inclusion of such securities will result in an adverse impact to","page_number":70,"box":{"x":68,"y":604,"width":835,"height":11}},{"id":"71b70050-a030-46b6-94ca-b077e0feb589","block_type":"box","text":"the Fund’s net asset value if one or more such securities declines in value.","page_number":70,"box":{"x":68,"y":619,"width":536,"height":9}},{"id":"3731f1d4-ede0-436d-8e59-cf68156cd86c","block_type":"box","text":"S&P 500®","page_number":70,"box":{"x":102,"y":642,"width":64,"height":9}},{"id":"db95af42-32aa-4386-a80d-86ec6cf23903","block_type":"box","text":"0®","page_number":70,"box":{"x":166,"y":642,"width":6,"height":5}},{"id":"2633cee6-9c16-4a3b-81d4-ad073860d95b","block_type":"box","text":"Index (“S&P 500”).","page_number":70,"box":{"x":178,"y":642,"width":134,"height":11}},{"id":"c653c181-2275-4b72-b15d-e5ffde3c7154","block_type":"box","text":"“Standard & Poor’s","page_number":70,"box":{"x":320,"y":642,"width":136,"height":9}},{"id":"fde23c77-a028-43b0-84b3-8864273c1acb","block_type":"box","text":"®","page_number":70,"box":{"x":457,"y":642,"width":6,"height":5}},{"id":"6b538bb4-88f5-435d-87c1-c5b1653a8735","block_type":"box","text":",” “S&P","page_number":70,"box":{"x":465,"y":642,"width":53,"height":10}},{"id":"268a4d36-b9ed-472c-bd1d-b737aee4f7b7","block_type":"box","text":"®","page_number":70,"box":{"x":518,"y":642,"width":6,"height":5}},{"id":"cda9b798-23bb-4510-87bd-58faa0e89b4a","block_type":"box","text":",” “S&P 500","page_number":70,"box":{"x":526,"y":642,"width":87,"height":10}},{"id":"598ee643-49e2-4cf2-a538-5ff04271730f","block_type":"box","text":"®","page_number":70,"box":{"x":614,"y":642,"width":6,"height":5}},{"id":"5cddcca5-9b32-4812-bd61-ce2a4b281334","block_type":"box","text":",” “Standard & Poor’s 500,” and “500”","page_number":70,"box":{"x":621,"y":642,"width":280,"height":10}},{"id":"0d468818-da61-4deb-b2b8-c340fbfc507a","block_type":"box","text":"are trademarks of S&P Global Inc. and have been licensed for use by cer tain mutual funds sponsored and advised by","page_number":70,"box":{"x":69,"y":657,"width":837,"height":11}},{"id":"ffe9a940-339f-4f73-9fdc-2dc27586d7ba","block_type":"box","text":"BlackRock or its affiliates (“BlackRock Funds”). No Fund is sponsored, endorsed, sold or promoted by S&P, a division","page_number":70,"box":{"x":70,"y":672,"width":836,"height":11}},{"id":"caada69f-b498-485e-abb3-dac6c3fbede8","block_type":"box","text":"of S&P Global Inc. S&P makes no representation regarding the advisability of investing in any Fund. S&P makes no","page_number":70,"box":{"x":69,"y":687,"width":818,"height":11}},{"id":"3b964a6a-2262-4766-89be-e28ee6849a69","block_type":"box","text":"representation or warranty, express or implied, to the owners of shares of a Fund or any member of the public","page_number":70,"box":{"x":69,"y":702,"width":783,"height":11}},{"id":"f6fe74af-18a8-4cdf-86d8-88e0b96d46e9","block_type":"box","text":"regarding the advisability of investing in securities generally or in a Fund par ticularly or the ability of the S&P 500 to","page_number":70,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"40d992f7-e7d1-4e00-905f-b928300cc57d","block_type":"box","text":"track general stock market per formance. S&P’s only relationship to cer tain Funds is the licensing of cer tain","page_number":70,"box":{"x":68,"y":732,"width":769,"height":12}},{"id":"4151601e-21dd-4be7-b540-b6e92ebfad92","block_type":"box","text":"trademarks and trade names of S&P and of the S&P 500 which is determined, composed and calculated by S&P","page_number":70,"box":{"x":68,"y":748,"width":804,"height":11}},{"id":"5f29664b-c5be-4464-8af6-df4e32011e64","block_type":"box","text":"without regard to the Funds. S&P has no obligation to take the needs of a Fund or the owners of shares of a Fund","page_number":70,"box":{"x":68,"y":763,"width":811,"height":11}},{"id":"0b97b7f7-580e-4761-8c68-13c14b1f6c7f","block_type":"box","text":"into consideration in determining, composing or calculating the S&P 500. 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A Fund may also invest in so-called “inverse floating obligations”","page_number":72,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"802ad590-e5d3-44c8-b8e8-9e832ca5f495","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":72,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"d2fc8ab8-a30f-41cf-9dea-74f41fe89314","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":72,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"c2eabbde-b54a-460d-b674-c8c6833301bd","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":72,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"f415dca9-7f4c-4c86-9a71-b214b8759bc7","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":72,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"ade77285-883a-4ed0-8885-5b52b68cfb52","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":72,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"e8796e21-1da8-4f24-8b2b-d42a00f8082a","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":72,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"386018df-1063-45b3-ba83-06fc34abee30","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":72,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"f4ab9d6a-6ad1-4bac-a019-0d25ac2fc545","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":72,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"be6ee347-abf4-4888-be2e-172b501bebc5","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":72,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"416b8667-e12d-45b7-ab57-b3f976804b8c","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":72,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"2846f199-31f4-41f6-bb61-694b6f0504b6","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":72,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"4dcdf1c8-5775-460d-ba7f-43810158b0aa","block_type":"box","text":"por tfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":72,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"6630e928-f52e-4c62-8c6a-2ca33ffb31dc","block_type":"box","text":"por tfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":72,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"4d312a9c-c888-4a2f-961e-34b1df0946a2","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":72,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"10e24d29-4661-400b-b36a-c8a6216bb596","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":72,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"32bca8b8-43b6-4e94-86e8-df06e72cb349","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":72,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"64c5c448-4b1f-49fd-b643-3582facc66a1","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":72,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"ad64a836-1173-43b7-8736-077e58d99a17","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":72,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"dd3bb4f4-4cbd-4c87-9fcd-0ab2e0ab2557","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":72,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"d8697921-2c72-4649-bd06-5713ffd8c6df","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":72,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"2bacb298-26a5-44f7-a191-975d195e84d3","block_type":"box","text":"when shor t-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":72,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"10d5a7ad-4757-4b14-a884-b2afb1bf1e8e","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":72,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"a22d9470-034d-413e-b4f6-a81ac495e798","block_type":"box","text":"Inflation Risk.","page_number":72,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"9bfe461c-3445-45f6-923f-b15cb87fee87","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":72,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"061db3db-f6f6-4311-a41a-3c0c73284972","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":72,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"46079ebc-c31b-4567-bddc-9af33256c6c4","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":72,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"ef9e3780-1bc1-463b-91ae-d153a6b9884a","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":72,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"0d6343c7-e760-44e4-be6c-0a998e8ffef2","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":72,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"aae4cbf0-4284-4201-8644-bf8f10e59494","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":72,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"6063d6b2-73d1-404c-947b-f1bc75211c9f","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":72,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"8cf1a3a5-36e3-48b7-a89a-d5a192e16520","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":72,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"bc978cab-6244-4d20-8832-90ede70fd573","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":72,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"768ccacc-3a8f-4caf-9ee9-74bf56afc7b6","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":72,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"d9360932-b163-48ed-aa96-c3a6bc35d687","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":72,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"b24e5825-06ad-495c-800b-12807c207faf","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":72,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"02945386-2e3f-44e8-9349-2cd36f80b4c0","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":72,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"7bec1b0b-cfa7-4a5c-9bb4-749f95ba4950","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":72,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"0def776b-bfb9-4e5b-8777-b1b3f1a25387","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":72,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"64931ea2-df67-45ee-8388-4bc81d62749c","block_type":"box","text":"II-34","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f1f43970-c4b7-42d0-9b27-b6c3c23f7150","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1489b93c-036b-48c5-8874-7a4e5b9db599","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":73,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"9a6a0cbb-781f-4644-9d1c-c0aa91c2b3e5","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":73,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"4ff02639-53c9-437f-a4ec-f17fb252b686","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":73,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"38188390-c072-47ac-a74e-902e50cefdc0","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":73,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"7e2abc24-d1b1-4029-9500-7e6d95294cd0","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":73,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"474b7cbc-8afb-40ff-b119-024b5455f376","block_type":"box","text":"be available for very limited periods.","page_number":73,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"f1deb15c-cdf0-40e1-8d48-4a3c930096fb","block_type":"box","text":"Investment in Emerging Markets.","page_number":73,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"213e2ab9-6ec9-433e-a892-e9027632d384","block_type":"box","text":"General.","page_number":73,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"c5d17cc8-5c7b-4604-912f-f1ce313148fe","block_type":"box","text":"Cer tain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":73,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"31c7fbaa-2b6e-4f7a-8a44-8ede3e7512cc","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":73,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"fd6dca04-937a-4e49-a9da-f21bff288948","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":73,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"43778554-5925-4993-a1cf-48c4907b8fde","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":73,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"ea84d9f2-113e-4d6e-9e1b-b7d47bdf86bb","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":73,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"2f1d1354-0dd6-47d7-9965-9e605f4cdc9b","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":73,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"6f6e2d8d-7650-407e-924d-4daa67d1f97f","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":73,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"27794615-fa0c-45fa-aa2b-695ce1d943cd","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":73,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"6389b0da-10f4-4dea-a0be-cd8529fed8bf","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":73,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"e7b6a7be-803d-46d3-b1b9-67926f09f0f0","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":73,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"adad469e-2cdd-4a4e-a41b-627d480af4aa","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":73,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"44a71a1c-27b7-425d-9bc5-8e674fff2997","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":73,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"2a4bcee3-40c7-484b-a79e-737baa18e9ee","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":73,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"622a309b-66da-40be-82e4-b983be027ef7","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":73,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"5e86525e-a8f2-4df3-aee1-1b0ad092eeac","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":73,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"00714014-5c24-40bf-a925-b31bda62f374","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":73,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"19ecd369-bba1-4842-845c-2c4dca893b5f","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":73,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"0c72df72-af0e-4a49-95dd-1af697e23b75","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":73,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"ec018287-f4f8-4aaa-8c70-b78086fd56c5","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":73,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"caaf8ce9-a616-436d-a40d-bc11dbdd10aa","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":73,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"ce44be8c-0135-4dd0-9554-ccde2003845e","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":73,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"c71d412b-5351-4619-8271-a4f2822afae1","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":73,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"3009ad51-55f3-4594-816b-2cbc02783775","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":73,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"3353be7e-d935-4337-b3a3-bfcae6b70ada","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":73,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"34d0eae1-82ac-4025-8ee0-039506c95135","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":73,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"fe9acc79-86d2-4b14-bd37-8ac658716c89","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":73,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"4909445f-c620-4364-9254-342f91b4217c","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":73,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"9b4111ae-61ee-414e-a64f-3c06b143d7e6","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":73,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"5849804a-57aa-41d1-87c3-188ad1c91177","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":73,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"8717d129-233e-40e8-8e50-be2b412fe73e","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":73,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"218653be-9a6a-440c-b418-66977737b62d","block_type":"box","text":"volatile than investments in more established markets.","page_number":73,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"83786ed9-0fb1-422d-99d3-200b0a272254","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":73,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"4e9ad9c9-224f-4e21-9035-af6778db4130","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":73,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"6f8aea52-60c0-4c66-8a84-3050ad32ae0c","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":73,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"2a318ccd-1268-4a8d-bd88-b62e6d5a5f82","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":73,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"1f67d5d7-4bbe-4d85-af20-abd250398d71","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":73,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"37fabf41-d5b5-4e69-a305-16db89f650db","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":73,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"6fdda66a-96ea-4562-848a-a1dd4d101447","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":73,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"cbf5b04b-9724-43d9-97b3-de79348fe1c9","block_type":"box","text":"acquisition or disposal of securities.","page_number":73,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"8f0bf9d7-5444-4f31-be5a-448a647c182f","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":73,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"6a472f3e-d6b1-4fdc-abaa-389c0a7426da","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":73,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"9a070b27-2965-4fbf-ba4c-a2895583d9fb","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":73,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"d81d4b27-40f9-4726-8131-e8059f0726e3","block_type":"box","text":"negligence, undue influence being exer ted by the issuer or refusal to recognize ownership exists in some emerging","page_number":73,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"a32084b1-c054-424e-8787-93deffb995c7","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":73,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"ee5fb13a-d0ac-4f64-a7d7-488fb8c7542d","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":73,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"cf6ebb4a-6f14-43b7-8f5e-b137969b93a0","block_type":"box","text":"II-35","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ad7f31d5-3a07-4295-9aa3-899881706ad0","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"05cb0ff5-6ad9-4036-a947-830cd1430a4e","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":74,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"67a0c880-8402-4c53-ba51-f67702fc34c6","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":74,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"5fb19c4e-b6fb-4315-b41c-819510cde8b1","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":74,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"e8bac1fa-63ac-4152-8fcc-1c923b251bb3","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":74,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"3c0d1049-295e-4ecc-b8f9-a208918fb29e","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":74,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"cc8d45e4-af36-4ba2-9d6f-b55cfe5f502f","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":74,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"c130db26-fba2-467b-8c60-9efd88b44596","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":74,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"ee38b57b-d72d-47f8-8f32-a587b14a6482","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":74,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"a0a0c30c-69ed-4897-bb4f-4c77477e97ad","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":74,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"cf615981-2812-4914-81e8-35638b501fd2","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":74,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"f5e325c6-ad27-4f7c-b58e-91865616a249","block_type":"box","text":"additional or specific risks. Cer tain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":74,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"85a9c7b5-dcc7-4176-8071-c206a1ce1f06","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":74,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"8232b39d-b50f-472e-8dc9-6bc7eef0dc0d","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":74,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"bb1d72e6-da53-4746-96bd-6a53e99d9739","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":74,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"564f0c8a-4e95-4698-a0d8-4753e2158da3","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":74,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"d69a26b4-23a9-4e8c-83b7-7b096723039a","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":74,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"e9887b09-4304-4658-8d35-2bb6af4b88bd","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":74,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"c9a16867-7fe4-43d0-93e4-7047222eb7fc","block_type":"box","text":"in potentially fewer investment oppor tunities for a Fund and may have an adverse impact on the investment","page_number":74,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"d728bbfb-f692-402d-96f9-056806444984","block_type":"box","text":"per formance of the Fund.","page_number":74,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"4a30eb1e-5dfe-46f8-a776-89183099bfe1","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":74,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"6eca84f6-8585-4d31-9edb-d57d1b01c789","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":74,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"5271d41e-7633-49a5-ab1d-63f0fd803327","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":74,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"3b8be5cf-b31c-49ea-a58d-7101a914a29e","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":74,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"d833ea2e-dc29-48ad-b57f-c460298cce88","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":74,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"df706b7a-ccdb-454e-91ca-31b682222f28","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":74,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"5e5a9dc7-58de-4dbb-bdbc-e707165b6b88","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":74,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"05cc0f25-ac15-4b0b-a6cf-dc55168d16d2","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":74,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"f8d7c31a-e7d0-42d9-8330-df91e818952f","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":74,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"e5a9368d-7189-490d-8897-f80570c44265","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":74,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"e8ec41de-850e-44aa-8d2b-8b92ae64cb52","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":74,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"641918f9-22aa-4fd7-9f60-eb30b9c78971","block_type":"box","text":"affected by a variety of factors.","page_number":74,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"ae96b9cc-53e8-4731-8891-319d5907f147","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":74,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"6575dbad-6f48-4f97-a343-a6768f72ef1c","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":74,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"f4f1958a-b15e-4bd2-a3bd-86a02cb3b89a","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":74,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"590d2eca-b001-440e-89b8-638447093da3","block_type":"box","text":"clear in cer tain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":74,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"e475f14b-ac7a-4d2b-8bd1-63958eb987dd","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":74,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"ca727115-4277-47f4-bd3c-18dc5bd048f5","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":74,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"a41a3cf7-1bb4-4ef7-afbc-0e1312d0be24","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":74,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"0ff24c64-8d65-4eed-9b43-ab00ce7f0082","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":74,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"532a48b2-0742-41f1-96d2-d4a64459240b","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":74,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"0e0a5c4c-5fcc-4a09-8e97-1272ea08affa","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":74,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"6987aebd-12d7-4ac1-a706-437b6e62ffea","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":74,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"c9ac3d85-f4e2-40bb-97fe-a589f969ce62","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":74,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"5b02b7e7-fa1e-4cdc-b2ac-62acb4d6f564","block_type":"box","text":"nations.","page_number":74,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"7609be34-d60d-4085-957d-25ec0a4ade9e","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":74,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"19f9a7bb-4a28-4655-9da9-153585595713","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":74,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"c1a72c8b-5fe9-477e-b087-1cf8c60c369a","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":74,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"f3d69096-7238-4695-842b-7a0e24ec145b","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":74,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"4ca9d53e-bfd7-416a-93bc-3c7d5aa2b65c","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":74,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"c19de61f-6194-4b03-9e66-d236dd641885","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":74,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"f6dfc3b3-5e32-488a-8e09-50dd0df8ea27","block_type":"box","text":"market Asia-Pacific companies.","page_number":74,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"4f4a75f5-c100-433e-b1fd-591fcb614e26","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":74,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"ed720e94-0128-461d-9967-6d7d2ad5f3b3","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":74,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"b8260acd-5e53-42c5-b33a-132d08964494","block_type":"box","text":"services for such securities outside such countries.","page_number":74,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"e9948a40-c9c8-42fb-ad56-89179ceea32e","block_type":"box","text":"II-36","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"eea49be9-d23e-42cc-9e13-366b97b23652","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"27a30cac-c12b-4e29-bd16-1c93aee888bf","block_type":"box","text":"Cer tain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":75,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"99354985-8d61-46b2-9b26-9bfa59a3409e","block_type":"box","text":"to commercial banks and foreign governments.","page_number":75,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"3e5506fd-6898-421f-8dfe-39ee384e7039","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":75,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"9cc00bf1-4a15-4d19-8e86-897144fbd508","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":75,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"4c739bed-731c-428c-a5cb-11c22f2455bf","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":75,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"70b15811-71f8-4d38-a6dd-7781bc7f4295","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":75,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"f19a2fdc-337a-4b68-8d37-7e48eeb3d3d3","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":75,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"9f7191f2-fafa-4824-9ed6-05dc5aa37e0d","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":75,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"3f2a5a97-89a0-4d2f-bfff-6a38da7523a7","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":75,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"c045a684-2a9b-47a0-a50b-336b19571939","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":75,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"be8bbf05-bcc0-4df8-933e-443774671f83","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":75,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"a5516645-1cb2-47c4-9ce2-ee261b93b2c3","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":75,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"3411f8fc-49a6-4393-be44-f25461442c5d","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":75,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"e79b179f-d695-4d3a-93b3-73e703a08400","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":75,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"7b71420d-5ccd-4555-9dba-22908d51c227","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":75,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"a0a5cdb7-2127-4e68-97bd-72e4b4d964a9","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":75,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"6e09629a-540c-44cc-8d9c-f921681e17dd","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":75,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"99b0c659-d618-4f54-8822-5bdc277feaba","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":75,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"26765a46-7d74-4963-bc3a-9f0397a925cc","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":75,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"a3307556-1621-4deb-8beb-919759ab3f1c","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":75,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"f7bb6794-fbf8-4c1a-8e35-44e784169621","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":75,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"decc44c2-e0eb-4e64-a5ec-5d3adaa5f3ba","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":75,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"9149f979-4161-48e3-8857-b535ff15aa2c","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":75,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"a9ce8e6f-de81-42db-a74e-0cc0c5c3bd50","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":75,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"14b9b48d-2487-410b-bef4-6f4e34b42e08","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":75,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"d1e25e76-80cd-48a9-be15-57f3e6363cd0","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":75,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"a4965aee-5231-4155-b2ca-549514ff8f44","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":75,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"6b80bd72-6b12-47f7-bebe-3f9b4f7582f8","block_type":"box","text":"investment at that time.","page_number":75,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"8954083b-7061-4d4a-819d-4f0a93b9e773","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":75,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"d79d48c7-f919-444f-bf21-28bf410c4f4d","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":75,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"0343571e-463e-43b1-9959-0aa6ab8a8707","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":75,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"e9fa4871-7d70-473e-8124-a35647463dd0","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":75,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"7455fc79-e1ef-460c-81d6-6ad3ad663638","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":75,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"c1a03c7f-40e7-42d2-b3e2-9acec0271282","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":75,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"a27159f2-4b00-49c2-b93d-d379a5848b4c","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":75,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"33449c51-b1c8-42a5-a454-be002b58fa63","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":75,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"dc941b02-0f80-4717-9894-3f118a655cff","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":75,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"fab1e0c0-4843-44ae-9794-0c450dc247cc","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":75,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"b7e512ed-35b8-4ff0-9ad9-761cdf629338","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":75,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"1eaddc25-6476-41c8-b9f0-00e1f63f6295","block_type":"box","text":"government).","page_number":75,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"c284c62b-22b0-405e-b948-03100354a47b","block_type":"box","text":"In cer tain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":75,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"7770fc35-e72c-44f8-99ae-e42e29f7a1d3","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":75,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"948588d7-1e0a-45c8-8e3a-f0b94a5a96e1","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":75,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"c14990d0-d4fb-4329-8708-aa10c8cf7232","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":75,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"f4bbd7f1-ec6c-474a-965c-f4f3e474eb37","block_type":"box","text":"foreign banks and other financial institutions.","page_number":75,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"76be9f8e-66f9-4117-9ee3-3bb623abdd3b","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":75,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"4896ee12-91e9-430f-9692-8c691c400baf","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":75,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"31cfdd3a-66cb-4ed2-9d71-bf7f9d515c8d","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":75,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"5f2251b2-9be0-4507-bbc3-f58b1c09ca2c","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":75,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"a4630f8b-2a2d-4b8b-908a-515f9742478d","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":75,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"3c657a62-350a-462d-8342-2c3319b7b82d","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":75,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"0a62076f-c66b-4dd5-88cc-db909ed67ed8","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":75,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"9279a7cd-5045-45a1-a697-12658685a4d2","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":75,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"9bd440cf-fd36-4d24-8fe8-d3e95fd71005","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":75,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"de5186c7-a0d2-42fb-b407-b1d57dd30cf0","block_type":"box","text":"II-37","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2f3a50c3-4cfd-4a8d-88f9-2ca9db4b6e89","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":75,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a0d018e2-230f-4a35-8dd7-5ce7b8f4ace1","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":76,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"3f76bd37-36c2-4568-bcfb-271d6fadde52","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":76,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"5b4eb661-b640-4529-a8bf-0be142f085b5","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":76,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"8af75a82-6cb8-4b17-b4a5-cc6c77176c36","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":76,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"1bdf366a-e0f5-496b-89a1-f5ac14f76a4b","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":76,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"8d906487-2d35-4585-a15a-1e04b533a3df","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":76,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"66f044e4-e918-4ed7-b0d9-a1bfd283089a","block_type":"box","text":"foreign securities.","page_number":76,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"2732eb26-d360-4799-aeeb-85f94c16efce","block_type":"box","text":"Risks of Investments in Russia.","page_number":76,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"e056782d-0256-4814-975f-70df033b5388","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":76,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"73379762-7e83-4ace-bfe1-af3a783413cd","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":76,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"1e86a900-72aa-4dad-92b9-545ed3259e20","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":76,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"daf1cdca-655a-467c-9a95-ea261c0b9867","block_type":"box","text":"and a substantial por tion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":76,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"86efc95d-aedf-40aa-9a54-fd9f9287aafd","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":76,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"f548dc9e-9d4d-4e66-8121-c317fc5425a0","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":76,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"98216e6c-4dfb-4858-9cf7-ac8a76fe5c66","block_type":"box","text":"developed markets.","page_number":76,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"477ef6c6-8a08-417d-bd8a-1a6f88f8bee0","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":76,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"affda020-1326-474b-9960-f437d56bbdaf","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":76,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"4bdf45c4-8000-45e8-b12b-d37d2cff831a","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":76,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"8d3f5920-d530-4f56-b0fc-0f5a758c80f4","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":76,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"e0f3187f-8264-4eb7-b2da-6fe5e793f3cb","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":76,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"04a9c3d8-b265-42b2-8253-9efe4ce72ffd","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":76,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"98dfb2d4-a463-40a5-93cc-debba9749f6f","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":76,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"7ed7b21c-9361-410a-ba9f-a3a4b1810d73","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":76,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"f18b25c2-71d5-4f68-9b0e-c104ae4ffb46","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":76,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"40cf18ea-4c0f-40cd-9664-36144a2f28c4","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":76,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"6d301a24-70ad-4c00-b33f-32ad7d9819ee","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":76,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"a87116fe-4f85-40d3-ba82-5255f3fa8456","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":76,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"5d39aa42-3897-4882-9f96-1e9514766348","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":76,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"a7a46955-5ab9-41d4-95a0-2a21ed3bad68","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":76,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"9e1ab1c3-3cca-477a-a045-79e8b7dae347","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":76,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"07521047-5768-4234-aaf1-daaeb4221dfc","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":76,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"6fbac20b-5ccd-4004-90c6-e9c3a9189296","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":76,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"4ca746d8-a319-456c-83a9-8bf622acf0ef","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":76,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"b228c35b-318a-4d79-966e-25596560509b","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":76,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"e38ee0c1-f2c8-46c4-aeed-da30354f8b49","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":76,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"2c83c68e-296c-41ed-b913-bd1a2f8128d5","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":76,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"c00f0862-1b73-4555-a25f-5d588368a83a","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":76,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"c95d6ad0-bc41-49e3-ab75-7962355e7eb4","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":76,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"8515c239-0aa0-404e-99d4-03aa210a8b5a","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":76,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"8bb9703b-3013-42cf-b8ad-61f9517af61c","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":76,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"aa219fa7-a937-4b80-b113-51771dbf31d0","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":76,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"3cc8e70d-d72d-4ef4-bba1-9ec0e8fd8492","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":76,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"7796298e-4d6a-4949-a21d-83d4d7ed5ba0","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":76,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"fb12fd8a-4a12-45e2-9ff0-ce70a8ae98f2","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":76,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"04ec81d9-3da9-4332-9d6d-860c551e310d","block_type":"box","text":"sectors globally.","page_number":76,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"79c161a2-1850-4263-ba18-b8ae99e6745d","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":76,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"21236534-d92b-4bbf-b55a-cd513ef766b2","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":76,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"47273674-914d-47ed-b713-4b7d0276ef91","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":76,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"209579c5-7e86-4228-9395-e13273081b04","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":76,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"13ea4da7-c2b6-46bc-a026-cb9c0625bfbb","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":76,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"59a914a0-d281-4208-95ed-334f28cfbf9a","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":76,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"b97c5ddb-9b14-4264-9162-abe3a8c45b46","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":76,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"053a5039-35d1-4a5e-9ebe-033309156413","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":76,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"e55b1d2a-0dd9-4f6e-ac52-8c5c3fa36b1e","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":76,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"a980a445-f48c-4af4-a995-e175ecd90b26","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":76,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"5636e27b-57aa-4fd9-89e2-ee5d1d23de6d","block_type":"box","text":"fur ther impair the value and liquidity of Russian securities.","page_number":76,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"3da24aa0-a131-41f5-ab67-e32d996d01c2","block_type":"box","text":"II-38","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f28b2b2a-affa-42ea-8940-8335f77e2b47","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e81a806a-0041-483b-ba3e-31b1d829ea14","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":77,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"58f40bb7-6a62-4b71-8af8-a887fb3af71c","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":77,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"7ed942aa-ffaa-4e9b-85ae-031d5557990c","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":77,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"4808a597-5e5c-4f0c-84cd-60c8d27957ca","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":77,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"074b3b44-108c-4c18-b8a1-39b20bc76d52","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":77,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"f30a4ddb-e528-4be2-8ba4-9d6af7db9a4e","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":77,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"5eaf378e-1069-4b25-bf62-c5b327c9443f","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":77,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"b1a7afdb-bb57-49ef-be84-72ec4eb24932","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":77,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"9ffee0a8-5e85-4f1d-8480-6026c3e19f02","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":77,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"3ecd1ff4-739f-4d83-8967-06c876eb82af","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":77,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"afb49ea7-a496-4545-92eb-b46becd8018b","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":77,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"0d52a465-23fe-44ef-8799-861144209c82","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":77,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"ce74ab99-f70a-40fe-9157-02910583c761","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":77,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"87f96c50-ae56-4697-8e83-54a40de43048","block_type":"box","text":"of assets and proper ty or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":77,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"dcb742a2-fef5-40d6-a6d8-6ecaab639796","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":77,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"2a236e47-ee94-4908-9156-ea318537f9f3","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":77,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"729af127-4b17-4f02-b57c-a0772b697dde","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":77,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"a6a2abe8-7c36-4617-95fc-79403673fe4a","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":77,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"63d2aded-6852-4d65-96f5-4cc6acfa98d8","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":77,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"64b118a4-06b2-416a-9862-14ba329f6ba4","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":77,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"4957b665-8dd7-47c8-9a8b-c0cf27f4285f","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":77,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"ae944ab1-c855-43bb-a633-ee4d6cdafba7","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":77,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"e213badf-84e4-4faf-a836-3eb82caed011","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":77,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"08a3789e-80ca-4984-bfc0-0a48619f7423","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":77,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"f3953224-3906-48ff-9bb5-89f3e81194d7","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":77,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"715c17d6-a3fd-49cb-b3cd-a8f8709c6a4c","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":77,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"756d17ae-d5fc-4d65-bea6-7662088f6ed3","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":77,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"1be350f0-fc8a-4fbe-b529-db3ef140ffc1","block_type":"box","text":"impacted.","page_number":77,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"4294d470-5c37-447d-8ec3-34568bf402ec","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":77,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"bd4314cd-6530-4b77-90c3-f9787173d92b","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":77,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"5abe59a9-ccde-482e-bbd4-e0ce944234d2","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":77,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"a5781f6a-c62f-49d5-a692-c081ce1910b2","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":77,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"802a8c5d-727b-4939-b6a7-43e4d63b0dc6","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":77,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"0d0a43ae-1df0-459e-87ae-0b97bc0a0e20","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":77,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"479c2a22-e071-4d92-b9e5-9f33caae86fb","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":77,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"317f152b-cfab-4754-95d7-b4f2e713c49c","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":77,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"2d319860-5a5b-4f3a-a45c-1b29f322a174","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":77,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"ca3b0012-e502-4cb0-af52-c7f5a6fc8eac","block_type":"box","text":"por tfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":77,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"419ed444-293e-4d21-8274-bce80badad0d","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":77,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"08461d78-96ab-49b5-b9a1-aa8d815736b0","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":77,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"21ca4e93-8c80-4a35-bdde-d8adb6a160f2","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":77,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"fd264835-b695-41fd-945a-0d8c42210b39","block_type":"box","text":"economy.","page_number":77,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"b9d681d1-9f03-436e-a93d-e86af0aa4961","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":77,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"07c3fa86-a104-4b1c-83f9-64fec22afc18","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":77,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"92b9ad84-0b54-4d65-9af3-46144e4d5206","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":77,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"c88029c5-f818-4416-a26a-92877f95bea2","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":77,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"031a98b6-4117-4812-ae06-ec334023878b","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":77,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"34711604-ea62-46a9-ba03-a6a4587f10ee","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":77,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"32f14736-f628-40d8-ada8-51fe86f674ee","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":77,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"0e34d3d7-21b2-45f6-be23-b889bdc6d299","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":77,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"cb348be5-81de-4295-b023-a01c38e17d4e","block_type":"box","text":"typically the case for investment managers.","page_number":77,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"90f77a55-03ec-4d68-aec9-7a215f336003","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":77,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"733ab1ae-1ebd-4f6b-9b35-3f1a92229f86","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":77,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"edd2e773-d579-49bf-ac7b-9d4c76213989","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":77,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"a68f52f9-979b-4555-88d4-ae9d6ab4d1f4","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":77,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"987183bd-637c-40ed-9713-1c1db576ae2e","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":77,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"32ae883b-ba10-4acf-ba39-009e64eac4e2","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":77,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"3a97654e-324e-4ea7-8cfb-741da6dd1bef","block_type":"box","text":"II-39","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f5f04302-2f18-45c5-a7e1-4780fa5b1717","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"09f73046-da6f-4ba6-a21a-e81219633616","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":78,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"0a4e1c0d-ecc2-4415-b111-73b0c4bedce4","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":78,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"69ceb811-b2b9-46cc-92f6-f65755ca9676","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":78,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"8638523f-12db-4d71-91ed-77eed658f58f","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":78,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"67ad0f0c-8118-4b1e-a685-c4f4590dd0a1","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":78,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"8497cd6c-3888-4349-ad9f-85665c46277b","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":78,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"22801517-5331-4b40-b818-684f6c2ea65c","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":78,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"bc6f2226-a36d-400f-b276-f1087011dc0a","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":78,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"36ced67d-ed31-4b10-9561-7bf49930f47e","block_type":"box","text":"Cer tain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":78,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"18509c23-070d-416c-8dbe-2c3c58e6b5e3","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":78,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"2e51e754-315a-46e1-9570-5d8f6670788d","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":78,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"a110cf25-8771-4714-bc00-9a796a050c53","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":78,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"8646ac1f-566f-4a97-8ff4-4ec95090d6ab","block_type":"box","text":"will be indirectly subject to those risks.","page_number":78,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"8df0aed3-cf07-49a9-b55b-f2250590ec66","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":78,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"da875f8f-6ea8-490b-8984-cbf92d60017b","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":78,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"8dc16b75-f40e-4e3c-944b-482d74965ca4","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":78,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"de71d579-c6fd-45e5-bd66-4a834b797f81","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":78,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"25096b29-677b-4452-b6bc-711eda487a82","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":78,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"413d78ce-6c90-47c8-991e-875a9f53763a","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":78,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"4bd0fd49-c080-41f3-918a-297f9af0ea0d","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":78,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"59d35d12-c725-4286-bdbe-ca71fa6b9550","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":78,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"d83abf2e-092d-47cf-9f01-f7ff0090b568","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":78,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"4e3a7564-589d-4e4b-a7b2-ade7a74ea1cb","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":78,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"0dfc7b73-4c7e-4483-b8ac-b3c0011630f1","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":78,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"9c86a573-faf8-446e-985a-317430a409d7","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":78,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"b204decf-ab2f-46f3-a75f-94ee2adc9cc0","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":78,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"1a4009cd-9a7c-40df-9f46-4a80a25d0020","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":78,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"0ed5b8ab-e67e-4662-8005-905f306ef990","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":78,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"f59025ea-6a2e-4733-a845-f5a996ebde08","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":78,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"09522068-4c76-4103-a454-77386c8bfd90","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":78,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"3513648a-8e8f-42eb-9d9f-0a0c76d2cd35","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":78,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"4329bc81-09d0-4677-a82e-a09ba84277f4","block_type":"box","text":"impact on a Fund’s investments.","page_number":78,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"75dbbac9-d882-4c8f-a714-63fd05b4e243","block_type":"box","text":"Brady Bonds.","page_number":78,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"8a360906-2702-41af-8f2d-3c5814fbe977","block_type":"box","text":"Cer tain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":78,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"812bccfe-5e8d-42c5-af68-243da5976365","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":78,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"d60bca2e-1c04-4b34-ae7c-35ffaf8bab66","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":78,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"3944724c-881a-4fec-a9f2-2104fdb06ea9","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":78,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"dff8526a-a138-4c69-99fb-4e9157d257f5","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":78,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"27a4e10c-132e-4209-9b69-0411bf960ee6","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":78,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"62bc6cce-727f-4a73-b65b-ad7960c821c5","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":78,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"82c0925d-514e-41d2-a50a-de476ed669fa","block_type":"box","text":"2000s, cer tain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":78,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"de4816b5-bc7b-4e06-ae50-8a304a44bfe1","block_type":"box","text":"Venezuela.","page_number":78,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"55d35732-ea4d-4a48-9d14-1c0d284cb8ba","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":78,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"96a4016b-87bf-4957-810d-8c85e8b81cb6","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":78,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"3c1c012c-a26e-4f24-aa90-2dd6be7effdc","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":78,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"e1bb0300-01b1-4a11-9700-03113bc01932","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":78,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"466b077d-2b8e-42e5-b489-a9866c0bcec2","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":78,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"dcd01aa5-6af8-4f49-93bb-c021b13c4b00","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":78,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"baa7e16a-e88b-4408-94fc-33f8b88c793c","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":78,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"93d24328-d4b0-4570-ade9-b448b96decc4","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":78,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"150e4a8a-29b8-4f76-a66c-4c30b44f348c","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":78,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"ed6e146f-1b66-4065-acbf-eb28bf159956","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":78,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"4dd3ceac-f449-4f03-9342-6fdeaa37b036","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":78,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"10ac4a53-2ec2-41f6-a21c-4487535ac465","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":78,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"b7aec6ee-3820-48bb-85e7-7915c1b2f985","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":78,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"69851f3c-2318-43df-9f91-3d1c57fbfa38","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":78,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"5c3b73e9-4981-4167-a554-dd4e1d8d5bb5","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":78,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"5aa5e064-04de-497a-87f8-b39cd795da26","block_type":"box","text":"II-40","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3c2025c5-3bcf-4d4f-85c7-772bf58f2f81","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9782a281-f2cc-4626-b23d-50441213f83a","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":79,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"94cf2c29-fa5a-4e9a-9143-fc1f9852ce14","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":79,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"1403a018-a0cc-44ac-b3c5-0c34461e1110","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":79,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"5cc963eb-d0ee-48a0-8c60-59f8c8ed7630","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":79,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"13c4d682-9e22-40f2-b18b-f99a41c3416d","block_type":"box","text":"China Investments Risk.","page_number":79,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"0b36e510-75fa-4eb9-88be-2f2bc769fc37","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":79,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"89e5b518-579b-4b1a-876d-a56689ebbaa3","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":79,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"73d29620-577d-472a-89a7-aa36c4a01128","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":79,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"4bdd8ee3-754d-40c2-b09c-bb748bdf1e53","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":79,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"d4eec6f8-5b79-48c5-af92-13930abb4e30","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":79,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"4df82348-a27a-488a-aa8a-3b96d3737153","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":79,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"95e1be2b-bd6f-4909-b793-6c6eb9cbb454","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":79,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"2a87bde7-1a84-43f0-ab65-1c683fa8d066","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":79,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"194fdea1-a32d-4d20-91ba-e21127002041","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":79,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"eb2be2dc-d739-4146-8fec-3ef6986b76ab","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":79,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"1b4f7893-0313-4ccb-8fcc-ed417ab5b9d7","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":79,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"9cbcf0fa-8ab5-46c0-8f9a-17e6b7041057","block_type":"box","text":"Kong may cause uncer tainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":79,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"f44821e0-3fea-4cde-979b-0c6a113ec7c8","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":79,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"55edfa6b-01da-46fd-a076-781aadba3875","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":79,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"f9fbf77a-9428-4ee8-9a2d-41b07c96d6a0","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":79,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"0d6f37ca-1fc7-47db-8075-f44ee5c1c552","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":79,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"d53c995f-4e6b-43c2-b984-31efbcff4f76","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":79,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"20c90f27-190e-43f6-918b-adfe7f7332d6","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":79,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"06bc7e65-2912-433c-9c9a-4f748be55a9a","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":79,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"ff1eab05-1a47-4212-9110-f6ccf9361645","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":79,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"da8c4216-c76e-421c-8357-43ec4263a3d9","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":79,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"86fb591c-5dd4-411d-bada-cb68d0b585cd","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":79,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"5002a4eb-1cce-4e65-ab99-e52936b31aa4","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":79,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"03cbe820-c7b5-4901-b978-b86c044441e5","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":79,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"c79d351f-3c48-4abc-a68c-0268fb560a7e","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":79,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"8cc55ee6-113c-4386-a92c-f9c596f5af4e","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":79,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"a8f16c3e-7aba-4d07-905f-4d78b032f5f9","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":79,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"6bb93504-ea1a-4842-8f5c-37d66173bd80","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":79,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"57ee8378-96a9-4b84-b488-882d252aa906","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":79,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"7ba1b36d-b942-492c-b6ef-7763987e8e3b","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":79,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"38d908fb-9be0-46eb-bf01-d48368a17e7d","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":79,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"7826a665-2e2c-40bf-a3ac-88ea9febd0d9","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":79,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"63f5d662-936e-468f-8b6a-a11bdb910307","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":79,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"7a2728bb-519e-467a-bdb4-a5a363ccb523","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":79,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"a6505591-7648-4f12-9eaf-5f64f4b892c9","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":79,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"8e5a2254-f277-4b6f-b10c-09e2fac33384","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":79,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"c95e5491-6e1c-462f-92ef-d33604aad27c","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":79,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"600271f3-eb2a-4bb1-81d2-dc2c15cecbcb","block_type":"box","text":"Funds. Fur thermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":79,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"af593ff9-b70a-4817-b533-9b985e2904a5","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":79,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"4c5aef83-c7e8-4628-aeec-ad307f9f6deb","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":79,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"96f5cea6-b630-4fc8-abcf-946a3d7e2d0f","block_type":"box","text":"brokers and other par ticipants than in the United States. Accordingly, issuers of securities in China, including","page_number":79,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"43c9afe8-b494-4140-a7a4-2eb2eccd9de2","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":79,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"ce596f63-df1f-411a-80da-0bd88cf900f0","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":79,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"a2ca9b7c-197c-4e1d-a94e-c93b60674645","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":79,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"2c3cdc0f-8763-46ee-a2e3-8a7c1fea164d","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":79,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"43a63222-364e-4ef2-8315-6cac8c2e78c3","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":79,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"1bba9bbe-b00b-4b39-8adb-3b4b11e58e39","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":79,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"d155995c-f5d2-4d8c-85f1-a7bd598f38c6","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":79,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"f3056bbd-7f0c-4212-9649-195a7d72f88f","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":79,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"8113774d-b3af-42d2-aed0-6700db1b6634","block_type":"box","text":"sub-custodian.","page_number":79,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"087bf0b4-8aed-4d39-a4c9-70e638d32088","block_type":"box","text":"II-41","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ba631a7f-cac5-47df-871a-c0982f80623e","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"08e7338a-34f8-4605-b918-a175e491416d","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":80,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"05ee279c-a947-4427-8899-81a3864d312f","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":80,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"a59aa548-e6da-479e-b1d5-ab95d0cb7699","block_type":"box","text":"on investor protection considerations.","page_number":80,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"bc763286-f2d6-4c35-8ac2-e1f2623640e1","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":80,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"3bf52de6-67c5-4759-b4f2-cb51714d560e","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":80,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"09c92c77-8b31-4bf1-a159-6a63d2b91056","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":80,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"28829454-0929-47d8-abc2-af0ef891d484","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":80,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"10fe47ab-bc6d-45fe-8dcb-a1e01c828916","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":80,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"c4417610-0806-4bad-a30a-13a12afd55a4","block_type":"box","text":"headquar tered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":80,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"8453fc2f-4ddf-47b8-a2db-cf5dbf0e0c45","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":80,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"dbc9216b-584c-4b85-91e2-36b4c6457a69","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":80,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"f7d89583-a2d5-4d76-a5bd-05a0e3acb158","block_type":"box","text":"per formed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":80,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"0422bf23-318e-4ae4-99bb-b66d37513fab","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":80,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"a601ffb6-eb8c-40b3-ba4c-7e595e18463d","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":80,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"a8242669-0506-4c9f-ac8a-3f0e1617e1d9","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":80,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"eb301298-f279-476e-b56d-c81f78b15b63","block_type":"box","text":"accounting firm.","page_number":80,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"47efc3dd-a9f3-4fcc-b681-ee862c090dd2","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":80,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"cd6a7636-486c-4991-afb4-8e07afbad627","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":80,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"04c8f1cd-dfb9-48de-b69f-d872d169898b","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":80,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"f50a35b8-a243-42f0-ab1a-ab507869cb82","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":80,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"2e8fcdc4-bd22-4365-bff2-59ccf3c80e72","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":80,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"2424ad6b-da42-4634-b0fc-527741c629c8","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":80,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"4b5fd058-182f-486f-9c21-eab4f40662bf","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":80,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"2b729ca5-b365-42ff-87d8-6808529743c4","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":80,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"ae6eab65-4145-4ff0-a95f-59477ea446f3","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":80,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"bf0819ff-e6ee-46e7-b29c-9a2d41eb8210","block_type":"box","text":"RMB (“CNH”).","page_number":80,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"ed0d56ff-f355-4ef1-bf45-8db858d77a33","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":80,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"6f7af2e5-a429-45eb-842e-450954826417","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":80,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"a3df9cc8-981d-4ee2-8b6e-b950683e8a35","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":80,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"44a43c69-4b76-4dc6-89a7-669c5ca97186","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":80,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"418b8bf0-00f4-4cc7-b8a1-10246f1e1f05","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":80,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"147296b9-71db-490a-9aac-9df2adb5da84","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":80,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"8bcf0ff2-0a1e-4aef-ba8e-8c6f505f0fcb","block_type":"box","text":"represent equity ownership in the operating company.","page_number":80,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"56772f4c-760a-4b48-865f-a642b35cdad4","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":80,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"d3fd87cb-4073-4a70-947f-e49a30e204d6","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":80,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"fb146555-d1d2-4d65-aa95-0d0a689ff4c6","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":80,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"75c3fd6c-7f40-4ac9-bebe-c1b60550e783","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":80,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"9dc644a6-23e7-4e3d-a0f4-d070650074c8","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":80,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"a673b952-9f6e-4313-a5b3-edade2d48798","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":80,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"911b8842-8de8-4c9d-9ab9-f44774aa0189","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":80,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"3951aadd-947d-4e77-8891-910fbba3f5e2","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":80,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"6b1de105-4b61-4def-a21f-6068ee930394","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":80,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"f38947ea-eaaa-45f0-92cc-4ceaee90c778","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":80,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"738f6d64-4c45-41ee-ab60-33329cf4fb08","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":80,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"eb4df142-3e4d-42d5-a510-39cc7b00806e","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":80,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"87566754-9f0b-48bc-8d87-4e4897af456b","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":80,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"e8e28cc9-986d-4c2e-ac06-0cf436bdeaba","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":80,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"a59b88bc-26a3-4684-b1f5-e8049ffaf0a1","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":80,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"3350f7e0-45e9-4d5c-b3a5-66260d51acc5","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":80,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"3ca3695d-af32-4dc9-9334-7035a20c3098","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":80,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"10bd404f-c9d8-432f-a7d8-39eb7352cb87","block_type":"box","text":"losses to a Fund.","page_number":80,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"647fbdf6-3e89-4dc9-ad68-3ccfc4abd0a5","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":80,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"9870e5ba-b87c-4e90-aa67-51ebfdf2bd3c","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":80,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"5c63936f-371d-4435-8732-12294bdcb072","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":80,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"002d5e83-aa98-43d5-aab6-034b48312f72","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":80,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"b51cc7c9-9acc-400f-aafe-139b4242723e","block_type":"box","text":"II-42","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5e6fd75c-a268-4d73-b8fb-ceeb2c8b2916","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8fde362c-5195-4ea5-b136-35b849bde841","block_type":"box","text":"expor t growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":81,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"903c7c6e-bba6-41c9-9d88-df7363e535f9","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":81,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"9432ea24-bf4b-4461-ae03-29283e1f744d","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":81,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"3f6698c0-f3d1-4870-852f-8043e1afe704","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":81,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"e5438c6c-dd12-4024-a984-59eb18814be4","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":81,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"d4555cb5-0f1b-49d1-8311-179b8b79e77e","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":81,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"18d3cb21-9876-4d07-9561-5d0eb86b8407","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":81,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"12fd4510-025c-4ead-add6-50291d1363b3","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":81,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"a5b85cfc-aec4-4f9c-bf2f-5e5800d7a10b","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":81,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"4e44f48c-b225-4219-913f-2d5f7e4efc37","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":81,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"64cef03a-8de4-4a8d-8cbe-fd5e8565f63e","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":81,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"75248f31-e2fb-4b3f-b5e1-f7015d4dd4d0","block_type":"box","text":"or cause market disruptions. Cer tain companies may be subject to economic or trade restrictions (but not investment","page_number":81,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"65b1433b-c47e-4092-bfc7-3e8cb5ee3225","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":81,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"137057b7-b167-4b90-a49f-3ba396bd4b89","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":81,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"f6837a63-e4c3-49ba-ba60-355f9a31fea5","block_type":"box","text":"such companies.","page_number":81,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"43dc64dd-63c5-4479-90e4-58d82aaecba4","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":81,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"adbf92c7-6293-4b08-85e6-98f2311753aa","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":81,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"456e68e9-aa02-45e0-8164-6c5f25af509c","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":81,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"fd000ca5-3818-4faa-a4da-42e2ee42f26f","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":81,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"ad9b5764-39a6-4273-b2c1-35b2d4337f0b","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":81,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"04570b94-97b8-4034-beca-fb06bce1c554","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":81,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"7e42d078-031a-484d-8f3d-22ef207c4cb6","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":81,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"3e823cce-1dfd-474a-bbd8-03d65cf08566","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":81,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"d5473488-073b-44dc-9b9d-214722861ca7","block_type":"box","text":"standards.","page_number":81,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"28e19981-e006-4a76-ae2c-adf4ee187a8c","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":81,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"ece41dd5-8dd1-400d-a721-04322ed32ae0","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":81,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"3043aa27-1e8e-41cd-9472-0186411863c6","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":81,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"e60f51ce-2571-491a-95b2-400ce82cbe1a","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":81,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"758d950b-8454-4a8e-87aa-4805e80b5374","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":81,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"2654bf50-8183-44ab-b0b0-8015b5595b8a","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":81,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"60b4ff57-74c1-406d-91df-154bd23d5657","block_type":"box","text":"General","page_number":81,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"582ef9ac-a9b4-4272-ad8d-d2c52f7edc13","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":81,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"9409684f-a4cb-4b80-8637-3fd58b5cf165","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":81,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"20a8f9ed-6c45-4605-aa21-c1671a8c18c1","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":81,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"f87f8626-897d-4119-a3ca-4b6874122031","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":81,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"e1c77638-1e3f-48a7-b434-457b14be7f7c","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":81,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"d9b36749-222c-43fa-bf1f-123bacfeaab1","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":81,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"f8209788-9103-4753-be57-fe68f28f29fc","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":81,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"12e9135e-00ec-4767-b39c-3786bbae4df5","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":81,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"cad227dc-09f3-473f-8b37-b2053188ee49","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":81,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"08c305f5-a70c-44b6-933c-f0cb5f47ad5c","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":81,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"c4109457-a3b6-4516-a7d5-2555287b5f8e","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":81,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"922b4d6f-3bc7-42eb-860d-0b38774279f9","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":81,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"334d4b20-565b-4bb2-b906-52bab7b7758d","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":81,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"97f64a7d-78bf-4399-90ef-5b801aa10714","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":81,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"46b6f4c6-9034-44d1-90d1-05b8e2f6c22f","block_type":"box","text":"company established by SEHK.","page_number":81,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"027bc294-394f-4ec7-b194-924db63c351a","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":81,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"21611a2f-221e-4f50-bc78-ffe603ffc708","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":81,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"1248761c-6ad6-43bc-8b6c-366cbd6d16c6","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":81,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"83960ab0-5eff-4b5a-8010-6fb7582f379a","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":81,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"8a4818d1-9dc8-4c69-9317-ce7eaee36110","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":81,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"db2f1476-ef1b-4b0c-b7af-5947e8d6b7c0","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":81,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"5cdba4d9-972e-4114-bccc-0bae2028f713","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":81,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"8cf4b3b2-f825-408a-bf64-321feb397a3c","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":81,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"42021e1a-e8b2-4120-85c0-17fc96623768","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":81,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"675a05da-3cf6-4d84-b874-d54be95a6063","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":81,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"1cc6fde0-4a62-4232-9bb2-baf999c980d2","block_type":"box","text":"II-43","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"beef4f70-1d17-4db3-b2da-94c6caaec0a2","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3b93db61-a48d-4c26-bf1b-b00a4962dab4","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":82,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"6bf4fcce-ec93-43c9-a2a0-2f1ef82423d2","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":82,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"5c5736df-8a44-4c97-b1b7-123ca4bb4083","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":82,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"19b1092a-2159-44af-9ae2-206c7f5743eb","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (","page_number":82,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"512c6d09-66c7-46ab-93c4-42a6e0c6c212","block_type":"box","text":"i.e.","page_number":82,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"7f395e6a-9998-4b3d-ad07-28ee7f511852","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":82,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"ad539141-36d6-4431-aea9-100a0f99e5e6","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":82,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"f5025a69-30b1-4c23-8023-b3ff744c01ee","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":82,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"2efd6a4d-590c-4348-8921-74c47f5fb72f","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":82,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"fe312f7e-29d4-41e7-a4ce-1cda078dec51","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":82,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"d81a4792-39a8-4b8e-9103-33db5f691aa3","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":82,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"95f2f376-d40d-4f82-b3ad-965fd6bb7f4c","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":82,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"9acccaf4-c957-491e-8ad9-4ed07d38be85","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":82,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"f0112c26-2e2d-454a-8101-3aaf0630cbc0","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":82,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"9d313e46-6711-4687-a19b-ff17d53fc904","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":82,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"b371ee84-949e-43ee-9283-a906fe9a3fa2","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":82,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"b6bde808-309b-432d-91c0-7cd24512eb37","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":82,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"cff9f653-d5c3-444e-bb22-e34b15e987ed","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":82,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"ccef5619-6550-49d1-a02e-186922572e17","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":82,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"7a0450a1-009d-4434-a6dd-9543e31e72eb","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":82,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"863466b6-f89c-49ca-9783-cc8d21ee8aab","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":82,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"84d1deab-6535-4cb3-849d-f7f3c08b67d5","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":82,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"fdc4005f-7e18-4897-8f95-dca195335255","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":82,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"bffdd988-3987-407f-ade6-cfb0913841cb","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":82,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"77914410-f0a7-41d8-9d5d-3df5b138436d","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":82,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"d5b27c9b-ccfb-49c5-97b0-05318fd4471d","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":82,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"6ac0d09b-6082-46e4-89d0-73c700724d73","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":82,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"7a9c7413-ce30-4065-9436-fc19871f746c","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":82,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"d4483ce2-c7e5-4be5-ab54-89efa4816899","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":82,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"83de1891-2f16-4654-85b9-7170a9adf760","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":82,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"8381441b-a7ff-4e98-a543-8651f1cc0cf6","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":82,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"f449e196-bf5a-4f0f-a06f-13ae7bf21b19","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":82,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"fdc7b5bf-de16-417a-9700-d05c10767fad","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":82,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"68497967-3daf-46de-a847-db44d62eb895","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":82,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"6d451e88-4e6a-4a8b-a3ea-6b4462ae1b7d","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":82,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"d2464f8d-8774-430d-b02d-f8aa202915df","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":82,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"3740a2b6-7375-4ae1-8823-4afe83338464","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":82,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"8c95d14f-d141-4a8c-9d00-9bec5f4e4300","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":82,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"abfdb892-b230-4a1d-b34c-72ec7c7f8ab3","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":82,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"76bbde34-062d-4b13-8b15-80346a1a6a64","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":82,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"00c7e6d4-0de9-4cf8-9947-06dbb2cffb71","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":82,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"4aa61ebd-053c-4845-aefb-a21f6fbbab5b","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":82,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"06cd8c10-5ab8-43d3-aa54-25b600cac0b1","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":82,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"6e339e9f-4d39-4b35-939d-e8a87a69eb99","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":82,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"f18a7e85-53b0-451f-b852-ad0920c28b4c","block_type":"box","text":"PRC.","page_number":82,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"4a2bd718-29cf-485b-9a70-a4e5e0a87b8b","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":82,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"42299123-fd7c-4ce2-a72e-609bc4bdf7ec","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":82,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"d3772e30-9f25-42bf-96e6-17ca3610f10d","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":82,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"d0ac8367-960e-45b2-a47d-47ba5e0f4403","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":82,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"cf083b48-101e-4eb1-8f70-4a593f87dbbd","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":82,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"9f8ff1df-41f4-44b4-af5e-c5a4d8a3fc9e","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":82,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"b03f795d-4a2e-4cbc-9014-67226ea9cb90","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":82,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"bff6277c-bf08-4523-967c-83eb7653e9ae","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":82,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"ef4508d4-efef-4c72-ac50-775526ea8bd1","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":82,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"254a66a7-36f8-462e-b649-af8cd8017ac4","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":82,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"a65e69a7-de4a-4a3f-8378-fab1a7cb0c30","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":82,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"7defed9c-b1b5-463c-8a0d-028454abdfc0","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":82,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"308e4073-9984-40f6-857b-fc306765861d","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":82,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"08a7f87a-5da6-4e3e-b99a-bd8f765f5412","block_type":"box","text":"II-44","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"26086a19-9d14-4c55-83fe-fd2053d795fc","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7a8b7e73-02e9-4cd6-946c-65a773191c61","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":83,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"e417cc33-3b2b-44b1-844f-41dc9742695d","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":83,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"57808b68-b0a0-4c24-a448-480f2ae0b076","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":83,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"f5bc22b0-19f4-4165-9ee3-68416ace3249","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":83,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"60cb1b35-85ef-40a1-a301-16a52e41ec66","block_type":"box","text":"other restrictions. Fur ther, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":83,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"f4c89d02-c1ef-4a5d-a24b-9bd1763fa39b","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":83,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"b500c3de-95d6-4a44-b88e-04da859173c9","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":83,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"8b27e025-a1a3-4546-85ec-1bec3fa84ee5","block_type":"box","text":"Suspension Risk.","page_number":83,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"c0be22b6-33fa-4028-bf07-bd597b764ba0","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":83,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"17f03861-905e-4219-8cbf-4e5903756f76","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":83,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"177d8c4d-5e1f-4f96-a22d-a74dc44d7d96","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":83,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"544194ab-ca87-4b26-b3b6-fcae17704496","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":83,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"cb2abd5b-d40e-42f7-9fa5-cf88b9c1b442","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":83,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"315d2338-e041-481e-bc92-621efebbc92e","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":83,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"779018a9-d901-4e20-b290-30acc30f0da9","block_type":"box","text":"Nor thbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":83,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"479ddb3b-76d6-4051-96b1-e9566f41ed82","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":83,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"0eaee4d4-0592-457a-911c-3eb6ade0d1e6","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":83,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"ec1f6e95-dbed-49b8-a3fc-04b5e3ac880d","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":83,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"4c9a7861-faa9-493c-a0df-9876d3701b13","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":83,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"e92ae45c-276f-4729-9797-0aa8ec05b3d9","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":83,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"0c7a06f0-84f5-476e-aa55-0e559716b9c4","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":83,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"74810e3b-b78a-4c48-877f-5a15c33e73bd","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":83,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"59a3501a-a0cc-4f01-8149-e1e876fcad2a","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":83,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"865c6254-5ae9-4a63-b975-5e57974ce114","block_type":"box","text":"A Fund may invest directly in the","page_number":83,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"070ef85d-1c8c-4ed8-804e-0750ad9e93a6","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":83,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"e5ba5ab9-576a-4172-aac3-a6b8c66f7045","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":83,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"08ab5d91-33b3-4096-85f9-bfe5ec92f486","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":83,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"deaf4c3b-8c1c-4ef8-8cfa-bfcdf21437b6","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":83,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"8bf57140-d615-4053-a109-55cc9db158b0","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":83,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"de1daa0f-1466-4746-a3f9-377bdd311118","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":83,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"d075f6a0-9a6a-4dbc-835b-a77af2f18bf2","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":83,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"d000af6e-f643-45a7-9ab0-5bd7d8ca8bf8","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":83,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"a47de168-a9d5-4185-a929-035ae0bd57f6","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":83,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"d7498725-fd9d-45db-a204-807d092f6ccf","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":83,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"6892dc12-2efb-403a-b32b-ce0552006e2e","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":83,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"d4e80d29-cd08-4da3-90a4-59b76e8eae26","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":83,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"4cfe0dfc-6e71-4f1e-92fa-e88a42f2aa6d","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":83,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"5866dc7c-697c-4e13-8537-3d482da9bcae","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":83,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"72fcfbaf-811f-4985-8682-f7e3f77c66c5","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":83,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"19aa1de2-578e-4f34-88c6-50938f7e0afd","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":83,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"748e4070-b3c8-4f29-969f-066e821453d5","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":83,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"8f352a43-c595-42d5-89b1-064ff93e9e05","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":83,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"72a0b00a-7409-4780-ac81-524eb322503f","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":83,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"0be1bc58-91d5-40bd-bcbe-1b71f4875fb2","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":83,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"60a28be7-5e00-4a4d-9bf6-8d3952a42f45","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":83,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"7b2d3acc-9414-4831-87af-5f3c13c5f8b8","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":83,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"f2a9958b-4510-41b9-b343-bff94be6b165","block_type":"box","text":"i.e.","page_number":83,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"844591b1-14e8-4639-abd8-fbb1dd20b842","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":83,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"8fc2d2d7-6943-4c7e-ac26-267c3778bcb5","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":83,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"67768e96-63dc-42f6-b876-1e96fbfe1ecc","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":83,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"1d4c617d-4f6b-4e07-bcaf-b6c128baaa97","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":83,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"d65fc904-79a8-4989-921e-cf12d324022b","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":83,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"fbc689fe-cc10-4aa4-9612-4dbc849887e7","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":83,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"cf2cf613-59d5-4e33-a230-0f8536b5938f","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":83,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"7d1d86b4-b94d-4609-b4a2-2f7ca1176a0d","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":83,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"f1c2aecd-4bf7-419f-ba36-9d7bb6343617","block_type":"box","text":"par ties.","page_number":83,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"6e4589af-0739-45c0-b5e9-8bfc2da522be","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":83,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"a1f1f93c-c6a8-4295-8ebd-8193fe4b0a2d","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":83,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"873a678a-67f6-4b07-9e58-5124d9eb6578","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":83,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"288f7b65-a304-4b7e-af6e-fd353ba18147","block_type":"box","text":"II-45","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5fa63fd8-3e98-485b-91e7-ac9128819e82","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e65398e7-ac61-4f28-8d6e-eb920f1dedf9","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":84,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"b509d8e1-5087-4c05-80ba-b7f8bb76ba2d","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":84,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"142d91ad-5449-4203-9126-3dd851846ace","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":84,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"17aa9431-8e81-4120-aa65-fc6ef1977099","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":84,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"d1f08ddc-4ee1-484d-ba81-d5499d42a37d","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":84,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"6bb2b91f-e04a-4275-8f1b-48d241692cae","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":84,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"0067b514-dbd0-4b21-a8d0-37f65f107d9c","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":84,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"1da90307-8f94-4c33-bc22-81405d543157","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":84,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"1cda35d3-e771-4a88-a984-7ab0ad7134ea","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":84,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"d424c396-1eb9-4e86-8102-eba5006bbfa5","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":84,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"8ae34e29-ee78-49c6-b2f6-103bd94bc388","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":84,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"c4615d03-f646-4bc0-a167-b45c634c6279","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":84,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"29643adb-765d-4342-b485-1061336e30f8","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":84,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"40d1ac97-8276-4659-a0ae-167565948fc4","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":84,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"f26fbc85-5091-49a5-892e-f119993f6996","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":84,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"4225e8c8-c605-4f14-b265-909e3798b136","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":84,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"da55e85e-6f99-4bf8-b13c-9fc0c9695528","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":84,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"c9053010-6491-476c-82d1-b603ebd49088","block_type":"box","text":"per formance.","page_number":84,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"1e355938-99f2-4e03-b4ad-ae5078a277c6","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":84,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"2efcd1f9-fc3b-4026-9e3f-0f5de0d458d2","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":84,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"27bee3d8-7021-45bc-8fa4-e1d4d5c9408d","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":84,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"026a4881-9111-493e-aed1-425445cb6946","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":84,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"d3599603-0dea-4579-8d74-b298c6bcf312","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":84,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"4bfeb715-acfc-4e3c-baf3-4da59d99a355","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":84,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"b8acbd23-b23a-42ea-98a9-91eb7f26fd1e","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":84,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"e24328bb-5df5-4d6b-8814-7fbf3e48352c","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":84,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"0ffa330b-8abb-42df-85af-aef33897086f","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":84,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"08d6ba17-1abd-4e74-86de-981172bc7ccc","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":84,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"525c7bf4-9bef-42ff-8a15-0978dc47d4e9","block_type":"box","text":".","page_number":84,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"c0c3de01-22b0-4651-8dda-d177674b44b3","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":84,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"1eb987f5-207b-49f6-b1cc-74ee18dc4ead","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":84,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"c0cda401-2bd0-40c2-99e4-d3d4b2a89310","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":84,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"63285487-6c2b-4cad-9b44-d9444adef9a4","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":84,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"4dcadff3-a31d-4db5-960b-10d4fe176701","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":84,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"3ebf03b9-1056-4bc8-b1c5-6c25b5cf1463","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":84,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"86aa2119-19a7-4043-b90a-fd3b5aa044fb","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":84,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"87b4a4af-4a5f-4811-86a9-18e5f07e5f6f","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":84,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"5cfe7a90-3fb2-4a88-aa6f-d0412911cd56","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":84,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"4fe3b6b9-97d6-407d-8deb-f5d1c0d8bf30","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":84,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"446b74ba-fdad-4327-ac85-83487b486683","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":84,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"c79dce41-d6e0-4496-9076-a0dc879f6fdb","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":84,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"d442fd80-c844-4b45-a1ce-cf7ca707e936","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":84,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"c737c79e-c6b2-4140-a359-8e78fd51d323","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":84,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"2de46a08-b965-4ccb-bbca-98d6557bd886","block_type":"box","text":"without notice.","page_number":84,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"39d1e3a7-a0bb-4a4a-b5ac-7ea83cc5a16c","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":84,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"2a6c84b7-9539-4fac-9ec9-8a117d889183","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":84,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"ffab9177-8ab9-4e86-a441-af13e211d6da","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":84,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"6e48d0fd-19a8-4581-9059-787fd540985e","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":84,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"0f6f3fd1-d4b3-42b6-beeb-e86aed4032fc","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":84,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"8cd3aef9-1d8d-4f32-9c16-0a8b9087fcd7","block_type":"box","text":"December 31, 2027.","page_number":84,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"61c7b5ca-775d-4613-a467-f90906ec3066","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":84,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"95e60e04-d154-4c43-a9f3-e13c128c0d33","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":84,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"c95a4528-01f1-45a8-8185-b8cbd0591e18","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":84,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"994702bf-d8d5-406b-ab91-01c71e8085d1","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":84,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"794c4d8a-e8b4-4431-a633-d1a9f83b0ae9","block_type":"box","text":"II-46","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0051195b-ae89-4bea-a33a-03800406d23a","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3f75ca77-d044-441d-bfd7-715b770aa920","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":85,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"0c4bec5e-b173-40af-acea-e57fd4ef1a31","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":85,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"3d476cdb-18d7-4faf-a9d7-a609d11e2456","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":85,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"31bcb3b0-c3a9-46e6-b2df-111e22902a4d","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":85,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"6fa142e7-74ea-4259-8ddb-31ff3fecde41","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":85,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"6c87f8e8-cec1-4413-b8a2-4d8198430503","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":85,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"6ca8c20f-649a-499a-8afe-e893cb45c1c4","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":85,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"65607ad2-66e8-4526-976a-34135bedc5a2","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":85,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"2d9bd8bc-675a-40cb-a403-ab3cbc17c597","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":85,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"f0840678-5dba-466a-9b2b-fe20e47b3206","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":85,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"a7561c32-048c-448f-81d4-0808938e119e","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":85,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"6d523a6a-fabe-4570-abf2-aa5da4c4a1ec","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":85,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"5ffae0fc-224e-45de-9f20-85a1e9aa4f54","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":85,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"5e11ea1f-6b85-4e4b-a74a-d22c8d80a991","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":85,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"1b5bf451-73ae-4638-80b5-aef556197164","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":85,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"e3b64d3d-7233-44af-9b84-f972995e78e8","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":85,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"e4b8418a-f039-40c3-979d-5ee2c518b21a","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":85,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"9a4b3e94-2e72-4a7b-be4a-fc7d176efee3","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":85,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"25f13067-4116-4c77-91e3-6ba222d5cd0b","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":85,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"1637461f-6b12-45f8-8903-52f1c26d48f4","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":85,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"b152daf2-6386-430b-a1a5-e6727cbac582","block_type":"box","text":"the PRC in notifications.","page_number":85,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"86c590a1-614f-449b-86e3-b801836939cb","block_type":"box","text":"Investment in Other Investment Companies.","page_number":85,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"986f6764-8a1e-4de5-a65b-687f05f65660","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":85,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"c29d2a5a-6b77-4170-86bd-b08fd2556fbe","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":85,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"8b92243d-dc77-43e7-a6ae-7ef2175782b5","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":85,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"8056dd10-b868-4d26-9486-de309eae964b","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":85,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"6020a290-dfa2-465f-82b2-46fdec210618","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":85,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"41ae909e-5a67-4c8f-8f51-4e5245f817dd","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":85,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"a9f56d15-d566-4a14-874e-135232f7cdcc","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":85,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"c6cf1fd7-c641-413b-8250-408758aea99e","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":85,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"e9554900-eb0e-42b0-9987-df2bd240d7c5","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":85,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"ac5cd7f0-7ee8-47b0-ad1d-938457aea6f1","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":85,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"017e26c8-ec2d-42b9-9039-27fdd0077039","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":85,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"85fbe66e-cbed-4a6e-9fed-b85bfbc28ee4","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":85,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"46fddb4b-0230-44c2-b76e-d03c01ec8c41","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":85,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"78f46cbc-517d-4f25-940b-775ec4d07cde","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":85,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"288dbdac-27d4-4746-8dc6-5f4e829780d6","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":85,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"fdc9315f-8a25-4485-8338-995d823445ca","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":85,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"5e4a96ec-449d-440f-876c-05798caba79d","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":85,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"e2abb69f-7951-4167-8b4e-ca1608ce6259","block_type":"box","text":"subject to cer tain conditions.","page_number":85,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"492f2efe-c045-4a60-9c35-478c15e51692","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":85,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"cd267fb0-83be-4512-be5c-cf1c6dcc6668","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":85,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"25d46752-6730-448b-8171-08ba2ff99086","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":85,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"94f4284c-4e14-4ca2-84b4-8a03c8049ee2","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":85,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"a27b5e91-583f-4b5f-b332-19f940003bf5","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":85,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"6be88ec9-3da9-4b1d-bc7c-59ab9b44b917","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":85,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"8262f828-00aa-4ce0-b3b8-8ead09be62b2","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":85,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"3bf73b5a-e8d0-430f-b8ef-c1af0c1527bf","block_type":"box","text":"loss.","page_number":85,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"c0c4581b-61cb-42ba-b3df-009beeccda5d","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":85,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"291f2da5-bb0f-4673-b977-0a4fa3abe6cf","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":85,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"bc6dac36-d89c-4547-ae97-86823f11996a","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":85,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"ee0d6b10-6fc5-4b25-a3b3-42d6fb74206d","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":85,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"7ea9a22f-471f-4920-8465-ae62af002e5d","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":85,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"ba0eed29-b396-4407-b97f-a48cd4cb29c4","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":85,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"41e04328-2e4c-4ca2-9f02-53b1fec3bd47","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":85,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"eec5d25a-bfa7-4b13-b73c-3566947331b4","block_type":"box","text":"II-47","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ab9ef689-37c7-4045-9672-72e6a7d5036e","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ae4052ff-28b2-4a98-8488-edabf088b0fd","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":86,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"1ae45028-64b4-4e6a-8eb8-eae1442b85a0","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":86,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"4a9fc1ed-368b-49b9-bec8-96795c469ccc","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":86,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"f7c7fcdf-db3e-44f3-bafc-ad5d8bb798d2","block_type":"box","text":"assets.","page_number":86,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"f139b3b2-da87-4ee6-9a2c-c75b320af05e","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":86,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"e43dfb5e-c19b-4877-b08b-b4f894c9f8b5","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":86,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"70928994-af18-4896-9f85-9810995125fe","block_type":"box","text":"e.g.","page_number":86,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"820ab54f-f087-4e28-ae0d-32a774be92b2","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":86,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"f3ab7252-5a23-472f-a857-f303ea441e06","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":86,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"9b3dd38b-a906-4a51-a071-dad91c6f1d92","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":86,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"2ef5d5be-187b-4dbf-8034-10a8c3a21e93","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":86,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"5ce1a4c1-29fb-481a-89c2-5a3df842053a","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":86,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"586a067c-3778-4138-b7ad-d0917ff031ef","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":86,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"7be0cd2d-e712-4d6e-9342-ca0dc712d994","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":86,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"e11a221a-cf35-43b0-b1a0-f819d21512bc","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":86,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"dafd3d44-f6fa-40cc-b4ff-9747d99b21d6","block_type":"box","text":"countries.","page_number":86,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"70618d5f-2403-4de3-9b62-a0c6d0fed51d","block_type":"box","text":"Issuer Insolvency Risk.","page_number":86,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"721ccdd6-5440-4a4b-8e96-31fd6abd3c8e","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":86,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"e0573425-ff39-4898-99a9-8780d4c314f8","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":86,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"b70050d8-d1dc-42c1-9106-7bd8f4ccab63","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":86,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"8ae8afcf-7702-4e51-bf5d-10aff29de77a","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":86,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"7f652f67-bee4-49b5-b6a3-f248a3396d48","block_type":"box","text":"issuer uncer tain.","page_number":86,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"4af6fe8b-625e-4a63-b0e8-f4fffd3d7ed6","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":86,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"dd45189e-722c-4920-a048-2adde8135e33","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":86,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"db6c9201-e3ba-4ea6-bf6e-2b018d5246f4","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":86,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"d09a794a-4d2b-4e34-9790-0d5e13d3f588","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":86,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"58dafd12-418e-4e31-a572-ad14376cfe82","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":86,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"d55c7216-5d7a-4ea7-9ac9-ecef76e79db3","block_type":"box","text":"eventually be satisfied.","page_number":86,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"53818b31-a13d-4bcd-9739-b0dc3168ad6c","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":86,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"0afc6b37-cc45-43f6-94da-3e28638b36d5","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":86,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"e7efbd19-2de5-43d9-9e3e-7b19b72a0fab","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":86,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"3d0428fc-ee44-4962-8f2a-d639c18f4b8e","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":86,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"993e352d-e398-4550-bbbb-9d375f7b881d","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":86,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"361f2ce3-320a-4f82-946a-6bb4bae817f6","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":86,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"0cf65644-0eb8-446a-bbec-912166abf99f","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":86,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"c7c1961a-1294-4b6a-9f56-3503989a7767","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":86,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"ae91aa99-b731-43f7-8bab-a9606b821cec","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":86,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"01362b7a-0b5d-4133-a9d7-e66cfd42071f","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":86,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"85424428-aa9f-4aaa-a774-ff76fa2b9daa","block_type":"box","text":"and debentures conver tible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":86,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"3b1aa9c7-a8cf-4483-b677-cba36e0c4099","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":86,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"7fface43-56a4-4cba-914c-a3c17602e694","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":86,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"85ecb12e-2cd4-43e7-beeb-f941cb5a2c06","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":86,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"1ee6423f-5c55-4e49-9377-ff10dcddc570","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":86,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"4bf6f458-8d8d-408f-84b1-f41fde654a78","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":86,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"8e779659-bac2-4909-99f9-517504c8c4f4","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":86,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"01fe773d-0a88-48e2-8d35-c5128b18db4e","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":86,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"651ca7c1-90e2-4c38-a74a-0fb87742a2a6","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":86,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"8ae91d86-4c7a-46cd-8adf-823740b4d1e2","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":86,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"2536a6f2-2d11-4492-b557-18a3f524f6b3","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":86,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"cb0bbb16-7d69-46dc-a50e-9e13a177f4fb","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":86,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"4fa48894-5ad5-4e93-980c-b668c58a6683","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":86,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"387909c8-92cd-4e54-acbb-038f5f18a419","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":86,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"2f46c42a-3cef-467d-b222-a27504966ae5","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":86,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"495413dc-7e99-4b1f-ac81-1824bce1dae5","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":86,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"f791d5bb-65f3-4324-b1da-e62e594b440e","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":86,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"99111ad2-b18b-4622-b685-795957930048","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":86,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"d4af8673-cef5-4217-bce5-2173cc616790","block_type":"box","text":"that assumed generally by an investor.","page_number":86,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"b56f9b37-dbaf-436f-bda4-001d96ba035f","block_type":"box","text":"II-48","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a31015bd-9b0f-4313-891f-587178d2e5a7","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"04813495-2b7b-4e1d-8495-386b21691834","block_type":"box","text":"Lease Obligations.","page_number":87,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"7826a925-c151-4533-859a-9082728b3acb","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":87,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"b92c9d70-b0b4-4265-abc3-52b992ac6006","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":87,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"ab04bbaa-8c43-4042-9c20-4c422bf44e88","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":87,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"28370f6e-ec63-486c-bdb0-aefe0cb3f0b9","block_type":"box","text":"Life Settlement Investments.","page_number":87,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"49f6f334-1d29-4938-b4fe-78429be29ef0","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":87,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"a720fe67-c854-4379-a08b-da45211091bc","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":87,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"d8b27b6c-207b-484c-ba0e-d03af3025c9c","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":87,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"5b6dc625-15cd-49ff-984f-a03fdffc1d3f","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":87,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"1e6d06d1-c018-4ef5-ac7a-d2a386b71061","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":87,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"4267d8d2-67c0-4333-8bf1-9f7c79a117d2","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":87,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"ce3f89fe-6f94-4d14-bdd4-22f91c56c7d0","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":87,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"c7769aa5-9a9d-4317-942a-badad34c314c","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":87,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"29cdfd58-9602-4445-8462-f9086c85b449","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":87,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"648adc04-42f3-4e4a-b75c-d5e1b943d78f","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":87,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"b4dc1896-df2a-412e-8431-ddeb4ebb5731","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":87,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"07a326c0-8ccd-438e-883b-88b0e33851e9","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":87,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"0114868c-e663-4b52-8ad8-ac983adb4b9b","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":87,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"05a7e3d9-27c8-4496-96cd-982d7f12ef80","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":87,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"2f3a9383-ad53-44da-8c79-e8a4f0d31279","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":87,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"55178d20-a43f-4e76-914e-0265695948b1","block_type":"box","text":"Liquidity Risk Management.","page_number":87,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"60fd9846-a15a-45e0-b095-c2cb281c32c8","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":87,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"18c02a53-3ab8-4673-9c02-7a0326bf058b","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":87,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"42b1f18b-69d9-4a20-b9c2-4eac79d807d9","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":87,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"a8ab778f-4113-4bd4-a062-573d1e6bc1a0","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":87,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"5efba2c5-cf7b-43ef-bc14-99dfcc4d5325","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":87,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"89e2dd32-aef4-4bb0-bbed-ce28c7ba33f6","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":87,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"eee24f67-23a5-4bf9-9779-700a94e91694","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":87,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"d6b50388-6dd1-4c98-8ec7-11c939882cdc","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":87,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"6963e490-5d18-40f2-92c1-3b34d773d71b","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":87,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"edec8f27-92cd-48ae-8333-22e473a496dc","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":87,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"a3c8ee25-4c12-4fa7-aae7-67bd02a3fd95","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":87,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"f82f3e79-b47c-4593-ab96-a950f9af70ab","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":87,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"614eb6f0-001a-4e17-889c-eadf46475e00","block_type":"box","text":"Master Limited Partnerships.","page_number":87,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"a7ae68bb-3376-4fbf-b84d-67da29b5ca04","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":87,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"5fb8fe13-1f31-4fa6-8892-45703df0a3ae","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":87,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"38a062d2-4981-4a04-90c6-86ef6250ff7a","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":87,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"43e83318-e6f2-416b-adc4-ac0d2fc044bd","block_type":"box","text":"pipelines transpor ting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":87,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"e923ef48-2f65-4703-b912-ac88c0365293","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":87,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"afece279-f4b7-4a54-bf0b-bdf50e8c7a21","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":87,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"f10feed6-a8df-492b-9002-613897dbe4da","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":87,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"c2952f18-32d8-42f4-83b8-0ba9c94c38d2","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":87,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"0f615dbb-4e1a-4cb8-9610-879b2b019423","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":87,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"bfad632c-5ac8-49f8-818a-38f938b034f4","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":87,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"b9d1d924-3f3f-4506-a577-f546d2d25d44","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":87,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"cc4df295-aa2e-45e6-bd8b-d61ae51fa9cb","block_type":"box","text":"in the par tnership’s operations and management.","page_number":87,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"34b331d0-abf6-429e-8194-88e7e419557d","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":87,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"86eb2ea1-e3df-452b-b2e1-d68732a95886","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":87,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"2694eeac-68cd-4192-a0ca-6674a49dd881","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":87,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"bf6e93f7-5e83-414a-bb18-807074113fd9","block_type":"box","text":"Once common and general par tner interests have been paid, subordinated units receive distributions of up to the","page_number":87,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"f0f8a6f7-619d-4c79-8404-4ecba75e5b32","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":87,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"80b2b509-feb1-425b-a353-c3b6ba542c74","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":87,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"09fd17ff-1e47-4ddf-9004-109aab1ff286","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":87,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"49ff92d7-c3bb-44d7-8ee2-034728d8762d","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":87,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"7de6d34f-11e2-44cd-997d-65a3cc38e07a","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":87,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"1462c02c-b72e-4f03-87d6-5330da3cd22a","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":87,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"d12893ee-d425-4cdb-927d-e7932e84b65f","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":87,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"f7d2be1f-9fb9-495b-86a3-72e2597d21c2","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":87,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"b9ce6082-57c1-4e76-b63a-2ca10eff86de","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":87,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"c84b72d4-2381-419a-bbb2-5f0cc0315bb9","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":87,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"0b6a7433-53f4-4304-8b5a-79abe001f944","block_type":"box","text":"II-49","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a66b300e-3efc-4c14-9017-658f12d35c76","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"878fc8ef-cdeb-40cb-ad59-c13c460fdb3b","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":88,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"a4fc191f-4e42-4a52-82f4-80777eeec1bd","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":88,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"7cb9a855-a218-495d-8a08-c9ec42f450c4","block_type":"box","text":"success of the MLP. Cer tain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":88,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"dda2e137-5842-42a6-b148-f71b0b8b5c65","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":88,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"8605c34f-5d98-4e9f-88c1-73732cbe2d88","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":88,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"f93014e7-8048-4905-bae8-e79793794272","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":88,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"2d4dca88-1b6f-4d45-9bdd-948c83f25b3b","block_type":"box","text":"Merger Transaction Risk.","page_number":88,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"fcc7ddd5-dbbb-4cf2-8c31-2a90ab7df341","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":88,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"0d3dd154-6acd-4c01-8f53-be932f942d9b","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":88,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"c1bb24df-a484-455f-8337-8a78db1fcaed","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":88,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"a0a232e8-77da-454c-89e7-605f5aef12a1","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":88,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"14834eed-eb9a-469c-bf43-9d63bb9fc90f","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":88,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"905b493a-3693-4307-a6e6-1aca01be7d8d","block_type":"box","text":"the Fund and may lose significant value.","page_number":88,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"1949082b-9cc9-48b6-9227-691022007219","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":88,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"b576af25-5804-4673-ac30-59d0a60bb981","block_type":"box","text":"Cer tain","page_number":88,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"9e65aad5-d373-43b3-8279-e7369b3db398","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":88,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"1a36ac81-9260-47a2-86f2-a59bc625191d","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":88,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"b207e99b-c49f-4b55-a3a9-d47783786f3e","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":88,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"8c585a19-4947-4dd3-a747-8a89cc1659cc","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":88,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"592bec55-d699-4d7b-b557-3db885d20f9c","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":88,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"082bef80-7af5-4699-bc70-f2fc3b2bd90a","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":88,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"9a53339c-594c-4ce3-8187-6e79f98122a7","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":88,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"57271107-14c5-43f4-8a43-73910ff0ee07","block_type":"box","text":"branches of domestic banks.","page_number":88,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"cbc72705-7c7b-4726-9cbc-784d2266e13f","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":88,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"43f90ae9-bf6b-42dc-93bc-0d39a2894c9c","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":88,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"b0332866-b8d2-4cdc-b469-377e1c09854d","block_type":"box","text":"Canadian counterpar ts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":88,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"ba84db09-68b0-4988-ab4b-094e06dc6007","block_type":"box","text":"paper of a foreign issuer.","page_number":88,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"d2c8b655-6cf1-4cdb-9b79-6ba58b2a604e","block_type":"box","text":"Money Market Securities.","page_number":88,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"8455d177-40fe-49ad-8d95-8125c1956b90","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":88,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"4d54626c-fcf6-484b-b587-826ce9038282","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":88,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"7512285a-2913-4ccc-bede-b47f59070f97","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":88,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"b1538d51-08c7-4a60-8acb-373e133c4e06","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":88,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"54487437-faf4-4967-96f7-c9dec8e0ee97","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":88,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"184ea112-f2dd-422e-993b-b362a328c7ba","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":88,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"ae369cea-9584-44e7-b9a2-2640cdacafe8","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":88,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"e43f5699-aab9-4000-9803-0a0c450b0252","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":88,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"759c65b1-8e84-4ea6-a942-15884bfbf008","block_type":"box","text":"agencies;","page_number":88,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"ff9992be-0909-4317-b0aa-5ffeb6d74d8e","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":88,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"7fe61209-3dba-4ccf-8cf8-349c884f5925","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":88,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"9afa76f1-f419-451e-9609-8bb21297b9d0","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":88,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"73939f93-8bfa-4197-ad93-b936762b4da8","block_type":"box","text":"obligations and credit card receivables);","page_number":88,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"0de484e0-d99b-455b-8338-6a91421752eb","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":88,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"8f81757c-8961-42b3-9e1a-a6d2e66b91f9","block_type":"box","text":"authorities and related custodial receipts;","page_number":88,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"5a6288dd-50b3-4031-b431-b66399adae61","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":88,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"7500af7c-a158-4aaa-857f-5f565752e90e","block_type":"box","text":"agencies or authorities;","page_number":88,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"c477306e-155c-40d5-8d0d-b874149850c8","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":88,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"35c40c0b-f920-4b8b-8b5b-899c8e6dda6f","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":88,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"f6df7b14-af47-4f6d-8135-20fef2817908","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":88,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"9b3a8284-309e-43b3-a6c9-e5ca2704a363","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":88,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"961e8a62-bcbc-4cb8-885d-e362df1c7d4a","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":88,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"877cb497-4616-4574-9924-617dffa294e7","block_type":"box","text":"States;","page_number":88,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"53342bc4-ee87-4cd1-b5e5-f61cad5b3860","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":88,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"20285402-3835-40b4-b560-38d6d9ad0d33","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":88,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"b9186080-8481-40ab-8eee-9a918f7cec77","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":88,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"c6d490d0-1d4b-425b-b5a7-1cd74499490d","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":88,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"14ec0c1b-796e-4871-b096-ec6b1994139c","block_type":"box","text":"II-50","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"99f7ffb7-c191-409b-bba6-171a31983973","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"156ffd67-ab4e-4471-a095-6da373ee0dc8","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":89,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"c9494c1c-c87d-44f7-b543-30809b9bf82b","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":89,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"e1abaafa-5097-4dbf-9e01-f7bb93042cd6","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":89,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"1992d519-dcd4-4680-ba45-1544047e7fac","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":89,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"885068a3-84dc-4225-864c-7bfdb8f26e1e","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":89,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"6148c4df-7a9f-41a3-aac0-c821741c44ec","block_type":"box","text":"States.","page_number":89,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"f587384c-58cf-4cb4-928f-62a920b76d4d","block_type":"box","text":"Mortgage-Related Securities.","page_number":89,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"8cb1e7ae-1e7b-4361-a0d1-129c177817dc","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":89,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"68dd6085-0b49-4e75-898a-9a7d752c8469","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":89,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"df0f1611-78ed-465a-b21a-5d440ea29e45","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":89,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"592fff29-7419-4476-870b-6b922276b64e","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":89,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"ba3741bc-d80d-4c04-9ad1-824220b915bf","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":89,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"2d650902-517c-41f2-9711-887afbdd0e27","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":89,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"dacb3395-90fb-47e7-b447-e41c3a48a920","block_type":"box","text":"maturity or specified call dates.","page_number":89,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"b56468be-3eff-42fb-9e1c-5680e8f2be4f","block_type":"box","text":"Mor tgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":89,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"25bf0897-078f-4cdd-82b6-ffe7d84b61f3","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":89,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"da6389c6-ffee-42ae-863d-b6e9645eb43b","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":89,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"c851fc5f-d9e0-45e5-9be2-50cb5d65a84d","block_type":"box","text":"par ty to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":89,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"3c53a82e-7efc-459f-b94f-ba6d04860f07","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":89,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"0a50c5b7-693a-4122-828e-de53ac2be4b5","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":89,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"8cc379c9-f475-4112-a50b-2fc38c601808","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":89,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"fe9aa89d-f72e-434b-95ce-55d48ea19a2f","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":89,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"6824aa64-61d1-4b18-9b06-3053d7f1d2bc","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":89,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"2a325ffe-6e04-4a66-8cb0-81acc43fd1fb","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":89,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"1e79ae92-6583-439e-91c9-53852e9d3137","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":89,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"1f589257-dd3d-40c9-8efb-aec50c1f2a30","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":89,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"fc920fd4-1c04-4bd7-bd0c-a72ff78d97a9","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":89,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"97551eb4-1b32-421b-80f4-ee18675e3378","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":89,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"63181c1d-bbc2-42e4-8949-286c2a9ff8b7","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":89,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"9e7c04ee-dc32-4379-bb92-61a19e34be88","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":89,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"3e1cc27e-f821-454a-b542-049e4cfb11f8","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":89,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"07c946b7-719e-4065-87f3-117d03fea52a","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":89,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"24a888fc-be63-4a1f-ad34-fe7f49133973","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":89,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"bad83f15-dc39-4dcc-b2c1-3f33b0fe4904","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":89,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"6c8f45a9-6cb7-4f19-8219-eb7e1285797a","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":89,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"6a7f0705-d021-472e-b2c9-8866937a037c","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":89,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"ed8fb8f9-ca49-470d-a039-9a5e4640cfcc","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":89,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"51289977-3c01-44a8-b67d-692ef333beee","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":89,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"73ad87fc-d144-48f6-8cb5-1f99b0dcd7ad","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":89,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"2717436f-1772-4415-be6f-bc606a9622e7","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":89,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"991cf7e9-ddde-4ca3-9785-cfca934f577d","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":89,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"18afa7ad-b531-4e1d-b977-adb9864a070b","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":89,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"390fc075-d2de-4a57-9ab7-5d27ed3b163a","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":89,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"aebe1fc8-40e4-4b71-a4f1-4dde23b59eb5","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":89,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"24029a30-a5c2-4a75-be75-ff3d11b09de8","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":89,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"6d76b343-902f-49db-8712-daa294b6034c","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":89,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"8c9d9786-59e1-44f9-a3bd-097334f97be2","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":89,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"9af562eb-c950-4944-b547-4bcf4df4c4e2","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":89,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"e96622be-33fa-49c0-ae08-83f288918e4c","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":89,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"5a25da6f-0494-4040-b4c9-212edce47cf4","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":89,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"3ee55279-dd07-4a5c-b708-e7122368149a","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":89,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"430cabfa-3727-423e-9292-cc25f812cdd0","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":89,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"283f0d0a-b25f-43f4-bc03-d49c8bd28065","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":89,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"f1c6d21d-2870-4c04-ba2d-aaff329fd9b7","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":89,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"36602f7e-b2a2-481d-901e-03e4b1ce089e","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":89,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"a927f401-5ba7-408f-b843-cccb93a85b73","block_type":"box","text":"II-51","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f98bb604-95e3-4aa5-ae2b-c77c6140040a","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bc3a31e2-6235-42e2-b4a5-993ef6022b2c","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":90,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"bda20d8e-d677-41b0-b94f-3b33e248bd9e","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":90,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"5da1dcf5-a4ee-4d50-926e-825128346a43","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":90,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"fc42fa26-3b1b-4043-8553-5be86559abf2","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":90,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"cc2577aa-4329-4650-959c-c00e7c1309c2","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":90,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"1c9f6d00-feaf-4538-aa19-a9ffdc6ae064","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":90,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"36153b27-6384-4de4-874a-ad9996bc545b","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":90,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"5bdbd282-c4f6-4023-b99a-48604bf190db","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":90,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"f291b89c-019c-44e6-b005-74d19470215f","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":90,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"35bd8d7f-9200-41e7-a2c3-d7a3b8f60824","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":90,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"0bffbb26-331c-499a-938a-68e681faf55b","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":90,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"8e39c4bb-7e7b-45bd-b25f-d6aa673275e1","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":90,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"94fd10ca-518b-483e-bc2f-330001901ccc","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":90,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"b8bb843b-946d-449f-9653-88858cd81592","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":90,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"996da32f-1381-4b5d-a7ac-9c15251ff050","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":90,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"e88d5bde-a963-4508-a196-0a99780fde4d","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":90,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"fdc5eaab-0c24-4813-9953-b18db161239e","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":90,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"2a4204e2-ac1d-4d23-a801-7c3f0c565273","block_type":"box","text":"Private mor tgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":90,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"bf517735-7206-4d96-8376-7cb8cdda7c1e","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":90,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"97e0c5a7-c78a-4d7c-8812-244b03aae68d","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":90,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"053bcf49-04f2-486a-ae12-6281054083bc","block_type":"box","text":"Pools created by private mor tgage pass-through issuers generally offer a higher rate of interest than government","page_number":90,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"de8acc94-373f-4bb3-a118-3d4c46a2e7d4","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":90,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"034504b2-ae37-4b94-9b85-2abb77d84c8e","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":90,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"e034d0f4-2de6-43fb-b1d8-9a0849e08def","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":90,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"2c73b9f2-2053-46a4-a79e-b9ca935d9cf5","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":90,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"584235d0-8301-43a3-ae1a-e2567562a833","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":90,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"080092aa-000e-4864-a50d-18afc43e915e","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":90,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"8f24923e-2418-434d-a20c-54e0c87c8cb8","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":90,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"da900fd2-6305-4f7e-a926-e61024a4e1f5","block_type":"box","text":"mor tgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":90,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"bca605c3-4e66-40da-a10a-91d1bf819085","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":90,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"f01323d4-6ede-4159-a67f-515cfffc6717","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":90,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"d11b6f51-4821-4f54-948d-f73fcf6dab38","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":90,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"31a2c0ca-3906-48e3-9472-ab94f1d796ea","block_type":"box","text":"In addition, mor tgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":90,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"0328f94b-a6a7-4302-b8cf-a248f512dc1a","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":90,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"fdec647c-e1c3-4a9b-a21d-a822fbec021a","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":90,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"bd800b6a-f5d9-415c-9e15-9fc2b00283d1","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":90,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"db78052a-7b88-4446-8ae6-741c78aff61b","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":90,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"00cdd53c-9e33-4284-8a3e-88563462d1c2","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":90,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"c1ad467a-7159-4782-821a-ce6713f59b39","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":90,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"391fc312-e577-4794-9bbd-b2647791d260","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":90,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"80319fa3-a556-4c7e-83ad-7351860a1909","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":90,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"c99eb4a6-95a2-41e2-9051-06ef6293f65d","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":90,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"6a5585c3-6d89-4708-9a45-26ac61d28bf5","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":90,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"97c1c929-fbd0-4797-8383-442a034a02bb","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":90,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"6899c0e2-2525-4b89-b302-a1a2c554269b","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":90,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"9e161841-dd76-4ff3-85be-7fb6468061be","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":90,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"bf59a9ca-b46f-43d1-90a1-e89e99c26452","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":90,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"cd1f5287-11c1-41d5-938d-83970c073fb0","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":90,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"cdb0a0e4-5b8b-4e3c-b3c4-005f7c5f11fb","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":90,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"c6be52a6-8ce7-42c7-95f0-f066fccf3849","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":90,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"fa7db350-b3d2-4302-b18e-aacd75f096bc","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":90,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"3f606981-805a-48ce-b1a5-d04eef0f9ba7","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":90,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"ff283524-9637-4cfd-b5ac-797ec587a9cc","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":90,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"ecbf76dd-1003-440f-89dd-b72cadf91d45","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":90,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"fb90e61b-8b84-4510-96f2-a6f6de56fb33","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":90,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"cdb6b6f2-9de6-4b5d-b272-0b53bd15c6b6","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":90,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"32e61c8d-1d20-4f92-ad07-bd6b01ca804c","block_type":"box","text":"II-52","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c3217556-56ea-4876-adaf-594ac0b87254","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c8c6c8ba-7780-43cc-b660-25520b10ab3d","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":91,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"3cd8c336-969c-4e36-89b9-09d85add2569","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":91,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"3e988886-1b6e-46a0-936d-432b1e34c6c9","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":91,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"bc0bd80a-0bd2-4b48-8d1e-6deaf9f0114e","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":91,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"d9085964-37e9-4698-94f9-ca3fa25f1d53","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":91,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"349afb9a-76c4-49f3-8317-2bde3ab5c9fb","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":91,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"4b97a17a-f045-4127-8719-e8290cec76ff","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":91,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"f41e9c3a-676b-4308-a445-371b3e4c636e","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":91,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"bccd2d6a-d8ab-4d07-9983-28bdc57ffc37","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":91,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"71433506-4934-4b3b-b7e1-12dc9172e856","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":91,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"1910ad42-b691-4380-8085-02b17840e6c8","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":91,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"41777613-2807-42d1-a84b-16193456d101","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":91,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"30364bd2-0c17-4b75-97dc-cf27c252a01a","block_type":"box","text":"of principal because of the sequential payments.","page_number":91,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"bc4ecd12-7efa-4a44-a3d3-bc6ad730a3a4","block_type":"box","text":"Cer tain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":91,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"338e5f0e-1a43-4bbe-b026-867954d8dab0","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":91,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"5dfa6fd7-94e5-4d4d-bbbd-e355136b6f9b","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":91,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"814e46fb-070f-46c3-9ce1-69dae700eb9f","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":91,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"3480cf3b-0a2c-4a93-901c-2f718b6c065b","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":91,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"0c1cbff9-9a29-4546-b4fd-3addcc2b52f2","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":91,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"2aa21dd0-cc4b-40df-a8b9-0a22ce76b91c","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":91,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"9f3bd70e-90c9-482c-a629-05a3e5a6a66a","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":91,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"0c5413b6-eb28-4fb3-a812-a7f0db06f46d","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":91,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"fbb45f80-e189-4a55-bd25-c2988d3e4243","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":91,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"eb69b9b9-cfbb-45e9-b4e1-72aa62c9cc05","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":91,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"a64eedaa-2c9b-43f8-b8db-88eb87be8272","block_type":"box","text":"securities of any single such entity.","page_number":91,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"c0425041-5aba-4832-a478-22665ba972fa","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":91,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"992f573d-8b06-4741-a4f2-156b22cf1ea2","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":91,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"b19ca1b5-7e2f-469c-84f7-8333324ecffc","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":91,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"e957a571-2177-4a77-9b9b-2b0507385ad1","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":91,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"4c044c8d-4115-4d42-ba06-de0d94f6424d","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":91,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"836eb203-185c-4281-8945-01de4c6b6810","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":91,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"9f063fbf-7348-44d4-9d8a-a60cd7c4b26a","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":91,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"c8475958-1271-4d9c-9c70-4723ff0bce64","block_type":"box","text":"and are conver ted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":91,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"033c22ac-31b3-4ff1-a393-37d4acb27b7e","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":91,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"b8b848fb-1872-409d-bfb4-facfa1043dcc","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":91,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"f4717651-d292-4a89-994f-c44342f049d3","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":91,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"26a1f628-caaf-4eec-806d-896a31e139b9","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":91,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"051f27c1-8e19-4539-beb5-3f0025813908","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":91,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"977b3d96-2416-419d-aa37-3cbfd5ad4ba5","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":91,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"ce20d57f-da9c-484a-bc82-9d0de669147d","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":91,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"18d7dc17-dd33-4f45-8413-9be1c9e8a13b","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":91,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"ceb3e596-4b81-4ad8-833f-530b21b5537e","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":91,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"b95de9fa-a94c-46af-878f-5986f7cfb100","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":91,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"f1ab56b9-9dc9-42a7-9544-62d5a91cedc4","block_type":"box","text":"classes.","page_number":91,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"2e5e8505-297f-45d5-af89-facbfc118c60","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":91,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"a775145e-d02d-4e24-a842-3c0183909714","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":91,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"6d057bed-74f8-4d5d-a2eb-c5b436e98f53","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":91,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"5b0a3b72-21a7-440f-bffb-2a667b2db3d9","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":91,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"ee9e66aa-ac31-41f7-bb1d-b887f189b4ce","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":91,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"60b64279-260a-449a-b2ea-a8a3f849966a","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":91,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"50190476-2030-4439-9454-f5b82eb12e1d","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":91,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"7da3a47f-6716-4462-bcb9-8b1807ca4b8d","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":91,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"0a87a446-eb6c-4a26-ad64-d3d449419096","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":91,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"766f8c69-2857-4089-96a5-2d284a2ba994","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":91,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"73e68c64-e446-4e2c-85c3-a6ffe9edb879","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":91,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"a203de65-2e3d-48a5-871c-84f14617ad54","block_type":"box","text":"to a designated benchmark index.","page_number":91,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"4fe6b490-f877-43f6-b50d-a33d51844ee9","block_type":"box","text":"II-53","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"158efbed-7fc7-4452-bf85-02254184583c","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0ca8b527-00b4-47f6-8faf-5a22f294899d","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":92,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"8626c66d-bb42-4742-9d75-90f479b6c01f","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":92,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"c58e08e7-3910-4879-8b2c-56e6ab21952e","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":92,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"0fa747d7-21b0-4b31-b749-709a6062d3b2","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":92,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"79f6ca98-0bf5-4f96-8d16-4c4473d6c7c4","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":92,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"17671668-1e0c-40d7-90a5-56f35e6efc56","block_type":"box","text":"Cer tain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":92,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"d1dae94d-b9a9-4f27-8208-08c8e60f8d72","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":92,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"e46e941d-f3e7-4a65-9134-8f30a647e79b","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":92,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"73672831-fd21-41fc-9802-f49ad9a9c3be","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":92,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"9407b3af-b31b-49da-99ca-ca179001286c","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":92,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"58dc3eae-2af2-4b79-99e5-7da2d3627eea","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":92,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"eeb6024f-f62d-493c-9ac3-53cc30c78d40","block_type":"box","text":"CMO Residuals.","page_number":92,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"e2af3ed0-0485-45a7-875d-3a2000415bce","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":92,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"d53d8b9f-23a6-4b16-b701-7b93c9ac55a7","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":92,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"646b1f5a-01af-4e0d-97d8-c94b0098ee53","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":92,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"e2c4b429-5550-481e-9e37-b0486f9c9811","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":92,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"a58fe283-787e-4634-bcff-8de2c377239a","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":92,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"4dc99cdd-28f2-4019-8132-027aaa954013","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":92,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"5c4a27a3-4f3e-4e3b-a858-e62490b2d4d7","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":92,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"c4c5771e-961a-4af3-bf91-ef578769d7db","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":92,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"553cc952-1bf2-4131-8f8f-d7870871f866","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":92,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"6de35aea-f037-4e9f-96eb-0d9c2a793554","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":92,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"5ceed009-3088-4bd2-b476-6f5486a56aff","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":92,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"ac56e323-5cb8-436c-9d57-19b1e7b76df8","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":92,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"6356051f-dc1f-41b8-a7cc-a30768ba1a8d","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":92,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"b9abe589-3b5c-4f95-a57b-437654650636","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":92,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"8fc3e2e9-c26e-4f4e-88c3-dbbfc19bb4c3","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":92,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"95ac1869-a1d7-4015-98f3-272ac8e86164","block_type":"box","text":"a CMO residual.","page_number":92,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"3a868c74-50ad-465b-bab3-8399ee100e91","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":92,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"c59df6ad-4c2c-4181-8fba-0389f22aa9b9","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":92,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"76282334-403e-4565-913f-fd51f48a5e54","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":92,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"acef7e30-047c-4ab3-bfe5-434b7fc90600","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":92,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"284cdbc6-105e-40d3-95f1-c5f824255832","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":92,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"6342fce1-3a00-4121-b565-033392dfef4c","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":92,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"f0f11245-433d-48a0-8f42-f2711976b07b","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":92,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"d97be202-da71-4d1e-a1d0-33302d000801","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":92,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"14da63df-a496-408b-8c8d-e3b514d0c146","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":92,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"0f6e4ec6-8e4f-47f3-a353-eefd9a547878","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":92,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"d4e43ad0-de35-4312-bc00-9b3474f4b651","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":92,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"65fe630f-7f27-47f6-9a81-dc9c3af7c416","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":92,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"8c0b49b7-249f-45b8-ae5d-4c912c3c8609","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":92,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"55778da5-a819-44ac-894d-c2e88431c759","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":92,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"042cff71-0306-42a2-9998-4e2ce78ff0c5","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":92,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"b6919bea-ac27-44ba-a178-b7586277463d","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":92,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"ce5f6093-35ae-4aa5-96fa-fc9c66d3ae3d","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":92,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"f55ec22e-add3-4949-8712-c943ea170ab1","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":92,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"92b99a4e-0bfa-4a18-8409-a39f79326ecc","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":92,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"12e01992-10dd-4419-a4eb-8c19cc7c32a6","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":92,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"77c9cbc0-4025-42e2-b9d7-92de527941bc","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":92,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"6cb6ce52-c029-4e6f-951b-fd84dfb49c31","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":92,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"5ad68ff9-fa63-42d3-955e-8128ca42eea6","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":92,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"588a6686-5c81-4694-9f0a-991cf22a2021","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":92,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"47ce160e-afe8-4297-8880-159aacf657d7","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":92,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"a727ed42-f769-4ae5-981a-bb2df7c03048","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":92,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"b6d7f180-ea0f-4bd1-b88a-b0e6a228ee99","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":92,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"b9c14d0c-c158-4745-9248-c5636346c965","block_type":"box","text":"Tiered Index Bonds.","page_number":92,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"1dc4b84a-f7b9-46b9-8faf-941bf954af33","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":92,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"a30a8b47-5480-45a6-9e08-d3e693446a54","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":92,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"51df0226-03ff-46db-94d8-65d90c1dbdd6","block_type":"box","text":"II-54","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c305f292-a239-4090-8653-cd375656791c","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f8c5cd11-bdc8-48a3-a603-f03ef2b1f0d2","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":93,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"e52d7423-37a5-4890-be94-b14eec02af52","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":93,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"fd8936ca-b18b-4d56-b44c-33d3412b1caa","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":93,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"dca461f3-6f17-4dbd-9b21-3bd219ce1e2a","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":93,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"379178b5-03ef-47a0-9677-dc2f454d9106","block_type":"box","text":"that of a fixed-rate bond.","page_number":93,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"eedd8966-dcec-449b-863b-a7df39ce3547","block_type":"box","text":"TBA Commitments.","page_number":93,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"03a1e4c1-43a6-4338-b8db-1b5e007e7976","block_type":"box","text":"Cer tain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":93,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"c11ee27e-eb84-438f-b60b-925cd88939b6","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":93,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"140be905-b632-4582-b4e8-7704026d71b3","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":93,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"937b7ea4-aeb5-437b-b322-28a446ba1e38","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":93,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"25ba6c39-0e6c-4daa-b29d-e5f32f172b7a","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":93,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"83aa058b-5fd1-4ca4-b851-0fff7321b93b","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":93,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"306203ab-c2f4-4d12-bef3-e6ca01b886b4","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":93,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"5d8c4eab-adc5-479d-b4f0-6378a63c3b2b","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":93,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"4165d7b9-9956-4a0f-8ce6-44b5a4fbe310","block_type":"box","text":"below.","page_number":93,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"8c789b72-9ec2-48cd-ab56-f20d3a9d6131","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":93,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"c4952c77-16fe-40a7-9ff1-12cfeb583bec","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":93,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"04186082-06b0-48f7-9d8f-ed69d6e0f476","block_type":"box","text":"Fund sells mor tgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":93,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"1e0fc934-4492-451d-b811-fc23a52b2b75","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":93,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"6cf1bdb3-896a-41bc-a379-a01b72d55534","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":93,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"a9319c2f-96b5-465b-905a-da6385931c89","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":93,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"2ca59d5b-cc5e-48cc-9d28-a9a36f433617","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":93,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"32273771-bc3d-437b-863b-eaa8eef25f44","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":93,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"bc37b32c-c726-444f-bdff-2870ce526e2e","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":93,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"5cc436fb-dee9-4cc9-ace1-366eb20fe2b6","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":93,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"1eca866b-4171-464d-aee4-bff96e982d73","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":93,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"e092113a-1dbd-48f6-8974-46cc003f6455","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":93,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"0a4f4b5d-5fc8-4a3c-bf0f-c945b59ac185","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":93,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"38900837-c7e2-44f5-8a5a-49b04d8f567a","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":93,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"6b9fa711-42ac-4bd2-9d92-afbea9c1879c","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":93,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"4adfca5b-2f91-4d65-bfd2-1bfe294a6b21","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":93,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"2e24102f-8c40-4597-ad11-6654a67f6fe1","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":93,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"5f06dfcd-e8a2-4c0b-a33e-9dc73b629112","block_type":"box","text":"securities in the forward transaction.","page_number":93,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"3a8fd9cc-3747-43b8-b63e-a532f863cbc6","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":93,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"a89d50b5-32b5-410e-8fbf-e93f2833a534","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":93,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"a9bcbc72-fbe9-4968-babd-c4e0e6f79067","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":93,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"1a6124fa-aef9-4dc5-8c9e-ad6c69222cc0","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":93,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"8bc73090-d174-4b8b-8037-fdbf023640f3","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":93,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"29952969-81a6-4dd2-a66e-02c90e45f991","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":93,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"6d76e5bf-29ea-4047-a78d-2fcba75a719b","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":93,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"3fc4218c-d313-425d-98a2-9f1a33e8d4c8","block_type":"box","text":"securities (","page_number":93,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"d383be6d-0312-4540-b019-ffefa001909f","block_type":"box","text":"e.g.","page_number":93,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"c68844a0-d4f0-497d-9d38-5bbeedb4b1b0","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":93,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"bd46b44e-319c-49e3-a500-d1bafd3d3c97","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":93,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"10cdd417-bb7d-425b-9ea6-41adea25264d","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":93,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"8ad110b0-0ca5-40cc-b537-0c573f5af975","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":93,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"9760e5ff-85c7-44fa-87de-aa0b1232338f","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":93,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"d7804011-d339-4c00-bf7b-3ef2f4eeea1d","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":93,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"c21201c2-0b25-46e4-b354-f0503a117c8a","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":93,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"1238648a-9c50-4edc-81c9-39d7327ce80f","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":93,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"d7a15625-b5f7-4e75-8764-10d0024a18d9","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":93,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"2c30d1d5-05c6-4d87-a89b-59cb557d76ee","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":93,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"1e444c96-b74c-4be7-b585-ca566429fd1e","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":93,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"71863402-5175-4f50-8096-e9712d6fa31b","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":93,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"f6e2be08-e01f-4040-9e6e-c14b9c1de85b","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":93,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"9e00d1ba-c0d6-4f0d-9419-462ce5b67754","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":93,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"84a92cd5-9147-4971-8fd9-1ad34dd34f79","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":93,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"3ef9792a-7f70-42e8-b023-2200ea22b84e","block_type":"box","text":"Municipal Investments.","page_number":93,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"be3d8a58-16fe-4b64-97a3-e7ae77067433","block_type":"box","text":"II-55","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5df858d9-2210-4130-9a04-4680bda0082f","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e2fe0805-ba5c-49dd-8427-dc35bd103976","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":94,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"eafa9f32-dfad-436e-9bef-6931a8fc2c44","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":94,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"1f2043f9-a426-40ea-9e0d-e3efe4ad268c","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":94,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"9489e6c7-99e8-4f90-aaec-2fd67d1c5e40","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":94,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"635c8427-868d-4a44-b55e-00d3c2c2d7b8","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":94,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"9e7c6d8d-10e4-4dc3-81e8-75743d0df683","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":94,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"fbef11dd-e523-4eaf-b704-823312166c4d","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":94,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"33ce10f9-bcce-4a26-9479-8fa831e84991","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":94,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"08340484-3e31-44c6-9bc6-9edba1d726d7","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":94,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"af338172-ca77-4486-a377-4a49b970c447","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":94,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"edd1dec7-399e-4cfd-a59a-7cf116f41c24","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":94,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"578750fb-d799-461d-a77c-2a68b756ed25","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":94,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"c2fcada4-1397-436e-97b2-1091467e03a8","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":94,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"2c1736f8-cd0e-4337-b2b4-2a48849f22e1","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":94,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"9cc38f00-012f-4255-b9cd-90e2490ece51","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":94,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"17d0636b-409e-4c5b-8410-ebc0122aa10f","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":94,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"e34de43b-dfc1-4cae-bbd0-1c9d806ce9b5","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":94,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"0bf8c8c6-12ac-4f31-80a6-c77745974ce1","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":94,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"a83e9662-36bc-419b-af09-fe0ba468774e","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":94,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"41254ed3-08a0-4641-8c02-46c7e3a1cd69","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":94,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"26510f7d-0df7-430b-ac77-d0820db2f540","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":94,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"5334254e-14e5-4e04-b1ed-c580862ff809","block_type":"box","text":"The risks and special considerations","page_number":94,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"cca5c7dc-df6f-42ea-89ab-9b6d8f009a6d","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":94,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"d40965c0-f072-474b-b396-1dc05f7b4b9c","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":94,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"ba593a9b-37d6-4ec0-bc9c-ec584c3c69ba","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":94,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"89134796-b365-46c0-ab94-0eab625e75f7","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":94,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"d92ab442-8988-4052-9ef2-01fa7e23986b","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":94,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"32f980d3-0e68-4fc9-a8bb-4b6a584dd421","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":94,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"222d7882-7ce4-4322-896c-2667650184a9","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":94,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"4a72b606-4b84-4ce5-a91e-caac14b5133f","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":94,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"1d9ca173-a370-48e6-9f92-aec31ec0d7bc","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":94,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"e751969b-31ec-4736-91c8-054210e4413e","block_type":"box","text":"II-56","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9c7ec787-7c44-4080-95db-de362cacae74","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cbe5b8f2-4c13-42c9-9683-81d43a3b8687","block_type":"box","text":"Description of Municipal Bonds.","page_number":95,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"a2db5182-b1a9-4ae1-9cad-5933f4999ada","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":95,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"db51d85b-c614-42f5-af13-07ece870acc2","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":95,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"d40bbdd3-8102-4485-b858-67b14f5ae4ad","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":95,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"fb29b9cd-3b30-4d52-b2f2-3ae89214454e","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":95,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"1800b0e8-6c9c-4ae3-b751-f3988897e81b","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":95,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"7c7e253f-fc8e-44bc-8302-46048de629ea","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":95,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"8d2cf75b-fa35-4ff8-b83f-4fcc785d0ae1","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":95,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"53215ce9-b3f6-4164-a50d-9c9d0eb4f574","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":95,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"5428f907-f1bc-41c7-8ab0-c8d66a18a551","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":95,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"e691000c-a5e6-43e5-9f10-009cf0d9a3dd","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":95,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"86675f86-824c-4f9b-a170-e4ba0fa02f4b","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":95,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"ec4cf9e5-4195-4d4f-899d-c598499ef3d3","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":95,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"41230f25-1050-4892-8fff-68fa85aea7c6","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":95,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"4c200d96-2d52-4531-ba53-b3eea8b42643","block_type":"box","text":"General Obligation Bonds.","page_number":95,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"58571e5f-bc1d-4355-824b-cd0f37ae3b43","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":95,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"e1de08f1-31a5-4034-9ed9-50604deb282a","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":95,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"940a8adb-bd04-4940-803c-6ce919acfb60","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":95,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"6d354158-a135-4584-b52b-b60f04b490d0","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":95,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"7dd7e4ba-f044-49da-b9ce-9f2f6f419b45","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":95,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"c79c7da3-bc7c-4468-9edc-3be8d0bae088","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":95,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"2ba7a4ec-b56c-484e-8757-8b8386fc5203","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":95,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"d7bbac77-57e3-4427-a3ce-c426b258032b","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":95,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"7b7db4f9-8fd6-4275-9752-3b8ab0373be2","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":95,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"83c7314e-b296-4981-8498-bf9cfea34cb4","block_type":"box","text":"Revenue Bonds.","page_number":95,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"488104fe-e62b-4fda-9fc3-ced6f7dcadce","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":95,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"5bd4ec25-9580-4cf6-ae17-cab006a7b8fc","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":95,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"35809e49-ddc1-4a81-afe6-22f88beb7ee5","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":95,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"43719529-3e85-4256-9345-067ea770e77a","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":95,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"38eb880e-078f-4bb7-940e-8413efddf35d","block_type":"box","text":"viability of such facility or such revenue source.","page_number":95,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"bd7e7c3a-8add-4d6d-a03d-ad0fb5d2a3e2","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":95,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"5c6cb6b1-7062-4dbf-b1a3-97b6f8eebcda","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":95,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"886912b6-49f6-4e98-960a-ced33bed28fb","block_type":"box","text":"proper ties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":95,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"503d3eae-b270-4ad3-a7d6-086e1657ba22","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":95,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"0534124d-5d32-42bc-897f-72da60fbe713","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":95,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"ac190f59-c974-45f1-ac7b-277353f6089e","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":95,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"c01dcb66-0616-46e3-859f-1076cafa1750","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":95,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"38f9c733-fc04-4460-b3c6-5a4755c46ea4","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":95,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"62a08bd8-2906-4108-b07d-153bb3cf5deb","block_type":"box","text":"PABs.","page_number":95,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"b5998ac2-520d-4293-aed0-f27e404278e5","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":95,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"8bd41b97-a3ca-4c0a-92be-9773d6b13daf","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":95,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"7eaff528-4be9-4aff-8e9d-8336f8dc8937","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":95,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"0f397fc5-21a1-4fe6-b658-a3595a0a588f","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":95,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"d31b16a8-b8c5-4b5a-aee4-716dd631c766","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":95,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"05ee3c00-7874-4f1f-9802-41a1db374e8c","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":95,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"88d650b0-2948-4ac7-9db2-fc8215ac2827","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":95,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"6694ea38-bd5a-4096-80e5-8e08fd788cd7","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":95,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"c5e98064-5666-4012-8b4d-2475e1810352","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":95,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"ec380ceb-798d-4b4a-a055-e06b151ee69a","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":95,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"aa91a115-c984-41b1-af7b-99522411a247","block_type":"box","text":"the par ticular facility being financed.","page_number":95,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"dc007ebd-2ff1-472f-84d1-b99922c0d7aa","block_type":"box","text":"Moral Obligation Bonds.","page_number":95,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"92a9bfdb-b7f2-446d-8705-f4ebf393f6dc","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":95,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"2a8fff68-faac-4131-8d28-18339ee22310","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":95,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"31b55771-1fb8-4125-8f97-ed4f21c6224d","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":95,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"a7220e10-10d6-4497-a094-ca17bb7b588c","block_type":"box","text":"that issued the bonds.","page_number":95,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"94350d2f-ab84-43e4-b817-014340784d33","block_type":"box","text":"Municipal Notes.","page_number":95,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"c3f668e5-6425-4a98-b4ce-d82fb58fe031","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":95,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"9c579555-003c-4a72-a962-f04e0842f305","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":95,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"cfbd4361-06c4-411e-812d-605200204e58","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":95,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"d24ae087-2562-4c6d-be70-82a7acc91b14","block_type":"box","text":"II-57","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"124c783c-0014-4981-b066-022ab2b5401f","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ca332fe1-9271-4687-9a7f-f8a2fe1f532a","block_type":"box","text":"Municipal Commercial Paper.","page_number":96,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"fd88a685-6e9d-407b-8f10-4c072738d7b5","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":96,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"36d6b5b0-5ff1-44b6-af07-55de311001c6","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":96,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"ba79a7d0-7b46-4c66-9d49-e6a3a795eee5","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":96,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"8e33e637-7b83-41de-ba43-ba60939ffe40","block_type":"box","text":"Municipal Lease Obligations.","page_number":96,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"2888c000-f38c-4b0e-9c3a-e92036bb064b","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":96,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"9295018b-96d2-4d68-a3a7-baf103b21fad","block_type":"box","text":"par ticipation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":96,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"83dbf08c-673c-4300-a875-d4f23f473da7","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":96,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"eb3353fb-4933-4e03-9799-0b4df5f37bea","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":96,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"04415153-9b76-4242-989e-3fe76e8c2377","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":96,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"83199ef9-394d-4c33-b331-760b129dc010","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":96,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"9179ecf2-6550-4a2d-a1eb-0931091aa1dc","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":96,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"cef7039e-f9f9-4744-baa9-13fa80efdde7","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":96,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"930b5998-58a2-49d8-8a60-d9e639b444c2","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":96,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"0955970e-a66a-4834-b9e0-7b4e09250886","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":96,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"8431b6a8-f69a-4aa1-9baf-9ed0b44efb16","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":96,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"c4962e1b-a693-427f-8e96-9a1149ecb846","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":96,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"122c8760-2973-4307-bbc2-da4558fdbea8","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":96,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"b236bc17-a392-40fc-93cc-40ffb5f00ea2","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":96,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"b89b3900-4246-4608-8750-6d5b63c2a732","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":96,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"298af40a-ad19-4425-846c-3ac654889c51","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":96,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"642e673b-1805-4bd9-a686-16dee3a42343","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":96,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"42c44717-83fa-45d9-9d8d-8c87042f498f","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":96,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"a92392a3-ed56-4a72-b46d-727e26254734","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":96,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"345cfc7d-f219-4245-9a4d-afd708087233","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":96,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"6d812685-adaf-461f-82ca-4c44fd26bcc4","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":96,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"53abfdc8-2504-4fc0-bb42-c81011632fd9","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":96,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"23a35627-d81c-414c-921c-c3904b136580","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":96,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"b130a928-3b21-4742-8e97-4501abb31457","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":96,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"ccf00166-e082-4cf9-80e8-3181755e51be","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":96,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"75f84893-0ce0-497f-9434-5b45d2a82484","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":96,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"703c8411-b6a3-41e7-833c-fdc03f8eff99","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":96,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"f0d7338a-2e2c-410c-a74b-0ae7008fc9ec","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":96,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"9a7716e8-e8b1-49f7-9d3b-e87b4e7abb32","block_type":"box","text":"Tender Option Bonds.","page_number":96,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"de584c85-e5a2-4bd3-8572-3263b038599e","block_type":"box","text":"Cer tain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":96,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"ad154114-a96b-47ef-a2c9-4c9d6296f817","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":96,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"5f72db8c-24f2-4ef8-aa7a-0fa280c6c248","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":96,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"31e20612-d82a-40a3-aa9e-8be2107c67ff","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":96,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"a23c904d-80ba-4eda-9f0e-de0e1579e456","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":96,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"a0da46f6-6c7d-45ed-b61b-107caca96db2","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":96,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"c7bc99ad-367f-428e-b4d0-8654984bf047","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":96,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"162243c2-ea09-4362-b442-23aab8a4132d","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":96,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"7d24a06c-6616-436f-9ea3-c17d76faa98f","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":96,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"18cfc85f-b5d9-4a3d-a214-c95575c2cbde","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":96,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"b7dea3a4-7b36-465f-a507-72e9ba68c4a2","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":96,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"8b2edeb8-11f0-4a35-90f6-2f71b35ea602","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":96,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"24e5e8c4-02ca-4bfd-bec6-44325193dec3","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":96,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"e6ad678d-80c8-4b65-9bb7-903c87004ec0","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":96,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"a2245445-9717-4d03-8cae-b2c895d59953","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":96,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"b39f3de4-27d0-4297-b2b3-91132302bb5b","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":96,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"87a4e43b-9d01-43fd-afd0-a73a4265aafa","block_type":"box","text":"cer tain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":96,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"d541bab4-9aa1-4c75-b33d-eb7fc801b823","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":96,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"296744cd-0e4e-45ec-9f02-83976f121e47","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":96,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"39182aca-fdb0-4065-aa8c-56d13717c2c4","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":96,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"764adbdf-3122-484e-854b-e828122819d8","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":96,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"702a59c5-4ca6-4ebd-9ec6-a1fe8ab1c768","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":96,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"89bb40e1-bbc0-4d80-89dd-8dd24b5b753a","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":96,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"75d01d6a-aca4-4c95-8569-f3a38648dcc8","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":96,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"daf5c25c-4e60-4272-8aac-ec38ce55164e","block_type":"box","text":"II-58","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0c16958f-dbad-4a27-ae1e-881cbf1b600b","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fc5701cb-fd7a-4408-af61-aff645505a11","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":97,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"54830b43-41e5-4d4a-9c3f-00c8da79cbcf","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":97,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"860f20ee-b0a9-4f2e-be96-8d4adfa8a50b","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":97,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"20be6acd-3a87-4874-840e-5ad73ea67fd0","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":97,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"88155031-fd28-4468-9f5a-d4bf16bd7e5a","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":97,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"85443db8-43ca-4740-8902-5c4474e90448","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":97,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"49cca74c-d00c-4b26-bbb1-4bfd437dd46e","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":97,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"660487aa-e318-4e84-9ecd-1e22fde59a17","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":97,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"8392191f-04f3-4f49-9e33-570d352b5ee7","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":97,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"2d4f7350-0387-4815-9fdc-363071b292f7","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":97,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"5461a04d-f6de-4082-9a48-b5de8f8d70db","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":97,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"9c09bb8a-6125-40da-a4c7-b8e464d9d532","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":97,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"1a0345b0-2dda-4585-b150-f2c11070d481","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":97,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"8627469c-73da-4f4e-86ea-4be4bc91c723","block_type":"box","text":"issues.","page_number":97,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"2cc674cf-4d2c-4a9a-a634-798caafdefb1","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":97,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"aeca5faf-5a78-468c-ab3c-ba98b381f9fd","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":97,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"821b3547-02d3-4ae9-b975-cd6d12f72a2d","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":97,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"5559e28c-e8c3-4bb5-90b0-c1b90947914e","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":97,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"74ecbe4a-5b47-4b7e-a344-71a74c349322","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":97,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"b9ccbb0c-6976-4270-96e4-08f9ec927d12","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":97,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"3c6e9190-1e2b-4cef-8006-f9768d520fee","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":97,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"df0324ab-bffb-4194-a291-9052e684bc9c","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":97,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"278cc502-b4de-4128-900c-8fad8fc4cf11","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":97,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"8052b94a-1e01-4c3b-8841-ea382b0aa1c7","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":97,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"d9817206-890c-429a-a7fe-8c339425e9ca","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":97,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"8fdb3530-13d9-4400-9c7b-5ffae6c8d117","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":97,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"394ddd48-bd54-4b29-983e-610843f7b9b7","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":97,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"a19c69ea-ff4b-4b5a-8cc4-fc0671b729d9","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":97,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"39e36c2d-a88a-4efc-88b2-e525e677aadd","block_type":"box","text":"i.e.","page_number":97,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"0034a165-412c-4058-bb17-ab1bce75cbef","block_type":"box","text":", the Fund). In contrast, in the","page_number":97,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"fdc93f02-c844-41ee-8b0d-1c68d37d0ce1","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":97,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"88f8f38f-ef4b-43cd-a061-706a02541cfb","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":97,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"dfe10710-0db2-4c51-803d-2282b6d8eb87","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":97,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"4f97a413-1228-4167-bc7e-b918f2cfedcd","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":97,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"2bc42197-04e1-4279-a4e4-a9777fa099ee","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":97,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"3bfeee66-c617-4614-94fe-daee8a0d3cb7","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":97,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"94cf8d18-e1ad-496a-80e3-948b14b3b8f3","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":97,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"3e96f177-ca3e-4aac-a7ef-d8392caa24c1","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":97,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"857fdce2-0293-4d72-9333-2ffa09d85c26","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":97,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"1d37f803-618c-470d-8d1a-0f68bdfe5bf3","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":97,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"79a59922-28b4-4c6d-990a-4409b60ee276","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":97,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"b5a4f5a5-9f8f-4749-a337-45ede0fe1abc","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":97,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"d2b46da8-2a9f-4fde-9abe-122cec156dc7","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":97,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"c63ca89d-e8ce-4006-a29d-18eb504a7d4e","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":97,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"baeba068-ff8c-431c-9930-eb459a778131","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":97,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"a9866f92-5e83-4926-87b5-814ea88f13f2","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":97,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"094a2e7f-01d0-432f-af47-60a0a68bfd87","block_type":"box","text":"Trust.","page_number":97,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"d198165f-3012-4f05-9c34-52352267d1b9","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":97,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"6ba1363c-cce4-4524-bf44-60fb7a6f7d37","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":97,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"97dafdba-626c-4700-a33b-88549f80164c","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":97,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"e9fa6627-6ec6-4916-95ea-0648d2b86e41","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":97,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"40cce026-803a-4349-913e-247249e07c32","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":97,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"5172a9d3-f94d-4391-80b6-41bbc70ce632","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":97,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"c5924bef-6b65-4583-8281-7b87f822dbef","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":97,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"9612b99c-cf65-49fb-bbe2-b5ba18759cbd","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":97,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"06745bf7-cb9c-4152-8615-1c9c28578768","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":97,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"582ebc24-169f-4cdb-8a64-b3a4cc509911","block_type":"box","text":"II-59","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c0ac12e0-797e-4fa5-aeda-dcfd100badad","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1475de32-5b2c-4aa2-a12e-24b9277d07ff","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":98,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"f9e68ffd-1f88-4490-8919-3f99336e14f9","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":98,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"a3f3866d-844e-4079-a9c1-09010f415ab5","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":98,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"ac29b6d9-ee4e-4e5c-999b-f39312499e2c","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":98,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"ca39e641-c54c-4070-8f82-570484fc83f7","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":98,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"65d8057a-7e28-4426-946f-73d9a37daf9a","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":98,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"387c7755-b9b4-4504-83d2-ac6ac23df840","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":98,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"3f38eb9c-0d94-4f1d-a3a6-58e6e87c267c","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":98,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"1f6a22f1-4853-4632-a91d-6655c41778b4","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":98,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"1a32736f-ce57-4c57-a50b-82e57c5d6802","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":98,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"285d7507-2a75-415e-94c0-c15ceb4de857","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":98,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"e75f6f64-cb90-4187-97d2-5705e01064a6","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":98,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"62cde053-49dd-49ac-990a-532346a1f461","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":98,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"8b8a3257-ad83-445d-8d63-373f669064f4","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":98,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"a44a4870-278e-45c7-ae2c-0cf9e6984a3b","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":98,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"046733e8-0171-466b-910a-7a3f3e2f8389","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":98,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"83b73f5a-7b94-410e-b4ca-913005eae2af","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":98,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"a4b7f852-80a0-4a8a-be94-6c3ed7920683","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":98,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"182d73e2-4307-4d2c-8c8e-b7655f4cbd2b","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":98,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"bb422eaa-5c40-466f-8f74-0df6a8d9b867","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":98,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"f808268b-078f-4adc-b4cc-10a054e9f895","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":98,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"182fe6e2-6dbf-4b5f-bed5-1634a8642334","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":98,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"cddffe9e-30ad-4276-9473-c0d598eb6b3f","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":98,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"117adc8f-e745-4067-92a9-a59d0a4c105b","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":98,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"a4fd2b94-844f-4364-bd98-202840170503","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":98,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"3350d635-a931-4960-927b-5a15f44f62aa","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":98,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"881a3464-7d7b-4088-8cac-b1b23a105dac","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":98,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"6965526a-99f1-427c-9683-4de397927310","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":98,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"e30e9f39-d31d-4439-8794-39652b64ef52","block_type":"box","text":"i.e.","page_number":98,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"8d8cdfc9-84eb-4713-919c-30613e106ce2","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":98,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"db1b16aa-9af2-4633-958c-bb04ee2724e5","block_type":"box","text":"suppor ted by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":98,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"37a823b6-ef32-4283-b437-73014758fdff","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":98,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"216da519-ac7c-4a3b-8333-18197e2ed8e2","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":98,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"36a201af-0ee0-49af-bd56-081dd4d20052","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":98,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"cb4b9272-571f-4b06-8e2d-798da52f14cc","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":98,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"d15ecaa1-7787-4a95-ad12-92d79a390053","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":98,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"0936738f-1d52-4bdf-929f-6433358022e2","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":98,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"2f6d95ea-1fcf-4cb8-baef-19c25b50294f","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":98,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"99881ef1-5cc6-4dc7-a757-cff5c4f00f9f","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":98,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"323f9996-ef3c-49bc-9ef5-37020a3f9b76","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":98,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"bd52afdd-7c32-4607-b7b9-df18c0b9c79d","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":98,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"0e87a3f8-4db5-423e-8dba-3f3e39857815","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":98,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"dbec1a75-dabe-4dd7-9dd2-2fc38214b04c","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":98,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"77eb83d0-674f-46d0-a835-f803106a0fef","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":98,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"7d3d4882-e05c-425c-b058-d08b12f16038","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":98,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"72508438-f7aa-48a2-8589-3ed8c1b8391f","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":98,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"c015d528-448b-4cf9-95e4-c750e9238ee9","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":98,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"3d2d8e8f-1d3a-46df-821f-c13f9b0cb326","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":98,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"a775c3dd-b33c-4066-94fd-1239ecd0e50d","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":98,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"00c50e50-31f5-4d7e-aac7-c890ede48045","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":98,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"22c7236a-6e74-44df-af07-1603eee9182a","block_type":"box","text":"market is not yet cer tain.","page_number":98,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"0c724b82-7386-4ee5-aa93-3c4af6620a5c","block_type":"box","text":"Yields.","page_number":98,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"5ecf7422-2a0f-4288-b9e0-a65292990766","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":98,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"444f25e4-a22c-41e3-87c5-2827b5539aae","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":98,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"7f9afd6c-37d4-446f-89b5-e93b2e84a8e5","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":98,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"58fc3556-1e8a-4f32-852b-fa85c119ece3","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":98,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"ecf74639-3cb3-4933-9ee5-573a7b3e8589","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":98,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"5edbc766-0d8e-4ef8-9300-085163b4bf14","block_type":"box","text":"II-60","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e46bcca2-720d-4288-a048-963662cf79f1","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6b19b196-2542-447d-91cc-e84243c579cb","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":99,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"bb7a941f-ef33-4a8e-9383-65270629951e","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":99,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"58cc806c-dd27-43a5-bd37-0c036b1f159c","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":99,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"e5659a06-af65-4ea5-9c28-65352c004c62","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":99,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"a82d571b-6768-4c16-a8d7-9eb6b3106674","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":99,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"85be01c0-b3d1-4d97-9edb-da2804ce20c0","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":99,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"87045bbf-c691-481b-80ab-12f5ca07cc38","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":99,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"3a55785e-7492-4646-9f2c-4032752105bc","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":99,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"5fd366b1-cbf0-4039-b81e-5ab9cc2a2776","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":99,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"3a22befe-dc0f-4cc5-a027-4d6d45dc9a5c","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":99,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"ae751dbc-5878-4320-9f73-2bd0221c3ba6","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":99,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"667e4877-cf18-4608-8501-608abfeeb015","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":99,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"d9a1c658-780d-4f42-a3ea-6225f55e8619","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":99,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"ae5416a8-f0af-46bd-a9ee-4b8de211ead2","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":99,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"9569fe1a-6870-4687-8a80-2a02299a1da5","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":99,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"a3449d59-fb0b-4dda-a805-d53c8c695d2e","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":99,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"16d0a542-fb60-4895-afb8-1c70eca1c187","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":99,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"d3d3b039-ad6c-43e9-8c3c-08aac0b150a6","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":99,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"089a6fc9-aefa-4a51-a237-89a885fbe9fc","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":99,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"56e4b3be-3d7f-44b6-baad-a844750265f8","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":99,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"a1415508-26ec-476e-bbf3-cc575f206767","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":99,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"89ca6493-c2e9-454f-8a33-6ec9e198134b","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":99,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"938800a7-3e0b-4763-97ce-ccfc67626eb8","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":99,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"49c6a71c-473d-455e-9ba7-3f22476318c6","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":99,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"8010adaf-df34-4647-a591-604ade43230d","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":99,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"6b146a9a-6e88-4923-9b67-715fcf32e337","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":99,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"68ef61d5-4039-4c8e-9329-6ded52831ab5","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":99,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"3df8a1ca-51c4-459c-aab8-21af4361379b","block_type":"box","text":"assures per formance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":99,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"b0866a84-3efb-453f-827a-c71eba9d56b9","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":99,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"4f3bd686-168a-4610-8573-0fda55771e52","block_type":"box","text":"The par ticular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":99,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"53c18107-fd82-4062-860d-47a399dcc5cc","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":99,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"8e2bbd57-7e14-431e-bf00-0069cf09c26a","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":99,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"693ad960-2ddb-4048-bec9-cc24a0258c8f","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":99,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"229cc8aa-6603-423b-9adb-64f6ade110e5","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":99,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"3e94438d-de46-4aff-b0f7-4a59888c1bcf","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":99,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"f50223bb-7de1-48b6-9f28-82e213721784","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":99,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"aef81c81-2efe-4965-8d25-9bafc1a0d095","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":99,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"b5a61209-53c9-47ff-b32b-52dd96d77441","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":99,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"54169240-f9d3-4d46-8116-81494d9f9f9f","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":99,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"a2375f62-99d0-41e8-bba7-bbe463d54194","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":99,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"0c5f939f-c3f0-4b49-a8af-14f474f193cf","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":99,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"656bb6fe-8e15-4735-9d59-be1d62b0f98a","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":99,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"caa5b48b-d45c-4e26-bf38-cf6ac2cf71e3","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":99,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"91e2adcf-118d-493b-ade2-b62a6b367ea2","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":99,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"da2bba73-1133-49d9-b888-020107cbbef6","block_type":"box","text":"Call Rights.","page_number":99,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"a34882f7-4dfa-40da-a64c-fbf2574a6987","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":99,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"d09320da-da74-4456-a194-268a59250ef9","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":99,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"75e26fad-b600-4e67-a2b2-6ad7ac8b5d81","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":99,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"25799826-2044-4cde-99fa-966a1c8d81c4","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":99,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"fe86497e-bbc6-47df-a6f6-f018b43fcc3f","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":99,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"4029c4fb-e5f9-41e8-aeb4-76d3c8498527","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":99,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"55995584-658a-4c40-99e4-4691bd134291","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":99,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"f0abcb0a-9219-4bc7-8dd3-79c801c62cbb","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":99,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"f460da4a-8c1e-46d3-b078-ccca586b7620","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":99,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"628b8c8c-a293-45de-9971-dc0e739d4c69","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":99,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"16a07ae0-4193-4d50-bdba-6c362de459b7","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":99,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"76893449-1199-468e-afe9-2f43ebdff27e","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":99,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"4d13525f-271c-4c74-991b-ef8f33af010c","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":99,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"a57e3737-8f63-411e-90a1-9db5aaefa810","block_type":"box","text":"II-61","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"67f21e42-8a22-418a-96e1-d331ab00c521","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"86abcf1a-e451-4bfc-9013-83200e801a7c","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":100,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"828c6868-7acb-443a-9e06-d2b65ca30025","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":100,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"f54f3573-f050-47ce-8af1-edd5cb695da1","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":100,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"4787f2f3-6d60-461d-981c-950f9f6875ea","block_type":"box","text":"i.e.","page_number":100,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"71abcdc6-5d39-4061-936d-9fa417530295","block_type":"box","text":", wide differences between shor t-term and long-term interest","page_number":100,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"d52a4305-8186-4023-b4c1-930776ae1f65","block_type":"box","text":"rates).","page_number":100,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"e36e318a-e98e-455f-88da-93987b3b673c","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":100,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"1ec79aa4-3066-42c5-8cc5-38bf07f705c8","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (","page_number":100,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"21f4d06e-e541-49b6-a3ee-369e8c3e2e14","block_type":"box","text":"e.g.","page_number":100,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"aee6146e-3059-47a9-b112-f77238ccd8b3","block_type":"box","text":", an exchange of fixed rate payments for","page_number":100,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"028a3402-1698-4204-9ca8-674461070587","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":100,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"4306ae4f-2e68-4096-9c77-3a9a51470c5d","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":100,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"551ce63b-71ad-4b21-b59e-0d8e2bb02dc9","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":100,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"d16c4f87-724a-45ac-a06f-cfc8e021a606","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":100,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"2fddbb12-9adf-4958-a7b3-8f313793521b","block_type":"box","text":"with the same attributes as the swap (","page_number":100,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"a88cce3e-d01e-4b64-8d69-2689e856b85d","block_type":"box","text":"e.g.","page_number":100,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"8940e70e-9f0c-4b70-9797-7edbbb47a5b2","block_type":"box","text":", coupon, maturity, call feature).","page_number":100,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"c639ceda-35e3-4c02-8d58-39af11a80bc9","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":100,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"d8f0ef65-3968-452a-bcd1-d5a307efc247","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":100,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"9b203e64-c341-4b65-b7ce-0bcba19cfc47","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":100,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"57e79e4d-081a-478c-a417-57052ac3ebdf","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":100,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"b41a02a8-6bc2-41f5-a92a-0ffa213fcf73","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":100,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"28b43e98-6115-4f80-915c-42bfa0215244","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":100,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"ef80f6e6-1b01-4323-b906-eefa83b69482","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":100,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"4719507d-d04c-45cf-bd25-8bf0fae4d97c","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":100,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"b656552c-86f2-42eb-af8a-c8974c957c4c","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":100,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"8bb10fbf-d884-4379-afc4-c24fa6f0a3dd","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":100,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"eaa27856-36c5-4ff8-81f6-d2c42725372e","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":100,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"a4d29275-656b-4a25-a7be-e9a1b29eaf9a","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":100,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"f2dca9f6-03d1-47a7-91cc-cbda3df19df0","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":100,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"ed48c5db-689b-40e8-bd8c-6db17dc0f770","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":100,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"820a8c88-d343-4d32-abb1-421636ae98e2","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":100,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"e3e2c5e8-207a-4ac1-b835-a93feb8a9042","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":100,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"32c35822-3527-4dde-926a-80aca8154b79","block_type":"box","text":"Insured Municipal Bonds.","page_number":100,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"7dd8e9a6-0a1e-4a0c-936f-d52c48b7e796","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":100,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"99628cac-4540-4993-8d73-1ba73e87ddfe","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":100,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"b2c02f92-2752-42f2-98f9-bcd4f2692b4d","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":100,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"bc65c744-29e0-4217-91a9-d6bd412a5282","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":100,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"9d24e511-e912-4705-acdd-043ad46fb660","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":100,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"69035bf5-4f7b-485b-89fd-29a0f1c408b2","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":100,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"cf9f2878-5681-43d7-a9ae-a9667bc459b7","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":100,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"735059f7-978e-4d90-8972-eef15d13633d","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":100,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"b9886992-ac77-4686-b947-54a08b1a16d9","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":100,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"18f72227-e13c-4f72-a512-58970701b255","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":100,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"ecaebfc5-c956-4df6-9ce9-06a29448bb52","block_type":"box","text":"bond could drop.","page_number":100,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"42ae4abe-29fb-4e68-90df-6ea3345bc380","block_type":"box","text":"Build America Bonds.","page_number":100,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"aa783e4b-4103-4c67-9a99-60d0838fe0b5","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":100,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"9ca2851d-59f7-43f8-b6da-5fb5fc925546","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":100,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"2a48f8ae-2b61-4191-a50b-b0bf1955f42f","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":100,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"530b9d82-1617-4286-9258-61e8a76ce9c8","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":100,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"6b885b6b-ade7-449d-a26c-fae2b11bdd96","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":100,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"00c9e294-968a-4ba9-b9a0-3ed871532cd7","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":100,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"198566a0-be67-49bf-827d-791e9e359ded","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":100,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"787c26e8-7642-4f8c-b405-2e21d15d991f","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":100,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"00012431-ecc5-4c48-b020-82766aab9d26","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":100,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"bb03e05a-6cfd-45b0-b59c-d491f5bf1df6","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":100,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"2f61f3fa-430d-43eb-be3c-225920a2fb6a","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":100,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"dca55dd8-6be3-4793-b144-0c06fe030828","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":100,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"06d4c59f-65e7-49c2-8a6a-d46784e4a457","block_type":"box","text":"propor tionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":100,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"6bf861e5-1aa0-45a5-831f-b1006f9ec6cc","block_type":"box","text":"Cer tain limitations may apply on the extent to which the credit may be claimed.","page_number":100,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"799e1044-45f1-44af-a1de-2d7d65eabe10","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":100,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"fd9bb978-226b-400e-8b09-4de64ec556c7","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":100,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"968adcf3-9594-4187-8625-0bdffc94122c","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":100,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"97859141-3a00-49ea-b2e4-7019258c1c38","block_type":"box","text":"par tnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":100,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"050996b8-7105-40eb-953f-d42dc03c211a","block_type":"box","text":"II-62","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"09526b44-3a1b-45db-9002-4c94b61dc1a2","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e0222ddd-f5e5-4f3d-99e0-f678ecc47962","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":101,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"a3bbbec8-416d-4e1a-9d4d-0edeaa7ecb12","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":101,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"13d9dfd8-b5f5-464c-8c57-5031d42de7e7","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":101,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"1227bdd6-963e-479f-a1bc-744487d7b462","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":101,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"dfab299d-5a8e-49cf-962d-738b343f9592","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":101,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"367b85b9-aec7-4609-ac52-385f41c024e9","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":101,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"08b41b6c-3985-4938-abec-6fcc0688ccd5","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":101,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"ce02e672-427f-4f5a-9043-4d07a6d2af51","block_type":"box","text":"their face value to the sponsor (","page_number":101,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"4c62fe8e-2ed8-44c3-b1c4-665cd18e7f07","block_type":"box","text":"e.g.","page_number":101,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"1eb24f59-4305-49db-9d0a-f617b0035f6a","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":101,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"31bd1dfb-679b-4f22-aa78-7edd19b37194","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":101,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"00495807-5c0c-4cf4-9297-b55e5722e15e","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":101,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"24818777-7f95-419f-a0af-c79b5f7d1993","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":101,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"ecfea5dd-93df-46ab-9827-6e98b2da5cc8","block_type":"box","text":"par ticipation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":101,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"d217a9f5-8f3c-4ad5-b94e-5edd3829cfea","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":101,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"7783e4c0-6557-4a94-a7c7-08f843da9580","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":101,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"4a3a11bf-dd4d-473a-b54a-4d2517eeec16","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":101,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"ca745790-8210-46fc-9d19-fc3a413bea04","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":101,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"f4c8c87b-1b38-4876-9f83-ae6c22595e9a","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":101,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"be30d19d-7d78-47c2-9b37-4a81cf077869","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":101,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"d87c97df-1949-4e6f-816d-319263c6f393","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":101,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"97f36e8f-63c6-4e15-b5ad-0451f2b86f07","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":101,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"fb8e1fa8-d409-41a6-b042-93b6ca2e9f16","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":101,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"06b82acb-1947-45ea-b9c3-77be1f059f18","block_type":"box","text":"such opinions.","page_number":101,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"a6777baa-ac47-4238-945f-4304fbca14f7","block_type":"box","text":"Operational and Technology Risks.","page_number":101,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"db3c4856-6cd8-4a7e-9a07-3f0540ad9435","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":101,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"84bc0e1a-e5f0-44d9-bb1f-93f7d7961a80","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":101,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"119bfa8b-b91f-4317-834b-b102ebe3a5eb","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":101,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"67726ae4-944d-4a74-809f-10a34400472e","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":101,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"0f5c6ff7-ff29-487d-aa71-f1a6871b9edd","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":101,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"e8220a08-a3af-4a93-9b08-e8e7fea28a30","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":101,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"d2ac7778-02e9-4993-8ce7-cfe747ee50a0","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":101,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"38b99cf9-eab6-4fc1-9d16-4508ead5245c","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":101,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"e0b7aac5-753d-4108-b17f-d8fcf2bae62d","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":101,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"9a891e45-36b2-428b-9d43-b1ae8a136157","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":101,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"7fe5f4b9-a156-40d9-ba50-fbf1f7f66e0c","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":101,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"02c7496a-1882-4ada-9909-6636aa793c5a","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":101,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"e02050ce-fb54-425b-ae28-5c9c829ebfc1","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":101,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"6e5a4ed9-d9b5-4c17-bda7-3927205f7251","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":101,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"9f8d17d2-ea7c-4f5d-960b-ad7fef981bf0","block_type":"box","text":"par ticularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":101,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"11d53368-6d7c-4ee9-bf60-66cbc4823161","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":101,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"931f4cb6-c0e7-497a-bcab-eb5d3f28454e","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":101,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"aedd7714-d28f-451a-88d1-e28183c8fdf4","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":101,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"429aede4-e0cd-4c1a-aa99-1d758e34bd67","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":101,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"962f7886-b4a6-44f8-a0ba-640cf9132574","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":101,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"733880a6-250c-43bb-b765-5680bf15e0f1","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":101,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"8f719a46-0744-4365-a64c-6bac008e0161","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":101,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"91a4c41a-7a0c-4fbd-9452-d311284ef3b4","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":101,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"5fdb9a71-b359-4b44-b61d-674c5995c61f","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":101,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"a5d851b2-72fa-4a89-9816-d517b33c99f2","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":101,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"03b549a3-642a-4d0e-8221-d6e3dca67aa4","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":101,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"7bd3fe70-3bad-4c16-a7e9-aea5c5edf945","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":101,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"88fa64ea-19f4-44aa-b404-846f8a6ef513","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":101,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"0df0d387-3d25-47e3-8bd4-d1dc830c9657","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":101,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"5f37d38b-2f2c-4e23-8ac8-89f2aebbd33d","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":101,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"d3b99aba-7a88-4091-90c8-8017ffc276c1","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":101,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"6251dce7-98f9-410e-960e-950f9dfbf99f","block_type":"box","text":"infrastructure assets.","page_number":101,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"ae16f06a-d5b2-4664-a242-1a20c3b758cb","block_type":"box","text":"II-63","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dab7338c-c055-4474-ab86-fbf909b3e72e","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"47658490-e3dd-46d4-9309-5cc3191ca44d","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":102,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"6a6d50e3-f1e7-4ca9-8805-bac440b3836c","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":102,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"19ff593e-cb58-47a1-acd7-d8001245ab11","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":102,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"a520d27a-0b17-46b1-a7a3-219e4bac2db9","block_type":"box","text":"or services.","page_number":102,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"1f814330-05e8-4e1b-91d7-c0f28c058199","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":102,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"b58f798a-981b-496c-9ff8-08196c415c7e","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":102,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"8c45944d-11f8-405b-bd14-9d41101f1b84","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":102,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"ba43f09a-9c40-4981-a3c4-38ea36561dba","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":102,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"775bddbe-d4d7-4fca-898c-907c37c2f3b9","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":102,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"dae64a74-8ed0-446c-84e5-944f8c4a3d13","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":102,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"de5a1fbc-4123-4121-bcec-a8de7daa275e","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":102,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"0f7fcddc-8540-40e4-9187-daeebb23d676","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":102,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"9371d306-62ba-4a5b-9687-53d5a9471c85","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":102,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"ef0a79cd-87d1-4fb1-8362-bc77f92b4997","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":102,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"8903e651-a1e4-4d63-9516-0e7a289302e1","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":102,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"ca05fd70-e165-4308-9120-b848da218b06","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":102,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"fdb6eb93-f4f3-4f90-b86f-7294233f486e","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":102,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"d094811a-4ccf-4d62-9295-e181fb2f3e17","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":102,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"7500a964-bcaf-4964-bd6f-60e3675597d6","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":102,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"a2428d40-cb73-4fd6-9ba6-dcdb434ffb0e","block_type":"box","text":"ar tificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":102,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"afc995b4-c348-4785-a781-c175922aead6","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":102,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"4c84cc98-d078-4b00-95ca-b1c74cdf12a3","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":102,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"abb54032-0708-4897-9a90-5dd5c6cd40f6","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":102,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"57b2c470-5990-4ea6-b90a-aa2ae179f3c3","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":102,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"4985d3d6-e873-45a6-ada3-5973f2687d55","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":102,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"d0270ea0-0fe6-4538-9a36-46c8844f0df1","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":102,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"ffc4969a-c02b-473a-8f00-884f076a64f6","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":102,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"e700a81b-1508-49b9-8bf3-2788b26cfc2f","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":102,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"e8881356-2285-470b-8c8a-6f45955a3342","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":102,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"8149d08d-0064-44a9-8e60-a724f00c19d3","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":102,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"366c52e9-9fd3-4968-a319-493236a94a3d","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":102,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"701843bb-a0bf-48a2-b49b-d7f56989a43f","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":102,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"ae27280d-d41e-4fef-80ac-f69d258721ab","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":102,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"4fd4417f-9a3d-4680-8c8e-fe9905c747cc","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":102,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"8e625434-5019-4042-97b6-4ea02b1610bd","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":102,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"448b7bda-ed37-41e3-aab3-917951f3d447","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":102,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"9b6f1e1d-6ea0-4d07-808d-42372f4c987c","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":102,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"9b1aa7a4-4a73-4e91-a73c-76dd0cfce519","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":102,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"734fbfa9-0d10-406a-b5d9-2ae5ea50a2cc","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":102,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"650318cf-e072-4071-bf87-991e50cbcf38","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":102,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"0369a038-c4b8-42d1-a267-bb84afb04c48","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":102,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"aa0d56bd-bd45-4573-b939-7b2a2c42ecad","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":102,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"6dcd7633-6ebf-427a-988d-ef32c5fe8115","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":102,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"0dc486f1-5ff0-42e4-8a24-7398acc50e3c","block_type":"box","text":"resources to monitor and implement required changes.","page_number":102,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"6abd3b6e-5ea0-43b0-965d-71c01d6a8952","block_type":"box","text":"Participation Notes.","page_number":102,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"0490d2ec-1e8e-4dfc-8fec-64478a4129a7","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":102,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"7f7a9172-dffe-483d-9887-69741f3ef42a","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":102,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"82bb691e-cdaf-46ed-aad0-a1b013d22cb2","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":102,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"77c3e842-c7e8-4632-9e2d-ef3d43c51406","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":102,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"d6ea1b21-cfe6-4f8a-ab49-e3637e0902ae","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":102,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"c8e977a2-d6cd-4d5e-b150-423896f8f7a3","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":102,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"689cdd73-6426-490d-a4ec-b66d09c54cff","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":102,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"50b43f01-57ab-4800-ba73-e64ab76af11f","block_type":"box","text":"par ticipation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":102,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"7b38b354-a5c3-4916-96e5-053b7eea941b","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":102,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"88d8d275-811f-475c-a9bd-a6f2f0cf0f49","block_type":"box","text":"par ticipation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":102,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"af6f991d-b3c3-4aa5-be30-81e8f4f10337","block_type":"box","text":"II-64","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5d541bc5-fb38-47c4-ac03-c7ad7108fdac","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5cf3850b-4c6a-46a9-9998-4992d964efba","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":103,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"c2b05632-a17a-435c-91a2-078981ca34ed","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":103,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"0f8743d3-e5d4-4eca-928b-d2f783c47a8c","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":103,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"865af1c0-b0a1-4cbb-ac7e-3ef4172d9137","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":103,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"fc4ed204-7c26-4e98-8f15-431cebdc3d41","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":103,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"3f5907fc-e2ef-4770-a30e-58a67c6e5b62","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":103,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"05a237a1-05c3-4c0c-a661-11e66ffb893d","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":103,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"ce309ac9-4edd-46ee-8ef0-b94bd4c748b0","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":103,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"9abde5f9-2aed-4e30-a4c7-b3099c44af39","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":103,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"7d2661b9-6737-4683-9a90-462e90d23a9d","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":103,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"2fb14bf2-31c4-4206-8a7e-06b0f20eb111","block_type":"box","text":"Portfolio Turnover Rates.","page_number":103,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"15922f1f-07ec-41e0-b5d1-66174fe2dd4c","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":103,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"90bab940-fc09-4b1f-a9a0-0b2848e957aa","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":103,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"397fe9b6-2c86-4491-a869-0426e4175622","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":103,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"593377b9-990c-49db-954c-09944fcf32c9","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":103,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"42f8e154-d713-47b1-8e21-a496e463f5c1","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":103,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"0e9740aa-c852-44b3-b210-985eb9804637","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":103,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"d7d9f828-5b01-49e9-a766-ae89fd3d237b","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (","page_number":103,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"f6733592-2ec6-44e5-9190-4f687e823f36","block_type":"box","text":"i.e.","page_number":103,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"0749247c-6dc1-487d-a7b7-75d81e496b4e","block_type":"box","text":", 100% or more) may result in","page_number":103,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"8ca03e0d-f714-4fa6-ad18-bfcd80d61ac6","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":103,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"259c7316-4ac8-4bab-a834-52c4d464763c","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":103,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"0cd44721-6fdf-4360-8f61-9ec87630b17a","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":103,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"52f9a132-79f0-4a89-93a5-7b97c68c948e","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":103,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"7afd9b6d-8b1c-43d2-b942-7dda92104973","block_type":"box","text":"Preferred Stock.","page_number":103,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"d9c4438e-5f19-42e6-8cc0-a07be5962341","block_type":"box","text":"Cer tain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":103,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"88c7ddd8-042f-45f3-8bb6-e506d77a04c9","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":103,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"5d7e1dd6-ada7-4ee5-9efc-34471cfd3826","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":103,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"9a5ea8da-2ff1-47b6-af78-181135ac3abe","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":103,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"7628ea83-a625-460a-918b-3d51466e927c","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":103,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"cb2cc4bf-234d-4b0c-8f30-c89d5b7192c6","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":103,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"f1104451-6a9b-4253-9474-fc84419e2981","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":103,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"b9665f8c-3e92-4bba-8995-e6e62396f463","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":103,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"58af355d-616b-4180-8a0e-79df1c22146e","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":103,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"c2dd2aeb-95f8-4b3c-b888-d626cd7e2884","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":103,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"a38601bc-c10d-4075-b35e-0e83c43969f1","block_type":"box","text":"Cer tain Funds may invest in preferred interests of other investment funds that pay","page_number":103,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"80fcd457-36a0-432f-aacc-573c4b324c03","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":103,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"d2eb7016-3c90-42aa-978f-ec490b41c400","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":103,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"5b0731d5-cbcc-477b-80ee-f0e7e10f812d","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":103,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"d9d74eac-7c68-4956-a173-795a21fa1ac4","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":103,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"f3d9507c-f562-4336-96fa-56a91a36453d","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":103,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"f296932d-170f-40cb-9763-68155a92d491","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":103,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"b74ac1c0-1bfe-47dd-88b7-927699148944","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":103,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"7412b285-3194-4a2e-9d15-72ba1ad3d94b","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":103,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"b6ce28be-a56a-461c-b511-9af59c2c5458","block_type":"box","text":"Trust Preferred Securities.","page_number":103,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"89bd5e94-a6be-4de1-95dd-f6206bbea589","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":103,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"49f7d4d7-99f0-4500-8deb-42e5714f5ce9","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":103,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"ce0eaa59-8dde-4478-aa1d-369b7d5305ef","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":103,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"213cc606-2cb3-4953-be11-d6f78710aeb9","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":103,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"b2e83961-fc41-4cb7-98c6-16039c33435f","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":103,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"400c0916-bae0-4caa-9552-8593e49a7795","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":103,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"9f38cd71-3379-4249-881d-6a15ef76e7e7","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":103,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"edc286ae-42b4-481c-9438-1f2bd444f1ac","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":103,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"bde31a5c-73b1-492a-8f7e-cbb7f8f7aa67","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":103,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"7e1976b9-231f-40d1-b218-97ac2d4d114f","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":103,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"1b4835df-9dc6-4bf8-9e7b-ef4daac3225d","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":103,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"0d412c4e-137e-4598-8439-645bf6225316","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":103,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"b7a4aa81-ca68-4f20-9a70-a9306499c44f","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":103,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"48872e4a-e73e-4987-b7a3-04725401396c","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":103,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"88d5e5ec-60f1-4ac2-b793-3eb22623d4aa","block_type":"box","text":"®","page_number":103,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"cfbbd25e-6086-426d-82a2-c75c1e90fe36","block_type":"box","text":"”); monthly","page_number":103,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"f2e07ef7-bd7a-4c6e-95e6-5df2909ec996","block_type":"box","text":"income preferred securities (“MIPS","page_number":103,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"70fbea67-e2c2-46f1-9111-d611fc4cdfad","block_type":"box","text":"®","page_number":103,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"0fb0e238-0ed6-4e33-ac72-40f6e40d7c09","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":103,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"b702ebdc-e4b2-4f48-8fbe-70b4a5bce633","block_type":"box","text":"®","page_number":103,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"405f1148-8ffb-4686-8b83-53dc72a17836","block_type":"box","text":"” ); quar terly income debt securities","page_number":103,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"fe842c50-95a7-4666-b932-56fce500d567","block_type":"box","text":"II-65","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c7dca6c5-c40e-4022-8db0-08d75ca51673","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"504b02f1-7dd3-4a4b-be02-6c1ceaf9fa1b","block_type":"box","text":"(“QUIDS","page_number":104,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"b2be32bb-345a-4551-8b3e-01dbf22ae0a3","block_type":"box","text":"®","page_number":104,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"740e1439-c972-47f4-b4a6-44640690f0a8","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":104,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"ce4b62b0-a659-48ff-a62c-c5ac21336d05","block_type":"box","text":"SM","page_number":104,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"3f674af0-17c9-4ac2-b0eb-8115b43d36a2","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":104,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"f63da4fe-8d31-4aa6-8a94-020534d02e1d","block_type":"box","text":"®","page_number":104,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"9dcca4f6-bfe2-4a37-99f9-78a08497923e","block_type":"box","text":"”); public income","page_number":104,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"f7b0799f-15db-491d-943d-febd1be67877","block_type":"box","text":"notes (“PINES","page_number":104,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"f8f3829e-6ebb-4f3b-b513-09c290c48783","block_type":"box","text":"®","page_number":104,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"b04748ae-da42-4771-8767-bef0c3df98d3","block_type":"box","text":"”); and other trust preferred securities.","page_number":104,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"0f8bf48e-6feb-419b-9f50-937c2570033c","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":104,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"6d683754-db0d-4549-b1db-42c668d97dda","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":104,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"095e032f-e49c-40c0-b6b9-b0bac815e633","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":104,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"63d2ad24-a140-4091-85b8-c5ce0d40b4ac","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":104,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"15522929-7be0-4af1-a482-31f6149c03e9","block_type":"box","text":"regard to whether all payments have been paid.","page_number":104,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"2bf2627d-2ea7-4d50-83d6-4fe331349a82","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":104,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"e0e787ab-54d7-416f-b3f9-faaf1f37a60a","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":104,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"fc13c462-d25a-4171-a21d-af5eb3f94b15","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":104,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"239191e4-aa15-4e25-a8b5-8270a75afcdb","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":104,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"5da12954-514c-420e-afb5-36f2c0f55494","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":104,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"4e1e7017-3ecb-4d54-871d-bb31cd607a7a","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":104,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"1b4a1d47-f4aa-417b-a1ad-f13e0591dd82","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":104,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"94fb7042-063a-40bb-9eb5-eb18ff3e97a0","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":104,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"7dbb0873-f99b-41f4-bbbb-8e948e046883","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":104,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"69883866-0da6-4c8d-9a62-1eb8455610d5","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":104,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"2f6c1f21-e279-4d54-9872-17970b20d0f3","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":104,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"36bb8211-302a-44ef-b529-add527620262","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":104,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"17443fe4-11e2-491f-b5fe-985a76391438","block_type":"box","text":"debt securities.","page_number":104,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"699ac148-5b6b-4ff3-9299-0796bb9e2ca3","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":104,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"7c4eee00-1d81-496c-a159-c3357605f558","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":104,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"4d1393ff-eec3-4b1f-902f-7bfb38592c74","block_type":"box","text":"REITs. REITs possess cer tain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":104,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"ccd40fd7-a597-4696-924a-de0548c96a71","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":104,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"5f5f067a-dc0d-4d16-a655-236aefd6f360","block_type":"box","text":"geographic areas or in specific proper ty types,","page_number":104,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"995323d2-f063-429e-b30c-c6f81344389c","block_type":"box","text":"i.e.","page_number":104,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"073bb945-da26-41fc-b1fb-b55d9ace75d4","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":104,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"0e4a4149-8b20-427f-89f4-0345fe9a3c6e","block_type":"box","text":"buildings.","page_number":104,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"414a0383-d718-4380-80b7-7222e393793d","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":104,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"9da4f1d3-f680-48b3-9d0d-f5e928e37137","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":104,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"402a1e15-7941-423b-9ac3-2bc87b15f429","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":104,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"6c2c0794-22a1-4567-9a9a-d058d68d6de1","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":104,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"71267a4d-666d-4821-b272-30e772528a23","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":104,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"46e53d45-d016-46e9-b8c8-360de3f14f80","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":104,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"6dcffcd9-a464-4717-9851-49e0492aec59","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":104,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"ed7dd012-70c7-4785-91bf-67452c621615","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":104,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"2bdc8adf-660b-41cc-a509-80ed4fa126c0","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":104,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"787505b1-0fa1-47e5-915d-ac8ff299c59b","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":104,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"cee0b8f9-144e-4cce-bf09-ac55c8c7f3aa","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":104,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"a9f380a9-b961-48d8-86ae-1f17006dfc6b","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":104,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"4a6b1fb7-8a79-47bb-b028-64d1ff3822ef","block_type":"box","text":"from new proper ties, the impact of present or future environmental legislation and compliance with environmental","page_number":104,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"d72ab2b7-9b27-4216-aaf1-bbdab281d804","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":104,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"5e0b871c-0c4b-4ebd-9c9e-de3bf4eb3bad","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":104,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"66549bc4-eee9-492d-a265-82c506aa4d47","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":104,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"354ba691-6bec-4aee-a4f7-f13829bf2aff","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":104,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"2f9d623d-f4a0-415e-82a2-eb50c4da873c","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":104,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"e5c5d1fb-ab3e-4a28-9bcf-973d68950ab0","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":104,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"717e0914-2c05-4eda-be5f-488f086c9bd2","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":104,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"6367d55f-d307-4cdd-bec7-2ab99b065cbc","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":104,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"8696783c-53a4-4910-837c-7a344eb59f36","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":104,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"6881bbaa-1096-4e57-afd7-db3b4a171f5d","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":104,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"6c3c4bd7-d938-452c-b49d-0c00591dfb41","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":104,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"15b73646-f130-4a33-8e4d-af9522d53945","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":104,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"f8d4aa58-8eef-4e91-aedb-07edba9c878e","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":104,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"851186e5-fb9a-4b8a-80cc-7275a2c099d5","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":104,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"c43d3a14-64b9-4f42-819b-d9b3f83f506a","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":104,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"85eb89c4-1468-4cdc-a166-8cc141aa77da","block_type":"box","text":"REITs (especially mor tgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":104,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"d45f0c0a-f8d8-47bf-9c4c-79aecc643dbf","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":104,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"c57cc361-4b77-4c1e-9a33-76246e5ab0a0","block_type":"box","text":"II-66","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"867016f9-a2a6-4019-9bb8-ed6eadb5430d","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ec54e62c-afc7-4c99-adce-320128f92a52","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":105,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"d67a6931-9d62-4de4-a6e3-86c3c2866c9d","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":105,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"a4a1871f-564c-4ef3-b4d4-05aa7991cd7d","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":105,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"2cb386a6-daf5-4b96-a864-cdd341ef8db3","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":105,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"6c3697cb-9b8d-49b9-95fb-7807a2c9b2b5","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":105,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"c48bf04b-9823-4686-8ad2-90fb9e6e808d","block_type":"box","text":"Investing in cer tain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":105,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"21601d9e-51f2-4b1d-a6ac-32388db17ce2","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":105,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"b8151fc2-4b0f-4b43-af5a-f3b39693be83","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":105,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"c0a77862-6151-44a5-b2d0-ef5fcbb97b08","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":105,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"b752b005-30ae-44b8-857e-8c3e36f9357d","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":105,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"261acdbc-b2df-4227-9249-d7e223fc55ba","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":105,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"674401a1-8945-4294-9bc8-6a1df6dfa620","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":105,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"862f5371-ab47-4546-a97b-dffefc50acee","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":105,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"34856b85-3114-4ea6-9dcd-034425a7bcc1","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":105,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"cf2f50ab-1791-4c36-ad11-80e61a349ded","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":105,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"51b2d245-febc-4eec-8599-6c949215c249","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":105,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"c8aaa175-5721-454f-8697-3db9d29dae9d","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":105,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"bfafd527-4ba5-45d7-8d36-9c54e43e3733","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":105,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"d1096b90-cf5f-47e6-afa5-6014de3e4889","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":105,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"25d7248a-26b5-4ad6-8729-42d453d55fdb","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":105,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"d0b5571b-f78c-40b2-9886-12f7090cf3fa","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":105,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"7ba74d11-b122-4934-9185-145a59a421d0","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":105,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"3d78ae1d-8548-4652-a3a6-c49d9e8cbda7","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":105,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"a3211d61-37af-44bc-9bca-d8b1566930d9","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":105,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"8935d2d3-d7b2-4725-9e93-e3f90c3ccab0","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":105,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"9c4a18b1-3d32-44b3-bc7c-c13c6d97e46e","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":105,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"5297f75d-7e65-4c79-9db8-65f9f9b76206","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":105,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"b9bd93ee-9d8c-4011-aeb7-bb111713b995","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":105,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"6c717a28-539a-411d-8fb6-66f39599def6","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":105,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"95b21c77-305e-4df8-a551-04fe63c3720e","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":105,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"27372952-1f53-4525-832a-9a8b23907aff","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":105,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"024caacd-6339-4f8a-a1e1-3e43a03a2641","block_type":"box","text":"conditions.","page_number":105,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"2a99c87a-4954-4105-9cde-cac03ae1bf63","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":105,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"bb7234df-3144-40ed-85e6-0b98956f6c6f","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":105,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"6ab33ecf-9bac-4281-96dc-efd16cec2ba3","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":105,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"22843727-f821-4a74-bff6-2d117410f304","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":105,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"8c14df6f-8e78-4a8b-811c-679260b49967","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":105,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"87d71d1c-d740-4b92-9ee0-1bea310656d8","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":105,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"48e6fa0d-eedd-4e07-bf9e-5f48ab5a6c34","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":105,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"55e013e0-6de0-44ba-a6c1-4c3638316396","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":105,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"d1baaad6-1668-4cb9-ac7e-71382928a2df","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":105,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"e7db8c27-7b86-4d07-b91f-0d0d8d4ea2e7","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":105,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"1874bce6-20e3-447c-926b-5b60b9be01f2","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":105,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"be1279b0-1958-48f4-afac-87f88a71b879","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":105,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"4a99e2e1-0178-4af6-b044-9c99a70c0177","block_type":"box","text":"affected by such events.","page_number":105,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"aa183258-9396-44db-b3ce-db153bacea8f","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":105,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"7026aab3-7175-473f-86f3-55a4115150e8","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":105,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"bc2f7951-e8ed-4b6c-83e6-90962339c3c3","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":105,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"be8704a7-c6b7-44c9-8a8a-2bba78d20e97","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":105,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"673e7f87-b011-4448-9841-61bd9d999c07","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":105,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"fc23913f-4850-4e3a-ab15-6b1b84f95699","block_type":"box","text":"that could create uncer tainty and instability in domestic and global markets and could adversely affect the","page_number":105,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"ca188e5a-4db0-461a-abfd-4c1702cd6b9b","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":105,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"e0d9d31d-4baf-4d2a-8e3a-ab0a5695b0f9","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":105,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"374e0e31-0b5c-441c-be41-337e031d9ad9","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":105,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"c8eacc16-b0be-4be5-8fd9-4f4dd36eff08","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":105,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"dd306da3-f7c4-4480-a51c-325d8e16f724","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":105,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"ec69d424-eceb-4b20-8e3f-d3acb196edd6","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":105,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"006b7106-c2ab-45cc-a4d9-9c1289204d3a","block_type":"box","text":"II-67","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8bde6086-349b-4ba5-8283-687bf605b483","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f2ca9b4e-d8d8-4d35-a96f-9e7b9f788ac9","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":106,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"5cef2463-e4e1-463d-886d-3dc2b42c89b8","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":106,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"ade27275-e014-4958-87a5-67bcd9fa756f","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":106,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"b8ef2586-f4fb-43f5-a4a4-c3b471c73ddd","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":106,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"02926ac8-3acf-4412-a41c-ae58756dc209","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":106,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"cb62790e-5599-42b9-83d8-32b79fb9c34e","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":106,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"6b45e7fe-ca0f-48ad-9bfa-d39a91c24d65","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":106,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"94082b13-9bf6-4c5c-892f-103efdba2c18","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":106,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"c62a49af-3dc6-4d52-9762-a551b74a6ef3","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":106,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"caa216d7-fca4-4cc5-baf8-1dca004a1931","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":106,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"4f8b43be-725a-4a9c-87ab-ec30a2ec6b29","block_type":"box","text":"investments.","page_number":106,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"fc742579-93a5-499e-bfa8-ab05a7aa4f64","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":106,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"0ca3cebb-66d8-4923-a07e-0faca48debc4","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":106,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"f04b4335-500d-46d8-92e4-f947bfcbc074","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":106,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"0db45a9e-3969-4e9a-becf-bc22e6f5e36e","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":106,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"448acb18-3e39-4b6e-855f-815e7dff1d57","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":106,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"d2212477-3570-4104-88d9-96790165ddf5","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":106,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"69c5b057-c77b-47e8-9366-9657e53f9210","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":106,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"4fa48fae-ecef-4fbb-8613-078722393ff4","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":106,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"09a8cafd-1b77-4eb4-9508-37a0930bdd62","block_type":"box","text":"Legal and Regulatory Risks.","page_number":106,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"72058822-1d7c-4e24-bf00-074cc39a6a72","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":106,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"0235071c-ea50-4b77-b5b4-b540a1bb1b0a","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":106,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"75992fd2-7ee8-4218-a73c-62400070b80f","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":106,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"a6a1a04d-b2e1-48db-858c-bd5a06ea8993","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":106,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"d32597f1-27e5-4105-893e-712a478424ce","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":106,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"a717d108-4cdf-47e2-846c-5b22876fff2e","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":106,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"85bcad80-ab10-406f-86ce-a677330d7d26","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":106,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"2fc9b630-30d4-4647-b117-4e4a4d6ee0c4","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":106,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"15994209-7a08-4ce9-ad35-6c849329f953","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":106,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"828ed711-5894-46f7-a5d2-4f98a9ec0cfc","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":106,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"e0d7cbbb-4034-4f53-ad41-6695a2eec6d6","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":106,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"2318550c-52d1-45a8-88b0-42cbcac3453a","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":106,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"f40b73ba-e596-44c5-8ec7-8ef1482805df","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":106,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"f5d93c46-2f08-4bee-b731-96e83d258116","block_type":"box","text":"international trade relations, cer tain tax and immigration policies, and other aspects of the national and international","page_number":106,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"9d28130e-0aa0-413b-89bc-c3f0d0fcf565","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":106,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"a37ad205-5a05-44e9-acfa-1704fd5b1c6a","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":106,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"d075fe5f-b96f-44fc-9010-07647a2575a4","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":106,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"4393f290-27ea-4d17-a8b5-45d66b250f67","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":106,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"7b251605-3fe1-4bf8-8d9d-03e94e9bda60","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":106,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"dcc611ca-33d7-4a0f-8c74-532fe88a75c2","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":106,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"c90dfb2e-897c-4b41-83c6-524972e197e6","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":106,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"2c8ab2b1-f936-450a-967a-6a8a4221fd32","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":106,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"833bdcad-1d32-44d9-9541-9f3eb6d82bab","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":106,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"aaa09add-6994-42fc-8e9f-27982db20ab6","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":106,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"2019997b-7233-456a-8c19-80f61b68644b","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":106,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"1f1971b0-e04e-4b74-95b4-f327bcb94bd5","block_type":"box","text":"Geographic Risks","page_number":106,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"3494e32d-3524-4f2a-ab12-efe278d9e309","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":106,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"5aebcdb1-96ad-4a46-9154-27fbc5651d85","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":106,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"4a47d0ea-171e-48b1-a85e-1fcd2f09a4d4","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":106,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"1435c480-606f-403b-9c88-f1ce23813554","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":106,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"ab8eeb11-9c89-48aa-87e1-b32e8597045c","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":106,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"9409559c-7a75-4ece-b436-feb90a960438","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":106,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"353c2cd0-d785-458f-9538-a175fdbefb15","block_type":"box","text":"Fund.","page_number":106,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"2b22c9d1-51b0-4132-94fc-ffa421773a54","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":106,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"bcb99bf3-7fc1-4d04-9cd1-82d985dbc918","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":106,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"4279377e-72ee-40bf-a21e-f4688a2315d3","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":106,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"0f92812a-ad16-40ad-9bea-f17e95ad507f","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":106,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"91d7bf9c-e63f-4aae-972f-85cb5c410528","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":106,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"88222759-7f87-4033-a4a1-14ab5956fe60","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and cer tain derivative instruments)","page_number":106,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"1f1601ae-9c3c-4db8-926a-044b20db9893","block_type":"box","text":"II-68","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e8b08197-f6da-43a9-aef5-61916ffbc153","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fefc83ac-90bc-47b0-9bee-a6ed6bcf742c","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":107,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"4a191a9c-cc71-4917-8761-af6f0505b61e","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":107,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"691c2fbe-d64d-4470-81f0-b27e60b32f10","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":107,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"994258e7-b9a5-41c0-bfba-f7fa1b7fe0ea","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":107,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"a43c8ce7-27a6-4cee-ab4a-94839827107d","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mor tgage-related securities, interest rate swaps and other","page_number":107,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"f64a9448-2a20-4c13-ae65-688c2341b362","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":107,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"5eb652f2-54a8-4454-a1a4-2881482ab623","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":107,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"7a30ad64-b2d7-4d5a-b08a-b9c4d5b6949b","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":107,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"75359257-f31b-4c66-b5be-eadd64f79f78","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":107,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"c0dd0262-b421-43d8-ab62-52dd9dc8a433","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":107,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"1ea46c0e-a6a1-4dca-800f-ec9482b70d91","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":107,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"017e1bd9-42b5-43ea-b88b-09d2c0f2201b","block_type":"box","text":"e.g.","page_number":107,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"ded7b551-b086-4ef1-b640-3c2d3cdeb1a3","block_type":"box","text":", SOFR for","page_number":107,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"448a0d43-8459-4f29-a1e8-73a057312632","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":107,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"c2a3ddf4-5d96-47e7-a60d-0cdaf59ddd99","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":107,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"64ead772-aaa2-4741-a19e-b60ece2d5878","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":107,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"75ca4255-c531-424f-a192-883ddaba9ea5","block_type":"box","text":"determined.","page_number":107,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"aa1fce0a-89c7-4cd3-964a-fbd389f92cc4","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":107,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"2b47deb1-8432-4755-b240-f3df0dabac51","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":107,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"cbae2bc5-588b-4759-97fe-f6f109d5aafc","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":107,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"9a34171b-6c09-4f80-994d-166f362ee895","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":107,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"44f14fa1-6f83-4ab9-95d1-faa82bfa6960","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":107,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"a509e755-f1a0-4b2a-9e2c-4d8dcef609cc","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":107,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"bd0ffddb-46bb-4e9f-90c2-5d509aed71a4","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":107,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"29ecb901-4697-4de4-97d6-805f7dfedeea","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":107,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"44926277-81d7-4949-91d3-8def57dd726c","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":107,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"5cd77e39-3339-448a-95a1-b4b337862d93","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":107,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"3802607e-e0e9-4c3b-bb93-155322c549fe","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":107,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"0ca490a6-084a-4b16-bda8-9ca1c2fb1e8c","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":107,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"29b2a6ed-407f-4273-86f0-13682a3f45f6","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":107,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"98aeb8a1-7874-472a-a0c6-251318dd157d","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":107,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"f42dbbc7-c693-4ca9-9980-cf68b244a40f","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":107,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"5992b823-e1cc-4d80-b8b8-04592bb6ec74","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":107,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"3026b82a-722e-4f8e-9526-5da969f19316","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":107,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"e41963bd-fb6f-4fe9-a3ac-6fa0d76ae7f9","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":107,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"c31803f8-dbb6-4804-ac47-a4a919385237","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":107,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"2473fa71-879e-482f-a60c-359c2b706600","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":107,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"9b8e8399-94fb-4283-aa7e-fafba9c9499f","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":107,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"219504b0-9a1c-4061-8f48-f63187dc53ee","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":107,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"7f61c59e-6d17-431c-82e1-21255bd07788","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":107,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"5393de0a-54e2-49cb-8432-0aa0c2bf54e6","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":107,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"7a8c0d1c-a0a8-46de-a1a9-d9a0950e16d3","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":107,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"457dcfd7-b046-4240-b560-752c4bbf3d40","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":107,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"7f34f454-94ce-40e4-862b-488b5e1d9a78","block_type":"box","text":"cer tain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":107,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"7f88009f-6d2f-482e-8748-9818b84251bc","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":107,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"33cc9250-35cb-4076-873a-deafeb050d28","block_type":"box","text":"consequences which cannot be predicted.","page_number":107,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"974a296d-2f22-425a-9a2b-b849a18a4607","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":107,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"1dfe9d6a-408b-429f-a200-f74b4f6ffac8","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":107,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"7656baf6-f613-4924-abb9-6f0210f370b6","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":107,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"5d4545d7-4106-4106-88f8-d3d949f85597","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":107,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"cf96b34a-d4c0-4ca3-a322-178bcde5179c","block_type":"box","text":"term of the agreement.","page_number":107,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"26d8ad13-a138-4ff8-85e3-1492a265e9a4","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":107,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"e31c70f8-514f-46c7-9017-2e95c63217d5","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":107,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"c8081845-507c-4751-b6e4-15c8d200ed80","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":107,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"5c10194d-3bd5-4214-9330-51627ce2e061","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":107,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"b136239e-6a63-43a8-afb1-0933dc4192c6","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":107,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"90753a3b-0f0c-4087-b91c-6f1bc08d5ea1","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":107,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"d1eed593-8dd5-4bc6-9b0e-8e2e609f59d7","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":107,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"de392ccc-3ae2-41ab-8a4d-4cc56a325a22","block_type":"box","text":"II-69","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2d01acd1-40f6-4fec-95fd-38b00ff9e411","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"161d056f-1c50-45e8-8834-035aa07315fa","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":108,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"4d03ad7a-3d59-462e-bf6c-18f6eb521806","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":108,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"cb8f9122-5fc0-4d2a-b5d5-00e7e7d1d7ca","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":108,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"b7008090-cadd-44cd-9623-cccf4424ba3d","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":108,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"cb8f80e5-8dfe-46d9-b55c-fe0a893e3762","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":108,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"c077fd6e-890e-4249-bde0-810c16712f3c","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":108,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"3888b410-fdbb-4d08-bd36-4480f660e7c6","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":108,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"ed50b6db-5c1f-44ad-81a5-df012d6bd22c","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":108,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"061b7524-5de1-4e94-9c69-96440ab51e2e","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":108,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"05cd57f1-fea1-4fa5-92ee-8a83efb20f10","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":108,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"f6b67b4e-beb9-46e2-bea6-fa7a71e61c5d","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":108,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"970ab1c3-3c87-4914-a61a-f289f3e12586","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":108,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"185fdd96-1d6a-4611-87a0-7b1308e04bd5","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":108,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"4fb06280-7940-4256-ba50-07639c679e77","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":108,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"3beed00f-beef-41f4-a51d-2dd3aae2f4e2","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":108,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"930d2641-d829-4731-adda-17704250a93f","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":108,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"57603de8-0395-4875-aa3e-88ddb3dc9edc","block_type":"box","text":"or by another authorized securities depository.","page_number":108,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"c1cc31c0-63fa-4b77-bd3b-00499d202c3f","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":108,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"5a1adee1-7bce-42a2-a2d8-5222e28d5711","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":108,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"dfd4d50e-075e-4de6-9a62-51460746d0bc","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":108,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"59637239-5442-43da-b1b3-edb201d18ca9","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":108,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"2e9ff198-3a5e-430d-b641-00ab3be880aa","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":108,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"902871cb-a542-4d64-bf0c-b241e2b57645","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":108,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"1c2b44a7-a4b6-411d-9610-7c1fd970feb8","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":108,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"9ea72254-9234-4a1d-82ae-3b329005cf22","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":108,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"4806d77e-6920-4fc3-8c61-1b70bf6f5452","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":108,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"dbe67e92-796e-45f3-92a0-81f729f54e13","block_type":"box","text":"the repurchase price.","page_number":108,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"949310f5-db34-402f-8d00-451a19ea2f8e","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":108,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"8257fd6b-3d2e-4ce3-a65e-110c204f119f","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":108,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"51aa1951-4b71-4411-afe2-c74a0d516d04","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":108,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"22912a5f-1cb6-4f49-bf8e-acdda8c4ca5f","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":108,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"d4fc0097-8fd2-44dc-b306-d00fba184494","block_type":"box","text":"strategies without the repurchase obligation.","page_number":108,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"bf80874c-4e73-4278-8153-95e952f67142","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":108,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"3a79903d-7824-46df-a0d9-3321e923f2c8","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":108,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"a0c07589-3ea8-481b-add0-7a712fcdfd72","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":108,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"a269598e-3c01-478e-bae4-bc3eaabe9324","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":108,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"17ac4e39-dbe1-44e0-8351-00a31a997e83","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":108,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"7982a7f8-51a1-41f9-b309-c88777eae19c","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (","page_number":108,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"47517f91-f29a-4c5e-b25e-b2061f752250","block_type":"box","text":"i.e.","page_number":108,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"8d1ae8c5-a67c-4094-924a-3132f68ad36f","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":108,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"623fe920-befd-4c9b-950e-dc5c4fc20b35","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":108,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"f63f75c9-e106-45d5-ae37-b94492c28108","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":108,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"6823a3fe-8a75-4aa5-ba6a-96f2ea39abb5","block_type":"box","text":"and income involved in the transaction.","page_number":108,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"01f3a8c6-fee6-4a60-8781-3ec468a5174e","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":108,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"9c481103-4cb3-4571-9783-e7d5d928a317","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":108,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"bbd9cf40-198e-481b-be9f-2d7e742213bb","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":108,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"ab6b07a9-28c3-4809-a99a-d03c455c6a62","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":108,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"d7d7c533-4663-4831-aece-f82af26460b1","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":108,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"8cc28628-f654-4e18-9d98-4a49c1c9757f","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":108,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"88b19453-cec5-48be-8915-31756bf48928","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":108,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"88de1886-6d10-44db-91ec-90cbd12461af","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":108,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"c489ef76-0f96-46fe-9d18-81dbb1df5f47","block_type":"box","text":"require cer tain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":108,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"8f192710-8cb4-44a8-b886-6e264640454b","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":108,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"36e61b67-220e-44c0-832f-49b1b93e5081","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":108,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"fccc03ad-3757-49cb-abcd-b36f6ec3ac67","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":108,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"8712e8d8-4c7c-4110-ab7a-569e6279b394","block_type":"box","text":"Restricted Securities.","page_number":108,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"d48b48e5-6ac3-47ff-89a1-af8b647f9f19","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":108,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"fdcb8b73-7737-4d9f-bfb7-2b14dd087b4f","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":108,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"4da4c0d9-28ef-4816-aa27-fd6a20b92d4f","block_type":"box","text":"II-70","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3245b095-7b82-411d-b541-2d6c5014f956","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ed34e2ac-dd65-49ad-8e36-36358cca6b70","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":109,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"26ac6c2e-4aab-4f6e-8a5b-6d8e3b0799dc","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":109,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"a54f5ac0-90e2-46f8-8e38-f91fefac5122","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":109,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"eee90e17-c6b6-4910-b285-efdfc9194d41","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":109,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"230d6c2e-68f5-4023-a890-fa2397822ecf","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":109,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"4248324e-d2d6-4351-b9da-f3490ec2d014","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":109,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"35718e58-9dc9-4d8d-9dd2-fddc3d6ecd32","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":109,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"c8968755-f981-4010-a8d0-5f96ecaa1b84","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":109,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"9dd512ce-fd4a-4ea3-93d8-47fc144d3089","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":109,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"150fb7b3-9d69-46d0-bb93-893050d5803c","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":109,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"121ec80a-c6ee-49d8-bc9b-0d18c9bfdc0f","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":109,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"b1410150-7b75-487d-a098-52bc1ab3f3a9","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":109,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"5c8f1e22-537c-4e5f-8446-fad88ed3125b","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":109,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"c8e93cfc-d3d5-4233-bbec-9c409df48571","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":109,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"eb42c20a-85b5-4abe-879e-8fe0771e2345","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":109,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"b1786e1f-ab70-4149-a5db-bd42cffdc372","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":109,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"86fa0f91-fe4d-49ef-b4fb-ea7a07329234","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":109,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"3e198881-fe2a-4385-aa07-e96747d887f5","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":109,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"6052d87e-d054-42ef-ad6c-21d9459f1cbd","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":109,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"aae6c744-f888-4ea8-a5a9-84e0b098425a","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":109,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"a76ee0d2-fcda-467d-8e16-36eab27b6e24","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":109,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"413ab214-c34a-4c94-98a4-ea0aed95b89f","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":109,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"8cb1d406-29ff-41cb-b2fe-f07f33e22378","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":109,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"9a723bbf-9771-4cf2-97e5-61e40caaa17b","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":109,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"7af20c5b-78c0-4250-b803-d9c691a757cf","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":109,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"2f4c72e7-1d59-4ad8-b99d-3d76222967e4","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":109,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"e36027d5-0b79-42a8-9f43-f5bb6016dc89","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":109,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"4eb4c06d-98cc-4a75-8aab-846fe0098c0e","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":109,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"be4eee52-34e7-4af4-95c0-e6194b84cfdb","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":109,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"382b5db8-75f2-4db3-9554-ee45e6f7aef2","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":109,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"b1bf4c22-0fa2-443c-9be5-20192fc68d2f","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":109,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"917714d9-bbba-446c-a698-7a0529d626ee","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":109,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"f6219295-bdb4-4fc1-962d-c503910d78dc","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":109,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"9c40c806-8dab-4d1c-b51d-3c2cbc1457cc","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":109,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"0b1d64de-f18c-47d6-8dcb-1dbce76a02ea","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":109,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"ef829f49-2447-475a-830e-63961231d9c6","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":109,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"7e8d8a50-c737-4e64-9a96-36647c185d12","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":109,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"79d4700d-0d45-40e4-8c6d-2706154a7c54","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":109,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"ac463123-f5f6-4779-84b8-fde3bc67ea87","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":109,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"4dbde6e3-dfc9-450b-b532-2fdc151cb1de","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":109,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"1e899043-bb9d-4c97-a2fe-c057d13bb41a","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":109,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"0eb8475f-efcf-4ed6-8682-c253c2c4ac41","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":109,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"419d7eb3-e767-463d-bc63-40fc9654d149","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":109,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"f3752e7d-54cb-48a0-ba41-b74d4db2d9ec","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":109,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"96644076-4de3-4f38-937a-b4fd5f137c58","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":109,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"38b3f00d-64e6-4c2e-835a-9670d1cc8644","block_type":"box","text":"conduct por tfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":109,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"fd8cb57b-450b-4a8b-ba7d-6a6e79315f8f","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":109,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"62bcf421-0b8b-4b43-ab5d-3fbc54193285","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":109,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"2e146a10-6c2d-4520-9e2c-bbc958145c76","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":109,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"7c512c4c-044e-4463-9ec1-91da3685d7b3","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":109,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"03132894-5a64-4123-b6cf-f3835c875b9f","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":109,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"dcfa8d6c-8b95-4a17-97fb-6efa80b684c5","block_type":"box","text":"especially as that Fund grows in size.","page_number":109,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"2edff5d2-64bd-4b79-9989-f3db8e134a58","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":109,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"9b00872d-655e-4f4a-9d55-cabd68cbe040","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":109,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"37800d6c-f0d7-4691-9e70-f1b9b5e6ee51","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":109,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"803734d2-8e94-48fb-ac76-2d2bc3a30178","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":109,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"41cce872-4721-421d-a860-c74653492d88","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":109,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"2b193066-80b5-4547-8282-20610dbe7c04","block_type":"box","text":"II-71","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"188f7a76-2296-4149-a25b-3bb9e44077a4","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6d7fb748-f4b8-4878-98d4-21dc36e9dc57","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":110,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"0f831307-6b6e-4ee1-a1b1-b3fe2d280b15","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":110,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"08ecbb4a-acd2-4ee0-9331-fd9ba6f74486","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":110,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"a28672c3-2fa7-4f90-8043-ac6b0328df2a","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":110,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"748f44d1-2edc-406b-a86b-4abe518905fc","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":110,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"848025a4-b073-4056-b5f6-7054b3d3ae6d","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":110,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"0cb71ebd-c3dd-40d2-a17a-e4be55ff7c2c","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":110,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"94a13370-0e12-4469-a7de-731f0def682a","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":110,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"0f39b271-07a6-4381-a87c-1cc9644e87c6","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":110,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"36a5baa2-b980-4b82-b136-bcb64b2b0dbb","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":110,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"b79e5b97-491d-4307-a7a9-200d22acfae8","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":110,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"16810403-4976-4c5e-a898-5cd5cdb31b6f","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":110,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"b08798f4-73b6-43ea-8b97-97591a4160d4","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":110,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"ebf0b4b1-6e72-4dcd-907b-f4e099c1207b","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":110,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"fe60b6f9-d194-4534-ad46-b3ebd3f12fbe","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":110,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"f610cbb9-0e7b-4426-9b11-2d8644accbc0","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":110,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"2039e633-5b0d-45bf-87f6-2ce49eed0f8e","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":110,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"e2c3d188-947c-4797-970e-c337fd901c4a","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":110,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"a7db0703-85ea-4427-b309-066e2f679bbc","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":110,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"d2754ae2-0190-4fc1-a419-8cced7750b3e","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":110,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"e020d5f6-7584-443f-acf1-6ec27e43bf54","block_type":"box","text":"Fur thermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":110,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"dc089d3d-17d4-40ba-b755-49366c19785e","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":110,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"03f36514-3d6a-4b24-9642-ce78063abddf","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":110,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"0e286ad9-a173-4efa-b380-7d7ca677ea7b","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":110,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"8fbce71c-8e61-412e-8c67-3cd3ce027204","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":110,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"a986e767-af38-43c6-b27c-97fd320f583b","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":110,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"1bbdd4bf-eecd-4f6f-9b48-fcd8431bfe4f","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":110,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"d837b951-1ac2-4883-942b-9ec3932e09c4","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":110,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"83c64528-84b2-4723-b85a-d4399ebdc1f8","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":110,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"ddd8b1f9-195c-46fc-b81e-7287db0150ce","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":110,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"194e0a16-24b3-42ca-b7c3-5e19b8f569eb","block_type":"box","text":"similar financing transactions (","page_number":110,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"07f82342-77d5-48d0-90a6-3af6de3d78fa","block_type":"box","text":"e.g.","page_number":110,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"ac3a0041-8505-426c-9ef8-a7df33f98a8a","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":110,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"34e4632c-9d64-4d18-ad4c-f7eb94746719","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":110,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"a07eb263-b131-4405-b502-1e6f64bdf98d","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":110,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"fc9536e6-c182-4137-84f0-4b441d9d0bc8","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":110,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"046b7e79-4384-4ff3-9a4f-47744d1e13a3","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":110,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"358f6e4f-37dd-4a7c-920b-4d198cdf40ac","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":110,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"5ecbb544-3717-4691-bcb4-b90816892aef","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":110,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"84861b9a-5292-4352-a43c-aa6da62b8dc2","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":110,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"c849ac06-f501-4725-9391-edb749938f16","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":110,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"2a7fc678-26c7-40b1-9ad3-896291213313","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":110,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"129a7e3d-a286-4f66-8f39-dd12756710b7","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":110,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"f5d8b000-fbe7-4e39-9d2f-068bd018cd7a","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":110,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"dd3fa10d-0203-4bbd-b06d-2a86db9f7440","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":110,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"2fa885cc-8dd0-4be6-a9ac-b14205b29679","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":110,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"0a0d9d24-bbaf-45b4-b9f4-e4c0024f8ae0","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":110,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"7dd9624f-7cf3-43a1-ad55-74d3b036e1d1","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":110,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"7f0bdbd6-4ffd-4d1b-8d66-62e7e20fabd5","block_type":"box","text":"amounts to be received under such agreements.","page_number":110,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"6c0bc3f9-bada-4dc2-b647-fff6a1ca984d","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":110,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"c2acc71e-6443-4296-ba30-081e8d74624f","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":110,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"112a2cdc-de0f-4537-938f-0b14c9017a35","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":110,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"3c90c069-22ca-4ca7-a90d-bad42856b518","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":110,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"b0795f06-c581-4214-9312-dc3a0a1a9083","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":110,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"8362326b-b0e7-4d65-b781-7eb040035342","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":110,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"17297343-cbde-4264-bf49-f993779db468","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":110,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"b59c915a-adf3-40c5-ae0a-b598beedbcdf","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":110,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"72f845bb-3397-458a-8e53-0880ccb6a522","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":110,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"b68c9603-a690-4dd1-80a8-10c72c519791","block_type":"box","text":"II-72","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ab389553-05d3-436f-a79d-c8f8885e8dd0","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"39287be1-6ef0-4703-8ec6-7bcbd1437b63","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":111,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"d786afff-a35c-49d4-9bba-ee8d4c3188c7","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":111,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"b12e2641-d3ca-4ebe-941f-2b6991a55f17","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":111,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"a3604b7d-064e-4f91-879b-b7b9c150ee16","block_type":"box","text":"Rule 144A Securities.","page_number":111,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"f475a0ab-56ed-49d1-8e03-afc05aca008a","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":111,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"247f561b-c490-4e72-9e7b-5a2beeda7647","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":111,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"68c191c7-202c-4853-832e-eefc315b261f","block_type":"box","text":"Securities Lending.","page_number":111,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"01d95e68-be56-4704-a0d1-d5275f36c2a8","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":111,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"e3c236ef-6fd8-4e4c-9350-7fdb28c155ba","block_type":"box","text":"be creditwor thy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":111,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"e55b2ffd-7648-4057-8798-9231c3dc9612","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":111,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"8556901f-3352-44b1-8464-7ec89036b8d3","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":111,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"81d52a9f-7a40-4b9c-8b53-c40c441bf702","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":111,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"a0a0594f-81c6-47de-a627-44dbfc931851","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":111,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"63047fa6-7272-4638-b10f-48a1baf93515","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":111,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"77d31403-4bcf-49c5-98a9-c08ae661cf7d","block_type":"box","text":"the securities were not on loan.","page_number":111,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"0bc0f183-66ae-41b0-b84f-f39140052f4f","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":111,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"ffa32214-543d-455b-af4e-0882ef524338","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":111,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"c504a9ca-7610-4e63-97dd-9678573013db","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":111,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"e1f67fd9-5bd4-4c1d-87c7-7869026ef016","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":111,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"373ac451-661a-44c0-9fec-8b0491446aa9","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":111,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"7a67ce08-89b5-48cc-b921-e4d48396b50c","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":111,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"54d590a4-df2a-42db-accc-2e80c2cbe5f8","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":111,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"eb14ee33-ce71-4e48-bae7-13552a273660","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (","page_number":111,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"e4abb1fd-81fa-4d4e-ab56-ca761d39a38e","block_type":"box","text":"i.e.","page_number":111,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"8a98d64c-ca91-41be-ba12-2b39e34c4c80","block_type":"box","text":", the risk of losses resulting","page_number":111,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"926b9e74-828d-440d-b523-df8f7badce6a","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":111,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"1baf281f-b148-4188-87bd-8dd17184456c","block_type":"box","text":"i.e.","page_number":111,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"505aad1e-0802-4316-800e-8ff0c133c5e9","block_type":"box","text":", the risk of a mismatch between the return","page_number":111,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"953a4d61-89da-49d2-a7bb-087332ea0475","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":111,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"6949a474-046d-44da-9527-e330aeb653a7","block_type":"box","text":"i.e.","page_number":111,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"9d7ce324-776c-4510-ba31-83381dd3bd28","block_type":"box","text":",","page_number":111,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"0d6da672-1d16-4420-b583-d9eb916783bb","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":111,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"12a81273-7270-4a11-a59b-bd330339ac50","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":111,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"73df9052-3e55-4d7f-a28b-1352a585f708","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":111,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"1df75305-0e81-414e-8aaf-18afeac6298f","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":111,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"4b892d06-6570-4b66-a13d-7589f102a5d5","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":111,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"acb8c5a6-c092-49f6-ad34-c51a6b429aec","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":111,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"5f173a6c-c071-400f-aaa9-07d39a6b8118","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":111,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"2ebd9518-126f-4f54-bff2-9b059c698c54","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":111,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"7138e56c-6b3f-4f2f-94fb-ec00929fb040","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":111,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"6123856d-40ff-4fd8-bcb5-c9a88f4c3243","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":111,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"52c02bf2-e67c-4f61-a36c-cbc779c18dd3","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":111,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"486428fa-9872-4ac7-a39d-5de275c03e67","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":111,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"49a2d3eb-222f-4fb9-b1fb-e6ee53322a37","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":111,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"69d1478b-e2d9-41f3-aaf7-004d67287186","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":111,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"339ff311-f1e4-454c-be52-323e6a741461","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":111,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"208e7af3-b625-4a23-9fa5-e0b2964a9c7b","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":111,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"cb1df78e-ca02-4f07-ad2c-28828f351a21","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":111,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"1f090866-8dad-4d0a-8462-c5dac2c2f846","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":111,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"4fca545d-3fcd-4e51-a094-88b4a8eb7427","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":111,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"e84d09ce-999b-4326-ab86-00728ddee6ec","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":111,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"c927b95e-8f34-4905-8823-4000fb70804b","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":111,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"bab5aff6-0516-4651-9d50-5be50cbc8cd1","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":111,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"8bb5c982-cfb3-4dcc-b61e-2255c3aaa232","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":111,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"744cd242-1928-4530-a668-5640f9f2de39","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":111,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"bceaec06-cf37-409f-87ac-ea73afdbd3bf","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":111,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"b824e1c8-316c-4657-b3ba-2960f1b17208","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":111,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"15d360ca-434b-49fc-a8b1-4982a28da0d5","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":111,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"e3397e76-f0c1-4792-8302-864c5e5c703f","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":111,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"b71b96d0-55e5-4a5d-9bb8-429362ad6bb7","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":111,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"5d749500-6b5e-4edd-be55-894103e9ef86","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":111,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"1d90c49a-dee4-446a-845b-dc5f29390d86","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":111,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"5ac29696-0613-4cd9-9da2-07414a18ad2d","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":111,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"812a082f-64f5-4520-bfcb-1da1021eeeeb","block_type":"box","text":"II-73","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"186a51a8-ac1f-49eb-b062-e1f3bebc97d7","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9cca784e-9cb0-43bf-8c89-6ee14000c83d","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":112,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"3de22e44-1501-4d3b-ba06-7113a016a17b","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":112,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"36bf9a64-ecc5-4b03-937b-938d0659d858","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":112,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"afdd3e80-7971-48c0-b4e4-fa797fe0e1ef","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":112,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"8fab0a49-a738-4402-85bd-2cd2042fae9a","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":112,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"962aeb00-ebb8-4199-b092-8a30054372a8","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":112,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"b9d72614-b4fb-441a-ae2c-b48d68d3f911","block_type":"box","text":"information (not including par ty names); this may include, but is not limited to, information about securities loans","page_number":112,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"a8c8cd03-546d-46a0-8bf4-7d4c4d25994e","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":112,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"1dc6da31-fc37-47ad-8d28-6789b8eb7b9d","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":112,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"a832d8cb-f32f-42eb-a735-8c31faf18542","block_type":"box","text":"the current expected compliance date.","page_number":112,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"efaee4ab-817c-4c9d-8c23-d6e95367aaa0","block_type":"box","text":"Short Sales.","page_number":112,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"cb1666d6-0f9d-449b-9b05-cb4a0ad1507c","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":112,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"ac4a96fe-3b89-438a-99a4-2f2c0b3c6a76","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":112,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"89a6a953-ce12-4ad4-adc4-7f5828edf841","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":112,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"88bbfb6e-bbab-481b-a4a3-5648fb42c7cc","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":112,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"bc24c72c-1439-43ce-b31c-06a3eac0f278","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":112,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"7a617e0f-0fb8-441e-bc3e-540e6a5c26c5","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":112,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"c684b578-1d27-459a-8522-dd53d9c064e6","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":112,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"5f3d10dd-d0e5-4ddf-ab60-6972d363707f","block_type":"box","text":"securities to the lender of the securities.","page_number":112,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"d85d3b8f-96f3-497e-ba1a-9bdf47865a76","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":112,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"7688bc8b-5db8-493a-a1fe-d929263b3541","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":112,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"b99fff44-3399-4655-a4b8-d05f53097b28","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":112,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"0a103820-4ccb-4988-9ce0-1c9c0fba541c","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":112,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"8a60f86c-c93b-4260-8681-e035797dc5d4","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":112,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"78237f86-923e-4a0c-bbf3-e02ef33029f4","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":112,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"f348a49a-880e-4f6f-bf86-65473566a4f9","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":112,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"cf5752e9-d404-46eb-8d12-f1ed13195ae5","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":112,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"47c79b1e-98c2-4f44-bbc1-895dbda0ac94","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":112,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"0160dcf7-94e8-417e-ab23-a5a70a4fdebe","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":112,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"10ebc73b-b622-41a3-89ce-8fc7d1eb6e8f","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":112,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"f4c8f7c1-95f7-421b-be74-3b7807fb09fd","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":112,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"e4cbe84d-40fc-41d4-a079-1258b12170b1","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":112,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"7e08215f-daaa-4014-9332-7a3cc6dc772b","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":112,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"cb5c3631-272e-437c-b704-29d66987cbdc","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":112,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"3966102f-339a-4ec5-9031-4b83c7595706","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":112,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"903190e3-06a7-4b8b-941b-75765ac1fecf","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":112,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"445b015a-577e-42e8-bb47-aa4e961c73c8","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":112,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"c84c0098-c6e2-4ab6-8598-54c1daef5f0d","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":112,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"7adcb809-c1a7-4101-808f-ce6420aa060a","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":112,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"680591c2-cbc6-4332-ac7d-62d982f19d85","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":112,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"8b56c744-90e6-4ec4-b473-6de31a625842","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":112,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"0a015126-c286-4bd2-9cd4-25e86e5f588a","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":112,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"07ef01f7-14c0-4071-9a42-78de04f5fbce","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":112,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"2fed1654-e25e-4976-af7d-03febbd86133","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":112,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"73f81019-8790-497e-91d6-3aa2704fec3c","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":112,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"8f5596d1-d77e-4b40-bca9-73769c8fb225","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":112,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"ceb49717-7761-4170-ad85-89d59c395341","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":112,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"b4e52f5b-af47-490d-b9bb-373ff0e8e72d","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":112,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"8cdf9aea-450c-43ca-baa1-867b09ed0075","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":112,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"f2312c1b-0aab-4cd6-bf54-7defa9d10032","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":112,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"a12fcd92-1043-4d49-90f6-23397de79958","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":112,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"62345e74-0b8a-46cd-81e3-db6b52441edf","block_type":"box","text":"potential acquisition oppor tunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":112,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"958b1d46-fa37-4422-a1e0-671ffd5b75e6","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":112,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"f97446db-79dd-42f0-aade-acf38153b2a8","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":112,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"59bea8e7-5323-4848-a86c-6d840a7812d8","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":112,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"ed2e6a26-4414-4e18-a0cd-2097a19e2a68","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":112,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"f774804a-e7bf-4fdb-ae1d-7aed510e3b72","block_type":"box","text":"II-74","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"52a21749-bd61-459c-b85c-21cd16f27c98","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f3b6c179-c8e2-412f-8c51-218c64399a2a","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":113,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"009a9f6f-5514-4378-b3fb-b57fef91b93c","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":113,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"247ed073-9472-4347-8f3a-6341daf25568","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":113,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"cc06535e-df42-4213-a1c9-9e539c4e2925","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":113,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"80412a22-975c-4627-9cf8-bb486ef6052c","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":113,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"bc74a027-ed8f-4960-863b-5f54f13efc6c","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":113,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"21c0ff07-3747-4b92-ad0c-c188aa54b086","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":113,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"ab6d5a03-2346-4f46-8950-8b3b8e1ff704","block_type":"box","text":"par ticularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":113,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"35666e1e-f0d4-4f67-9237-6dfad170bcd8","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":113,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"7dddfcb9-3d71-4818-9413-8a4957d05fab","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":113,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"df57123c-202a-4791-9103-ad0825bd1358","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":113,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"08bb9d4e-0c7f-41b6-baff-c9918cd45d9c","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":113,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"9eabd958-b670-41f8-9015-6f05cd18fc7e","block_type":"box","text":"Standby Commitment Agreements.","page_number":113,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"e2061525-6c40-4434-8fa7-387b67a25a3f","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":113,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"068d028a-6077-405b-8d35-351f84a1b7ca","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":113,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"a4f0ee1b-dc89-477b-97f8-833f8a547c7b","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":113,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"f297ec39-0243-4fcb-8b88-5a40c0006746","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":113,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"5862e098-e017-4d76-866c-882d0ebe95c6","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":113,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"5db281d4-eefa-4f83-a084-d98502daac27","block_type":"box","text":"advantageous to the Fund.","page_number":113,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"e32383c9-3211-4634-94b6-a3967952a042","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":113,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"73eca680-0622-43ff-82ac-6a7e95551ba6","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":113,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"0a74fcf9-9299-448c-b90e-b32f2791fde1","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":113,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"2b3a2e20-55f5-4666-a733-472418a8f28f","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":113,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"f763e96a-8b5f-4e4e-99f8-80cee53f695a","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":113,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"5b6e9e7a-4094-4ba4-9212-91a8d6d0cc5c","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":113,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"b0bda7aa-9feb-42f7-915d-7fa742ffd0e3","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":113,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"093b247c-300a-4de1-a028-1d9711537e3b","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":113,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"e80bf1f7-469d-495a-a35d-a4603aa22645","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":113,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"7e8b1db7-e092-432a-a7d6-615ca62db994","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":113,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"a42d7287-eb44-48f0-97f8-00929ee9b246","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":113,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"ae5922b6-d245-45eb-8c7d-a0f32c2768bf","block_type":"box","text":"por tfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":113,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"5a5ff8b1-052a-40ea-9890-b121d489b580","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":113,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"e7ed616a-3a92-432f-b6bc-3ad62eea81f6","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":113,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"61ec1314-ee0d-481e-8523-5481c43e3e70","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":113,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"cca2eb9f-ab04-4a7c-96f4-7934d4fc0cdc","block_type":"box","text":"Stripped Securities.","page_number":113,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"51ccbd10-516b-477a-9f2a-7677d4a7e9de","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":113,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"cd18032d-4a48-43ea-89a3-b71a68380fc0","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":113,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"119381e8-adf0-4df7-afee-8b1146e55858","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":113,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"5a94c0ce-d689-4a18-a03c-7eb817a0f349","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":113,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"2c338885-813f-46da-abad-1130c0963f5d","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":113,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"1dc24a7f-9e50-429c-9bbc-3f25fce28b58","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":113,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"caec838e-99a0-4403-8534-f1bf02acdb07","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":113,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"51786988-4ed0-4d62-a67f-ba4d16071403","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":113,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"c1a9376b-838e-4f6e-9f41-81c51ef1d593","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":113,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"d2ff42c3-6da7-483a-a31e-2ffc7307ea04","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":113,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"456bc7ad-b738-464c-b40b-b1a2ac66f4f9","block_type":"box","text":"Structured Notes.","page_number":113,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"c14a54a0-81bb-4d35-b67d-9f5c2f566dc6","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":113,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"455b703e-0f1d-42f7-918e-c7872d4130d3","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":113,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"e1e10f41-3ea5-4673-b717-0194a4cee7e6","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":113,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"7c65b116-6b9f-44d8-bde3-ab25d1b33a11","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":113,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"6e9719bd-b2cf-4dd1-a37f-d26b9be206a6","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":113,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"15facffa-9a1f-40c1-bc84-8ef4a1ce3dec","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":113,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"2861aa4a-7785-4c0d-b61d-0797bb4cc4a0","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":113,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"693de628-de9d-49a2-968e-1a7c11785dc9","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":113,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"c062383a-d185-44a2-bd24-9cc2ee67f850","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":113,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"f4ca32ee-5679-41fc-89ce-189b26954682","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":113,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"7e39294d-0afb-4d98-a6e6-5219be289c34","block_type":"box","text":"II-75","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"31218066-d6bc-48bc-af7b-bd262e27d2a0","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6a2700e3-61f5-4f5f-9a90-c13d9efd7491","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":114,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"b615f90c-8555-43b0-90ba-b3a845cd7970","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":114,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"a9cc4dd8-8576-44f9-9642-dc03398c0b2f","block_type":"box","text":"the risk of loss.","page_number":114,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"57adf56c-0ff0-493b-9556-9d49ce878517","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":114,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"148b9b2f-5057-48df-9e3b-ce3ddc640f82","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":114,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"3653a98e-279a-4bf6-af3d-de21453a53f3","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":114,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"320826f7-a1a0-4d64-9d1f-5ca27f4d89d0","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":114,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"a4260fc7-b6ed-41b2-ad93-cbd6dfbe361a","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":114,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"0418c357-d8d2-4c48-a37b-4b1eb22a35e9","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":114,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"8111a9d5-abff-44a5-b7e8-1529c22499b8","block_type":"box","text":"Taxability Risk.","page_number":114,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"da4f8a57-ea51-46e4-998c-ff565c35159d","block_type":"box","text":"Cer tain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":114,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"916951cc-cb35-4551-895e-fc96f6062318","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":114,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"cd263d12-0da5-418e-87b2-ac56027b0c0d","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":114,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"6a049a1c-e6e8-4960-be65-01b4b2f6cf17","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":114,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"7dd52f35-ca76-4c08-acb5-971377f19cac","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":114,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"3c9a35a8-a5ae-454a-af51-d3cb1d72d5ae","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":114,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"8f8043f7-41d1-4828-9585-a482288708c4","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":114,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"d9d429f4-f5f4-431b-a943-6c97f10085f4","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":114,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"614ecb35-41f8-44c6-86d5-a96da9b41b54","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":114,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"4b5f03b9-93be-40d0-b309-02b83493be86","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":114,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"2d5b757c-1a11-499c-b6b6-2b603fcb3722","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":114,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"5e4bdb72-1085-47f5-a4d7-4b3d84a4dd81","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":114,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"ffb30c5b-dccb-4952-ae0e-0a6fe7e510fb","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":114,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"eeb3f422-5e70-46da-b7a1-1b14d6e8326f","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":114,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"fae0b04f-22c1-427a-bdfc-b524f101584b","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":114,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"4f85b3a4-96b4-4cf9-908c-fea7b4ca80b0","block_type":"box","text":"the value of an investment in the Fund.","page_number":114,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"b103d8cc-b99f-4e4e-b79d-192cedbfdc2b","block_type":"box","text":"Temporary Defensive Measures.","page_number":114,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"2ac3928c-c506-4c1d-b3e8-74a555261279","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":114,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"46a65be7-946f-45dc-8221-c374d931da7b","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":114,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"570551f4-7061-438c-906c-f7f579dbfd89","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":114,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"d956f83f-b349-4937-b63e-11c328a15b39","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":114,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"58eba931-8c66-46d1-bca7-8eac45a77edc","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":114,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"6a00ec6d-cd74-4322-bcdb-38f81ab7168b","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":114,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"0c99f109-1c9b-4d2c-928f-1753e5956de6","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":114,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"3a99e4be-aa61-4da9-a312-2004e7db39e3","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":114,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"db8a73ac-5865-4b37-a5c0-5c9fe0ec227d","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":114,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"fa74406e-5560-4ce8-8c56-593332799f68","block_type":"box","text":"its investment objective.","page_number":114,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"fc772c93-39d9-4a6b-b6ad-9d545919236e","block_type":"box","text":"U.S. Government Obligations.","page_number":114,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"4b5d0c26-b502-4e23-abc7-dea9635daece","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":114,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"f17ad926-e2ac-41d3-9883-b8e9a5bc4d5e","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":114,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"59505eba-988c-4f9a-b99e-1b81b819db63","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":114,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"b3f5b967-44e4-46aa-8f86-83c6e6748d16","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":114,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"f9b229ca-80c5-40ce-877f-a85ce1f28674","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":114,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"698bdcb4-65f5-4af2-ab48-06bfe32d9611","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":114,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"cbb8ecda-3536-4f79-b0a6-ff153530a4d9","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":114,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"75b15728-2ec9-4a65-abb7-e0feff047ba4","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":114,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"6e6aed12-41df-483c-a18b-32b640c02bfd","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":114,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"2ee212bf-6bde-4519-8f25-4651164e78c5","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":114,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"ccfca96c-5f07-4f34-94d6-c2173cc94dca","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":114,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"d60c30d2-48a4-4f0e-86cd-8a28fe75c063","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":114,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"241ccafb-0fd1-4034-aa56-b76ec65d242e","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":114,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"e5b692e6-63b1-4601-90b9-6f399f697b01","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":114,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"ad714116-ee4c-4e39-9c2a-9414b6269822","block_type":"box","text":"Administration, Expor t-Impor t Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":114,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"16e00f51-9b4e-4f26-95a9-85c0bcd2aa39","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":114,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"3f27f554-2d73-43c3-9b74-35c52f328f13","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":114,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"9e2ecae3-d3f3-44bb-866c-eb85d53078ad","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":114,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"b721277e-f5d7-49d8-9b73-a115a0a6fa78","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":114,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"9ec38b5a-911e-48d4-9505-161d9219e88e","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":114,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"5cb22295-6640-4af7-acef-8bb231f06a90","block_type":"box","text":"II-76","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9bb4d0a4-a6fb-4170-900b-b09c56c43d1d","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"93ebf840-c94a-419b-8ff7-fd9eea696acb","block_type":"box","text":"U.S. Treasury Obligations.","page_number":115,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"bf183465-114a-4a76-a453-2eadadd6e29e","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":115,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"027fb40b-4370-43fa-a6e9-5a6104b12acf","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":115,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"ebad36a3-663e-4ad6-af09-145ad8a32434","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":115,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"54eedde9-7184-4a58-b264-9a62f5320398","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":115,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"bcf31df3-de2d-4c0f-ab93-fab3ad2331be","block_type":"box","text":"do so.","page_number":115,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"5745c9d5-4890-4929-b06f-e90599a02ff9","block_type":"box","text":"U.S. Treasury Rolls","page_number":115,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"c4757190-dd89-4b1d-b2f3-e1668e85a992","block_type":"box","text":".","page_number":115,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"6351eaf2-01a3-4296-bab2-d6395eed2d35","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":115,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"f677f679-b5bb-454c-aa56-c3db0a7f705a","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":115,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"d87f3987-3ddd-487a-93ad-5caf0f62a6ff","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":115,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"1c4d7bae-64b6-49d3-8cee-7b43929d676f","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":115,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"d483a1e3-294c-4245-88d3-993bbe889f38","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":115,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"5a9ca5fe-cb6f-4ac5-aa16-fcc265abdb6e","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":115,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"033700fa-9c07-4676-91ea-22341acea176","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":115,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"f6ac489d-dbd3-46ea-b625-f17c7b69540c","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":115,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"e9c4e55f-3082-490a-8854-f15a2c4d75ad","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":115,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"2873a740-1765-46c4-ae71-baab2aad0985","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":115,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"0574dd5d-dca1-48fc-b088-af85eb544c05","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":115,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"bf4d5d6c-3329-4486-9800-773276cdd678","block_type":"box","text":"Utility Industries.","page_number":115,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"84b72812-1c8d-449d-8c53-a66b1a5694ad","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":115,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"42e39a87-9c80-4308-bbda-8f47526c4fdb","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":115,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"ecfc2d9c-120c-4731-874d-05c4dc967168","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":115,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"d4bc2724-ca7e-44d1-b2f0-1fc739ae14bf","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":115,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"72105876-6e23-45d4-9b81-644e62561d23","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":115,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"362540ac-9a7d-479f-af97-3850499686a7","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":115,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"21e66857-324e-4424-9cb0-d12a0fac8899","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":115,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"a9546222-d63b-4562-be04-7d3950feb5c1","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":115,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"80aed5f6-48c3-4b5b-a504-faa495f616d3","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":115,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"7c328589-f52c-467f-a38e-72f9380d632f","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":115,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"03a96a75-676a-4b46-973e-dfd4ccbbbdc1","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":115,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"cf3e6346-a54d-4e13-a49f-2fa508192bf1","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":115,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"c522561a-0e24-42a1-ba7f-6d5041ec9b13","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":115,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"b93432d3-6396-4a28-b6fc-983f8eff9d86","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":115,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"62e5bcb0-dc7d-4f02-aaa2-acb1695cebde","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":115,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"23ef3033-fc5b-4df6-973f-ce4ca3feff9f","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":115,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"09b350bf-6813-4cad-ab7d-f25844c73c79","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":115,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"824d33ac-9541-465d-8fd8-93b09e1f39af","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":115,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"e352f8d7-ad4c-4417-8d16-c5f872c8c10b","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":115,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"d8dc9e3e-2912-4867-ac57-c955bf9ebc71","block_type":"box","text":"utility.","page_number":115,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"f522c68f-52e7-45c3-927a-6d28a4d07ce4","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":115,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"27233bc7-5538-4b9b-bced-3e92b11e2ea7","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":115,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"33d30b4d-78a7-4b4b-933a-c54db41801ec","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":115,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"5b2d8618-4305-4417-bb13-5aa20ae5fc64","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":115,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"398c26f3-f357-4d7e-b6a6-058fc0cb0d04","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":115,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"893f0eb7-4602-487f-84b7-8adbf043d353","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":115,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"ea4a4b7b-5a54-4bc7-88f7-cd11b92345a4","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":115,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"de1c1641-b4e6-4a56-bbd5-7d2b33d6d9d2","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":115,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"e2fcead8-37c2-47b9-b356-705b24d27797","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":115,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"9b9863f2-3e6c-4ef7-8910-ac334aed8506","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":115,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"3d5d2d94-d774-4d05-89fc-fcfde4c7f77e","block_type":"box","text":"continue in the future.","page_number":115,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"7a1e32ef-edb4-47bc-bfca-4f63ef913d06","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":115,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"f753798c-c7c8-4d20-805f-b00f3bbce7f2","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":115,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"69c82860-1c00-4553-a256-3c821cc8b60a","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":115,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"92b890af-a400-440e-bf40-f39f86ec7daa","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":115,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"d5e7c8a3-ef32-448a-ae3d-df696d1cb93b","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":115,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"bb16f6f3-d5ea-4ee7-9864-40db4ea05094","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":115,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"7b28ecc2-d788-4641-b18a-e92d634014dc","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":115,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"62dc4e45-9f93-4867-9b76-ed33cf41848d","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":115,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"10ec46d8-7a9e-4b6b-bd24-e89e232f6c9e","block_type":"box","text":"II-77","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d28f02a0-4de4-45c1-8bbb-4d25d71fe789","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e4596df6-376c-4b75-8f41-b3bd04ee222b","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":116,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"26220719-60ff-4e1a-a311-2c144786bcf8","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":116,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"8d224b82-cc7b-4581-9a3c-a81182789350","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":116,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"47f50094-70c8-42f5-8bb3-8c6b9b4f9ae8","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":116,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"13b1ea67-1eff-4d71-8757-698d47e57108","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":116,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"cb62e44d-9a22-4b2e-8c94-1e9f18bd0506","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":116,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"8d2794bc-50e9-4e23-917d-eb6f44f8cda2","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":116,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"1e8a0514-118e-4ce4-885d-a5154a85e826","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":116,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"70b3b1ff-759f-4d33-b70a-757af14d902b","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":116,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"d4cfa158-1fff-4d52-8cb0-001e921bb7ed","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":116,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"3b883171-19bb-419d-abb3-0b68b5c6d9c0","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":116,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"74f96e4d-7e5b-4e8f-93a8-4866e0c4e536","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":116,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"07494866-768b-452f-9781-cf3d4cc445f3","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":116,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"8db10e28-a703-4317-a2eb-9d019ea86d54","block_type":"box","text":"ways different from regulation in the United States.","page_number":116,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"077a643d-3609-4965-a8fe-d69a79298d56","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":116,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"cc367101-73c7-40ec-9126-e3f6598525be","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":116,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"b68a8a2b-82c0-44b7-b75d-334bfa38159c","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":116,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"992c97e4-01e2-4cd7-a298-2b6c91d6fbcf","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":116,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"553ff6ff-5c1d-416c-90e6-c08c5af8bbc6","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":116,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"5833511e-1ff2-4ead-bda7-14e3977cc73c","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":116,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"8d13c24e-a531-42e6-beed-aecc3da11f34","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":116,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"1edeabc3-488d-4078-9120-9655fb7699d3","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":116,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"df17513b-b09d-484c-b935-9b3dea440f75","block_type":"box","text":"increase.","page_number":116,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"36b6c04c-3237-418f-8d92-75aac5028472","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":116,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"2fa3eaac-09a3-43c7-8f1d-374d701ae7e1","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":116,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"985ce90e-2ba7-4743-bc20-45045e973b52","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":116,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"5ea0d06b-fdc8-4d09-bc10-623097df9b12","block_type":"box","text":"Electric.","page_number":116,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"9aa61d73-a542-45a4-b3d3-cb1edd3cb992","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":116,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"1fc08767-dbc7-4443-87af-094b9b80914d","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":116,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"d1d3fe9c-5f89-428b-93e5-493f7710f93c","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":116,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"d3678bc9-fb05-4154-ab56-99d376aee50d","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":116,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"e898c8ef-bad4-4074-8033-a85cb19b58fb","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":116,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"c30fbea6-55ea-4838-8c79-f12c6290ca02","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":116,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"aa40c443-4d89-4239-af7c-1c6672b54295","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":116,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"2b4d9041-233d-4730-b930-0a5f16080dc8","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":116,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"b9927d5d-db1d-4939-b55c-44a721935f31","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":116,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"62d1ad62-2e66-4059-ad7b-dc2b321b2589","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":116,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"a5f653c9-1322-4182-bd53-eb286ebe2a9b","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":116,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"66851ebd-b66e-4cb9-8845-051151c21b2b","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":116,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"f684b752-824e-45c6-a45f-67ae94faddfd","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":116,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"b7c01308-a3b9-4de4-ba4a-67b39a60daf5","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":116,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"03a3006c-e908-48d9-aef3-369afe5ba362","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":116,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"6394eab9-32e0-451f-ad83-9f6a4de8b500","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":116,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"1c96dacd-ea15-4eb0-868e-95641cffb61a","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":116,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"d877081b-82f0-4b1e-98d9-c1648ba6d207","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":116,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"861d048d-0569-473d-8ca7-ef39ceffc28e","block_type":"box","text":"and for decommissioning such plants.","page_number":116,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"ef48f2de-88b7-4c34-852b-c670b39c0ff6","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":116,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"fbee1737-1c58-4136-a610-abf1f2fcccd7","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":116,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"d74f4d0d-d001-436c-bafd-cf1714e35c9d","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":116,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"3b85d800-6fdd-47f4-8528-1831d7334ea9","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":116,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"42434f1c-652a-46c6-8b0e-adb7d8cbd80b","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":116,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"4b0a0752-7525-4da4-87c3-caa8b22927ef","block_type":"box","text":"greater predictability of cash flow.","page_number":116,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"3f9f169c-7446-42dd-8c1d-67209b735963","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":116,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"cce9d674-4785-4d38-837f-e90c8676f871","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":116,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"8e608519-fb0d-482b-a89c-0a9548b07c12","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":116,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"054a4d46-1e30-4899-bc27-b3a234a6786f","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":116,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"7451d5ac-6457-4884-90ac-c3ade75ae061","block_type":"box","text":"II-78","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7cc86d2d-17bb-4b34-b972-9b18881dabf9","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1f91ade1-e9c0-4648-9f6a-8ba4b82cd453","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":117,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"5723082e-72f6-4369-8237-29546e424631","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":117,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"9e35815b-2a92-4eef-9307-31e5f130df07","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":117,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"ee90ca04-db44-46bd-ab58-f907736430c2","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":117,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"8ea02f07-ad47-4ab6-95b1-3a37e79bc915","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":117,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"b89d05ff-862d-4bc4-9c60-c2af7548c595","block_type":"box","text":"Telecommunications.","page_number":117,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"454e80dc-4a59-4403-8e52-3002b48ca5e4","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":117,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"236be06a-a38d-4d06-a64f-5d49feec0b38","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":117,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"736c2f0b-cbc5-449a-b931-f90ed917356f","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":117,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"29baaba5-9d20-4d33-9fd3-793c8c533a12","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":117,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"6818e4de-e40a-4cd0-accd-ec607fc70d25","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":117,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"116eeb9d-d34e-432e-aa72-c81fb060416b","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":117,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"236f9bf6-d4ea-4a12-95fc-6d1f9e914d64","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":117,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"861a87ba-7984-4618-915d-ddd7841cbecd","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":117,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"a6850b89-3133-40c8-b0dd-0db55943543f","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":117,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"f55013b6-7a7e-4fe5-9781-e38d6949bd5e","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":117,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"e8d0df30-9627-4305-b2ff-d161d7acb2a3","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":117,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"b8d13a5a-c4b4-4308-9918-35ed93a603fc","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":117,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"1b75a0dc-2814-4458-8942-fe0712f3254f","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":117,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"0651483b-c68c-49f8-bf72-e728e5f546e5","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":117,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"ff77b51f-162a-48ad-828c-d7ca36a4f8ff","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":117,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"939aa0b8-3447-40fb-bb2f-f8889e77e07f","block_type":"box","text":"residential, corporate and governmental customers.","page_number":117,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"65c15647-df39-4647-9692-787b887d4c87","block_type":"box","text":"Gas.","page_number":117,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"5c349644-c2bc-4712-b7b8-13e74c9ffcf4","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":117,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"805fe35e-f3ad-4fdb-9ff4-6452a90e3921","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":117,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"986f1285-f59c-4e37-bee4-bdd31a39737c","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":117,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"5c4f843a-71c4-4751-9304-3d8afb8c572c","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":117,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"086b6aae-433a-4963-bf7d-bf5d8d378e55","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":117,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"42d595e1-f709-4d40-99c5-435c330d62fe","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":117,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"5ae751fa-b6fa-4577-b635-e1f8b1ccfc78","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":117,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"693d16de-4e7e-4d1e-bbce-c5950fa69875","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":117,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"eb229ca0-965c-4b7c-9607-0e703aa1365c","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":117,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"9e2cb79b-d15a-4df2-adb6-e849657976a9","block_type":"box","text":"Water.","page_number":117,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"7e1f302d-b5e4-4fe3-b60c-1ea80377e1ce","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":117,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"8b6ae831-5511-4ae7-a3f0-d12c23971ad9","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":117,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"54403ae4-0a11-464d-abfb-1a5aa0f4f41b","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":117,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"c4cf5a14-824a-4696-a29d-66da0773c625","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":117,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"7a386e7a-ffe1-4671-998f-350d0bbbb9df","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":117,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"847bae16-43f5-4120-aedc-9cdc6950367a","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":117,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"b7d4872b-26ce-4e4c-bc12-ef650d163cda","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":117,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"5f0bde06-f200-4524-a728-99ea9d5357cd","block_type":"box","text":"Utility Industries Generally.","page_number":117,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"ebe4df38-4086-4b8b-be0a-c0430933f551","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":117,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"dbc77c0c-f552-48ec-932b-f5a20612651d","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":117,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"feda438e-0a1e-4bb6-9e4a-901c62ee213b","block_type":"box","text":"not develop in the future.","page_number":117,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"2dfa96b2-a4d6-4c16-9845-f2dbda6d6338","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":117,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"914ac7c9-0423-4111-9c89-7db762085ad7","block_type":"box","text":"A Fund may purchase or sell","page_number":117,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"f0842448-c41c-4781-9052-04a13e5ca450","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":117,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"f49bdd0f-8d89-49d1-821e-441ffe5bf907","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":117,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"871d518b-5e44-4d6e-acfc-7bcfeebf75d7","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":117,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"9b0bba79-1f21-4899-af85-626321845937","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":117,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"af38fb37-54c9-4459-8e9a-97dc060cd3b8","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":117,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"0ec07e15-7b56-48ff-9c99-63b6be2b10ff","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":117,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"f47c7593-5cc0-4970-bd9e-4c49fdeb915e","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":117,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"35bea987-5d68-429a-a022-4dbb7f1b6873","block_type":"box","text":"cer tain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":117,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"be350cf7-637e-4808-9c2b-9277911656b4","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":117,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"83be2b3b-ad08-433a-b7a1-935c3575bb24","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":117,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"1b0c4648-f1e8-4f4d-8c7b-601a5916d784","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":117,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"6ac0efaf-89b3-4753-bc88-753bdac71b28","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":117,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"3cbef281-91b3-4010-9eb6-86d7348e15f6","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":117,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"56bb97c2-39ac-48da-a794-f054047aab1b","block_type":"box","text":"II-79","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"88aa90de-0f75-4ece-9b24-e56d84903c51","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"59ef4516-07fd-46e5-8317-e9bad421e7c2","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":118,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"72af61bf-ba98-4edb-bfa0-82545196c09a","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":118,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"1cf3ed79-77bb-4bb5-ad53-e10aed1c358a","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":118,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"dd1c72df-98d8-4410-81da-3ebe272b4c7f","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":118,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"2cb8c8e5-5c64-41b7-827d-0b1ebe9ea9e0","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":118,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"353e23de-9550-4802-afe9-d09a3dd59400","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":118,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"a3817cd0-f3f0-4f09-b416-14d8ea185ce7","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":118,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"3d79a7c8-85ec-46b6-a261-8edb029d964f","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":118,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"4d75eba6-f2e6-4851-ae79-21d970131a32","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":118,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"4472bffa-2e6f-4879-8e9f-ea5c39579669","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":118,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"bee296a5-80e4-429f-a0d6-174c4bcf936a","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":118,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"876f385a-ac1a-45ba-b6cc-fd991bbd8fa1","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":118,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"c4fbc30a-a450-4b69-ac1f-62455d54312b","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":118,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"3c8d6d37-bb1e-4b80-be1e-fac944b17be6","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":118,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"f3c1b4ed-4716-467c-98e3-f04d57664549","block_type":"box","text":"securities (","page_number":118,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"c88d3b48-7f89-44de-ab5c-a7c756134543","block_type":"box","text":"e.g.","page_number":118,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"ca550927-a615-4ab2-9430-caa390957242","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":118,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"c3a2c5b4-d1a6-4320-8bce-61c52821b884","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":118,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"c5bf8ba3-213b-4d0d-8ab1-f7c2eef6f032","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":118,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"ea320907-313c-41e1-ad85-6a0269d807e2","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":118,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"65aca764-ecf5-4120-9378-e56b94e44e10","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":118,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"607bdfa8-6b3e-42f2-b9cc-f3730a459151","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":118,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"b07f8ce4-e4f3-4fc9-b27f-18d599c53518","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":118,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"979ee6d7-0853-49b6-b48c-1ae324e69a1a","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":118,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"0b184295-928c-4053-b89e-035a1b494e72","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":118,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"9f3dcd96-0e2b-498e-95c0-c03a65a376d4","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":118,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"b42bd227-7bc2-4a0d-87ad-54cf65996579","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":118,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"65ab74bd-6c60-4c69-b7e6-6fe7a1de66a6","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":118,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"7cdae2de-a304-43e4-b64c-d7586d4b9f35","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":118,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"3ede576a-885e-41ce-bc23-ae4625bbc7e9","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":118,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"2c28024a-1b1c-416e-8bdf-fec9789b9d15","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":118,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"6dd9151e-da80-4b07-b857-0a6444d2ee6e","block_type":"box","text":"Yields and Ratings.","page_number":118,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"f24db4b9-a185-4537-86ef-877cf83b2870","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":118,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"aac38880-d504-4d41-91c5-2af4cbb3790b","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":118,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"f8938696-6700-4099-b246-bb011a5fce87","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":118,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"887b2431-0f1c-4339-88cd-13785bd8ea5f","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":118,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"ec912f14-2f80-4b39-9f62-c19281a344d4","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":118,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"37542580-81ff-4dec-aa8b-827ba469296b","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":118,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"a695411f-9985-4094-8353-0e8bbc972431","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":118,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"a92691a4-298a-4a77-8cd4-0b4abdb6c3a9","block_type":"box","text":"continue to hold the security.","page_number":118,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"ca6229ce-606e-4ad6-885f-ad6defa95a4d","block_type":"box","text":"Zero Coupon Securities.","page_number":118,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"42eb8744-62b0-4649-9dab-f8fc59a0d61b","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":118,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"608c6695-239b-4e31-be98-0161e4bc90cf","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":118,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"78eb1f5d-c906-4e4e-b014-b8bdded607a5","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":118,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"f00fb6a9-76ee-42a5-813a-26c712c39219","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":118,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"8118db66-b617-4671-9170-550b767a9d07","block_type":"box","text":"security.","page_number":118,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"7327753c-3cf3-4407-ae2c-26e1628760be","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":118,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"9cb437a2-a4bf-4212-b13c-ed827beb8e04","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":118,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"032f6eb5-4330-4551-9de6-528a98e25227","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":118,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"0a889f80-8fca-4489-a858-777e1bad0562","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":118,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"317d57d1-620c-49fd-81aa-6ed476f6f89a","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":118,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"ce20356d-6983-481e-b69d-885660a0945c","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":118,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"4ce8977c-4dbb-479a-876f-8a7729826629","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":118,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"f15d6c68-cc9f-429b-9548-c54fdf4f1bf3","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":118,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"07304753-a276-4304-adc1-85e791c80a14","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":118,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"2b86dc22-6aac-42d9-ab40-cf3f1d5fe448","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":118,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"1fc992a0-3f5d-44c8-b8a1-d30c6384b26a","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":118,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"6ae8fa9a-b259-4dab-bf8c-5b475b1f831f","block_type":"box","text":"II-80","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7c75c503-4cc0-468d-854c-af3118ac38ec","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"04f4d111-9fe7-4a11-8de1-8a362b21f3ad","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":119,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"3b4d9a62-1f92-4214-beb9-8df0f1264502","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":119,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"5547f297-05cb-4959-9df5-d57a96889ade","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":119,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"b96f12a5-78ad-4729-9fe2-e71ebe7b3f26","block_type":"box","text":"intervals.","page_number":119,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"900729e5-d158-442b-94cc-580a86f6d58b","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":119,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"811f181b-753d-40de-8867-5fdb1c3c6f89","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":119,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"855f82de-ee6b-43bd-88a9-12390de397ff","block_type":"box","text":"por tfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":119,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"46f487f4-a9fc-4120-bfaf-68508c8515b3","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":119,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"cf686924-ffc2-4e11-9ff5-69860c9c9740","block_type":"box","text":"exposure to zero coupon securities.","page_number":119,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"c046501d-d065-43a5-bf4a-d465e12c9d8c","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":119,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"48c15ba9-c178-491b-93a9-1c0b72133703","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":119,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"6d52b1a3-a07d-487d-8bc5-876cfdc4f494","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":119,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"d5e0abe2-27d9-4413-8619-41bb426791f5","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":119,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"d73d371c-fc45-4467-8f6c-6ddf6ea3e016","block_type":"box","text":"Suitability. (All Funds)","page_number":119,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"94dbcea2-7c33-4e7f-a2d1-0a0f9fea8df6","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":119,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"cdc3cf32-f0bb-4760-88db-b85ccd7abbfe","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":119,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"5b5dd6db-14e3-4557-9015-9e576b02b5bc","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":119,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"9e2fec10-b123-4ff0-85d9-d5e2bbe01e72","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":119,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"ba7afc3e-c2d7-42e1-b150-6ca3ed703e1b","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":119,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"d8fd7507-19f3-4738-8c79-1577db268200","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":119,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"c5be9183-3d6f-4bb2-9d90-6e3f756f3ab6","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":119,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"58cd6368-167a-418b-ba67-4bdd9c12821b","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":119,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"6d8d1d52-04aa-4efe-a3d3-e1de4d7bf1c4","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":119,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"47deb6ea-9b1f-4b3c-a2d9-bae823badc18","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":119,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"72784c7a-3a25-407d-898b-da9864c3669e","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":119,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"2320f5ac-eb06-4677-ab28-9bb570c7ff78","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":119,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"26ac863c-855b-4d0f-bd7c-5aa718622294","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":119,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"9d5cb52c-85b9-4434-b0ca-4b16043340e1","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":119,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"5edc03ca-6081-4262-95a6-a57d2360b1c3","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":119,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"bc966b2a-37e7-4331-abf7-b8104d182ed0","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":119,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"8823836a-abfa-4273-8288-fd340ceaae9a","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":119,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"04cc02c1-eff4-4b90-904e-9b478efedb4e","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":119,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"9cd8187d-17c3-4e10-aa6d-3bf6b536776f","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":119,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"1407304c-39fe-43fa-aa23-93e767494efb","block_type":"box","text":"(","page_number":119,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"e7408757-d4d4-41f2-a022-2f34b4eb3839","block_type":"box","text":"i.e.","page_number":119,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"eba968fa-dceb-40f7-83c5-08c92d2b64e7","block_type":"box","text":", par tnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":119,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"d030ad30-e99c-4904-9d84-6d3d811ce8ac","block_type":"box","text":"par tnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":119,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"93c12988-5b6a-49da-9171-8125e3e9b20a","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":119,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"ae77875a-2025-4db4-bbf0-802e59975fb6","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":119,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"d2e5872d-4a13-4d40-b14b-6822f21deb8f","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":119,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"12fc806b-eb9e-4593-9636-451bc5c3e5e9","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":119,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"a1180b52-0276-4379-8f4f-7be1b1da5444","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":119,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"8ca5747a-c240-43f1-8b02-4e13ef6de210","block_type":"box","text":"regarded as the sole issuer.","page_number":119,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"8d2f0877-b9bb-462b-b521-dbabc54f288f","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":119,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"ea277ea4-4b0a-41c8-8c0f-ef5da3edc465","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":119,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"a63372b6-796c-46bd-a36f-7e4403bcbaef","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":119,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"39739b19-b5e3-41a0-bc27-6aa3d447855a","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":119,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"148d9930-c8b1-4817-8bc7-69ac721c67e3","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":119,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"e80135a7-677d-4e41-9dde-6e4d48bddd99","block_type":"box","text":"75% of its total assets.","page_number":119,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"aef10ebc-a2ca-4b27-9870-34073d73b5b6","block_type":"box","text":"II-81","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d9cc8777-64c4-4065-bbb2-c683165f9a11","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"39f8c5e5-ed99-459d-bcee-2f75c91723e1","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":120,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"cf99e27b-1f5f-4e1a-9e3e-7597c74c72fe","block_type":"box","text":"Directors and Officers","page_number":120,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"391ff33e-eef9-490e-8ab2-9c5e4b05f661","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":120,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"fa83a99d-7ce9-4672-8bc4-6b5b1d17c93c","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":120,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"37fb1d05-0e6e-4667-91ff-c5efb7eefd47","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":120,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"61965f8f-caae-4b20-b412-90ba52d53208","block_type":"box","text":"cer tain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":120,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"57077071-5944-4880-bbb5-192303f2c5c1","block_type":"box","text":"Management Arrangements","page_number":120,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"3e7aa26d-0a70-4181-8216-9d8bf7ecb2ce","block_type":"box","text":"Management Services.","page_number":120,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"fe8c61ba-77d9-4988-9ba9-2f3a57307b08","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":120,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"79b62f5a-1fc1-4f89-b6fc-12a309d064ae","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":120,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"f6e440c7-87d7-4fbe-92c7-eb4fb91af2b8","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":120,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"607b0133-42f3-477c-909c-2f678779582d","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":120,"box":{"x":68,"y":242,"width":832,"height":11}},{"id":"b31c0ecf-28e8-4c8f-a72d-bc2a8b0f3385","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":120,"box":{"x":70,"y":257,"width":801,"height":11}},{"id":"2e356eba-274a-4ba7-8605-5cdf64959550","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":120,"box":{"x":69,"y":272,"width":370,"height":11}},{"id":"1d8d9548-a79b-4c62-9c40-22367dbad49c","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":120,"box":{"x":102,"y":295,"width":778,"height":11}},{"id":"9973f427-004c-4027-9931-7cf41590d08f","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":120,"box":{"x":70,"y":310,"width":800,"height":11}},{"id":"e17029c0-a13e-4026-859f-6d1d050c5e21","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":120,"box":{"x":69,"y":325,"width":810,"height":11}},{"id":"962469be-6169-4290-8bbb-48d7cb17b5c2","block_type":"box","text":"Management Fee.","page_number":120,"box":{"x":102,"y":348,"width":126,"height":11}},{"id":"3da847d0-bc7d-435f-b0eb-3f024700fdef","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":120,"box":{"x":235,"y":348,"width":646,"height":11}},{"id":"ac35daa1-842f-4a6a-a90c-2fe3258551a4","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":120,"box":{"x":68,"y":363,"width":841,"height":11}},{"id":"fd69e286-3435-4d2f-ab27-69add13d1b41","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":120,"box":{"x":69,"y":378,"width":833,"height":11}},{"id":"7d4e6a8d-808d-4093-8001-ad77b0dc5ade","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":120,"box":{"x":68,"y":393,"width":746,"height":11}},{"id":"b044539d-3505-46e5-830c-d636b0cc7e72","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":120,"box":{"x":70,"y":408,"width":825,"height":11}},{"id":"54a00f03-6df2-4e06-98ee-296215140d8c","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":120,"box":{"x":102,"y":431,"width":774,"height":11}},{"id":"61c12eeb-1a12-4b24-83d5-1bfd54cfab8a","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":120,"box":{"x":69,"y":446,"width":826,"height":11}},{"id":"5a7dfa12-a36e-4fec-b2b2-85af7248dd64","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":120,"box":{"x":70,"y":461,"width":820,"height":11}},{"id":"4591096d-1a27-4516-82a0-f225818a1e53","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":120,"box":{"x":68,"y":476,"width":797,"height":11}},{"id":"c2d9a956-718b-4067-aada-52181b0c4de5","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":120,"box":{"x":70,"y":491,"width":830,"height":12}},{"id":"95203110-0107-4a8d-b53f-906672ad08a7","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":120,"box":{"x":69,"y":506,"width":802,"height":12}},{"id":"d5fc5b8f-d08f-4e33-8836-1326304810ed","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":120,"box":{"x":70,"y":521,"width":809,"height":12}},{"id":"b6be9a77-f6c2-43f0-b4ac-6e201fba098a","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":120,"box":{"x":69,"y":537,"width":838,"height":11}},{"id":"b5f388ee-0c55-4f7c-b216-cb02fd105b45","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":120,"box":{"x":69,"y":552,"width":830,"height":11}},{"id":"15dc4ade-ebc6-4cb5-8834-5ff0e3bf77b5","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":120,"box":{"x":70,"y":567,"width":784,"height":11}},{"id":"8b376b7f-09c0-49b4-8bbd-b481b6c7994d","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":120,"box":{"x":69,"y":582,"width":767,"height":11}},{"id":"61bf3d03-14de-49c0-b441-37cf6789f61d","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":120,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"b69f94b9-8f14-4350-82bf-e56cb09e069d","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":120,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"64d77278-d0d1-46f5-a0ca-535d0c1f3050","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":120,"box":{"x":69,"y":627,"width":814,"height":12}},{"id":"8138e407-f8ed-402a-82e5-ecbfca787ccf","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":120,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"63fc309a-389c-4797-a279-4889aa84dda6","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":120,"box":{"x":70,"y":658,"width":839,"height":11}},{"id":"75f5c436-3881-400a-b2cd-ec64fa81bd90","block_type":"box","text":"to distribution plans in compliance with Rule 12b-1 under the Investment Company Act. See “Purchase of Shares —","page_number":120,"box":{"x":68,"y":673,"width":828,"height":11}},{"id":"37904943-50e5-47c5-9897-9cb4c0474be7","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans.”","page_number":120,"box":{"x":70,"y":688,"width":350,"height":11}},{"id":"c7d069e6-5d01-4596-b255-3c795cfffdb0","block_type":"box","text":"Sub-Advisory Fee.","page_number":120,"box":{"x":102,"y":711,"width":124,"height":11}},{"id":"c5ab0bf9-4d37-4920-adcf-d43aebce9f55","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":120,"box":{"x":232,"y":710,"width":643,"height":12}},{"id":"f2e7f1d5-2b78-4fd3-82a4-9ada9a79e85a","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":120,"box":{"x":70,"y":726,"width":839,"height":11}},{"id":"9c5a5e93-c17e-4d37-94a2-f1518c631841","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":120,"box":{"x":68,"y":741,"width":830,"height":11}},{"id":"c1693329-3ae0-4c33-860a-272f4c0cf475","block_type":"box","text":"Organization of the Manager.","page_number":120,"box":{"x":102,"y":763,"width":204,"height":12}},{"id":"17365c7a-1102-438f-9780-e9b39fa009b5","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":120,"box":{"x":313,"y":763,"width":560,"height":12}},{"id":"b1890d55-fe31-4833-b04a-1a400b182ffd","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":120,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"7b4b7faf-9936-49ba-8683-4543500502ce","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":120,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"7168d69a-be69-4352-b8b1-e5fb00311840","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":120,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"f2df682e-19d6-46c5-89d4-0e9fdb6a60cf","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":120,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"31d59c30-946c-4a4d-b6fa-5578eabf4188","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":120,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"7435060c-55d2-4ff2-af8b-c7958a9db01c","block_type":"box","text":"Duration and Termination.","page_number":120,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"6a5f224b-d660-454b-9a8a-f50e4037367b","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":120,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"c9db4eb6-b920-42f6-a423-bdfcc113fa0d","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":120,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"b438b59f-c259-4dfb-b077-ed6ecebfd0f2","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":120,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"a95f9dee-5329-4d20-8dc5-385cf97c9235","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":120,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"bcd73843-8feb-402c-8599-ca50d90f487d","block_type":"box","text":"II-82","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a746e838-cfc3-48f2-8914-383b09397a41","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ab39f4e0-fbf8-417c-9090-d341e54004b1","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":121,"box":{"x":70,"y":45,"width":778,"height":11}},{"id":"9e8654ea-d0f8-4c6d-b466-4e6620cbdb78","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":121,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"a1ba8329-9db4-4da6-8eda-e5cc26e933c0","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":121,"box":{"x":69,"y":75,"width":388,"height":11}},{"id":"94436859-a762-48e7-a403-2cc0010a3ec3","block_type":"box","text":"Other Service Arrangements","page_number":121,"box":{"x":69,"y":105,"width":205,"height":11}},{"id":"87a3eb89-cb60-4de9-82bc-f2dc4cb93d02","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":121,"box":{"x":101,"y":128,"width":338,"height":9}},{"id":"d4844087-5b3e-4a4d-99f4-06ca47d30233","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":121,"box":{"x":446,"y":128,"width":439,"height":11}},{"id":"d63b83b9-72e8-4698-9c8f-2156fc312643","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":121,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"6f40c543-fc38-42f5-a41c-7a3882db7e5a","block_type":"box","text":"SAI (each an “Administrator”). For its services to a Fund, the Administrator receives monthly compensation at the","page_number":121,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"df024574-700c-438a-9a27-f2d4ea51df96","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":121,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"bb66a376-c913-424d-beb2-fa9b059478e8","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":121,"box":{"x":68,"y":188,"width":738,"height":12}},{"id":"c0191cc7-9a20-4ec7-8255-774a8ed57d9e","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":121,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"5f841430-1a22-4943-a6cc-aa5b7645d780","block_type":"box","text":"that Fund’s SAI.","page_number":121,"box":{"x":68,"y":219,"width":113,"height":8}},{"id":"93a21615-7cc2-4754-b9a5-71c2af42be74","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":121,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"ca22ae3e-6625-44c3-b77f-98ed731ba53b","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":121,"box":{"x":69,"y":256,"width":800,"height":12}},{"id":"cc662463-b5c3-4e3b-94cc-8281efe4e07f","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. 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Such contract is not assignable","page_number":121,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"50ee528c-982e-4586-98b3-09e69bb03b55","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":121,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"048248ad-b3e0-4d3e-b2f2-fe19e8d6cc4c","block_type":"box","text":"shareholders of the Fund.","page_number":121,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"3e733e24-9dd2-4851-8984-9ae2e3fe3d58","block_type":"box","text":"Transfer Agency Services.","page_number":121,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"3abd8b30-6cff-4388-90cf-15874678d34a","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":121,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"67d6b554-45f2-41db-a64a-26bd2780eda2","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":121,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"cdbb06bf-0116-4ecb-b2a6-4765b1e7030d","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":121,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"179d20b9-e383-48dc-9766-7e29cc6ea71f","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":121,"box":{"x":68,"y":483,"width":792,"height":11}},{"id":"c96f2e61-0531-452d-815b-68ac8cb84e84","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":121,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"2e97615c-02c3-4fe3-b5b3-86235bd42687","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. 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Please see the inside back cover page of your Fund’s Prospectus and Par t I","page_number":121,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"145e5f7b-5ca8-4ac4-9b1a-9cd2e6989711","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":121,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"aa6f0b67-b7d6-47cd-8f04-ad456a5e4867","block_type":"box","text":"Custodian Services.","page_number":121,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"fd8ccdaf-15f3-4a80-aadb-fc97ac79954f","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":121,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"ba09a1a8-5bd3-4f63-91ee-fb9f30703672","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. 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The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":121,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"173bd2ff-12f8-4a44-9096-c0ae1b4f223f","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":121,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"dd2ca835-c7c9-4d98-812e-4fcff9e9a80e","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":121,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"c6fa64f2-a727-46c5-8304-4a2f89f9dff8","block_type":"box","text":"cer tain assets.","page_number":121,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"6fd9a201-27f1-4235-9031-d86ab84db35a","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":121,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"334aac07-8908-4960-b206-328c77e6c835","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. 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Net debits at the end of a given month are added to the Fund’s custody bill and paid by the","page_number":121,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"cf336a33-f42f-45a6-aa3c-06e2e0f835c9","block_type":"box","text":"Fund.","page_number":121,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"b68f2362-0f4d-4154-b95a-5fd72030ca89","block_type":"box","text":"II-83","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f6ae9cd1-0567-4835-bfff-9e30a24690c6","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":121,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c0b39703-810e-4543-9913-5f23ee5b6cf4","block_type":"box","text":"Accounting Services.","page_number":122,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"53a6fd2c-78f2-4b56-b584-80c8f04a690e","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":122,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"6808f2ec-7bcc-40ec-b6de-201dd645e994","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides cer tain accounting and administrative services to the Fund. 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The Distribution","page_number":122,"box":{"x":68,"y":196,"width":807,"height":11}},{"id":"c026dd3f-a392-43a2-b3e7-bdacfc7340e6","block_type":"box","text":"Agreements obligate the Distributor to pay cer tain expenses in connection with the offering of each class of shares of","page_number":122,"box":{"x":68,"y":211,"width":842,"height":11}},{"id":"f453d60f-d149-4513-bb17-99bf87f0c320","block_type":"box","text":"the Funds. After the prospectuses, statements of additional information and periodic repor ts have been prepared,","page_number":122,"box":{"x":68,"y":226,"width":813,"height":11}},{"id":"eed5cd35-187d-4912-9439-7062ced9f867","block_type":"box","text":"set in type and mailed to shareholders, the Distributor pays for the printing and distribution of these documents used","page_number":122,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"40723d8e-62ea-4292-a87b-f96058782f7b","block_type":"box","text":"in connection with the offering to dealers and investors. The Distributor also pays for other supplementary sales","page_number":122,"box":{"x":70,"y":256,"width":799,"height":12}},{"id":"f7b6ddaf-6087-46f5-be48-80162fe45c14","block_type":"box","text":"literature and adver tising costs. Each Distribution Agreement is subject to the same renewal requirements and","page_number":122,"box":{"x":70,"y":272,"width":788,"height":11}},{"id":"f6d57912-d317-4060-a719-df313f0a5b86","block_type":"box","text":"termination provisions as the Management Agreement described above.","page_number":122,"box":{"x":68,"y":287,"width":513,"height":11}},{"id":"aa690982-6266-4964-bf6e-0703bc59af04","block_type":"box","text":"Code of Ethics","page_number":122,"box":{"x":69,"y":317,"width":105,"height":9}},{"id":"29ef063d-033a-4f9b-a1c6-ae5b253fb87d","block_type":"box","text":"Each Fund, the Manager, each Sub-Adviser and the Distributor has adopted a Code of Ethics pursuant to Rule","page_number":122,"box":{"x":102,"y":339,"width":780,"height":12}},{"id":"8b3df230-1e9c-4a61-b585-fceb9807b5a2","block_type":"box","text":"17j-1 under the Investment Company Act. 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Employees subject to the Code of Ethics may invest in securities for their personal","page_number":122,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"1737018b-c1c7-43fe-94c4-356bc3e485a0","block_type":"box","text":"investment accounts, including securities that may be purchased or held by a Fund.","page_number":122,"box":{"x":70,"y":385,"width":593,"height":11}},{"id":"35ba8765-654d-4665-9567-de432e62ce72","block_type":"box","text":"SELECTIVE DISCLOSURE OF PORTFOLIO HOLDINGS","page_number":122,"box":{"x":282,"y":414,"width":413,"height":10}},{"id":"68c61bcc-dcc7-4dea-aaba-5eb67a1fed9f","block_type":"box","text":"The Board of Directors of each Fund and the Board of Directors of the Manager have each approved Por tfolio","page_number":122,"box":{"x":101,"y":437,"width":777,"height":11}},{"id":"a88b4828-2f12-4154-9532-51e953b861dc","block_type":"box","text":"Holdings and Related Information Distribution Guidelines (the “Policy”) regarding the disclosure of each Fund’s","page_number":122,"box":{"x":70,"y":452,"width":788,"height":11}},{"id":"e5080aef-b4ea-4fa0-bf3f-03fc95cf3cb3","block_type":"box","text":"por tfolio securities, as applicable, and other por tfolio information. 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BlackRock, its subsidiaries and their","page_number":127,"box":{"x":102,"y":339,"width":731,"height":12}},{"id":"9865addc-d88b-4d72-888a-4998c2f3ccc0","block_type":"box","text":"respective directors, officers and employees, including the business units or entities and personnel who may be","page_number":127,"box":{"x":69,"y":355,"width":799,"height":11}},{"id":"ec71fcc4-c5c4-4462-b68e-92ea63c8f613","block_type":"box","text":"involved in the investment activities and business operations of a Fund, are engaged worldwide in businesses,","page_number":127,"box":{"x":70,"y":370,"width":786,"height":11}},{"id":"e3e6e3e9-6dde-4afd-853d-0e6d9b587140","block_type":"box","text":"including managing equities, fixed income securities, cash and alternative investments, and other financial services,","page_number":127,"box":{"x":70,"y":385,"width":829,"height":11}},{"id":"9edce7c5-f5ad-43a3-adca-b2e981052044","block_type":"box","text":"and have interests other than that of managing the Funds. 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BlackRock may have a potentially conflicting division of","page_number":128,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"d212cb74-c51b-4758-bc23-d192c7dbf769","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":128,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"195071a7-f341-4f95-ae00-2a6601b47528","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":128,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"98609376-dc7a-4500-a355-7102e580806b","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":128,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"8c15019a-362f-4381-bb05-8719610e8d3c","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":128,"box":{"x":70,"y":702,"width":827,"height":12}},{"id":"d83dba18-f706-4602-bb87-55c9cc49f2c9","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":128,"box":{"x":70,"y":717,"width":828,"height":12}},{"id":"76ca772c-8755-452f-bf0c-5819a8a0309b","block_type":"box","text":"case.","page_number":128,"box":{"x":69,"y":735,"width":37,"height":7}},{"id":"34131a04-4c8d-4782-82b4-300f5ff81cea","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":128,"box":{"x":101,"y":755,"width":791,"height":11}},{"id":"3b44de15-9fff-4617-9002-de2987262790","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":128,"box":{"x":70,"y":771,"width":824,"height":11}},{"id":"cfe0b587-aa85-47cf-9bf4-c920cd145201","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":128,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"fc806ca4-7f36-4e4c-8a5f-f0c2b7bb23d0","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":128,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"89b92f10-09b0-43d5-bb4e-a085533d744c","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":128,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"f1209547-db48-4475-9531-29f9bb6350a0","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":128,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"d1d2814b-44e0-4806-b8cc-3a85faaf9125","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":128,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"f273b15b-4532-4716-823f-1ecce7102e9c","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":128,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"0e17b62f-48dd-4153-97e8-5b4c33079006","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":128,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"b78a29aa-3e72-4742-8ac6-ef2b56a4548f","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":128,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"8477ceab-279c-4c1c-a3db-7e8366bc9b09","block_type":"box","text":"II-90","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d3769883-819c-48b9-b435-9d8b5bf98570","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":128,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1ab55b76-4954-4041-81eb-a9865edc0171","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":129,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"b0f79b00-bb99-424e-b9ac-4ce6a4f7660b","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":129,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"11c5fd3c-14ff-4ba3-bf49-2f5d4a8e8c64","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":129,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"19cacc63-637b-4a86-a251-a44f0ebf6670","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":129,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"7302e56a-c62b-468d-ab19-d763b26f4083","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":129,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"7c810780-6a24-43d1-bc8c-cbfaf01c2b86","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to cer tain fundamental analysis and","page_number":129,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"40ffc311-77a9-4da4-b913-1bbad0d1b9dd","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":129,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"5e44568e-e492-4054-ae2f-987c5a17a126","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":129,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"054ca4b9-d968-4436-86f4-a504b25cf3d2","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":129,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"2bb0ea16-3b74-4272-8cdd-d643eedd6a1a","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":129,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"7096ef75-60b4-4ae7-af71-d7a8dc1cd6de","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":129,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"7af69207-63a1-4964-a491-9adfaed3d773","block_type":"box","text":"proprietary activities or por tfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":129,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"16b4ebbe-e5af-4ecd-8907-98b602e93021","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":129,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"7d18d26c-7f00-4308-9474-e8c41c5a4e6a","block_type":"box","text":"managing a Fund.","page_number":129,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"241080c0-77ee-4821-995b-b5258e38944c","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":129,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"5dde2fc1-3ea1-45b8-85ec-2bce3d5c3b9b","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":129,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"2409b25e-7d7e-4aca-99ba-79af323f262d","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":129,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"903e53a8-f705-4701-94e8-5dd14d886464","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":129,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"af5dc192-4f93-41d7-b920-bfe9f46618e9","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":129,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"be3ad32a-5d33-48ca-8e78-b4deaa65cda3","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":129,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"fca46378-d145-4e8b-b206-a2995a1090e1","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":129,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"50a57863-ee19-4136-a849-6bc7b760efb5","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":129,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"26224d7a-e99a-4160-9705-badcc2ff76cf","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":129,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"5506495a-e0b3-4d58-8156-bcd4de3dc9c4","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":129,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"1307a679-ceda-4d3a-a07b-45c049b083b7","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":129,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"f82c107c-83b7-45f2-a870-fb076c552ccd","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":129,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"c60c43b3-d006-48c3-8e15-774aa242ba06","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":129,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"f30ff93a-f25d-4e0d-b4d1-023fdbf52275","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":129,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"8e24e43c-75b4-4fc4-aa39-b55fa79bdff5","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":129,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"29d0535e-b3e1-4d74-8057-536fe5743ab8","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":129,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"4ff5c234-2f36-4608-8457-d46e95ea9a75","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":129,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"61f42807-f8fb-4110-96c8-8b90285f0cd3","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":129,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"02182367-fbf1-435b-9f92-2f25bd5fdadc","block_type":"box","text":"cer tain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":129,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"8515509b-8eec-441b-b813-4adcd903bda6","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":129,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"fd435e00-394b-4a56-b9c7-c350946c97cc","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":129,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"b00f6fa6-75a6-4282-918c-1890b65756a5","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":129,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"d9f3f842-aa83-495e-aa6c-519e1b13a06d","block_type":"box","text":"under management for BlackRock.","page_number":129,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"01a63192-731e-47da-99e3-41618499f931","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":129,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"65238596-2c7e-4144-8dcb-88a2c409e3f4","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":129,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"7b7966ff-c031-4322-aa7b-94839a5557c7","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":129,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"8e6bf357-526c-46ce-9790-1f35be0906eb","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":129,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"f23b9a40-1d5b-4c03-ada3-048e309dba86","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":129,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"b025bcfc-0e4e-43e7-84db-26f54e40422c","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":129,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"c099fd80-511c-4ac3-85b8-15a9e36f3ad7","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":129,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"9077e99b-f41a-489b-9325-bebf818d6de8","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":129,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"ae7b479f-f712-4f7f-8eeb-9190b57d7853","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":129,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"42386ba3-4ae9-4931-8929-85c3a6e17b12","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":129,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"7c7a0f74-6f1b-440d-af11-3b8fec16a685","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":129,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"bba34653-3dcc-48ae-a51a-867145e5ed31","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":129,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"ee5ee029-eb61-4ccc-aaf5-f8e140f5f008","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":129,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"40717963-0f83-4ec0-b9c4-f06a229190ce","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":129,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"821b90e6-a682-40fb-a0d8-f23b37853ec8","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":129,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"43767401-310a-44a0-8dc8-dfe0ad471dce","block_type":"box","text":"or in other commercial capacities. No accounting to the Funds or their shareholders will be required, and no fees or","page_number":129,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"dcbf79c3-0b47-4f70-9532-034acf25fceb","block_type":"box","text":"II-91","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"df73684e-99a9-47c5-a765-9b14dab1df50","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":129,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ad964ab2-2f80-4b4c-9287-955b5ae43443","block_type":"box","text":"other compensation payable by the Funds or their shareholders will be reduced by reason of receipt by BlackRock of","page_number":130,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"586efb97-7158-4071-beea-49b2bf26444e","block_type":"box","text":"any such fees or other amounts.","page_number":130,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"6dff7d1f-005d-4420-8c6d-09cf88fa5d00","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":130,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"8f8b3d45-e555-4a86-8b15-12a04d5a036d","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":130,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"cf92069f-b711-4c52-8633-b3ea4001a93f","block_type":"box","text":"A Fund will be required to establish business relationships with its counterpar ties based on the Fund’s own","page_number":130,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"aad97038-fca0-415d-86fd-56acf9ad6f12","block_type":"box","text":"credit standing. BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":130,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"6435617f-36b6-4700-bdbe-278edd334c2d","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":130,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"b4e1d8d7-c7a7-4c9c-8991-94f113cc50f3","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":130,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"f634c35b-2410-4f62-a4b6-7e375c439e18","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":130,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"8260b7e2-5a43-4258-923e-9a0e096d1528","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":130,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"31c4f5e3-8259-420e-8e9f-6d1c4fea77cc","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":130,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"a54b7f22-768d-4ac3-b69e-90a70987f768","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":130,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"d3046c83-203e-4a2c-aa49-42fcde2901b7","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":130,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"c530c38e-bc3e-42a0-a8c8-3f50318aae00","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":130,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"386de9c1-73b0-45ae-a1d4-0e566d78f23a","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":130,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"f82c7072-2193-4e28-b91c-13bb32fcbea8","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":130,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"fccc9818-315f-472a-9bd0-fc9b63b84176","block_type":"box","text":"BlackRock. As described fur ther below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":130,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"8361872b-6c11-4245-9881-1d2886069265","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":130,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"3eb54e56-cfac-492d-b7db-938194d743df","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":130,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"33bce009-71f6-46e3-8931-32542d3f3027","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":130,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"4efdf75f-bb5a-4aa2-a6ba-1278ada7f7ef","block_type":"box","text":"potential dollar exposure of collateral shor tfall resulting from a borrower default (“shor tfall risk”) in the securities","page_number":130,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"2f8b96e5-0b1f-4d56-a8c6-2b7ba0cd3f8e","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":130,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"2529ef28-5562-46bd-8bd8-9b67f587e7a5","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":130,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"0ac6b828-9e0f-465e-81c3-be7270cf3490","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":130,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"529d6dea-c252-406f-a13d-641a65595696","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":130,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"e36aeda0-c589-4128-9b7b-bfaab3651a93","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":130,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"fa2fc0e4-c865-4287-bbae-2c9f0a220c05","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":130,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"d75a8778-a7aa-41ea-83a1-65b7134ba2f1","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":130,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"8d86a917-204d-4e2b-96cb-e5c1c7011770","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":130,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"cb6baefd-cc29-40ed-8a38-68051193304c","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":130,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"c5df966b-3b2c-4845-a4a5-957eec8d4e4d","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":130,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"8fcf9bcc-2944-4b4b-b82e-28f2a7fac4fa","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":130,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"cabcd564-90f5-4f45-9ea8-e5a2084721c3","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":130,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"d02dbd03-cf76-4187-8c0d-7b1dd0238e34","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":130,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"c135de3a-84a0-46b6-9e5d-277b766eac8a","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":130,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"694751fa-ccfd-4065-9150-95369a659ebb","block_type":"box","text":"regulation.","page_number":130,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"5f9125bc-7647-427a-8507-16b6ae85275b","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":130,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"62769396-6192-455f-a9d0-27a2ea03cfa0","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":130,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"64de4a4a-73ee-4297-8b72-f0187157edb5","block_type":"box","text":"various program limits (","page_number":130,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"c94518e7-002f-4ef0-8337-5d2dda8503c6","block_type":"box","text":"i.e.","page_number":130,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"56f4f51d-a1f4-43c7-aac5-5a599c342f61","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":130,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"df4f2e00-1dba-47b7-a932-6abe633e82fb","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":130,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"cfcaab53-8b27-4955-899d-4abe265b9d67","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":130,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"71a01015-7315-4b0d-93cc-3e305134a7be","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":130,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"7879faed-9b2e-47f8-9d36-a7002f763728","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":130,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"93094a1f-bab2-4107-a375-a398134ae1ad","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":130,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"7e3bf30a-7bbe-48be-ad9b-26cefd1eb1ad","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":130,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"aba87778-8620-4317-9766-3a1c0414d5e6","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":130,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"8cc93e5b-0313-47d4-8d3b-bc2356fba4ac","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":130,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"36fa066a-1733-435e-a31e-0442c5fde106","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":130,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"3519d8f9-a58d-494d-b3e0-62d73c14b3d8","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":130,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"4919a501-715e-42cd-8cb4-a5d18833c1cc","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":130,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"d34b1ba0-1f44-4546-8787-4f30a513a395","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":130,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"eccb5593-24f2-439e-a8e7-9183afac434a","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":130,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"e90a423b-d3e0-4512-ad62-82da4b7f8fee","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":130,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"3831f95a-a2b7-4afd-b0c0-b655e5f46b3c","block_type":"box","text":"II-92","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ffcb7ec3-9cac-4e62-a0dd-03e22c3e092a","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":130,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"17595ede-7c2f-4773-bd54-bead32eb13b9","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":131,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"b666238d-b940-4894-9b02-5bbc9a9700aa","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":131,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"0ab3314c-76f0-4e7f-afd8-ff681e291887","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":131,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"41e6a270-788a-4807-a0fe-05cf995d246a","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":131,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"4499ef35-87cb-4463-9827-fae672410e13","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":131,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"c919d506-40e4-44f6-900e-0f7cd3a66991","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":131,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"fce93602-81ec-4e5e-9423-cdfdc33b5362","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":131,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"5234bbf0-edbc-4251-9aa6-7ea3b53d2acd","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":131,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"d73b79eb-35a8-4eb5-8b5a-a759c3cf749d","block_type":"box","text":"than through client commissions.","page_number":131,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"be8f5a43-455d-4fa8-aa90-a72be160c146","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":131,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"6adb656c-edc1-4b07-83c5-bd22320936da","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":131,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"f6cd2455-1ebb-4f8c-9156-94310425ae2f","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":131,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"fb6aaeca-a6a3-40aa-a593-f49b44b7633a","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":131,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"0fd8e6a8-e03b-46a0-8cc5-d8d8ee2585bf","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":131,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"2230e86a-5359-48fa-a301-dc0f3fe77d49","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":131,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"314a92d5-fbc2-46a8-88c9-7fa5421279d1","block_type":"box","text":"research-oriented software and other services and products.","page_number":131,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"55ab79ff-8ab8-4968-98c2-420005583435","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":131,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"03bea65b-06e7-4a78-bee9-7e457c0e2f9e","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":131,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"01a0163c-9bf4-4e17-81e9-ac1bb879bbe2","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":131,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"99cd84ad-d6b9-4a95-91da-b62eb1c81a4e","block_type":"box","text":"dispropor tionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":131,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"0f90db2c-b372-4023-a7c7-080595bca75e","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":131,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"c06ea0d8-b70c-4d08-994c-ce9a4faadd9e","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":131,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"6367094c-c398-460a-8fc7-0e71543fc2d3","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":131,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"b93815d6-7f52-4590-b876-b7a43284450d","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":131,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"49c9663d-4a1e-4ef7-9628-0b33bead308b","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":131,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"dbab5976-7a19-4f9c-b6c7-9fd58f69baa2","block_type":"box","text":"and services itself.","page_number":131,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"555becc8-cc38-4fb4-b80b-581cf0772e29","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":131,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"89a5f475-44a0-44d3-9dbd-35b8cb4fa018","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":131,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"e903c5e0-d2e7-4a88-9d5f-ca830723513e","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":131,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"d599a34b-52ff-4192-ae4a-b44b959847d1","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":131,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"d53e21b1-a51b-43d1-9a4c-614c547aae90","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":131,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"848c00c5-17b3-4b6d-a800-b96782b6f14d","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":131,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"a24430a2-a2b8-4db5-a61f-48845877017f","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":131,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"d9bf0b3e-d399-4d0d-9b95-36c180f58f42","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":131,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"f6bf7ea8-e626-4afb-8bfa-bdceb2c94ad4","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":131,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"ea10006e-76bc-4e16-871c-5bb6cf87bb88","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":131,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"31c19cc1-017f-4669-9152-642d54669e9e","block_type":"box","text":"securities transactions for cer tain types of securities. These ECNs may charge fees for their services, including","page_number":131,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"c4ca9fbf-ba82-45d7-8ac3-c9fd1dd8f3c5","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":131,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"ae55a3c4-1114-4ed7-9285-11bd008da4b5","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":131,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"97858b4b-9b26-4661-ae0c-88d588395acf","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":131,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"6215725a-0ad4-45e1-826c-30497d28677b","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":131,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"5676592c-6b24-41ee-b753-9b02e9d6185e","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":131,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"fc7283f5-2aec-4808-824d-e85a83f2c4b7","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":131,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"23251dd8-5d66-4138-a710-da64a685cdfb","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":131,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"459e8973-d8c1-44f9-aa14-26ca4cdec739","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":131,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"7ad663b4-5c4c-48e7-93d7-9cf6897e94b6","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":131,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"1ee086e8-3159-4ba8-8501-637853eefa9a","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":131,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"fc4be37b-b35b-44ee-be26-c60d54093634","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":131,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"64045189-ba03-437f-b3f0-6a75d0d0fbb1","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless, notwithstanding","page_number":131,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"09789544-68a8-4d31-94d7-6b39fbcc8184","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":131,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"59660270-ebc7-4df2-8596-41661398a495","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":131,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"7629323a-4912-4af8-bb80-934967401622","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":131,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"169645cd-2bdd-44cd-8852-8e087924b220","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":131,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"88f8dc80-bc48-4bfd-8708-39bf792ffb3a","block_type":"box","text":"II-93","page_number":131,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a391c60c-12cd-4322-a5ce-0909ba32e9bc","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":131,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"697308a7-b0eb-4217-98d7-0c95757c5501","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":132,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"10bb7eb2-2143-45ea-90db-5fbd30d2f981","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":132,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"f5bf49a3-88bb-4062-a692-e0ab3efddeda","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":132,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"6595ef70-992b-4f26-b99e-16cac0184a76","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":132,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"c981cdca-4d3f-45b0-bac3-4d886dcb2fc7","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":132,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"38a84251-b2e5-4166-bccf-5be2606204a6","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":132,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"d4a6aef6-5f18-4b7d-acb0-58902b93f02b","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":132,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"18d18a23-d3cd-4a84-a1dd-4eda5b0edbb8","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":132,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"fa5c8236-693c-4b3b-ad21-8bf1bff5738d","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":132,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"006d866e-14b1-45e5-8855-ec28f3dcb4eb","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":132,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"b8afcf5c-f6f7-4789-9302-b629d85f5b1a","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. 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BlackRock and its sales personnel may","page_number":132,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"f79a7b4e-70a2-4788-8de4-4d7211a02f40","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":132,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"d7a85481-90e4-4564-b873-cdd24046fc7a","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":132,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"0c069b68-e744-4f2a-83dc-35adbd67d69b","block_type":"box","text":"management. 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BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":132,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"585fe434-2382-4e00-9bd4-4cdda0c63299","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":132,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"60de3d08-dc6b-48a2-80ca-35dd438438ba","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":132,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"a1043eb8-dcfc-4dab-8a58-50728894a3f6","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":132,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"cb4ced00-592a-4f6f-90d3-d8da3fa3b0a6","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":132,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"02f0d071-bff8-4e0b-b216-f1c6b7552388","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":132,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"07f5d04c-bc0c-4a9e-9794-50ceb3eaf716","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. 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The fair value of one or more assets or","page_number":132,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"acb08dd7-0822-41be-a2e7-5eaecfeea534","block_type":"box","text":"liabilities may not, in retrospect, be the price at which those assets or liabilities could have been sold during the","page_number":132,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"46efa006-ba57-4204-a992-e0c2f8af067a","block_type":"box","text":"period in which the par ticular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":132,"box":{"x":70,"y":770,"width":779,"height":12}},{"id":"0e2a88da-55cc-4841-8ba5-a016cbcaa449","block_type":"box","text":"redemption of its shares at NAV, at a time when a holding or holdings are valued by the 2a-5 Committee at fair value,","page_number":132,"box":{"x":69,"y":785,"width":834,"height":12}},{"id":"a5d910cb-d61a-458c-a79d-dc7eaa63a47b","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":132,"box":{"x":69,"y":801,"width":788,"height":11}},{"id":"46c2aff0-27b4-41d8-8c80-a1a69b7d4968","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":132,"box":{"x":69,"y":816,"width":765,"height":11}},{"id":"27f10747-07ee-4194-8403-c8e34a36cfbd","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its shor t term cash investments in","page_number":132,"box":{"x":101,"y":838,"width":784,"height":11}},{"id":"5cb75d57-7701-432d-992e-cf56d9d7d19f","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":132,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"4a63f0e2-df17-4598-a904-4344350a2772","block_type":"box","text":"such investments, a Fund, to the extent permitted by the Investment Company Act, may pay its share of expenses of","page_number":132,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"8622279d-ff76-4a15-aefe-d55a33cd7ee2","block_type":"box","text":"a money market fund or other similarly-managed private fund in which it invests, which may result in a Fund bearing","page_number":132,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"1abc7278-40e7-48ac-bc88-1f6520e09a33","block_type":"box","text":"some additional expenses.","page_number":132,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"2f091c44-93c0-43e8-a18f-ca8327b69eca","block_type":"box","text":"II-94","page_number":132,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"04f6f011-4d56-4854-b5b1-526a0c219bcb","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":132,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8fcb1eb4-9fc0-4a1b-87b4-84e9cd0b3888","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":133,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"fe321e83-898e-4c72-9d23-cd80d5586422","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. 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To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":133,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"56fad19f-250a-448a-942f-67becb5874f8","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":133,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"ed375a3a-8b88-4b44-9c51-c01f8b2ff815","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":133,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"0dda55cb-838e-424a-af17-c3a0956c3225","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":133,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"da55c62f-3cc6-4096-991c-e4db025228bd","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":133,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"3f4344f5-b4b6-4ac6-af9f-b8f66da7aa7e","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":133,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"1c0135d8-49e1-436d-822e-4266170087f7","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":133,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"07a60f4f-b547-42a2-b4ef-703044b66fd1","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":133,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"26fecd5c-8451-4ab9-8466-e5068e8de9ba","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":133,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"61bf9f88-5a7e-4f96-b028-8552910b8139","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":133,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"3062cff3-1303-4381-9214-9e21cbd4032d","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":133,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"296cd7cd-6841-4bf3-8f7d-2fa543f8a8c0","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":133,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"c74b634c-7e11-4929-b893-b0beef2ad4b8","block_type":"box","text":"to purchase, the same security or instrument on the same day. From time to time, the activities of a Fund may be","page_number":133,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"36759e97-d66d-448a-b170-39efacd24ae1","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":133,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"141a61df-6190-4381-bf95-255ca87d095e","block_type":"box","text":"to comply with, limit the applicability of, or that otherwise relate to such requirements. A client not advised by","page_number":133,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"41e7641b-9164-4d0d-aa03-21e6d9aa7ab6","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":133,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"1767ccb1-c231-4ff1-861a-e9622a35ff76","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":133,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"03d5f412-6692-426b-9447-46a4f7a69d87","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":133,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"6004bd38-372f-406c-bbef-7880c6071d5f","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":133,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"807ddc53-9509-421c-9e21-1e91cd3354b0","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":133,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"5032e915-f890-4bb0-af2c-44021ba81ebd","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":133,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"35f9f9eb-031c-4ef4-9ebe-eed3a3c2e11e","block_type":"box","text":"public information about the company (","page_number":133,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"0f7bf8c9-8fe0-4629-902d-cd4a7ff44f13","block_type":"box","text":"e.g.","page_number":133,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"a8f3f2c0-bb75-41e1-a35c-9900edcc9eff","block_type":"box","text":", in connection with par ticipation in a creditors’ committee). Moreover,","page_number":133,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"830c1941-85d2-4706-8bd6-214167cdf3e8","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":133,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"cad02e73-7126-499c-ad98-cf3413a8c119","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":133,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"52bd48a2-17a5-4a29-8eef-cb9e3c717a5d","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":133,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"fdb6aa3c-9e4d-4600-88ed-4bf35d3db306","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":133,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"6f9d7112-c19d-479c-8cac-60c621d58a61","block_type":"box","text":"securities of which the Funds wish to purchase or sell. However, if permitted by applicable law, and where consistent","page_number":133,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"19948a27-63a6-4c7b-acf6-e783b00098dd","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":133,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"7dee83e1-8672-4be8-8a60-1ddca7c5c608","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":133,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"898f0145-2bae-46a9-b47d-1be2f68e626f","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":133,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"0e71a192-5317-4f03-b295-19b1efb66f64","block_type":"box","text":"of the issuer.","page_number":133,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"c5819649-9316-4958-b7f9-7ec77b0f8177","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":133,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"3235ea81-9488-452e-8ad4-67865a3cd94a","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Cer tain","page_number":133,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"8717ddec-ccec-4f4c-a3ef-2d6438b4c765","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":133,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"97cd0130-4ad6-46b8-a6f3-3743d913b5ee","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Cer tain por tfolio management teams within BlackRock may","page_number":133,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"26511a80-ff20-4295-b72b-e63510aab3cd","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":133,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"b374bf67-0f47-4a81-8e10-32047cb17441","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":133,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"9c6f5be4-11e0-40d7-8bbb-5cd74e89ba94","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":133,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"0cd5d059-24ae-4911-b916-09ae8c36bf57","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":133,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"248ed654-e580-4c1f-820a-5d5630cd8fae","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":133,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"a610d98c-b604-4bc9-bd98-2633b31e2d16","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":133,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"f6cd7377-3a63-4c01-8186-87a932ce4169","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":133,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"b0985b64-bc4c-48aa-aca1-f8e7edd16ebc","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":133,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"71ffd41f-cb00-41c3-bba2-1d3e30cccac3","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":133,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"9732aaf3-baf5-4589-8cc0-e7b35c5942ed","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":133,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"2dea1c92-fa3a-4585-9057-40984beba224","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":133,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"3aed8fe5-26de-4ddd-8029-e5a2d9798260","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":133,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"b4b506d5-ae89-4cb0-92d9-03722c9309dc","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":133,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"1e55e33d-ea11-4a07-93de-5cea356718a6","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":133,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"b35f9e2e-0dd6-48eb-852a-6b82b4d93d03","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":133,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"7492445e-857d-44e2-851c-2f87d36dfa6c","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":133,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"85c260b7-bf35-4299-b844-98f82b83eb5a","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":133,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"7eea1ab5-51e8-4b23-9a52-f6b126c15d7c","block_type":"box","text":"II-95","page_number":133,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4f25e0bc-4748-40f1-bed4-a166f038a83a","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":133,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b119b96e-f814-4064-a8ab-6360d6e70eec","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":134,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"cde1fad0-331e-4d13-82aa-993f70ffe8b6","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":134,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"65c9ae87-4343-4828-81d4-1c4af88ba07a","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":134,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"6236a178-dc4c-461f-9ca7-f1b507c0606b","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":134,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"e3d92251-3015-4316-aad3-8be15e368f20","block_type":"box","text":"a barrier.","page_number":134,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"ea009e11-6234-4341-bc57-43a1e98d13c5","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":134,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"c65cf9fd-6144-47ce-acd7-b786f2b7792d","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":134,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"3d539cc1-68c4-425e-aad7-591edcc0cbc7","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":134,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"595f4b06-8ab4-4c2b-8a79-6e4aab72f171","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":134,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"66380e8d-a1a3-446a-8188-c7c8136be70c","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":134,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"d0b6f33a-90a0-4132-afc6-ce40c34f1b38","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":134,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"d5d54d64-fada-42ed-970f-43fb966df197","block_type":"box","text":"that operate in cer tain industries (","page_number":134,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"04023b2e-796c-4448-812c-8e999856c834","block_type":"box","text":"e.g.","page_number":134,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"18bfffcb-82c8-4dcf-952b-565bd7957d7c","block_type":"box","text":", banking, insurance, and utilities) or in cer tain emerging or international","page_number":134,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"65068224-03b1-4e46-9e73-1f93f006f94f","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":134,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"2faaf1bb-2832-40fa-a234-acc2954b0b26","block_type":"box","text":"e.g.","page_number":134,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"cbdba78b-4e87-44d6-810b-4434b8003b7d","block_type":"box","text":", with mechanisms such as poison pills","page_number":134,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"dafe5679-39cb-458d-b5eb-64b6d6d1af5b","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":134,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"4e1360e6-b3ae-4aa4-9b14-87bd6ef4853c","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":134,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"e3dc6456-d66b-4e1c-bb5e-deb906a8c7b7","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":134,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"08486223-749e-4a88-aa0b-a098145d71da","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":134,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"0c83299c-3497-4a1b-b793-718430f709b4","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":134,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"05b33409-748b-4a16-aa84-3483792eff69","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":134,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"54719387-9bbd-4387-bb39-7e7454863838","block_type":"box","text":"seek to make indirect investments (","page_number":134,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"e52e8511-bdd3-44a1-9231-c26105ff4dee","block_type":"box","text":"e.g.","page_number":134,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"d7faad7c-80d4-4e73-a80c-48497cdef43f","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":134,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"78ce22a7-dc39-44a0-b88e-6b0319ee26b7","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":134,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"11002004-93c4-4780-87c9-98bca4adafdc","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":134,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"fd3f5b06-35bb-4e4d-8e2b-671ddc3f08d5","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":134,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"bf56b12b-3f28-4378-a30b-f37ad1c1f5d1","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":134,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"55624339-03ae-4807-8067-01af1fa7704c","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":134,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"4fec8514-1d25-4bed-b6c1-cfbf4ef4806c","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":134,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"b2939058-5147-46e7-865f-6f8fb9664ed4","block_type":"box","text":"If cer tain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":134,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"689889c1-704f-4ae6-83fe-2db50eb1917e","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":134,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"988ef838-c141-41d9-84a2-d169c6e71761","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":134,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"2d748f66-6879-4c85-9094-5890fdb2cc0f","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":134,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"9d784304-d548-4323-b4d6-9dee646651aa","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":134,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"f468f5d9-3774-4684-b374-ae9329f1861a","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":134,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"f5e75a63-d56f-4a71-9513-85a19df897b1","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":134,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"8427e24e-fcd8-4056-88e9-6ff8af724f44","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":134,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"7ecc8948-b703-4f4f-8ea2-eafcca476ff7","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":134,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"cd1dd2fd-1fe5-4fdd-bd67-89456d1fc078","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":134,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"cb311ef6-a06f-4ae5-831b-00f984478f01","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":134,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"b7e92c30-0f6d-4e63-b860-d5f0172d228d","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":134,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"02035f4e-62d4-4bb1-8c2c-cac26a700843","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":134,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"a89f3e22-05e9-4b1b-9556-04eb36ec1f27","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":134,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"0e5fd582-6838-488b-a6c9-b030b85aab5e","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":134,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"a78a86d8-6fd3-43a9-93cf-28e0e64e0bd7","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":134,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"b35e3024-cc8e-4127-a99b-93274fc2408d","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":134,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"fef07d90-9ea5-40db-a491-457a65b1df02","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":134,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"2c594e62-e61a-4e0d-a228-bbdb0f142ed7","block_type":"box","text":"from taking cer tain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":134,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"3d0a45a2-1034-464d-9c77-be8494dee047","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":134,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"9cd689dc-20e7-47d4-8f5f-fef3bff37d67","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":134,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"34783947-8aa7-4085-9254-2d702a33e725","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":134,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"2b8d4346-7edc-4914-984e-c34d84d797ff","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":134,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"109b5b4a-1b36-40e4-b582-cec70481c773","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":134,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"e1a82d25-e858-4224-a4d4-c7767810a140","block_type":"box","text":"cer tain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":134,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"29c85fcf-1a9e-4ca6-b64c-4c1ac76d1a26","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":134,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"fbc948a7-48bb-4e25-9226-38da6d3e144e","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":134,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"6469f0b4-f938-494b-bbf1-ba28cc171466","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":134,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"f32374cc-d2f9-487b-b6d7-136b8b28958a","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":134,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"0e223adc-32f3-42fa-a1c3-50d4b5769d18","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":134,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"5faf3113-4a80-4b6c-bee9-2fbf8a5ce07b","block_type":"box","text":"II-96","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7ac37b77-58c3-4f83-8982-5406b903c904","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":134,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"76c25812-3720-4f05-83ee-e4ee22021981","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":135,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"1bafd72b-f45a-4377-870d-99c5bc52980d","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":135,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"c5e82137-f635-4048-acb7-9ad173ba50ab","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":135,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"c6a7a497-c024-4289-a9b0-a9f2efdf895a","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":135,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"0a533960-b00a-4466-be74-f9e7c859d3fb","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":135,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"1cab94e5-7e6e-45e0-bc5c-2c07f1f63d3b","block_type":"box","text":"strategy with respect to such security or asset.","page_number":135,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"d116d65c-47e4-4bb5-a527-283880643202","block_type":"box","text":"BlackRock may maintain securities indices. 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BlackRock is not obligated to license its indices to a Fund and the Funds are under no obligation to use","page_number":135,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"27b42990-3ffc-4183-b5b1-4949ce4d815f","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":135,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"56b2a3a7-c05f-4985-a8c8-5ef78f02dba2","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":135,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"0ce0a836-fe9b-459e-ab3f-ed7a69fe2d58","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (","page_number":135,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"c9331244-839a-44be-b8b2-94ae16ffa9ca","block_type":"box","text":"e.g.","page_number":135,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"3b4df8ff-302d-4c50-add5-7ff0ed94cfbb","block_type":"box","text":", custodians,","page_number":135,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"73e449b8-25c2-4223-a922-cb21a3e1d751","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":135,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"854781b0-41ed-4cdc-a042-cf9d0311061f","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":135,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"f5958361-f026-429d-bc19-6ab05c0673ca","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":135,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"d7b93737-7558-452c-be4f-20a4907be986","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":135,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"ca511f94-26fd-4174-9a7c-63fe053f788f","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":135,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"12a08ec3-a5a3-49e2-91c7-bbb749a13869","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":135,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"2c832ba2-a1cd-48c6-b2d3-102adc3bd354","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":135,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"bffafe68-a649-4b0a-932e-96d4cd4b4080","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":135,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"1cdb8463-f863-477d-b43d-4e9988acbaf9","block_type":"box","text":"selection of such providers, par ticularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":135,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"c7afda38-266f-40e0-abec-c9f54c0be368","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":135,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"c92c7db0-2390-428a-89dd-00dcc5519306","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":135,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"08be2060-299a-4b0c-8726-5633ae5a4060","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":135,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"d6334dd2-3343-4651-9564-a184e3d79a00","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":135,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"324a7f0a-4028-466c-ad5b-5ecc6c3fe36c","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":135,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"a8f95dc2-63f3-4c19-aaf2-cbf598c6f8fe","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":135,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"8e859875-9897-4ced-a973-328d58c2b0ae","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":135,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"d34d66f5-424e-4194-99b5-094139d85d5f","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":135,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"70cdfb37-a404-47ef-a9d1-a7daa7e5a434","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":135,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"7881468b-c16a-4e51-b14a-7c9bde58c7e2","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":135,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"290ca86d-afdc-4cff-9611-b517d6bf87eb","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":135,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"500143b5-be4c-4f4f-9cff-62962830790b","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":135,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"0269068d-5c63-4357-afda-00bef2213ca3","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":135,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"17c75a69-fbad-4408-84b6-6ff0fa37771a","block_type":"box","text":"provider.","page_number":135,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"f3e23997-272e-4ada-8935-00ab0c20d51a","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":135,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"579ae083-14fe-4845-9ffa-cf961136aa69","block_type":"box","text":"arrangements for cer tain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":135,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"f998e7cb-d7b2-4225-be54-37fbd49a0f12","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":135,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"fddfd9f4-9132-4459-9d9a-c4d6a8744686","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":135,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"11dc45ed-5684-4585-a246-21f66cea3d9a","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":135,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"32be2656-7b2d-4a25-b857-d6551d09ed92","block_type":"box","text":"PURCHASE OF SHARES","page_number":135,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"060cda1a-10ef-453e-8d6a-46138da1ca55","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":135,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"0561bbea-7d2f-48e8-9200-97f91596a82a","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":135,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"757c2d0d-1da4-48da-be64-99dfacd9cef3","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":135,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"e14bad0c-7e25-4b0e-a28d-f84cd424d533","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":135,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"787dbf0c-17ee-4155-9112-ec4bc8540e41","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":135,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"bbb41cf5-3583-453d-919a-bdefad91d6ec","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":135,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"5facd04b-c848-4025-821f-0f89caa83bde","block_type":"box","text":"II-97","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"22b82f38-0956-4f71-a0de-fbe80e57f4fb","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b4d30c36-afa5-4d82-9fbf-cfba4c90d3f3","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":136,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"fa164d5e-aad7-43c9-ab79-bb09d2f2c072","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":136,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"e1e814dc-d364-4257-a150-0875c192b624","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":136,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"0ddd69a0-3711-4c8f-97f1-7d8a62fd9b88","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":136,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"b1ecc1f7-fd0f-4dd5-9887-49cd064b84f8","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":136,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"1f17d970-71cf-4112-9279-6289916d34f6","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":136,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"71925f9f-13c7-405a-add1-6dc2a58f454b","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":136,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"06c608ba-2a7e-4468-8c85-c5ec745f9abb","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":136,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"68525bcb-8e97-4ca6-8193-328331937d54","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":136,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"8cc22be8-627a-4e8f-bc40-eca5d0116bb7","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":136,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"8282bb59-bc78-40be-b5af-2de8a1675352","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":136,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"a5c88a38-f998-4bf5-9983-e42484fcdfd6","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":136,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"8732249b-4160-46bb-bcf8-94630668a01d","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":136,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"20996745-3cd6-41a4-be67-bd466f45489f","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":136,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"0db76fd6-be01-4868-9146-892bc1db47ed","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":136,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"4a8f3158-b65c-4a7c-af26-bccb9d5d9cb7","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":136,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"99504d31-3003-4bdb-82b0-c1e4261e677c","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":136,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"49626282-92c7-4ba0-b994-a512b14e4a76","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":136,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"5f77910d-3f93-4f52-a902-4afe10ded511","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":136,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"79dd2329-dc5d-4f47-9855-3b615ec804e1","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":136,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"0fc54687-e5dd-4ee8-8528-d23460b375a5","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":136,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"4747bb47-d19d-4e08-8d6d-8cade715aa25","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":136,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"e7c24f04-d7dd-4c7c-a233-ba0704cdae76","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":136,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"b8ba002b-e3af-4fee-b631-834fe720c26b","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":136,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"788b9e66-c2b0-4e52-a57c-ef095e3d4e8a","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":136,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"7647c650-cdd7-4ec4-9b9c-84d08a9f8662","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":136,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"ede2b874-74b2-451e-ace2-2ee6a18101c9","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":136,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"ff66153c-7c49-4ca9-b14a-e08f2384c376","block_type":"box","text":"investment is $25.","page_number":136,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"c06da898-2e90-4c25-88c5-56872db43b5b","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":136,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"4e743b2e-1be3-4d8b-a0a3-0c524d04b535","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":136,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"07f8a6a1-3055-49a8-a268-c6d1a57f8ff4","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":136,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"72d060de-8ac3-4b3f-b2f6-2ed0102e2d2d","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":136,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"6f2dfe65-9d66-43b0-b878-20239c7d420d","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":136,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"91204f6f-784c-46bf-a78a-ef25df8d6363","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":136,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"fcc62a0e-e1a3-4b44-961e-5e8a9afeb759","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":136,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"082983f5-80fd-41c9-8321-ddaac6b7cd39","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":136,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"72a96d17-fcb3-46f3-88b1-647c11cba815","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":136,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"3b85b6c8-e580-473d-90f3-615ef8f26a32","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":136,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"92aa50a2-cb27-4068-910a-ead05660f4b1","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":136,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"00e469c1-8455-4ff2-8f09-6e00af12d328","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":136,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"75157a65-2a28-4c7a-944a-ba3c6c4dfaa5","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":136,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"c67a2457-e8fd-44f3-a7b3-3093e5313876","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":136,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"e44cc25c-07d7-485b-ad6c-895d0976dba6","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":136,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"f7de719d-a926-4619-ac83-967c7bf0b927","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":136,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"ca111611-d4a2-4e98-b640-1e7813e14dd6","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":136,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"f824ee41-97dc-4dc7-9d74-e397f5b1b077","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":136,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"0481bccd-9fff-4d85-88c4-5d0b648ab9e0","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":136,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"bc65c820-7e11-4a5e-91fb-ea193109945d","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":136,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"b215f61c-97b7-4425-a555-854eaced0772","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":136,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"3b47fcc5-80f0-4451-baff-d6603431eee4","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":136,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"dd09fa17-4cab-4704-bd98-a7eff46730eb","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":136,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"e0cc85b5-d6ed-472a-afd8-44f21fe96b9b","block_type":"box","text":"adviser.","page_number":136,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"894c498b-6fd8-4348-8005-d1de98df32ef","block_type":"box","text":"With cer tain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":136,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"07ea9547-b171-4492-a2c3-8af004267fca","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":136,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"76857bf5-05d0-4bbb-b515-f47470e6d488","block_type":"box","text":"II-98","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c773bc88-6d66-429d-962d-fc8aec8a5670","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c9cf926e-821d-4872-bd62-d6600e29ba6b","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":137,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"bbbe0587-3240-471c-a0a4-c87dec97fad0","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":137,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"09895982-b36c-408a-a82b-5fbe7c8a767b","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":137,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"a8883af1-2193-431a-af61-880dc9fadd3c","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":137,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"e3e46735-099c-4b2f-bc6d-9a7485a6df34","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":137,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"863abf32-62f6-4eba-ba29-68753f7b4167","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":137,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"2354f894-3661-472a-9bdd-1e73d370b546","block_type":"box","text":"also be restricted from making additional investments.","page_number":137,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"f06c4457-d832-4685-8c76-8f90d020f2ea","block_type":"box","text":"In-Kind Purchases","page_number":137,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"085070d9-34b6-4c9e-b045-4d35af304777","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":137,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"4574f0a6-34b9-4c6c-89be-cd8f68c1fd4b","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":137,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"5c19bf78-436f-45d8-9562-d0a3cf0cfeec","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":137,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"54a9690f-837d-41cf-9894-ada063311c9c","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":137,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"a34c04c5-16f9-4bfb-adae-a48779d82aac","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":137,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"9d153fce-814d-44ec-8be1-6c84e4cef74b","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":137,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"2513b3f4-e16f-480b-b0a4-6575d3b5b5b9","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":137,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"9a5af81f-dedb-4d52-bc35-51cee5292ea5","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":137,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"3d703ca6-5351-4f49-972c-85bb353640c7","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":137,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"cb50de2a-9c2c-4a3a-b6d0-2695dbbd1d61","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":137,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"8c36a23d-78ef-47d4-96ab-97315d773e6e","block_type":"box","text":"has settled.","page_number":137,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"64cf7458-c082-4fe2-ae62-cd6bb65d559e","block_type":"box","text":"Institutional Shares","page_number":137,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"0e3024bf-a434-4cd5-954a-9d767e11d501","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":137,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"b002cbb2-f47d-44d9-96fe-7b4d7cb59978","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":137,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"5da8f7a9-e403-470f-8479-970062ad5be7","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":137,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"f4c55223-0fd3-40e7-b606-39708cdfad84","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":137,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"d29c68bd-d316-4f0a-91c3-478b0b0b50f2","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":137,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"755f8708-d8f0-4c01-af37-c24ab9c2561c","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":137,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"04d4d237-26d8-42e3-8090-b494e1478c9c","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":137,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"c337fe64-d0d1-40f9-b62b-c1ff30048bb0","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":137,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"96a95444-2050-4207-bd4a-35819b6b54db","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":137,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"c7cdb4eb-ffb4-44b9-9f04-db33763eb71b","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":137,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"bc4c4cc3-1720-4ab4-aacc-abfd82610f06","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":137,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"175a999f-5738-47aa-ba0e-fb72d9390e2e","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":137,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"1182d70e-6052-42f5-b591-2b3ab4ba0b16","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":137,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"52c85a32-baa6-49d0-948a-1ac145657ce3","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":137,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"c6eb9180-b347-4e23-b754-a3ca239e840b","block_type":"box","text":"these fees and conditions.","page_number":137,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"a7a68f3a-b0f6-4688-aa45-1f40f1e4bc19","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":137,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"3979a381-6d98-46b2-9158-f81a8593c373","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":137,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"94666280-fdac-4c0c-8a81-c9efdc11ca0b","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":137,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"64ef34d2-9034-4755-a15b-7f8f1601c7c1","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":137,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"bcdf2796-e44f-4fbc-b70a-5e0924802625","block_type":"box","text":"incurred by the Fund.","page_number":137,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"337f1f73-916d-4e12-aed6-cb9c0037922a","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":137,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"ac43cc65-1ce4-4b0e-835c-74327f7a976b","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":137,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"596eb413-8d06-478a-a1cb-9302b9d07d71","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":137,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"f64a5bc2-c2b9-46c8-8c64-eb49df5eea61","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":137,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"90ff3f53-9d65-408c-a85c-72fa68b087e2","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":137,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"150eb118-59f1-41fa-aaa3-c1c5ce79cf61","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":137,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"91d2a264-ccb6-4eef-8773-b655aca10b4a","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":137,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"31c5d4d1-26d9-405e-932c-7fa56d90e207","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":137,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"c991f035-6189-473e-9be2-e46973a296a8","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":137,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"fdae327d-4d74-4e43-bdd9-e13b2e695907","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":137,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"213f140e-a6d9-49e8-a850-5ca8bb2919f3","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":137,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"1ccbebf8-d379-4347-a627-9202593e3ed3","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":137,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"89f49914-7953-4fab-8acb-d3468b164290","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":137,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"fdf61ea7-e74e-4990-8682-7ed7eb2be766","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":137,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"86e7bab1-53f2-4da5-9e53-7215d24b484a","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":137,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"e7a9c99f-fda9-40ce-9778-d198d73ded41","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":137,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"50d55830-92cc-4caf-a697-3f5cc3f47d6b","block_type":"box","text":"II-99","page_number":137,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8653771d-20a9-42a8-ba73-a7d6f8155a6f","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7387f5d5-a828-4a7c-89c8-cf80ace3b711","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":138,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"d019ab62-f939-4dac-a82c-d47f8285a02b","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":138,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"9d8c67cc-0df9-4565-aedc-c5c1a6c6b88c","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":138,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"f0db1b99-ff40-41ec-92c3-d10da6b8737c","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":138,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"50c5f844-41d9-4b36-a0f2-13762b904351","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":138,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"7dff6b42-61e6-47a9-9004-2e090077e010","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":138,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"1b55b3e6-e5ea-4559-a43b-bf38dc24791d","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":138,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"c356e8d0-a180-4fc3-97bc-0427dddb7cf3","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":138,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"b9b63e15-6c93-48d8-9cf6-d63af061ba6b","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":138,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"eaf8a27b-e53a-40c9-b281-30f7ea049d36","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":138,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"65aaf177-e352-48ae-8f52-da74e13691b4","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":138,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"c6fc795f-7f88-463f-8611-9467fb353760","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":138,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"18eacf01-3454-4f93-8198-c28846db531b","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":138,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"77728c62-841d-4e3b-b91e-7ff6df4ca82f","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":138,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"8a3607b6-211c-4915-b131-cb75d7561063","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":138,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"4bc7de8c-00ee-4a5e-83f5-ba0dd561b502","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":138,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"40742017-8469-43d0-96c7-52ef86205a5e","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":138,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"dc876264-e580-4344-b74f-941dadefc1f9","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":138,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"b2ba06c6-c0f2-465f-8156-4dca7ddf1578","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":138,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"dcec0616-70ca-4c62-bd0d-d1fcb1bd9d7b","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":138,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"1abcd8af-c848-4b06-b911-023764c02c8a","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":138,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"5fcb71bf-6f12-4d4b-b03e-f03dccc5025c","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":138,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"59b8b2bc-c16d-41a4-8958-69af68678b7f","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":138,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"a265d3c6-d8c7-4e9b-a61e-ecdc68d8f55c","block_type":"box","text":"BlackRock Shor t Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":138,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"05490564-e3ee-4e5a-8818-2aff75f4d86e","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":138,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"9400b565-4087-4693-9b90-a3851e2cfb2f","block_type":"box","text":"par ticularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":138,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"48ab0904-ae33-4c0d-bff7-2571543061e7","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":138,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"35103c0a-91d5-4326-a5de-ca60c90e67f3","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":138,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"e5ff888a-0db1-4a06-aef6-42a830aaac5c","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":138,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"c1e9c106-cb2f-45c9-8ae8-7049884551b5","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":138,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"c63f3bcc-e586-4d50-98c3-c6bc24374f0c","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":138,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"a1e8d5fc-e21b-4e7d-9caf-414182bbd92f","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":138,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"82eaf1fc-eb69-4c52-844c-daadd3343618","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":138,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"097264d1-7fca-4fff-a518-33a88162f528","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":138,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"4c427317-be12-4bf3-9ad5-1d342cd95a69","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":138,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"7194cc8a-3914-4d05-81bb-9a4480d7a028","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":138,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"2999b470-4972-4956-9b3a-8b0f7701d458","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":138,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"b29d98d3-5c32-4334-a2b3-46a56b79500a","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":138,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"7f9bd500-e4ad-44d0-bfa8-58346e99cc7b","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":138,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"50112610-3b07-4524-a9dc-88cc9bc53de6","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":138,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"ca478abd-9e1b-4ab7-9df2-c7797871db5c","block_type":"box","text":"periods indicated.","page_number":138,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"09b9931b-51db-4ebf-b958-ae1fc2389f84","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":702,"width":806,"height":11}},{"id":"f100edf4-f9e3-4ce1-ae68-c1cfc1ac802e","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":718,"width":830,"height":11}},{"id":"bb9f7dc3-cd47-42a4-a22f-7b662275745f","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":732,"width":832,"height":12}},{"id":"99c566a5-27be-4d21-938d-31b473040f4a","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":748,"width":714,"height":11}},{"id":"9d9d570b-8708-4400-972b-585cb95349be","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":138,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"70d08f51-819e-4a4f-9612-f211f25cbb10","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":138,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"64839253-5206-4b94-8e36-a8094a48ce38","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":138,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"beabd708-d782-49f6-b6c3-75c34d13f2e4","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":138,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"e0cbefa7-66f6-48c3-b355-3e517b4661c4","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":138,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"f520677b-49a7-49ee-bc8b-37eac0ff4c9e","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":138,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"554fd193-72cf-42f1-8172-6135e8cbe2a2","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":138,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"e0d58574-11c5-4fb7-aee5-00ea757a37f2","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":138,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"db97f749-767d-45ec-ad4d-86bdd0d2a91e","block_type":"box","text":"II-100","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c9026ddd-74f5-4b20-87e4-6e2ae0020186","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a04ba0eb-a37c-44ae-861a-931ab5137365","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":139,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"e7ffb097-746d-4429-aa68-48dcd129e496","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":139,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"1a42df1c-db10-41f4-a6e8-9d857b68517f","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":139,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"20c49617-0fd9-4649-bcc7-9910274e036b","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":139,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"48eeb10a-6e3b-4ddf-a9ba-933f0caad5c1","block_type":"box","text":"Reduced Initial Sales Charges","page_number":139,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"b07d3358-d25e-444f-9eda-e1f1eb86d2c5","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":139,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"2e58a3be-db8a-4bca-b6cd-8bae986b8f88","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":139,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"ef1acc78-4d08-4164-9d18-7cf4bcc7c155","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":139,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"eff00c3d-5d0f-47d7-bc24-3a8c3198285c","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":139,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"0c33ac44-4286-434d-a0f4-922b4515cb7e","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":139,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"97e32188-d36c-411e-9f6f-cdc7bb2170a7","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":139,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"9c04a8f0-a834-4caf-8d2d-91411bd00197","block_type":"box","text":"cer tain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":139,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"ab20177a-561f-4758-87cb-fc10c8cf880f","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":139,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"6517fce2-fda4-4178-8f35-3f6023150915","block_type":"box","text":"Reinvested Dividends.","page_number":139,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"5effa99e-6540-4185-b130-a7231d8b03cb","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":139,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"6359df2f-9e50-4065-a190-b671312e2b51","block_type":"box","text":"reinvestment of dividends.","page_number":139,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"1bb4d330-9519-47ae-abcf-63edfc97591b","block_type":"box","text":"Right of Accumulation.","page_number":139,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"a0627e08-4d15-4988-be7b-f41dbe94103b","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":139,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"2a3d08fc-552e-4a2b-9cd4-fe9ff143223c","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":139,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"bdf3345d-e0f1-4c9e-bc70-139a31c8dbd8","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":139,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"1d391867-e71d-4567-839e-aa14838e6b0b","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":139,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"f86b9133-1032-4ab1-a520-3ac56458dca8","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":139,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"3806be44-5bb0-41e7-a5fc-3e46fc29776d","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":139,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"2e821282-318e-4064-95fc-7afe6c4e093b","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":139,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"b40224d8-6f19-4a77-978b-e6d8f9118325","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":139,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"3d90ff77-418e-4d10-b10f-b4041acaa9a5","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":139,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"c863870e-63ef-4616-8b6a-60e3aa46d4ac","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":139,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"e28cdcde-dbb2-40e6-aacc-eafb46ef2314","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":139,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"0bd87948-f434-42f5-acbd-3698f7fcefd7","block_type":"box","text":"per formance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":139,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"8996887a-1a82-460a-9e13-7849c02221f2","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":139,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"c551cd8f-75af-414f-9278-fe8e7b1b8c97","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":139,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"6bea2b51-682e-4130-a3ab-46803b54c5d2","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":139,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"efa44174-6b49-4021-9f66-509f594ca6ab","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":139,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"be376bba-c4f2-4242-85f4-5980ef499130","block_type":"box","text":"Letter of Intent.","page_number":139,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"959b4b7a-9d8e-4b72-a27e-322d05f0822c","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":139,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"7f77611f-b0c4-4207-bdf5-f976cb2fa75a","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":139,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"104a851a-2090-4a4e-a783-a6b04cf7e40a","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":139,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"b2dea298-812e-4fa2-81aa-bf1b6792c191","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":139,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"ae9e255a-f26e-4bd2-b093-54dc8147bf6c","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":139,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"2e5af14f-49c3-4a49-8ba2-8afd360c0936","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":139,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"f92b2cbb-9c30-4b6c-aadd-573682662f29","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":139,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"f1786f82-0601-4271-926a-c1178fcfe1da","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":139,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"f6141b1a-5b2f-4b3e-978a-81af79987c73","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":139,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"c2cbe791-bccb-45eb-b49d-4b06ee249a85","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":139,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"446ee0ef-b254-4c02-8865-091d6bdadeb1","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":139,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"f09154f7-5f63-4062-872e-f852d64583c1","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":139,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"235117ba-79f4-494d-804c-ee9edf6834f7","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":139,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"0143c2af-c99e-4b05-96e6-f952194a35ea","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":139,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"59421446-0398-4aa6-ba81-1b25b4e0c7dd","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":139,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"70c26da1-b0c1-4b43-b90c-7f81126b27bd","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":139,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"957c73dc-81ad-4729-95f0-0b75837a33ca","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":139,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"326965e3-660d-42c2-a65b-bd54203e6041","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":139,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"cb1be010-3a46-4044-a594-f7b46fe15bb2","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":139,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"02f30975-86c4-4f13-a560-58e6d231976f","block_type":"box","text":"Placement Fees.","page_number":139,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"d0caae70-019f-4b06-b03d-e1a7835073d9","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":139,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"05e2170f-0507-4985-8ae2-84e64410d157","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":139,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"c283bd7d-1fba-46a9-84a2-1507566e02cd","block_type":"box","text":"II-101","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"48b6a865-22cf-4ee7-86f3-b635d7d7657e","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c00e2ddf-e44b-47f9-8575-a1882953a8ce","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":140,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"8e74d0f9-97cd-4905-a10e-618a4cc6794d","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"0b2ef928-f660-4966-a337-8e7f2b715be3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":140,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"288028a9-bbb7-41c5-baf4-b3238bb200ce","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"546650c5-3cc8-47dc-b541-7a0eb08d98ac","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"afddc26b-f832-48ac-b703-c3ed1215d66e","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"d0dce6a5-68c3-4713-a7bd-30a6157e8f43","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"8cc35251-99d5-435f-8cc1-09f1ffccd1c4","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":140,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"1ffe5143-5f1f-4655-a289-25ef853b250c","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":140,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"2d9b9d69-ff35-48a6-8186-24da9f4057f5","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":140,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"c73913b7-21bc-45b8-9cad-a6c08f241a0d","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":140,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"e5122595-8c21-49f6-8c1f-2b12200d3955","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"13a523f1-fb1e-44f6-af35-5ce5248e2191","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":140,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"2cfcda2b-06a6-4b58-a1fa-914992e05961","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"c6bc0c06-8126-4c33-880b-13a90e91485b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"7a9cc81d-63ca-48ae-9f1b-3f754c7e2def","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"ed479bb5-6716-4b7b-953d-c87051dd91af","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"4f2db243-52a0-44bf-9e7c-46059447a7f3","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":140,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"b5755ca7-cdca-415f-bd94-b2b6780e9303","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":140,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"ca4f9dd4-f795-4184-ae20-c817665d155b","block_type":"box","text":"SM","page_number":140,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"1365a7a8-4015-46ee-86d6-1145ffe0df24","block_type":"box","text":",","page_number":140,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"62eb5421-a5e1-4882-bbb1-b7f74d050d2a","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":140,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"b2a18c8c-1a35-42c5-9657-0dfbe284a0b1","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":140,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"df5cb5ce-99a9-4dab-8ca3-88c5aa4c74a3","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"a314d346-dcff-4eb5-9bba-1b412497e1f2","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"329b5eeb-faf4-4b13-bb41-177180f8040b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":140,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"b08d7ecb-93fe-455a-8abe-0606d9586132","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"cbad0811-e901-4be2-8295-adbe1f169553","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"73790e40-be11-4822-8619-c1d8e5e93ba3","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"478e4676-b202-49a5-88b0-bdc49343bb49","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"826a2b59-1740-4bb2-b2a5-b3b3729a1259","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":140,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"6ad0d4ed-afb1-4b88-8a4c-a3673c4b8d54","block_type":"box","text":"Mor tgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"dcdaf22b-952d-49e8-9f9e-18f999a7dcce","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"ac98ab31-728d-445e-bc54-da12afc20e12","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"5fb78bfe-3eeb-4094-81fd-2dc955014393","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"0bd42933-ff00-48a1-9987-45210e48ca8d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"452e503f-99a8-467a-a1e3-53d38b94411f","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"8f7840da-ca9a-49df-93c9-bee47b4ad618","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"75fe834e-4db4-458a-b446-5a7cc8170d12","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":140,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"ddf8d499-ef09-4974-8bb7-44319cda786c","block_type":"box","text":"may be up to the following amounts:","page_number":140,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"31f3f52d-ff1c-4b3d-9073-da5cfbe7fef9","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"d1cfcb19-e3dc-413b-a75d-cf1a4d7e0dd9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"36aea04e-b2f4-44c0-b556-bba3cd4950a9","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"ef3ce547-6854-4ad8-ad90-23bbf8afc924","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"55157cce-f28f-43f0-ba47-5f82d0726ea8","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"d024ace2-c018-4c24-810c-20ae70325b8b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"596a71bd-da27-437d-bc3d-4e9e6bf9724e","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":140,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"bd5a3c25-4ad5-4571-aa68-91e3debbd0da","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"08353841-bfa1-416e-91e8-d77bb6fe8f80","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"cca43f6b-fcc2-413f-8f0c-5e233779ec6a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"8d5fbaa7-2a5c-4027-978f-42a62ece83b6","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"197f88c2-ac52-4e7d-ae97-679af04e25fd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":140,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"e2fc9595-0f17-465a-bafd-c84eef66bff0","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"c7240c59-c9b6-4133-b9da-be75094361b4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":140,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"a01d12ce-d24d-4a60-9329-d0f59bbffec1","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":140,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"f783744c-8739-49a8-a350-1454fa1d2144","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":140,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"bcdfa75e-b642-46ef-a81e-d751515a16ed","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"b50f1252-4548-436e-b24a-08dc1099a6c6","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"9bf24d55-a4aa-47f7-a837-0eb29c282233","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":140,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"c11707b3-edf8-4789-bfc1-cbed621524fb","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"5b728b08-941b-4fc2-b07b-52c94ed8b05f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"098fb520-0b63-4500-954e-0d91fa047baf","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"af745c70-3e89-4cb2-88f7-05a958475f73","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"1cecf30d-3d38-4ba9-8f74-a1112fd1b98f","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":799,"width":779,"height":11}},{"id":"b03a295c-f71b-42d6-85d6-8a069e4b659a","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":140,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"1397d9b9-0d65-4a0b-8c61-b3b3d610ea5d","block_type":"box","text":"$250,000 and above . . . .","page_number":140,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"9b66d91c-08f6-4bdc-b425-ee8710620866","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"8ff75bdb-2df8-4d0a-b942-f63121e079d5","block_type":"box","text":"II-102","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4944db34-2de9-42df-bae7-42de0a19ae07","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b4bf351f-6642-49fe-a369-e430fd861c56","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":141,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"755c4b8f-b4d0-4097-bb04-73c6d75f2cd8","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":141,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"07198c1e-874a-43bc-bfa4-2c23ca7d86f1","block_type":"box","text":"the following amounts:","page_number":141,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"c348e289-52e4-4ee2-813d-4b5741a75453","block_type":"box","text":"$100,000 and above . . . .","page_number":141,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"df9beeea-f1a4-4a72-9b4d-b45174bb4fac","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"fad51f7b-d420-453a-9880-81fd77e5a6bc","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":141,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"92786a26-0806-490f-80f4-3e84ee3cf9fd","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":141,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"c2407169-04e5-4c1f-97bb-d8fbaee018da","block_type":"box","text":"$250,000 and above . . . .","page_number":141,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"948ba976-3b02-4ff6-9085-6c541a483b25","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"0734ce38-46dd-407d-8868-aeb198f36fda","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":141,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"c28b7406-c24a-42d1-b4e3-8f309c5a7a07","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":141,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"38d906c5-9989-4a6f-8a16-440ef7912e5a","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":141,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"dc5b2302-dea2-4920-bb1f-1dd6b8338254","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":141,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"b9f97ef9-3a2f-4dba-998e-b477f22db58a","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":141,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"a10c8f26-fb32-4f6f-8d91-1b147cdfe9f8","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"4f76645a-6169-4b42-bc81-0ed59429c43e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":141,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"219f4223-dab2-4598-8e5e-aef926e7f1a0","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"23119004-1b16-4110-ac93-3898de1592dd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":141,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"aa56edaf-608a-4fe0-822f-ecd98f0db6f5","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"bd7b2e0d-1eeb-4f94-b0cc-8b29647f42b8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"d457a57d-356c-4c44-b5ba-2e92e89bab7f","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":141,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"f9d7120c-11ba-43a1-b422-7cc84f9fbfad","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":141,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"e51cf9c2-6df0-4e2b-8ac7-ea41adf2d28f","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":141,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"d429ece3-02bf-4455-a0bc-96e6b17f3f62","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":141,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"13f78c8e-51b4-4bcf-9b50-d08629c1d88c","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"408a1548-cbc3-434e-a7a9-e9c8b841338f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":141,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"db927ac8-c880-4927-91a2-8373fda0ca0f","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"4eb0d2eb-0f68-4e65-ac36-3c83eddcebff","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":141,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"b7d77b21-672a-46ec-86e0-93a32026985f","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"0dee2833-f8a5-453f-a734-7b642432668c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"8c8d5ff3-0870-43c0-96a8-7a7ecdaa6844","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":141,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"086199b3-d43b-43db-8498-07b46c3ee94c","block_type":"box","text":"®","page_number":141,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"9f9c6509-b07e-4f99-8aaa-c20677953d14","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":141,"box":{"x":513,"y":463,"width":264,"height":10}},{"id":"bf176b38-7a0e-47f0-8ad3-b8d9ff3f5df0","block_type":"box","text":"®","page_number":141,"box":{"x":778,"y":463,"width":6,"height":5}},{"id":"342cf4d5-5065-4c6c-9de4-236a1797e8b0","block_type":"box","text":"Index 2035","page_number":141,"box":{"x":791,"y":463,"width":79,"height":9}},{"id":"76ab634c-9f87-40a4-b9df-9e00b15bd03b","block_type":"box","text":"Fund, BlackRock LifePath","page_number":141,"box":{"x":70,"y":478,"width":177,"height":11}},{"id":"8f539551-5ec2-43f8-8c35-f2585aacd566","block_type":"box","text":"®","page_number":141,"box":{"x":249,"y":478,"width":6,"height":5}},{"id":"27cde03e-fd64-4e1e-9be1-3c132945aa5d","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":141,"box":{"x":261,"y":478,"width":265,"height":11}},{"id":"fc82bad8-3dca-443b-a8fe-36545118c0bf","block_type":"box","text":"®","page_number":141,"box":{"x":527,"y":478,"width":6,"height":5}},{"id":"67a1b882-8fbb-46e7-8e96-27d43956a530","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":141,"box":{"x":539,"y":478,"width":265,"height":11}},{"id":"5768f4e8-2abb-4d4d-bd41-6b384e00bd4f","block_type":"box","text":"®","page_number":141,"box":{"x":805,"y":478,"width":6,"height":5}},{"id":"ee2a751f-e5be-4647-9699-37f1ab04c65f","block_type":"box","text":"Index 2050","page_number":141,"box":{"x":817,"y":478,"width":80,"height":9}},{"id":"cde26f17-0e51-46a4-a374-5c7ae8980ea0","block_type":"box","text":"Fund, BlackRock LifePath","page_number":141,"box":{"x":70,"y":493,"width":177,"height":11}},{"id":"8b817c0b-0f98-4c79-8509-d397d9051912","block_type":"box","text":"®","page_number":141,"box":{"x":248,"y":494,"width":6,"height":4}},{"id":"75c014ef-1e5c-4e7a-8e4c-e4376e60b6a8","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":141,"box":{"x":261,"y":493,"width":263,"height":11}},{"id":"6a21c7d9-a8e0-4506-8aa6-e68773772199","block_type":"box","text":"®","page_number":141,"box":{"x":526,"y":494,"width":6,"height":4}},{"id":"60d890bc-6015-4d7d-b20f-473edc0277e3","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":141,"box":{"x":538,"y":493,"width":264,"height":11}},{"id":"1142960d-e6c5-46ee-bd5d-f9be942cdcea","block_type":"box","text":"®","page_number":141,"box":{"x":803,"y":494,"width":6,"height":4}},{"id":"03810580-c53b-4430-aa48-b1eb97a47856","block_type":"box","text":"Index 2065","page_number":141,"box":{"x":815,"y":493,"width":80,"height":9}},{"id":"1c3e54f0-a0f2-42f3-963e-d821de78b562","block_type":"box","text":"Fund, BlackRock LifePath","page_number":141,"box":{"x":70,"y":508,"width":177,"height":11}},{"id":"aac883ee-25ed-4882-8258-d9967c9b8b59","block_type":"box","text":"®","page_number":141,"box":{"x":248,"y":509,"width":6,"height":4}},{"id":"48601b61-fb5c-4710-ba6e-0452eeb9a371","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":141,"box":{"x":261,"y":508,"width":290,"height":9}},{"id":"129254c0-caae-4f3e-9e36-cb7d26142b99","block_type":"box","text":"®","page_number":141,"box":{"x":552,"y":509,"width":6,"height":4}},{"id":"e7d68200-c79d-4293-8209-8e6be8f9330d","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":141,"box":{"x":564,"y":508,"width":324,"height":11}},{"id":"8124de27-23a7-44fa-bec6-a22b8bc9b212","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":141,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"d4264560-5955-41a9-9957-48fab2f90f91","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":141,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"72da14e8-46c3-4396-99ab-dc416ad66ffb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":141,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"6c7bd08d-79ee-4ccd-8150-799b7e52f2a5","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":141,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"3ff03109-49a9-44d6-9955-e1a68ad10ccb","block_type":"box","text":"SM","page_number":141,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"7cdffe39-fecb-442c-9f20-3ef59f097b65","block_type":"box","text":", the placement","page_number":141,"box":{"x":773,"y":575,"width":110,"height":11}},{"id":"eb09be06-b358-405b-87fd-824ad9676ce4","block_type":"box","text":"fees may be up to the following amounts:","page_number":141,"box":{"x":68,"y":590,"width":294,"height":11}},{"id":"f925789c-2f7c-4b21-8814-fde8b88d5a45","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":141,"box":{"x":167,"y":617,"width":206,"height":11}},{"id":"a2b3e9f0-2e60-45be-a045-2eef6e886f48","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":141,"box":{"x":380,"y":618,"width":443,"height":9}},{"id":"779bc60d-d879-41df-885b-28987b94dfac","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":141,"box":{"x":101,"y":642,"width":787,"height":11}},{"id":"45601f87-f88b-4b70-978c-1b56abb12bec","block_type":"box","text":"Russell 2000 Small-Cap Index Fund of BlackRock Index Funds, Inc. and iShares S&P 500 Index Fund and iShares","page_number":141,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"11ac7625-af79-443a-b518-acb3c0de203a","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":141,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"d3ba4760-8566-45ad-8f7f-dc3057799963","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":141,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"faa608a1-33dc-4967-83fc-8f73950e6b6d","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":141,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"19a345ac-f7c3-47cd-a770-01111bb79bdb","block_type":"box","text":"will result in a placement fee of up to 0.50% on the first $3 million and a placement fee of 0.25% on the final","page_number":141,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"95d2f261-3cea-4cc9-a702-2d35da367621","block_type":"box","text":"$1 million).","page_number":141,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"5c2148fc-9dc7-409d-a2dd-a39115a0cc03","block_type":"box","text":"Other.","page_number":141,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"d4a31a64-d646-4e4c-b509-f25487fce0c6","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":141,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"5b97c707-19db-406d-a598-b9e0b9b79f9f","block_type":"box","text":"(a) cer tain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":141,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"e7aaf9a3-c04f-4f7b-bf23-13b20da739e5","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through cer tain employer","page_number":141,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"d746fa6e-9af4-4f8d-a067-e74c66c898b5","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":141,"box":{"x":69,"y":808,"width":825,"height":11}},{"id":"ce4abdab-4bab-495c-a660-496e8438f319","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":141,"box":{"x":68,"y":823,"width":773,"height":11}},{"id":"b72d33cf-4048-492f-995a-461b56256525","block_type":"box","text":"proceeds are contributed to a BlackRock IRA through an account directly with the Fund; or purchases by IRA programs","page_number":141,"box":{"x":70,"y":839,"width":838,"height":11}},{"id":"ca1fb5e9-f5fe-465a-9e53-cee6aa06c79a","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":141,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"f1539a43-75c9-4b23-bc3f-c58848dd40df","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":141,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"32d9d390-2d50-4342-926c-f72669c46397","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust depar tments exercising","page_number":141,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"1d6bbb69-51ac-4144-b31d-d76296ca3ab6","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons par ticipating in a","page_number":141,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"47cd34c3-0f1b-4ef5-af24-649f1df75d3b","block_type":"box","text":"II-103","page_number":141,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d1341b5c-c59d-4866-abd5-c5774cd212dd","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"82cf1076-3360-472d-af9d-8cc6fb50941b","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":142,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"9933b436-99a9-416f-978e-2aed0fad14e7","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":142,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"2db81227-db5b-4e02-a95e-2f22dde8f73f","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":142,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"0d2cacf6-0356-49d4-8443-744c2889caa6","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":142,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"3ecfcf75-52b0-4330-adf6-18bc59625d9c","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":142,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"8b7edc0a-804c-40f8-83d0-ccc220f08ddf","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":142,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"e0da7115-b5e9-439d-b373-62d4cc89c1e1","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":142,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"9f00388b-2f9e-4e78-82dd-80ba01d1a8db","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":142,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"ad74844d-382c-4609-bc99-794def114135","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":142,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"e9f9a86c-60a0-4bd2-b385-7628a8eb325a","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":142,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"458276fd-a700-4c8e-bceb-0b3efb705aa9","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":142,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"53407f8e-1672-40c5-8730-23baa07fc970","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":142,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"58c8fb7a-0865-4ca7-83ec-ac01fb61cabd","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":142,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"710c6063-2c72-4465-aab0-1581d34d7a0f","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":142,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"77a9c2c0-e921-4fbd-af8f-6669b450569b","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":142,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"9dcb6809-d352-4dd3-b1bd-e36d963c4377","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":142,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"49832186-15e8-481c-b041-9f725e80e44e","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":142,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"27e78cc3-bb0d-40c1-8b93-b24932b82f3e","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":142,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"d5417170-217b-493f-bab0-9970646abd23","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":142,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"1ab21427-feb6-44ce-bcc1-b849a531da0c","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":142,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"9c609555-e201-416c-8b6d-445f09b0d49d","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":142,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"16aa0160-b065-4e82-a773-643b918dc6a2","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":142,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"aa9467f5-2f44-48ab-ac33-a268e7d46b2c","block_type":"box","text":"Income Por tfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":142,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"136f64d4-b3e3-42c8-b70c-cc00a2f011d5","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":142,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"329974ea-17f5-43bb-8363-33e2bab1ee51","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":142,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"d0261653-5201-4261-aaec-b400c4e73490","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":142,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"fd8f0919-3dfc-4498-8218-d4fb46528a04","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":142,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"8f8f154a-b954-458c-afc1-c222da3e745c","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":142,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"4c8d4028-a858-4cc0-bf64-32ac94cfce6e","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":142,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"2df7fb6f-1631-423d-9c10-c1e22a439f08","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":142,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"75689f0e-3bfa-4181-9af8-243c6b62eeb7","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":142,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"6223df44-9adb-424a-a965-73d07ab1c788","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":142,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"c449d5c1-9945-4837-84f5-dd75fa024acd","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":142,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"a3d16a97-52f2-46b9-9bb7-bdfd5542d7db","block_type":"box","text":"shor ter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":142,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"dd8a659a-a5ba-4c2b-afc1-81cf3a5ac8c8","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":142,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"3c2804d7-91ef-4c7d-8c75-976598cfb8ac","block_type":"box","text":"Funds and BlackRock Shor t Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":142,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"fba39606-ccfa-49fc-a075-1d4e3c041407","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":142,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"1a600866-487b-4b6f-a8bf-cb5e5c04e8b8","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":142,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"ebb4ba2b-c655-47e8-9652-9fd81560b4d6","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":142,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"1c59f553-0ff3-4df7-a192-5f50b9979c0c","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":142,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"7ebfb17d-6a71-47ff-be2e-6069f2fa58cd","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":142,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"c76d8fb8-f637-47d3-aaf2-8a88f7b81dfd","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":142,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"a92cc3db-4280-462d-aef8-62cf59c2d78c","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":142,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"8f731f9e-db81-4bc5-a537-a133fa982d45","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":142,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"7ecdf9fb-e561-4fb6-953b-530752ef7b4f","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":142,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"a43e8d92-14ff-4530-93ae-c936ccafa692","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":142,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"ba2ed52f-4e59-4ed1-a857-a2475433e579","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":142,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"7976d2ab-0ab1-43d5-9dd5-9d40d2701cc0","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":142,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"e372d8c5-c84e-42b6-8165-45fd90bc6392","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":142,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"ab7a4c6c-a849-49d7-af75-8578955a91fa","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":142,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"5fc4db60-bae0-4d1f-afd3-189d9e3cc458","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":142,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"b9e0a4bf-04da-4724-bf87-9baff223e08a","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":142,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"351db14f-913c-49f9-9c47-5cd9de58d481","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":142,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"6cca5b82-a9e6-4c65-82e2-6f5fd6b63878","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":142,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"b09fc41d-24a3-453a-a306-b55bceff228b","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":142,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"6e3a5aa8-eaea-40c4-abc9-3870e1fb8aa3","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":142,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"617e11b4-3ba4-4479-bf22-0485f08b7cda","block_type":"box","text":"II-104","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8058243b-1adb-4ded-9b71-1051cb974d75","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"303f4db1-d25d-4e1a-907c-3d0756830502","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":143,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"622cd552-b958-4cec-a6ae-3679e91d65e8","block_type":"box","text":"the absolute discretion of a Fund.","page_number":143,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"d58d990b-f804-4195-befe-3d4207c59e14","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":143,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"ad46bb48-168b-4ed5-b1b6-7dc033cddc5d","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":143,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"1ee3ade3-75d8-4da2-a6f9-074bacd44795","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":143,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"e11b26d4-ae4f-4e0c-ba0c-805e9f450e90","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":143,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"747638a7-1206-404c-a45d-61f4bf5fc876","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":143,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"b39484bf-a728-4976-9eba-0f193a953b1e","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":143,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"745ec132-00cc-4907-9a82-e4f3f15ad084","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":143,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"037021c0-69b2-4996-b388-0070660a8b31","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":143,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"10a20934-1151-4201-a7c5-1950aaaa238f","block_type":"box","text":"Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":143,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"007232c0-973f-454f-9178-8bba22182f8b","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":143,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"ea407c56-21b8-44dd-b90e-f77d09cd0b47","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":143,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"0e4af700-2d8f-462c-9606-18c1d608a76e","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":143,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"2846b81d-ffab-4bde-9453-d6befa5e7ee3","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":143,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"da1e9eac-0bf4-4823-8ba6-06373887e747","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":143,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"5b4e00f8-1add-4a68-9ca4-b846e3a8415e","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":143,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"a3c34ae7-7efb-44da-be66-79435c45aa88","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":143,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"aa47eea1-e665-4af0-be5c-8d43e2849f01","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":143,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"f2d6b6ff-5e78-4c3f-b865-661cbec892bb","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":143,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"ea0be37e-1b35-4bcc-8d2d-019658f0ecce","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":143,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"6b5b936c-a30b-46c2-b903-5812ab1577e8","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":143,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"ba60ade3-7f25-4115-af2a-bcf8282210bd","block_type":"box","text":"public or private investment company.","page_number":143,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"edbdc36b-08b2-4c18-9f8c-653518b2b729","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":143,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"47e74aed-dc35-4fc8-8d1b-419c33822d04","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":143,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"0d046da5-5e1e-447a-9771-19cea0993792","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":143,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"33466291-f0d8-4ce5-96a7-fc25eca3d060","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":143,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"b57c0fa2-3b65-4d59-8834-6bd1283e6535","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":143,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"3580ac83-2b38-42e7-b3af-9895d53817bd","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":143,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"3eecf36b-6f64-48c9-b698-ad284c2981ee","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":143,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"cb5267da-84ad-4040-ba7b-e33f050f1dfd","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":143,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"1a037ceb-8f1b-4be1-9dfd-7fe54623a89b","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":143,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"260bff23-2a2e-45df-84bf-bd4c7133568b","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":143,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"c910861c-3d19-46f0-b459-40d742fda032","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":143,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"25727d82-774c-4043-a59c-71d2a1654768","block_type":"box","text":"intermediary associated with the account.","page_number":143,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"7651550b-f635-4d99-b61b-b6fb03c3c6e7","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":143,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"9a5a967d-bd8f-49f3-9b16-243212964dd7","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":143,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"a2395337-0429-418b-8cd0-61116554d4d6","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":143,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"d5c86746-b00f-4b8b-aa64-170e3c592381","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":143,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"3ccb97b2-c1a3-4208-9a9e-416f21352ed5","block_type":"box","text":"CDSC shares.","page_number":143,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"defeda0d-a447-4061-9230-b8763395eacd","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":143,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"cbaf4c49-667a-4430-a285-a07b1a377826","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":143,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"d986d26c-d832-4782-8ad3-8e7538bf6118","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":143,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"63405cd8-b32e-4cbc-a86f-486b37c62ecb","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":143,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"bacdb72d-b688-4e29-b765-d7d326e0ee30","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":143,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"37b19b73-4667-4ca8-8ef1-bcd15ce351bf","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":143,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"2ca124ce-a8ab-4b75-ae84-e481dad30286","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":143,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"884b8698-cec1-4490-9f89-adf49d983414","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":143,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"b9c1c87b-b3f8-4400-bb88-bd0d8f2d4abe","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":143,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"44b33f4f-416d-469f-a5ef-c707ffe7c642","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":143,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"07e887dd-d191-4111-b280-5e01c2310f48","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":143,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"5c60ceae-946a-4c2b-826e-1be74f09f465","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":143,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"a2eb2df5-57d2-4fef-86ea-e1edb4baa48e","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":143,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"7647f03f-e261-43ca-ae93-8881b588dc5f","block_type":"box","text":"II-105","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4b7e84be-308e-4939-9f45-c2eddf0ce70d","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"59e30683-b7e6-45aa-86b3-ce1493920f88","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":144,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"95727c9c-b6a5-46c0-8584-7e266eca6ac5","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":144,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"4c5eff09-88c7-4a7c-892b-17767d9c111f","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":144,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"28d38c6e-138f-4b48-bacd-874928ec0d1a","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":144,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"1191d05f-1db1-48f5-99b1-366ba0c0089f","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":144,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"efe17b4b-377c-4bc0-9815-150b0b2d13bf","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":144,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"56a9eae2-3103-48fb-9db6-1faae7b9d35b","block_type":"box","text":"Investor A Shares.","page_number":144,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"97ded0fc-85af-4181-b662-35abb0be4d89","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":144,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"684c0fb8-5d72-4c44-b93e-91217f1df2fb","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":144,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"09073d9a-5010-49a4-9d17-4e72e5ecd134","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":144,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"54e35731-b83e-4679-b658-cfc0cdf49338","block_type":"box","text":"Cer tain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":144,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"8dce07f8-a540-48b3-8f4a-bcfdf756372e","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":144,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"9d46ce51-bb62-4a63-8fa3-24c9fc34d70d","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":144,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"c141baa5-4cb9-488c-8084-e699ca14d4b8","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":144,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"412410f6-3af9-4b7f-85c8-d1750a6052fe","block_type":"box","text":"cer tain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":144,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"f86b75f5-a4b4-4a71-a2b9-c5dd903c52b3","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":144,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"28bbd6cc-eae8-486f-9fbe-2eeccb6c2eba","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":144,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"9046f288-346c-4fd0-9571-65ee196139a9","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":144,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"31baf237-87fc-455c-b403-418fc5a685c4","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":144,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"dc651da8-4eba-49f2-b558-425efaa8e3fb","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":144,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"d38bba62-7530-45b6-a6c2-3a3c09100955","block_type":"box","text":"any such shares will conver t to Investor A Shares as soon as reasonably practicable after such date.","page_number":144,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"7ceaeab8-f5d8-47fd-bc96-1f99b2d50e3f","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":144,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"6458c744-2023-493b-a417-dc4f4d711ff0","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":144,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"abf10992-46ee-43c3-974d-63d32afe48eb","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":144,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"2f2893d2-572b-4bd4-8700-0c2e3810f850","block_type":"box","text":"“Investor C Conversions”).","page_number":144,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"3faf13a5-1f9d-4f1c-85f1-f318d12caddc","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":144,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"3cd10dca-5f19-4879-93ed-10de3787a523","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":144,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"391b1436-24b7-4abe-a7d0-7de330b46a9b","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":144,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"4229a51e-d136-4772-a843-c4f34df246c6","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":144,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"6e88cf0a-db3b-4b39-a5db-61dfe53da424","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":144,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"aed5962d-1181-44c7-bd66-0b65239dede8","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":144,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"5ea26f4d-bcb3-4267-af2b-d5bed345af73","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":144,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"52f3136d-a76a-4abf-a10d-42806a45b6f8","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":144,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"474e1815-66c6-453b-8e15-f92c05768710","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":144,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"1cf6076a-10e8-457b-9acf-b916b13dfbb2","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":144,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"b6f6ca64-4a2e-467c-a314-33cd43439cad","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":144,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"109a01f8-53c4-4d64-92c7-7987a24a8aa2","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":144,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"dbbe600c-93ec-431f-b861-8f8bcc17ad8b","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":144,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"88617bd5-507e-405e-b59e-2554eab3d4da","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":144,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"bab08417-bd12-4e6e-8067-45f3959dc280","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":144,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"e7233ee1-ad4c-4782-b88e-37cacc7f7c6a","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":144,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"f60be087-de1c-46fc-bdb6-5f484d727740","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":144,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"e238d171-e4cd-4f45-b455-3c08ee717d33","block_type":"box","text":"redemption.","page_number":144,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"6df2347a-1b34-4ac0-aca4-8844eb47191a","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":144,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"6ceed8b1-7294-4789-8601-c73169319b7d","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":144,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"d29a0139-13b8-400c-9621-c89f16b6f93b","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":144,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"70694f1e-49e1-4e76-b048-467cddd0557a","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":144,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"299569d2-7da2-4d3e-ad57-3847f304ac0a","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":144,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"9cf7bdc3-af0c-4c92-8e35-274b4f3c888c","block_type":"box","text":"cer tain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":144,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"14f89079-4202-4328-939a-d9fb43d96e6e","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":144,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"b223eec0-fe83-4663-b9a9-e0c25c8b9c16","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":144,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"6d2d2cb1-829b-4478-95aa-ecd7209dd402","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":144,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"273fae28-322e-4e5c-a833-6eeb26667886","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":144,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"e47ca941-296f-4f1e-a51a-11cf9a625687","block_type":"box","text":"II-106","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c572f29d-ce1c-42cb-ab7e-9d8903edd807","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d4d415e8-8d21-4f35-ad64-cb8e94e6e097","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":145,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"6cf8a65f-43bc-426b-995e-1b56185e1517","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":145,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"31c3ee1b-1419-4677-8014-67456d364596","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":145,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"f34958a8-8183-4aaf-8cd6-f11ccfac53dd","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":145,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"be1281ca-0d35-4360-b7c9-87502bfd2e82","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":145,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"b91d7390-35d6-46d7-9647-4ffc78d07b6d","block_type":"box","text":"limitations set for th under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":145,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"5e04b87b-afe8-4802-ac23-bcaf2304cb1a","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":145,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"e70e5760-3aa5-4784-851d-c771ee32651b","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":145,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"c40eebe3-0a99-42e9-bda4-6eace3342b75","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":145,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"bb2346dd-a800-428b-b668-486cfb632793","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":145,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"8f78a61b-89d0-45fc-b9db-e66c62317112","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":145,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"71555125-6c57-4322-9c43-2285a095ed5d","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":145,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"3ffe965f-3cfe-4df1-bf46-c85c792950c7","block_type":"box","text":"Class R Shares","page_number":145,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"97a82672-b640-433f-8b08-14f3196a911a","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":145,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"3740fcca-655e-477e-855f-54825446e11d","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":145,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"6086a37a-6ef6-4358-9c37-0d143482d72f","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":145,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"80f8f1ab-3f25-4038-885f-e4d415285cb8","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":145,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"07aae9a3-ca95-476e-9bbf-7a66a6c9dbe3","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":145,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"1c020746-3f9e-47a6-8f57-1b9f3b6e3833","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":145,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"ebf68a33-b9cd-48dc-8886-bfd6004d4077","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":145,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"faa95911-5968-4174-9201-22f8ddbaadf7","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":145,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"374f8fd3-a78d-4ae0-aa9f-68e3aeeb5ea9","block_type":"box","text":"Class K Shares","page_number":145,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"6f036aa7-b40a-48d5-9bdf-2eb52d485496","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":145,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"c1d8a420-1e80-4c53-b458-1b7b500319c6","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":145,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"7296c7bd-4a54-438c-83b1-2e801216393f","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":145,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"d2bbfd9d-a3e1-462e-abb2-c5a8627f9123","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":145,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"b229b5d7-42e9-4076-97bc-5d6549e302ae","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":145,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"2b6c9657-8248-41e1-90f4-141955db3925","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":145,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"ed795089-6439-43cc-a3a7-665d6d025ac9","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":145,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"d2b73ce6-bbcf-47ed-85c4-d09b705fc41e","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":145,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"e675bb79-1ac2-4b6d-a59d-5884ab9950ab","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":145,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"c1b7408c-47f6-4272-8dec-a40ad49df786","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":145,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"fd3391cf-13cd-4d82-94d9-fe0f492ffd97","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":145,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"eef02511-8a6c-4208-a866-c661b37d3dd0","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":145,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"23c43e54-d26f-4e91-8bde-3af177bb11f4","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":145,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"4bc7315e-86cb-4ebc-b82e-dc726df59a96","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":145,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"36244f69-23a4-4869-9448-f24bc57bfc39","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":145,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"70b7f973-c4db-4c8a-9427-032b2ddaf976","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":145,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"03bcf44c-94f4-4e2b-bb74-a7013b090a41","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":145,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"c1ce08af-b5a1-4197-bab2-426d6c8867c3","block_type":"box","text":"distribution and marketing agreement.","page_number":145,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"578e7b30-f00f-48a8-924a-4a16848dcc00","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":145,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"4670be8d-fc6d-4d64-b44e-1f0544976540","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":145,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"c594ff07-4db0-427b-8ac2-80602c997196","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":145,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"d0678375-116f-4b51-a999-6f4396e359da","block_type":"box","text":"Class G Shares","page_number":145,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"c087316b-13cd-4d9b-8995-091f7baec374","block_type":"box","text":"Cer tain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":145,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"bcfbae7b-0b59-417b-ab60-dbfef1d90c5f","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":145,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"4e762a0e-4da7-49dd-b2d7-be5afe27848d","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":145,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"8c9590b9-a9e5-4e5d-a731-b9369dd176e9","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":145,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"1f7676e3-744b-4071-a047-c6b4df1fa110","block_type":"box","text":"eligibility requirements.","page_number":145,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"5ca57683-4532-4826-a990-bebc648f3658","block_type":"box","text":"II-107","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8e1c177c-047d-4451-9dbe-81bbea1da445","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8b089d60-65b7-40b8-a4b5-78184e72621f","block_type":"box","text":"Service Shares","page_number":146,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"d3eacdd4-94ea-4a2c-8afe-6bebd5a32dc2","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":146,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"971bfc5c-f5ea-4abf-9754-5b98edf37dfb","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":146,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"2d94eae9-9db6-458e-964a-95567e1b3259","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":146,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"52412bd4-9360-4790-a1d1-fb137c44fb84","block_type":"box","text":"®","page_number":146,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"47c32a7a-ece0-4773-a3cf-fe7cedcde193","block_type":"box","text":"Fund in 1996; and","page_number":146,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"afd6ad03-9f81-445f-bdd8-1fe96784cfbf","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":146,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"b07621b9-c5a9-4add-a1c7-dbdddf711614","block_type":"box","text":"SM","page_number":146,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"6ead15e5-e690-42b7-aa11-56dd47815bdf","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":146,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"2817d0dc-cb18-4e44-9ef2-dc296fb91c22","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":146,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"90e3ea52-e6aa-405c-be47-655589f74e16","block_type":"box","text":"BlackRock Shares","page_number":146,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"272033cf-90ec-4fe5-87ca-909c538396fa","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":146,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"f70fc0b5-abc3-4521-bae6-7403721a1a3b","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":146,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"a64374de-1c74-4518-9afd-02a06376d784","block_type":"box","text":"fee-based programs.","page_number":146,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"7887f64b-de0a-49a6-8a12-3ec193e46acb","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":146,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"3b83995e-b647-478b-9837-25110043d91f","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":146,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"51e4d690-06d7-4132-894a-d6c94d81bfb9","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":146,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"ec06c864-05e8-44a1-95a9-9ad412440921","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":146,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"b4b330e2-fa00-4d90-9721-4f0da95705e8","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":146,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"140c3527-65cd-4759-ab55-1f15a1fbfdde","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":146,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"f88ab36c-b1b3-4eb5-b521-4b25bde38be1","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":146,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"a37b4f23-5235-49c6-ab68-2a4eb2f69686","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":146,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"aeee939f-4a8f-43bb-b9ec-a83ec0df4a52","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":146,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"5046b367-9116-4784-8066-5ae7d65e9d88","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":146,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"d7f0255f-dfa6-41e6-8d44-2c618b5d6af2","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":146,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"39a643d1-af35-4daf-aecd-6f5b666e7164","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":146,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"fdb1808d-00d6-41c5-9741-3c8e1929d705","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":146,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"d3720a10-a2e5-4d67-a11e-55f5e5258e44","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":146,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"9f93c039-2e46-4e05-9ec8-bf001bdef0c3","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":146,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"21c56539-06b9-47d3-9d00-1a6f12b9b705","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":146,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"a9d9dfec-1b2a-4052-9810-60eeb46ad758","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":146,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"df80ac4d-02e3-489b-8560-4d726b83834d","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":146,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"b2b4a271-edb7-4c23-9a8e-85e7a85fc5fa","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":146,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"9548f59b-1d5a-4cf1-823f-47b7b23c66a8","block_type":"box","text":"The suppor t services provided by Service Organizations are general shareholder liaison services, which include,","page_number":146,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"d872a084-3bac-4b3b-9241-f7f6b2a6a5a2","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":146,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"b082c12d-353e-4691-b56a-4df3f21c8d92","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":146,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"1b5cdfb8-c163-417b-9095-b00237baea94","block_type":"box","text":"per taining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":146,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"717c263c-2082-4754-9b0b-808ef93f6083","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":146,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"c5f4f81e-43d0-4204-9715-6d4afbecf44a","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":146,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"5cac0383-7143-4622-99a3-164aeb7e8274","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":146,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"e96037a4-47d1-4d26-bab0-bf9205c65e26","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":146,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"6c80e203-95df-4c45-895d-f700ca476f10","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":146,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"e7ffcb9e-d5c7-4ba7-9996-51ef95894066","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":146,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"4bdf6366-cd7c-406d-bcd2-3d9b2fd91ebf","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":146,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"faf667ab-1ee5-4b1d-b021-efabae1aafcc","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":146,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"1555238e-adb7-45cc-8850-3e9b44d282db","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":146,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"b4ca5241-49c8-45bf-81aa-519253b4fe11","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":146,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"d9299c3d-7125-4703-83b2-80330b56b0b8","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":146,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"a435fea9-c3f8-4709-b210-ceec4dcb8dbf","block_type":"box","text":"expenses, adver tising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":146,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"a3056c5a-aa22-4593-893d-808f3fbb84c9","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":146,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"0e6e826c-b22e-45c4-aae0-6bc98e304985","block_type":"box","text":"compensation for selling different classes of shares.","page_number":146,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"c2116997-42c1-4173-9f8b-95a3d38faa52","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":146,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"054d4107-0540-4b19-8567-414049f8d0fe","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":146,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"b1de21bf-3263-4d29-ad5d-f1443b3f7951","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":146,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"4f6e7ff7-396d-4d6e-bd89-2c8d84cd9b8f","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":146,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"1777b98f-40e1-499f-92c0-3a69d7d522fc","block_type":"box","text":"II-108","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a91c4177-e70f-4f38-b591-89ba4c11940c","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"94be2037-9887-46de-ae40-deed9b8196da","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":147,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"da1f6df7-ac82-4dc0-a04c-87f7d918bbeb","block_type":"box","text":"repor ts regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":147,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"5e1acb26-e87f-44dd-8416-2493b8eb845f","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":147,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"90c7b526-5456-4068-b64f-922bbb8a21ec","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":147,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"afac2320-ccb5-44db-b1dd-f6dd1f7d1966","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":147,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"c70c9780-f90a-4a0c-8dbd-22683f75ab78","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":147,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"093bda3c-e652-4e21-96c3-cb1d80c5e476","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":147,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"47657e54-0d51-46c0-9356-5d8105c6996f","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":147,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"7f3b2001-6310-47b3-bd70-f5467fe95532","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":147,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"1e05f73c-579f-40b7-a9f1-41ad480502b5","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":147,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"b5dab22c-1cbe-47f5-a0be-7e485d571bcb","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":147,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"d4d45389-f43e-4f63-9df2-53c7d356cd81","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":147,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"4ef3983e-4cf4-4180-ac2c-f75cc38b5841","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":147,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"738965aa-9c30-45b7-899d-115ca676999b","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":147,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"c281d979-adad-4219-9322-710ce2790fbe","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":147,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"2fae2c3c-2d15-40ce-b057-a3dbaeaf678d","block_type":"box","text":"easily accessible place.","page_number":147,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"8050a4a6-392d-4a2c-946d-df4320f6d32d","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":147,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"89c5c784-bec7-4aa4-ab65-7f211bd70aca","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":147,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"3e944a8b-ab53-4a90-9128-3325a3d337e8","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":147,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"cc1aae15-3b09-474d-841f-e3bb9b0f0628","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":147,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"a018fbaf-70ca-49bb-9f5d-6c432a769d28","block_type":"box","text":"fiscal year.","page_number":147,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"75f6dd2a-075e-4481-89af-23d17439fae5","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":147,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"91023b9b-db74-4589-a729-bbcc0a484a6c","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":147,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"fece93d4-9172-4f37-88ec-54b6d9a4e25c","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":147,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"b5549178-5bf9-4990-af83-9cf639d1b1b0","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":147,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"132bbdc6-c58d-49d0-92fc-5fe7c4dd8854","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":147,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"b5f6475b-8488-47b3-85cd-b0d649408b12","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":147,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"76cb74c7-f7dc-4053-a598-9cf33e1b3967","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":147,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"ce56bd82-21d6-409d-825a-d261679da668","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":147,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"d79c3a09-1132-49e0-8343-f858ea470329","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":147,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"ba6e619d-f2dd-48b8-83cd-207349e6146b","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":147,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"fe889e23-878b-4df7-98ca-1ec46633dfe7","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":147,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"3c1102c4-9ef0-4a80-a824-852241cc7c9b","block_type":"box","text":"and Class R Shares of your Fund.","page_number":147,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"88db0795-fbb1-41a3-b1d3-9c1f0974af32","block_type":"box","text":"Other Payments by the Fund","page_number":147,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"0e7cc306-92ae-4100-8231-2df6b6a810d5","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":147,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"11a02c96-4447-4f60-a34c-4344ffcea1b0","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":147,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"0736d32d-ee59-4b8b-82a6-8f976b4e18a6","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":147,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"d306487f-5385-4eb6-8c9b-d888747ca87e","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":147,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"fc632ffe-12fd-4db9-beb1-7b9fa16206e4","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":147,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"ed223ff3-8ed3-4b33-b7e2-08190de46dac","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":147,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"ec4ed784-cb00-4d21-be2d-6ad8ec6e43a8","block_type":"box","text":"of these payments may be substantial.","page_number":147,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"b75194b7-cb85-47b8-83e7-ace3ee5bb1d6","block_type":"box","text":"Additional Payments by BlackRock","page_number":147,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"fcbd6d9f-050d-49eb-9ab2-b3d93dcd6b16","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":147,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"fdf14666-dc3c-4281-881f-22a700c07427","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":147,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"a8f64b30-e224-4997-aec4-ed0fe741c58b","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":147,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"5323578d-d178-43b4-a828-1467584fc0b3","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":147,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"559d61d3-1b6b-42cd-b8e0-68d5802a6fa4","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":147,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"c33b344c-d67b-4913-82ac-d1fbf1652c60","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":147,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"d58a4ff2-7698-4f46-ae46-476831fff110","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":147,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"3384cc52-da8a-429f-8b3a-c09c6cd14761","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":147,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"3f43c9d9-4130-4579-a3b2-02a6946d0c88","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":147,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"38893034-29b3-4e31-b816-3bd8ac2c7dae","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":147,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"76c4aee1-01f3-4931-806e-830c2f867cab","block_type":"box","text":"II-109","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4ebaa19f-d5f4-4d74-a168-efa8c93b97d9","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fe6e06af-2576-4a93-9244-eb615f68bf09","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":148,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"0a9b1d53-d96c-4ef6-976d-ecde477ce8a4","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":148,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"6913d743-6163-4dc5-8fdf-304a91c428df","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":148,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"f249040b-5cfb-4d78-8571-19c9c5371863","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":148,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"a7785f3e-ac4f-4f95-99a2-9166826cb5e3","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":148,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"5c4b593c-05e5-4e6c-946e-eccc14c6a588","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":148,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"bd75bf37-e23f-4a7d-ba63-99a38031b45b","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":148,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"b01cc90f-a34b-42e7-961d-45b4d2799e0f","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":148,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"8f64d311-066f-450b-9a04-7e2ce06578b0","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":148,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"cbf03ad1-c1eb-4c5b-a769-105416ffd933","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":148,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"54f67f76-1c59-4e84-b902-d2b1f2bc6385","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":148,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"49f0f0a5-f3bf-47cf-82ac-e0541523e1bc","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":148,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"7a3df954-6706-42af-a6c3-75a40fa7a5df","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":148,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"9dac552b-4e61-495d-bc95-3d9917258077","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":148,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"36820ad3-d728-43cb-a774-c98326e033ad","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":148,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"d6c25b71-fb42-4000-8099-1da34eb1e6b9","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":148,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"ec2394ad-ae85-40a8-8d17-9a73f58b9061","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":148,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"d5b638ed-5abf-4996-af0c-29bebf56e55d","block_type":"box","text":"cer tain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":148,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"53ab2366-db86-4674-8b7f-842570c7e5c1","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":148,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"fe066edd-8152-4a16-919f-bc62c210db97","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":148,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"02065c42-82ca-48bf-97ba-8e35a7071ccd","block_type":"box","text":"Funds.","page_number":148,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"288e2330-3f70-4f7f-a7db-dbff575a0645","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":148,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"4ad321cb-54ac-4c23-85b4-1f41e70978d1","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. 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BlackRock","page_number":152,"box":{"x":70,"y":361,"width":833,"height":11}},{"id":"639a956c-cf9a-4a77-8455-dce8f7031138","block_type":"box","text":"configures these tools and calculators and localizes the content for Service Organizations as par t of its customary","page_number":152,"box":{"x":69,"y":376,"width":817,"height":11}},{"id":"fe145ca4-fc91-4f99-8670-c1d3831b52c0","block_type":"box","text":"digital marketing suppor t and promotion of the Funds or other BlackRock funds, iShares ETFs and other exchange","page_number":152,"box":{"x":69,"y":391,"width":815,"height":11}},{"id":"e2e54af1-36f1-484f-86df-fd4074b3e5c4","block_type":"box","text":"traded products.","page_number":152,"box":{"x":68,"y":406,"width":116,"height":11}},{"id":"676d6a7d-b687-448c-8060-a05a20b77008","block_type":"box","text":"F. Conflicts","page_number":152,"box":{"x":102,"y":429,"width":78,"height":9}},{"id":"9753ce82-fc57-4ab9-99ba-e90b549fe608","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":152,"box":{"x":101,"y":452,"width":710,"height":11}},{"id":"c76841ee-8494-4264-b35c-a90a1bdeda5a","block_type":"box","text":"arrangements may be an impor tant factor in the Service Organization’s willingness to suppor t the sale of a Fund","page_number":152,"box":{"x":69,"y":467,"width":803,"height":11}},{"id":"bec5043a-dada-443c-9590-d14f42e03c74","block_type":"box","text":"and/or par ticular share class through its distribution system or to per form services with respect to such Fund.","page_number":152,"box":{"x":69,"y":482,"width":788,"height":11}},{"id":"500f4c77-0ad2-4dfe-a1b0-7a5f8a59a81b","block_type":"box","text":"Additional Payments and other incentive arrangements may also be impor tant factors in the Service Organization’s","page_number":152,"box":{"x":68,"y":497,"width":819,"height":11}},{"id":"4672e8e0-5c64-48f5-bd5d-e17cb198e67b","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":152,"box":{"x":68,"y":512,"width":473,"height":11}},{"id":"57ac6316-8674-4cb1-b063-4f160ac15d1e","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":152,"box":{"x":102,"y":535,"width":793,"height":11}},{"id":"374dadd9-a43c-4d54-9173-eca8b9bf6a03","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":152,"box":{"x":69,"y":550,"width":835,"height":11}},{"id":"36dbdfa3-a0dc-42cd-ae3c-05ddd9db8549","block_type":"box","text":"the extent Service Organizations sell more shares of a Fund or retain shares of a Fund in their Customers’ accounts,","page_number":152,"box":{"x":68,"y":565,"width":833,"height":11}},{"id":"a8dfb019-9ff8-446e-9c95-5616e6f1fc69","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":152,"box":{"x":70,"y":580,"width":830,"height":11}},{"id":"0a0fb2f5-bc62-4311-b935-0c58e663472c","block_type":"box","text":"Service Organizations may have financial incentives for recommending a par ticular Fund, share class or fund","page_number":152,"box":{"x":102,"y":603,"width":774,"height":11}},{"id":"de905886-a57e-4f70-b17f-f30cbfb6adce","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":152,"box":{"x":69,"y":618,"width":794,"height":11}},{"id":"94777ca6-6eb0-4a36-9426-51d8b145576e","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":152,"box":{"x":70,"y":633,"width":818,"height":11}},{"id":"26bf0106-5607-4769-a6c9-cf667695e377","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":152,"box":{"x":69,"y":648,"width":836,"height":11}},{"id":"5a9c21c7-b1ad-4eae-95b7-268c7c5abb39","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":152,"box":{"x":69,"y":663,"width":723,"height":12}},{"id":"468b35a2-fd2d-4c9c-a2ea-20e7788747e7","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":152,"box":{"x":102,"y":686,"width":759,"height":11}},{"id":"b2be6032-4659-4df4-9075-032cf2f1d532","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":152,"box":{"x":69,"y":701,"width":760,"height":11}},{"id":"ff4cfe56-f47d-4d85-bf9e-a92ce97fc48a","block_type":"box","text":"appropriate.","page_number":152,"box":{"x":69,"y":716,"width":84,"height":11}},{"id":"bcd8913a-4e51-4de9-bc8e-d59130015203","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":152,"box":{"x":160,"y":716,"width":738,"height":11}},{"id":"e84bb7d8-aa93-4e6d-acc9-febad2b54abe","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":152,"box":{"x":69,"y":731,"width":795,"height":11}},{"id":"07b49773-eb93-48a2-8f06-255260eca169","block_type":"box","text":"described above.","page_number":152,"box":{"x":69,"y":746,"width":122,"height":9}},{"id":"7696aafb-4be3-4870-8f9c-d590d97e17b8","block_type":"box","text":"REDEMPTION OF SHARES","page_number":152,"box":{"x":385,"y":776,"width":208,"height":10}},{"id":"421ea3a5-f79d-4885-b2be-6ec223ce6d9a","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":152,"box":{"x":102,"y":799,"width":798,"height":11}},{"id":"cc3bcd74-19ae-48b2-94a5-795632d1ff95","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":152,"box":{"x":68,"y":814,"width":836,"height":11}},{"id":"31a79fba-cb0f-44ec-9fb0-1e05a6a12977","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":152,"box":{"x":69,"y":829,"width":840,"height":11}},{"id":"e3eb0bde-a3ee-4326-909d-a224bb479015","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":152,"box":{"x":70,"y":844,"width":814,"height":11}},{"id":"8df9c1de-f505-4240-bb9d-dff5467b8f4d","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":152,"box":{"x":68,"y":859,"width":809,"height":11}},{"id":"ab241fe4-e69f-428e-ad0d-fd478e910a3c","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":152,"box":{"x":69,"y":874,"width":827,"height":12}},{"id":"7f87545c-c15e-492e-9b1d-8663f0d1a54c","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":152,"box":{"x":69,"y":890,"width":839,"height":11}},{"id":"e2ee2c12-a9fa-4864-a62a-ab2c084a3893","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":152,"box":{"x":70,"y":904,"width":797,"height":12}},{"id":"3e11ec76-da06-40de-ac4e-cc6f36d4beb5","block_type":"box","text":"II-114","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5a9a1d37-11ed-439c-9f93-fd2c0ff0b3af","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e7d6d4cb-2414-4ff9-b521-662b25e9ee5f","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":153,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"90006918-6aad-4244-bc82-3e95b6ba7a0b","block_type":"box","text":"for any shareholder of the Fund.","page_number":153,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"7d7bfd26-33ce-4480-9ca3-12cd4319605c","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":153,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"07650ecb-fcad-43eb-8478-c946d6b18083","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":153,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"1a4d3db0-f6e0-4a8e-9b79-87680acc19eb","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":153,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"c0d11a0c-7b9b-48f8-bc51-4f6295270afe","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":153,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"933d7d53-f39c-4744-8a88-070be9827b19","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":153,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"43ef1ff4-c3c6-4ecb-bbd6-ee450e908b82","block_type":"box","text":"redemption.","page_number":153,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"d57819fc-c6ac-4a68-a663-b4f3036d8d1c","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":153,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"01afc055-8fec-49b3-a224-453d60a2c2d8","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":153,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"520b42f3-7faf-400e-a41a-d0a484dc37b2","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":153,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"9724407f-f0cf-4e6d-9e15-9ab52774dcc5","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":153,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"ea113041-b2d8-4887-adff-77a573206153","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":153,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"d63a78a7-bf7f-4224-ad13-25fd26434639","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":153,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"4f3e2ac4-dc54-491c-893c-75a0ce3af991","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":153,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"945e5429-783d-423d-9e39-4fca5a8fba83","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":153,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"b57e3ddb-0916-4050-8c23-09d217c49b43","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":153,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"e8c2b99b-e579-4c48-b8d6-c070d12d864e","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":153,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"3fd21dd5-7d10-403f-9a49-f0eaf940c890","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":153,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"22a8b2d1-adff-4586-ad6c-2ecf33ef944a","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":153,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"195c61b1-044b-4908-a4b8-7e558cf6ea4b","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":153,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"65145303-6073-46c9-85fd-833047b90860","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":153,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"b79b17e9-0baa-4d66-be69-89944b8b631b","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":153,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"cc0f819f-53ad-4a32-95aa-731bffc761db","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":153,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"5f127c1b-eb1a-4f0f-ba14-62963d2033ce","block_type":"box","text":"Redemption","page_number":153,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"b1ff835f-3414-43c3-b7ab-88d061fc359c","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":153,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"81db0bb1-dd14-4257-b796-51ceb3d77b1b","block_type":"box","text":"Redeem by Telephone:","page_number":153,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"a2ea960d-d1c7-4f51-a3cd-660bb4b0bbf1","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":153,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"7f973e67-75ff-4b79-9437-1c925ced7592","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":153,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"31c64436-d188-47ef-823b-c54c2395f2df","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":153,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"cfc56d7c-83a6-4f39-886a-06bd6aaefb6b","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":153,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"3331b965-4d48-42c2-a4a4-ab0a0a1cbd87","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":153,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"941a3f09-0ade-4a39-87b2-3fc2aa783b34","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":153,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"97775b96-0e5b-41b3-b23d-0c12ce5dc12a","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":153,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"e44639d9-98f0-4f3c-976e-4741b4ef2729","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":153,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"087eb9a7-b4a4-4790-9422-66d49786156a","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":153,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"85ab7aa2-6c33-4196-9f5a-0578764db4d3","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":153,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"02b726fc-5f68-4b53-925d-8e057ecc0d33","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":153,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"df7f80fa-a7ce-4868-a563-e8eab00e684c","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":153,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"2a08f10e-dcd8-419d-9087-2eb400a03281","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":153,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"daf5f652-74c3-45c9-83be-2ac9366df05b","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":153,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"897f0f0e-5d37-43b4-9a52-501a5383b2a7","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":153,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"5b37ff57-6e5d-429c-bcc5-e64b3a5a8aeb","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":153,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"3a938405-7318-4a90-9d81-ce6b70bdd133","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":153,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"22abf2ed-f2fd-428e-936e-d51c0fb40dc8","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":153,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"e74b902a-9488-4aa4-a7ac-49fe08ac2103","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":153,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"05b9a686-17f3-46e0-82e8-ca170091a3e8","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":153,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"f23a0137-8b8f-4cd8-a2d0-43da9ce5b7f2","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":153,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"6164ba7d-4b73-44b5-bba5-e833fbdf09c3","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":153,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"56506977-f92b-482c-bae6-dd5c1481086f","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":153,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"fe17c240-a09a-4489-95f0-52418b6927d4","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":153,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"a0c60726-26da-4413-9287-4e258ea9db49","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":153,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"a5aff99a-f46c-4519-be0b-cad9d4eb8a0a","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":153,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"d9106127-2f71-44ec-82cd-469ec2f62edf","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":153,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"390c915b-c8a8-4496-8daf-9a1eafd92cb5","block_type":"box","text":"II-115","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"664a43a1-1979-412f-b559-7f835ec5f154","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a4cba22e-e338-4358-85b6-847b9d58473e","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":154,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"b00bd374-03d8-433c-9792-3d8c1c274616","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":154,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"6349ada6-344f-49b6-a3f0-66b392297f5e","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":154,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"b17963e7-570b-4cfa-a645-1669f16807c9","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":154,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"21758189-8839-4981-834e-35136d39f588","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":154,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"71989980-daa8-4486-88b4-120374b81ed1","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":154,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"2df0bf7a-27b6-4405-87e6-a0092b88bb09","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":154,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"2cbaecca-fd12-4bfc-a546-be71bda2ff5a","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":154,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"7c451d97-c09a-48bd-ae2b-b8acd641ad4d","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":154,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"b197a54d-67a5-4d65-817d-25c248da8e3c","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":154,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"6953da65-0f0e-4f62-a873-52bfab9373ca","block_type":"box","text":"Redeem by VRU:","page_number":154,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"cae85063-aeb3-4a9b-be45-d509fa68a04d","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":154,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"d4a97d92-f6fd-452b-b632-ce2c30afdd4f","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":154,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"776144be-4c00-46f7-911a-e8b38b1f59b9","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":154,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"8c15d950-8071-4bfe-8f32-dc7ff36fcab4","block_type":"box","text":"Redeem by Internet:","page_number":154,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"18c4d474-6ff3-4264-8c59-93ecdb5d8bf8","block_type":"box","text":"Cer tain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":154,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"10197d5e-eafc-404a-a00f-7e9f1f588db3","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":154,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"d910f191-88c9-4495-b938-e5b6af7a9ede","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":154,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"871128cc-d4ab-4586-9439-6a7d9290a7db","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":154,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"0e488036-bc2a-44b1-98bb-f6e9f8a3d9e2","block_type":"box","text":"institutional investors.","page_number":154,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"38369aea-5642-4a85-adb5-acc2d42b1751","block_type":"box","text":"Redeem in Writing:","page_number":154,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"930fee93-fcf9-4e50-87b9-4b2870c445f1","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":154,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"7dc6a47f-0569-496a-858c-f0c73db77c9f","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":154,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"639cf3ad-1e5f-488c-9e3e-03a25a339bea","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":154,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"27df9896-0d95-44bd-bae9-435e5d498310","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":154,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"7ef154c3-dd51-475d-8735-707c39580844","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":154,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"84e036ab-b345-4bd7-b830-65163370f85a","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":154,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"77770d45-56d4-4da9-a9e2-766821ca20db","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":154,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"5d5c62d3-52dd-462e-9fd9-db2853ba8c84","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":154,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"1e9a6b3c-8627-4498-81df-f7b57335c093","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":154,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"c7515a50-6af0-407c-801b-36e2971cbbb2","block_type":"box","text":"or wire to the bank account of record.","page_number":154,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"7bdec6d1-390d-4b25-aa92-c53d74c6c805","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":154,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"1130f632-6afc-46cf-a5a2-45912a23ab9f","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":154,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"65670d4e-8097-45a1-8edf-5b4b85a6897f","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":154,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"54622245-53f0-4288-b76e-b5303590155f","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":154,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"3445d439-40d4-4720-aae1-2cb26ea7f9ab","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":154,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"d46bd2cb-8e1f-45dd-9493-3babf936c4ed","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":154,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"a7156be9-5265-4417-8fa7-832582fc51c7","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":154,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"a50d413a-e434-4011-85ff-8f3b8bf4bcef","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":154,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"da7f47c4-982d-493d-b40d-b5fcf41a0ba9","block_type":"box","text":"redeemed by the Fund.","page_number":154,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"ad65df5a-0646-42c3-a0e2-f5ae9d42a1f5","block_type":"box","text":"Note on Low Balance Accounts.","page_number":154,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"2ed379e5-1472-422a-b699-11c516ba447d","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":154,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"6389e0e8-42ed-4041-979f-67037620014e","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":154,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"6b2d1e27-2cdf-43f3-a881-74552cf79f79","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":154,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"c368986d-5fbd-48ec-9257-1f8df656144d","block_type":"box","text":"for any reason, including market fluctuation.","page_number":154,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"953e1f21-a85d-407d-b6c3-d1e2aab93cb5","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":154,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"4b23afcb-ef22-44f8-911a-a79d31030e97","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":154,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"e7d10840-2dd0-4097-8a92-c4a049451104","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":154,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"3e2a0deb-807a-4d06-8c46-629b90c2a2e5","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":154,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"32d97275-9235-464e-b30b-e736cb06cfc2","block_type":"box","text":"cer tain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":154,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"a92c7f8b-d011-4b7f-933f-d774aa5e99bb","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":154,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"5ad74f8e-9008-4a16-9a0d-1606a61502cc","block_type":"box","text":"Redemptions in Kind:","page_number":154,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"0dce6ec6-5f96-4848-927a-3dbe1a00f309","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":154,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"a7c7bc1c-ce1c-47c9-9af2-e3ac36bdf8a5","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":154,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"4effe88b-0706-4894-9f4b-28d0dfd5c6e2","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":154,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"b9a461d6-70d3-4613-8dec-a30da085b24a","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":154,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"bc9c68cd-54a4-464f-a816-3641fe71c611","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":154,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"f84addca-6fde-46fc-b045-6f4f8f533a59","block_type":"box","text":"II-116","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"084866f7-86f5-45b9-bc56-68437ab8db83","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":154,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2243808b-55ed-4a4c-88dd-363db6f55b9c","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":155,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"bc0f8104-21f0-4f74-851e-35b32604fdee","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":155,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"7905118b-f95c-471f-a345-cfb51a503e16","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":155,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"6003f7de-6071-4063-816c-d6b8b3963774","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":155,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"d5fed5e1-71f7-4e57-b1f6-6baf9165946f","block_type":"box","text":"considering cer tain factors, including, without limitation, the por tfolio management team’s model or optimal por tfolio,","page_number":155,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"bd495cc1-5469-4041-87e5-a98165483749","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":155,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"6be99fdc-0e3e-4f83-af49-b4350713bbdb","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":155,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"5c1852d2-b42e-4200-b33c-3462bade7614","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":155,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"2be768fa-943f-4f97-acc6-a1acf8d72665","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":155,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"fa46b535-5ae9-49c8-93af-f19e20839f59","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":155,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"cebe25b1-bf6d-4780-8559-3135337e604b","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":155,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"0bda650b-0ff7-4921-810f-b61b2edcb6ce","block_type":"box","text":"efficiently or for any other por tfolio management purpose, and (b) externalize cer tain transaction costs that would","page_number":155,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"3bf5f9aa-98ac-4d94-a924-f975bd2e7eae","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":155,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"2979da66-1aa4-4c96-9be7-834e3cc0f815","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":155,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"5d63ca89-7bcb-4f3d-a017-c45540dcf950","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":155,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"8dc4f114-cd3b-4252-9abe-1e31af3b069e","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":155,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"140d8760-c67f-4271-8d21-76dab376191b","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":155,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"2b808ba4-c612-46ac-a955-97bb41175cb6","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":155,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"4e6fb40b-17fb-4168-8093-e52f62cd3e9b","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":155,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"cf2d1fd8-c92d-4619-8cf7-4865189f7c80","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":155,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"27c564c2-f3b7-4354-9dbc-db45871db82a","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":155,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"fbe5f668-8422-4bdd-9ac8-aecef66c1149","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":155,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"e8bfe0c3-7247-4706-8360-0729686a4ba6","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":155,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"ca88d6f1-3870-436b-86a6-05a15a9031e5","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":155,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"6579424f-1a79-461d-a1f5-df633ec0e42e","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":155,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"47a49f74-d137-4279-adf7-22576483f9f4","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":155,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"b6ce22cb-9b44-4279-9e8c-b012b696bd8f","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":155,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"28116902-c1c8-4df5-9375-d1e86ea2aa4b","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":155,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"09f75869-b0b8-41ce-8192-94b463bd2e9a","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":155,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"3cc06924-e1de-4b2c-829f-810f250b731b","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":155,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"c4b802db-e305-4a64-9534-75fd9b318eac","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":155,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"71b7b318-451d-4c16-8102-97e8771ee20e","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":155,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"1e98613f-8ea5-4240-b563-ac182d6fc40b","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":155,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"8feac967-264b-45c6-9d30-63d9166bb1c5","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":155,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"3cd2af0c-c5fe-42c5-bd76-21435aca34f8","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":155,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"bd2664ee-bfa8-4150-b15b-2fc9ff6b1bf2","block_type":"box","text":"Repurchase","page_number":155,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"3f05a6ab-6223-4fba-a0ad-e707ffa4ae74","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":155,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"9dede822-b30f-4249-b2c4-6daf5e443d7f","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":155,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"381cfa48-24ec-423b-a617-8f3bae7221cd","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":155,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"a024dcd5-cb99-4ebb-b2b6-54d8f045a767","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":155,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"aa76439f-9a35-439d-a678-e1de75293529","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":155,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"7f7def3b-a9a2-4ec7-aa77-89431b6de390","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":155,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"8d0f1da1-659b-4047-8e4c-21e4ae4d6b86","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":155,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"e00fa0f0-952b-4247-bc3f-c790f8a296a3","block_type":"box","text":"next business day.","page_number":155,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"4a217de5-3fe6-4773-aca8-bf034efa8137","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":155,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"ec906e0d-c36d-4f4c-a1a7-e766706a19d4","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":155,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"46fc4e44-96a0-4ed8-be85-e33ac319261c","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":155,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"c101547e-e725-4a29-9bb4-b36cad5b62e1","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":155,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"78968908-7ebe-48a9-b71f-24e018eb6d52","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":155,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"81b3d9a9-6e44-4afd-b650-11872d1a6737","block_type":"box","text":"redeem shares as set out above.","page_number":155,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"9bff728f-f177-4a0f-bdac-3107ec2ed1d3","block_type":"box","text":"II-117","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6f3faf50-f551-4c69-afb9-50dcb4274d70","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":155,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"90cd50cd-9969-4cd7-acde-4a09ed1e383b","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":156,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"2f1c78df-98c2-46c7-9b84-8c5a9fed1945","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":156,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"35ad38d7-640b-4d8b-b14d-f524f40c5387","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":156,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"4655c8a5-0f81-4cfd-b8ab-9c505ea9f4b4","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":156,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"be23a4bc-e611-4b7e-a501-5762552573e9","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":156,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"4b4851ef-e4db-4f11-aa90-e24cc101a3e2","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":156,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"83ff0be1-da33-4d8b-9264-7cc080151e6c","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":156,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"2229a4d5-4430-4a1f-8a78-b355313298ea","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":156,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"e26ce52c-0afe-49a0-b630-04f8f8b61e52","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":156,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"3225db27-2152-441c-a408-d03b6680e4e8","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":156,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"46261ec9-93a9-4f52-9ce4-f361b820b602","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":156,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"dfc677f6-de77-4cbb-8c72-a459e651838a","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":156,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"f726d4a2-7df9-485c-840b-24d27253f2ab","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":156,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"cb19884d-8fd4-4f6a-a0ff-2ca59af91b2a","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":156,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"05923260-ed85-4f15-8d57-7bb028d12598","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":156,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"d6816da9-70cb-40b1-bd97-a585c1764f3a","block_type":"box","text":"Investment Account","page_number":156,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"d26e08a8-859d-438d-af83-1d9555e6262f","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":156,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"2cd04b1d-4d27-4b30-b3c2-577a9d8b599b","block_type":"box","text":"least quar terly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":156,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"338ae047-f783-4694-890e-4dd557638d1d","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":156,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"b788d456-0ac9-449d-b985-b6f7ecb95187","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":156,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"e2a817db-bc55-43f4-b310-70d38b448f34","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":156,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"e354e050-5598-4d0d-a305-af52e5b1885a","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":156,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"d87a74d7-49f7-4946-ab1f-f625accd6253","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":156,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"4046796f-f428-446f-9b81-769749494a66","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":156,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"22d3a92b-9c11-4049-910c-f020a7576453","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":156,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"c2ef76ee-dd8f-4779-b59d-ada9e80cc9b2","block_type":"box","text":"automatically at the Transfer Agent.","page_number":156,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"7c0e326f-c85d-4e16-ab6f-419b83d91936","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":156,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"0559c662-0304-4c1b-a507-c7671e4f9d32","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":156,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"c95b3308-7c9e-4b6f-8669-4acafc1f0f6f","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":156,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"0b69659a-89c7-4ef7-8a39-a8de52bfa209","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":156,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"1c05a8e8-5f3f-4f15-a566-10f870dc4168","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":156,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"6c1f1298-6158-467c-bd30-89e21503554e","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":156,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"9f0ffbe9-151e-43b5-b10f-732be5a057ff","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":156,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"90a065db-240f-472a-86ca-e5aec036111d","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":156,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"0477b3e6-999f-4067-a8a3-0fc72f440f77","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":156,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"69778790-139c-4b36-acc5-631f6e9baee9","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":156,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"534184f8-5d82-4dfc-89a0-b663ed5e853d","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":156,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"d236c9d2-fda3-49bf-8235-ce4162ac71ba","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":156,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"2c319a62-cab1-4132-bd43-444112b1db83","block_type":"box","text":"issued.","page_number":156,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"a7a1d4c0-9009-4ecd-be8f-3a257db52f68","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":156,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"9d829d95-796c-4e68-a761-3c127cac8603","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":156,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"9e2ce4d1-5540-4106-aabb-26537372d965","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":156,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"3a195487-3e35-4910-b02b-b87ce5edefa9","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":156,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"97b549cc-e089-4a8f-97d4-b9d0a1480064","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":156,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"de0e2eee-3d75-4082-a2e2-f7625fa58b64","block_type":"box","text":"Exchange Privilege","page_number":156,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"eeca7773-8f52-4b2f-becf-a0c95dddd477","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":156,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"7218f86d-6cb5-4265-904b-4cc217fdc847","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":156,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"de22cf94-e905-4c18-a699-95fb21a1609d","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":156,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"4b6eb221-586c-4ab3-ae3d-f51f71f18248","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":156,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"fd4c8100-ab68-4ddd-b9c7-d0be77ada40a","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":156,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"4c63a540-e857-47bc-979e-831d6f0fb2f9","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":156,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"f3198c66-465e-42f1-a2c3-38dc91e53c77","block_type":"box","text":"II-118","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1e5f0571-9a3f-4592-bd32-0f245581314c","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":156,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"910fc1b4-42d4-4eaf-8915-f5da9ee4dd98","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":157,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"0ac37ad4-81cd-4e13-8907-38f76ec409f3","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":157,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"2e1a39a5-c047-41e3-86f4-9db6ede5c6b6","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":157,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"166e2ca0-6e8c-4438-9411-2e95a835491b","block_type":"box","text":"Institutional Shares","page_number":157,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"ff0496de-3858-4633-91a8-cdd400a6bf87","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":157,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"ea7c7bda-6dea-482d-8772-0263e9911a28","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":157,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"dced0c6e-6b83-43e0-8d3c-4059cc5b0d06","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":157,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"d4689853-0616-4858-8dc3-ceee9c445b2c","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":157,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"3473f764-db7f-4ddd-bc4a-3331bf586a88","block_type":"box","text":"for Class G Shares of other Funds.","page_number":157,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"5853223f-8828-44bf-937b-1188e29eb78c","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":157,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"6c6fa71e-6a6c-4208-bd6e-92fa9c9563d8","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":157,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"11354717-25d7-4ef9-aa7d-dae48cc55c3d","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":157,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"0bbcd4aa-2671-435d-98e8-c5775954a222","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":157,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"48dace66-ff81-4725-9f00-106c3d23f45d","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":157,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"ea1bd289-4ef1-461b-998e-4157871caeb4","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":157,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"8dadbb29-0f51-4584-b042-381c30921c0d","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":157,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"561930b0-e0ca-4df3-8818-fa260654930d","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":157,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"0aac7ba0-7f24-4e22-84ff-e2c2a2fce7ba","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":157,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"f4b8713e-e8e9-4a69-83f9-e20483163c34","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding (“outstanding","page_number":157,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"e58573fd-5bca-4433-9af9-94a85c1f9861","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":157,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"cdcb28a5-3e1d-4743-a8f0-496f190f4f3d","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":157,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"4ca40864-65c5-4c1d-a188-92140a11802a","block_type":"box","text":"the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":157,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"f5bde1c8-7772-454f-92aa-be5400efac8f","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":157,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"9ab993ba-601f-4f08-8f82-fcc989dc54df","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":157,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"772f3287-48d8-413f-9998-b2a31aa48859","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":157,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"1fb48370-5ae9-4849-b4e7-644443fd1d2e","block_type":"box","text":"Exchanges of Service Shares.","page_number":157,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"667031ef-08b5-4a63-97d1-d82bce3dbc89","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":157,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"6c4e3313-426c-4202-8880-6cd6eee50cc8","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":157,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"ac4f4aa3-5d5e-42c4-b9de-e551a17805b5","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":157,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"de9320a6-5b17-4d4e-a6ca-4f618f57234e","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":157,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"71baa40a-9a6d-4dd4-bb6c-5121343f1ef4","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":157,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"28a1f656-f389-47c6-bc76-2ba3c4893fb7","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":157,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"f50f59f9-6dba-43fe-a0ee-b56b53656a5d","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":157,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"025faf5e-40d6-4b7c-b002-4fd9193ab61b","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":157,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"54928dd8-a501-468f-9ffb-568560006e99","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":157,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"9aba8dee-720e-4f1b-9adc-c9d0ca8a4812","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":157,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"adcfee7d-e399-40af-912d-74f1c7bf16a2","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":157,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"d1354e12-0c65-4e48-a3ef-414cfacdec74","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":157,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"45132698-f9e2-4aba-a47f-85fc263b3b6a","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":157,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"b3e303bf-da98-4c90-b351-7ad278594e46","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":157,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"e26709b2-c128-4013-8a52-9a45fc201657","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":157,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"457b0ad5-6f7a-435c-91c3-a02a0b301d6c","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":157,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"b3fe239d-8a1a-4fb4-a479-65f4896df39b","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":157,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"c75a8b80-c5c2-4ef1-9019-28e4a36a91ba","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":157,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"bc043b3d-eeb9-45a6-a96d-77e76a108a51","block_type":"box","text":"exchange.","page_number":157,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"a328f043-2153-4072-b77a-3eb746d7163a","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":157,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"60478069-60a6-421c-95e2-c9aebb73c582","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":157,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"d0467287-c232-4171-a8ca-b06767397462","block_type":"box","text":"par ticipants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":157,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"87d08d0f-72a6-4670-91ed-9e188c74abe3","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":157,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"98f4a2f9-3469-4d17-8577-9752dc0cce68","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":157,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"d8dca3ff-8c6e-46aa-8d82-4944beaa8a9b","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":157,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"68602672-7ced-4133-b24b-8dfdfd533ae1","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":157,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"01c8bbd6-d32f-406c-b24b-9fecb7dcc893","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":157,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"e918a41d-4850-4805-ad6f-c11c1acc2348","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":157,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"79f0179e-66cc-40bc-87dd-fcdb47b98866","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":157,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"c725a60a-bb3a-4b2f-85d3-f4ecd373bc12","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":157,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"0197bb07-21d7-43fe-baaf-6ce2970140bf","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":157,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"50e3ebf2-ea18-4f7b-aee6-c0c0518bc2fb","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":157,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"49376dd4-45de-40f2-baa1-95509edfa6e6","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":157,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"6096c922-6919-4b74-b50e-3521ffa2484c","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":157,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"cc74f943-e764-46cf-b2ec-bebd83650bd6","block_type":"box","text":"II-119","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"10e2ed31-dd0c-4448-8f3e-42c6bed2e748","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":157,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"507ba16c-598b-4533-831a-73fb5a7cc5c3","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":158,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"67a24253-f371-43d6-bbbf-97be3f281556","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":158,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"df0a722a-1de1-4291-bc4a-dacdfabc0db1","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":158,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"43b56e1a-2962-4666-915d-ea7d65a02498","block_type":"box","text":"Transfer Agent in writing.","page_number":158,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"99f12474-b91f-4314-be93-6fa5edaf1650","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":158,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"91b3a96f-d628-4ffb-97f5-3793d6fa2d35","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":158,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"f6f50d36-69c6-45fd-968c-9ae311244ec0","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":158,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"d29d8ddf-2f5e-4970-b35a-58fc259f3a1b","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":158,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"4b95bc9c-8235-40a6-96bd-c6a8e87f692a","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":158,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"e5eff1a6-792f-4e70-9ba5-e9d6d72682c9","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":158,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"b142f199-1490-4a01-908c-cfe9ca07fd3d","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":158,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"11c8e232-644b-4f6b-9b31-1af01eaa88fc","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":158,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"c0a0c19b-ca9c-479a-923d-1107fdddbb4d","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":158,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"86b3408d-c521-48f6-9d18-743c540c0efa","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":158,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"9ccf3454-cbfa-48fd-90ea-633edbeed42a","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":158,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"16b630c3-11a0-4224-a1b2-ed8adbbcd383","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":158,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"c85307ca-de7b-4b9d-bfc3-1f8aed42221f","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":158,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"41afe36c-6734-44c8-ab38-1b183cfa7268","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":158,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"9c1831fa-01bd-4fd1-9ac2-fc146916e4fa","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":158,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"587768b0-2912-4ffd-8a1d-953c58161731","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":158,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"ed7b33db-faa0-48cb-aac3-2d41f81f5fa6","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":158,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"5d884061-4fbb-4453-8d7b-0685bdeea573","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":158,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"7e3e01f3-7d60-4d69-aea6-b564888709ba","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":158,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"4a6a9f60-8175-4412-9bfa-f8cda24ca83d","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":158,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"3a16cdd3-a1f6-4890-9ca8-bc7821eb8ef7","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":158,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"d5206843-5166-43f7-b6f8-82240d423cc9","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":158,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"bbac1dee-a77e-4c98-afbe-51c99dcc8d4d","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":158,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"7c0b7309-86cc-4761-acc2-6b535766fef6","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":158,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"383b5599-e0c0-478a-bea0-6cb0feeea353","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":158,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"066b2356-fbef-44d4-876f-f5c2d6229722","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":158,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"86aa6e48-50af-4aa7-a8b8-585f2ce556da","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":158,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"4d99d7d4-9b47-44cb-bd51-9250a9cfae3a","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":158,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"cc3956e4-0f3c-40c4-a144-1da1f512d193","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":158,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"74a5214f-40ea-49a3-be1d-2b41ae1299a3","block_type":"box","text":"may be distributed by the Distributor.","page_number":158,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"8f1a4651-ec2f-4ab0-ab2e-0c70ead21a9e","block_type":"box","text":"Participation in Fee-Based Programs","page_number":158,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"8646729a-37ec-49f9-a3f6-e04337a63d83","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":158,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"fbfda617-b389-4826-837d-f613a6f93b51","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":158,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"7fbe985c-0392-4b3f-a2c5-6e33b2bb5944","block_type":"box","text":"programs in which BlackRock par ticipates, you may be able to buy Institutional Shares, including by exchanges from","page_number":158,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"4579b3c1-b2f8-4ff5-a472-da7c9301376c","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":158,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"4858b421-00c1-460d-96dc-fa49909faf5c","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":158,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"b6866e79-e03a-4041-96f3-c08d00625e33","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":158,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"97f3cf89-2df7-4164-acf4-ffaba8ece86f","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":158,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"6199cc4e-83cf-4488-bbdf-ea0f9844d913","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":158,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"16df6736-93bb-4792-b5e9-a5a4f7cc7265","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":158,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"0cd22590-ba80-4e34-9a2e-0f1deca44c9d","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":158,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"91620362-358e-4f6a-b3f9-7879f247c8ff","block_type":"box","text":"an account. In cer tain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":158,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"ff55cede-e35b-4017-b1bb-a25efeb8e270","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":158,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"4e96e9dc-918d-42d1-916f-0a4e0ad133ca","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":158,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"dea0fb93-5a7e-47a9-857b-51929cb1c20c","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":158,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"8a715986-bbbd-4ba7-a35d-9620b1a56cd1","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":158,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"79e30f29-b922-4b7f-9228-876051bd31c8","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":158,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"48f4a812-be26-4bdd-a3e3-3549e5683d45","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":158,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"293ffbe3-be6d-462c-84d1-f183418f5e65","block_type":"box","text":"II-120","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"edbebfbc-6d82-444b-bd3a-8650295b3eba","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c09957cf-b2f7-4c9e-8edd-ab022d59aa60","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":159,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"2f45b27b-6ce4-4bf7-8c2d-2a30b14d54bc","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":159,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"63ea7715-246b-4181-a4b4-e1a175405bb2","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":159,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"d8a71464-10e3-46b8-97d5-2362238471d1","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":159,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"ff48bb90-ac61-45e3-aa6a-0ce50c4d69e0","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":159,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"ad14edc4-be0d-4973-93cc-8df8a32b95e1","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":159,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"7681c511-c115-49f3-a4c4-aec64653a706","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":159,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"0f9417b1-dca0-487b-b6f4-8e55f751785b","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":159,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"f78bcd0f-e112-4900-b031-ffed5071fbea","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":159,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"e3f94ad1-bf56-4a2d-8a1d-767dec11a8be","block_type":"box","text":"information.","page_number":159,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"0256c5db-13d8-43c8-9e01-240b9bbf77f4","block_type":"box","text":"Retirement and Education Savings Plans","page_number":159,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"8da975db-2822-45b4-b9d4-4b534d53d6a0","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":159,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"be159558-4309-4255-93f1-e6f7255ea6c0","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":159,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"953c3c96-8cb3-4eaf-a63e-89bc3dfb258d","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":159,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"ae614117-9d59-41ed-b1b4-89601e705958","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":159,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"cb997061-5227-4776-96e8-e9abff529708","block_type":"box","text":"your financial intermediary.","page_number":159,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"9fdff3c6-aca2-404c-898e-f04c9f201d76","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":159,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"55e465d2-fb92-462a-927c-2dfe737b7c13","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":159,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"abe34eaf-c4c8-4d77-bd00-8214728c7381","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":159,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"bcca703c-5c22-40cb-b804-a448c9bf696f","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":159,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"ba4726f5-424b-4d7f-bb74-bf81a37ba08c","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":159,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"0eb51595-ad85-442a-a5a0-82dff4f71d7d","block_type":"box","text":"Automatic Investment Plans","page_number":159,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"8b4dcb37-80dd-4416-9eb7-df5b40060cee","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":159,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"2161a692-47ca-4598-a1b5-da40fcbda531","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":159,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"7befad07-f687-439a-9dec-424c968aa94b","block_type":"box","text":"®","page_number":159,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"a35c2e0e-9566-4afc-b17b-71b5f3925d56","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":159,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"024d48ad-4bb2-4a01-b030-b6c0558e15a9","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":159,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"01615473-04fa-4dc7-9001-ba1c4c7d325a","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":159,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"cc869d59-b031-444b-a911-b0756a6ac227","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":159,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"5b830fed-e291-42f0-95fb-4950caca499c","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":159,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"35bb461b-ebac-4bda-862c-08fa13405a9d","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":159,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"36e4fbac-51b2-49bc-bc90-e447d6d24188","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":159,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"af8dddc1-2c8d-47e0-b131-cb784d6810ca","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":159,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"dc63379e-1376-4161-9270-1fb7cf1aeb46","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":159,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"64dad90e-0303-4301-bf8c-7ac5cead499f","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":159,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"655dae5f-a110-4d52-bab4-eab00a23a919","block_type":"box","text":"Systematic Withdrawal Plans","page_number":159,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"23bbb5e4-bc12-42a3-804b-e7c21c81508b","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":159,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"02fc4ae8-5326-4704-a77c-fb81b5b71576","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":159,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"061f5188-47d8-453f-bf16-590f896fdd10","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":159,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"cb009f32-820a-4602-995c-4caa3cab5d50","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":159,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"64500e7d-b073-41be-8f10-d1b3f47ec543","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":159,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"bf77125c-0a19-4a25-bf29-67fc32db305e","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":159,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"718d4d1d-2913-422b-945e-4fce035fa6c9","block_type":"box","text":"www.blackrock.com.","page_number":159,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"3e783eb0-bab6-4fce-a0c2-dd2820934f72","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":159,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"3bb2d8ab-053c-4459-8211-c75eeb91f079","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":159,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"39a0ad52-0d21-499e-87b3-8cb936f0d61e","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":159,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"4f4e1e4a-65df-46c5-9957-df1e6fccb5c9","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":159,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"23d06f28-d059-4979-a49f-3da2b1e7123b","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":159,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"29492c0f-5a5b-4665-a950-85e3f4d825e9","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":159,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"219091aa-d276-4006-a7d9-e8e3595423e2","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":159,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"7f8d8343-f4d5-4a9d-8269-81893afec920","block_type":"box","text":"II-121","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"72828df1-256d-4112-a780-af065d8ae42d","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9858636c-3d93-4776-aa0a-b26dd978b792","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":160,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"1abf8a08-db30-45ab-addd-d3514ea1d066","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":160,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"d9ba7f33-152e-4ec1-9d5a-5ec13fa89ecb","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":160,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"5aed8f6c-2d64-4876-a284-9bc6ab666978","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":160,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"328da8d5-a743-451c-a558-4f39b42eeea1","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":160,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"6e97625e-6df6-4196-adc9-0cf4c65a549c","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":160,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"3bfe2103-4053-48ae-b0e0-ae272c19a083","block_type":"box","text":"Dividend Allocation Plan","page_number":160,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"f125a6ac-b1e9-472f-9d7f-c524c700fc3b","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":160,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"e0f9a224-84ba-49b9-b46c-981b3d6e2860","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":160,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"b2e1510c-e1f0-4610-a603-5e8f52331699","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":160,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"9ed3caaf-8a7f-4b55-9940-3f7e1f9b4cf7","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":160,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"877809b6-4207-4cc2-808c-4778f17535ce","block_type":"box","text":"PRICING OF SHARES","page_number":160,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"c56b8352-0a3f-4a8a-9072-81870a98b155","block_type":"box","text":"Determination of Net Asset Value","page_number":160,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"51dc3be1-951e-41de-83ef-16309144af08","block_type":"box","text":"Valuation of Shares.","page_number":160,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"ac0410bb-bd41-47d3-8a04-7aa067760f46","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":160,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"421de87a-3ec7-4d79-b803-91475fa865b6","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":160,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"2c9e2c70-5331-4aee-85f9-85b21167e4f7","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":160,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"22edd42c-2aa1-4270-b68d-4d02eba9b8c7","block_type":"box","text":"Equity Investments.","page_number":160,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"fdbc4d9a-7fb6-46f4-a40c-acc6be55202b","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":160,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"24e690f0-b294-415a-b486-5607df0148c8","block_type":"box","text":"e.g.","page_number":160,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"85e91f02-954f-4e6e-873e-e5656ae17743","block_type":"box","text":", NYSE), on separate","page_number":160,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"455e3355-8ebe-4e72-8187-0bd7d4bef533","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":160,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"2f3830b8-fef7-4241-9684-73e474383246","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":160,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"069c1f38-df89-4dd2-ad54-f15e5b898c2f","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":160,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"318873a7-4d19-48a1-abda-50e7c7d993ef","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":160,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"acebd7e5-899c-4f69-9658-b9e9a2adfd63","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":160,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"60903e41-a2f1-4a8f-91f2-c1252a1cdc45","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":160,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"3557f1a4-705a-4df4-8b2a-c3c43d3efbc9","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":160,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"8bc43ef9-18a4-48be-b077-5837dfcb2951","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":160,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"089cee6c-adbc-4b42-975e-95ba9e7a3180","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":160,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"e2c051aa-9f27-4099-8fb4-7c43d4b42c8c","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":160,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"d953f3a4-b9dd-4a2e-b969-5c40d696dbd6","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":160,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"36592b4d-97fb-4da6-a43c-50b103001434","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":160,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"422cf0fd-d1b9-4f66-b430-3cfe75d23219","block_type":"box","text":"defined below).","page_number":160,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"50e72acf-748e-4e07-bd9c-d1cc6a678c20","block_type":"box","text":"Fixed-Income Investments.","page_number":160,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"d659e55d-94b2-4479-902f-2987f2e501d2","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":160,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"890f4b9a-4d1a-4a4e-b3e4-02e2d6110dc5","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":160,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"d984a26e-81e7-42d4-8f16-7851202e456f","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":160,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"2b7b4f49-1530-4936-9349-7a903fabd8d3","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":160,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"58f1b1f8-c00d-4ad1-b0f0-b2ae62c4364c","block_type":"box","text":"e.g.","page_number":160,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"bde15f96-f7b0-41ed-8211-91253f7d1a10","block_type":"box","text":", recent representative bids and offers), credit","page_number":160,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"442ffbb3-1d36-41ea-8ba5-94593d9e782c","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":160,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"5fc20f12-c9d8-4b1f-a7a2-9a900d0d22e9","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":160,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"616f2b37-8b63-4487-8f26-74ab37b2eadd","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":160,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"ed24c832-5df4-4527-97b8-f7dc03dae115","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":160,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"a5db2b27-1122-496c-a8ee-9531a6074a90","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":160,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"4711444c-ab64-4f9b-90b1-ed9f1c9893b5","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":160,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"1af4cc28-b3c5-4f2f-a87b-feeddc9b5648","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":160,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"4fb491d2-3827-4cbc-94b3-aecef64b4a4e","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":160,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"d9f028c0-dad7-4709-8b25-2c95188cc405","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":160,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"9d248656-fb6f-48c8-b24b-e2febcbe3d83","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":160,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"77145b36-d086-42ad-aff1-09837a7e31f5","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":160,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"a8715cfb-fb41-4850-a70f-cc8e8f8b4065","block_type":"box","text":"attributes of the tranche.","page_number":160,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"336ff199-f49f-4d29-8bc5-afc45b32dd3b","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":160,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"7f149429-37c3-42a6-8216-782c1cd40a7a","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":160,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"f5752fd8-23e4-4109-89e9-438c6353eb48","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":160,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"0bdca629-2563-4d02-a49f-da6975f9d4f1","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":160,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"a077fd84-a5eb-43e1-8672-80035781e1dd","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":160,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"e95ed582-937a-41ba-b6b7-cb11be3fec1b","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":160,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"63f3f739-fdcc-4fb4-a3c9-0ede4d04ec77","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":160,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"3f672d9a-b6d3-4ef0-bbcf-64d4631129fd","block_type":"box","text":"II-122","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"aadcceb9-90f8-4007-a9ac-a64cba3a2966","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e3f612db-1e92-4f83-98b8-3656736ca9e4","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":161,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"cfec443a-6df1-495f-abeb-38a1338f8691","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":161,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"aa4aeb3d-c8a6-4417-aca2-07cc0c1411e8","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":161,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"d34b61ec-cc16-4f11-9be7-82b8bddf5f39","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":161,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"9a0880bb-1176-4026-9fad-070d8a7ba3a6","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":161,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"43a642e7-5348-42ca-9a22-551826ee742c","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":161,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"c2f261a2-4ec8-4f03-a78e-38356d2c6077","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":161,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"b1b03a43-d918-4d6f-9ffb-e9dda117b17a","block_type":"box","text":"Underlying Funds.","page_number":161,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"547616d6-4ca6-4dad-8094-377ca0934737","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":161,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"9e8f0a99-934a-4548-83ba-3acad32c2608","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":161,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"46da72b2-9ca7-4a9a-a0c2-1c3efc036581","block_type":"box","text":"at their most recent closing price.","page_number":161,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"25ad1ab8-1bdd-4d47-b52d-1a36ef813b3f","block_type":"box","text":"General Valuation Information.","page_number":161,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"ae15325b-ff33-4012-be34-b539174bfca0","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":161,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"6dae51b0-486e-4bd0-8491-ad1a70c9179f","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":161,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"8056e5fc-1c0f-4576-9237-eca5a64f29e9","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":161,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"435bd2ab-fb78-477d-971a-e7664f847be9","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":161,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"df9277ba-224d-4f98-881a-642a837a9ec3","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":161,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"37efd041-a854-4c6e-8530-c9a2d17f8976","block_type":"box","text":"the revision.","page_number":161,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"53bc3499-187a-4fee-878e-e71784ea0b09","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":161,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"8d859a65-2530-472e-b78e-e0018b9a8b1c","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":161,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"701822a2-15c9-4b7e-9599-24e884f14855","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":161,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"f2c05002-1060-4090-8674-bca0c8b42866","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":161,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"8b24f1c5-c1c3-40f3-90bb-40cff68843a3","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":161,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"dd1160c2-05ca-4fe5-84b9-e61a780c0355","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":161,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"d0300fa7-740e-455e-906a-6b08ca0e0620","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":161,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"e5d8c90c-3c38-493f-af8c-38909e199061","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":161,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"de534460-24cb-4588-bcce-b3d690004ebe","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":161,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"d8dd69d2-a93d-48f0-b202-e67583b9881d","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":161,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"490cb689-e44f-4488-a690-6c6527434d3f","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":161,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"1c1457f8-8942-4c80-86b0-bc8b81f6768a","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":161,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"181ef76d-4796-4f4a-a520-8b8212257af5","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":161,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"a36a2c3a-6246-4f4b-bfc3-4eca0139fbb3","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":161,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"37097544-5348-4bea-b9f8-accd6fcc940b","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":161,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"9965482a-b9df-4e29-8e67-08fdc299e449","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":161,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"bfe0b3f9-024c-413f-bbee-ce61830c8f88","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":161,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"1584688b-9ff3-4d3c-befe-2d98f858bf16","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":161,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"6a60d4cc-8355-4a22-884b-c6e01bb874f3","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":161,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"17d95173-99a4-4ef8-b300-c5a654a7aaaf","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":161,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"0da62875-0503-4b15-ac54-f4d9081d4254","block_type":"box","text":"Fair Value.","page_number":161,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"aa087e78-9857-48fd-a06e-e97fbaf3f670","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":161,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"b685fa9e-7ef4-4475-a525-cfa3eef13f8a","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":161,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"0217bd10-90a0-4f7c-948f-fa7f6ac8b592","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":161,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"075acb36-d7f3-4398-9b4e-0235a4045662","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":161,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"c4034eaf-7d17-44ee-838a-3ffb03558cd4","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":161,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"8e1d57fc-aff2-4236-b402-e83df5bf174c","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":161,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"769d265a-370c-44f1-ad13-a3489e5c1b93","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":161,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"0a538328-14a8-4d1b-8df8-92745f283a33","block_type":"box","text":"(","page_number":161,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"77613ae8-6ea9-419a-9dec-5f81e4c876b5","block_type":"box","text":"e.g.","page_number":161,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"5b0e2abd-36f0-40b2-87b6-eba8ef216adb","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":161,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"e2ae7073-02b7-4e7c-9108-97032bf1c8a7","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":161,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"59281848-733d-4df2-b482-0c7c605e2640","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":161,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"991ea9ff-2793-47ac-8449-44d7c6438294","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":161,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"f6d0b25c-bc69-4132-8956-893585c8ec6d","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":161,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"b1a4c404-5c5d-417a-89ba-b188d722c271","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":161,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"65ef271b-b092-41bc-904a-aaa9e4724da5","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":161,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"c448839b-0c0c-4df5-94cb-79bb737a6bdc","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":161,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"f72835c4-b8ed-47ca-8e42-147b24ca5fe4","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":161,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"a9fe122c-4db1-4af1-93e6-7df862f2009d","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":161,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"e00765d0-ab8c-429c-9d35-47f5aef251b7","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":161,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"4cde264b-ab79-42df-8a77-4cf263771ae4","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":161,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"9e7966da-6a39-427b-8fc7-30da8568ff90","block_type":"box","text":"II-123","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cccf82ab-7d7b-4680-baf7-232826401254","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e1b76671-9d3d-4fe0-980f-320c64296cdd","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":162,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"7ade9d15-e3dc-4815-a690-f0fc1f40d7d0","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":162,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"3e2cefed-9a27-4cb0-ba9e-0276971b37e5","block_type":"box","text":"pricing time.","page_number":162,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"53be8c45-8714-4ea1-ba94-85e1b6aefb4f","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":162,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"b2af16ec-4c08-4157-aa1f-53e9acce3e6c","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":162,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"7b0837b1-f2b9-4ff3-a20f-63c15064712a","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":162,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"f9a8ce16-5843-42b5-a93c-a67e283a11f3","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":162,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"ed21a793-ecb2-41c5-9f01-e3160b7c818c","block_type":"box","text":"assets and liabilities of the Funds.","page_number":162,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"d4a9b2a7-8db8-4918-af2b-7aeeac4de0dc","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":162,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"ada8432a-64dc-4a6d-91f3-dc611a57705e","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":162,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"0855cac4-952d-4567-8488-0f6c925124b7","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":162,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"feb6b5b7-bb8e-44ce-ac24-0ede5d350619","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":162,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"7fe3140e-d78a-4595-974b-e45e256abb0e","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":162,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"8be5433a-f7bd-42cd-91c2-d718822dc25c","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":162,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"3159087a-a453-4b26-96c7-d4f440ea53c1","block_type":"box","text":"valuation models.","page_number":162,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"058a5af2-99fe-4295-9d2a-9170fc888757","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":162,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"cc25e2a3-ee55-4bcd-bcf1-68a87ba362a7","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":162,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"f1f02acb-0718-4c1a-ab8e-f760087d0fc2","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":162,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"70babd55-5608-47a1-8456-e5d8d1c562f1","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":162,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"332517ba-af5d-41aa-84d5-5f6afb143884","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":162,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"d875eadb-2118-41d9-a556-475a93fc2262","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":162,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"cf7f9a89-ccae-45e4-926a-7bc8e9f11605","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":162,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"9247e633-f337-4789-a3cf-0a06791e8e4e","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":162,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"7b6556e8-6e01-4ce5-91ef-f4cace32312c","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":162,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"8dba3718-8352-47c8-9908-33d73f7f3d76","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":162,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"ba311df7-7cd0-420f-8c6d-e19b5e5f1790","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":162,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"c26f387b-a9b5-4c67-887b-25ccc33f2747","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":162,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"2e4d62c3-fd2d-45f2-a007-7b176733c9a3","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":162,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"9a54a3f5-55a9-4745-a27d-3989e30ca389","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":162,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"c88ea0bb-c3c5-4f75-a4d7-fae7191bbe59","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":162,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"87f4a541-a457-474d-9f57-cfef49aec985","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":162,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"66ca4fe5-dc66-4349-8ce7-89592cdcfd1e","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":162,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"e151ee6e-1acf-45c7-a7c0-ed0c1ff8da31","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":162,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"bcb5754f-51f7-4042-a5b8-82105f713557","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":162,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"a9e6916a-5cbd-4c58-8e21-34f41c08715d","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":162,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"8b872b97-0abf-456b-b09f-585c2b549aa3","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":162,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"71923ef7-b784-440f-9f6e-a2fdd4f9fcbe","block_type":"box","text":"par ty determination of fair market value.","page_number":162,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"2af5b458-bfd7-4992-b542-8eeb9888b618","block_type":"box","text":"Computation of Offering Price Per Share","page_number":162,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"aaa98fa3-d930-4510-b12f-815e5e96df1d","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":162,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"c4cdacdf-c8a7-41fb-aca2-7b1388718353","block_type":"box","text":"the offering price for shares of your Fund.","page_number":162,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"81e25199-6e77-4c72-8378-ef4e32e727c5","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":162,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"e5d16a56-6ea3-448f-9e4f-a5b2e43c2f64","block_type":"box","text":"Transactions in Portfolio Securities","page_number":162,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"f45bf778-ce5b-4f52-bfcd-defdbd298449","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":162,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"4b5229b2-cca6-418e-8d78-a9cacc7a7407","block_type":"box","text":"a Fund’s por tfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":162,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"dfa62569-605f-40f9-a75f-06b9857bdf6a","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":162,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"3c3b946e-3d63-48eb-ae2d-d5a561d8a74c","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":162,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"c4a152d4-7fc1-4e3d-845f-a6a2e973d11e","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":162,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"c70a708f-e30d-4158-9988-c1cccb3ad493","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":162,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"e8faf633-8b03-44ac-bcd5-78f872bb5dc4","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":162,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"e531a6f4-eda4-4c36-9e2a-aef4d9132004","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":162,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"e79b1a94-787d-406c-b42a-f414492ad727","block_type":"box","text":"II-124","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"de67d5ea-ca0e-4874-9815-5ff2e2c7d07f","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"09213ab4-c038-4adc-ad69-2318923fe5de","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":163,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"a655df7b-f282-4cc4-bd29-b72cd3c3eee3","block_type":"box","text":"reasonable in relation to the services provided.","page_number":163,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"14355974-cb8e-46ef-a557-d5247c1adc4f","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":163,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"082623df-9bc3-4535-81c2-be57eda709d6","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":163,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"875f3ed1-2b75-48d6-941b-7b98308caff1","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":163,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"07acfd75-aaa3-4904-9398-38ee6a096c91","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":163,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"0dbd7f6a-3f75-4795-b326-ef2583f30f95","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":163,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"151026b5-1085-4c8c-9050-deaeb1ef49b5","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":163,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"1b200ad4-27c7-4450-847b-c173c0339788","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":163,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"f59627ba-3cd1-4407-8d14-ff0ebff6752b","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":163,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"4bc218ac-1bb4-46aa-9168-0d6a990b2e6a","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":163,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"baaa4f19-949c-41b5-8ac7-f84a11ae4ead","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":163,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"fddbc201-879b-40cb-8cf6-31de39465c9a","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":163,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"744e41d6-75e8-43ec-90ab-8549d6d449e2","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":163,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"e4b872a2-01ea-4db2-a132-c5fff7260964","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":163,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"c16abee6-1095-4d1b-935a-13af07d0e0f4","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":163,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"d3fe205e-8cb2-42a2-a1f2-d6d4b57b8993","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":163,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"0f8bfa8b-8e91-443e-ac46-8183c96ffce6","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":163,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"09a9f305-c607-47f2-ac22-60b3e7b292aa","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":163,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"8643a5c8-bbde-4f97-a5f2-3ef51ce1c113","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":163,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"eaeee9d4-270b-4639-bed6-568ef50e2aeb","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":163,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"561b35d4-77be-4256-9da9-1036016e1e05","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":163,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"67112375-749d-49a1-b274-92bbcc3d2a18","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":163,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"2cddaee6-0d6c-477d-b313-fca3fed1d1cb","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":163,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"ef9694e6-fc65-4e61-9e8c-1677b72b89de","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":163,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"15e9aa3e-da2d-4668-aa02-dbefe400d35f","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":163,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"63f45da4-2c13-4cae-9b89-7a3412b20ea4","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":163,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"1f897e24-0410-4497-9f0a-b8477c6b3626","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":163,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"3e0b3520-da00-4799-bf42-834bef25d0b9","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":163,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"f3558574-2e30-462e-bbf0-98e44904caaa","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":163,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"300152ef-267d-49e6-a3e1-f472a39447af","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Cer tain Funds","page_number":163,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"e42edd54-9f2a-49be-9ced-4fcbec1231f3","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":163,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"b6a4c8bc-2cd0-4024-ac7a-0a77882055d2","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":163,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"82e7c07c-bb7a-4a94-825c-4201cdd6c3a5","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":163,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"e6079742-bb43-43e6-a29b-ea16f157199d","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":163,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"7c5c8562-f607-4d85-a0dd-3bc6d43a4b23","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":163,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"d0c39c0a-31f9-44d4-949b-c326d1819785","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":163,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"56fe401c-62df-42a2-a9e9-9824244b5451","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":163,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"dc4c498d-19ad-4fda-a23f-521a18d535f5","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":163,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"b7830329-4247-42f8-a509-f24a22396b08","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":163,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"535d6f5d-7b49-45a9-97f3-64224b9e176d","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":163,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"b4ee2f24-63e3-492e-81f4-a8a3b164bcdf","block_type":"box","text":"por tfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":163,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"45bd9fcc-5f9a-421f-a90d-6d653910e83b","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":163,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"14d5254c-4630-4fcd-b1cf-651845cc60da","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":163,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"5f00a4b6-9375-42aa-9f2c-bff37ff6b5b8","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":163,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"f3e840c8-d2de-4b63-a85f-34c751916839","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":163,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"8db5064d-8661-4304-aa72-1d5413ae90c6","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":163,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"92a307a9-3ec7-4b99-8c04-c84e063ed135","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":163,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"15259a15-791c-4d56-8044-3a705d42c617","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":163,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"1ec0e686-405a-4ab0-b229-2015ecd51bdb","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":163,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"52570570-d62f-4e91-aa41-96a0da72cbe9","block_type":"box","text":"par ticular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":163,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"3440334d-2876-48f2-997e-f85bb3e0db66","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":163,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"02770243-8894-452c-9c68-2aa9e8938bed","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":163,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"942a4d33-bc20-4d1a-9565-25506d3fa83e","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":163,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"d483df7f-8c56-46a6-b9f2-cbdc8af4636a","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":163,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"97afa7b3-bfed-4079-a108-1cbb83e6d812","block_type":"box","text":"II-125","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3301f59a-b3d6-493a-84b5-c6700dc6312a","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"69846c0e-38f7-4d71-bddd-1660c7d7eeab","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":164,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"43c4990d-9b9b-41b1-bb80-f3cf60e1f130","block_type":"box","text":"managed por tfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":164,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"d764f29d-932c-4839-87c9-4f81d4a68d69","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":164,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"65398d3e-0df1-4954-8b9d-f25989b74dc0","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":164,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"4d02264c-1f02-4571-92b7-d671abecc2fe","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":164,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"5b7f84d2-180f-4dcc-bc65-ca955fd65b21","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":164,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"f5ee8dfc-793c-4fb0-84fc-42c086c8095b","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":164,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"a46cfe9b-e98c-4bf1-b41c-c587cf29aeaa","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":164,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"7b077366-fc94-40d3-9bd0-87b7a80ea5e8","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":164,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"839ab68f-7531-4d1a-9948-0e544f176fa9","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":164,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"338460bd-6e78-4fa3-8d0a-1403cd81f0cf","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":164,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"8b884dab-307c-4781-8a07-57e37fa7f00b","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":164,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"5836709d-e9f0-49d7-8aa7-72c74e9af7fa","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":164,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"a23d0bdf-428b-4772-ad79-8441830112cd","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":164,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"6351eecf-dbfd-4d34-8916-bf5d724d742e","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":164,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"d730c028-4819-4fb9-8a96-53e438013194","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":164,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"99e1b4bb-e63a-439d-9c4e-dc4f83492c4b","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":164,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"d4f0b661-9c4e-4624-a5ae-75124b3002b0","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":164,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"8d2de278-fe8c-448d-b176-c5d249775bbf","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":164,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"a76f0183-4ee8-4923-ba32-393513b88816","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":164,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"a49137d2-ae8d-48f7-9d1a-ead08768245f","block_type":"box","text":"brokerage.","page_number":164,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"4b2a76e9-b842-439c-80ff-d1b3560cc6ae","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":164,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"149a0473-89d7-4750-a6a1-aafb2e27d5ae","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":164,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"5573d2cf-7364-44d4-bb45-634104d75876","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":164,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"2cd008bc-b1d8-4a1e-8758-2900ce71122e","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":164,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"401e07ec-95c5-4ce8-b2ad-9d9c65cfda05","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":164,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"0ee609d0-1d44-4654-8ebf-85c3c800eba8","block_type":"box","text":"Section 28(e).","page_number":164,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"0c78592e-2fb4-4e6d-8f0a-d3fcef9e6942","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":164,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"9615e156-507b-471d-9747-4430b3566289","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":164,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"50a3d5d4-e44b-4ded-886b-5dce4aa4cb1d","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":164,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"ba6382d8-f526-4691-b78d-ae4a649ccf3a","block_type":"box","text":"execute transactions for those mutual funds.","page_number":164,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"748d1b55-ab43-4426-b185-2d427a461f0f","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":164,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"eda8d396-465f-4edb-ba85-3f13309c4779","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":164,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"a6301ac8-fb2b-4647-b6df-5bba514f99c7","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":164,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"3bbe28a9-d4b8-4965-8679-1086c67c6df1","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":164,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"fcaaf091-07fb-4b78-b5d2-3808d478b295","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":164,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"f3b81686-556c-4cd3-afbb-e8238b9e8f8b","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":164,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"eb88ba56-5048-40cd-bebf-0e1299ca68a3","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":164,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"4fecad4a-0878-4ed7-aa60-cde1706c0580","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":164,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"4a73ba15-0be7-4a06-9149-cff2e2f7fd5a","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":164,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"24f3e514-c715-458e-b3d1-a333f51239f6","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":164,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"09321733-6eae-49cd-a84c-bbcf29d348d7","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":164,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"75d97fe9-fdd4-4399-9a78-992edfc92165","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":164,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"7075f75a-4952-4326-acc6-b4758c0f4c37","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":164,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"82e47fab-9f8d-4686-ad62-0c7c731cbb27","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":164,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"ccdc142b-2c16-431b-93fe-6cae0e8c4a1a","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":164,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"cca4ed01-687d-4fe7-babb-cd6555691796","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":164,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"8b96ee2d-a14d-4195-bdcc-250573b7e7be","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":164,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"499ac7ba-137e-4e9b-835e-4564c532af2e","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":164,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"9d074823-1e4e-4f6b-990e-a66a9740df77","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":164,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"9a0801b1-c0e6-4b6c-9d6d-f2212038f904","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":164,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"51e2f958-aa70-4122-b03e-d5e49ab7a0e2","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":164,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"a1e4cc97-abc4-4295-912d-985c8302e0af","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":164,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"b88d4069-f4be-4570-ad80-e643332941c1","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":164,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"8a83076f-4013-4282-a24e-663c36ea3105","block_type":"box","text":"II-126","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fab7c5df-8db2-42c9-8055-9a7276f4e6e7","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ff045128-3b5d-4ae2-9b6e-1a47be484b4a","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":165,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"16406701-4a7c-41ef-8f0b-aeaf13c0e98b","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":165,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"e18c2b1d-b935-46ac-bebf-59becb0763ce","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":165,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"84ac8043-08ef-486b-a36f-0d644f11462f","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":165,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"7db44b13-33be-447c-8f99-3ec2d8c0d883","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":165,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"39ee7458-304c-4042-869c-b69e49e02afc","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":165,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"cc0511d4-abf1-4fce-bf68-8af4c6f17153","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":165,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"63bdc075-21ae-4672-8a38-d4f1ebdd6def","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":165,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"d7f8efbb-6a99-4da8-afb3-7fb1ab1ca083","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":165,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"5d41b440-0bf6-4fa3-a159-ac25b33242e2","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":165,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"fa515363-4a65-4c0a-8576-cb860adb69db","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":165,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"de558fb3-d657-448d-84e9-542798f4277c","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":165,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"267de018-49d8-4b1b-bc00-09443fc186b0","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":165,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"9124a7c6-e240-4fa9-84d8-672fe45fe82f","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":165,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"f3f84252-5972-408d-80d6-7a515e9b83d6","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":165,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"9e159d05-8479-46f0-b3df-ba6e6c32c586","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":165,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"603a2b8b-8c7f-4a92-9837-1d3e4fc3b857","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":165,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"4a36f8b5-46d6-4048-a00b-b998067fb586","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":165,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"fb30272c-37f0-4430-9cad-70dfc9ca6f6a","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":165,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"c081e930-b94b-41d1-8f76-2ed72e83221f","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":165,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"d2ddd995-9a50-46e5-95ff-c0f491f5e452","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":165,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"02ce56db-02d9-4446-954c-11a814edcc9c","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":165,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"5d9f7004-07e6-46a1-9571-10cb216abbae","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":165,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"8210337a-3d3b-4f88-ab53-96c1f157688b","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":165,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"608a698e-faa9-4f9f-9e96-37b4edf4b8da","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":165,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"a640e241-9ed0-4d6c-8520-36cdfe374a76","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":165,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"2a9a47ae-c5bb-42b5-9cd4-d3f3779097ea","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":165,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"e42b499b-0773-4e8d-8365-829605517506","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":165,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"8f539d58-76f9-42d6-9f6d-8da559b31eba","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":165,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"53ce50be-f597-4d25-8456-73877fe039f8","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":165,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"d56a9020-12b6-4e20-a49c-855eb6f382bc","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":165,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"ba732c40-ccdb-4354-aba6-0eadb99a116b","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":165,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"d797feed-7705-4d7a-885d-e0bc3706fdb3","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":165,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"8b7ff3f9-3694-408e-b108-f19c9ca026f8","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":165,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"933225d3-2fe1-4ba2-a05e-1c456cca3d66","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":165,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"57b39e6f-9ee9-4a12-9e35-f304b3a4645c","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":165,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"c74f659f-0fce-4854-8be3-4d4e8dace50b","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":165,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"56459e4f-af06-4903-a0b5-7f856d428785","block_type":"box","text":"accounts and compliance constraints.","page_number":165,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"835075e3-792d-4c7f-b2ff-d5eecd7bd68d","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":165,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"4fb872d5-e95a-402c-990c-0fc1731dd796","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":165,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"2a9be7b4-5232-47e9-b68c-690e4d8956e6","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":165,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"a0bc0cf2-2436-4d8b-9632-96beb828eaf6","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":165,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"130d3c14-eb8f-465d-8259-4aa5e4dc2a58","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":165,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"28c85110-83ee-4640-9fe9-ed79fb067b7a","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":165,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"5ae84e07-a37e-409b-a06d-157e5ceb5dff","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":165,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"c5346b42-a75a-429a-9c42-81307a456570","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":165,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"0695b02c-94fc-4e97-be93-7e31bc5261d7","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":165,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"6c47d5b2-862e-4086-964d-704c2f52249d","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":165,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"a34531e6-3c05-4236-b9df-9941d6220285","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":165,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"fc35b8d3-b742-4223-b98a-e5cf376e0ebd","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":165,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"69daa623-0bfc-4c8b-a93e-02db7e80b496","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":165,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"f7aa8039-32ae-46a4-96ac-864677733433","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":165,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"f86d5c9b-b33e-4db3-b05b-66fcc4b1e347","block_type":"box","text":"clients may be used as well.","page_number":165,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"a8ac6b61-70ae-4900-b308-4891cc4b274c","block_type":"box","text":"II-127","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ca4a5f69-c708-44c2-b0d3-c4b8a8107e8c","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d3927d7e-f6e7-40b7-8fd1-47f032ecb5e7","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":166,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"bb03bc87-dc3d-4dc1-9ad1-1f269436fa26","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":166,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"96f5c9e3-30c2-4bfd-a915-f42f3033ace4","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":166,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"f788627c-5d75-4e59-a4ff-ebc4543a957b","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":166,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"3c573e26-d5b6-4adb-b567-59ecdc1f8168","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":166,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"8310fdfa-91ad-48f7-b75f-7f5f4dfa3d12","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":166,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"7262f4d5-1d1f-4ca2-b193-782fc7de3af2","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":166,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"d282ef2d-1f44-41d1-bcb3-d929cb79f68d","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":166,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"ba80d9db-86fb-44e6-9349-b9f3bfa06216","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":166,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"caf1ab47-72b5-4fc9-9f5e-adc98f8dc22a","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":166,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"a2ff1eaf-bfe1-4161-bdab-d653b8a6c839","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":166,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"f385e8e4-e7f7-4206-aa27-e585cb8efbc4","block_type":"box","text":"In cer tain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":166,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"2f780e80-c2f3-4d11-9338-dfebc3502085","block_type":"box","text":"aggregate cer tain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":166,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"c3551355-eb93-475d-ac59-3efad285b2bf","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":166,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"4e5f2dc5-9382-4e9c-90ad-588343e58044","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":166,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"fa69ce57-0a42-4eec-8a10-aff338d55706","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":166,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"e0fad548-289e-4886-abca-e403610de8ec","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":166,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"1cf57ca3-3521-4450-bd20-8a38ad2fb08a","block_type":"box","text":"par ticular por tfolio manager or management team is filled at several different prices through multiple trades, all","page_number":166,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"479335a1-3b91-428b-94f7-ce20fa815463","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":166,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"436491ab-457e-4748-be06-64bf7a89f77c","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":166,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"0a24fb8a-7ce0-456e-a076-3b80605043c5","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":166,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"6f397acc-785a-4a51-90d0-74f4c95424f7","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":166,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"b9e9dcf9-9bb7-4463-a04d-5d7699a601fb","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":166,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"dabb4c82-460d-4369-8f71-a2cdb4f5d2a4","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":166,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"0359181d-d2cc-4efe-9bb2-7395ab3671f4","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":166,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"af00670a-c8d5-474d-9fde-e4b87ccf81d6","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":166,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"5e343be1-344a-48d3-bbbc-331eade7a788","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":166,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"15287c1e-40f2-472e-ae6d-76057b2dd85f","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":166,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"8086cf5b-e486-4945-89d2-202bba098204","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":166,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"89130a0c-9566-43ff-9176-b42e978b3b9a","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":166,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"b9b76d94-4510-4e07-8611-4f48e5be6301","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":166,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"328e0b80-1b78-4e0f-9f73-527eb313acef","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":166,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"3df5a219-b851-4300-9e5c-34105a1f9694","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":166,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"a8088f30-105f-493f-92ac-2f141d510108","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":166,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"edf9df3f-18be-4772-9489-5d07c122b5ab","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":166,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"0b391f14-1348-4a13-aeff-f048135fe909","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":166,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"37be0ada-aba0-466b-87b9-77ff0b4dc57d","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":166,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"68a4bc43-b1cb-4fc7-bc85-4167ff06f4a4","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":166,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"36d870aa-3b12-4a6d-bc06-a6a2d2d427a7","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":166,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"26e5c40f-a01f-4ed3-a373-faaeff963ba0","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":166,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"bdf5f140-a3a7-417c-b3e3-e7abf9f7e981","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":166,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"87aac007-3d3b-44d3-8f73-f7d02e016cd4","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":166,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"ca1851a9-815c-4eb4-95eb-41f0545ce9f4","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":166,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"1d480017-0506-43d3-a39c-5cc5f39efa8c","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":166,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"56329408-fef8-41ca-a3bc-f3532110a17b","block_type":"box","text":"Portfolio Turnover","page_number":166,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"6e31eab4-d10e-460f-9414-6ca6d925c741","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":166,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"37c5f625-3078-4272-af1b-6cca7c7df25b","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":166,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"b7c55e35-dd78-4781-b9c7-727c2b342999","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":166,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"5541e72f-d4f0-4a67-920c-5362f48d79ed","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":166,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"1590e59b-f42d-4ce1-8dc7-3b3e944fcfb4","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":166,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"c773d006-9568-4d4e-8d42-86f4619a224e","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":166,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"e107c560-fe94-4b68-94ad-0e7f1fc154cb","block_type":"box","text":"II-128","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"02b7afd1-610e-4a7b-9de6-556e663671a2","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6b3de326-8fb6-41fb-b0b5-e0d58529d688","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":167,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"6fc2f94b-4c53-4b4e-bd43-68275380799d","block_type":"box","text":"Dividends","page_number":167,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"a2584cf0-1c0f-439f-9764-8aa263ad8355","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":167,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"b029af5d-47b3-4693-8ecf-3ea708806331","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":167,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"9d4e1f58-e1bc-4172-867c-957b35535b23","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":167,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"73009045-b4a6-42ba-aced-736edd01b95d","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":167,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"8d848dab-a40c-43cc-a909-5ba22caee932","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":167,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"6c204d2f-ca86-4350-9211-76660fdddd6c","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":167,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"47f92008-57c1-438b-bfaa-c91dd4d4f6ae","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":167,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"deb5bc99-0d12-4dd7-b2b5-2a83447c91c9","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":167,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"d5647af6-c94a-4a8d-8674-2b2dc4b4aa29","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":167,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"fde528f5-a968-41fb-b4ad-56f8923ad75d","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":167,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"07a8018e-247d-4344-ba4b-dd57ebe70575","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":167,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"c2b955af-0be9-4b21-8dc8-81d81d04e83e","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":167,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"591a1671-163a-4661-b776-7efba570b57c","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":167,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"5129a9dc-be7a-4c38-8962-9ee35daaf9aa","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":167,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"9f11250c-4374-40b5-a123-84cbbad45247","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":167,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"80273959-a6e1-4bd5-89ac-cb8149e9f25e","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":167,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"5a9f1a19-09dd-4f74-93dd-d6623efd81c9","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":167,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"a0394813-c3f9-4bc4-9f28-28c830e32688","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":167,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"534804db-76b4-45a2-9639-c12d786c481c","block_type":"box","text":"Taxes","page_number":167,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"e2751776-598d-4adf-8a1d-d1abfbbe5bdb","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":167,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"2143901b-5c94-408d-b444-846f02d7dc0b","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":167,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"3b0a491b-a730-423a-af2a-af8fd803cd98","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":167,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"87b4ec0c-f515-487b-aa4f-368d4638bce7","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":167,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"76a7ad1e-4a90-4e3d-a6a3-b5e497c6eb50","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":167,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"95226f7d-82a1-4ddb-911a-97032e242a80","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":167,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"41456843-3c65-4fcf-8345-9aad6bc6de1f","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":167,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"a6520f95-5c44-480c-afbc-8c3421e142b2","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":167,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"46f9b22c-8fed-47b1-accf-d62a58c27328","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":167,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"e1711c4e-1fb4-4f22-87c7-984c0d7b426d","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":167,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"05c9ec24-86a9-446f-b77d-87911fe7669d","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":167,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"300910c8-2dc4-43ce-97c5-59b81ff87b56","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":167,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"7129c0d0-e32b-471b-a400-e5444bfae6d4","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":167,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"bc264cb2-619a-46a5-8fb3-1ecee747369a","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":167,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"5d220af4-74f4-41c3-aa59-1da528a7e7ba","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":167,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"a07582cd-812c-4359-9f77-714586c12860","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":167,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"dbe5af24-2010-4700-833d-6571c52f68c6","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":167,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"d71b673e-3497-443b-a292-dfc0fbd9a246","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":167,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"a80c9844-0020-4e52-863a-a0867f00bcf0","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":167,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"a1ccd43b-2e3b-4fda-b647-cf80c49178f0","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":167,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"be9ed5d7-ca69-4fd9-8050-0b867fa8a2e9","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":167,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"dda1f9ac-74d0-4c58-b268-42628d7f1c27","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":167,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"1930abcb-75cc-4bde-ad7b-3ca6930cf635","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":167,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"78ed6095-ec67-483f-91a4-9f820b5cb71b","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":167,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"b0ad989b-59ad-4891-a027-967841016b8d","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":167,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"b16b69b8-9908-4935-83a5-d1369c169f30","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":167,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"5cec296e-f703-483b-921b-4b17567373c4","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":167,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"e26ae893-aa2b-4e74-8426-bbf4eb985ef8","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":167,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"608c6fe2-937c-442b-98d5-5031602780a4","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":167,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"1fddc9c9-f75d-4686-8999-a75704884594","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":167,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"5653ffc8-4ea9-4d14-906c-e852a6f2bc64","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":167,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"93ddc749-a3ce-4e4e-839a-8c283415eb53","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":167,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"53c6beb2-8ac9-4c14-93c1-69085a40d973","block_type":"box","text":"II-129","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"435aa788-4b31-4db4-a9b0-1fb8bba4373b","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"85c60387-607f-4dbd-970c-e07a4c176758","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":168,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"87158b05-0d2c-4726-ac07-75335c26e75c","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":168,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"85a20540-53db-43c0-875e-915e05084d62","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":168,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"33f00226-573c-4db2-a55a-33a8e2eaa56b","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":168,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"629e8cac-e628-483f-a22e-70ae1cd51755","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":168,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"711b81c2-6759-4c2f-9054-7ab4c93655cb","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":168,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"76d84eb3-3153-4fea-afa2-1bf1d11a8cd8","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":168,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"c741d506-f5f5-4d46-b37c-fbc3d330b0d6","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":168,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"4b600223-467b-4bf2-98d3-0c80be6fad0f","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":168,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"c5e58a8e-e365-4f30-860c-5449402732e2","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":168,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"bef6d420-873c-4b0f-99e8-48dd4c0724ab","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":168,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"4309cc93-ce60-488b-8bcf-777166005381","block_type":"box","text":"limitation.","page_number":168,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"3b5944d3-a9fd-4468-8ffd-2e05d0a6b0e5","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":168,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"f784593d-75a9-4f51-bcf4-e19156a4fa5e","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":168,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"82d0f439-609e-476c-b446-35b5a8f53050","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":168,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"bd33de3d-086d-4928-965e-f444fb8e74eb","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":168,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"bc14cb12-aa7a-4493-9c50-49635f3eec10","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":168,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"5dcf7cb4-deb5-4bd0-8cae-0420a4d1b898","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":168,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"d06647c7-874f-4ec2-838c-376cfb29f575","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":168,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"6911eaf1-4250-45b5-93c0-d777f6e44d4f","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":168,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"264ca50e-a782-44b5-bebe-d1ebc6e9b967","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":168,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"8e23c853-c712-4d7c-b90d-82b15328bfc0","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":168,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"9bff664c-927b-4ead-9005-64de06af00e1","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":168,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"bd229f84-0791-4e02-ab58-8778e247ad46","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":168,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"9f4e6839-065e-4fd6-a309-e3243227449d","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":168,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"fcf20b2e-9d53-4412-bbed-9e02eb4fded6","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":168,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"2672408f-d0cd-4cb4-8a79-ed229a3f95f5","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":168,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"04b4a12e-23a4-41bc-a06e-9352f0b65b33","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":168,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"af7ac440-c68e-4917-806d-49e7ce0360ac","block_type":"box","text":"tax purposes and shor t-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":168,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"7b38e589-1b17-4c8d-96bf-5593a8de5fed","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":168,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"b5857594-e877-4820-b580-c4d033c0a0ac","block_type":"box","text":"constitute “qualified dividend income.”","page_number":168,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"f69e5bb9-ce9e-4765-8c10-87804a6ac203","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":168,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"30a8cb33-c552-4a80-98d0-6d0d8e1e7457","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":168,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"c4a31f91-709d-41e1-8b10-2d2f7189758e","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":168,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"fe6805bf-b31a-407d-b06b-7dcb19094d9b","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":168,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"981caadd-39d4-4dae-bfc2-71f349ccbb5c","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":168,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"137b1219-5b98-4f22-8aae-ecad9cc050a6","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":168,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"b35b38ec-277a-4896-91f4-5faa6adde0b9","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":168,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"de0c7f29-ffab-4707-8732-020ba3b89e4b","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":168,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"4700fa91-61ca-499b-a743-54d61d54f751","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":168,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"0536cf33-4d5a-480f-b458-0646cb5ca949","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":168,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"28e19015-ffde-4295-8964-97c7443b5caf","block_type":"box","text":"against their taxes.","page_number":168,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"2dd30a5f-4715-4c12-963d-f9b2a5a3405c","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":168,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"63559764-8acd-4a69-b874-38696e3994d3","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":168,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"2408c50b-e12d-4b8e-ac9a-d36d5c76723c","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":168,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"93997df5-2e42-4bed-ba7a-0d65f82e80f9","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":168,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"958cb34c-c20f-4475-b88b-ad46d25d10f6","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":168,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"0697016d-4ba9-4379-9e19-a3a14df41a1f","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":168,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"1170f42c-959e-464a-9a85-a80a6537ac34","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":168,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"b41c2a6b-e1e3-41a7-9e26-631443cdddda","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":168,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"25dce5f9-ed9d-4dde-adc5-e6d6daa104c1","block_type":"box","text":"dividends received by the shareholder.","page_number":168,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"fd6a5c56-096a-4488-8ab6-f2e57cbcfbb7","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":168,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"e112f6df-6327-42aa-a12e-70737d135151","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":168,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"25e831dd-6990-47af-b713-b77821296e34","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":168,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"538e5ec0-84c1-4d75-a971-8e83681ed576","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":168,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"4ae39d03-6545-46ac-ba69-1f10fe62de46","block_type":"box","text":"II-130","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c72342d3-e0e7-400c-94bc-da37dd78dd41","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cb8f65a1-9d4a-4a25-ae15-91bdebfb4093","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":169,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"119a572a-2af2-481e-b67f-753081d6afb1","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":169,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"1e966dc2-bf0d-4ffe-ad8a-6d10c4b312f6","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":169,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"398a78c2-4450-4741-8134-dbdc70329ffe","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":169,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"8adf7eb0-df88-4bf5-8981-7780444050b6","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":169,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"e18282ef-cf9a-4c5d-a391-19738e307b3a","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":169,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"834713cb-b370-4483-984b-dc65d90fcadb","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":169,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"ea9e5b4b-9a9b-467b-b61f-819bfa260deb","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":169,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"46074f80-a483-4070-9d8b-f4e0272d1a57","block_type":"box","text":"taxable year.","page_number":169,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"d51357ab-f7d4-4ff2-8b5b-32f94022de79","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":169,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"b76df136-eff9-46a5-a2d2-29321e078e3f","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":169,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"67863be4-db29-482b-888c-07cd2764af71","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":169,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"d515ad53-df06-4a4e-b0e9-48d4e5f924c5","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":169,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"37fc9d9f-e8cc-424f-b9f4-e547bef6ddb3","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":169,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"86f35778-16a3-43fd-b4c6-9de026a16a41","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":169,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"910e8c94-ef70-4f1b-8a47-41918254d646","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":169,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"8c0b78cd-1312-42ee-869d-dac11b304e7e","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":169,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"54fe73d5-0619-40db-92df-5f5e0184a514","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":169,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"dfd03c3d-138a-48c2-9797-0cc3ab326ac6","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":169,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"9fb5cf34-92ac-4e20-a66e-a03c30d39d21","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":169,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"c649ab0d-4651-454d-ba7f-3633b030de6b","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":169,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"53e2eb61-8d74-41a9-a69c-74bb957cf6cf","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":169,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"219f85ed-bd3e-4868-8623-1647a87b1c79","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":169,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"ee6228f2-21c8-428b-aba7-a836863d6aa4","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":169,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"6200d290-7652-45f6-8f50-73032dc8b7f4","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":169,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"b1805663-e69d-4af9-b309-53252aa6aca1","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":169,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"8029c1b6-9ce9-4537-958d-0ef666373f60","block_type":"box","text":"special tax rules that apply to their investments.","page_number":169,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"9a7ad4a4-004f-4965-84ac-778f1916eec9","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":169,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"382f8103-6a83-47f4-9952-684e1c1c2490","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":169,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"7acb2592-2d6d-488a-9ba9-34ab7076f77b","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":169,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"a230258d-860b-459c-b4c5-3d81381c78ab","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":169,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"919e0326-a789-4a71-8733-daa755a04fc0","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":169,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"8aa1b008-aed5-4f7b-8b02-b987d24d660f","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":169,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"2052b301-2fe8-40f3-839d-48cb47ac78d1","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":169,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"b42d7ea2-cea4-4b1b-8802-86727550dc48","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":169,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"ab5c076e-3bb6-4ece-b7e5-aefe7cfa015e","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":169,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"d4b5b154-8fa4-4bb0-ab08-92a5cf35c24e","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":169,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"2bfd5c61-46c4-49c0-a907-75dc6f2f940f","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":169,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"f626fd24-875d-4747-9a4d-780dc667d2ec","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":169,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"10a70026-9cc3-44d1-a818-41fc497266c0","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":169,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"007b0a0b-04cd-4a09-b504-e4a41a3b051f","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":169,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"d85c5ebe-0250-4457-b39a-c7aafea2f811","block_type":"box","text":"redemption of such shares.","page_number":169,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"1146e8d5-1447-4efa-b66f-ad25fc940de7","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":169,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"ed30a2af-7cd1-43c8-aa6f-01b98b06f669","block_type":"box","text":"purposes of por tfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":169,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"98346683-3a36-410c-a9d6-2c124025820b","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":169,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"cb9a3e72-b48e-48e9-a4ca-c330400b7e80","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":169,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"2683d8f1-8ac5-4c02-a006-d49ec0f3dc1c","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":169,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"f2faf733-1739-4df3-a186-2c0d575b27ff","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":169,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"f350220e-804b-405e-b16f-a9dd3d71ddcd","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":169,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"7c3cc83b-485e-469d-b474-1eb50c2dad68","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":169,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"fb5d9475-4c24-4b07-9e22-83ee2e2e191c","block_type":"box","text":"Cer tain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":169,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"666c4d56-966d-493e-855c-86f3ae7de9b5","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":169,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"ab25c30e-cf27-45ea-b76d-4e02be49b7b3","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":169,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"ca83c9e7-8555-4d4b-9a88-723f3e69ee23","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":169,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"579993fc-2308-4958-9434-a56f3fc58f26","block_type":"box","text":"II-131","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4da4bdae-4e93-4dd1-b67d-b5a9ab57db54","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e6ad0e33-cab8-4f3c-bc5d-236eb074d1ad","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":170,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"7c2d2e74-5753-4035-b696-fab99b09cdbc","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":170,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"9b4e0d79-251c-456a-98b5-ab55e2df9824","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":170,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"0420a7a3-c5e3-4765-b993-3260b93345c9","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":170,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"6b7ce283-8fcf-45d6-93f6-143a0a7e60ea","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":170,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"b5560783-5b17-4720-9aa8-4420160a5b3a","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":170,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"5d8b9687-b404-4939-ae08-0bdb1d3b124f","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":170,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"1feaf925-8b02-40af-9019-1972d8eefef3","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":170,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"8c52b041-f67f-47a7-a8e3-20bf6f021bf5","block_type":"box","text":"Cer tain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":170,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"911ed592-aea2-411d-ac37-ff7aeda0dcbf","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":170,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"00c05c36-dbd7-493a-a898-61091533a22a","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":170,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"ff15c144-5b0f-4d12-a9da-ca8137449a4c","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":170,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"ef6cf64f-3836-4ed4-9f06-15c4ea6145ea","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":170,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"33ac1bd8-5610-47a9-be18-e007eee5ce06","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":170,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"849c744d-3f51-4bb2-9a79-c3f90d1a75f2","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":170,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"b9dc71c5-75d1-48f4-b1f5-4c94a43c29fa","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":170,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"9f49f2a9-c0f2-46e9-a770-32483c1fe876","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":170,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"02b85397-9b83-4527-98de-3249bf261fa2","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":170,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"8ca1fbcc-36ce-45d9-8322-a2c2869506ff","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":170,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"f8bb4dc9-8741-4294-bf71-58107dde3a64","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":170,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"e785c5a3-1063-42f1-ac39-70b9c4986912","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":170,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"9236cfb2-19e3-46ea-b105-c5e996873c77","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":170,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"ad2aea1d-5087-45e6-844f-c0f626c47f06","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":170,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"7b303a35-d03f-4084-8a64-80c0d0da4342","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":170,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"903ce2b5-69c6-4d55-94d5-c9bb9ae82088","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":170,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"83a2d04b-9ceb-4c7c-9503-41ad1b147d29","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":170,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"5bf8a0b9-a1fa-4366-b861-d18cf8a23931","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":170,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"067680f9-af3f-4d50-9f3c-d749e1d3f18f","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":170,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"e826f24c-82b5-4a3d-8f4e-828307df1b18","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":170,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"2decb0e6-1486-4b54-a461-0cebde178a96","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":170,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"e2bb29e6-fa43-4af8-afce-76327340ef1d","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":170,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"6b1684f9-9013-4100-851e-2f592929eb11","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":170,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"2fe4689b-993a-4c98-9a60-98e2686fe704","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":170,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"75792eaf-935d-40ae-bf3a-778ac1893ffd","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":170,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"97c5ff7e-3717-46bb-b2ae-0fd0f0428eaf","block_type":"box","text":"in subsequent taxable years.","page_number":170,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"fd7c1d2a-e4dd-4783-9f9e-0c1f529b0ccd","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":170,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"3ac8df54-6366-4d01-a763-2bbfc19c2432","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":170,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"163076d9-232b-4394-8ef7-f6857c2e3b2f","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":170,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"a5fdb368-66e5-4ea2-98a4-d39a4e518676","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":170,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"b1c06950-08a2-49b3-b82e-a77c84c6b85f","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":170,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"5ca990bc-0fa9-48b7-ba98-715f8203b7d7","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":170,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"12865630-6f88-4c95-8b79-fae10f2d5637","block_type":"box","text":"company from shor t-term capital gains and qualified net interest income (including income from original issue","page_number":170,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"6878ba73-eb77-4f30-b147-15c76b361e76","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":170,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"52e0d3d4-3941-44ba-af90-c5ac0d9131b9","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":170,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"1552f2bc-d1e4-40d5-ae95-d1c6bc5437ef","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":170,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"85043a73-1cd0-4cde-8c89-0f4508a94a9c","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":170,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"57f4722e-ddab-4398-bee4-03e934670c57","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":170,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"d0901cd9-4dff-42be-8299-84f16a911589","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":170,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"f0ef2cf0-ef5c-4a25-b45b-0472881dce11","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":170,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"80b16090-b5c8-45d4-ab1a-13c4aea4dce8","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":170,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"796a7842-b8bb-45fc-9da2-aeaf61ab1fdd","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":170,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"b02c3cd4-97a9-4dfb-85e8-3e6f63ded1cf","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":170,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"099d98df-3d96-49e7-9b41-c32cc1c8aad2","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":170,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"95628215-5b4a-457a-9c9e-37164c402bde","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":170,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"c3a5520c-c028-44f9-a4c8-2ada8e45a8a5","block_type":"box","text":"dividends under these rules.","page_number":170,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"ca4db84a-9fe2-4f09-97af-4485020233bf","block_type":"box","text":"II-132","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9e442a7f-f104-47ff-92e3-25d5b0df8f3c","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d766a898-4028-4e59-85ac-0530b83f508b","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":171,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"b747658c-0b9a-48b6-89d4-5e67284e20fa","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":171,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"c0b8ed36-9438-4260-913f-be12827afa2b","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":171,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"629c579d-4dc6-44b9-b853-143056f11e98","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":171,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"dd53c706-549d-4ead-b2d8-4b5ecb9611b0","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":171,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"c9b18104-8af6-46ae-a1e3-d7e808f11e6e","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":171,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"2431c88c-a199-4754-937f-5cfea9d4102a","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":171,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"358659e9-439f-4428-88dc-5437d494aa90","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":171,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"8e9a4132-3d97-4189-b8b2-977c784bb95d","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":171,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"a8c3d805-daf5-4789-87f8-48f701ed53bf","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":171,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"d42020a0-5fbf-4e88-a8c1-6b503e36511e","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":171,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"9c6a4517-87d4-4f94-b7ca-0d4ce547326d","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":171,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"2c88cb39-8a11-42a0-8480-8f06ce03a158","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":171,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"b427379a-1da9-4965-9b5c-4e9995589b39","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":171,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"28937fcb-638d-4d7a-a97b-615fd3c9f074","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":171,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"5895012c-0005-4390-a545-bf6e51158e5e","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":171,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"f8911ab5-7bb0-47fe-ae25-ece54e3f3645","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":171,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"f693f751-9635-4539-9379-3471f2c21364","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":171,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"0f16ec0f-d3bd-4282-8fd8-26f7f4bf2d2c","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":171,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"d659304c-494e-4c38-9068-e693c8715209","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":171,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"1499c004-7717-4f8e-9217-1e180105c5ff","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":171,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"e346f32b-2a4f-431e-b31d-8c7c065ad085","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":171,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"f545d839-882f-4a16-9bda-8f05bcb74516","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":171,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"44d5289b-dfbe-4ea8-87ed-43be80eea35f","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":171,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"8e2e3882-62a7-4c3b-acee-d62538c5fbb5","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":171,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"6a65b667-28bb-4b61-85fe-f929f65f855a","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":171,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"23e8e012-a42f-4122-a607-f499b486ef32","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":171,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"74a3eba0-a6b1-4519-a6cb-ca2e3a28ade8","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":171,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"caac6b41-25f1-4cb3-8fa3-30c8b30f4b14","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":171,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"64f42461-2bc0-4188-b5fe-6faadeaf5804","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":171,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"26561d88-1bc6-4233-98fd-4ad8f4c29438","block_type":"box","text":"concerning the par ticular tax consequences to them of an investment in a Fund.","page_number":171,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"bb979517-5975-4fd5-a8ab-13e1b3332009","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":171,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"523c2bd3-365b-4e57-8ba8-512875375eda","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":171,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"0bfbb829-3572-4488-a339-2e6905ceaeb4","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":171,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"d3b8d679-4748-4858-a389-a65e5cad32db","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":171,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"35c6e138-3562-46a8-aa10-6fab535818cf","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":171,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"5d98db8e-2690-4e09-a936-7d17dcf86ba9","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":171,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"9eaf2104-965b-4b63-b64a-843eeea59b24","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":171,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"d8bf6aa0-44d2-47db-8419-f72f94c6ce06","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":171,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"280b31a0-c3cf-48e0-9d4a-8a26667dd4f7","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":171,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"58d20282-7882-4bad-b946-97e4cfc4c294","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":171,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"09fd02a4-5cce-414c-b056-3f90996994dd","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":171,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"7f6e9f20-bb15-4266-9f64-491a7eacd38c","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":171,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"81b51891-03a5-456d-b34e-e9e1ffb2bde1","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":171,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"bae1cb3d-1b82-43fd-a1ce-d72e69e71688","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":171,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"f0096fcc-8893-443b-91ed-dbcc58db6a6b","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":171,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"a34331da-f4cf-4fdd-8278-127f71916bac","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":171,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"b9c43dcf-d4c1-4462-90d0-4216eae4611e","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":171,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"092548b1-78b8-4ead-aabb-25bc4d11cb02","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":171,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"de2be9bf-a15b-4fe8-9f96-960dace98e68","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":171,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"633da940-37fd-4df0-948f-8332ead17802","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":171,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"d8817bd9-128d-4902-95ef-535b25331a32","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":171,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"eb1b8f24-5df5-481d-a2bf-179b790b181c","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":171,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"76b1b0cc-362c-4a01-bb82-a22ce42ddb6d","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":171,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"0be9c47d-e188-4085-a9b1-1f5976a15fec","block_type":"box","text":"II-133","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a519d013-82e2-4ca8-bb77-0da9a5e05bcc","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4ba24ad8-cd81-4e64-9247-55d6be154357","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":172,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"aac783a3-d75a-46e5-9774-ede0ecd37470","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":172,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"8db3e4c2-b630-4329-9afe-07860e03f2e2","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":172,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"2be5e55f-f9ef-4b87-bcc6-8194b71ece34","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":172,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"b29de1b0-acef-4995-9572-9ec229d7b832","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":172,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"3515dd70-4f3f-4d14-a1ab-5370b4b1f22d","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":172,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"15f8ab41-767b-4777-9c22-0f51d98738e7","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":172,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"e8a0294f-203d-459c-ae0e-9f81b0858493","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":172,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"848e690a-f582-43fb-b485-d1e82a0bcc62","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":172,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"08f25444-d9c0-46e2-8035-83b7ea98a26e","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":172,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"77c00702-1d8d-4cba-9246-1b860621a8fd","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":172,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"aec1cb91-ab87-460a-be73-30a7c497dcdd","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":172,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"a1c0a110-485b-47c8-9089-a9cf094c61eb","block_type":"box","text":"investment oppor tunities.","page_number":172,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"ae667c9b-2bfb-4b43-a8bc-5eb97854b9b5","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":172,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"c20b1f41-7d2b-4750-9e47-78897a236594","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":172,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"472c2e3f-45e3-4842-b454-5aaab35883cc","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":172,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"cffc878a-30ed-4c24-ac7e-cba52e4bbdc4","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":172,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"d796463b-40ee-4380-b74f-424c769f2925","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":172,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"e4cc240c-e40a-4306-9fe9-0713b9058bd8","block_type":"box","text":"accounts and cer tain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":172,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"6d875f74-27d0-4db8-9fd4-ed43886b2132","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":172,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"3fb0bd1c-904c-49b8-9797-f210fd88d241","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":172,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"cdfe69d6-d9de-46b0-a8ab-f9bda7e7aa47","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":172,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"1af86c9f-8ad0-469a-8468-c4f07739a750","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":172,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"b97be824-3ee1-4d49-bd53-917783e8c54f","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":172,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"b71f7b25-19ab-4913-8c85-0b217090ad81","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":172,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"14f23080-256e-42be-ae44-0f50b3f0cd5a","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":172,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"79719e65-ae64-45de-bf2f-736edf04c2a8","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":172,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"e23cb51c-b39b-4cfd-89c6-18ecf59282da","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":172,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"bfa4ab11-45a7-4c19-a876-69882cfd0cc5","block_type":"box","text":"deduct such propor tionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":172,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"edfe6ec5-e452-47c8-b9e0-6b23c5771792","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":172,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"5482d371-7f73-4432-8ea3-55856ac8dfd4","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":172,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"0d863198-3e7e-46c3-a036-9818722ef5fa","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":172,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"836ee105-87ce-45fe-b982-30c4fb4945f1","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":172,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"895cec2e-e287-4e6d-993d-1c151b832d7a","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":172,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"0368727f-a690-45b5-86e2-53c9d360eec2","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":172,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"474476ac-7dec-4846-8afa-ed07af6de0c7","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":172,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"2736f84b-9363-40af-9fe9-d07393ff96e7","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":172,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"e563ad91-ebf0-4aaa-9a85-7ad81f7b5478","block_type":"box","text":"allowance of cer tain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":172,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"5eaf0cef-bcd3-4cb7-bcc5-3f9589a6c2a0","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":172,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"f4452022-24ca-4df0-b6a9-5fe87c69c6af","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":172,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"43c9b327-76dd-42ff-97a2-47d42aa0ae92","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":172,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"4b1b9860-412f-40e2-9580-705b8b5893ad","block_type":"box","text":"positions in its por tfolio (","page_number":172,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"6bbee6fe-c515-45dc-a3c7-30eae8f8e5fe","block_type":"box","text":"i.e.","page_number":172,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"a02ca3ae-8e23-475a-9c99-240fef8b75cb","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":172,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"f8d5bd24-6bd4-4b44-b904-02353dde7972","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":172,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"dba04fbf-1073-4e80-addf-9888da821856","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":172,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"98b67c7f-c4b7-41e9-ac95-47a60e896dcc","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":172,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"9800bfbe-f2d1-4839-88ec-9e02ff2e1263","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":172,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"927b3751-074c-45eb-bf01-b5f4a6ff7c0f","block_type":"box","text":"Cer tain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":172,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"1f6b2a02-edcd-4757-83a9-3434cfdbec3b","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":172,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"3919f055-8b9a-4e44-b51d-e3d48dc39de0","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":172,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"97c6eb76-6081-4d59-baab-c59c19e088d5","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":172,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"3ca865d2-e441-4ea8-b931-2616056878b1","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":172,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"95838349-4d91-4c5c-9fc0-e05a984ad92f","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":172,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"713537c2-68fb-4ae4-9306-e8181905f299","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":172,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"d701d02f-897e-4ae9-aac3-0eb0b78a0622","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":172,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"dc4da622-e995-4017-bc76-f426ff7e0de8","block_type":"box","text":"II-134","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8ae5548b-c4e6-4751-bd7d-0a3789328319","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"76bbafdf-0044-4721-ab95-e2b3d13041e5","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":173,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"7ac77397-c79a-4220-b621-19581d3b2c85","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":173,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"fc9ffdab-a1c0-40e5-804d-847955c95de4","block_type":"box","text":"capital asset.","page_number":173,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"21cc024f-c381-4288-858b-7f9f8b7c1eec","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":173,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"687c3fe5-9bc2-4dbd-b0af-436770e1e5cc","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":173,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"e1632b99-a649-454b-857f-81ff59211ede","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":173,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"62f90dd4-7dbb-4dab-9061-546d8c7409c8","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":173,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"ad90f670-62d2-4eab-9458-ab3beaefe54c","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":173,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"f6cf31e0-dc2f-4de4-9ed6-b37d03e4c91a","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":173,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"0d18131e-d6e7-4c21-a38f-6aad77d64200","block_type":"box","text":"Fund were to invest otherwise.","page_number":173,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"4f9a498f-8c4a-4de1-912c-b86594cc0c43","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":173,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"96b2fbe7-e6f2-4548-b5c1-dd2d1091dae2","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":173,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"f1ce4ff5-9c73-45d1-bc22-9c71a29674bd","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":173,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"058ca187-c415-4d15-afea-e4a5b8b460ca","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":173,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"04f9a473-0de1-4570-9c50-b8b52e150ea5","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":173,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"2fb578d3-1f62-48ac-8a5d-9cf5f8d8b948","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":173,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"c8584242-a84b-4377-bbb3-86b9b1bf1278","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":173,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"dd48a95f-b866-49f7-a7c5-4a4ec93c5fee","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":173,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"65616544-d5eb-4391-b02e-cfb606b220e6","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":173,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"a6b80b4f-fe44-4194-aada-5959210d2501","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":173,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"2478f723-2e4a-4f3a-9a6d-0d2008f0bd0b","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":173,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"71fc20ef-4579-4c48-af09-9cca25a7e9bf","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":173,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"3f359295-347e-4ee5-a26c-92f4ed618e51","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":173,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"8706e87b-8e6e-4cfa-baf1-a2c5cab2d9c6","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":173,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"a7bb8c95-e8a3-4c04-ba44-690e381d9abe","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":173,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"97457e2d-f154-4979-a909-bfe650af97fd","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":173,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"3b4d0d62-a9ee-41c7-92ac-329fcff191af","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":173,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"0538e0f7-3222-456c-9233-8047f09b50f6","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":173,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"609ceeea-16e7-4aac-ab42-f398cda215de","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":173,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"54d1bdd2-b0e1-4eaf-a1f2-99d64498956e","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":173,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"5dd01093-c7c5-4541-8790-c1b020ad6913","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":173,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"5ffa31c2-c041-4765-a4a1-a834e409a8df","block_type":"box","text":"PFICs.","page_number":173,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"72b68fac-5336-430d-aa83-c801593aef86","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":173,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"d73fa771-f377-4e63-8226-fe0fd3ec81ce","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":173,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"546f6ad3-6908-40f5-96ef-4f5dad71ae44","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":173,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"31147d3e-a255-458b-b923-ecfe0621b595","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":173,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"925a9c13-020f-473f-b62d-116fa456c51c","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":173,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"70ca0a44-e439-43df-8145-abd1590f8cdb","block_type":"box","text":"difficult or impossible to obtain.","page_number":173,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"231c7852-7a3a-4949-9149-b28a7219ceb9","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":173,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"c159e990-5f31-4df3-94e3-35de9dc37677","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":173,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"a7db41e2-162e-413a-8d96-d67e9cd36f22","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":173,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"74ae0940-b3c6-402f-81d6-ab2565c664a4","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":173,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"6e3209f1-d895-4db7-bf17-a88df4ed2d6e","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":173,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"2e904378-f334-4a47-b144-7aa3b6078641","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":173,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"eeb13e92-b522-4916-a486-c564c1f812a6","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":173,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"8c993e59-e075-4390-9da1-88ddfa581590","block_type":"box","text":"Municipal Funds","page_number":173,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"a1c7c32d-8f6f-4ab0-8959-7aa79d8c75ab","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":173,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"2e50403e-84e5-4b2f-b22c-75edc3d915a1","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":173,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"60fabf11-2d76-4dc0-99c2-e6d896abeeae","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":173,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"c79691d3-e3d6-4c6b-9e53-45094d6dd0d9","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":173,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"d8924080-edf0-4d7f-be22-53e8991ec619","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":173,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"d9888952-f51d-4b76-a5f7-fbe9b4faad75","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":173,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"183153f2-85d0-466e-9148-5bdc70cf0981","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":173,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"2bc1db2e-4a74-478e-9604-2507ba3d1a1f","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":173,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"63b91724-a22b-4c93-9870-21cbe2774c8c","block_type":"box","text":"II-135","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"475f9ce3-77cd-478b-9339-c11e5b470989","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"78a2c309-d759-42b7-aee8-d4576dd58c84","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":174,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"cb3bcf93-4ab3-4475-8a0b-85c9d3a8f4b2","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":174,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"08fdfa00-f55d-4381-8930-6f518f0a0c7b","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":174,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"4a3f4690-09eb-4154-8c59-88ec4ff6243b","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":174,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"9bd6903d-92cd-476f-b728-0268a8e0bf48","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":174,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"2890dbfc-0424-454c-b377-251bb01b0777","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":174,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"fec0539b-4418-422b-87b0-257f4caef4fe","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":174,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"e8353115-553f-447e-9f29-e3fe01a8eac9","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":174,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"173fec93-a658-4494-bfe2-2fcd080e5f66","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":174,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"790b214b-f3bf-4996-85a3-a9e3a8cdbabf","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":174,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"29ac19e3-9ed6-41d5-ba48-54f3d8845d35","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":174,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"84280228-73d7-43fe-91a1-29870e9c4d89","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":174,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"13ce89b1-64a4-4dd8-ae14-49dda35116e2","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":174,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"2bd1e45a-43f6-459f-b0ef-36ab858a931a","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":174,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"735bce94-c1f9-4476-b834-0df00593a0b3","block_type":"box","text":"constitute exempt-interest dividends.","page_number":174,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"bc860577-c811-4efa-a940-ecb28a1b0a30","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":174,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"554ec9d5-6ecf-414b-ac1f-8321420121b9","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":174,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"bf860449-d0ab-4c2a-8270-09902419da8a","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":174,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"304cb4d9-8650-4cc8-aac4-004ad731e308","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":174,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"2c8d5699-9126-4308-ba08-02c5e0fde8ed","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":174,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"6b2d8c8d-5c39-492c-84fa-8759cbbde2b3","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":174,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"054e791e-44e9-42ff-96ae-795ce1339950","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":174,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"495c6f42-f559-4e41-820a-9acb027b3929","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":174,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"f5f5f64d-7145-4e78-a6e9-4b6a1cd06999","block_type":"box","text":"income dividends received by shareholders.","page_number":174,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"094d872e-95cd-400b-904b-d4e24575c476","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":174,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"e22cb575-9e59-417d-9b7b-badd8cd46ade","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":174,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"c421d35c-f1e2-4f8e-b3f5-b001b10f1e26","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":174,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"da24946d-0495-42e1-83bd-c213ad53fa41","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":174,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"45e79b84-0828-4ff8-9a3c-cd9484bd832c","block_type":"box","text":"the accrued market discount.","page_number":174,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"38f2846b-bedb-45c5-bf10-e77fb2c2038c","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":174,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"6cd3c209-007e-46bd-9cbe-cbdb37d10b57","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":174,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"393fda55-f7f5-47c7-a7ee-aea7fbf6f37d","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":174,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"18c9d35a-c113-4c34-8943-c8de3470e78f","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":174,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"96fb54c8-f3a5-472c-81b4-6768e2631b18","block_type":"box","text":"e.g.","page_number":174,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"0e01a738-e4e3-4fe7-a699-a98445d35507","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":174,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"4ee27a44-ab58-46eb-8aee-4f457797c69b","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":174,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"a709bbb9-8c3e-44b9-9cca-7c8436972922","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":174,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"065149a7-ea01-4d09-9126-c8c085d1dcbd","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":174,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"39ddaba2-6905-4bc9-aa55-7bea4ba3a0ee","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":174,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"4983f57f-c71b-4ce3-bd44-c814c6da8ec6","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":174,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"4c476734-db6b-466f-8f49-edff9670a69e","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":174,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"9d316179-136f-4514-afb8-93808185a27e","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":174,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"ea6269b1-0e65-4e49-99bb-8d76a60c654f","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":174,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"40670218-0b90-4496-8711-a755b29b939f","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":174,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"072e4b8e-44bc-4e62-b342-804611211032","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":174,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"5226c01c-3f25-4a31-a4c4-4b73e2cb3852","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":174,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"7b71c325-f1ae-4f24-b586-c58a3f790321","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":174,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"e851d1ac-bc3e-40cc-a293-8f1af92a7558","block_type":"box","text":"Oppor tunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":174,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"acd24fef-1651-4919-93be-ab1b1325e2bb","block_type":"box","text":"within each applicable state.","page_number":174,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"cbc649b6-a0ec-49d5-b69a-34fd4bb5f105","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":174,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"c4ae1668-3243-447f-8618-2ee30bc63133","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":174,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"8a4bdd58-fa0f-4e85-b19e-ea1ecab951fd","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":174,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"19c266c4-3c80-4afd-a92f-9c432a218d24","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":174,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"a6d8269e-9850-4413-a114-1cde105b9897","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":174,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"6bf70546-d65b-4fbb-9bb9-48379af43a2a","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":174,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"344ad1c1-d7c6-4a40-a5ba-5eaa2fba14ab","block_type":"box","text":"II-136","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"13588e7a-840f-4cbc-8196-b0aa5ca95c97","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"34df4b0e-f685-494d-a14b-eadc788dace2","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":175,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"4d642962-1419-4a17-b1a8-bb536bc1becd","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":175,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"eafc4c06-6cf2-4c34-9301-a04b5f7780ee","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":175,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"3ebcc7de-14b7-47d9-807d-c3ed407827a6","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":175,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"564dd76b-32dc-432e-a398-5817f6585701","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":175,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"dab844bc-58ee-4858-b615-4ebead47999e","block_type":"box","text":"exempt from state income tax.","page_number":175,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"3b2cd2ed-7bac-4416-8e01-fe3587f95806","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":175,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"27cd6590-869d-4789-b516-e9a38364ea63","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":175,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"1cc04cb7-8b98-47ce-a189-3a98a973cc9f","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":175,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"785acf63-f7e9-4e1b-8673-7430a75de925","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":175,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"66860735-c412-4ed3-8c15-d652ec81a7fd","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":175,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"2028f279-b58c-49f5-a6c7-aa67fb73c52b","block_type":"box","text":"cour t decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":175,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"1303c1b6-1cc8-41bc-965a-da900edc9d67","block_type":"box","text":"decisions may have a retroactive effect.","page_number":175,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"e399333a-6183-4f7e-9ab1-8f3a9337c0ee","block_type":"box","text":"PERFORMANCE DATA","page_number":175,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"d82001f2-d294-4eaa-b170-6defe2f31755","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":175,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"babfb92e-ce11-4d23-a5cf-f28fd6a3e1bc","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":175,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"743736b6-ee7c-4859-b239-cecff6fa6953","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":175,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"7396d964-4bec-4417-a83c-3a0a2839fd6f","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":175,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"dbf4f94a-cacc-4308-bddf-203c2078a546","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":175,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"2e365ed5-da8d-44f8-a7a4-e46799194472","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":175,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"46775e95-cfe6-453c-b319-dffd6c251fd1","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":175,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"01e28596-5915-4cc5-8ff7-177afa8f9213","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":175,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"b722c733-f1ca-4a08-8d1b-661dbd7585a8","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":175,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"d57ae144-7c59-4005-b057-093d4bb7e0ce","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":175,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"c87c0a77-beac-48ba-be73-e84d55cc9a14","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":175,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"f3be714d-b3a2-432a-84c7-85f53f49fc13","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":175,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"6b99fce0-8a64-479a-8e03-8f5716919c7d","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":175,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"92c3789e-3920-4735-ad5e-a8de65406fac","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":175,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"2e2264ea-0d29-4551-9e4d-69269d19a8cf","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":175,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"93baf4d8-18ff-4289-a468-d8171879a777","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":175,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"3b41c80b-7cfe-4436-9e51-56a03c536343","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":175,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"8586bf35-4764-43f4-96b9-f54ae8e1bd3e","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":175,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"0fd4709a-6327-4fae-9b8a-4f35efc65dfc","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":175,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"4f99c8b2-7c95-4f3f-887b-edf714c7877d","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":175,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"ff79e11f-ddac-4834-89e2-776c51cb3a81","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":175,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"e3cd42b3-965b-4a07-95de-a6af3b6ce56e","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":175,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"9a805fc0-c195-4c2d-8c9f-a7f251f1c115","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":175,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"c419434a-751a-4fab-9e6c-c9cd73de90ec","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":175,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"4299bf5a-7c6c-42c8-8a2e-4dc667511854","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":175,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"c07dc16c-cae2-4f30-82e1-a1a1f756821c","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":694,"width":814,"height":11}},{"id":"44f4fe21-5ec0-4f42-ba3e-90882ddacdd7","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":175,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"2535f713-6f3f-48fe-bda2-95b4aa886d8a","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":175,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"011d77d4-4ff1-48e1-829f-776ebbc2ce5c","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":175,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"18c61add-43f1-4e62-8f40-723d27bc4b32","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":175,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"99438dd1-7e50-42be-9129-fc37ae8e3cdf","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":175,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"bfad6c1d-2944-4716-8c74-a9cb99ccb70a","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":175,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"fdb859bd-2d1e-4fa5-b04e-5808e5096104","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":175,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"c7d1392c-5667-4d1c-83c1-83408fafdd13","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":175,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"d0c813f9-e15b-489a-a670-ff07efd31b9f","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":175,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"ec8854f3-e22c-4caf-86bd-bc78ee591f9e","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":175,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"4ef2c53b-450b-4e58-8059-3fb19158030f","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":175,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"03ae640c-1d16-4c92-b28a-ab548e16253f","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":175,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"a4c55523-e8d3-407a-8e42-ac42ec502315","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":175,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"aa4f3c2e-c44b-41f3-80cf-9c0b1b9428c6","block_type":"box","text":"II-137","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8ab4b786-5342-448d-8543-dfa27b3d4403","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"462ebd5b-6ad7-4079-b270-b48f18f106ef","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":176,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"4dfe4186-a9e6-4b59-ad5b-ae09b061bf97","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":176,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"21b846f3-f0bd-4383-8db1-741cae21e253","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":176,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"94d47645-1867-4951-9de2-591ab12083d9","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":176,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"08915eb3-cf7a-46b3-8919-a4413ec35c51","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":176,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"b949837b-3a4f-4f4f-a5cb-2de2b89d935d","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":176,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"71fc133b-158f-41a7-8dfb-b19a641159cc","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":176,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"9bc27038-e3be-47a1-b494-8cf241c850c0","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":176,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"7b4e98b7-8c03-4164-b967-56678acbfab8","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":176,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"bc33ecc8-8bfe-4115-904b-30d9b5b6128b","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":176,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"f44674f6-dbd5-43da-82b2-9cdc928f8261","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":176,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"281ca4a8-2995-4944-9d17-0a5cc8026c79","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":176,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"23fd8c4c-7cb3-476f-b120-c97a87b77f2e","block_type":"box","text":"per formance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":176,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"9a15f810-2a8c-4e6a-8e77-2875f5c9e682","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":176,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"14e41227-9bc3-4eca-9c4d-b6fefb1fb4ca","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":176,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"09dca3c3-cdd3-403b-baad-994f956631b7","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":176,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"771e64a3-94a2-4e4d-82a2-8a41c36a5aee","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":176,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"4e2b0ff5-fa90-4181-bb95-a071ad540e0e","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":176,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"7a618264-be61-444c-9cf1-e74b0372ee79","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":176,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"19382183-9350-49a0-b367-c74c30d0fc4f","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":176,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"2c2d32b1-d85c-4c82-98be-331f13534ee6","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":176,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"40acdb43-0c74-4425-bba8-94406c929c58","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":176,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"c6549d08-d0d2-432a-9dc6-b45a2087a02f","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":176,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"510d745f-ba6b-46b5-93f5-7ece166653ec","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":176,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"3f8378e0-7599-414e-a953-a8b57c295a23","block_type":"box","text":"less than their original cost.","page_number":176,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"d16572ec-8344-4bcd-b6c3-f194d50a1ee4","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":176,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"7c883d48-5ace-423e-a83f-f99e0b4c9040","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":176,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"64195a8c-4106-40af-8de9-9940981513ec","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":176,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"b5ebdc33-f4d6-42e7-84a1-3a06ab4677bf","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":176,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"2e09cf24-c018-4bea-91e1-0d023ad06d54","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":176,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"c2a9f8a9-b9a2-444b-af3b-93e3b1a8de3b","block_type":"box","text":"lower amount of expenses is deducted.","page_number":176,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"67633999-6a95-4e9e-9d8f-a61aa036e674","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":176,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"f479be8c-6640-4c75-8f5c-2dc85113c865","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":176,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"5859fd35-0a64-4b63-9697-66a05e39ff0d","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":176,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"7e820916-620f-49e5-81e2-fd128fa5959b","block_type":"box","text":"Money Magazine, U.S.","page_number":176,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"4437f3a3-42d6-48c6-ab73-df55d0ddc730","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":176,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"8018bcf6-4b46-4d63-ac66-5e9dce9453bb","block_type":"box","text":"or other industry publications. When","page_number":176,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"e1cc6d0f-f591-4407-8237-a3b3ca14c179","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":176,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"df5e9065-dc31-4dce-9f19-41e067f26a03","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":176,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"eb45d594-0a86-4074-aee8-5cb07821a6ea","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":176,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"63807f15-908d-499a-ba54-fe9407e8743f","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":176,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"11da23a2-7bb5-4a7d-8ce7-e7df8fa52c9c","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":176,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"5126cc50-eb1a-44e2-aa8b-47d5a05bd45c","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":176,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"6f53fb21-0c69-489e-851b-3760666f5efa","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":176,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"082e1018-ee17-4d99-ba2b-2b13d57933af","block_type":"box","text":"developed by Fund management.","page_number":176,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"609b7096-a55a-4399-8a82-b3f317f3d8cd","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":176,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"f98039a0-5db9-47af-98ea-7df8a3746b5e","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":176,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"42ea4833-4268-4652-b2bc-57180e297c80","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":176,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"8684419b-058e-45bd-9ef3-72eca65029c0","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":176,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"5c53a259-5f8b-45d1-8a6b-6eb9dd0371ca","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":176,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"8bbf6c2d-39de-4a9d-97f9-83ca6cf6d23c","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":176,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"d0c0a06f-d486-46af-8c46-707b9e241cb1","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":176,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"7271c650-3f8f-4235-8ce8-e66f184e9d1d","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":176,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"54c8eafa-88f7-4884-ae3d-8fe64d1f7567","block_type":"box","text":"II-138","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b90e7ad3-4841-4e66-b7e5-396351b5d351","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f7b082c3-41bc-4af6-b938-f5b28f0aeec8","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":177,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"426ae58b-a402-42e8-9785-8cf30b6eb4d1","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":177,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"35e49c4d-2025-43d3-9781-0f89b13072c4","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":177,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"8651cd66-dcc2-4809-8386-0786cd56ad59","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":177,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"f8d99ff5-dbd1-42b3-89ed-d0523337a319","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":177,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"178e6bba-b6b3-4734-b367-9f3afef7c17a","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":177,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"b59685ed-31ca-406a-b13c-9e6d8a65d667","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":177,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"7e6d8b8e-d866-417f-988c-86460537af15","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":177,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"0e638f83-34d5-4b88-9c98-37e6df41dfdc","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":177,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"1c16acdc-e6d4-4541-8866-ac22cd5e67f0","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":177,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"4b56992e-7d64-4ee3-a531-ba18889698b9","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":177,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"10430132-8352-40fd-8598-ab573d153c3d","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":177,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"5b809f5b-53ee-4fdc-8765-95f5feef213c","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":177,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"96b9ae6b-937c-4135-ad69-11a47d6e2468","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":177,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"a0f3f146-61ba-4f31-ba3b-52adf32f243d","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":177,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"16552041-0521-4781-8795-3bceccc6fbfc","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":177,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"08f940c0-ed51-459c-adb5-7d4664a30909","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":177,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"1878039d-22d9-4a80-8cec-1a89b61d7526","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":177,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"c3ee661b-423a-4a33-9707-1fd065f140d4","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":177,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"3b8ef816-93fb-49d8-8383-da35f31b2e00","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":177,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"b55cf153-4aff-4076-9ddb-3af1406c89ed","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":177,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"e2dd4f14-64df-4558-8c7e-db8209707036","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":177,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"5d3158bb-8a7d-4d60-a782-0f6df775e774","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":177,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"9ea40cfd-8cef-4b90-a91d-ff408c65d9b7","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":177,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"75cfa597-b1be-45a5-a2a6-767075588018","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":177,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"9d9f7a73-0069-41ca-a413-1160940fd06c","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":177,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"3b5f6e61-2c4a-4587-af38-fab12b6d5ff4","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":177,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"1424c7bc-7cca-4fe5-9e84-741233ccb68e","block_type":"box","text":"GENERAL INFORMATION","page_number":177,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"92ae5fb6-5fef-40cc-8260-636a1aee2db4","block_type":"box","text":"Description of Shares","page_number":177,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"d27d3dcc-15fe-4863-8bac-f88887e2e180","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":177,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"6945b879-34da-44b7-a0ec-17122ab9b848","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":177,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"f9953567-bb4c-4440-998d-3522a88efd4d","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":177,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"e4dd86af-ef52-4a34-9caf-f2e8b6cd29da","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":177,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"e1dceace-f0e5-4d0c-b020-a64b2248c97b","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":177,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"824b0920-499e-41c9-915e-326e91d905fb","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":177,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"a7608c6c-9924-4347-8258-2e195c6a4e03","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":177,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"dc62817c-aba4-4aad-adfd-edf94db5f544","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":177,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"9111d761-d229-466b-81e8-c16fc91b6073","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":177,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"68c97b70-6af4-40dd-b197-820ffb772b3c","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":177,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"17bce723-54f7-4309-b609-3a6ef6478b6a","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":177,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"fbab9f39-97e8-436f-b5a9-d09bb3fe6334","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":177,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"45c4523e-460a-4eee-a165-d5986be43111","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":177,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"c0259d30-f804-4601-a85c-3d2425a157b4","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":177,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"a2668ea5-67af-4600-8638-619cf34bdc3c","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":177,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"784bae77-2e8b-461e-a608-94da732c3c3c","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":177,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"4fcfd47f-16e9-4d4a-a604-274850216e44","block_type":"box","text":"Cer tain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":177,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"d822e700-b011-4c41-b8fd-5ccf205fc1ca","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":177,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"433aa4e1-4b40-4f53-a1b6-bb5936aeb9c1","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":177,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"8290e1ac-bc7b-4a9d-8d34-5526e8157a95","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":177,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"64dc274c-9b10-4c3b-af13-16783d76257c","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":177,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"6700e5ea-1497-4282-b195-743fbfe9c76f","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":177,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"faf4edc1-830f-4336-8862-744bb627beb3","block_type":"box","text":"II-139","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"638a7704-c2dd-4811-96f9-0d3fc9bf4706","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"488d68c2-53ae-46ef-922f-9926d340d0af","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":178,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"fefb3e5b-1c52-4db0-9275-7c8031ccb7a5","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":178,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"5cfaab0a-e01f-4609-a73a-6fd2597ea750","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":178,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"5dbb34f9-fb9e-40f3-ab55-8c55bc7453a7","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":178,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"a1600adb-262c-41ff-8114-9bb855f1e973","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":178,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"a6885341-4652-475f-94b0-e43a760bac6b","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":178,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"84529394-7f26-4202-95ee-f1a9378e5c9a","block_type":"box","text":"Additional Information","page_number":178,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"be17431b-380b-48c5-9033-d589d8071e1b","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":178,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"c2701033-7cf0-4ea3-8beb-739a0cc48d83","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":178,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"56ab610e-4225-463a-a846-89ecfa38bacd","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":178,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"6ac8907b-2cff-41c0-a3aa-08b4c1f15c5c","block_type":"box","text":"such name to any other company.","page_number":178,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"8646478e-80f4-47c8-b338-36f2bce5099c","block_type":"box","text":"II-140","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f0bebe05-9c47-45f0-b626-b89160c2faaf","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d7bfed53-3f47-493d-87ac-b3f8c66a9c47","block_type":"box","text":"APPENDIX A","page_number":179,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"a3f425d0-faec-4f27-8f38-c91ae0513e5a","block_type":"box","text":"Description of Bond Ratings","page_number":179,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"2b31c255-0a27-4c2a-a7ef-74466c14da4f","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":179,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"ba965a7e-39ca-4186-bd85-ada1d1fdd606","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":179,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"6f0d2327-c516-46a3-919c-036571e04ad7","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":179,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"5c9aaec8-552c-4725-8338-3605850324d1","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":179,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"003569ba-2972-4972-b93e-178621a4809d","block_type":"box","text":"securities on a par ticular subsequent date.","page_number":179,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"4df845e3-9e54-411b-8f61-6af0808ed76c","block_type":"box","text":"NRSROs may rate specific investments (","page_number":179,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"e5d9a541-508f-466f-8846-69ac9bdbae03","block_type":"box","text":"e.g.","page_number":179,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"32a7465d-6f36-4427-b661-cec37dab9a6b","block_type":"box","text":", bonds), issuers (","page_number":179,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"10c25262-1c06-4a0d-be5d-f26db38830fb","block_type":"box","text":"e.g.","page_number":179,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"a058b955-09c6-47c2-953a-ee76b9bc3bef","block_type":"box","text":", corporations, governments and financial","page_number":179,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"badd074a-31e2-488b-90fc-18a68fdf5402","block_type":"box","text":"institutions) and/or programs (","page_number":179,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"3e6e3c71-1bce-459c-be96-18802b66b185","block_type":"box","text":"e.g.","page_number":179,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"e27e589c-4eca-478d-8815-2cdd77fcdf71","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":179,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"8892a1af-9a0c-490f-af63-b7564c1aaf81","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":179,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"3bac09e3-0fe3-434a-adb7-fea8353d5105","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":179,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"4d0ef4d4-fed1-4c40-913f-3e2a14951e42","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":179,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"c7a168c3-67c3-422e-abe7-08e344e2af26","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":179,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"f971bceb-abe8-4f04-88ab-5e24be80c7cf","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":179,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"33fcda24-30ac-4578-b759-4c6bcb43a32b","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":179,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"e7ba399d-1770-4c1f-94c2-65f0f19e9e36","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":179,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"dd005f43-1db2-472a-9ced-8d86fc61d270","block_type":"box","text":"security (","page_number":179,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"b0e79f92-8281-4cac-911c-3506b81a561a","block_type":"box","text":"e.g.","page_number":179,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"070c7a79-1f5b-4f2c-aa27-6218a011f2e8","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":179,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"955eb21c-5132-44f5-b811-d2b6011133f4","block_type":"box","text":"highest of the multiple ratings.","page_number":179,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"fbf85fd1-1a4c-4f43-bca2-a784fdd4a07e","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":179,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"d151707f-4759-4f6a-9525-33d72792dd2b","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":179,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"acd7dc50-e688-44ba-b70c-9bfe8f1b796e","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":179,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"fcc6255f-555b-4c94-a16b-79340983e339","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":179,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"493de7ae-808c-4af7-895a-a9331eeebd58","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":179,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"84c1742a-8111-4ae2-8072-592a958ecc02","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":179,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"34209959-e989-49ab-b5e4-918148be54a9","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":179,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"6446e133-e1fd-4823-a4e2-be325c1dfb46","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":179,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"848014d2-d4da-421b-9155-621f50bed8df","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":179,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"0f828ddc-9d3e-4975-88fc-94c09284bc73","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":179,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"d2e816fd-3ed3-424e-979f-6dfb9669813c","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":179,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"3ed4a9aa-39cd-478f-bac6-58c4d09b8d9e","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":179,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"c7222236-1854-42fe-bf70-ab2450fbbfba","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":179,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"b4818558-b23e-40c5-acbf-ad18249fa212","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":179,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"133e631c-8b57-41cb-89e8-1bc09c37e80a","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":179,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"e2df8156-e653-4b04-9d17-e5f2b8cb085c","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":179,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"d9d428db-ebed-4379-bdc3-87d840e795b4","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":179,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"7f7c003c-6d52-4f81-bb8c-05f23a272b89","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":179,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"d679127f-8e77-4646-aa81-780af2c43f70","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":179,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"88367a90-a0bd-4cf1-a515-5263ad869f68","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":179,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"d6917299-33d2-4c8a-b333-8922ca30044c","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":179,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"499efbca-9f7f-4402-8ede-56a9b730e921","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":179,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"b580264f-685a-4bd2-b0b1-bfba13af4dfe","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":179,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"973bef86-0670-42e9-ac36-d8f319563435","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":179,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"13c78f9c-2806-4ead-a25a-15f82fc1a00a","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":179,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"073a8fcb-06fc-4917-bbf7-d2eeea73aafa","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":179,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"2a1caf8a-cfd3-4c88-8fe2-6c51115738a0","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":179,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"677cde21-cbe2-411c-8444-2320cb3943cf","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":179,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"fa6b0efd-5ca4-44fc-b6c3-01348b1ea4a4","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":179,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"418c5490-a19e-407f-abb8-4e0b4e39e95f","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":179,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"11e7d3d6-4d79-4ece-8cb1-100117d21095","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":179,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"f1662e06-aa4d-40e8-9241-dcc4aa7f9273","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":179,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"ac22ac69-fa23-497b-96f1-28ac753d2261","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":179,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"cf91b598-2618-4f9c-8aa0-d8137df25cf1","block_type":"box","text":"upon standard sources of variation (","page_number":179,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"a348f2db-fa82-4534-b02b-f2f1516a0932","block_type":"box","text":"e.g.","page_number":179,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"e093811d-cd8a-4c05-b454-c3e55963e1af","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses","page_number":179,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"86f4c613-555e-468e-8cc6-8a34acb1c13c","block_type":"box","text":"A-1","page_number":179,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"253be029-706c-4727-aa80-d4c93f4b7bbf","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1ab47e07-c87d-4fc5-b0e8-a3cdbc3d41d3","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":180,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"34dde0b6-2346-46c4-84a6-72833ce71b1f","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":180,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"b5813295-1357-4249-8b1e-56f572fc79bb","block_type":"box","text":"e.g.","page_number":180,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"50621cad-6982-4c2c-8665-64d367f7e7b9","block_type":"box","text":", equity indexed), absent","page_number":180,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"53099991-5d5b-4763-9ec0-3284c867e84f","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":180,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"0feb5c5d-b5ec-4e6a-8c4f-ac222567ac25","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":180,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"1e62838a-2431-49bd-a937-d529937a40b0","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":180,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"b75fc35a-5338-4607-813b-7d3ac1fc5bda","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":180,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"05f7a8b9-621c-403e-843c-08038be89257","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":180,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"98bee069-a60a-4afd-b3a6-5bf568d408f4","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":180,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"47010b1c-1c4a-4ee2-a425-51195461f435","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":180,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"98c6d5a1-2c4b-49e3-9635-7d25c60e6fc1","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":180,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"69e006d5-fdf9-4c13-bfbc-707d9e7c6d7c","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":180,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"54e6ee5c-0010-4c22-bfdd-2878755aa3a1","block_type":"box","text":"i.e.","page_number":180,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"87277a68-006a-4a0a-aeea-c5cfb91850d5","block_type":"box","text":", ratings on nonfinancial","page_number":180,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"5de965c9-bfc0-4e3c-b7f0-05f4d9d9358b","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":180,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"d6676381-f815-4fbc-94ae-0fe0979eeacf","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":180,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"151986cc-171c-48ea-a2c0-36f6fa3d3ccb","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":180,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"9573a7a2-42fd-422e-b733-4927cd0a2092","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":180,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"e6856d57-72bb-42b5-b640-d4da3bb872fc","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":180,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"996d1333-54a5-4c52-a1ce-cd60d8dc7cde","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":180,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"5539b4dc-37e0-4965-9acb-0789356e5388","block_type":"box","text":"of time.","page_number":180,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"a1dcb701-5956-4398-ba30-d1386ea1ca16","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":180,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"97e51c5f-d0a8-40d6-994f-c2a4060c23ce","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":180,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"6ece8689-40ec-465e-9f16-1f89990559a3","block_type":"box","text":"risk.","page_number":180,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"2a06fd32-360f-40a0-81e5-e754c8922985","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":180,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"86963c37-be55-4bd3-8be9-b792fb8a7922","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":180,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"e81ebd80-d43a-4534-9aa7-e2131d37afef","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":180,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"b012ed4f-6370-435e-9d0a-da0aa916bb4c","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":180,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"7e61187a-0a35-41d3-a72b-1b06c56de44b","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":180,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"39b6eed5-a345-456e-a909-9b992fb08a67","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":180,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"b9df828b-5ef0-46bc-b7be-46e63f553fab","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":180,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"bf0e8371-82e0-4ba7-987f-87f5e4796096","block_type":"box","text":"credit risk.","page_number":180,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"b384a30e-9b14-47a0-9616-db03ec26ea2b","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":180,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"a47e95eb-30d7-4373-a0d1-268a6cd75ce6","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":180,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"19abdc29-ee4c-4eea-8df2-c4d666c96242","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":180,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"1d5f0233-33c0-48b3-8d08-3935aebb40a8","block_type":"box","text":"of principal or interest.","page_number":180,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"8e35bfce-e163-4f71-8b47-22e5f27983cc","block_type":"box","text":"Note:","page_number":180,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"b558240c-49d8-40aa-91a2-2c7bdf768a49","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":180,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"b18f185d-d90b-424f-8a46-5f2235c66505","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":180,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"8608fcf4-1bae-4018-86bc-37b32190d76c","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":180,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"765a3e9a-9184-47ef-9efa-9659076def12","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":180,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"3dedfd08-b280-4259-8222-a7b3da3c2f4f","block_type":"box","text":"companies, and securities firms.","page_number":180,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"e237f17f-ccbf-4789-bfd6-b8afce8a98cf","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":180,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"a2e8da7f-5f68-4edf-afc2-9865e40a2795","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":180,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"6462c169-c217-4c59-a94f-6f228790e77e","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":180,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"82f92910-3c9d-44fc-a48f-0f3deabf2c85","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":180,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"d3032092-a46e-4492-9484-5ebea5854c4a","block_type":"box","text":"that security.","page_number":180,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"5f90aa25-9d8e-4942-a39a-acddf16f51dd","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":180,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"039eea2c-e6de-4b80-b710-9749bb84501d","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":180,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"f8dd49d6-33e9-4bc0-8389-629b27f40fe0","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":180,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"2947e9d1-66d6-4e8f-bc35-07c362f60647","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":180,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"eef680d9-2b45-4e29-ba04-db51f57f9bb6","block_type":"box","text":"NP Issuers (or suppor ting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":180,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"79758234-b836-4b72-851e-32253fe40636","block_type":"box","text":"categories.","page_number":180,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"e39c7930-c411-4f16-9962-9aa79aa6da85","block_type":"box","text":"A-2","page_number":180,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"054fcc46-88af-4b30-8e7b-6b9bebc68356","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ad8569c3-f2d5-4e11-a402-51b8cab4b675","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":181,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"50cfca89-7766-4322-b539-84f3cb4086fa","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":181,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"4cd69ffa-86d9-45f7-84cc-3f0d14165cc0","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":181,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"77fd23c3-eef2-453b-b6d6-1868cc014bf0","block_type":"box","text":"an issuer’s self-liquidity.","page_number":181,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"078708b1-9f48-468a-b5b7-77ac3af8621a","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":181,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"8b5f4f43-a5d4-41ef-b9ac-1031e2016d6d","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":181,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"e769ff88-7ba6-4d63-b43b-fe3ccf775739","block_type":"box","text":"MIG Ratings","page_number":181,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"83fcfe76-a99e-4a64-90e7-a96baf85f747","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":181,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"52dfb6d8-d5bf-4761-88e8-3b0ca4306688","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":181,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"41529737-a905-4d85-acb4-834a591bd9d0","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":181,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"9b3379fb-5cd3-4b7f-95d5-26ec66fb36ef","block_type":"box","text":"MIG Scale","page_number":181,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"c0faaf61-81b8-4195-8777-e8e9971b3e0e","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":181,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"eddbc8df-5a1c-48f3-b17e-9d77d01e402c","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":181,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"527f08b7-d0be-495f-a0ab-e65db4d0e177","block_type":"box","text":"refinancing.","page_number":181,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"31e4dc61-f5c5-43ff-86af-6479683f4c1c","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":181,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"f2f581fc-93b2-4bc2-981a-2462f7e1168d","block_type":"box","text":"large as in the preceding group.","page_number":181,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"d4769606-9711-4108-9302-a779f1febdc2","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":181,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"ab443c78-125b-4e69-a283-1c35bfbfccda","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":181,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"330c8774-b509-4505-95ae-0c0d0366d9d9","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":181,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"1550b663-9475-4baa-9729-bb514c97abe7","block_type":"box","text":"lack sufficient margins of protection.","page_number":181,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"d591a316-d2d1-4332-b642-ceb70c119b85","block_type":"box","text":"VMIG Ratings","page_number":181,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"58a74811-1c7a-494b-8ef1-5c7af5103747","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":181,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"e83bef52-d2a8-49c0-80ce-1ae2838345d6","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":181,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"ecbceae3-aa39-442c-9e1e-b20df0789536","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term payment obligation rating addresses the ability of","page_number":181,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"5d9074bb-3c9e-4826-8ef7-03981ad9766c","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":181,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"b584b118-cb57-4d20-a1c7-f52bbfd0c9cc","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":181,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"62335ced-0f7a-4196-aba9-c8cb28732e94","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":181,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"bf246e2e-12e8-41ce-98ab-f5bd74b3feec","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":181,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"2b32c4de-3846-4d44-a8e8-84f6a16d71ba","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to","page_number":181,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"3c76b47d-e752-460e-88d0-c00670710531","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":181,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"0301f974-7076-43b7-acd7-bc0af4b362e1","block_type":"box","text":"grade.","page_number":181,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"22560180-4168-4abf-9b18-dbe46332f294","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":181,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"7e2ee13b-76f8-44c3-936f-1fd6d561a15d","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":181,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"2a0420fd-ace9-4113-ae07-5d39d22973d9","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":181,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"9e157989-8fdc-47cf-9e90-8be121ddfdeb","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":181,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"ef6be026-6679-453a-ac9a-b9ea1ecbe77c","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":181,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"e1f23749-30b0-4f8f-828d-1832fc4721d8","block_type":"box","text":"liquidity of the corporate obligor.","page_number":181,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"a8737349-038a-4b2c-8907-9af843b47131","block_type":"box","text":"VMIG Scale","page_number":181,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"074976f1-ff9b-4075-868f-984ce61a84a7","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":181,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"3b0343a2-8758-4046-8bf0-b674cade1a56","block_type":"box","text":"shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":181,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"5c9a34c4-33fa-4c9a-a6ed-d7ef466fc70e","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":181,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"f7acf0f8-42d8-4ee7-a84d-4fa449e1ba90","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":181,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"70797315-54f9-487e-a8e2-3bcc62f5efdd","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":181,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"c318c7b1-e633-46ad-8a49-dfe708b98791","block_type":"box","text":"satisfactory shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":181,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"25cd083a-06e8-4020-8da4-1ac2dc2872a6","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":181,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"68d03350-493e-41b4-bf11-efbae85c6fd7","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":181,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"31f0b97e-e028-40b1-a3e4-8f5fa6bbc7d9","block_type":"box","text":"may lack the structural or legal protections.","page_number":181,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"d601e8b6-affe-41fa-be78-c5e91f82409a","block_type":"box","text":"A-3","page_number":181,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"2261b1c2-c617-44e8-b0a8-abc122c887b8","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5dc29108-2e75-4064-8984-f947c8ca5ed3","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":182,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"b31489e9-b2c7-4b82-9f40-00744f6302e6","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":182,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"7c4dd83a-0b66-4e32-8bcc-c600d6b8b98d","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":182,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"71db08fe-e022-47e7-badf-88b15192c2f0","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":182,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"a33b3f4a-d16a-47e7-b3f3-65f8fa35da4a","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":182,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"2134aef2-b772-42e3-af09-aafad31c96fb","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":182,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"0b5eb865-b1fe-4743-85a9-69cf0df51004","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":182,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"91587eee-e813-4aea-b784-cb6710a1488c","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":182,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"4f7288b3-b176-4f21-826d-5150c117db1f","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":182,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"12701897-c025-4bd0-8a63-c393522aef96","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":182,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"7745bcae-522e-4896-bece-6c289daeb5e0","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":182,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"81f0feeb-e881-45aa-8ced-77dd985ce623","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":182,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"682c4ffe-87ac-4a30-832e-6e2acad28056","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":182,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"ab46f36d-c1b6-459a-8063-cb91bd1e5fe5","block_type":"box","text":"from these guidelines based on market practices.","page_number":182,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"5e942a79-62a1-4569-97ac-476cc1ed5d55","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":182,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"7143fbb6-1121-4ac2-a4c0-796e04335068","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"8705dc0e-895e-4f8a-b7ff-7a31a59626ae","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":182,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"27056ef9-e692-470b-a268-46eea1e770a3","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":182,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"7d9e8f8e-7911-47dd-a6cb-6fbd1e049378","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"1addaa12-f436-408c-bde9-37abd52b1758","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":182,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"6a04686d-f111-4ab4-ad25-e42d2a1b95c5","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"f2e5da33-1b6c-4e15-8e45-64f0f6d5caa6","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":182,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"80c5b242-3d66-4e00-bcc4-376df005e301","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":182,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"ccbd8fa8-4cc5-4690-9250-d80c79a6a08f","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":182,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"1e469e30-b50d-49ce-8cea-6f0e2e8b3745","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":182,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"753a90c9-6b59-43a9-ae80-2c4dcfbf0e66","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":182,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"6be04411-f35b-4bc5-b6a3-86c02bc17257","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":182,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"44295d7b-3300-40fb-8ca8-5c5d19dc924e","block_type":"box","text":"obligations.)","page_number":182,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"1f33248e-2497-4aff-afc7-54bacc9f54a5","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":182,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"37a9693b-de6e-45dc-b177-25e67530e29f","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":182,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"536f145e-4ad6-42ac-9263-60e39b943ad7","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":182,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"2ccd54b6-30cb-46f5-ae06-89f0895b1d8d","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":182,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"09720846-54d7-4ec3-a8d6-aa5c5e51b69c","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":182,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"505faf7b-2c35-4aa7-bca2-1dcf65f99dd3","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":182,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"0099a561-1489-48c0-b7f4-fe34c9e7251d","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":182,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"a20608f4-44a4-4628-bb65-59ea2c869af7","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":182,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"2d5c7ad7-b832-4b78-8afe-0c7081b7e505","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":182,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"3441f008-050d-4715-9116-399490f2984a","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":182,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"8991d54b-c339-4954-b17a-12b709c9ce18","block_type":"box","text":"financial commitments on the obligation.","page_number":182,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"4ad3656a-7b0f-4336-9500-33c7328601cd","block_type":"box","text":"BB,","page_number":182,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"2231b275-079a-4a9d-9b8d-72980d2afc77","block_type":"box","text":"B,","page_number":182,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"90cccf74-ea72-4a9e-b95a-e605a9475c06","block_type":"box","text":"CCC,","page_number":182,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"273908c0-9d28-4f71-ad4b-776c82696a1b","block_type":"box","text":"CC,","page_number":182,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"b0e52113-0654-493a-8463-38924c4e6f22","block_type":"box","text":"and C","page_number":182,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"185c3aaa-8d20-445f-b300-30a8d25b6101","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":182,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"253c6498-fdb5-489c-b316-7b2a4a1dcedd","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":182,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"e698fc98-208e-48f1-9e2d-77dfb6e674c9","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":182,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"d4153d98-e097-4933-be1a-b4acdfc71fcf","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":182,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"37b55490-501a-48f4-9bac-2d50891fec28","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":182,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"8fb79d9c-1fa6-422d-a082-34f44b802eb4","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":182,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"5c3e8c11-4962-4d55-85c4-00eae711d4ec","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":182,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"9c8ad3e4-9f34-4343-a0d3-406f160ae0a2","block_type":"box","text":"on the obligation.","page_number":182,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"6a7edea2-1865-4000-bc65-9fbde458f4b6","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":182,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"5dc09fca-a0e5-40f0-8b77-5b6d41dc1f97","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":182,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"35a58160-2bfd-4dbd-b9b1-2017aa454f03","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":182,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"450c7fe0-ba48-44f6-ab4f-47ebb148a2c1","block_type":"box","text":"financial commitments on the obligation.","page_number":182,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"fdcb0c34-43bf-4364-a984-c39164fd05be","block_type":"box","text":"A-4","page_number":182,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"10516ef4-e758-4842-934b-99ddcf2554db","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"80b34b04-20a6-47e6-8496-63552c67bee7","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":183,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"ee3b7d72-1ba5-4f9c-94f2-e57acf3658fe","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":183,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"54ee1d41-b88e-4cab-9077-5342475e9b5d","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":183,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"9eb7d2e5-aa85-431c-beaf-91eca74d6f6e","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":183,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"e507af81-aeb7-454e-a480-2dba2eb4715c","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":183,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"edd9fefd-ffc6-454a-8f5d-829bcff7a714","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":183,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"915f6f8e-be14-4736-90e2-36ac9497eef5","block_type":"box","text":"anticipated time to default.","page_number":183,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"4650a76d-7647-49d6-9f87-f807c805cdef","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":183,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"e52952c1-ef9a-42bc-8e32-e6aa37f4027a","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":183,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"40e6feeb-337c-4844-9ba8-1882d0527fd9","block_type":"box","text":"higher.","page_number":183,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"1685319a-255f-41cb-b7fc-18d502788e28","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":183,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"3d6fb78a-91f7-49db-bda5-679ee49455c9","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":183,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"202c9b85-cddd-4b6b-9ad4-9bfa6446c065","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":183,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"28357abf-be3f-4331-b167-e0c3d59845e3","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":183,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"b0832883-6a75-4008-8ab1-009647057794","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":183,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"dd36be1b-7793-4646-b3b0-e960f09d002b","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":183,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"d598f89b-c571-4890-8ae2-62f0ecf5e983","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":183,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"bbb32b0b-8959-4adf-acac-314e8d241f63","block_type":"box","text":"restructuring.","page_number":183,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"e884ebe5-6061-491e-a048-5c6d0c5e2b34","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":183,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"b4690fde-fbd4-4414-b577-d4e9467fa313","block_type":"box","text":"standing within the rating categories.","page_number":183,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"ae29171c-7f41-492c-90ca-787511414622","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":183,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"0086ce3e-a86f-4661-a4c9-c9b19a523b38","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":183,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"18e256e1-9327-4b1c-a318-6531cf13730d","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":183,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"a296af96-f159-4623-af38-51b2dd87b249","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":183,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"66fee7bd-66e4-41e4-a9eb-40d0e63bc685","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":183,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"c3c88b68-3883-482c-b6e2-d8b0b2c8a1f9","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":183,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"69b8c6dd-2d0b-4220-b84b-d510bdfcaf6b","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":183,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"3904f864-33bf-43b5-9ba2-2cd5768b0847","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":183,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"a1ba2d70-489a-4c85-8cf8-0dbcf553efdd","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":183,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"569f129a-754b-4206-9ba6-c0daaf5a99f1","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":183,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"feab1aa7-a9a6-4da3-bee3-5110d16c0f89","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":183,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"05416e29-dcae-4914-bff0-4b158d996acd","block_type":"box","text":"B A shor t-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":183,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"22e2432b-31d0-48bb-83ec-c821287f6824","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":183,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"cf18d0d5-e67d-4ccb-bbf7-c11765cff5c3","block_type":"box","text":"it faces major ongoing uncer tainties that could lead to the obligor’s inadequate capacity to meet its","page_number":183,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"d4469333-eb0c-4a4f-ba47-e81051994c5f","block_type":"box","text":"financial commitments.","page_number":183,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"6ccaa965-e975-48a3-a30d-38c423f87a59","block_type":"box","text":"C A shor t-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":183,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"ccffa4ce-7cc2-4627-a7de-dfa4191446da","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":183,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"d4322d6c-f42a-467c-85be-c7609abed8f6","block_type":"box","text":"commitments on the obligation.","page_number":183,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"c98e9f8c-9e60-4436-8f39-aef69587612d","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":183,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"8f306843-5d3a-40ee-a1cf-f39165d6cb70","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":183,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"8d498cf7-4801-48da-94de-406df90526f0","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":183,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"0a40a56f-9451-45fe-9612-5212dc9cb155","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":183,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"67764867-05e1-4fb0-83dc-b6e5ca0f1f82","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":183,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"dbf1247b-bf06-4458-b277-019387fbf620","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":183,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"31c27bc6-5407-40aa-a786-609be316698c","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":183,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"7ee05b3e-ba03-4bb4-8666-7a1d2e5d92df","block_type":"box","text":"debt restructuring.","page_number":183,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"ab05c543-5629-475b-a26e-b4656ae2cf15","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":183,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"5248bbb4-6bef-4e69-a7af-180034bc674e","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":183,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"722c550a-9c73-441a-9049-c6d375005125","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":183,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"a6331cc7-952d-4b0c-92fe-9dd1d761a7ad","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":183,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"d22e327d-7763-4b49-a46a-27f034705a6a","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":183,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"754f2101-d58a-4f7d-ad32-53d4a2683004","block_type":"box","text":"A-5","page_number":183,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"e4269955-9f2f-40b9-830a-b2ddc70fd3a3","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b5aed564-4283-46f2-80af-8378cebf52e1","block_type":"box","text":"•","page_number":184,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"cabcec2c-0356-4787-aa0d-b4fa333c4f1b","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":184,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"bd251fcc-6add-4684-bf88-1601758676e8","block_type":"box","text":"as a note; and","page_number":184,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"fd5badb0-7f16-4bfd-93c9-d95d9b32210d","block_type":"box","text":"•","page_number":184,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"7ee0d6d4-b4e8-442e-8cb4-ebfeabb98436","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":184,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"fe139267-860c-4639-9973-7fb85c868b7b","block_type":"box","text":"treated as a note.","page_number":184,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"1e0ece6e-a11a-4b8a-953c-16f41d0044b4","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":184,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"d2de168c-36a5-4071-9551-fde05dd9e696","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":184,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"201531ea-f347-4a83-a28d-06481c92c2d5","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":184,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"e6aeea99-b91c-4cd8-bae8-cdf7f61cb421","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":184,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"4eb0f762-b5d4-47de-9a18-abbc6153871b","block_type":"box","text":"economic changes over the term of the notes.","page_number":184,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"6c987992-52ed-4e1f-978b-b1dbc792e9ab","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":184,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"7dd47c2b-3407-4768-95e5-76ae4d2c814c","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":184,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"87ed6b5b-4603-43e0-aa15-0308190e1569","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":184,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"d17ef39e-9e2e-4a5a-8d13-317ec382a201","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":184,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"074f75b0-b3b9-45c8-b13a-ecffa5c6afa0","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":184,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"01c79ecf-a868-4840-ba4b-2753097535fe","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":184,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"ea3b9eb4-a3b6-4cd3-a1b2-63c4db0d5a33","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":184,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"7aa1248d-060f-4aa6-ab8f-f621393dd468","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":184,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"ce6c4e16-ad1a-4569-85ad-66fcd7f31d9e","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":184,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"0dfbe546-7b65-4cc6-9cdd-e0bf81810576","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":184,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"48d14f13-8905-46f0-9270-a2fca3590e45","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":184,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"90fa9cdb-456b-44f6-8790-fb03a6527c0c","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":184,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"814e3d16-5a43-43db-80dd-2506d640a7ae","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":184,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"0656b88d-8a18-4b95-9017-ac3488f7add2","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":184,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"d408d912-5bc9-4251-8d3d-f743c0aa8472","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":184,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"fa088033-0348-4118-abdc-bd7109895cfc","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":184,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"4effd50a-a119-4c48-9a21-4d8714d96ecb","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":184,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"9a6c9cd6-b6f9-4cea-ab7c-fa43ccf3265f","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":184,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"253b9824-8acb-4931-9ab5-568825ec8829","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":184,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"8998f0aa-68f2-498f-964d-38965def925b","block_type":"box","text":"receivables or other financial assets.","page_number":184,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"ed2530ff-0bb5-44a0-9107-7a3cb65248ca","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":184,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"666ef084-f7af-4eaa-ae22-a7ee8b7edcc0","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":184,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"2b61a64e-e235-4ca5-894c-ec120a5bc0c5","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":184,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"eb1019af-79e9-43c5-8233-b3362fff054c","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":184,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"dd432733-c88c-43fa-8fb1-3be7fa8151c6","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":184,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"e06cee7b-0cc9-4b20-bd42-c0950793f0aa","block_type":"box","text":"occurred.","page_number":184,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"d43ffa9a-eceb-456c-b08c-ab6170f85eb4","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":184,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"17a807a4-3d8e-4b10-b68f-0ca57b747a05","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":184,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"2bc95e52-b1e3-4107-8dc1-bf67e61560ec","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":184,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"e6dcb8f7-7c9e-467a-8ac5-cca9dbf9f5a0","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":184,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"fcc708e7-0e6c-4ba8-bc01-e5d59441d40a","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":184,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"e484a1cb-46bd-41c1-b071-cab1427ecc9a","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":184,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"61425ab0-4e52-42dd-8bbd-a53b7bd38416","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":184,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"ffd931c8-ba16-4ade-b5c6-2386a755091a","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":184,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"c1ae6c3e-6dc6-4397-868e-2f1b0733914c","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":184,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"de87d87a-e252-42e8-a808-04dc973f1fed","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":184,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"834602bd-6553-4b65-9959-c3e344ffd319","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":184,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"a5837f4f-0beb-478a-b110-734c9e54543d","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":184,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"31944c07-440f-465d-b5b0-6017c87b5718","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":184,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"dc1e1225-6145-4080-992c-1cff4ef2c88a","block_type":"box","text":"i.e.","page_number":184,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"dee3fcc6-b20d-425d-9024-7e60aa9f2eb2","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":184,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"2b595ddc-0365-4e4d-b9ab-e9186aeb25a1","block_type":"box","text":"the obligation’s documentation).","page_number":184,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"945bdb80-8599-4b80-b423-49208a12db00","block_type":"box","text":"A-6","page_number":184,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"845cacdb-8a7e-4fab-9a7b-afafc5535afa","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"add41188-788f-4242-a7b1-9e04881840da","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":185,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"c847cd28-edb6-430e-be5e-df5e57a2f315","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":185,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"cb0778db-6869-4fd2-b2d6-8777b9f611dd","block_type":"box","text":"agents in the form of a rating letter.","page_number":185,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"ed58272c-7d25-496d-b296-6285e19795ac","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":185,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"69249456-d23e-48ea-b368-e5d5fc2e0f16","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":185,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"bfc9b6b6-e760-41ce-934d-f4db553e6177","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":185,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"3f763407-c50d-42cd-9f54-4528b855c167","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":185,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"9cff92f0-652b-445d-b13a-842c2678f743","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":185,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"831255ee-011c-485e-a2f6-57d90a7fb838","block_type":"box","text":"e.g.","page_number":185,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"25dc09d8-38a0-4f10-b804-e27c2a55dd65","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":185,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"7e71a0b7-a59c-41a7-ae05-09dc1cb87019","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":185,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"2aeceb11-8639-4571-b973-1f0f137cd49d","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":185,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"dca02f5b-322b-40ed-af9f-0aec8136c963","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":185,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"a85ffb35-aadf-406d-85b5-3f2b65b5a47e","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":185,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"67d5a4d0-5d9a-4e4e-98a5-c80c0dec4e99","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":185,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"b79c4cfd-6d3e-4166-99ec-7f95399bf357","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":185,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"bcb99bbc-5541-4a2d-828b-e1a0a4199e33","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":185,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"83ef8f97-c036-4f09-b0a1-3d278f696e6c","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":185,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"cf997d0d-091a-4dc0-8fd8-f519dc04886f","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":185,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"7e2dda06-bf48-4084-85d7-9e022474299f","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":185,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"d5eae917-1270-4983-8f7e-3da0da243efa","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":185,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"c6a8924c-dbb6-494c-b82a-66da98a84b51","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":185,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"1f405cd7-4c24-4937-bc39-0ac6304cf625","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":185,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"9507720a-3427-4ede-afde-796976c67b4f","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":185,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"8881e819-b96a-49c9-8333-e7f6ca1ced30","block_type":"box","text":"Ratings.","page_number":185,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"7a25573a-963d-4316-a0c2-a757bc7a64c9","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":185,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"6cbf97bd-5ff7-4fc3-9aa0-a524acd0a3c0","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":185,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"6eecd95b-d071-4b13-b94c-388d95d543f2","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":185,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"29102539-4446-4470-b389-820932dcbd2b","block_type":"box","text":"obligation ratings.","page_number":185,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"c5ee808d-fdd6-4d72-9336-7976385b0922","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":185,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"a3815e0b-b892-4ff6-bd9a-d51d75eeda92","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":185,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"cde00ddd-7657-4fa0-ad8d-d4ac5bf41047","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":185,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"502e1da3-91e8-4196-b430-581391cf3b82","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":185,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"9359a50d-0202-4714-9f87-49c14acf7b0c","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":185,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"f461875b-f138-4cfb-a6c3-0e4ca86428d2","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":185,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"3a02f0e7-fedb-4f6b-9184-30829d8e0364","block_type":"box","text":"to foreseeable events.","page_number":185,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"5fc9cc2c-02eb-4d75-bc20-aa26579091f8","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":185,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"6484ddee-5cab-4bcd-9702-813f29c5a3f4","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":185,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"51f8c5be-f3a2-4593-a9bc-7b0fd1af2002","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":185,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"7c6a2d54-cd43-4ead-afb2-2707ed942aee","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":185,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"e7328233-1bb9-4ca8-af09-e51f25402721","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":185,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"c9dc5389-ba3b-4979-a466-4c079f1bb36f","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":185,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"77580bd1-641a-40fd-8943-e8602fb2b131","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, par ticularly in the event of","page_number":185,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"1e157152-d049-403b-9d4b-6bb4761cfd6e","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":185,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"db4a4095-4352-42c2-971d-04e3e429d790","block_type":"box","text":"flexibility exists that suppor ts the servicing of financial commitments.","page_number":185,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"c38f730e-0cce-4ff9-a273-7710e45af420","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":185,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"c05bd660-7cb2-48f7-8073-e92830ae70a6","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":185,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"249240c5-bb57-4e2e-816e-4110451df94c","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":185,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"454e97c3-c69a-4b28-9d2d-e069e3b9665c","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":185,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"10118a08-faeb-47ad-b0f8-9bd3e530ab84","block_type":"box","text":"possibility.","page_number":185,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"27e18f43-6c94-4d7f-9ba8-b58fdcb37ed6","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":185,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"fa9bf7c0-d5e8-4b5e-a757-284576b1941a","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":185,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"eb89431f-c818-4ec6-91ce-66066e90866a","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":185,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"d82a2576-5662-42e5-b7f0-9c4cc65ce4e7","block_type":"box","text":"A-7","page_number":185,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"95255328-d12f-4aed-b109-a1d9c9444fec","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7f70b595-79b0-4673-b0d5-2086a85dba52","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":186,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"a39b2dd6-c56c-4393-af2f-b3fd6662e8d8","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":186,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"a8f649af-40fd-4dc6-b293-d6f244ed0e51","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":186,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"fa5ab59c-3f92-4f94-9ec4-e79e11928834","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":186,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"e1fe441f-01d5-4bdb-a1e2-e256de8ac78f","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":186,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"7e6ae806-27bc-4143-902c-79906a404c63","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":186,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"91b5a76f-e632-4ce2-b40a-bd0a40ee9dda","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":186,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"bfc8bbf4-1e4a-4296-bd4d-29ffcc0ca66a","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":186,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"1186a21d-7e18-4145-80d5-c5958777fead","block_type":"box","text":"relative status within major rating categories.","page_number":186,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"fe8bf635-b5ed-46a0-b10d-cb679866213c","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":186,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"4324b749-189b-4a70-8580-344f02ca0a46","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":186,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"8acc2654-883d-4fec-9568-e349d867cdca","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":186,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"6c25a04f-8dda-4bb5-9385-7a919755770a","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":186,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"8200f035-adf5-4107-a731-f1d74cb4d5ee","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":186,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"91b8e824-2fa0-43c7-b469-3ad8540a9892","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":186,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"4a48ec38-884f-49d7-85ff-4ddfbf708ad7","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":186,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"5aab182c-0c21-4343-af87-5be46e3e2b69","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":186,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"8e8a7295-939e-4499-976f-3e697ea62821","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":186,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"5b23b949-c57a-4d50-a5cf-38bef28a4b5e","block_type":"box","text":"finance markets.","page_number":186,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"4fd049a6-bb90-4112-ba92-fc672054fe76","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":186,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"8c61ac7a-e4c0-4e87-a81a-21d6e13854fe","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":186,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"a94c4bd8-c748-4ed4-ad4c-707a8e2e7046","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":186,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"56158c30-816c-49ba-8cbe-55d02b7caccc","block_type":"box","text":"F2 Good Shor t-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":186,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"a34f7920-35ae-488b-850f-c48a90d661f6","block_type":"box","text":"commitments.","page_number":186,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"11fc379f-283e-4ee0-afb7-80f1d4e9b9fb","block_type":"box","text":"F3 Fair Shor t-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":186,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"bfd1b4a8-a7a1-4aa2-a90b-5a21a3bcbe72","block_type":"box","text":"adequate.","page_number":186,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"ad26ba7e-1855-4ffc-a7b8-3a042db955b8","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":186,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"2d1f5b8c-cc13-4ee5-a17f-ab201cbf8067","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":186,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"e0d9228b-b7e8-46f5-a8fd-e29d82e38f3e","block_type":"box","text":"economic conditions.","page_number":186,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"385e45f9-a3f1-4a24-92b1-5c3911b750a2","block_type":"box","text":"C High Shor t-Term Default Risk. Default is a real possibility.","page_number":186,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"eb07a8b2-5ecc-427f-a46b-6bd5337704f0","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":186,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"7d4c6ecf-6424-4091-a298-e005a95c90a4","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":186,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"3fe6692e-1bc7-46ed-b49d-b62ee47120ef","block_type":"box","text":"ratings only.","page_number":186,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"036fc2cd-ce36-42d9-bd6a-002370df9781","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":186,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"1c7ed1a4-ead7-4e91-a483-7a6e2bf1dfdb","block_type":"box","text":"obligation.","page_number":186,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"b7d066fa-28e9-4831-9bf6-9affa15e049d","block_type":"box","text":"A-8","page_number":186,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"4d63a84c-21af-4103-9367-f82404db8d5f","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":186,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"50fe9b6b-a8cd-4861-818e-89a2ba76d571","block_type":"box","text":"APPENDIX B","page_number":187,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"b44e062d-4e82-48bd-92d0-53f6568d25f5","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting 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The guidance informs the voting recommendations BAIS","page_number":191,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"16aa77d2-e8ca-4da0-9069-b5298ad2b9fb","block_type":"box","text":"makes to BlackRock’s active por tfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":191,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"a8b9edc1-010b-49b0-87de-52c3a1f0d904","block_type":"box","text":"equity, systematic equity and multi-asset solutions strategies. It also may apply to holdings in BlackRock’s index and","page_number":191,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"c0601507-8f82-4b5f-a984-5c248ed7456c","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":191,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"f8160ea7-f7b0-46ae-bc80-97c28881b8dd","block_type":"box","text":"The guidelines are not prescriptive as active por tfolio managers have discretion as to how they integrate these","page_number":191,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"63e64fa0-65a2-4275-846f-9079c4060b67","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":191,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"7d5fc762-5762-4a31-972c-577fdabc807a","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":191,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"3a18a632-e479-42ef-b7a5-c9671a316af0","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":191,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"7691f07e-edc3-43c6-b6d5-34d4b60f22ea","block_type":"box","text":"1","page_number":191,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"1bd7d842-72d3-4255-bfb4-be2c018021cf","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":191,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"5e9ee710-ff13-4fc2-aa6a-3f7eeea15888","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":191,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"27fcab1e-b1e9-49ae-a977-a53ecd9c1f27","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":191,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"804bb81c-5098-4790-9f7b-3e66400dfbfb","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":191,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"c6184794-e62e-4b86-9295-ab282c3ac4e0","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":191,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"03fa6bee-2130-45f7-bc70-e7a715547482","block_type":"box","text":"2","page_number":191,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"fb0e5d6c-7aad-4e7e-aafe-c88882e02585","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as par t","page_number":191,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"0424a5a3-358f-4e25-bad9-9d619e034ccc","block_type":"box","text":"of a strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. As a","page_number":191,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"78e8aea3-d4f9-4967-ba0f-22efc8d258a4","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":191,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"c2484865-18d6-4d92-ad28-82b21583df51","block_type":"box","text":"policies.","page_number":191,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"36250eae-e440-4b38-a0f7-965c6477b57c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e09d9113-0abf-4df3-982b-6ebc91cd295d","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":191,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"1cd40903-de20-427a-be66-1d1bbe1489ee","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":191,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c1064da0-f475-494a-a24e-24642e0551e2","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":192,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"dce424f4-d6e6-4af9-a694-0f09f9c4c659","block_type":"box","text":"BlackRock’s mission is to help more people invest better. The money BlackRock manages is not its own — it","page_number":192,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"db3d7a1e-93d1-44e3-9ca0-0658ee1a1b20","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":192,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"7b75f04f-1901-444b-90c4-5c4742bec3da","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":192,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"6fc23b18-93f3-4b33-8871-a2a647ddd37b","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":192,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"6e309204-3d6d-4334-8a90-f707fadcb9ca","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":192,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"27620f76-030b-4423-bfba-29e8f2cbd655","block_type":"box","text":"this work with research, data and analytics.","page_number":192,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"2530a60f-d658-4cbd-b3b3-7ced9162d0ad","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":192,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"57686928-bfe8-482e-b1b4-937cdcf1dca1","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":192,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"9d925921-95d0-4111-8b0c-fbd40c42b858","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":192,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"24ce6d8b-9218-4a9d-8d58-9dcfac4820f4","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":192,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"10879509-188c-4859-a7ae-c45bcef3de13","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":192,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"3b163bf1-f7f1-4854-9b02-f7b8c0d41a56","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":192,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"53711d69-e8fd-4139-90fb-b3e6a3843a5d","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":192,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"09b8c350-36a9-4bba-bbb7-411398d0d935","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":192,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"9948db75-157a-4207-8d89-ea7520ed6cba","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":192,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"663306d7-db18-4010-9d35-08fd7ec3e206","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":192,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"221eef3d-e629-4389-a11e-3520ab9e6ec7","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":192,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"df4e6f52-de45-4d2e-801c-66a1d5e1d78b","block_type":"box","text":"shareholder meetings.","page_number":192,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"e7b86fbd-bd9f-4da9-825d-ba85feb79a2d","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":192,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"665547ad-0088-4767-a5d1-4c8454deeb40","block_type":"box","text":"investing.","page_number":192,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"9702a349-cd7f-4f37-9720-298462aebd20","block_type":"box","text":"3","page_number":192,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"b6b119c1-8d67-4fc1-9e13-e04b1cf4437d","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":192,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"ebbe9b33-d110-4f4b-bc3d-5e0ae8b57f9f","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":192,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"7f1f4478-a31a-4556-9582-18ffb19f5e8a","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":192,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"cc0ea2b7-657f-4579-bbe6-d766f5dda7e9","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":192,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"85676b8f-f2ff-495b-8534-9bb180edd426","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":192,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"c6e14cd8-cb2f-4276-8bd7-3430f7d4bc1e","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":192,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"10976ebb-3e7f-494c-91c7-9461a8a351fd","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":192,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"35fa9004-b962-413d-9cef-cf5c3ba6f318","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":192,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"812207a1-03cc-407a-ae5c-8349ce454e97","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":192,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"28ddbacb-a8ad-443f-993e-f745ae783464","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":192,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"b0a9493d-526f-4e1b-8ad3-9dfed9906e63","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":192,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"400db154-d0c4-423b-b5d7-075d05b91baf","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":192,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"82fb1918-398e-4df7-a371-d2bbf0cf4bcf","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":192,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"649d49ec-eebd-4856-bd59-3463d6c29247","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":192,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"58f429ef-4a6e-4cf8-a0b7-f6149239cffc","block_type":"box","text":"management teams and board directors","page_number":192,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"19fda650-73dd-4c93-96e1-10f94bbd81fb","block_type":"box","text":"4","page_number":192,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"d194fa3d-c4b4-4f2e-9aae-6398ab31f114","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":192,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"a76c7124-20cb-4007-b4d6-06afaf654a38","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":192,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"e688175e-5ff6-4c2c-8c1e-1e2676035a3b","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":192,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"e7399df4-c9c8-4ef2-880d-f906b96d7283","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":192,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"d4b3d294-6c3a-4eed-9b73-844206660a77","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":192,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"a739bcce-422d-4e42-86f7-1aae5690aa6d","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":192,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"dc7dea03-bec3-4b4a-836b-2409b5f42636","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":192,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"c7d0479b-f0b1-4b05-97fd-7ca4ccc5fd8f","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":192,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"6b5cd71b-0418-4c87-a4d0-008ac4d4f0de","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":192,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"86d56fef-e83c-497a-8d76-b70ae218b95b","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":192,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"8bd2dde6-5218-492c-aea9-22dd54efd152","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":192,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"88c648f7-7701-4adc-802f-d5bb00e71e3f","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":192,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"3d51ace5-4f29-4706-a3b0-c9ad092a4155","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":192,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"a3581675-59a4-4dab-beb5-b98da69f5608","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":192,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"5995eb75-7e63-47e7-bc7f-fc53649f05a1","block_type":"box","text":"3","page_number":192,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"f3f0808d-30b0-4594-91f8-b0530b160ed8","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":192,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"3be0506f-8744-4f68-a4b6-7371e4619959","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":192,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"84e6610e-3e32-47d7-bc3c-d0d96d7203bc","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":192,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"24bc46c3-70a2-49fc-853c-d5c64bcb14a7","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":192,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"7f223854-464e-4179-9ca7-fa16bde33ac9","block_type":"box","text":"4","page_number":192,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"5fd2a152-1383-4a70-9329-bd0ccce880a6","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":192,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"73397f76-55d7-4e89-94fa-ff3d8a49f494","block_type":"box","text":"boards and their members, where relevant.","page_number":192,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"6e6cc7f3-1535-43b8-8806-e043bb4b9c84","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"85112ef5-ab13-46ab-bbcc-67fd5380abeb","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":192,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"db02772e-ce0a-4913-a82c-be967a357786","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":192,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"605b9a7b-a8be-4a35-86a0-c0e3946b3338","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":193,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"c4ef8482-403c-49e8-aaa7-7449d3db7861","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":193,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"1894db53-d57e-4fba-ae67-eb3ccd89af82","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":193,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"a28630e8-c7cd-4f7d-bc95-ca55c348ec79","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":193,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"974d47bc-7c55-44b8-9957-ac3d78797906","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":193,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"ec6d12fa-f45d-4acd-9a9b-75a1896f5639","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":193,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"c7c5c517-e749-444e-bf74-a802c3a6ea9f","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":193,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"9560d3f2-0e87-46ca-a790-b36b9a585797","block_type":"box","text":"5","page_number":193,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"9661c03c-5edf-4418-a9ec-3ad78e7fd6e0","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":193,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"b0c32be0-584d-4ae4-bfdf-95ef5afbf0e6","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":193,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"bd27a597-c0cd-42ab-86ac-2eb7b117ede7","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":193,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"b4efaefd-ff8e-4679-a6ba-ff12832dba19","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":193,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"74cc9876-41a9-4cdd-8a4a-275caaeafee2","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":193,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"db053b92-ff19-4a1e-a35f-d3c95dee773b","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":193,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"7cf71fec-ec1a-4e96-9b1d-203ed61395da","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":193,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"a1cd64a7-bea0-4f2a-a784-b9b356f09738","block_type":"box","text":"5","page_number":193,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"3fbe7db5-6924-4c2c-8ffa-991151187249","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":193,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"bc75804f-2f88-4822-9a5a-f1276b1fdef2","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":193,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"ed7a8814-003a-490a-8671-fda2ef57973d","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":193,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"569128e3-9780-4a34-9c86-a332c1393f42","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"842a129b-acc8-44d7-999e-1fb47b2e5383","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":193,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"464d9798-1b09-4047-af49-f216c762532e","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":193,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5b5fafca-0d36-4ec8-8494-2aafe1f1d1df","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":194,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"0b851c5b-8d65-4be0-9560-b6651f9b7829","block_type":"box","text":"Roles and responsibilities","page_number":194,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"45b92677-3776-4b7e-8ce0-6e9cb6e37cda","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":194,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"a704e40a-aedb-4f73-a3cc-5b1b2c091141","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":194,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"92ec79a9-79be-42db-a73c-0bd765b64e18","block_type":"box","text":"6","page_number":194,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"d9adf975-e501-43e1-87a0-e39e6a4e450b","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":194,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"67eb2693-df36-4338-b6b7-a49259ab5d36","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":194,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"20901933-48c4-4913-a60a-75be23501c84","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":194,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"10c46e2f-6117-4baa-bf7a-f9bef7750605","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":194,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"16ba8f96-6653-475f-8ac3-c6043954dfb3","block_type":"box","text":"per formance over time.","page_number":194,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"a642218a-67ab-49d5-80a1-bec9608b5806","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":194,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"cbf67f88-b936-4f83-854c-56f4175504ee","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":194,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"50eb913f-fae0-44b0-b597-f334c43c1651","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":194,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"13d204a4-c9de-4167-a460-3229872558ae","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":194,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"e6b1e901-0b73-4cd5-b2c0-c5426b50f471","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":194,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"6ebcb62f-015d-4db9-a866-736501a514da","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":194,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"8c0acda7-2b05-4586-ac95-d21b71abcd21","block_type":"box","text":"Composition and effectiveness","page_number":194,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"1e39a4e3-c31c-4afe-81da-d622c7fa9550","block_type":"box","text":"Appointment process","page_number":194,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"f2f782c2-d6c2-4020-9e30-856e24f989ff","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":194,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"f76b3531-fa12-42b1-9a33-1475234f16a3","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":194,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"79a06d83-848f-4c56-9c5d-9ff1b72ca162","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":194,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"503db57a-8ae3-49bb-b7c1-e851f2af8047","block_type":"box","text":"e.g.","page_number":194,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"d669888e-a085-4928-b02b-a4301ac9a8f6","block_type":"box","text":", sector, maturity, geographic","page_number":194,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"8f643e0f-faee-499e-82fa-762e13e50c42","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":194,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"05849dc8-0c1f-4e17-aec4-f2b7b168dac8","block_type":"box","text":"e.g.","page_number":194,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"8c12a2b8-833f-453e-bd8d-6df87d4ab236","block_type":"box","text":", financial exper tise, industry track record). To","page_number":194,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"60804046-49fb-419b-8b5d-726f76efaff8","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":194,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"d1ea17e1-07c5-4a8f-88c7-065149255f0e","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":194,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"9a5644a9-9ded-4d78-957f-9794faad761b","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":194,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"cbc79df5-8098-47be-8786-ff8d429a91df","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":194,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"93b14f93-9397-479b-b7ca-796f63a3617a","block_type":"box","text":"and local market requirements.","page_number":194,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"d0d16a35-7bc9-45b8-8bf4-aca78b2d2fd0","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":194,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"d42891b1-5e08-4779-973c-318944e3f3f3","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":194,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"117a9568-e5ab-46cc-8f44-a4c9375bd535","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":194,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"f0096d85-9a7b-475c-a9ea-d519e7c9f9d9","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":194,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"99e9f592-6616-4919-ad13-c37547a083fa","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":194,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"8414c359-526b-4752-9deb-15645515cd7a","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":194,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"9dd90f1e-8ad9-4633-b12f-60ce6f3a56f3","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":194,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"53c4f5bc-9ead-4625-8810-0414869fad2a","block_type":"box","text":"Independence","page_number":194,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"3c79da5c-b213-4cb0-a6e0-195afcdde140","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":194,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"db165997-068a-419e-a93f-d019036386e9","block_type":"box","text":"e.g.","page_number":194,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"3bcb4057-3e5f-45f4-bfb9-8cf3ec5377e7","block_type":"box","text":", government or","page_number":194,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"89998070-daff-4a4c-b8cc-80c924774af6","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":194,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"3a39e600-b4d3-4f2c-b9ee-566c1143f266","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":194,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"e5295fb9-7c5f-4e12-b1d0-61dfc372dbd9","block_type":"box","text":"conflicts of interest or undue influence.","page_number":194,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"884d88ae-0f54-4590-bbe0-25115217253f","block_type":"box","text":"7","page_number":194,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"2cceee13-0fb8-4978-8a79-92b1c04b274a","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":194,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"93b0f7f7-f2e0-453f-ad9e-fccd67283765","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":194,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"ea7ba605-37e9-4f63-9d08-fe1344fdf443","block_type":"box","text":"independence should meet those local requirements.","page_number":194,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"b59432d2-7c14-43f5-b9c3-7f0474bc4f4b","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":194,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"8c9490c3-5eaa-426c-b9cc-54d4e9437df5","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":194,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"63182e23-fe81-46a2-a22e-61b6c1f0a563","block_type":"box","text":"composition if this is a perennial issue.","page_number":194,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"69f39709-5817-47a1-b522-7137620556a0","block_type":"box","text":"6","page_number":194,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"a6088b62-0ff5-4cd4-b2d3-9796e68ae346","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":194,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"529454a0-6215-40b8-88c1-bb0e9bee7998","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":194,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"3247e3e7-29fa-4275-ad42-d6bd8464e7b9","block_type":"box","text":"7","page_number":194,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"aac76d95-5b8a-4bcc-abf6-973d6c44e9d9","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":194,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"d7e00b38-38c2-49e9-9515-79be9ab44b8a","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":194,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"092f8ce9-8c77-4fa5-9215-7dfd02abdc9b","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":194,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"930d6a48-3063-4838-a956-7e59b3e8b791","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":194,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"96e30ebe-9fcf-4c7c-9a14-4473ff4c992c","block_type":"box","text":"of the company and shareholders.","page_number":194,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"4024d26e-45e3-434c-8dc9-7c472ffa052e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"235cc2a5-19b6-4d74-97fc-b8a7fa950b78","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":194,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"d704eeee-ffc3-47fd-8639-4c1666772179","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":194,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3e2e0d2b-2652-4d51-a1d4-320ea9534c9e","block_type":"box","text":"Independent board leadership","page_number":195,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"3e2c8a30-f1e4-45e9-8294-c719b705d8a5","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":195,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"77b47920-48c7-441d-bf91-a695963699eb","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":195,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"30d240d0-86cb-4090-b88d-bb76b971b39a","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":195,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"4033b354-6801-4cb0-87ba-97da15ca454f","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":195,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"6017cc05-38fa-4c19-a810-f74e091df74f","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":195,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"b213bed2-633f-4748-966b-17ee8a06a18c","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":195,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"7cf85915-d613-4102-9833-dd87c3838daf","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":195,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"74aabc3c-cc48-4ebf-b972-acf73f2a6d68","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":195,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"19e6530e-17b8-4f91-aa36-d2b94b6dd04f","block_type":"box","text":"how it serves the interests of shareholders.","page_number":195,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"1590a8ce-7583-4f2d-9543-639e5bff7c0f","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":195,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"ff8b37b2-68ed-4b8e-a5ad-969d21257a81","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":195,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"dfe0e08e-4906-44f3-bbc1-136677ab4d65","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":195,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"a0d08c11-39ca-460a-9267-dc92677e2d5b","block_type":"box","text":"Tenure and succession","page_number":195,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"f79c1dc0-40b0-44a0-8acf-fbc33784fa57","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":195,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"f76cd48c-7538-458c-aca6-07637ef44ae5","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":195,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"9c86f4fb-8dcd-4d85-b1bc-78f649e8ab13","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":195,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"2d508303-807f-430e-902c-bd93e021fa5a","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":195,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"81bc87ce-6b05-41dd-9518-8de2340b1937","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":195,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"5501a839-265a-404f-98b9-d4348ad488d4","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":195,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"c9dd716c-6c9b-4dd2-a3dc-d45b11c5cf04","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":195,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"d411293c-0bcb-455d-9512-8b268d972ed4","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":195,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"794b4090-4f3e-4dca-8447-1b7d9d84be21","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":195,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"8b97e475-1403-4917-b24c-89f6cd6f9b2e","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":195,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"a20619e7-d1eb-48a4-b970-8c11441ae7c6","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":195,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"6914cf9b-2ccf-4da4-bd7d-e7a007475e4f","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":195,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"04e8cf01-1b01-453d-96c7-b432e1b0cbaf","block_type":"box","text":"for their continued service is not evident.","page_number":195,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"bb30412e-2bf9-4b82-8d3d-1ebe3e3dc3bb","block_type":"box","text":"Capacity","page_number":195,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"9f9265e9-0f2e-409f-ac04-a06dd899b7b7","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":195,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"0b6d1918-051a-4ff6-ac54-94c520233eb4","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":195,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"a765b0a4-3e36-41ca-80b3-c1f165ea4c55","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":195,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"b07417ee-d5c5-449f-9e96-d6302b6d06ad","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":195,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"7116f52e-54a1-4d37-b7a7-7cb2a19cef79","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":195,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"a4907da5-924a-4432-b268-a66adca32b50","block_type":"box","text":"determinations across markets.","page_number":195,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"b79dc2b1-6a66-4d6c-b670-dacc1ac34c82","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":195,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"833eab3e-f2a1-410e-a92d-80c7bd78fa3d","block_type":"box","text":"their duties to the board and company.","page_number":195,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"c3da2dab-dbb1-41c4-af08-2f48ffbf853a","block_type":"box","text":"Director elections","page_number":195,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"97de5012-fcb3-4fcf-8efd-d82b9225ece5","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":195,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"e5589e33-6af9-4d17-a411-856aaca9c182","block_type":"box","text":"structure","page_number":195,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"85fde1f2-5026-4467-b5a7-18fe2683a3c7","block_type":"box","text":"8","page_number":195,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"577aaa5d-a97c-4453-ada0-5fcdfc6da74f","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":195,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"935fcfb4-4e38-4a39-8849-51298aec8fb7","block_type":"box","text":"basis of its business model (","page_number":195,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"db4cf4d6-e3e6-4b3e-aaf0-5a6a4a9ffa72","block_type":"box","text":"e.g.","page_number":195,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"accedc12-7c03-4c4a-8209-05e01e938603","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":195,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"3164c055-1bd8-4c09-a664-6c9621b5c65a","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":195,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"3098fdd1-2b90-4edd-9b24-0ac457c24e4d","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":195,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"e6d13fbe-9cd1-46ca-aa6a-a9c6e8d90505","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":195,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"8669362f-429d-4186-b5a1-2bcbeabe3f9a","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":195,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"719ac505-d137-4c4a-8325-c8dd545b2995","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":195,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"d0a90e47-788e-4af2-958f-022f946b6a9f","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":195,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"7319f426-bc3d-4434-a9a9-9140a0eae4dd","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":195,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"eb4ab6d4-c704-4d7d-be1a-44f67378494b","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":195,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"3057575a-6a25-4b53-a5db-442e843d38cc","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":195,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"7d78324a-ec11-421d-b8a8-049611c5fd47","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":195,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"2dc86f21-9182-48e7-8a3a-37b8fe109ca3","block_type":"box","text":"8","page_number":195,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"ed7479aa-71e2-454f-a06a-d2cb27437772","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":195,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"9143ff67-50be-42af-a61f-b1c209830e31","block_type":"box","text":"directors stands for election in any one year.","page_number":195,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"375488cb-2248-4d73-8623-6fa51b51f297","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"24f04ba5-f72a-45bf-9ad5-359dc857a8f6","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":195,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"2db8a3b8-4b25-4552-a49f-d070a800454f","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":195,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e440728a-dbf1-4489-a2ec-afb380a1a4fc","block_type":"box","text":"Committees","page_number":196,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"0ec82da3-deba-4071-9895-975e5a19228a","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":196,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"28729ccd-08ae-4b40-9adb-2fc910357b59","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":196,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"5424efd0-129e-40de-aa96-403f680e7dc5","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":196,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"3744dcef-70be-455b-9881-db5e7c142b2d","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":196,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"bcdc1e7c-9c3d-4710-9534-92947251f296","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":196,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"e503acb8-0338-496f-a02c-e7ed4a92c222","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":196,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"55bc4a58-2dc6-4b87-b45a-cf3d8b2f7779","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":196,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"dc7d36c0-f174-48c9-b670-bfe04f422c98","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":196,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"460ea230-e9bb-4706-befb-4ea684f21740","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"1f69d513-c8b3-4ae7-8bfb-16542a7c7c63","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":196,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"5d58080b-ab2c-4cb5-b923-24798f0d9356","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":196,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"9c6b8069-5f4e-461b-a01b-e283a4d83420","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":196,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"49ca3a14-6c8e-4db5-b7bb-54b845f5268e","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"6fd5aa6a-d34e-40aa-893a-36e749ff8fd9","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":196,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"10de2da1-dc08-4fea-9c19-3b1118feef4d","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":196,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"3e4d1841-2ac3-4b8f-a5b5-be849e214476","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":196,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"0d123898-2c8b-42c8-977b-850d718cc6a3","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":196,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"b225941c-fc78-4f00-8187-6799049bf72a","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"b8e2bffa-c916-41b1-869b-ee5a3059dbc2","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":196,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"dc26f931-a412-4151-9e31-6ee95725afd1","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":196,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"fc17100b-49f6-4501-b8a1-961453b418e8","block_type":"box","text":"firm-wide compensation policies.","page_number":196,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"16b3b3db-8cb0-4366-bc95-1db76cb53624","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":196,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"e4a46d47-eb34-4ea5-8ed1-0f17d3327f1e","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":196,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"bd2594e1-dc4b-40cb-81aa-029604364ced","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":196,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"9afe8b32-7223-4f8f-9e20-c12ede1dfd92","block_type":"box","text":"Board and director evaluation","page_number":196,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"7ad538f7-4f04-4257-a3fe-69321d037eeb","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":196,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"d2aa1976-dbf7-484f-b56c-1648eb3ea725","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":196,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"21c3696e-59c9-49fe-abe8-437fbddd4cc7","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":196,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"175e0f0b-69ac-48e7-914f-a37314dcb897","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":196,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"374a5b9c-e421-4bd6-a076-1a6deb573980","block_type":"box","text":"a result.","page_number":196,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"3ff1bce8-36d2-4c0e-af89-e612be218153","block_type":"box","text":"Access to independent advice","page_number":196,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"2e380bcd-6980-48ff-9162-20678c6a3929","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":196,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"a54f3658-0c69-4f83-9583-01b4d5ea2b29","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":196,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"2763f9b8-4605-4f7d-84e2-0ee472ee19aa","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":196,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"3a2fdb40-330d-44f0-8d0f-3ecef811f0ae","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":196,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"3b59abdf-fd25-48f3-bd18-b0484d128f5d","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":196,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"8ba01fca-f8ae-4d04-9fa4-52df4e6c9297","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":196,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"76d3c633-8306-499a-bac8-b7ce579258a0","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":196,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"30592951-b80d-49bd-a71f-093c93a27bfb","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":196,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"65f44304-90df-4363-864c-28c22574f165","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":196,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"bbb47f38-9e9e-4b9d-bd8b-91e3fcada820","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":196,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"3bfbf784-a703-4db9-a256-0ea7e818f0ee","block_type":"box","text":"per formance.","page_number":196,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"a2c5d50f-30f4-4bfd-aa1f-2e0f0878e2c5","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":196,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"5b75f0f9-293f-4f85-a98b-1eecc5583017","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":196,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"435838f6-746a-4904-8053-32bcca13b975","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":196,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"b6576893-9d48-49e3-b9be-b7151284493a","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":196,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"82ffdc0f-4cb1-49f3-a0c2-46c46155ed9a","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":196,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"00178388-45b0-4070-95bd-897466c1cc38","block_type":"box","text":"recruit and motivate.","page_number":196,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"a4b01ae7-464e-4db0-a941-547b0ef26446","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":196,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"feaeb8be-6b0c-44a5-88c4-6c9cb992dd6c","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":196,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"6fb75d72-160f-42fc-a41e-2f9c92318b32","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":196,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"2f5c8a8c-7033-480c-bb48-21e287b1710d","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":196,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"e15ddaaa-d733-4cfe-898e-f98452e6e778","block_type":"box","text":"arrangements include:","page_number":196,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"520a0428-fb33-414f-9007-bbbd9bc8457c","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"e76661d4-2b8e-488d-8177-20a6f04d86c9","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":196,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"bb4ac0b6-33e7-4882-80ff-3f4c4e29cca6","block_type":"box","text":"the company’s size, sector and market.","page_number":196,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"80f30f47-594f-4643-9ec1-5e9f7bf6562d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"7f013c36-9418-4e7d-a4f5-f3c542c2a1f3","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":196,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"c2f95844-e16c-4fe5-99e9-094856b10095","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":196,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"71a2ae06-b3c1-41dc-821e-93500588f536","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"b0d74279-771e-42c0-bed7-7e08d8ab78c5","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":197,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"a0da5093-2612-4312-957c-7bbbb300b838","block_type":"box","text":"strategic objectives.","page_number":197,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"800fbabf-3ae9-469f-974b-fb46d5d41b8d","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"67966275-78fe-41c8-a7ff-c942efb7aba2","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":197,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"1699c993-0a18-49a9-a2a2-7cbadd385990","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"772eb0da-8665-4dba-a522-ab7c86452024","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":197,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"e900dfe7-5717-4c28-87a9-ceb1f59566ea","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":197,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"0a5b0d0d-822d-487b-81c4-e7658dbf58fa","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"faf39978-91b6-48b0-9d59-f666b866a339","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":197,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"8a18f5f8-2939-411a-af08-07b3e252aa74","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"18ed7cc5-3923-4c3b-9fc1-ea8d01e7e39b","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":197,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"9443d1a6-3ee9-451e-ae7f-93ccbce206cb","block_type":"box","text":"transparently.","page_number":197,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"f910434e-433c-4385-a149-f3478d15f52c","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"45fb5fa3-933d-420d-ad76-bc88921eebdb","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":197,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"6d6e3e80-b4b2-4ad1-8a93-c7088e8d7d25","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":197,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"e57cc0b7-004b-4d54-a47d-c2b6b7db51cd","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"cacbdf33-d531-4d2d-9640-3c55e64eba77","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":197,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"7cee3b15-c584-479f-b493-e2119d4a09d3","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"64714183-2d04-4447-92f1-a574c4b43863","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":197,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"deb7d396-4c6d-44d0-a2aa-1fd571a97239","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":197,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"4a9ff144-b267-41fb-a2f1-4c9432e8cef4","block_type":"box","text":"misconduct.","page_number":197,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"2bc99ceb-30d9-4108-8f54-862465b5509a","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"74443ba4-2b0e-49d1-9f65-e72d2205a0c2","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":197,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"f45b8c0d-2a61-498b-8ac5-5d3a46e76cad","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":197,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"59ca6192-f889-4e13-b840-47baf2983133","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":197,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"30c0c95d-c12f-48c8-9f17-dc0c49acf100","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":197,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"02340b5a-bdad-43ab-94f5-673f1f26df50","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":197,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"30e49c5f-8ada-49c9-a050-bb644181f7fa","block_type":"box","text":"committee, or the most senior independent director.","page_number":197,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"89931f5b-bd58-48c8-979f-b5411f1a0828","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":197,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"edb1e3bd-82e5-47ad-9cc6-bdc956bf4c45","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":197,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"1610bba0-2e4a-4680-8212-9b3638476487","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":197,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"6f78aa77-64de-4437-b76d-0817c91353d2","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":197,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"736b7b73-ea01-4a06-8c1a-37a8a2d72613","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":197,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"41f5d983-124c-4b46-8bc5-7e7eb6f0a13c","block_type":"box","text":"CAPITAL STRUCTURE","page_number":197,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"814cccc4-2db2-45b3-8216-77dc04db128c","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":197,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"502a9a6e-7e8a-454f-8c3d-607623324a4d","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":197,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"59e6c7fc-5c3e-467b-a659-8f5239fc1970","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":197,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"5d5a69fa-0f2a-4638-a9a6-4bf3793b2f2a","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":197,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"e09f7504-f0fb-4737-83cf-c9a39bc68f23","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":197,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"24a472d4-a7e8-4ca8-929e-48683b0e13b1","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":197,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"c141a5b9-bbaa-441b-a0a5-6c827e20681e","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":197,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"d72a469c-2ee5-4ec2-b8fe-6e46309c9b4e","block_type":"box","text":"Share issuance","page_number":197,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"efa1c213-6550-4dd3-ba3f-e833e4f09f4b","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":197,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"106e732f-c5bf-4eb9-ae26-837df93626cc","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":197,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"90307a45-426c-44a8-a0b3-89d24dcca556","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":197,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"f037c8c6-e83d-4aa4-b491-5b4ff848bb75","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":197,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"d588602a-46d8-4ee5-b901-ad37d1dcd7fe","block_type":"box","text":"market environment.","page_number":197,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"5d34b4b6-d282-47cc-a0bc-481fb577fb38","block_type":"box","text":"Share buybacks","page_number":197,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"08da1c9f-29fb-4a9a-a8e9-c081f6de541a","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":197,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"b28817b2-c4e6-4893-8fa0-0dedfb48d3a4","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":197,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"3b5fd1e1-cb5d-44fd-bae6-9a41ee3dd53d","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":197,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"1eda463c-c21a-42b1-bc09-1073fc32ea8e","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":197,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"1d243327-708f-4da6-b2d8-6245546e1801","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":197,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"99df8b6f-01e1-43cb-b49f-6de0dc5c199c","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":197,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"99f9ad58-2ca3-4c04-954a-ddc2dd6c26f5","block_type":"box","text":"of the company and the market environment.","page_number":197,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"3987bbff-d12e-4e3e-8e2f-6fe6539f21d9","block_type":"box","text":"Dividends","page_number":197,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"63c93f6f-e561-48c7-9c78-ff3314a55c89","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":197,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"7ae9e036-34b2-40a5-aba8-7eedfbd76954","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":197,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"d8783f52-f035-475b-be59-b846a0691efb","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a64e0ea4-cf17-4703-aed2-6a36e2aedc5e","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":197,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"6af94d79-cfca-48e2-89e8-2a99b58b8f56","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c7ea88e4-0767-4593-872b-2dfa08a18849","block_type":"box","text":"Differentiated voting rights","page_number":198,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"46a0856a-6b23-42b1-bf19-4bf2646a42c2","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":198,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"722662a5-9491-4d05-b9cb-0a0520a62592","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":198,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"793c53dc-e59b-40e9-afe1-b03ed4eee921","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":198,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"7fd23261-5f77-4acb-aef5-44e7f208b05d","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":198,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"3be2daea-6be7-46ac-b54b-f84269b9f34c","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":198,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"4d3a6901-c411-4547-b069-fbd30413d94e","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":198,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"00bc5640-c975-4216-a3d6-447efc713ec9","block_type":"box","text":"analyses of proposals.","page_number":198,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"0cf4a6a4-f710-4cd6-b230-2692bf925d6e","block_type":"box","text":"Mergers and acquisitions","page_number":198,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"a791dfd9-9c93-4392-8b97-740f245182eb","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":198,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"d20ee604-63c5-4dd4-8934-c747e1ca7eb6","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":198,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"462297c8-b1fe-47d2-8b09-cc9e674dce9a","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":198,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"bc2abd9f-7ae7-40de-b9e1-e73d429a9040","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":198,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"2f32cb12-ee79-45c2-80f3-5c138d1a52eb","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":198,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"2d6c4426-da5d-4946-ac77-c5a7181c53a0","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":198,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"8e1f57f2-0fb7-47f7-92f3-9d26d9c55b63","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":198,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"272bf4b8-b9da-427d-8499-7f573282bb79","block_type":"box","text":"Anti-takeover defenses","page_number":198,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"6a1fa756-98cb-4364-855b-1067304a82f2","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":198,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"ca695014-9e6d-448b-944b-b2f3a313116e","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":198,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"d0d8bd3a-8b6a-417d-87b6-66839543dcda","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":198,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"bc314146-c1aa-497a-9bd7-25b25832c915","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":198,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"44054117-2c1a-4bbf-9239-4c0847826d17","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":198,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"3180d738-552b-4dcc-91b1-141ee4676c54","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":198,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"7931f478-ac8d-4e3a-8e15-446c199a20a9","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":198,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"aa22835d-524f-465a-9dc9-1268f4093d78","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":198,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"c1b3ddbd-d95d-4e86-b1d4-0bdc9e28024d","block_type":"box","text":"Shareholder activism","page_number":198,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"f6c8e275-cab9-4cb5-8e5c-5a8ef0c9678e","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":198,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"d0a7b5dc-ee0e-49ca-9ba8-551802b96f40","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":198,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"fd25ca55-e22c-4f49-9245-158df0d3728e","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":198,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"b75b9080-5b63-4b27-901e-45c743d24092","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":198,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"43885de3-5104-435d-a01c-fc7ec02f48e6","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":198,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"ecf19c30-b935-4dc8-8f72-67c33b8cd3ff","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":198,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"8ebe6879-9908-4833-952b-8dbde19635ec","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":198,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"4a5d2d1c-11e3-465a-93c7-8a6123eb5eed","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":198,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"81effd37-7a84-46ce-aeea-723ab2a1f3d5","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":198,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"2c06f817-c9a0-4f2c-83b2-0eca9646a819","block_type":"box","text":"protecting shareholders’ interests.","page_number":198,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"7c8c75a5-25e1-49ad-adc5-62cbbea78725","block_type":"box","text":"Significant shareholders and related party transactions","page_number":198,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"0e9b2959-f9ca-4f5f-bc43-9c80561f5f0f","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":198,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"0e8daae5-19b9-482e-b5e9-e7aac08f8089","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":198,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"d1d9d418-15bd-410c-880d-ac29d7df7e50","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":198,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"70b3f123-c87d-4492-97d4-ade02adfb033","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":198,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"293d2628-b3e3-445a-aa0e-578d073fd1d6","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":198,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"fcd9092e-11e9-4151-b2b2-97bd0224505c","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":198,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"329dd6f4-c4f7-4ddf-a26d-479eadd92e2f","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":198,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"de0245d3-1005-4ef3-85c7-df6e28e5c904","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":198,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"16d24925-d593-4810-a564-388ead4d7d85","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":198,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"dfe14ffb-3f68-47b0-a9b3-8de4c450daa4","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":198,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"51e7ec46-2b79-4541-b07e-9219067af914","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":198,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"83b1d8b2-fca4-4807-b544-151951fdb249","block_type":"box","text":"audit.","page_number":198,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"8d1d3492-f5b4-44c6-9ae5-b4171cdeb623","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":198,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"42495ff7-233f-4d49-8391-c1aed44428b6","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":198,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"5858b1e2-ab6c-4dd2-b245-079494601407","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":198,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"271f1d99-97d3-495c-bb8a-58a6016e4bb5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"697a56f6-3f5e-492a-b163-e2ff0941783e","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":198,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"066bd892-8183-4de1-b999-d1e86290ca1a","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f84cd8e5-11ce-4eab-ac07-d76e8842cf9b","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":199,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"232d9133-5046-45b9-bb5d-cd2fab58398d","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":199,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"e79b4cc7-298a-48a7-b1c7-9aedd182685b","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":199,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"c2a812be-411c-436e-a95d-25ff3fe91c93","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":199,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"2912f6f9-0eb5-4b0f-952d-de3d67badd5b","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":199,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"3fa96ae1-4c59-4a55-8948-deeba732fee6","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":199,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"1f543059-9310-4538-b5f9-cce35ce7d709","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":199,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"d8dc8804-6ed4-47dd-8229-f29606214d04","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":199,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"0817816f-e73f-4cc5-91a5-a086fefec3f1","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":199,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"1aa15c36-9a50-4afe-a16b-0c69b064b195","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":199,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"258ceb83-6402-4430-b0f1-068ef2cf4745","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":199,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"65ca308a-1c65-4715-915b-7fd5873f08ef","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":199,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"0e79a7f5-9a3a-48af-93ff-35d39a549200","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":199,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"6bff03a6-5aef-4bfc-9c07-4a6877e50e6b","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":199,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"04655aa7-b852-45be-ba28-f306c3d6643d","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":199,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"a4ba0108-19c3-4b40-ae60-1a5eb5f745f7","block_type":"box","text":"9","page_number":199,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"d3042b7b-899a-4372-98dc-6dadbfa06eef","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":199,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"7e4f1daf-bbf5-4d14-b4be-4f09e8dc7400","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":199,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"1734c1ed-9d8a-4324-8739-c9ce41e806d5","block_type":"box","text":"standards specified by policy makers.","page_number":199,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"7b00304d-3199-45db-8075-ecbf106fec99","block_type":"box","text":"10","page_number":199,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"4a61ed56-4991-4152-89ee-64af13730c15","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":199,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"ceb22682-709d-4fb5-a4a0-76c3603816a9","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":199,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"5efd49ce-f0e9-42e8-ae8d-ef08825156d2","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":199,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"44a15871-bfd7-447a-9096-cbbdc8c5c817","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":199,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"698a9380-7a8a-4ddb-bb9e-9c8ee1258319","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":199,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"92de9952-0749-4b03-a4d2-9cabd6e00ad5","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":199,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"67f4833f-80f7-4905-88fc-9f49d7fe04ef","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":199,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"16c60951-9ca0-465c-af4c-334832551cf3","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":199,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"ad8e3f87-447c-4117-848a-db8d7c448448","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":199,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"59b7d739-6416-41a0-a782-9c493e5ba572","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":199,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"f016999a-d002-4b99-9bf5-9b14772cc9fa","block_type":"box","text":"remained independent.","page_number":199,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"2c81020f-6d7c-4cc5-97b1-81cfadc37102","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":199,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"0aa8896e-2314-47be-90d6-e7eee51e54fc","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":199,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"8ac1ddb1-2ed1-4ac1-8ead-83e35e59ec2e","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":199,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"897ed7c4-7b64-491a-aeb2-d97f78574413","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":199,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"1c49235c-a122-427c-b4e2-ba007be309b1","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":199,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"9b575680-8f0f-4b11-a2e5-1a2acaad86c5","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":199,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"8ad677cd-4cfd-4068-bd7d-063c270b1ac4","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":199,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"447a4101-f66b-4212-8298-1485f0abd3fd","block_type":"box","text":"General shareholder meetings","page_number":199,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"a37229a6-d8a2-46ec-97a3-122689d96fbb","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":199,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"6463ddee-1ac8-4ff7-9650-8efa71b8eb2b","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":199,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"0e600ab8-599c-45a5-8472-d1ab21bbd134","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":199,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"f37c7b13-c5a5-435f-bafd-728aa63d5a9f","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":199,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"1d75b252-ed02-4cb1-a9d7-fc8f7c82032d","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":199,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"cb836e03-1e1d-467e-9954-8be94405ac2e","block_type":"box","text":"an in-person meeting.","page_number":199,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"2040104e-a9d4-4253-81f3-c14ada240b6e","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":199,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"aabd9e3c-c97e-4443-bb25-c722ac47d7ff","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":199,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"d3ecd9b0-2680-4e88-a954-037a5c278709","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":199,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"3d126bdd-1ac6-403c-ae96-bb149fbd7824","block_type":"box","text":"par ticipation.","page_number":199,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"57414260-df05-437e-8285-ff1c8bc05bdc","block_type":"box","text":"9","page_number":199,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"94e589e8-f74b-4aa6-af1e-ca9c9b2ea53a","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":199,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"7de8d97c-ad4f-4553-b0c1-7a78a4a0ec0f","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":199,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"d0b448e0-656c-4dae-8057-b156c8b27e4a","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":199,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"1c576847-8523-4d22-b83e-9d503ab5ac12","block_type":"box","text":"Disclosures.”","page_number":199,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"8e09c41a-889d-4541-8a1f-3d61acdbaffa","block_type":"box","text":"10","page_number":199,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"308ca2ca-0657-481e-b5e2-765f9dfca73d","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":199,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"90f6360e-37b5-4653-8952-9bc70a27597d","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":199,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"8594cfb3-988c-45c4-94f9-3cc35a813d21","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":199,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"365ee489-33b8-498a-9bc2-57f10ea041fc","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"7f0f7369-56b7-4516-8720-8c4743e3ed65","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":199,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"44b48cd0-e4d6-4845-8043-55b26f6eae50","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a49f3515-256e-429c-b73f-5ceca920cb44","block_type":"box","text":"Bylaw amendments","page_number":200,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"74975e56-a833-4888-b7bf-e0679a234459","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":200,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"f12a016d-235e-425e-a2a5-e2912d5bad09","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":200,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"91877b9d-79f6-485f-b662-a49c1a18ea73","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":200,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"70d5b91e-c4ed-4a63-b84a-75cec5fa16fa","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":200,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"33f0f645-1ac8-4bce-abc3-62d68316b210","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":200,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"107c3a19-35cc-47ab-89ff-429103312b0e","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":200,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"3036d801-de3a-4ebd-8a81-fbe7e80f7ed1","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":200,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"44dacfac-30dd-487e-b5ab-d79e2719942e","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":200,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"672f7447-44b7-46a9-8a01-801ac0a19304","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":200,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"293c282f-ce02-4f27-b492-bfb7201822ae","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":200,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"23934308-9645-4f64-84e8-1a1283ff25f4","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":200,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"405dd7ba-f84c-4b06-abd5-32e0acafd547","block_type":"box","text":"nomination process.","page_number":200,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"18e5dbce-a923-46e7-8dc4-f08f8ea7aa44","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":200,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"0c9fc1d6-76b7-461f-b0dd-c3dd78db3c3a","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":200,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"5b29c58d-8144-474d-8b46-15ea0ec6b7c6","block_type":"box","text":"Change of domicile","page_number":200,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"17507040-1f83-4a89-a8d5-5c079f852f06","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":200,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"97706c64-8a61-4470-858e-075f6508cc92","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":200,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"e2fd5c95-773c-4ad4-b8fd-db8712ce8c4c","block_type":"box","text":"immaterial.","page_number":200,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"5519e458-a979-40ca-ac25-36a9f8400847","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":200,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"b769b52b-fac0-4384-871b-7cf556292125","block_type":"box","text":"with our clients’ financial interests.","page_number":200,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"b1327530-4579-4853-998a-a974e9984a8c","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":200,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"2e183f89-9c2f-4539-b834-ec738f0d6401","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":200,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"8f333a90-2284-4827-97a8-e4d2dd3b9552","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":200,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"e6d71651-628f-4e73-8a4c-6c34c57714c5","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":200,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"e852666e-5a70-4540-a6f8-7649bf209453","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":200,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"2e37ddd2-642b-482a-a2d7-9c365ee20105","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":200,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"7e0becd7-6610-456b-8d9d-382528603002","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":200,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"67d8be89-3cfa-46ae-aeef-0103da6dac14","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":200,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"f9d30ca7-4e3a-4ff3-815a-18e6ff92268e","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":200,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"ef6bdb26-ceb4-4e12-91dd-2bab0c903714","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":200,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"c22d04b2-eaad-4e5d-9509-087d93d2f4ae","block_type":"box","text":"relevant to a company’s business.","page_number":200,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"22966437-d95a-4ef3-bfe0-ef381c39c345","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":200,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"c9dd340f-7569-414c-8b43-71f58f91e9e0","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":200,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"2855e1c4-52d1-4ba6-8ae7-33b1c1405f0a","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":200,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"ee250687-89a8-49d9-9fd7-c3255f3bcf20","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":200,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"23fa6090-2de9-45d8-9843-616c0d29d592","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":200,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"9238e6d8-d514-4c12-a913-bb52dd85cae8","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":200,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"c1687add-075f-4ac7-9d3a-9c04dbb1aafe","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":200,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"000d003e-fd5a-49d1-9494-2700cc8ae335","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":200,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"498819ab-5af3-483f-9ca1-c0f9360c553e","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":200,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"ee258a71-80df-428a-9ad6-db54fb25fa7d","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":200,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"08dd1d71-47e1-4724-b25d-da7669fbc306","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":200,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"50eafaf4-f030-42da-9784-c355d4f56d08","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":200,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"179f5621-60e2-45c8-bc66-0822a2d639eb","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":200,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"faf1af08-515b-4a2c-aca9-922ad2390789","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":200,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"20b137bd-4d91-499f-ba75-e4b9dffc591e","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":200,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"4630898b-6bae-411b-a51b-0b73262bf2eb","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":200,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"bed7722c-bb3e-4051-b566-60eacd7cc7fc","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":200,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"1c479e66-b9ae-425b-a636-adddc24b75ea","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":200,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"09f72dd5-6b7a-4c5f-982e-537d45bbba95","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":200,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"f8b6339f-f4d5-4e53-9493-ac856a9078ec","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":200,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"0ef77f7d-dde8-4502-86cd-6c88e094d664","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"54e89379-6769-49d5-9706-ba9534793a36","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":200,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"eecf1f1c-41ff-4b3c-b99a-a44e6fc606d5","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2c180996-d821-4560-9f57-f79cbca06ce3","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":201,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"eb876a57-0a1a-4a25-9a0a-74d445e40ad3","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":201,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"4f21fbc3-135d-4165-86c0-d8f9af1756e7","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":201,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"a3752f9e-139c-45e2-b2d7-ac967af29bdb","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":201,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"a6ab2881-46fd-4050-b3af-b6d3388194e0","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":201,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"c57050c5-3c93-4960-a34b-78a0d714c2b9","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":201,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"a42fa7e9-3a1c-4d9e-9802-0b131a4a835e","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":201,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"1aabcc3e-5377-4000-bbc9-52e7e24f158a","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":201,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"215d79a2-a2f9-4bbf-848d-6ff6858482a9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b31b5e25-22c9-480a-9406-7455f41cadb1","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":201,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"a8d2b44b-80b2-4caa-a212-1098604cb6fd","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5b291a06-7225-41c5-8bd9-20ca8bf24e2b","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":202,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"33aa439d-9e18-472c-8e0a-549b5905433a","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":202,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"9214fb0b-667c-49ed-a8b7-7a3460f00c12","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":202,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"b971f2f3-1386-49a3-a09c-2391c014f494","block_type":"box","text":"11","page_number":202,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"8034b790-f38c-4b52-a03c-3033f9c3ea70","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":202,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"b5e39bd8-8af4-4102-8292-3d0d0b573768","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":202,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"2c4d659d-1434-4544-b69e-1fd4e8139c91","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":202,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"7ca7f513-c50d-45b6-ba98-f5b96a7fb9c2","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":202,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"f9c9430e-288b-4410-83d5-7f216e6dbe9f","block_type":"box","text":"regulatory requirements.","page_number":202,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"fad2e16a-dbb5-4f97-9a04-7d6df0015e3f","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":202,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"7d184bce-4a3d-40de-904a-fbb25d3fa281","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":202,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"2240603a-3ec6-4ae6-91fd-380c093551b3","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":202,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"a7d10ddd-e961-406a-be8f-fb34998532ff","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":202,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"4f915e2f-ee91-4db1-906f-45db6c7b1152","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":202,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"73b8171b-f7fc-43e1-bea3-b3ff97ac6df8","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":202,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"25a77724-f997-47e4-af63-6e0ba952c32e","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":202,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"8dab24de-ee51-427e-b0d0-8ae7c9160351","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":202,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"c640f28a-a2db-4a42-9fde-b68d690e5d27","block_type":"box","text":"returns.","page_number":202,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"69c42c02-ff7f-44ea-9437-31fc43b30cbc","block_type":"box","text":"KEY STAKEHOLDERS","page_number":202,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"9d9cca74-419e-44a3-bb27-a219d470d282","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":202,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"e68c631b-9112-4f09-a701-2c2e560e59a7","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":202,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"d49c156f-fe92-4742-9a37-7680c8738276","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":202,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"d32468c7-69fa-41d4-9309-d6d11ce234ec","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":202,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"90f31f2b-7481-4371-b2e7-ccee131c0358","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":202,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"aa3bff0f-e415-49d8-9828-6557f1558775","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":202,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"83649ac6-b0b1-4e41-ae99-12d763287e48","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":202,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"343491a1-297c-4699-b5ef-df46d0c327b4","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":202,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"dabbb8ac-1249-48d7-bada-b8d7c878bc57","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":202,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"f9c9988b-2ab7-48ec-9924-a4bfe88cee97","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":202,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"b47d4278-46c9-4129-9615-7ce420f402a4","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":202,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"7fec150b-8546-4cf9-9049-dde141b30d0d","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":202,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"40667ba7-02ef-498a-aa40-d415406113a3","block_type":"box","text":"i.e.","page_number":202,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"f61a475c-5a8d-42d6-be53-6bc0e6bb2772","block_type":"box","text":", one in which global","page_number":202,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"390ec6f3-8beb-443f-b220-3e9d021e0714","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":202,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"70a41908-6e16-4136-833f-546239e8dab5","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":202,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"44de9e01-7d77-4bee-adbf-cdc79ca58579","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":202,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"00e8692d-60e4-4981-b052-14224245f577","block_type":"box","text":"client.","page_number":202,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"ba893a98-3426-4705-9dc6-dcd39b93aff7","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":202,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"8dadc93f-f7eb-406a-8423-c594ea5497de","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":202,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"df08443e-db80-4296-b289-b142345b0b11","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":202,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"20289f6a-c194-4ad9-90ce-0daef284b141","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":202,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"a8841038-0a5c-4140-8cf3-3dea187bc5f3","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":202,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"70bce751-fe0b-4afd-9a4f-9b6a2839e5c4","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":202,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"5add8b8b-222b-495a-8b26-0940d95052c2","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":202,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"5ad79a48-a303-4e83-b701-e5a20632788d","block_type":"box","text":"1 and 2 emissions.","page_number":202,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"b5b79860-3e35-49ec-bbb2-fba99834e357","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":202,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"f814e3f2-994c-4fe8-9e4e-d90e46ca712b","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":202,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"3bc1fed0-6807-4bfa-9ed0-2619e0f2dfb1","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":202,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"9f64d189-b4b4-434f-8f38-90a5200cb828","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":202,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"41e0950e-0f81-4521-9553-619c2bf084c1","block_type":"box","text":"11","page_number":202,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"76069f6a-55f6-4d0e-a0df-745013751a1d","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":202,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"1e934175-26e5-4b1e-80c3-123b0670185d","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":202,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"2d0207e5-427d-4602-9860-7d4025207f26","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":202,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"a03d28b0-af1e-4b40-91ce-a0a7c30bd2ba","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":202,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"af6e719f-cc32-4fca-982b-7542cf5ec53b","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":202,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"ec60c3ca-7e8d-421c-a861-02b3a576ca36","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":202,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"c6848c50-74a8-459b-ae32-ca3758063ef1","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":202,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"b2e28b98-19fb-47c0-84ef-25cc87af488a","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":202,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"711a955e-c49f-4887-8313-f2e4e2af2842","block_type":"box","text":"sound governance framework.","page_number":202,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"9f9286a9-78ef-4aee-92cd-b3175a905dd6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"87b6a821-bf88-444e-b5de-6ec972b941f1","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":202,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"9819fab5-8dbe-4f47-8057-af8d8ff44734","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c903521d-ab2f-4466-9abb-002d3f53fb7d","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":203,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"f8ff8c34-4284-438a-9a8d-da6df29771fa","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":203,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"d33e2e82-9024-406a-9442-8fabb5266073","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":203,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"676eba43-a3d9-4421-8c92-d9bc5317fd8c","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":203,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"d22d90c9-8138-4dd9-b3cc-7f06a8daf8b1","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":203,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"921ca2b4-f689-4e03-b55f-f83ed30fdd23","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":203,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"c00c63a5-363b-4b47-af94-0322243a4524","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"29feb16a-92a2-4d40-9b48-9045011cae3f","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"3e0928a4-c9f6-4e38-8ae5-8081964a5b35","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fb0f92c5-5709-48eb-8691-6cfd3ae96500","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":204,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"eb8a18c0-5e68-40fc-8103-66813b0b8be7","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":204,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"4318bb0e-4f1a-464d-8b9d-75c00724217a","block_type":"box","text":"Oversight","page_number":204,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"59c36751-271e-44b9-a9cc-5fb5cc968e28","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":204,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"d7999987-af65-4b1f-aac6-e5498fd0dbc4","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":204,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"1aa79270-d0c9-4dca-b0c4-7862ace60ecb","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":204,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"8b345aa9-b1c0-4ce7-a7e5-e0eaac9850c1","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":204,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"85770e21-a510-44b4-b094-bc2195a702f0","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":204,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"c08b9c30-c8a7-4a74-9e99-2b069eac93c3","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":204,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"a032ae96-1361-4651-b958-28972401dd48","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":204,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"6b6641b8-fac2-4350-96b8-523fa5cd9201","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":204,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"2396e328-a48a-493b-806e-c726bdbb90d3","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":204,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"3c1993cf-718a-4dea-b5fd-e073bedfd764","block_type":"box","text":"relevant active equity investors.","page_number":204,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"f22dadf9-8de6-420a-b6db-503d5041f12c","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":204,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"78796fb8-a0e5-4043-8df4-cf3c184e2da6","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":204,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"bf3167ef-a278-496b-9fdc-f1edf6e9a776","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":204,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"93b8f89a-c50e-4c1e-8520-1b5b65a64f31","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":204,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"b8fdb95e-8ce6-45cb-8afb-5e90738cfe07","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":204,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"35f1aca6-d4ab-4142-bcf6-7b1877fdf417","block_type":"box","text":"third-par ty vote services providers” below).","page_number":204,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"8eb149cb-9dfd-46be-a877-e3a8df6633e6","block_type":"box","text":"Voting guidelines and vote execution","page_number":204,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"c43c36d5-062e-4b06-8f9e-0b2a24c8a25f","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":204,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"d8023c35-ac69-4fdb-8d05-83c0f775f79b","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":204,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"29ae7ff1-ed67-4613-b335-e6f97eb7e4dc","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":204,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"80d99da8-5a5d-464e-8aa5-8175faa26027","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":204,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"01af5596-bd5e-4d84-a4ba-a32525b9ed5c","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":204,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"4c730b0f-6fcf-4e28-84e7-f0a4759be1a6","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":204,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"eab50ef5-4527-454e-9624-96d8e4142882","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":204,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"4b93f070-c290-4007-be4d-b6bdce3db79c","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":204,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"91a98651-312b-4f03-a99c-8a5abece2100","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":204,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"f42195aa-2f48-4db6-8b58-d6e26f6f2a32","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":204,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"308a62c6-70ed-4c1f-8dbf-d3f343a0b57d","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":204,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"88540fa6-734a-4f44-8dd8-9517e92b0f60","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":204,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"63ff1fc8-b58e-4d2f-8b64-ee9ded3aeb74","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":204,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"567bb153-698e-4054-897e-31cd408d2e28","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":204,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"d5678277-4c94-4bdb-9b8d-cb99600ab033","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":204,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"3b1ae8e7-617d-46b4-883c-5c592f0ed3eb","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":204,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"d77ec6bf-1009-4e7c-9349-f4a3bde73176","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":204,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"28eb19d5-88c3-4aa8-94c8-9c3e89ccaeee","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":204,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"7d9112af-cbb6-4d91-b253-78266b1f2bda","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":204,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"c49d21b2-8c53-443e-8bde-9dfcb83b0278","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":204,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"371e3378-534f-4212-98d4-ea4aeb326864","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":204,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"bc8a5c41-af84-4364-bb87-f87cc74a6408","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":204,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"76351095-bf80-49fb-8f0c-8aa22d531395","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":204,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"771fb780-7f7e-4271-8353-f95dc934becf","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":204,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"116deea6-6d49-466c-9166-2acc97222757","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":204,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"5530643c-eb5e-4956-9467-d83ed5075894","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":204,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"a65c4b4c-9c47-4be8-8e80-397fedc2e591","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":204,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"44daaf1c-5203-4ca5-b2c6-f14063dd79f4","block_type":"box","text":"(including but not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising","page_number":204,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"e181a8bd-30ff-4af8-8cd7-49dea070865e","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":204,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"b721efb2-4922-4522-8740-e861304718b4","block_type":"box","text":"Voting Choice","page_number":204,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"d0b287ff-34e9-441e-aaba-2852f158d28c","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":204,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"21aafd8c-a08a-4aa9-ad69-f7cd841e93c7","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":204,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"0e91660a-2275-401b-a445-bd8bd1d51c09","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"54a4b297-cf45-46e0-8b5f-8643705b829c","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":204,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"09bbdb3e-e0f0-46c9-9b3e-6ba7978f9fa5","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":204,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3a127cb5-d06f-48d5-8bfc-115ea9523dbc","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":205,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"35637b59-48cc-4262-8169-a2fca853ce74","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":205,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"014e8174-11fc-4259-95ad-2533e4104672","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":205,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"0895b004-6a0c-4c10-a10e-77c5df45a4ec","block_type":"box","text":"strategies.","page_number":205,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"3e50ecaf-05ea-43db-a2e8-f29866e12cf8","block_type":"box","text":"12","page_number":205,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"1acaf448-876f-4153-8984-77bb2f034b9d","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":205,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"0c8c920e-65fe-4520-9b2b-b511a6440444","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":205,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"8f98d5fb-d680-446a-8826-effda1419094","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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All other trademarks are those of their respective owners.","page_number":207,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"0620932c-72f0-4641-aa45-c8a3d50d973f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ab466a39-baca-4a0e-8b99-a3306699e4bc","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":207,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"0059388b-8929-4e4b-bbdb-691e3581a5b4","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":207,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8fbab986-0b68-4e00-977a-1f2cbc940ae8","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":208,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"1a45d04f-71b1-4084-b7ad-a4caed02ed0e","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund 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Funds","page_number":208,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"03e95ecf-eda4-4d29-a8f9-ac46811c8b7c","block_type":"box","text":"□","page_number":208,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"7d1d6f41-72ff-453f-9e69-0f22abcb4dd9","block_type":"box","text":"Other","page_number":208,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"662d917e-c813-46ab-8a54-5f84a3a09b08","block_type":"box","text":"Objective and Scope","page_number":208,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"fdf05963-334d-43ec-a7d9-862d6530b0aa","block_type":"box","text":"Set for th below is the Index Equity Fund Proxy Voting Policy.","page_number":208,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"a5de713c-b047-4a28-b723-b28c6b7b60ce","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":208,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"9d2be6cf-af44-4a06-9905-193c46c0a2d4","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of cer tain open-end funds (the “Funds”) advised by","page_number":208,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"ee33632c-2831-4c44-99cd-d1e6fffb3742","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":208,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"50fa73ba-d7ed-4aaf-bfc2-56485574b376","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":208,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"109d7c31-e49c-432e-8214-41cd24dba5d8","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":208,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"cd536bce-53c9-499c-b051-7ce1aa46f7b8","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":208,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"fb4abc26-2394-4784-855b-fb9523090738","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":208,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"edd0ba30-0354-4698-839f-93254a3072ea","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":208,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"0b1a9a3b-abe8-4d0a-be48-cf66446aa0ff","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":208,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"b7027a9a-4b65-40d5-8331-7e6b36d2a17c","block_type":"box","text":"the iShares Core S&P 500 ETF. 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The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":208,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"bb79d810-b1ce-450f-8206-7ca87fc8a50f","block_type":"box","text":"connection with proxy voting.","page_number":208,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"b2680c46-e96d-43b8-88e1-b525fae2e878","block_type":"box","text":"Reports to the Board","page_number":208,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"61dcc48e-1790-4efc-aa0e-12e82c54fb12","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":208,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"04e6d8ff-c9d2-4279-aab1-a7ec140a62a8","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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Our role, on behalf of clients as long-term investors, is to better","page_number":212,"box":{"x":69,"y":526,"width":840,"height":11}},{"id":"7f62c253-53b1-4dd5-9e6c-b19aaf408b10","block_type":"box","text":"understand how corporate leadership is managing material risks and capitalizing on oppor tunities to help protect and","page_number":212,"box":{"x":69,"y":541,"width":835,"height":11}},{"id":"0d888e71-32da-4cb1-b705-36968f6d050e","block_type":"box","text":"enhance the company’s ability to deliver long-term financial returns.","page_number":212,"box":{"x":69,"y":556,"width":481,"height":11}},{"id":"e0ce3cd3-332f-4182-a19d-9dc39b47767c","block_type":"box","text":"STEWARDSHIP IN PRACTICE","page_number":212,"box":{"x":384,"y":586,"width":210,"height":9}},{"id":"9f68f1cb-c033-41b4-8e5c-daf4092a7cff","block_type":"box","text":"The assets BlackRock manages belong to our clients, which include public and private pension plans, insurers,","page_number":212,"box":{"x":101,"y":609,"width":791,"height":11}},{"id":"a24f5b00-bf0c-433e-8b47-f29941bb1809","block_type":"box","text":"official institutions, endowments, universities, charities, family offices, wealth managers, and ultimately, the","page_number":212,"box":{"x":69,"y":624,"width":772,"height":11}},{"id":"7180f643-d553-4881-a6bf-3e3aa469ed40","block_type":"box","text":"individual investors that they serve. 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These are topics that shareholders may have","page_number":213,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"b2797ab5-6a14-4892-9561-47a0919326d3","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":213,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"74f09731-3993-4b32-bebe-174d67ef654a","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":213,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"474235a1-939c-475e-91e7-500e0845aec2","block_type":"box","text":"4","page_number":213,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"cce76e89-b7a7-48b2-b8f6-4414894b25ab","block_type":"box","text":"3","page_number":213,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"df67bfc9-2ac6-4d61-9f2e-ba03b1f6ffa7","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":213,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"5dc2cefd-1abb-429e-8951-46362c4caf54","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":213,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"46795077-f6ea-41f5-94d2-d26d56938ff0","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":213,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"d007be32-a1bd-45f1-a575-a21ec70ca50d","block_type":"box","text":"4","page_number":213,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"450c46dc-e6c7-4054-925f-337dcbe8b450","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":213,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"0e0e2c9b-acf5-4d81-a90c-377920b43094","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":213,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"3fe1e32f-437d-403d-a203-c8ec5f05f072","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":213,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"7d16ff38-fa0b-4d9b-8cd8-98f161dbf175","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":213,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"31ff8de4-a407-4cd1-815b-292ac5ef4665","block_type":"box","text":"guidelines.","page_number":213,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"2a7083e0-9647-4789-b1f6-9087785eaee2","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d7f43121-27a4-4861-8594-f7a647c687ad","block_type":"box","text":"Global Principles | 4","page_number":213,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"928ecd8e-2c1a-4e5d-bd8a-9bceba038730","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":213,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c5316fe1-28a6-41a6-99a6-cb219971c7a8","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":214,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"cbae1012-dffe-420e-9187-c9665ee2df80","block_type":"box","text":"Oversight role of the board","page_number":214,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"5df4c926-2672-4348-8a30-fa09e6f06002","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":214,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"733a7da6-76c2-47c2-991f-8fd75269092d","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":214,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"9403a32a-d9ce-4b4b-a54e-a11a1f23efa6","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":214,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"b3358833-b72b-4cab-b811-4302582b2b09","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":214,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"58d59942-4e71-4a1a-959f-9f2cdb7ea2cd","block_type":"box","text":"long-term financial per formance.","page_number":214,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"3aef7e86-3035-4440-8e44-c37a2577d8f3","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":214,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"9cb11321-e2e4-497d-b347-9f34dee70718","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":214,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"6914ce0a-5ce6-46cb-911e-cf7f105788c4","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":214,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"8d54dd13-57c8-4a81-899d-77a2f528f19e","block_type":"box","text":"the business environment in which a company is operating.","page_number":214,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"f2c3c4a0-d211-43cd-a770-2c087ee711fc","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":214,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"57befd55-d50f-4bae-b407-498e65fd624b","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":214,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"fc141565-aedd-4032-bf0c-0159d9c9f7f1","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":214,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"cad13db0-ab6b-4cbe-b856-0b1cb48aa558","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":214,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"635fb1fb-4c14-42e9-858e-80c11df57462","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":214,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"32db6193-fa06-43f1-a85e-036186bdb0a4","block_type":"box","text":"mitigating such risks.","page_number":214,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"4fc1d690-d03b-4143-bba2-672bb4b97065","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":214,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"4d908285-99f0-42b3-9bb0-108cb33b2134","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":214,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"93abd490-6aff-4b1f-b8ef-47a2397315e4","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":214,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"620d0e28-e25e-4698-b34e-ee1737ab15ca","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":214,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"b97b5a35-3365-446c-a614-2a51686927dd","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":214,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"f283294b-3a43-45b4-a545-5692fc8612f4","block_type":"box","text":"strategy.","page_number":214,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"49a79b38-24a4-4c5c-8cf7-8a24e2f33b75","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":214,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"ed6bf082-803b-4c14-bee4-723d989ecf30","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":214,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"273892fa-8433-483a-a39b-d2814164c249","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":214,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"1df50d2b-39a7-4c6d-8295-80a347a8bad3","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":214,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"36fc8f9f-2193-4873-b547-ffcb29e701c9","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":214,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"68107ede-79b5-40a3-a106-bd1b3aa06655","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":214,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"50b41301-c99b-4e99-8d2c-be9940cd4e39","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":214,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"4d39bdb8-800e-4ce3-b251-db003aaa6ca9","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":214,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"721aee6b-1f87-48d6-856b-b2b26499681d","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":214,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"e53b67c7-7b2e-47d2-a9f1-7b8443f8923f","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":214,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"4bf1c783-e1e1-42bc-951f-1127a693af4d","block_type":"box","text":"Regular accountability through director elections","page_number":214,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"08f986a6-da2a-4ad2-a4a5-b8fec3834ede","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":214,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"6497b78e-1304-42a9-821c-2f72ccda4d89","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":214,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"8fea37cc-2d2b-407c-a4ad-b88d733033ee","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":214,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"9f6d55ca-8b39-4b37-abca-1783e73a38d4","block_type":"box","text":"5","page_number":214,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"25d9736e-f82d-47fa-abaf-d10fd6b889ba","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":214,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"128970f6-8ae6-49fd-8bbe-1bee123a819a","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":214,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"e9ca7683-5498-4270-a4ca-2707cd084a4a","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":214,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"e63d463f-c729-4aaf-8d27-e6d236f94d22","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":214,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"82907e9d-7887-4572-8990-bdc608925206","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":214,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"4794293f-a311-4645-9cb2-cc43c2ef78d2","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":214,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"6f18105a-3999-49b4-a14d-34f016120657","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":214,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"2e8f654f-6f8e-4c7d-a868-be140da2ae13","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":214,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"bc80a379-ca9e-4429-ab90-03be96781f8b","block_type":"box","text":"5","page_number":214,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"f77504fe-89be-4886-bc95-7b37f3f4ddc8","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":214,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"de4961f1-f44e-4a06-9a22-ab688e1dacee","block_type":"box","text":"market regulation or voluntary best practice.","page_number":214,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"e1a78131-ca03-466d-91cc-64a34c371c48","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"bc9b700a-2077-4631-9581-77e41823bd12","block_type":"box","text":"Global Principles | 5","page_number":214,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"3a663072-a21e-4da2-98aa-468e2f9d9d01","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":214,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d483de99-c337-444b-9fc2-a2030f9cb254","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":215,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"51bfdf1b-937b-4079-aefa-9c1acf14b02c","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":215,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"e2e44c35-c824-4e83-9056-d1e7d796a423","block_type":"box","text":"recently.","page_number":215,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"4ba73958-ce69-4c7e-854d-b0b21c127644","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":215,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"1a03aaf5-c750-43d6-a977-5a3ac1aa4385","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":215,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"ffd82012-c8a3-4400-ab41-7fd7d6ed7560","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":215,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"bd030944-0ffa-40c3-9b00-ebf4894bd4e5","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":215,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"e449f3d6-6c84-4a8d-bf5b-10a732c3a05c","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":215,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"dcb8f314-febd-4665-9de5-24af6dcb260d","block_type":"box","text":"Director independence","page_number":215,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"92ec749b-86f7-43e5-a594-2380be51974a","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":215,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"03211fc4-fa84-440a-846c-662761d723a8","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":215,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"aa1183fd-8794-4bc1-b986-f7eb3f188811","block_type":"box","text":"6","page_number":215,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"abd34bf5-8c0d-47b4-ad55-d6ee0e2da567","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":215,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"0026c185-7d91-4c94-a957-544d6b0d5c07","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":215,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"e168b682-3803-4f2b-b979-a6d7246130fa","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":215,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"bfb40f7f-10d8-47f5-9f40-bf246cf4d9aa","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":215,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"4a47f34b-a761-43c1-8d03-a83d6e02a714","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":215,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"4fbde041-32d0-4c96-a251-729d2b52e567","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"7a822cd5-bedb-41a5-bb68-722942dde4c8","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":215,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"9b5d7fe2-59b8-40fa-9602-b1f8b363c36e","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"8b1e19a8-08ed-4ce4-8370-7a779468a0bb","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":215,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"c058987d-3177-4504-8499-6260adbe7791","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"4f41a7ad-99cf-4caa-a382-67ea233e3894","block_type":"box","text":"Interlocking directorates","page_number":215,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"1c05f82c-e527-4e61-a97c-4d3afa8476ab","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"92800f64-85c6-480c-965b-a0cc2b55ee8b","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":215,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"efebd718-7851-43b8-9c0f-98ed2149d259","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":215,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"809c759b-cf7e-41bc-8dbe-7b0b7e5d2e02","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":215,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"2d6ecf74-4ddf-47cc-ba50-59f091a90200","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":215,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"e6f936f1-989a-446e-af86-35fa11ff6683","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":215,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"2d76a828-a849-4fde-ab70-e21f6714a98f","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":215,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"b407d428-166c-4cbf-985d-63db0a79d540","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":215,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"603b4c7e-7bd8-4ddc-95fe-1ec9da7e7d9c","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":215,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"0f442f5e-cd52-48e0-9c96-b704792d4fa7","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":215,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"9a809846-8539-4a3b-81ec-26d8d1823f6b","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":215,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"04015995-ac31-400e-a3b2-858867e48e05","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":215,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"9e39f6c3-c122-4fc6-bb7a-eb5bfdff860d","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":215,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"2d8030ad-6eeb-4c58-82f0-b2e340830fde","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":215,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"8ce2fd38-b169-40cc-b6ff-fc2b5512a22a","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":215,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"94698254-fd10-4e78-a4cb-9bcaf49d65b2","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":215,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"0cfde965-8c67-4290-8b75-d9318b63aab0","block_type":"box","text":"Sufficient capacity","page_number":215,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"62aa6db7-afc8-46bb-a348-7e76db2b51bb","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":215,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"979f5d89-5f3b-4bdc-951a-fa5f67e42332","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":215,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"951d77f0-7fb7-4826-827e-00e95eaca84b","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":215,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"1a254921-30bd-4061-99dd-370f9c4ce73b","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":215,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"036971a9-d3ee-4018-b520-bda32ee699b9","block_type":"box","text":"Board composition","page_number":215,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"acf01273-3a9b-4085-93b2-cdee41e6a829","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":215,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"23e494a1-4416-44bf-b05f-92a7650a6636","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":215,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"a38dd61b-eab5-4de6-99ba-c54240c42c0e","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":215,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"f1ad89d3-a715-4927-ad06-e7fc1b0c4da3","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":215,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"b4799d74-4bf0-4517-b580-58b417006478","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":215,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"8ce104d9-67e5-47bb-843d-824987a2b420","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":215,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"1ff9707a-370c-45f6-8cde-f6daeb7b9045","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":215,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"e1e03640-dd14-4422-a4c7-cd093feb2b3c","block_type":"box","text":"6","page_number":215,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"2d1f2745-cefe-4c23-9f91-0eb2f94a27e2","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":215,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"f000785f-7776-44ca-8a47-7f603a64b593","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":215,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"b1678cf1-712d-4d7d-b3cb-bc02910231dc","block_type":"box","text":"BlackRock Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d4706eb3-570f-453d-ad8f-67f035b7a813","block_type":"box","text":"Global Principles | 6","page_number":215,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"659eeead-d237-4de1-bad7-bf45653a36b9","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":215,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b1b993ca-b0aa-44d2-bc40-538db9f3ae0f","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":216,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"d1d17cca-91bf-4a9a-873c-670891c46e1a","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":216,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"84f34323-016e-41ef-98f0-54eada38ebc6","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":216,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"5e63921b-8473-4118-aed9-7adeca6bd517","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":216,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"fc9e2e6c-e7d5-4ec1-bad8-4cdab01c77c0","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":216,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"46823ab3-90e5-43c5-b63d-2b332036bdca","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":216,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"ee18259a-5911-4158-a749-dd588e971e5e","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":216,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"bf8d86e1-cced-4b53-8a5e-8544104af048","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":216,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"871c0779-71df-4c2f-b5e1-e95950f5fcf8","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":216,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"aad680f6-e1cc-4067-adef-ad90643e6118","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":216,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"1f98e414-d4df-4dc2-ae3f-ef4c65f50fdf","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":216,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"b5d6412f-7bd4-4273-83d3-c7b3e3458b4f","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":216,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"b943c98b-cfff-4d76-a591-7b2be56571cc","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":216,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"98cdd4ff-2ecb-458f-a5dc-d8867416eec4","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":216,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"c89bce90-d3de-441e-982f-af356c72567d","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":216,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"226ffe3e-de61-4e38-a128-f83b334436b3","block_type":"box","text":"systems.","page_number":216,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"bb0fffb5-5913-4568-8976-0aa127595a77","block_type":"box","text":"7","page_number":216,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"841d1716-1bcf-4b0d-bc2b-08166291fd9a","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":216,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"63c92f0a-dcb2-4aa3-8f9b-dec58cada1cc","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":216,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"6f460eb8-980d-4d6c-a779-6fc7e828686f","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":216,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"ac96155b-5b7a-4a2c-85be-cd3981966a85","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":216,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"32b1bbc5-9430-41bf-bb75-6ecc31c87876","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":216,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"39fb5a9b-f8fe-4762-a545-e8898552e470","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":216,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"fb3c0d03-4254-41f7-b279-862768b92343","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":216,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"a19c3e46-6893-4bdf-b864-60dbcae49bf8","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":216,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"c8074abe-fe66-4b09-931f-a3f0b7474744","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":216,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"9b9398cd-c2dd-4175-8dbc-4b52cd50fd5d","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":216,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"bde9e784-bb6a-458f-8576-3c8341966d8b","block_type":"box","text":"or internal audit function.","page_number":216,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"cc88e77f-7904-4860-b862-a64564dbff77","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":216,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"b45439fe-dfea-4076-a5be-4f0f0d7eb118","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":216,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"ba1e9629-9b25-4a9d-a90d-078cfabe5b69","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":216,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"bc838fec-8b93-48f6-a6ec-8e6e8711de5d","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":216,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"bf96ec37-471c-4b8c-8c1a-b638ebd5c341","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":216,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"30ca4559-da54-4ea4-a06a-83abf76ad03b","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":216,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"010f32cd-0818-4d52-b21d-71d39aa3cf53","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":216,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"69f0028c-2173-4997-aa7a-2a4bde2b503c","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":216,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"3674c49c-4568-4c13-b1c0-92125b7cc50a","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":216,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"3648f7f5-e4e2-494d-abb9-4519a29974e1","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":216,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"6c51ea4c-04a3-43a8-aa49-59c507e3fdb8","block_type":"box","text":"risk.","page_number":216,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"b0caa283-974f-47c7-a864-56ba9dbe46e6","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":216,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"7e7d4591-f80b-4221-914f-e64df09fbb3b","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":216,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"3f1d8522-d7d2-4cfc-86dd-faabb9f80ae9","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":216,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"298f4ae5-97f1-400d-a909-16508af7213b","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":216,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"3166674f-e056-40be-9fb1-1c6b7284ccd0","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":216,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"be268c58-95d0-44a7-9e8a-ae6ee836196c","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":216,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"0589b450-3cc6-4155-b002-7f7b28d2db7c","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":216,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"be2ceda9-6367-47c2-8dcc-0511ac5afe86","block_type":"box","text":"7","page_number":216,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"a765490a-c416-4d8f-8a84-86e2e9d07213","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":216,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"5542073a-dfdf-4645-bad8-116af0e5465e","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":216,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"74e6269b-35ef-4f26-a7f9-6e36ebfb16f7","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":216,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"032b0a27-40eb-43ce-bc95-47ba923c7c50","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":216,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"b7f4ab44-741c-4d3a-b459-9e3438b15d71","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":216,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"2a23dd05-cb08-4c3c-9b37-275c014af064","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e54675cf-2979-45a5-ad80-4e29c5779044","block_type":"box","text":"Global Principles | 7","page_number":216,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"3a9e6e28-edee-46b4-8ac8-3a84872a10d3","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":216,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d450012d-9b2b-4fce-bce5-806e837d14b5","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":217,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"141a5c2e-3920-467a-87cc-1c508de8dceb","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":217,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"17e6028c-a72f-4d29-b528-cd6de63bcc23","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":217,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"a195f1ee-ffc1-4d5a-b306-19194b004a50","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":217,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"87ed9348-8693-49f0-a5f5-0d29d0a74500","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":217,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"462f4d0c-5770-415e-a42a-2b2e16805fc2","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":217,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"13c1d219-840a-4c25-a2a3-c3a603973de1","block_type":"box","text":"minimizing costs to shareholders.","page_number":217,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"48d4a8b7-3f73-4abc-ba50-e6450defd22a","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":217,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"9baa6d46-fa54-4d96-961f-17cb64f080f6","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":217,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"9728d2ac-4588-4cd0-998b-a7b2490a05de","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":217,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"7487e9c7-e3ee-494d-88dd-0286bb0f808e","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":217,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"337f0492-9709-4e1b-b3cc-ba748c56bb94","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":217,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"92cb7047-b222-4daa-8498-1b6312fc5f33","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":217,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"982e8ea8-76a7-4346-8928-37aa58c02bfd","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":217,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"3252f77f-ebd8-4f8b-b00f-0576d126e8be","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":217,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"2005f0a9-c999-40cb-8733-d795dc5cd9dd","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":217,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"6207cf64-975a-4e46-9a4b-f145f933390e","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":217,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"d7f73627-b36a-44b7-84f4-66b6e450a882","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":217,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"265b4e7b-3633-48e2-9a74-874a34f8d49f","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":217,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"c17d7634-6c20-4562-a5a1-6c6525244004","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":217,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"0e450dd6-4bb3-4aef-84de-698dabfe9d1a","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":217,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"164913de-47fb-41ba-808c-c7ee2903f0a7","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":217,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"adbb139a-5cf3-441c-8db9-d93e5d366d60","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":217,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"72ca0023-bc7f-44fa-8241-7e2fb6dd9a1d","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":217,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"b9fc719f-dbf5-4f5e-ad78-1f3009c5b829","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":217,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"64a7562a-c789-4951-a295-8736263f45b6","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":217,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"c399e9e4-109f-4301-9d6f-924a955a40ed","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":217,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"afc704ed-4d53-483c-8abb-d2d6f26f8d39","block_type":"box","text":"ownership.","page_number":217,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"de46dc7e-211b-4d9e-902c-9e90704f6013","block_type":"box","text":"8","page_number":217,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"abb6a62f-6860-4673-a7e8-8a3711595d30","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":217,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"32f03c68-0d89-4292-b366-7caf03e3734b","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":217,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"32c191a7-6ccc-4ce0-8e16-202ee5bd1624","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":217,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"ec3ef13b-69c1-497c-8484-7e9ba3134d0c","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":217,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"83b1ca07-de9f-4ecc-b384-a098cebec0b2","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":217,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"b5335343-5834-4b76-9525-4eb4f15e0607","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":217,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"096c6fc7-2b70-477a-827a-a00e11028076","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":217,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"bb7d3861-6f9b-45e6-84cb-dc023a0da1ed","block_type":"box","text":"results over a period of years.","page_number":217,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"a6668ffa-a9c8-4bb0-9354-993bd1292519","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":217,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"f6f588f8-d063-4024-941a-6a4e4e5b205e","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":217,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"90a45a29-526c-4f1d-afdc-09178e841112","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":217,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"e1dee5c6-7241-4777-b83b-3a7993ecb657","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":217,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"c1962da0-889e-4cfd-b659-4501c1816c8f","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":217,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"9e17d37e-d102-4e21-80ad-ba5e078c7afa","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":217,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"1ea44bcf-bb17-4cba-99fb-3d89ae70d87a","block_type":"box","text":"executive compensation strategies.","page_number":217,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"a55aac9d-6698-40b1-aed1-59a54343aed6","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":217,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"cd997c98-b89f-4c06-95a7-0e28a09d6533","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":217,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"d20029dd-86d1-4809-a341-48787e9a91b5","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":217,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"4e341456-f214-4e89-891b-176e44b77943","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":217,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"32037686-8395-4047-b8da-5253dc7b5761","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":217,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"c53b485a-d491-4c66-9bfb-4025b24164c9","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":217,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"8ac8c433-7b45-4673-99da-7494f7ca739f","block_type":"box","text":"8","page_number":217,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"b61126c4-fb51-42fb-83f4-6b7685d6dbef","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":217,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"31a7ca3b-d748-4242-ad6d-c10b506d8614","block_type":"box","text":"different markets.","page_number":217,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"3245a7a9-cfa3-40fe-8b03-9883b78b2425","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"168769c9-ed31-4943-b41e-22e87f5978ab","block_type":"box","text":"Global Principles | 8","page_number":217,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"95938a93-3a7e-49e8-bfde-5906655c1b13","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":217,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7cf17714-a08e-4873-9d40-cfdeff7e0ca1","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":218,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"c76c4574-cb34-4fe6-8150-89577b701a59","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":218,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"03207185-9609-4a69-a21e-7a41a12726bd","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":218,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"ae81be5d-7fb4-4bf3-bf50-be13264443c4","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":218,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"4cd1f540-675b-4b27-84f2-2225b1e5c194","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":218,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"1528eee7-046c-4143-899a-917861191f67","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":218,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"21e86e45-cb12-4abb-81bc-3f5a7bd39496","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":218,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"c9318b2a-55c1-4d05-a856-ec9557ab353c","block_type":"box","text":"whom they are charged with overseeing.","page_number":218,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"c03babce-323b-4777-9984-3420c68ea8e7","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":218,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"fd78173f-ee43-4fba-8ec4-0e3692d17376","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":218,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"dd610427-e194-42b0-8627-f5832ce9b058","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":218,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"2973e47f-881f-4eff-9b52-b281865fcf76","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":218,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"f32fc1f1-9a0e-4c10-8005-40c1227b8bd4","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":218,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"ef605056-f17c-4f81-9343-2aa687969f15","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":218,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"4bc074c5-cdc6-4f64-9cd1-4dd40c63ff4c","block_type":"box","text":"structures.","page_number":218,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"f16b6230-1696-4b5a-ae85-b213ca12f68c","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":218,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"00f84f4e-9f64-4177-a86c-299c676d8345","block_type":"box","text":"Corporate form","page_number":218,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"43ecb834-2f8c-49a9-8705-1a373e23f676","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":218,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"80b53811-e726-453e-87de-b9a8a1866f90","block_type":"box","text":"the company’s purpose and business model.","page_number":218,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"ac2acdc3-ddee-4859-86aa-ef9c8be935c6","block_type":"box","text":"9","page_number":218,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"74be367c-ae0b-4187-bea9-bafaa9645dbd","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":218,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"1d374917-8dbd-40a8-8d79-b03f2f5b1a84","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":218,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"759669ae-015c-4aa5-b303-8e2c04b91156","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":218,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"a4918f04-5e6a-4e6b-8eb3-2cf0807e8b3f","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":218,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"9bef900f-0094-4e08-a726-d5207956a056","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":218,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"bafe123f-d148-48c5-a472-2df15e9729b5","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":218,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"cfe2f97b-a53b-433f-bb45-70ac1f3de5d5","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":218,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"75e0cb5b-309f-4b9c-ac7c-73cad06675a8","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":218,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"45396843-775e-4a3d-a3b5-b458b25b2b9e","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":218,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"6d0e67bb-3ab1-459c-ae24-16f2eaaed010","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":218,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"ecf2375a-2090-4de0-bb6e-a8b577565d09","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":218,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"53f1bf7b-ca0f-4f6d-852d-0314bbaccce7","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":218,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"d7d16194-25bf-4b99-82ec-f5634b31fc97","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":218,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"75525216-18dd-402f-83e4-a18c7c72c9f1","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":218,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"e493e54f-fbe6-4b8e-9609-3b96a1669cb3","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":218,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"551f22d1-5194-4a82-8f4c-bcac1d2862f0","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":218,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"7a1fce66-0c52-4450-a282-94e613485980","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":218,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"a5b5a8a8-c2d5-44b5-908b-5ad5250a3707","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":218,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"2d06d77f-c94a-4651-9ad9-738dc924f4b6","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":218,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"90c01a92-2209-48ec-a5ab-fb482342f5ee","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":218,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"b3bb68d8-9deb-430e-b177-e1c800af6641","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":218,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"02dcde7d-a323-4fa8-8642-d4015cf45c11","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":218,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"077685b3-db9f-41f7-84ed-88cce5a5a9a1","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":218,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"fc6533f2-0b10-403c-b1c9-e47ae9d8920c","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":218,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"95c5c24b-1760-4b66-aba1-13dd37bff125","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":218,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"a727a1c6-9292-4291-8fac-214fbe2f8cd2","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":218,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"0e6c35b1-1788-453e-9f78-c7ae1337c03c","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":218,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"f2787dd2-32bf-452d-a60e-743de9ac91e7","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":218,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"11c0bc2e-6b5a-4c75-983b-8d5ea1825058","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":218,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"3172ec56-1a67-46f0-8105-8835eccc55b9","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":218,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"b5cb62c8-4994-425a-85f9-9ed86255e41b","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":218,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"78b9d00a-76c9-4666-8c25-3cd3e7eeb79c","block_type":"box","text":"9","page_number":218,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"8fb25f3f-36bd-4d28-a8c5-86577e1ef9c4","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":218,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"8841bbf6-228e-48d9-9edf-2f01f1951b95","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"12411602-a59c-4336-bc93-3a52a265b7b1","block_type":"box","text":"Global Principles | 9","page_number":218,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"e4439e3b-577e-4366-ad05-b19badec7ab6","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3af7dc7b-89e5-4505-878d-d34264c6d57f","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":219,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"5140d8dd-43de-4648-a9d5-e9c2afb61163","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":219,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"e8141686-7eb9-47a1-a7da-4e8ce86ef0dd","block_type":"box","text":"long-term financial interests.","page_number":219,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"e3c712f6-460c-40a3-bfc7-85dda2df9762","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":219,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"28075eb4-7590-4357-8b03-598aed9b2591","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":219,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"d2f06674-8ca3-446e-8917-91c4101a1f5e","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":219,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"e6090326-372b-4d54-8de0-516c85cd435f","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":219,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"2ee97997-5b69-420c-ac66-b0437c490b2c","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":219,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"794cd704-8320-4820-a67a-512be6888acd","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":219,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"8e27d49b-4db5-467c-98a0-5d9031772580","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":219,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"79498085-bd53-4fc6-b79a-89bb6a2c8f0a","block_type":"box","text":"term financial value creation.","page_number":219,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"b799990e-9d5d-46ca-8a8f-b6eaed77f709","block_type":"box","text":"10","page_number":219,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"037e67f0-465a-4afd-aa60-bc2b90f43c3c","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":219,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"3393f913-c044-49f3-a72a-42dc4ecca0eb","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":219,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"84a61d09-7155-4eb5-ba9f-05a7df264d45","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":219,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"fbaaef27-a96f-4f4a-93e1-7f04c1cf122e","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":219,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"0f4b3a97-b231-4342-b2ab-53d553a556a7","block_type":"box","text":"industry-specific metrics.","page_number":219,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"8888db57-1057-4c06-ae79-a74754c9bbd0","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":219,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"6c31f32f-5ba1-4e56-8d60-96221b34e338","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":219,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"22fb5098-b950-4dc3-b700-aa0a78b64ccb","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":219,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"36004751-125d-4781-9a32-6dccad95a1fe","block_type":"box","text":"11","page_number":219,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"541b515e-9804-4f51-b8a2-a525586ad7da","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":219,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"f00605f3-f35e-4873-899a-25e31a1a5dc0","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":219,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"dff8abf0-a91c-463a-81f0-a2b81319a4fd","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":219,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"1117b69d-398d-4f8c-99ba-c18cbd1081a2","block_type":"box","text":"specific.","page_number":219,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"1c9f4089-dc84-44cf-9939-ae79c0a4b5d1","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":219,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"849420d0-283b-41c6-8d43-6354ea453456","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":219,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"60ddcd7d-0ef4-4fbf-be79-61748e07ada5","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":219,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"50eda8a3-cb04-4ebf-b9c1-36d7e473b2c9","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":219,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"a9b0e30a-d4cc-4a8f-a599-b0e064630443","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":219,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"bb3bcf3a-aa7d-4729-b7bf-69bba0d1c552","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":219,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"dfae89fe-d157-4492-b44f-7ce52e9ba1ce","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":219,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"7c0af059-d60e-4d42-a1e5-dc0a45eb5bb7","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":219,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"3ae2a3a7-94fc-4381-875a-d997f9fea4c9","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":219,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"756b08b5-687f-4803-bfcf-a08bc1c8473d","block_type":"box","text":"10","page_number":219,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"2450ba71-4725-4b75-ad69-208ef9779b5d","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":219,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"28ab1a43-bdc5-4aaa-95e0-147aaa2eff9c","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":219,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"980d766e-d765-4971-b3fc-1cc779a3aad5","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":219,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"5a229e38-d54c-41d2-b84f-e0dec3c4e46a","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":219,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"223a420d-ca1a-4ece-b8cc-caba0ca939b8","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":219,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"f01d49cb-70d3-4120-bfc0-242f5b030c0f","block_type":"box","text":"11","page_number":219,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"b93513c2-942e-44e0-a72c-864112d8dba9","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":219,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"b65070dc-a42a-4511-bf18-e0035a7e08f4","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":219,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"e8c024ab-9fa2-4b4a-9cae-8645df631c13","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":219,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"56bfd59e-99d8-4afc-b764-4c06ccdc755a","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":219,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"aa3cb9da-e652-409c-b54f-fb8cacb80cb8","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":219,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"61dc94b1-7579-49b2-8ade-c7fc61b5aebb","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":219,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"7261b17c-02bf-4b8a-84d9-d693440b3ca4","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"41beec1b-7229-49bf-af7f-c08544b55822","block_type":"box","text":"Global Principles | 10","page_number":219,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"b0997d8e-7d6e-4024-9845-5acf35fd93c2","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5d8c02f3-9459-4fbd-87ea-d392fb639d7c","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":220,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"a93f220c-e220-42b4-ad5f-d46e24b615df","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":220,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"dc2d8674-9b50-4b8b-b785-faf921ce382f","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":220,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"41babe2d-cfe7-43fd-8b37-cee9b97e8eb1","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":220,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"a343cd9a-966c-477f-b937-3b3d83a9711d","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":220,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"201da18b-3b28-4187-9466-b67c6bfa728f","block_type":"box","text":"12, 13","page_number":220,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"27567557-deb6-4197-bd09-a375a82f9ec4","block_type":"box","text":"From company disclosures and","page_number":220,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"1d139f61-53be-466b-b245-23af2a1d3721","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":220,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"d29b838c-3d38-4b7e-aa29-f175dafd7d1c","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":220,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"56d5b36d-b0f7-4c71-805c-fffda15162ea","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":220,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"3c912b5d-368f-48ff-9c04-43a18f0d5378","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":220,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"3fb073be-9401-4bd6-a318-7fd582e35968","block_type":"box","text":"viewed as best practice in the market.","page_number":220,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"76e5aa8b-b8c6-4c62-a59d-0b30fa709cb0","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":220,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"f6a0d6fd-c9ad-44c3-a642-2968b22a8d63","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":220,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"e00762ca-427c-423c-9070-da04d6bfacd1","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":220,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"fd24dfc2-629e-4ad4-80eb-7f974c35fd55","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":220,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"4b0892db-06db-4ba4-a951-0264b778343a","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":220,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"3916ac70-fed0-44bf-b1df-10567244a870","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":220,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"99bdcb87-ef46-4982-b587-dab43c7024e0","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":220,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"3c26a8a3-796e-433b-a450-2f7ba3aade0a","block_type":"box","text":"interests of their investors.","page_number":220,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"e5419392-34bc-442f-ab82-f9eac383e470","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":220,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"0c6d79a6-087d-4c00-b021-e26341b2dd31","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":220,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"203c9b89-c0cd-4678-9e41-6b780a4e8fbc","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":220,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"60aa8c67-8a9c-450f-91a0-f6cd67aea255","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":220,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"32273809-69a9-4488-8bae-a9b7a498c1e1","block_type":"box","text":"good-faith basis as methodology develops.","page_number":220,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"7e97facf-f5f1-447d-a736-4177311d6242","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":220,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"48665741-a607-4af8-a319-7209acf9a506","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":220,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"45434e36-4c24-4fe5-86de-77122ff7d5f7","block_type":"box","text":"generate long-term financial returns.","page_number":220,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"a08f2d59-8250-406a-9809-757e52387aa6","block_type":"box","text":"14","page_number":220,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"09102efa-c61d-44f9-b88f-eb3483921d8e","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":220,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"b368b622-6d1d-473e-99dd-36c6693ac11f","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":220,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"28a5ec1f-e605-471d-986c-8ceb7927a78a","block_type":"box","text":"15","page_number":220,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"31082e28-02e4-4d5d-b8ea-2a26c5aab271","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":220,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"3a1543fa-50fb-4713-b498-4a2a465d8434","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":220,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"3120011c-5ebb-4a01-a35b-9a7ed7e4615b","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":220,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"63182af4-db1c-4fcd-adb8-b9f129c2d83c","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":220,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"181555a2-2648-4d6e-ae18-428f3afba293","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":220,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"2059c549-f39e-464d-a630-dec0607fd8a7","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":220,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"72c3969f-1122-4260-b214-6c7d70f13a05","block_type":"box","text":"12","page_number":220,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"48b98b46-f8e3-4348-a6d9-d25be160959e","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":220,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"6b69ee79-9658-4065-bf8b-a639d9ffa41a","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":220,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"dfbfc891-48fa-448c-9a57-98fad45d205b","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":220,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"75aec99b-9662-4a88-bea8-47f7af3e13aa","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":220,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"956bf906-54ce-442b-8ed2-eaec656a5fa2","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":220,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"8a50b07d-5676-4252-bbf8-068aa0fca267","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":220,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"88d71564-2329-44ed-8f22-871e9ca49314","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":220,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"7a856aeb-658e-42d2-aa10-7061039376a2","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":220,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"b3f7267c-1fff-4be9-97e9-d9db1ae8296d","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":220,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"22d09469-8546-405c-ada7-1a775f1763c1","block_type":"box","text":"13","page_number":220,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"2b34b928-364b-4351-80ab-88b176fea4e2","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":220,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"1a479498-05f8-4468-a57c-b6afba816009","block_type":"box","text":"2025.","page_number":220,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"567a1d01-3739-4d1c-95fa-654a8b5a432f","block_type":"box","text":"14","page_number":220,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"5469d2c1-f25f-4850-b158-aa62fd36bd2b","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":220,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"167d05d1-b65e-4a07-b51b-de8462a95450","block_type":"box","text":"2025.","page_number":220,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"4948ec2e-8565-4c3c-bf56-86b406be609d","block_type":"box","text":"15","page_number":220,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"3c8b56e4-90fc-41ad-acb5-1486f4c15420","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":220,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"34787336-51d8-442d-9d5b-9dd4a6eb8994","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":220,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"ac447ecc-ff09-4d16-9ef6-0d5df0a944c0","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":220,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"19b3fa44-3302-46c4-8c63-88263c8fef82","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":220,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"fe8c0c2c-799f-48ea-8ecc-8b2e338b5cf8","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":220,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"38bcefb1-3d9d-458a-ad80-59daa61df488","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"507f985c-6b6a-4093-910d-ad281720c04a","block_type":"box","text":"Global Principles | 11","page_number":220,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"dc1317b4-56bf-4b3a-85de-eb7705161b09","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fb1a4506-a449-4fc0-85ca-6336ec5f62fe","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":221,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"beb629f5-7bcf-43df-82b8-bc4faac34dca","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":221,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"471990d4-5478-489f-b2ad-3c41b5fabf30","block_type":"box","text":"16","page_number":221,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"be19a9eb-9489-4c40-a334-5e80f4355ffc","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":221,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"34a78373-2ed4-402a-8cd4-2400bc2c4516","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":221,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"d42ce456-00ff-491d-86a3-30b8ee9b86bc","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":221,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"8518e529-9cb0-4cf3-935f-7c4d46cf1053","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":221,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"6ad96180-e695-4fd4-87a4-5af79765f6e9","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":221,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"7a78ff4e-ac1a-4ac1-b30c-4c453f26d104","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":221,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"7eda0f00-1c1a-476e-8c44-6a3b43fcad64","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":221,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"03009d19-26ca-4533-a9bf-0b76b8394e11","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":221,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"54b78672-65a8-40e5-97e6-e003cb129b67","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":221,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"411141d7-e966-4867-b046-e885fd960f5f","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":221,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"0a6db253-bc1d-453d-afde-d252c8aa78a8","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":221,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"b973abcf-f222-407f-9203-5e836d224215","block_type":"box","text":"impacts.","page_number":221,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"17a2cb1d-c049-421a-95b1-3ebb20c3adc5","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":221,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"abbb0504-59a0-420a-ad61-020197c18cde","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":221,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"d0100f9e-1012-4616-9e73-ee0bcc841459","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":221,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"25526884-5ce1-4189-a565-a67439f8d105","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":221,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"e2808de8-b7b1-419f-9979-5760aa2f13bc","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":221,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"65676d7c-569b-4c02-91ea-1084a271161b","block_type":"box","text":"clients at the global and regional level.","page_number":221,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"50713a1c-a0f3-4e7c-b451-d0d328378c91","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":221,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"a39e7c3e-d91f-4697-9f40-13b51a2e92f4","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":221,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"e8d41357-0c39-440d-8b66-3a4ba095d356","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":221,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"d36a1383-d9e8-4043-8074-b8efdb44ae8e","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":221,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"49eba008-da40-4d9a-982c-910b250125dc","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":221,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"3ff9b92d-03fa-4c8e-b6ae-272f5dd21c94","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":221,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"ac4ed7ff-09cf-4935-8d86-7b084bb6dc51","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":221,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"429f2386-cff2-4192-8749-38ee476646c0","block_type":"box","text":"are independent from the investment stewardship function.","page_number":221,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"5c050cbe-5fe5-4ed0-8019-2d4991b0ae2a","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":221,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"4181dc44-5574-4427-91f8-db80cfb58a64","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":221,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"63f11684-ff67-4ed7-8607-79ca724f3239","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":221,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"9a5b7ca8-7821-40fd-bd92-da4c04b8fd8c","block_type":"box","text":"VOTE EXECUTION","page_number":221,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"0d4b6328-3423-456d-a89d-93f615d51da9","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":221,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"9a6fb32e-48da-479c-aa54-95c6205b93b8","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":221,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"81b5ee6e-a36c-45a0-a9e8-d3a50e338ca0","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":221,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"d40a267c-9c1c-4b80-b201-26b62118dfcf","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":221,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"753e3f49-7f35-4028-97e7-1382b5687d88","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":221,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"7d34dc3a-3c0c-47e0-b77b-278b6b522cb2","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":221,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"b3f4ef38-f7f3-458f-aec7-957c120f3725","block_type":"box","text":"management policies and procedures,” below).","page_number":221,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"7054c5ee-28c5-43d8-9392-7481e13897bf","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":221,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"8b8d28b9-85de-4da0-996d-000ed81b8528","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":221,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"3a6bfcb3-fa9a-471f-a369-55caa66c7ad2","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":221,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"599d9291-2b65-45ec-8d7c-f4f48592b191","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":221,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"70285e84-bbdf-4de6-9c12-2276915268a4","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":221,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"651ddee3-0713-4369-8e3f-16e4dda3fe61","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":221,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"09b55ebc-2882-4491-b5ec-0f73e8e0e259","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":221,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"ef2e7807-c96d-4480-9579-49c9c0566517","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":221,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"7f13a956-8b78-4850-a64d-d9f2a9873858","block_type":"box","text":"16","page_number":221,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"35bbd755-a807-4019-b8e2-3fa429db9483","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":221,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"f6126bd7-2643-4681-8e98-e43cdc98b76d","block_type":"box","text":"December 2025.","page_number":221,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"6ca8474e-19e4-4e54-9749-424edde4a86d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4ed5b63e-ee41-411b-b45b-d8a3cd146b1d","block_type":"box","text":"Global Principles | 12","page_number":221,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"706e960c-9c79-4386-b695-872c3f53438a","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dbacaa6d-63b3-48b2-a177-0982ef680a58","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":222,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"a85e47e8-6613-480f-bf33-34e451e5c89f","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":222,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"0b02fe60-ab60-4b6c-af09-df4d8ef20b4a","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":222,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"2f3c4b12-fc48-4c4d-b643-f8193b26f68a","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":222,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"c2e06f4d-2d72-4e17-8fdd-87d3f36e5eb3","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":222,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"896ebd92-5434-45d0-bebb-824b2d22b594","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":222,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"e438d9a9-b22f-4790-9867-070dcacbe1f8","block_type":"box","text":"enterprise-level vendor management activities.","page_number":222,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"16c9042d-95e5-4098-9215-c2179953c902","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":222,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"9996b205-2c13-4411-8110-8507ec00292b","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":222,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"f20421d9-f032-40c6-8516-118cbb6e3b3b","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":222,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"6c82f92e-aac3-490e-b5c7-67cd85a49ef8","block_type":"box","text":"BlackRock employees.","page_number":222,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"d3906d12-b04d-438e-b911-83af8b009b4d","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":222,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"9e58807a-47e5-434b-9ac1-cfa770afe0df","block_type":"box","text":"SECURITIES LENDING","page_number":222,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"be1e1815-2007-447d-8ffe-d3f2b5aa39a3","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":222,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"13f31ca4-5593-46a8-a31f-338937097645","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":222,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"b23121ee-a401-4cb6-bde4-f1abd6663fc9","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":222,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"85dbb35f-754b-4af3-8b5f-ea663117d07b","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":222,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"796bc958-87ad-4b5d-8dd8-309bc62ca400","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":222,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"9b91ea1a-cc6d-4c63-82dc-571f3619207b","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":222,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"2481f04c-2d01-418b-9442-12a3eb4538f1","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":222,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"64d40a69-3cae-4ae7-ab36-fe3dff509558","block_type":"box","text":"in helping them achieve their investment goals. 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We inform clients about","page_number":223,"box":{"x":101,"y":211,"width":789,"height":11}},{"id":"3d8f8b5d-8db2-4ce3-8476-a9d6b70a5be9","block_type":"box","text":"our engagement and voting policies and activities through direct communication and through disclosure on our","page_number":223,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"9b0edfc2-04f3-43a2-9ce4-bde005797ef2","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":223,"box":{"x":68,"y":241,"width":795,"height":11}},{"id":"9443df46-0b97-4fce-9833-7f4d55bdfdf3","block_type":"box","text":"invest on their behalf. 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Investing involves risk, including the loss of","page_number":224,"box":{"x":68,"y":792,"width":839,"height":11}},{"id":"ccb293a3-5974-4dda-a3a6-e6818b1c531e","block_type":"box","text":"principal.","page_number":224,"box":{"x":70,"y":807,"width":62,"height":11}},{"id":"ce70ad61-1d80-470b-bd3c-6ae0faab97a7","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":224,"box":{"x":69,"y":852,"width":196,"height":11}},{"id":"9879782e-2bfc-4be0-b591-b24e9b182517","block_type":"box","text":"©2025 BlackRock, Inc. 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All other trademarks are those of their respective owners.","page_number":224,"box":{"x":70,"y":898,"width":624,"height":11}},{"id":"73ab3eff-0ffc-4651-b343-2738955699a3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"b0efadec-f6cb-4abb-abfd-e52bb394ee70","block_type":"box","text":"Global Principles | 15","page_number":224,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"6a25981e-deb3-4a8c-b737-1f7583d56852","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9716e282-42ed-41ac-b5af-d627c4025bb0","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":359,"y":45,"width":260,"height":11}},{"id":"d7e6ae70-d84f-4569-ba28-6cc67bea28d5","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines","page_number":225,"box":{"x":297,"y":67,"width":384,"height":11}},{"id":"808304b9-0b01-4529-8729-087a20f3eed3","block_type":"box","text":"Effective as of January 2026","page_number":225,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"73a5b197-fa4f-4bd8-835d-0ff1edaaaa00","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":225,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aa4e6aa9-341d-4461-a5b6-0364521dc5c8","block_type":"box","text":"Contents","page_number":226,"box":{"x":456,"y":45,"width":66,"height":9}},{"id":"9106bf46-dfa7-4e91-b183-e3e98e25b83a","block_type":"box","text":"Introduction to BlackRock Investment Stewardship 3","page_number":226,"box":{"x":69,"y":80,"width":840,"height":11}},{"id":"ab8d3a56-4fd6-4345-8c85-1cd0b494d49e","block_type":"box","text":"Stewardship for clients with investment objectives relating to the low-carbon transition 3","page_number":226,"box":{"x":68,"y":96,"width":841,"height":11}},{"id":"e6fe1ba7-2847-4806-91d0-5088b9929f27","block_type":"box","text":"The Climate and Decarbonization Stewardship Guidelines 3","page_number":226,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"03dce4d8-d716-4d02-8ddd-5e94d1086d02","block_type":"box","text":"Understanding the investment implications of the transition to a low-carbon economy 4","page_number":226,"box":{"x":69,"y":129,"width":840,"height":11}},{"id":"e04ab167-6ed8-4b90-95cf-5024d795ee78","block_type":"box","text":"The Guidelines’ design principles","page_number":226,"box":{"x":68,"y":146,"width":240,"height":11}},{"id":"f5519917-1895-4092-b9b2-6fdd3f728849","block_type":"box","text":"4","page_number":226,"box":{"x":900,"y":146,"width":9,"height":8}},{"id":"941126b5-bbc4-47b2-8a7b-6cde9614e09d","block_type":"box","text":"Voting approach under the Guidelines","page_number":226,"box":{"x":68,"y":162,"width":273,"height":11}},{"id":"7b1ff21b-827f-438d-ac1c-a11ec47477c3","block_type":"box","text":"5","page_number":226,"box":{"x":901,"y":162,"width":8,"height":9}},{"id":"65226785-e26f-4734-a5cd-840da729b76d","block_type":"box","text":"Related matters","page_number":226,"box":{"x":69,"y":178,"width":117,"height":9}},{"id":"2e00f599-765b-410d-b025-c3778b066193","block_type":"box","text":"8","page_number":226,"box":{"x":900,"y":178,"width":9,"height":9}},{"id":"da1ca213-e318-4927-9cc3-dda9bc81d1c7","block_type":"box","text":"Appendix 1","page_number":226,"box":{"x":68,"y":195,"width":82,"height":11}},{"id":"acf28a1e-0b0c-496e-a56f-725cfa0e7901","block_type":"box","text":"10","page_number":226,"box":{"x":891,"y":195,"width":18,"height":9}},{"id":"7cc896a0-d264-466b-a0e0-3580f104216b","block_type":"box","text":"Appendix 2","page_number":226,"box":{"x":68,"y":211,"width":82,"height":11}},{"id":"7f86cf05-7107-47d8-a31e-0173c9a64099","block_type":"box","text":"11","page_number":226,"box":{"x":891,"y":211,"width":18,"height":9}},{"id":"3e2208cd-abe9-4e70-8955-b215b3650fe2","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"50cc07c1-27de-43ce-8853-1550af968429","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 2","page_number":226,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"38f87f60-394f-4d2f-8773-eb42a13fc785","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":226,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d828529a-e485-4617-9a00-3420c8a00cb6","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":227,"box":{"x":264,"y":45,"width":450,"height":9}},{"id":"e40338c8-f699-416d-95e8-14aeb2496a2c","block_type":"box","text":"At BlackRock, investment stewardship serves as a link between our clients and the companies they invest in and","page_number":227,"box":{"x":101,"y":68,"width":807,"height":10}},{"id":"78cc3b47-3f38-4001-8840-c11441b260c8","block_type":"box","text":"is one of the ways we fulfill our fiduciary responsibilities as an asset manager on their behalf. 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This includes companies which produce goods and services that contribute to real world","page_number":227,"box":{"x":69,"y":647,"width":753,"height":11}},{"id":"ce099381-93e8-4edf-9bd5-c72f6ca90bfd","block_type":"box","text":"decarbonization or have a carbon intensive business model and face outsized impacts from the low-carbon transition,","page_number":227,"box":{"x":69,"y":662,"width":836,"height":11}},{"id":"9c03cc2d-67d9-4fab-be71-e857c4d4d54d","block_type":"box","text":"1","page_number":227,"box":{"x":69,"y":692,"width":4,"height":4}},{"id":"80be810c-3ec1-4588-b922-051f48983728","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":227,"box":{"x":79,"y":691,"width":790,"height":11}},{"id":"95594c34-acfe-4c94-bda1-fd375963b0b3","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":227,"box":{"x":69,"y":706,"width":836,"height":12}},{"id":"af529bfb-09cb-442d-bcfd-b61001715734","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":227,"box":{"x":68,"y":721,"width":805,"height":12}},{"id":"5a25c455-2047-4059-8d33-12620fbf2acf","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":227,"box":{"x":69,"y":737,"width":405,"height":11}},{"id":"20d8fbcd-8e1f-4ca3-bc0a-6dc28868c053","block_type":"box","text":"2","page_number":227,"box":{"x":69,"y":755,"width":4,"height":4}},{"id":"7eeb78bd-1eb3-4006-9149-25532f9ef28d","block_type":"box","text":"BlackRock has heard from a growing number of clients globally that they have made, or are planning to make,","page_number":227,"box":{"x":79,"y":754,"width":780,"height":11}},{"id":"002e7a3c-5291-4b3f-a56d-5d07be63dfc5","block_type":"box","text":"commitments to align their investment strategies with the transition to a low-carbon economy. 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Under the Guidelines, the dedicated team","page_number":229,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"10974e60-c675-4693-82da-b4a9ffdbc15b","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":229,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"954105be-2283-4db6-aa2b-b825b8e61043","block_type":"box","text":"judgment of the priorities and outcomes most aligned with par ticipating clients’ investment objectives.","page_number":229,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"a1a62cab-ca98-4162-812e-8cbeac3c2c1e","block_type":"box","text":"Voting approach under the Guidelines","page_number":229,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"906a037b-4a1d-49cd-a9a0-f00cabf792c3","block_type":"box","text":"12","page_number":229,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"95c68d58-4319-4471-9c80-4420c6c0e6c1","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":229,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"1b02fb6e-7bcb-4baf-b725-bb352c586014","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":229,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"8e9a2947-cf6c-4fe7-a0a3-fe3c20418c16","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":229,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"4ccaabe2-3fbf-4049-8d04-19b0e78d1657","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":229,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"d859fd32-6c0e-4e7f-8618-6b31ff33f83d","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":229,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"fe4653d0-0fad-4caf-840d-41d9af974d09","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":229,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"a889f016-0056-4988-b890-fac90f248ef3","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":229,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"f3fb7618-faf1-481c-ba65-8affe7e16cc7","block_type":"box","text":"Corporate Disclosures","page_number":229,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"4eecea66-6005-4b17-8ce5-879ec5f35ae0","block_type":"box","text":"13","page_number":229,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"083fff10-8523-4154-9ce9-aa8da34681d8","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":229,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"b1f00899-f55e-47b5-8439-d43b1e986e98","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":229,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"bcb63398-73b5-4cb2-b193-7220892a2319","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":229,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"5c905410-37e1-4a00-b7e2-1f62777bdbeb","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":229,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"30a3506a-ad21-4898-a0c7-1483fcaf973a","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":229,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"d644af15-9780-4257-8bc7-df87b3925ca0","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":229,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"f70e4133-9df6-4152-a5df-e428b593fc9e","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":229,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"5660d530-6a65-4b7d-8617-ff76d2096252","block_type":"box","text":"(2) low-carbon transition-related repor ting. Standardized disclosure of sustainability-related data suppor ts investors","page_number":229,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"89175c12-90d6-4951-ae44-6fb76403d655","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":229,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"b829665a-68a7-44a4-8c9e-ecac5c0ba488","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":229,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"0607c706-b0c9-4cca-98c0-ba2cc416506b","block_type":"box","text":"14, 15","page_number":229,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"93355d74-1add-4c5e-bf66-100631814e81","block_type":"box","text":"IFRS","page_number":229,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"62895ad8-894b-4c51-8828-d320d82fb2fd","block_type":"box","text":"S1 addresses the general requirements of sustainability repor ting and IFRS S2 sets out the disclosures that","page_number":229,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"d1f6006e-74d1-43ef-9297-783f7f834534","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":229,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"7577dd1a-dc19-4a40-9e7e-25b1f2ae912d","block_type":"box","text":"transition-related risks and oppor tunities. This includes receiving independent, third-par ty assurances, as audit","page_number":229,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"3431209e-1c5c-49c7-b28c-ee4ee0719081","block_type":"box","text":"and assurance standards are developed.","page_number":229,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"eeb6ab87-7b28-4687-bd71-15b158f6ef7d","block_type":"box","text":"12","page_number":229,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"c88166a8-14a8-48ee-b06c-f8d894687490","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":229,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"cbbf1dbc-0633-4c40-baef-e1225eb6d811","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":229,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"5405e2b5-9fc1-4b54-bf7f-fc79509b11e8","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":229,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"81a07ab9-969f-4aba-82ad-564556867b91","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":229,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"a93eb381-e04a-4ba3-b793-7be70528f14d","block_type":"box","text":"13","page_number":229,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"1e120796-8a15-46d5-b897-6fea2282b5a9","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":229,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"22a03f26-d589-4bec-9f2f-ec5c3d958fe4","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":229,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"f9b21985-ad97-490a-b904-7d56a0a96607","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":229,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"bc642ccb-1483-4b1a-8936-0c6e8d6c93ad","block_type":"box","text":"14","page_number":229,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"40fb7a74-d5bf-461f-a005-6c901a7e7ccd","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":229,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"c3815a40-9c7e-4ea5-a72d-1c3fdba4da21","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":229,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"17b8d73a-5e93-4677-aed6-a4ed5e75d85f","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":229,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"b4f37fb2-9274-4c0e-9909-c1888dc4a2ee","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":229,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"df9733ca-a337-4d5b-aca1-3a9f6abee629","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":229,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"6b3438c1-2103-4a41-8b99-f3b31ac93b71","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":229,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"36529c6f-ce2b-42b5-a0b8-5c36b29a952b","block_type":"box","text":"15","page_number":229,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"9c32846c-c515-45ce-a9f6-02a66037277c","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":229,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"bade88a4-2d43-4cf3-82ab-2f69907a3e32","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":229,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"8b9e11bc-5ef4-4130-b316-ba8ab1178682","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":229,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"ed6f5430-b098-486a-aaea-fd4378a6f398","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":229,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"3a2e4127-f78a-4228-a628-3bf1367e3192","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":229,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"365d8c85-cf17-4a56-b214-f29aed2df7d5","block_type":"box","text":"BlackRock Investment Stewardship","page_number":229,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"118292c9-74cf-45fe-ae84-e592c0803172","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":229,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"b34689d4-a5d1-4bfc-abca-ff545295db1c","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":229,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ec9a807e-5c93-4fd1-8931-2f8bb82ffa7b","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":230,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"19a9f92b-7652-4add-b277-181717b6a006","block_type":"box","text":"16, 17","page_number":230,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"27c6208d-9985-4388-8767-cc4a40524063","block_type":"box","text":"In addition, the dedicated team looks to","page_number":230,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"4d0fab86-7832-4895-bfed-8827b0062990","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":230,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"33315e52-6307-48e3-b1cd-171187daf029","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":230,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"573424c9-62bb-4eea-a115-9c2820e79505","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":230,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"6f515582-efad-45dd-b444-3344d9d194a8","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":230,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"58082238-61cc-4d42-8dec-63df9eff0086","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":230,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"1acb4d81-588e-460a-b539-3ade6c9dd972","block_type":"box","text":"18","page_number":230,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"161119b8-7766-44a9-88e4-46b4d2db1c1d","block_type":"box","text":"However,","page_number":230,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"9fceef7f-61f2-4bda-9ce4-1c892c3b3d2b","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different par ts of","page_number":230,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"92163396-2edb-44bd-a9e2-3e8dc9b6696b","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":230,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"40ea636b-2afd-4242-a37a-031ab0e55f3d","block_type":"box","text":"their decarbonization targets. 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The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":230,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"e58368ee-dad9-4d04-b6ae-ae66dc2e723e","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":230,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"f44bf0e4-5e46-4822-b023-57b866b5266f","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":230,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"f0e16dfe-756f-4b9d-952e-c877da57156e","block_type":"box","text":"18","page_number":230,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"b4411906-5f18-4d8a-a384-dbac2a722ca8","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":230,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"f3587c4d-07cb-4e69-a0bf-2b83e12770b9","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. 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The research uses a definition of materiality from the GHG Protocol,","page_number":231,"box":{"x":69,"y":734,"width":813,"height":11}},{"id":"fdd3ef1f-e047-42eb-96e4-8933748efbfd","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, [that]","page_number":231,"box":{"x":68,"y":749,"width":828,"height":11}},{"id":"2c3b78f3-8ace-4daa-9122-76ab7bb9858a","block_type":"box","text":"offer the most significant GHG reduction oppor tunities and are most relevant to the company’s business goals.”","page_number":231,"box":{"x":69,"y":764,"width":801,"height":12}},{"id":"a3bbe6ad-d71d-44f1-8b7c-6f50451c8bbe","block_type":"box","text":"Website accessed in December 2025.","page_number":231,"box":{"x":68,"y":779,"width":272,"height":9}},{"id":"f029ac9e-03f6-4c5c-8d74-160219975fea","block_type":"box","text":"22","page_number":231,"box":{"x":69,"y":797,"width":9,"height":5}},{"id":"7e080467-5df1-49cc-9744-173180782ad0","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":231,"box":{"x":84,"y":797,"width":787,"height":11}},{"id":"b1b248e1-2890-45bf-a6a6-b0a428e407ac","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":231,"box":{"x":68,"y":812,"width":500,"height":11}},{"id":"68d0be77-531f-4b48-9cfd-8bd6473cea4a","block_type":"box","text":"23","page_number":231,"box":{"x":69,"y":830,"width":9,"height":5}},{"id":"f4d5bbb5-0db1-4207-87e0-3d451d4fa8eb","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":231,"box":{"x":84,"y":830,"width":801,"height":11}},{"id":"d71ea52e-a45d-4f0d-9e47-64ce8ba763c7","block_type":"box","text":"information on a company’s sustainability effor ts, operational resilience, or financial condition, among others.","page_number":231,"box":{"x":70,"y":845,"width":782,"height":11}},{"id":"72b72b40-0af0-4fb8-bc76-95198f508409","block_type":"box","text":"BlackRock Investment Stewardship","page_number":231,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"04fd3812-5a24-406b-98f7-6fcef932862e","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 7","page_number":231,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"629bf941-8309-4117-a112-37023e53bb8b","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":231,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0bce5e4a-e6b8-4755-82ff-e2d63ff516b6","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":232,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"63ffde33-7cb3-4776-953d-8e3d0a1c1f78","block_type":"box","text":"company has not subsequently made progress towards aligning with the transition to a low-carbon economy, the team","page_number":232,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"811e35e4-b589-4a6d-ab89-15e73ecb7691","block_type":"box","text":"may escalate by not suppor ting the re-election of additional responsible directors.","page_number":232,"box":{"x":69,"y":75,"width":582,"height":11}},{"id":"163348ca-aa72-4094-a07f-23bb7c4a0c95","block_type":"box","text":"24","page_number":232,"box":{"x":653,"y":75,"width":9,"height":5}},{"id":"0f706b4e-34dd-4386-8edb-fad6c812f13c","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":232,"box":{"x":69,"y":105,"width":528,"height":11}},{"id":"2bb98192-50ed-414b-9426-759cc8b91f1d","block_type":"box","text":"In cer tain markets, company management may submit proposals— commonly referred to as “Say on Climate” —","page_number":232,"box":{"x":102,"y":128,"width":807,"height":11}},{"id":"8667f663-0c5b-4066-9956-e5c4ee5fb492","block_type":"box","text":"seeking shareholder approval of their climate action plans or progress repor ts. The Guidelines consider these","page_number":232,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"92771e1a-0270-4e75-a00c-19478ce2ca7f","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":232,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"92840a3e-09e2-4b6f-8d4a-77a33526c070","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally suppor ts management’s climate","page_number":232,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"d9407d88-789c-46b1-9c57-7024bc67c46d","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":232,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"f9cb735c-97dd-42a3-a16e-d0af6d41a715","block_type":"box","text":"transition. Similarly, the dedicated team generally suppor ts management’s proposal on a progress repor t if the","page_number":232,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"9d060999-a98e-4bad-a3ba-ce695cd6331e","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":232,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"ebd200ed-589f-42bd-a03c-442b97f48d9f","block_type":"box","text":"transition plan and targets.","page_number":232,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"7f16ae6e-c622-4d02-b1a5-ca009cfae438","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":232,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"2ec8f3db-d228-4ee8-902f-769d0a9fb099","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":232,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"e6fb30a6-7ab4-4d15-a706-cc8ae60dd75c","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics and have varying degrees","page_number":232,"box":{"x":70,"y":302,"width":824,"height":11}},{"id":"aef603d2-84e5-47db-ad3a-29cc91eae173","block_type":"box","text":"of relevance for companies across sectors, locations, and business models.","page_number":232,"box":{"x":69,"y":317,"width":543,"height":11}},{"id":"25f3ef83-6978-4e00-b2f5-d985b5478ba3","block_type":"box","text":"Each shareholder proposal is evaluated on a case-by-case basis, focusing on its merit while considering the","page_number":232,"box":{"x":102,"y":339,"width":767,"height":12}},{"id":"7512f5c9-9295-4a06-b46b-236437792841","block_type":"box","text":"company’s individual circumstances. When the dedicated team votes in suppor t of a proposal, it is not necessarily","page_number":232,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"70387130-64c1-4625-8f0d-04d8fa4e3582","block_type":"box","text":"endorsing every element of the proposal or the reasoning, objectives, or suppor ting statement of the proponent.","page_number":232,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"4719f6fe-3ca2-4ef9-8bc5-1b482ca9842d","block_type":"box","text":"In addition to financial materiality, the Guidelines consider the proposal’s relevance to the company’s low-carbon","page_number":232,"box":{"x":102,"y":392,"width":802,"height":12}},{"id":"d0e52f68-023f-41c4-b176-3d318bb17bf8","block_type":"box","text":"transition strategy and targets. The dedicated team assesses the implications for, and the relevance to, the","page_number":232,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"d5dd477c-e4a4-4857-a05c-ff72b5623ce1","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may suppor t","page_number":232,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"b6befa09-b55d-40f5-9965-d750ec4b63e5","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":232,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"19fa14d5-9087-493d-9f2b-24cd1c895e1b","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"0b36f119-27bd-4ae4-be85-110b1e1fc471","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":232,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"6c967b1c-1555-436c-a023-08fac190c105","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":232,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"b830635a-014c-427c-b12f-516ebc3ebb5a","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"33372e86-0144-4b11-8220-865069e55e2b","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":232,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"88745e23-0aa5-4a75-98e2-d38ecb919390","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":232,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"7798908f-9b0c-4a30-a134-c232e31f1de4","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"bf1f8ab9-4ff2-4ff3-86fd-16fa9d2c9055","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":232,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"7bb26ec0-253d-4cf7-9545-eb5f68684c5e","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"7c082686-b855-432a-b3ce-0b85ae99d902","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":232,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"1431363c-8d87-4fd0-9da2-2b35e4922779","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":232,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"645725e1-8fe4-40ac-99b6-b575ad246ac1","block_type":"box","text":"25","page_number":232,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"3e7296c7-31ec-4edc-83de-ec33af660b89","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":232,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"6bd5f050-95b6-40cd-8cc2-a34f28458124","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":232,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"c9d0a0fa-54c1-4672-bf68-e0465da087f8","block_type":"box","text":"RELATED MATTERS","page_number":232,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"96ef4d07-9b19-425c-8d6b-18ff94fb8357","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":232,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"9435e7f0-dd4d-44d9-8333-721c00d2fed5","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. 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The dedicated team will continue to take a","page_number":232,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"b5ca5380-3f55-43f0-a0fb-67baea4629c3","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":232,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"c3b55c70-8789-4679-80e2-22452078868d","block_type":"box","text":"25","page_number":232,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"fdba452f-eeaa-417e-98e7-5256d7762eef","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":232,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"51550955-15b6-4303-9181-975631c8c77d","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":232,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"31371363-6490-4b33-97a6-edf51c50c4c2","block_type":"box","text":"BlackRock Investment Stewardship","page_number":232,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"dd32d274-6139-4879-897a-bd3b010e090c","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":232,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"8199abcc-9622-4b0e-834a-65b122cd00ce","block_type":"box","text":"BNM1026U-6032633-19203485","page_number":232,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"48e0c5be-6b8a-40e6-b7b3-e7ddaa79e6ba","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":233,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"ebb20888-cb10-46e9-a229-b492a43a9fe3","block_type":"box","text":"strategy and risk management.","page_number":233,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"02f8110d-7601-4f9b-bb6f-741445b7f28e","block_type":"box","text":"Auditors and audit-related issues","page_number":233,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"d9147751-1dd5-49b2-86a0-9f25a3695271","block_type":"box","text":"For companies with material climate or transition risks or oppor tunities in their business models, the dedicated","page_number":233,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"e701eaf6-e3a9-4875-a35e-67a34e50f481","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":233,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"5c3c87b6-822b-4ce3-b0ee-319137d4b356","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":233,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"598fb3ec-0b06-4b51-b5bc-34279a2a40e0","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":233,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"fe934393-bbd1-4fad-9cb9-087afab9b552","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":233,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"b5913497-2c84-4e16-839e-ef5962f95e35","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":233,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"9c7f78fc-ca0c-4b10-88a4-b477122d8192","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":233,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"f60e483b-49e0-4a63-9935-1234c186b1bc","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":233,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"ab1c47d3-8387-4082-9815-305d5767fd71","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":233,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"5ac3ba56-a955-4dc9-8517-168c2406e1fd","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":233,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"6c3dc3aa-d2ed-4dd3-89cc-1c634b4e2614","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":233,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"fab17d35-9745-49ed-8def-8c704513e5c0","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":233,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"7628a13d-3c31-4d8d-acd7-12bf0eb6f3c1","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":233,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"3a1553a0-6142-4287-9527-66f09d357de3","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":233,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"7a9364ca-3bee-4cc0-91ed-3a8772b1413a","block_type":"box","text":"stakeholders.","page_number":233,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"9408df99-325d-407d-bdfa-6beb3c629f4b","block_type":"box","text":"26","page_number":233,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"4616175f-3233-4665-b1a5-42c6fb958718","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":233,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"2c8c6b86-a681-4d5f-90fc-624b03af9c7e","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":233,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"d8736fec-25c2-4b07-9987-179483e6f437","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. 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The economic transformation is being driven by changes in","page_number":234,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"7d9e919c-f14d-49aa-beb5-ce4f364b7f22","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":234,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"ee2fbf49-b00d-43df-b16e-374a6bc9d830","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":234,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"bb3009f2-14dd-4299-a9a2-6e093fb14821","block_type":"box","text":"Decarbonization:","page_number":234,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"6b34af48-9bbe-4bf1-8173-e9223a58eb62","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":234,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"b2f1f5c9-ac06-4b4c-92bd-f1dfc1bf71cc","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":234,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"2b4742e7-90e2-49de-bb66-8a89d0eefdc4","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":234,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"617592c5-23dd-49d5-bd82-c5edd69dbf24","block_type":"box","text":"e.g., methane.","page_number":234,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"ecb34548-ad47-45c2-b7d9-30d470adcbb2","block_type":"box","text":"Climate-related risks and opportunities:","page_number":234,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"3bb2080a-2067-4d2a-a639-94ddac291638","block_type":"box","text":"The investment oppor tunities and risks associated with the transition","page_number":234,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"da0883c9-69b9-43cd-acfa-cd5570870c86","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":234,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"ab987cce-9fdf-4d5f-9c16-21f91e1fa55d","block_type":"box","text":"to physical climate change.","page_number":234,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"216a6ad7-163e-4748-8b6b-c7f7737eac9d","block_type":"box","text":"Climate-related transition plan:","page_number":234,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"4f2e7510-c377-41dc-8381-7f5771f5557a","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":234,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"d30ac64b-643f-4170-ad8a-603f5f876968","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":234,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"4ba14da8-c256-4721-96c4-32a0d419ae56","block_type":"box","text":"greenhouse gas emissions.”","page_number":234,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"8645ffea-e212-4917-91fb-f1ab2225b8c3","block_type":"box","text":"27","page_number":234,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"c0986ece-78c5-48ee-a554-1ae001ee4588","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":234,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"a7242711-74b2-49b0-a5a2-ea4ba86b715a","block_type":"box","text":"Targets that “","page_number":234,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"716780b4-3506-402a-9f0e-8e95ba152370","block_type":"box","text":"are in line with what the latest climate science","page_number":234,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"a8e45c80-5173-4318-bf4e-8a9f524954fd","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":234,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"cd7a34a6-4c67-45a9-99d0-8a352fe6b24b","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":234,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"5bc54280-484a-413e-b613-9ffe29461a1a","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":234,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"bac16fa3-d02b-4397-b5ec-6582db703afe","block_type":"box","text":"with the Paris Agreement goals.”","page_number":234,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"6f7d7ce1-0b65-4529-b839-29e2ccb414d1","block_type":"box","text":"28","page_number":234,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"0ad04df7-88ce-44af-8d05-a40c44b0d284","block_type":"box","text":"Scope 1:","page_number":234,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"34b89285-9c0d-4e5f-88ff-47cd23b67eb5","block_type":"box","text":"Direct GHG emissions. 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