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I","page_number":16,"box":{"x":195,"y":386,"width":676,"height":8}},{"id":"b3000827-7ae5-4622-8294-9054d14caef1","block_type":"box","text":"I-122","page_number":16,"box":{"x":874,"y":386,"width":35,"height":8}},{"id":"870aceda-b427-450c-813f-c7456facf6af","block_type":"box","text":"Portfolio Transactions and Brokerage . .","page_number":16,"box":{"x":69,"y":402,"width":283,"height":11}},{"id":"b9540e2e-70b8-442d-a427-5d1c996a0fc3","block_type":"box","text":".............................................................. 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I","page_number":16,"box":{"x":203,"y":435,"width":668,"height":8}},{"id":"c9c3a8d9-3f84-453e-9012-7b3b27867572","block_type":"box","text":"I-137","page_number":16,"box":{"x":874,"y":435,"width":34,"height":9}},{"id":"980b6968-76bd-4bf6-b357-c84b5b2978fb","block_type":"box","text":"Proxy Voting Policies and Procedures. . . . . . . . . . . . . . . . . . . . . .","page_number":16,"box":{"x":69,"y":451,"width":437,"height":11}},{"id":"35d62864-51bb-4ec9-b12a-7cc54109581d","block_type":"box","text":"........................................... 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I","page_number":16,"box":{"x":219,"y":468,"width":652,"height":8}},{"id":"a49c074a-f4cb-4af4-9ee3-4efe9dce7b4b","block_type":"box","text":"I-139","page_number":16,"box":{"x":874,"y":467,"width":35,"height":9}},{"id":"36273fe8-74b3-4c90-95a5-163494bd2ab5","block_type":"box","text":"Appendix A — Description of Bond Ratings. . . .","page_number":16,"box":{"x":68,"y":484,"width":332,"height":11}},{"id":"f65c2f24-f369-43e2-b09e-1f9317fdc309","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1","page_number":16,"box":{"x":407,"y":484,"width":502,"height":9}},{"id":"de0df5f7-6d62-4d83-97da-1af356d45098","block_type":"box","text":"Appendix B — Proxy Voting Policies . . . . . .","page_number":16,"box":{"x":68,"y":500,"width":300,"height":11}},{"id":"65a84438-6063-49b6-9cc5-8f732724dffc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1","page_number":16,"box":{"x":374,"y":500,"width":535,"height":9}},{"id":"a05cd5f8-d4b0-4d46-9265-eeecc370463d","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":16,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"73a1bab0-d6e2-4fec-84f0-422e4670a193","block_type":"box","text":"PART I: INFORMATION ABOUT BLACKROCK NATURAL RESOURCES TRUST","page_number":17,"box":{"x":219,"y":45,"width":541,"height":9}},{"id":"bde3182e-c27b-4f50-89c3-114583248c75","block_type":"box","text":"Part I of this Statement of Additional Information (“SAI”) sets forth information about BlackRock Natural","page_number":17,"box":{"x":102,"y":67,"width":740,"height":11}},{"id":"94be029c-727b-4534-b03e-db5026f07463","block_type":"box","text":"Resources Trust (the “Fund”). 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As a","page_number":22,"box":{"x":68,"y":90,"width":807,"height":11}},{"id":"023e777e-d71a-472b-bc13-3d45198eb616","block_type":"box","text":"fundamental policy that may not be changed without shareholder approval, the Fund will at all times, except during","page_number":22,"box":{"x":68,"y":105,"width":817,"height":11}},{"id":"f953f680-df08-4a4b-a528-7a9b9c788c93","block_type":"box","text":"defensive periods, invest at least 65% of its total assets in companies with substantial natural resource assets or in","page_number":22,"box":{"x":69,"y":120,"width":832,"height":11}},{"id":"1d6acee2-ebf2-48a4-90dc-9104c34cadb9","block_type":"box","text":"asset-based securities. The Fund’s fully-managed investment approach enables it to switch its emphasis among","page_number":22,"box":{"x":69,"y":135,"width":799,"height":12}},{"id":"909e4b5f-370f-4aa6-be7d-09bcdfd31f01","block_type":"box","text":"various industry groups depending upon management’s outlook with respect to prevailing trends and developments.","page_number":22,"box":{"x":68,"y":151,"width":828,"height":11}},{"id":"51bf1997-09a0-4377-ab32-d43ab50bfe05","block_type":"box","text":"Current income from dividends and interest will not be a primary consideration in selecting securities. The Fund","page_number":22,"box":{"x":102,"y":173,"width":794,"height":11}},{"id":"1aedc133-669c-4639-b3f5-74fd0bdb6be7","block_type":"box","text":"reserves the right as a temporary defensive measure to hold short-term U.S. Government securities, money market","page_number":22,"box":{"x":69,"y":188,"width":825,"height":12}},{"id":"53fd4961-06cc-43a5-b615-693d2e524725","block_type":"box","text":"securities, including repurchase agreements, or cash, in such proportions as, in the opinion of Fund management,","page_number":22,"box":{"x":69,"y":203,"width":815,"height":12}},{"id":"47477d45-9e8d-4783-85dd-5292e49578c5","block_type":"box","text":"prevailing market or economic conditions warrant. Except during extraordinary periods, the Fund would not expect","page_number":22,"box":{"x":70,"y":219,"width":807,"height":11}},{"id":"50ca1e6a-0e51-4fee-a496-0d6fd60a4e78","block_type":"box","text":"that such securities or cash held for redemptions would exceed 20% of its total assets. The investment policies","page_number":22,"box":{"x":68,"y":234,"width":798,"height":11}},{"id":"a89fca8b-5e04-4c5b-8523-55a3e6b5200b","block_type":"box","text":"described in this paragraph are fundamental policies of the Fund and may not be changed without the approval of the","page_number":22,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"fafbb175-12f2-4dc2-aca5-18eddda65fd2","block_type":"box","text":"holders of a majority of the Fund’s outstanding voting securities, as defined in the Investment Company Act.","page_number":22,"box":{"x":69,"y":264,"width":769,"height":11}},{"id":"15f151d0-bc1e-47cb-94ee-1c2e64f05f21","block_type":"box","text":"Regulation Regarding Derivatives.","page_number":22,"box":{"x":102,"y":287,"width":246,"height":11}},{"id":"63f56021-156e-4531-a148-825bbc041a14","block_type":"box","text":"The Commodity Futures Trading Commission (“CFTC”) subjects advisers to","page_number":22,"box":{"x":355,"y":287,"width":530,"height":11}},{"id":"021bcaef-6379-45a6-be20-ad1b1ac1c965","block_type":"box","text":"registered investment companies to regulation by the CFTC if a fund that is advised by the investment adviser either","page_number":22,"box":{"x":69,"y":302,"width":828,"height":11}},{"id":"f5c9d1f5-23d1-48a9-a53a-ef1cae9147c6","block_type":"box","text":"(i) invests, directly or indirectly, more than a prescribed level of its liquidation value in CFTC-regulated futures, options","page_number":22,"box":{"x":69,"y":317,"width":837,"height":11}},{"id":"34c1358c-8605-4df4-aacc-e4c2ffb0610b","block_type":"box","text":"and swaps (“CFTC Derivatives”), or (ii) markets itself as providing investment exposure to such instruments","page_number":22,"box":{"x":69,"y":332,"width":766,"height":11}},{"id":"2d6a69a8-6760-4990-96c6-0b9c5bbba5ef","block_type":"box","text":"Accordingly, BlackRock has claimed an exclusion from the definition of the term “commodity pool operator”","page_number":22,"box":{"x":101,"y":355,"width":762,"height":11}},{"id":"fc766276-926b-43ea-bcfc-4755bd54033c","block_type":"box","text":"under the Commodity Exchange Act (“CEA”) pursuant to Rule 4.5 under the CEA. BlackRock is not, therefore, subject","page_number":22,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"71934d45-2d51-4b9f-87be-5326aafb0af3","block_type":"box","text":"to registration or regulation as a “commodity pool operator” under the CEA in respect of the Fund.","page_number":22,"box":{"x":68,"y":385,"width":698,"height":11}},{"id":"9b1a248d-0e41-474c-9fd8-9d0d2bc73f3d","block_type":"box","text":"II. Investment Restrictions","page_number":22,"box":{"x":69,"y":415,"width":194,"height":9}},{"id":"d12b6923-c2e2-4008-9140-0bf0538346be","block_type":"box","text":"The Fund has adopted restrictions and policies relating to investment of the Fund’s assets and its activities.","page_number":22,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"b5171d32-4277-4545-aa9f-66ebce51c338","block_type":"box","text":"Certain of the restrictions are fundamental policies of the Fund and may not be changed without the approval of the","page_number":22,"box":{"x":69,"y":453,"width":825,"height":11}},{"id":"a2eaff9a-b8b3-447b-a42a-414a4353b4d5","block_type":"box","text":"holders of a majority of the Fund’s outstanding voting securities (which for this purpose and under the Investment","page_number":22,"box":{"x":69,"y":468,"width":809,"height":11}},{"id":"2045e61e-426d-4135-8f23-2c630fdd4d16","block_type":"box","text":"Company Act, means the lesser of (i) 67% of the shares represented at a meeting at which more than 50% of the","page_number":22,"box":{"x":69,"y":483,"width":808,"height":11}},{"id":"f0ee8310-53ed-4e0e-b9cf-b5e7423531c2","block_type":"box","text":"outstanding shares are represented or (ii) more than 50% of the outstanding shares). The Fund has also adopted","page_number":22,"box":{"x":69,"y":498,"width":807,"height":11}},{"id":"ffaf6821-e19b-4f6d-ab6b-83c3df528ce7","block_type":"box","text":"certain non-fundamental investment restrictions, which may be changed by the Board without shareholder approval.","page_number":22,"box":{"x":69,"y":513,"width":823,"height":12}},{"id":"6fb1a6bc-3686-4542-9c28-ac96f3319f3f","block_type":"box","text":"Set forth below are the Fund’s fundamental and non-fundamental investment restrictions. Unless otherwise","page_number":22,"box":{"x":102,"y":536,"width":767,"height":9}},{"id":"133a1371-b75c-4343-ad8b-4ffd986a95ca","block_type":"box","text":"provided, all references below to the assets of the Fund are in terms of current market value.","page_number":22,"box":{"x":70,"y":551,"width":664,"height":11}},{"id":"587d7e90-af49-4ee1-9bbc-b84f2ee5754c","block_type":"box","text":"Under its fundamental investment restrictions, the Fund may not:","page_number":22,"box":{"x":102,"y":574,"width":463,"height":11}},{"id":"6b632649-e5b0-428f-96ec-aae08ebd0557","block_type":"box","text":"(1) Invest more than 25% of its assets, taken at market value at the time of purchase, in the securities of","page_number":22,"box":{"x":102,"y":596,"width":755,"height":11}},{"id":"edfe3681-4f8d-46ab-9dbb-6b0527e7ab18","block_type":"box","text":"issuers in any particular industry (except that the Fund will invest greater than 25% of its assets in the securities of","page_number":22,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"509fcae5-e1a3-4567-a2be-2625a3abe316","block_type":"box","text":"issuers in the natural resources related industries and excluding the U.S. Government and its agencies and","page_number":22,"box":{"x":70,"y":627,"width":765,"height":11}},{"id":"27e96a1e-d14c-42e0-bf19-f42975facfeb","block_type":"box","text":"instrumentalities).","page_number":22,"box":{"x":70,"y":642,"width":127,"height":11}},{"id":"32286ccc-a9f0-4bcf-8ae3-6f0ca7d97588","block_type":"box","text":"(2) Make investments for the purpose of exercising control or management.","page_number":22,"box":{"x":102,"y":664,"width":537,"height":12}},{"id":"e1338b18-a187-40b1-babe-3f630e209ac3","block_type":"box","text":"(3) Purchase or sell real estate, except that, to the extent permitted by applicable law, the Fund may invest in","page_number":22,"box":{"x":102,"y":687,"width":778,"height":11}},{"id":"4e9dba5c-6a49-4ec9-b53e-3bd39cce4d38","block_type":"box","text":"securities directly or indirectly secured by real estate or interests therein or issued by companies which invest in real","page_number":22,"box":{"x":69,"y":703,"width":832,"height":10}},{"id":"289ac466-fd0c-4ec6-9767-93cdaee7ce07","block_type":"box","text":"estate or interests therein.","page_number":22,"box":{"x":69,"y":718,"width":190,"height":8}},{"id":"7030bc94-b199-4c6a-a199-0f5c4fdebf81","block_type":"box","text":"(4) Make loans to other persons, except (i) that the acquisition of bonds, debentures or other corporate debt","page_number":22,"box":{"x":102,"y":740,"width":774,"height":11}},{"id":"70cb1886-efcd-40dc-be42-f57dc23e8a9f","block_type":"box","text":"securities and investment in government obligations, commercial paper, pass-through instruments, certificates of","page_number":22,"box":{"x":69,"y":755,"width":810,"height":11}},{"id":"8d9d43b8-552d-4e23-8d03-75e479e34718","block_type":"box","text":"deposit, bankers’ acceptances and repurchase agreements and similar instruments shall not be deemed to be the","page_number":22,"box":{"x":69,"y":771,"width":819,"height":11}},{"id":"5a36e6b4-8402-449e-8800-a4c86cdaee2c","block_type":"box","text":"making of a loan, (ii) that the Fund may lend its portfolio securities provided that the lending of portfolio securities","page_number":22,"box":{"x":69,"y":785,"width":815,"height":12}},{"id":"e68f36f8-069d-4b3b-92b4-aef12044e60c","block_type":"box","text":"may be made only in accordance with applicable law and guidelines set forth in the Prospectus and Statement of","page_number":22,"box":{"x":69,"y":801,"width":807,"height":11}},{"id":"73e3fc8f-b0f4-4db9-861e-afc96e6d5624","block_type":"box","text":"Additional Information, as they may be amended from time to time; and (iii) as may otherwise be permitted by an","page_number":22,"box":{"x":68,"y":816,"width":806,"height":11}},{"id":"5ae74657-23c3-4f06-8ba7-56506394b835","block_type":"box","text":"exemptive order issued to the Fund by the Commission.","page_number":22,"box":{"x":69,"y":831,"width":396,"height":11}},{"id":"387740aa-12bc-476e-8a9f-3db0250f50b7","block_type":"box","text":"(5) Issue senior securities to the extent such issuance would violate applicable law.","page_number":22,"box":{"x":102,"y":854,"width":594,"height":10}},{"id":"15cfd7c6-8466-48b9-8ba3-00838918f2cc","block_type":"box","text":"(6) Borrow money, except that (i) the Fund may borrow in amounts up to 33","page_number":22,"box":{"x":102,"y":876,"width":535,"height":11}},{"id":"bd1128f6-0925-48c9-a108-743ad1424bbf","block_type":"box","text":"1⁄","page_number":22,"box":{"x":639,"y":876,"width":6,"height":6}},{"id":"30d79f1f-7bca-4d7a-b030-27ad53b46cff","block_type":"box","text":"1⁄3","page_number":22,"box":{"x":642,"y":876,"width":8,"height":9}},{"id":"d8d0a70a-998a-49cb-85ac-9c6aad922919","block_type":"box","text":"⁄3","page_number":22,"box":{"x":648,"y":880,"width":6,"height":5}},{"id":"1c9bfe02-e95a-4096-a13d-ba8d1448a83b","block_type":"box","text":"% of its total assets (including the","page_number":22,"box":{"x":655,"y":876,"width":242,"height":11}},{"id":"5b1a997f-e2ed-476b-9e3d-7e36bd15f8c1","block_type":"box","text":"amount borrowed), (ii) the Fund may, to the extent permitted by applicable law, borrow up to an additional 5% of its","page_number":22,"box":{"x":69,"y":891,"width":818,"height":11}},{"id":"ea1d1360-9bbb-4214-8a2a-34098d79d4e3","block_type":"box","text":"total assets for temporary purposes, (iii) the Fund may obtain such short-term credit as may be necessary for the","page_number":22,"box":{"x":68,"y":906,"width":810,"height":12}},{"id":"81780af7-3249-40d1-a6a6-cc52a80fafc4","block_type":"box","text":"I-6","page_number":22,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"3263778c-7c5e-43d9-b36e-bb556f8501e8","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":22,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"24ab4c9d-5518-4974-9471-a98bdad6dafe","block_type":"box","text":"clearance of purchases and sales of portfolio securities and (iv) the Fund may purchase securities on margin to the","page_number":23,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"38d28f44-323b-4bb6-bae4-6586f2e8567b","block_type":"box","text":"extent permitted by applicable law. The Fund may not pledge its assets other than to secure such borrowings or, to","page_number":23,"box":{"x":69,"y":60,"width":819,"height":11}},{"id":"8e627bd2-247f-4a8b-9acf-549913846fa5","block_type":"box","text":"the extent permitted by the Fund’s investment policies as set forth in the Prospectus and Statement of Additional","page_number":23,"box":{"x":68,"y":75,"width":811,"height":11}},{"id":"11a5310d-3076-4e91-a347-d1de7110b4b8","block_type":"box","text":"Information, as they may be amended from time to time, in connection with hedging transactions, short sales, when","page_number":23,"box":{"x":70,"y":90,"width":827,"height":11}},{"id":"51b0711b-b4ae-48b4-bf4e-0897d9b7d067","block_type":"box","text":"issued and forward commitment transactions and similar investment strategies.","page_number":23,"box":{"x":70,"y":105,"width":569,"height":11}},{"id":"af62a388-56c4-4993-90d4-844941a0ce80","block_type":"box","text":"(7) Underwrite securities of other issuers, except insofar as the Fund technically may be deemed an underwriter","page_number":23,"box":{"x":102,"y":128,"width":798,"height":11}},{"id":"1a010fa5-3b1e-4091-813a-1a94594030b4","block_type":"box","text":"under the Securities Act, in selling portfolio securities.","page_number":23,"box":{"x":69,"y":143,"width":386,"height":11}},{"id":"2edf4888-99f8-48ff-a5b0-88a89b719222","block_type":"box","text":"(8) Purchase or sell commodities or contracts on commodities, except to the extent the Fund may do so in","page_number":23,"box":{"x":102,"y":166,"width":757,"height":11}},{"id":"7f9d357e-ccb3-4ae0-8c88-bc0ab14d117c","block_type":"box","text":"accordance with applicable law and the Prospectus and Statement of Additional Information, as they may be","page_number":23,"box":{"x":69,"y":181,"width":772,"height":11}},{"id":"875379c8-4717-42cf-acf3-db747220c33d","block_type":"box","text":"amended from time to time, and without registering as a commodity pool operator under the Commodities Exchange","page_number":23,"box":{"x":69,"y":196,"width":827,"height":11}},{"id":"7a2d9a32-3ca9-489f-9c5e-e337ad3bc300","block_type":"box","text":"Act.","page_number":23,"box":{"x":68,"y":211,"width":26,"height":9}},{"id":"f59eb4ce-d237-435f-aa44-1a79a62c4dbe","block_type":"box","text":"Under its non-fundamental investment restrictions, the Fund may not:","page_number":23,"box":{"x":102,"y":234,"width":493,"height":11}},{"id":"d71699f4-4425-46ed-9c2b-bf12b5018553","block_type":"box","text":"(a) Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":23,"box":{"x":102,"y":256,"width":747,"height":11}},{"id":"4d79f085-a1d2-4eb7-bf1c-2e62d19f2535","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":23,"box":{"x":69,"y":271,"width":759,"height":12}},{"id":"8511c4a3-be13-435e-afb8-f42d847d8670","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":23,"box":{"x":70,"y":286,"width":829,"height":12}},{"id":"8cdbd2bc-60b7-4b01-9782-525baf3e8710","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":23,"box":{"x":70,"y":302,"width":808,"height":11}},{"id":"8ec9ecee-c187-47dc-9f55-3046905d22b0","block_type":"box","text":"another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":23,"box":{"x":69,"y":317,"width":763,"height":11}},{"id":"4c93c72d-d6d8-4fc0-bd13-9ff319acf243","block_type":"box","text":"(b) Make short sales of securities or maintain a short position, except to the extent permitted by the Fund’s","page_number":23,"box":{"x":102,"y":339,"width":770,"height":12}},{"id":"bc25575f-7b89-4527-9b11-2040fa442045","block_type":"box","text":"Prospectus and Statement of Additional Information, as amended from time to time, and applicable law.","page_number":23,"box":{"x":69,"y":355,"width":741,"height":11}},{"id":"15f3427c-dd75-476e-8a8c-20a1d93740dc","block_type":"box","text":"In addition, as a non-fundamental policy that may be changed by the Board of Trustees and to the extent","page_number":23,"box":{"x":102,"y":377,"width":745,"height":12}},{"id":"4a3b8663-7e4b-4381-9702-07f61a3ba6ab","block_type":"box","text":"required by the Commission or its staff, the Fund will, for purposes of investment restriction (1), treat securities","page_number":23,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"bb0bfa2f-88e1-4cf5-a572-cb2a579b2cae","block_type":"box","text":"issued or guaranteed by the government of any one foreign country as the obligations of a single issuer.","page_number":23,"box":{"x":70,"y":407,"width":740,"height":12}},{"id":"6526376d-d409-4cbe-b62b-dcfe8cb89581","block_type":"box","text":"Except with respect to restriction (6) above or with respect to policies adopted pursuant to Rule 35d-1 under the","page_number":23,"box":{"x":102,"y":430,"width":799,"height":11}},{"id":"e92c8ec4-8483-4894-bdf7-f1dd80e5367e","block_type":"box","text":"Investment Company Act, all limitations under the Fund’s fundamental or non-fundamental investment restrictions","page_number":23,"box":{"x":70,"y":445,"width":810,"height":11}},{"id":"722288e1-7549-4ad0-b76f-f0ae4069a519","block_type":"box","text":"apply only at the time that a transaction is undertaken. Any change in the percentage of the Fund’s assets invested","page_number":23,"box":{"x":69,"y":460,"width":824,"height":12}},{"id":"19bbb308-bb9c-4703-8c12-ab04259d5333","block_type":"box","text":"in certain securities or other instruments resulting from market fluctuations or other changes in the Fund’s total","page_number":23,"box":{"x":70,"y":475,"width":797,"height":12}},{"id":"ac4f2a33-d1c9-40cf-bf21-d9e8f97158bc","block_type":"box","text":"assets will not require the Fund to dispose of an investment until BlackRock determines that it is practicable to sell","page_number":23,"box":{"x":69,"y":491,"width":823,"height":11}},{"id":"5d5b1946-0579-44ba-ad81-33d67a9c1251","block_type":"box","text":"or close out the investment without undue market or tax consequences.","page_number":23,"box":{"x":69,"y":506,"width":511,"height":11}},{"id":"7e911873-684c-4be5-ae09-c1581c3ef1ea","block_type":"box","text":"For purposes of investment restriction 1 above, with respect to the Fund’s industry classifications, the Fund","page_number":23,"box":{"x":102,"y":528,"width":768,"height":12}},{"id":"05d3e199-555a-4efa-a0f2-82f496e784a4","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":23,"box":{"x":69,"y":543,"width":817,"height":12}},{"id":"aa0e5862-28dc-4b83-89a1-7ede4ebd02f1","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":23,"box":{"x":70,"y":559,"width":817,"height":11}},{"id":"7cfcbcf0-13b8-43a3-967f-f04b1386efec","block_type":"box","text":"broad authority to the Fund as to how to classify issuers within or among industries.","page_number":23,"box":{"x":69,"y":574,"width":597,"height":11}},{"id":"34619747-78c7-4748-b389-1f9f96cd493a","block_type":"box","text":"The Fund is currently classified as a diversified fund under the Investment Company Act. This means that the","page_number":23,"box":{"x":101,"y":596,"width":777,"height":12}},{"id":"f77d5fa8-e35c-4934-9af4-f6bbaaee9851","block_type":"box","text":"Fund may not purchase securities of an issuer (other than (i) obligations issued or guaranteed by the U.S.","page_number":23,"box":{"x":70,"y":612,"width":751,"height":11}},{"id":"c4052c07-1f69-42f8-b38b-fd920aa1299b","block_type":"box","text":"government, its agencies or instrumentalities and (ii) securities of other investment companies) if, with respect to","page_number":23,"box":{"x":68,"y":627,"width":812,"height":11}},{"id":"a3c5d452-bcad-46c7-8f83-7ffc832c01a4","block_type":"box","text":"75% of its total assets, (a) more than 5% of the Fund’s total assets would be invested in securities of that issuer or","page_number":23,"box":{"x":69,"y":642,"width":827,"height":11}},{"id":"db7397de-9759-4f7f-94c5-1fcf7b2a3eca","block_type":"box","text":"(b) the Fund would hold more than 10% of the outstanding voting securities of that issuer. With respect to the","page_number":23,"box":{"x":69,"y":657,"width":781,"height":11}},{"id":"eb1bcffe-2543-469f-bd8d-f164612a1877","block_type":"box","text":"remaining 25% of its total assets, the Fund can invest more than 5% of its assets in one issuer. Under the","page_number":23,"box":{"x":69,"y":672,"width":759,"height":11}},{"id":"4794ed93-b4fa-4f07-b8de-5435e62033f9","block_type":"box","text":"Investment Company Act, the Fund cannot change its classification from diversified to non-diversified without","page_number":23,"box":{"x":70,"y":687,"width":774,"height":11}},{"id":"69c674bf-b496-4b68-93ed-7bce3e5bb1c1","block_type":"box","text":"shareholder approval.","page_number":23,"box":{"x":69,"y":703,"width":153,"height":10}},{"id":"74a2defc-d69f-4f60-9fcd-a1838f194a4e","block_type":"box","text":"III. Information on Trustees and Officers","page_number":23,"box":{"x":69,"y":733,"width":290,"height":9}},{"id":"412f2578-e546-488d-af67-50c8ccd523a6","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Trustee”), thirteen of whom are not “interested persons” of","page_number":23,"box":{"x":101,"y":755,"width":788,"height":11}},{"id":"cfa90ecf-1970-4f04-95d4-f3c6bc7c69e0","block_type":"box","text":"the Fund as defined in the Investment Company Act (the “Independent Trustees”). The registered investment","page_number":23,"box":{"x":68,"y":770,"width":777,"height":12}},{"id":"4678fe97-5864-49c8-9985-370312fc53cb","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":23,"box":{"x":69,"y":785,"width":837,"height":12}},{"id":"ff941f73-4abb-4929-be6a-94ad135e28a8","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":23,"box":{"x":70,"y":801,"width":793,"height":11}},{"id":"93abed7a-217b-4377-9329-389fa2e8caf1","block_type":"box","text":"Complex”). The Fund is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":23,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"8b608b98-48d1-4af5-a5a1-c8203e844632","block_type":"box","text":"The Trustees also oversee as board members the operations of the other open-end registered investment companies","page_number":23,"box":{"x":68,"y":831,"width":837,"height":11}},{"id":"c52ec36a-ce5a-442c-a570-d84352b19cde","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":23,"box":{"x":70,"y":846,"width":335,"height":11}},{"id":"2ade2844-4133-47d6-88fb-f5eddec98e95","block_type":"box","text":"The Board has overall responsibility for the oversight of the Fund. The Chair of the Board is an Independent","page_number":23,"box":{"x":101,"y":869,"width":764,"height":11}},{"id":"36adcfee-cf7d-4091-b3d2-afd2ec8b3f7e","block_type":"box","text":"Trustee, and the Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The Board has","page_number":23,"box":{"x":68,"y":884,"width":813,"height":11}},{"id":"75d7fff1-1cc4-469a-8a92-c896062f365f","block_type":"box","text":"five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee,","page_number":23,"box":{"x":68,"y":899,"width":832,"height":11}},{"id":"8257c827-f691-425b-b30a-7fcc503abf35","block_type":"box","text":"I-7","page_number":23,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"4a07818a-a04e-4ed5-8460-86f403cf5fd1","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":23,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"622a4f42-b78e-45ac-a381-6992242c1945","block_type":"box","text":"a Performance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board is to","page_number":24,"box":{"x":69,"y":45,"width":784,"height":11}},{"id":"84d4c033-ce60-4733-8e0f-522101f5e555","block_type":"box","text":"preside at all meetings of the Board and to act as a liaison with service providers, officers, attorneys and other","page_number":24,"box":{"x":70,"y":60,"width":793,"height":11}},{"id":"14dd1bbd-be46-4616-819a-a8c40375d2c2","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee performs a similar role with respect to the","page_number":24,"box":{"x":68,"y":75,"width":789,"height":11}},{"id":"8ed92e2d-b0d5-4f78-80ad-e63f2c3daa06","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also perform such other functions as may be","page_number":24,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"e67e355a-30c0-4445-954e-0c66c982c00b","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":24,"box":{"x":69,"y":105,"width":809,"height":11}},{"id":"f98f3873-f147-4182-81ab-ffc7e6b9ad5e","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":24,"box":{"x":70,"y":120,"width":794,"height":12}},{"id":"36b9a6ef-a9f8-4996-9e13-cfddde641cf0","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":24,"box":{"x":69,"y":135,"width":816,"height":12}},{"id":"9fb60ccc-e663-4f0f-b096-b8fd03600804","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and reports","page_number":24,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"a9f5bab5-0fe1-445d-9e75-4175089260a3","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":24,"box":{"x":70,"y":166,"width":811,"height":11}},{"id":"f3f807f2-8936-4f2d-aa22-6fc67d28ea8d","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":24,"box":{"x":68,"y":181,"width":809,"height":11}},{"id":"27d0d80e-ba3d-4488-b8a7-862976409580","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":24,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"629e2622-c457-4e69-beaf-847c554d0663","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":24,"box":{"x":69,"y":211,"width":441,"height":11}},{"id":"909b671c-1102-4905-abdb-8a7caa1628d2","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":24,"box":{"x":101,"y":234,"width":777,"height":11}},{"id":"35f64613-2bd9-4210-ac0a-8a4319480b51","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":24,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"ccdc76dd-4456-4116-bb16-9520b0d83f03","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Fund’s charter, and the Fund’s","page_number":24,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"8d2b7e7c-120b-48e8-b373-38abba843c84","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s performance, operations","page_number":24,"box":{"x":70,"y":279,"width":812,"height":11}},{"id":"862eef09-d382-4169-8322-2616b0d5f43b","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":24,"box":{"x":69,"y":294,"width":819,"height":11}},{"id":"572e9ef4-540d-453d-a0c6-9df1c1a9e598","block_type":"box","text":"the operations of the Fund.","page_number":24,"box":{"x":68,"y":309,"width":192,"height":11}},{"id":"7de45ae2-e11b-41e3-b880-05cefeeef28b","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":24,"box":{"x":102,"y":332,"width":785,"height":11}},{"id":"50049f1f-1f8e-4b58-8174-38dfaa796a49","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":24,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"cedffacf-9e6c-465e-8c91-e0585f8570b6","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":24,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"9a1ee1ac-4450-4c66-9750-72bac99caedc","block_type":"box","text":"there are a number of risk management functions performed by the Manager and the sub-advisers or other service","page_number":24,"box":{"x":68,"y":377,"width":820,"height":12}},{"id":"04ff55ac-7de0-4dd5-a3f1-45d850a3cb81","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":24,"box":{"x":70,"y":392,"width":811,"height":12}},{"id":"d7f77168-d26b-47bb-9b70-6246d4113710","block_type":"box","text":"part of the Board’s general oversight of the Fund and is addressed as part of various Board and Committee","page_number":24,"box":{"x":70,"y":407,"width":767,"height":12}},{"id":"4ee8456a-c53e-4626-a49b-fed331fd0b65","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews reports from, among others, management, the","page_number":24,"box":{"x":69,"y":423,"width":815,"height":11}},{"id":"24c89ff5-b769-4a29-9d59-f23d164164e8","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":24,"box":{"x":70,"y":438,"width":803,"height":11}},{"id":"35452706-4c96-47c4-9bd5-782acc44df8e","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":24,"box":{"x":69,"y":453,"width":840,"height":11}},{"id":"cdc6ca82-3fde-401d-a08b-4f104bb09168","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees,","page_number":24,"box":{"x":69,"y":468,"width":812,"height":11}},{"id":"cad2e912-6f7b-4864-8db6-d4b5faec1890","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":24,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"224fe2e9-6729-4f48-9b20-919ac686895d","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":24,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"668eb218-c31d-4aa2-89d2-07d49d0c8ce1","block_type":"box","text":"testing of the Fund’s compliance program and reports to the Board regarding compliance matters for the Fund and its","page_number":24,"box":{"x":68,"y":513,"width":840,"height":12}},{"id":"5b63db8c-a440-4fde-b5b9-16b940e01f9c","block_type":"box","text":"service providers. The Independent Trustees have engaged independent legal counsel to assist them in performing","page_number":24,"box":{"x":69,"y":528,"width":822,"height":12}},{"id":"f4d1bea1-5e33-4f0d-84c0-2b2e5b1778e5","block_type":"box","text":"their oversight responsibilities.","page_number":24,"box":{"x":68,"y":544,"width":218,"height":11}},{"id":"b1136f4f-ae95-4cc3-9873-95067272986d","block_type":"box","text":"Audit Committee.","page_number":24,"box":{"x":101,"y":566,"width":122,"height":9}},{"id":"cb986476-ea0e-4f66-9824-78d8e0e1a058","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":24,"box":{"x":229,"y":566,"width":673,"height":11}},{"id":"91bee4dc-15c3-4e46-843a-ef30ac34f2f0","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":24,"box":{"x":68,"y":581,"width":831,"height":11}},{"id":"90683b27-d8b1-476e-b643-9fdf5e98880d","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":24,"box":{"x":68,"y":596,"width":820,"height":11}},{"id":"9937030c-675f-4eb3-8260-3b66e108350c","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":24,"box":{"x":68,"y":612,"width":823,"height":11}},{"id":"8a6a2c90-b5f0-4a78-9795-ca45e231c9df","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":24,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"998d4576-ab57-4333-bd73-3828a6b193a2","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":24,"box":{"x":70,"y":642,"width":825,"height":11}},{"id":"280a718e-3079-42ed-89ac-993cf8510201","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":24,"box":{"x":70,"y":657,"width":807,"height":11}},{"id":"bc6aa6c5-3f58-4840-ac04-a2e5aa252603","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":24,"box":{"x":68,"y":672,"width":781,"height":11}},{"id":"b090c550-078d-4e56-9a35-b761f11ce5e1","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":24,"box":{"x":69,"y":687,"width":834,"height":11}},{"id":"8b55313f-1b91-4c93-9fef-bff7691b1c72","block_type":"box","text":"regarding the accounting or financial reporting policies and practices of the Fund and the internal controls of the Fund","page_number":24,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"4052fb4c-098b-4f48-a128-cb4f62fe5fc4","block_type":"box","text":"and certain service providers; (5) oversee the performance of the Fund’s Independent Registered Public Accounting","page_number":24,"box":{"x":69,"y":717,"width":825,"height":12}},{"id":"60414c0b-a05e-4c0a-9e39-3199b153eaef","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":24,"box":{"x":70,"y":733,"width":809,"height":11}},{"id":"906cdbf2-d8f3-4dee-8c54-6230c9023528","block_type":"box","text":"performance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":24,"box":{"x":70,"y":748,"width":815,"height":11}},{"id":"c819387e-c021-4310-b12f-e8126754e979","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial reporting and controls;","page_number":24,"box":{"x":69,"y":763,"width":774,"height":11}},{"id":"b01118d6-82cc-474a-9e55-1e2e12e50edb","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":24,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"6043f93d-2d30-437f-b9bb-1b9699dd833e","block_type":"box","text":"regarding financial reporting; and (9) undertake such other duties and responsibilities as may from time to time be","page_number":24,"box":{"x":69,"y":793,"width":819,"height":11}},{"id":"43ce8d83-fbb1-45b4-b66c-d9d18701953b","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written charter for the Audit Committee.","page_number":24,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"e71ac33a-990c-410b-bd88-ef19ff7b769b","block_type":"box","text":"During the fiscal year ended April 30, 2026, the Audit Committee met four times.","page_number":24,"box":{"x":70,"y":823,"width":576,"height":12}},{"id":"0acba800-37aa-42fb-ac88-9f82517e43d6","block_type":"box","text":"Governance and Nominating Committee.","page_number":24,"box":{"x":102,"y":846,"width":286,"height":11}},{"id":"1cda9f4a-6fef-4e67-8be3-714118fe4cd3","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":24,"box":{"x":394,"y":846,"width":464,"height":11}},{"id":"02680237-d9a0-427c-b6e2-837b541db5d6","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton,","page_number":24,"box":{"x":70,"y":861,"width":838,"height":11}},{"id":"5bc1d5f9-d925-4368-bd87-299ba55fd8b5","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Trustees. The principal responsibilities of the","page_number":24,"box":{"x":70,"y":876,"width":784,"height":11}},{"id":"109dec5b-93cb-4147-bf6d-45cb2f10ebda","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Trustees of the Fund and","page_number":24,"box":{"x":69,"y":891,"width":801,"height":11}},{"id":"73a45ac0-c0ca-4726-afb3-2ad4507df8f7","block_type":"box","text":"recommend Independent Trustee nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":24,"box":{"x":69,"y":906,"width":829,"height":12}},{"id":"ba818cf8-f114-461b-a221-b88c391e4da7","block_type":"box","text":"I-8","page_number":24,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"bbdef9c6-1511-4d20-bba4-f9c398e820e5","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":24,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c69e348c-ed15-4169-82d1-e44384e01454","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":25,"box":{"x":70,"y":45,"width":828,"height":11}},{"id":"72ac6a0d-c0b5-4929-9d9e-415669ee47a7","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":25,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"4d4e4f99-187c-4a24-8f11-babc4cb32e07","block_type":"box","text":"and make recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters","page_number":25,"box":{"x":69,"y":75,"width":838,"height":11}},{"id":"e6734887-3e07-4144-b25e-cf36197072d1","block_type":"box","text":"and develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to","page_number":25,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"d769b28b-7e93-4cb9-966e-103c2249c732","block_type":"box","text":"Board policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of","page_number":25,"box":{"x":70,"y":105,"width":813,"height":11}},{"id":"7b12511e-2295-4163-aa42-7d4744d32dc7","block_type":"box","text":"ethics as they relate to Independent Trustees; and (7) undertake such other duties and responsibilities as may from","page_number":25,"box":{"x":69,"y":120,"width":829,"height":11}},{"id":"bbc44cf5-f283-4776-b0b0-e8cd275c26cd","block_type":"box","text":"time to time be delegated by the Board to the Governance Committee. The Governance Committee may consider","page_number":25,"box":{"x":68,"y":135,"width":804,"height":12}},{"id":"8b58eeef-8c9f-460b-809a-c9cd6eaf6bc2","block_type":"box","text":"nominations for Trustees made by the Fund’s shareholders as it deems appropriate. Under the Fund’s Amended and","page_number":25,"box":{"x":69,"y":150,"width":830,"height":12}},{"id":"2e0512eb-f2f3-4f92-aa95-69bb7ef35b53","block_type":"box","text":"Restated Bylaws (“Bylaws”), shareholders must follow certain procedures to nominate a person for election as a","page_number":25,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"d66343f7-fc9a-4531-9464-7a74e427932b","block_type":"box","text":"Trustee at a shareholder meeting at which Trustees are to be elected. Under these advance notice procedures,","page_number":25,"box":{"x":68,"y":181,"width":792,"height":11}},{"id":"dd77ab42-1f5e-46a9-8560-477e8cf80806","block_type":"box","text":"notice of the proposed nominee to the Secretary of the Fund must be delivered to or mailed and received at the","page_number":25,"box":{"x":69,"y":196,"width":797,"height":11}},{"id":"426f4c3b-f69b-4344-947d-3da8bb1d558b","block_type":"box","text":"principal executive offices of the Fund not later than the close of business on the fifth day following the day on which","page_number":25,"box":{"x":70,"y":211,"width":831,"height":11}},{"id":"afbbfa83-4fa6-4fcb-88a5-cd325dd91889","block_type":"box","text":"notice of the date of the meeting was mailed or public disclosure of the date of the meeting was made, whichever","page_number":25,"box":{"x":69,"y":226,"width":812,"height":11}},{"id":"74db2154-3843-4c74-8079-8cd25a18c11c","block_type":"box","text":"first occurs. The Fund’s Bylaws provide that notice of a proposed nomination must include certain information about","page_number":25,"box":{"x":68,"y":241,"width":830,"height":11}},{"id":"5bc24c53-341e-45c5-b4d4-d4e17e897aa1","block_type":"box","text":"the shareholder and the nominee, as well as certain other information, including a written consent of the proposed","page_number":25,"box":{"x":68,"y":256,"width":820,"height":12}},{"id":"2fa094af-4b50-4ba5-870a-b993a8c714e9","block_type":"box","text":"nominee to serve if elected. Reference is made to the Fund’s Bylaws for more details. The Board has adopted a","page_number":25,"box":{"x":69,"y":271,"width":799,"height":12}},{"id":"1e7e51de-70b8-49e4-8bda-6b97582371d0","block_type":"box","text":"written charter for the Governance Committee. During the fiscal year ended April 30, 2026, the Governance","page_number":25,"box":{"x":68,"y":286,"width":767,"height":12}},{"id":"dd0d7fd5-d81a-4857-93c1-1d421c5ad953","block_type":"box","text":"Committee met eleven times.","page_number":25,"box":{"x":69,"y":302,"width":208,"height":9}},{"id":"7b519e6b-dec8-4394-bbb7-17aa437d435b","block_type":"box","text":"Compliance Committee.","page_number":25,"box":{"x":102,"y":324,"width":168,"height":11}},{"id":"c9f675f7-8eba-4781-b45a-73ae58940118","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":25,"box":{"x":276,"y":324,"width":629,"height":11}},{"id":"7fa4bef3-c118-4446-833c-e434aebb36b1","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":25,"box":{"x":68,"y":339,"width":828,"height":12}},{"id":"85c4b12a-8f36-41bf-92d1-53acd83c075e","block_type":"box","text":"whom are Independent Trustees. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":25,"box":{"x":68,"y":355,"width":771,"height":11}},{"id":"8c425516-c14a-4bfe-afa1-6bf0975975c4","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Fund, the fund-related activities of","page_number":25,"box":{"x":69,"y":370,"width":834,"height":11}},{"id":"d03bd55b-4dc7-490a-9394-ac18c2e23ebe","block_type":"box","text":"BlackRock and any sub-adviser and the Fund’s third-party service providers. The Compliance Committee’s","page_number":25,"box":{"x":70,"y":385,"width":753,"height":11}},{"id":"3ed15bbb-8266-46e7-a166-6407921f026b","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Fund and its","page_number":25,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"9bda2e32-e395-40a4-b420-becc857b72ef","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":25,"box":{"x":69,"y":415,"width":815,"height":11}},{"id":"2179a62d-cec0-4c14-aa7f-613e62efce7b","block_type":"box","text":"and, where appropriate, recommend policies concerning the Fund’s compliance with applicable law; (3) review","page_number":25,"box":{"x":69,"y":430,"width":784,"height":11}},{"id":"7028adb2-0f3f-48fb-890a-9d8e6de93c7f","block_type":"box","text":"reports from, oversee the annual performance review of, and make certain recommendations and determinations","page_number":25,"box":{"x":69,"y":445,"width":811,"height":11}},{"id":"ed33e6b9-f610-4c58-9599-8a79a9006c2e","block_type":"box","text":"regarding the Fund’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":25,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"157127db-f754-4a88-85c4-d4c97e0e9878","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":25,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"283cd056-c234-4c5f-9665-aa5b8d7abbc1","block_type":"box","text":"and (4) undertake such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":25,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"277ed92f-a9b3-42b0-a12d-7022b66815c0","block_type":"box","text":"Compliance Committee. The Board has adopted a written charter for the Compliance Committee. During the fiscal","page_number":25,"box":{"x":69,"y":506,"width":811,"height":11}},{"id":"725eab4f-c4bc-413e-8b2e-ffb9b6d1814d","block_type":"box","text":"year ended April 30, 2026, the Compliance Committee met four times.","page_number":25,"box":{"x":68,"y":521,"width":504,"height":11}},{"id":"6beaf0f4-5fe5-495f-9478-1bd377d3beb5","block_type":"box","text":"Per formance Oversight Committee.","page_number":25,"box":{"x":102,"y":543,"width":248,"height":12}},{"id":"d5152e0c-829e-4267-afd1-78243d60a1fc","block_type":"box","text":"The members of the Performance Oversight Committee (the “Performance","page_number":25,"box":{"x":356,"y":543,"width":531,"height":12}},{"id":"d35eee77-bbe0-4798-886d-cf92cd93e80d","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton, Neil A.","page_number":25,"box":{"x":69,"y":559,"width":829,"height":11}},{"id":"774f62bc-b252-4927-bcf8-14984cd96e1b","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Trustees. The Performance Oversight Committee’s purpose is","page_number":25,"box":{"x":69,"y":574,"width":830,"height":11}},{"id":"c5fe1d39-0c3b-4b44-b13d-c5e005652b9b","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment performance relative to its agreed","page_number":25,"box":{"x":68,"y":589,"width":832,"height":11}},{"id":"85915451-5eaa-432d-b6c1-de96b849a36c","block_type":"box","text":"upon performance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":25,"box":{"x":69,"y":604,"width":816,"height":11}},{"id":"a9766f25-9873-494e-ab12-41ec6bbfcaf6","block_type":"box","text":"agreements. The Performance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":25,"box":{"x":69,"y":619,"width":782,"height":11}},{"id":"c92a1391-da5e-42d4-912e-82f12b77ef49","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":25,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"342de271-0d96-4854-9b13-b09e6a3446b6","block_type":"box","text":"and practices; (2) review information on the Fund’s investment performance; (3) review information on appropriate","page_number":25,"box":{"x":69,"y":649,"width":816,"height":11}},{"id":"10fe7000-ea34-4bf7-b279-61490e9e17f3","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":25,"box":{"x":69,"y":665,"width":803,"height":11}},{"id":"fb6d4b30-b1ad-4266-9059-5838eaa94c0d","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":25,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"fe6d045e-3752-4d2c-aeba-43776d2ad49a","block_type":"box","text":"the Performance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":25,"box":{"x":68,"y":695,"width":811,"height":11}},{"id":"194b0866-cc12-421e-84db-090a30d9485c","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":25,"box":{"x":69,"y":710,"width":757,"height":11}},{"id":"f8b4c43c-1580-4069-b1b8-10443ea785c7","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":25,"box":{"x":70,"y":725,"width":835,"height":11}},{"id":"e677a09e-4804-4521-9249-d8883ad793c6","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) undertake such other","page_number":25,"box":{"x":68,"y":740,"width":800,"height":11}},{"id":"6107bb89-a954-4b2c-96b3-102f12484355","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Performance Oversight","page_number":25,"box":{"x":69,"y":755,"width":780,"height":11}},{"id":"d7ea2c13-22e8-4cf4-9020-b25362b08122","block_type":"box","text":"Committee. The Board has adopted a written charter for the Performance Oversight Committee. During the fiscal year","page_number":25,"box":{"x":69,"y":770,"width":838,"height":12}},{"id":"e5ad849b-5829-46e8-9e88-d97cb9203a38","block_type":"box","text":"ended April 30, 2026, the Performance Oversight Committee met five times.","page_number":25,"box":{"x":69,"y":785,"width":546,"height":12}},{"id":"897362a3-9f9f-4720-a9e6-0a014cf598b8","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":25,"box":{"x":101,"y":808,"width":186,"height":11}},{"id":"e1464b95-1ade-46a4-bbf1-297ede313cf5","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":25,"box":{"x":293,"y":808,"width":598,"height":11}},{"id":"f37c1072-cd2b-4c19-8697-1b3ece1c1184","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":25,"box":{"x":70,"y":823,"width":817,"height":11}},{"id":"5d924b6a-cab4-4dd0-9345-f150da4252d9","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":25,"box":{"x":69,"y":838,"width":795,"height":11}},{"id":"3bedbb35-accc-4813-aa74-1d581deb3c6b","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":25,"box":{"x":69,"y":853,"width":788,"height":12}},{"id":"4c0dd49d-8dde-40cc-b9d6-93e25a1a0cf8","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":25,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"f5c7d400-e817-4292-b111-90a4b6115de3","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written charter for the Ad Hoc Topics Committee. During","page_number":25,"box":{"x":68,"y":884,"width":816,"height":11}},{"id":"974f5373-3c06-4188-84a2-0c4db0f2de9f","block_type":"box","text":"the fiscal year ended April 30, 2026, the Ad Hoc Topics Committee did not meet.","page_number":25,"box":{"x":68,"y":899,"width":577,"height":11}},{"id":"332148c7-7420-42f1-b0ff-7b35a69106dc","block_type":"box","text":"I-9","page_number":25,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"be16e105-e27c-4532-be65-fde946682f6d","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":25,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0171236c-517e-457c-a4af-83d1b14330b1","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":26,"box":{"x":101,"y":45,"width":771,"height":11}},{"id":"aad974ad-293d-4c59-8f62-916e411ee658","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":26,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"ed550532-1424-4232-b5e1-bfd20c995da1","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":26,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"752ce95d-e8cd-4b65-a61d-94645de31c33","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Furthermore,","page_number":26,"box":{"x":69,"y":90,"width":825,"height":11}},{"id":"d1580362-799f-40ef-9aa5-1b2c6be7b3c3","block_type":"box","text":"in determining that a particular Independent Trustee was and continues to be qualified to serve as a Trustee, the","page_number":26,"box":{"x":70,"y":105,"width":807,"height":11}},{"id":"3a970b58-4f1a-46f7-8cbd-9398782dbf47","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":26,"box":{"x":70,"y":120,"width":787,"height":12}},{"id":"813b742e-a12b-4f80-b073-4bdfe3077dae","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":26,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"7eb30842-ad4a-41bb-afc5-947eaf753761","block_type":"box","text":"which allow the Board to operate effectively in governing the Fund and protecting the interests of shareholders.","page_number":26,"box":{"x":68,"y":150,"width":792,"height":12}},{"id":"e58c1571-13e7-449d-9475-b159de924178","block_type":"box","text":"Among the attributes common to all Independent Trustees are their ability to review critically, evaluate, question and","page_number":26,"box":{"x":68,"y":166,"width":829,"height":11}},{"id":"a69bebbc-4f91-48cf-a338-de57549a5f1c","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":26,"box":{"x":69,"y":181,"width":823,"height":11}},{"id":"4fdde908-caa7-4e03-97d7-fe9c417fe084","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":26,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"42215c39-8315-4329-b716-0132b08c4681","block_type":"box","text":"business judgment in the performance of their duties as Trustees.","page_number":26,"box":{"x":69,"y":211,"width":473,"height":11}},{"id":"2b40d73b-ceeb-42a5-9aad-f08debc51b0d","block_type":"box","text":"Each Trustee’s ability to perform his or her duties effectively is evidenced by his or her educational background","page_number":26,"box":{"x":102,"y":234,"width":792,"height":11}},{"id":"7391b644-7226-4644-bb87-1617f32687b4","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":26,"box":{"x":69,"y":249,"width":807,"height":11}},{"id":"453bf6fd-439c-425a-a898-a292f195b8b0","block_type":"box","text":"board member of the Fund and the other funds in the BlackRock Fund Complexes (and any predecessor funds), other","page_number":26,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"0805c8c9-24b7-42c7-a525-206daaab4ad9","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":26,"box":{"x":70,"y":279,"width":759,"height":11}},{"id":"9a42e094-0912-460e-9242-2afd41a599cc","block_type":"box","text":"participation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":26,"box":{"x":70,"y":294,"width":685,"height":11}},{"id":"6b2bb98d-7022-4ebf-8983-469397e2c393","block_type":"box","text":"ad hoc","page_number":26,"box":{"x":762,"y":294,"width":47,"height":9}},{"id":"9dd32d58-da4c-44d4-b2be-7d9b9f6c781d","block_type":"box","text":"committees","page_number":26,"box":{"x":814,"y":294,"width":82,"height":9}},{"id":"5608e42c-7aee-4b5f-b1cf-da309c542da9","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":26,"box":{"x":68,"y":309,"width":395,"height":11}},{"id":"c9bab5b0-e587-455e-be6f-64d478693bc5","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":26,"box":{"x":101,"y":332,"width":751,"height":11}},{"id":"070c283d-c66a-41ec-8347-9d3d4481b7b1","block_type":"box","text":"support the conclusion that each Trustee should serve on the Board.","page_number":26,"box":{"x":69,"y":347,"width":492,"height":11}},{"id":"2a50b317-8487-4eb5-8737-500471e174ff","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":26,"box":{"x":68,"y":375,"width":409,"height":9}},{"id":"0d81108b-8c56-4e88-ab3a-8ac17e83a54e","block_type":"box","text":"Independent Trustees","page_number":26,"box":{"x":70,"y":392,"width":154,"height":11}},{"id":"203f934a-ebb1-4366-9a54-3d270ff1e12f","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":26,"box":{"x":69,"y":407,"width":781,"height":11}},{"id":"8012b201-3037-47b7-a138-003dc1981683","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":26,"box":{"x":265,"y":422,"width":604,"height":11}},{"id":"9120c4cc-82e3-4f81-a852-2327c1ddec8c","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":26,"box":{"x":265,"y":437,"width":623,"height":11}},{"id":"e71beecb-01be-4368-96e6-1252582cc563","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":26,"box":{"x":265,"y":452,"width":637,"height":11}},{"id":"17108aba-2f42-4797-afe0-48f6d10984b3","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":26,"box":{"x":265,"y":467,"width":631,"height":12}},{"id":"f0156f2f-3332-4685-b764-6785589b9c08","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the North American","page_number":26,"box":{"x":264,"y":482,"width":626,"height":11}},{"id":"d45e9963-7e28-4851-a1e0-6e86cd3b8608","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":26,"box":{"x":265,"y":498,"width":639,"height":11}},{"id":"57fb3729-7aff-455d-bcbe-f871747f2454","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":26,"box":{"x":264,"y":513,"width":637,"height":11}},{"id":"4d0efaa2-9985-4c91-b461-99d15dda7dfb","block_type":"box","text":"expertise across asset classes and strategies, and insight and perspective on the","page_number":26,"box":{"x":265,"y":528,"width":586,"height":11}},{"id":"7ceda4c7-5554-4a34-a02a-436e0f8a4f75","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":26,"box":{"x":265,"y":543,"width":640,"height":11}},{"id":"defdb96a-c2a7-46a9-98c6-062013f517f1","block_type":"box","text":"Committee and the Performance Oversight Committee.","page_number":26,"box":{"x":265,"y":558,"width":389,"height":11}},{"id":"4502cfd5-2a02-46dc-a204-d3323307f3ed","block_type":"box","text":"Susan J. Carter Susan J. Carter has over 35 years of experience in investment management. 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Cotty has more than 30 years of experience in the financial services industry,","page_number":27,"box":{"x":70,"y":65,"width":798,"height":12}},{"id":"83e5a87a-000b-4d94-b224-928a55ffbb9b","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":27,"box":{"x":265,"y":81,"width":631,"height":11}},{"id":"d8177b04-1203-462d-b9b0-ac8d40bfd83f","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":27,"box":{"x":265,"y":96,"width":633,"height":11}},{"id":"abf3eabf-c4cb-474d-afb5-96cd1d4478b5","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":27,"box":{"x":265,"y":111,"width":628,"height":11}},{"id":"e731f554-57b3-4927-b4e3-77b73d1a0bcf","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. 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These positions have","page_number":27,"box":{"x":265,"y":239,"width":638,"height":11}},{"id":"39072f8c-265e-44d1-ab89-ecb9bfa04a61","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":27,"box":{"x":265,"y":255,"width":626,"height":11}},{"id":"801423e5-1d47-451c-95e2-ec7797effbb2","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":27,"box":{"x":265,"y":269,"width":563,"height":12}},{"id":"0bdf552d-a56f-4a52-9308-8b5de3eb1253","block_type":"box","text":"Mr. Jarczyk also served as a consultant to the Independent Trustees prior to becoming an","page_number":27,"box":{"x":265,"y":285,"width":639,"height":11}},{"id":"99b35467-8c32-4f37-ab9a-122bb757d151","block_type":"box","text":"Independent Trustee.","page_number":27,"box":{"x":265,"y":300,"width":149,"height":11}},{"id":"7b4b770e-4a05-4cd6-a7a4-b535271f6304","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":27,"box":{"x":70,"y":322,"width":806,"height":12}},{"id":"efa2c277-6c17-49bc-996d-e05b4a003135","block_type":"box","text":"global expertise gained through his 35 year career at KPMG, a global professional","page_number":27,"box":{"x":264,"y":338,"width":584,"height":11}},{"id":"07c93b8c-4204-4c1d-b860-637123b068c8","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":27,"box":{"x":265,"y":353,"width":622,"height":11}},{"id":"4f2c07b0-9cd0-43e1-a86f-5d564b022df8","block_type":"box","text":"organizations. 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Mr. Keizer’s experience also includes service as an","page_number":27,"box":{"x":265,"y":398,"width":642,"height":11}},{"id":"f7b18a59-4c77-47ed-9998-1ff0aefd002d","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":27,"box":{"x":265,"y":413,"width":626,"height":11}},{"id":"c6be32bd-8f74-495a-a697-f3d8d7dda46b","block_type":"box","text":"industries including professional services, property and casualty reinsurance, insurance,","page_number":27,"box":{"x":265,"y":428,"width":630,"height":12}},{"id":"3e2e283b-c75f-476c-96a1-98f46ca05c42","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":27,"box":{"x":265,"y":443,"width":602,"height":12}},{"id":"071a9bb8-4414-4b48-b2ab-12668953fe1f","block_type":"box","text":"technology. Mr. Keizer is a certified public accountant and also served on the board of the","page_number":27,"box":{"x":264,"y":458,"width":643,"height":12}},{"id":"a5e439f6-daac-4fd9-8bee-8bb5eb14edf8","block_type":"box","text":"American Institute of Certified Public Accountants. Mr. Keizer has been determined by the","page_number":27,"box":{"x":264,"y":474,"width":639,"height":11}},{"id":"cf8a9a82-0743-4333-803a-2a4653a798d8","block_type":"box","text":"Audit Committee to be an audit committee financial expert, as such term is defined in the","page_number":27,"box":{"x":264,"y":489,"width":641,"height":11}},{"id":"977be125-ae9c-4a03-ba53-1a47ff285bc0","block_type":"box","text":"applicable Commission rules.","page_number":27,"box":{"x":265,"y":504,"width":208,"height":11}},{"id":"821224af-f127-410b-992f-13508ae71e41","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":27,"box":{"x":69,"y":526,"width":769,"height":12}},{"id":"894a652c-934b-4872-8d67-6f9525ed1534","block_type":"box","text":"investment companies, most recently as a member of the boards of certain BlackRock","page_number":27,"box":{"x":265,"y":542,"width":621,"height":11}},{"id":"17117def-72a7-46d0-a4fa-a7c4a3dded7c","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":27,"box":{"x":265,"y":557,"width":599,"height":11}},{"id":"ec634cf1-3cf7-47fe-afa0-0e07ee091593","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":27,"box":{"x":265,"y":572,"width":641,"height":11}},{"id":"80d4d5b7-316e-4620-8a29-8c34b3c6f70d","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":27,"box":{"x":264,"y":587,"width":602,"height":11}},{"id":"d28457e9-65dd-4b89-94e2-dd7a871b79db","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":27,"box":{"x":264,"y":602,"width":617,"height":11}},{"id":"0b4348f5-838e-41f8-bfba-d6228213b408","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":27,"box":{"x":265,"y":617,"width":629,"height":12}},{"id":"3ebfb472-dc80-4fdb-8d7b-1ef020d387d3","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":27,"box":{"x":264,"y":632,"width":628,"height":12}},{"id":"85d9a521-df9e-4b13-a3d5-344fd321ea92","block_type":"box","text":"articles and books on these topics.","page_number":27,"box":{"x":265,"y":648,"width":251,"height":10}},{"id":"b599aa2e-af57-475e-8e13-e420053c3325","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":27,"box":{"x":70,"y":670,"width":764,"height":11}},{"id":"d9bb30aa-0548-4d73-97ac-1a4a5b70a33f","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":27,"box":{"x":265,"y":686,"width":642,"height":11}},{"id":"99b8d694-1e04-4702-b6a6-0f8819c14cb3","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a partner,","page_number":27,"box":{"x":264,"y":700,"width":593,"height":12}},{"id":"16d6ddbe-5d7e-4e02-9a33-3b7b9425cb43","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":27,"box":{"x":265,"y":715,"width":603,"height":12}},{"id":"e4ae4869-1e99-4283-a4cb-78bc4ce0ea2d","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":27,"box":{"x":265,"y":731,"width":629,"height":11}},{"id":"a33d4f43-c382-4b3b-8318-0f903cf78a4a","block_type":"box","text":"I-11","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"f7e100a5-22f9-4704-b518-4d316ef57003","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":27,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"471c0888-6b6b-4dee-9460-18aa53336694","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":28,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"cc39f8b3-fb05-41d7-b772-68af34a96480","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":28,"box":{"x":70,"y":65,"width":804,"height":12}},{"id":"5bb59e9b-5ef8-4edc-af6f-38ffe1f83874","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":28,"box":{"x":265,"y":81,"width":552,"height":11}},{"id":"bdac3e62-bcff-4e63-a46f-07235c705577","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":28,"box":{"x":265,"y":96,"width":636,"height":11}},{"id":"270432c0-ea95-4c30-8af8-1797e8e27a20","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":28,"box":{"x":265,"y":111,"width":639,"height":11}},{"id":"ea8580cd-e51e-4fe1-b066-816dbed44170","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":28,"box":{"x":265,"y":126,"width":576,"height":11}},{"id":"e17f8f0a-d86a-4f09-9426-20a2c6525355","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":28,"box":{"x":265,"y":141,"width":626,"height":11}},{"id":"4e07a26d-bb85-42ce-aef0-16f33671959c","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":28,"box":{"x":265,"y":156,"width":592,"height":11}},{"id":"15284710-94e3-4d70-b315-f1fe7c15be55","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Arthur","page_number":28,"box":{"x":265,"y":171,"width":629,"height":12}},{"id":"454bdcca-2062-44d1-b510-34bb8b056744","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":28,"box":{"x":265,"y":186,"width":626,"height":12}},{"id":"ecb58eb0-bf95-4d7d-9f28-5e16bb7d17d4","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":28,"box":{"x":264,"y":201,"width":608,"height":12}},{"id":"56d9fbc0-ef18-4187-97cb-b0d75171b440","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":28,"box":{"x":265,"y":217,"width":575,"height":11}},{"id":"3be87eef-9d8e-42b6-a909-ec5508f3dd8b","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":28,"box":{"x":264,"y":232,"width":591,"height":11}},{"id":"8c28a2ed-b5b5-4df2-b2fb-94793cde7802","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":28,"box":{"x":265,"y":247,"width":627,"height":11}},{"id":"9301ac94-0036-42a8-90a6-0e2a983738f9","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":28,"box":{"x":265,"y":262,"width":578,"height":11}},{"id":"c51139d0-7644-44a8-bba7-885d621502b3","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":28,"box":{"x":265,"y":277,"width":607,"height":11}},{"id":"3651c65b-59bf-4fff-861e-26578373bced","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":28,"box":{"x":265,"y":292,"width":615,"height":11}},{"id":"65d005aa-ab4d-44b7-a8cc-95f56a0e9aed","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":28,"box":{"x":265,"y":307,"width":638,"height":12}},{"id":"cd152d8c-5611-4010-8296-2776f25f8471","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":28,"box":{"x":265,"y":322,"width":635,"height":12}},{"id":"aa446ee5-b792-47ee-be3c-19d5eb500844","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":28,"box":{"x":265,"y":338,"width":642,"height":11}},{"id":"4b2e1f23-177b-472d-8f18-13ecbab48dd1","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":28,"box":{"x":265,"y":353,"width":627,"height":11}},{"id":"a74eaaf9-ef64-4a5e-92ae-850e3222cc7b","block_type":"box","text":"as asset management regulation and compliance. 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$0","page_number":35,"box":{"x":295,"y":845,"width":566,"height":9}},{"id":"813c8716-5c8d-4455-ad07-7c2351d365c2","block_type":"box","text":"Thomas Holl, CFA 2 10 2 0 0 1","page_number":35,"box":{"x":73,"y":858,"width":784,"height":9}},{"id":"caddc8c8-fabb-44d4-b0c9-eac841cf1938","block_type":"box","text":"$1.83 Billion $16.95 Billion $456.37 Million $0 $0 $456.37 Million","page_number":35,"box":{"x":295,"y":870,"width":604,"height":9}},{"id":"f928f06e-9aac-4428-96c5-7d7666ac1dc5","block_type":"box","text":"I-19","page_number":35,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"2e06319a-7613-4849-97af-cdf1c811a4d5","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":35,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8e3e1528-605f-41d1-93a5-3e85886307b3","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":36,"box":{"x":69,"y":45,"width":304,"height":11}},{"id":"83b4d06f-18d3-4bc9-8f45-c62d6e2efcb7","block_type":"box","text":"The discussion below describes the portfolio managers’ compensation as of April 30, 2026.","page_number":36,"box":{"x":101,"y":67,"width":658,"height":12}},{"id":"ab9e9c31-f536-439a-8723-c9b4339a2adc","block_type":"box","text":"BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career","page_number":36,"box":{"x":102,"y":90,"width":774,"height":11}},{"id":"0eb6c5f2-41d8-410c-b8fe-49c06c6f66b5","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":36,"box":{"x":70,"y":105,"width":837,"height":11}},{"id":"3a357602-aaf0-4c0c-a784-9117445c815b","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":36,"box":{"x":69,"y":120,"width":823,"height":11}},{"id":"d58d8e31-b16a-4d5c-b884-e64207c620d0","block_type":"box","text":"compensation include a base salary, a performance-based discretionary bonus, participation in various benefits","page_number":36,"box":{"x":69,"y":135,"width":799,"height":11}},{"id":"90aaadf7-a975-4fcf-a266-820ee13de991","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":36,"box":{"x":70,"y":150,"width":670,"height":12}},{"id":"b3c8151c-61b3-4b89-bd83-66aeddec19e5","block_type":"box","text":"Base Compensation.","page_number":36,"box":{"x":102,"y":173,"width":148,"height":11}},{"id":"5f3d5b21-2049-4695-ba3d-e713fe8fa5fa","block_type":"box","text":"Generally, portfolio managers receive base compensation based on their position with the","page_number":36,"box":{"x":257,"y":173,"width":640,"height":11}},{"id":"66ab0682-0664-4bcb-8aee-5e7d3254c317","block_type":"box","text":"firm.","page_number":36,"box":{"x":68,"y":188,"width":32,"height":9}},{"id":"65d093e6-48d1-4bf6-9e87-a505e92459b4","block_type":"box","text":"Discretionary Incentive Compensation","page_number":36,"box":{"x":69,"y":219,"width":277,"height":11}},{"id":"a8f06e42-ee71-4bb0-aa1b-c82495f6f41e","block_type":"box","text":"Generally, discretionary incentive compensation for Fundamental Equities portfolio managers is based on a","page_number":36,"box":{"x":102,"y":241,"width":763,"height":11}},{"id":"f0d64df5-cfb8-4e08-accd-43153337fad7","block_type":"box","text":"formulaic compensation program. BlackRock’s formulaic portfolio manager compensation program is based on team","page_number":36,"box":{"x":68,"y":256,"width":832,"height":12}},{"id":"9ab522b8-8590-4079-a99c-6549382877ba","block_type":"box","text":"revenue and pre-tax investment performance relative to appropriate competitors or benchmarks over 3- and 5-year","page_number":36,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"0d2a0c1a-11e9-4ee2-8cdb-ca05316699bb","block_type":"box","text":"performance periods, as applicable. In most cases, these benchmarks are the same as the benchmark or","page_number":36,"box":{"x":70,"y":286,"width":757,"height":11}},{"id":"d743b50c-287f-4d20-acef-280277c06f88","block_type":"box","text":"benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are","page_number":36,"box":{"x":69,"y":302,"width":814,"height":11}},{"id":"b7e7c66a-6c7b-45dc-9866-bfea3f8aa116","block_type":"box","text":"measured. BlackRock’s global compensation team determines the benchmarks or rankings against which the","page_number":36,"box":{"x":69,"y":317,"width":780,"height":11}},{"id":"5fb3cabc-1d0c-41ff-92ca-5c548e23e32d","block_type":"box","text":"performance of the Fund and other accounts managed by each portfolio management team is compared and the","page_number":36,"box":{"x":70,"y":332,"width":802,"height":11}},{"id":"8ede40ae-382f-48b0-ba83-2f63d006599f","block_type":"box","text":"period of time over which performance is evaluated. With respect to these portfolio managers such benchmarks for","page_number":36,"box":{"x":70,"y":347,"width":823,"height":11}},{"id":"a5360260-cd36-4969-aa07-fcd11ad684b5","block_type":"box","text":"the Fund and other accounts are: Bloomberg Commodity Index Total Return; FTSE Gold Mines Index (Gross Total","page_number":36,"box":{"x":68,"y":362,"width":799,"height":11}},{"id":"46ea2e6b-2752-403c-8fba-301fe568db33","block_type":"box","text":"Return); FTSE Gold Mining Index - expressed in JPY; FTSE Gold Mining Index - GBP Price; SOFR 3 Month Index; MSCI","page_number":36,"box":{"x":70,"y":377,"width":824,"height":12}},{"id":"f4305199-212b-4233-ad70-6175b28b9363","block_type":"box","text":"10/40 DW Energy (Net); MSCI ACWI Metals & Mining 30% Buffer 10/40 (1994) GBP Net TR; MSCI ACWI Metals &","page_number":36,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"5f83541d-e19c-42c8-b019-63b804a7c873","block_type":"box","text":"Mining 30% Buffer 10/40 (1994) USD Net TR; MSCI World Energy Net Daily TR Index; NYSE Arca Gold Miners Index","page_number":36,"box":{"x":70,"y":407,"width":823,"height":12}},{"id":"189f0bce-5a46-46ac-91c9-4050835ec02c","block_type":"box","text":"EUR Net Total Return; S&P Global Natural Resources Index; S&P Global Natural Resources Index - In GBP; S&P Global","page_number":36,"box":{"x":70,"y":423,"width":838,"height":10}},{"id":"6b8fd103-9a0e-4a45-bb47-f0efbb4c8e7b","block_type":"box","text":"Natural Resources Net Return.","page_number":36,"box":{"x":70,"y":438,"width":216,"height":9}},{"id":"4e8a5eba-7ecf-4132-b2d7-5aa636d08676","block_type":"box","text":"A smaller element of portfolio manager discretionary compensation may include consideration of: financial","page_number":36,"box":{"x":101,"y":460,"width":759,"height":12}},{"id":"56f3d06b-10b7-4e5f-9340-6238d5d652e4","block_type":"box","text":"results, expense control, profit margins, strategic planning and implementation, quality of client service, market","page_number":36,"box":{"x":69,"y":475,"width":798,"height":12}},{"id":"f32e2661-e50e-4dc5-a21d-637576789532","block_type":"box","text":"share, corporate reputation, capital allocation, compliance and risk control, leadership, technology and innovation.","page_number":36,"box":{"x":69,"y":491,"width":814,"height":11}},{"id":"593c4484-760f-4e63-97d0-62c0ab5665a6","block_type":"box","text":"These factors are considered collectively by BlackRock management and the relevant Chief Investment Officers.","page_number":36,"box":{"x":68,"y":506,"width":798,"height":11}},{"id":"e86cf346-f4a5-4424-ae3c-8ded2d9db968","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":36,"box":{"x":102,"y":528,"width":389,"height":12}},{"id":"9d1934c7-3e30-44fb-9b53-7721680910af","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":36,"box":{"x":499,"y":529,"width":383,"height":11}},{"id":"8684c845-d8a8-4b2d-be3a-14d78ca36119","block_type":"box","text":"portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":36,"box":{"x":70,"y":543,"width":815,"height":12}},{"id":"18ed04c8-e0b2-4d93-9273-22bc4c2ba60d","block_type":"box","text":"that notionally track the return of certain BlackRock investment products.","page_number":36,"box":{"x":68,"y":559,"width":522,"height":11}},{"id":"49724c83-d792-414f-8893-9c42db80d7a0","block_type":"box","text":"Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio","page_number":36,"box":{"x":102,"y":581,"width":760,"height":12}},{"id":"bbe663b2-9926-4a25-8441-b50b26188a4b","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":36,"box":{"x":69,"y":596,"width":795,"height":12}},{"id":"3896f0fd-280b-4fbe-8622-94f825df7ad2","block_type":"box","text":"awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive","page_number":36,"box":{"x":69,"y":612,"width":805,"height":11}},{"id":"8b47c3a7-f45c-4c89-a78f-1bbc3472aa73","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a","page_number":36,"box":{"x":69,"y":627,"width":822,"height":11}},{"id":"842ec33c-11f2-4c81-a43a-717032566435","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some","page_number":36,"box":{"x":68,"y":642,"width":839,"height":11}},{"id":"bbf3df1d-598e-4221-8d8e-326e2d34f32c","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term","page_number":36,"box":{"x":69,"y":657,"width":802,"height":11}},{"id":"104b31bb-a946-4f62-9292-fc9ee98ee632","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred","page_number":36,"box":{"x":70,"y":672,"width":820,"height":11}},{"id":"5847d482-8c4a-440d-8e73-f21f25d355ce","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":36,"box":{"x":70,"y":687,"width":801,"height":11}},{"id":"1595fc99-0f30-40c6-905a-ba58d5018db9","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio","page_number":36,"box":{"x":70,"y":702,"width":831,"height":11}},{"id":"5ee055f3-f6c8-42b7-867b-6bf38860ab93","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":36,"box":{"x":69,"y":717,"width":479,"height":12}},{"id":"eec7c2a2-bb46-4756-9ecc-f71662452e02","block_type":"box","text":"For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the","page_number":36,"box":{"x":102,"y":740,"width":785,"height":11}},{"id":"53499110-c866-458b-aa35-55a22d5c9e83","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":36,"box":{"x":68,"y":755,"width":836,"height":11}},{"id":"b81c8977-bca3-4d7a-b275-41d8adee399c","block_type":"box","text":"which provides direct alignment of portfolio manager discretionary incentive compensation with investment product","page_number":36,"box":{"x":68,"y":770,"width":821,"height":12}},{"id":"f4460961-f171-4313-ba5d-034e570593c1","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":36,"box":{"x":69,"y":785,"width":829,"height":12}},{"id":"f8cdcb10-3984-4532-9f02-3efddce1a474","block_type":"box","text":"portfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":36,"box":{"x":70,"y":801,"width":835,"height":11}},{"id":"e4dc0a64-679c-4e61-afc1-de57aab7ecbf","block_type":"box","text":"eligible to participate in the deferred cash award program.","page_number":36,"box":{"x":69,"y":816,"width":414,"height":11}},{"id":"06f7012a-44ed-489b-870c-0a163021e8b1","block_type":"box","text":"Other Compensation Benefits.","page_number":36,"box":{"x":101,"y":838,"width":218,"height":11}},{"id":"df3f4584-a96e-4c76-8bec-88817d3dcf09","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":36,"box":{"x":327,"y":838,"width":552,"height":11}},{"id":"2fdabf38-ce0e-46dc-af82-8fa18621bd48","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":36,"box":{"x":69,"y":853,"width":582,"height":12}},{"id":"7c826dfd-e236-40c1-9b56-464731707eb0","block_type":"box","text":"Incentive Savings Plans","page_number":36,"box":{"x":102,"y":876,"width":167,"height":11}},{"id":"31deb6f7-9f1a-4f83-8db0-71d92b25c6ea","block_type":"box","text":"— United Kingdom-based portfolio managers are also eligible to participate in broad","page_number":36,"box":{"x":274,"y":876,"width":606,"height":11}},{"id":"c1912a03-5313-484c-b510-0edc66bf80f1","block_type":"box","text":"based plans offered generally to BlackRock employees, including broad-based retirement, health and other employee","page_number":36,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"e4830fd2-2a9c-4e66-b043-9b65bb933a15","block_type":"box","text":"benefit plans. For example, BlackRock has created a variety of incentive savings plans in which BlackRock employees","page_number":36,"box":{"x":69,"y":906,"width":837,"height":12}},{"id":"6e2fa496-ac9a-4508-95e6-ee5be62cbaab","block_type":"box","text":"I-20","page_number":36,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"076e1c96-0d85-4441-8422-e06115670a44","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":36,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a3ee26fb-7abf-4335-86b8-178d13b25b12","block_type":"box","text":"are eligible to participate, including the BlackRock Retirement Savings Plan (RSP) and the BlackRock Employee Stock","page_number":37,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"89afe8ed-67a8-47c1-b903-d2df8ae7faad","block_type":"box","text":"Purchase Plan (ESPP). The employer contribution to the RSP is between 10% and 15% of eligible pay capped at","page_number":37,"box":{"x":69,"y":60,"width":792,"height":11}},{"id":"40905e4f-6512-493d-8d21-275f83bcaad7","block_type":"box","text":"£160,000 per annum. The RSP offers a range of investment options, including several collective investment funds","page_number":37,"box":{"x":68,"y":75,"width":817,"height":11}},{"id":"b61670ad-e310-4cae-b41e-6bc85268a086","block_type":"box","text":"managed by the firm. BlackRock contributions follow the investment direction set by participants for their own","page_number":37,"box":{"x":69,"y":90,"width":781,"height":11}},{"id":"a654759e-3316-48e1-af92-d752943bde69","block_type":"box","text":"contributions or, in the absence of an investment election being made, are invested into a target date fund that","page_number":37,"box":{"x":69,"y":105,"width":794,"height":11}},{"id":"c627560c-de81-4a6d-86a8-18b88808ee3b","block_type":"box","text":"corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for investment in","page_number":37,"box":{"x":69,"y":120,"width":823,"height":12}},{"id":"d6975899-204c-4858-9b93-fedfd29abee9","block_type":"box","text":"BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual","page_number":37,"box":{"x":70,"y":135,"width":784,"height":11}},{"id":"55bb1c73-b523-4cd7-9acd-d8d5e64350a7","block_type":"box","text":"participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a US dollar value of","page_number":37,"box":{"x":70,"y":150,"width":776,"height":11}},{"id":"b64664b3-047e-4a68-b975-eaa92a41d6c9","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to","page_number":37,"box":{"x":69,"y":165,"width":808,"height":12}},{"id":"1b6b1315-b94e-45f4-9841-8ba7d90d751d","block_type":"box","text":"participate in these plans.","page_number":37,"box":{"x":70,"y":181,"width":185,"height":11}},{"id":"4a4ad418-01a3-4baf-955b-b76beb2f641f","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":37,"box":{"x":69,"y":211,"width":268,"height":11}},{"id":"09d13417-8f34-44d3-a2e4-fa2e553eaf08","block_type":"box","text":"As of April 30, 2026, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":37,"box":{"x":101,"y":234,"width":733,"height":11}},{"id":"05938f29-b11d-443d-ab87-64f5a0498c0b","block_type":"box","text":"beneficially owned by the portfolio managers in the Fund is shown below:","page_number":37,"box":{"x":69,"y":249,"width":519,"height":11}},{"id":"79516ad0-7449-4715-9180-7e8766daa211","block_type":"box","text":"Portfolio Manager","page_number":37,"box":{"x":69,"y":287,"width":105,"height":9}},{"id":"180c5e5d-20ec-46da-9cee-af69c83a3e61","block_type":"box","text":"Dollar Range of Equity","page_number":37,"box":{"x":759,"y":277,"width":129,"height":9}},{"id":"ed782671-abe2-44ad-86e9-84eeb09e9a3c","block_type":"box","text":"Securities Beneficially Owned","page_number":37,"box":{"x":736,"y":287,"width":173,"height":9}},{"id":"e7af271b-4bfe-4a9e-9d23-2004e26d0c60","block_type":"box","text":"Alastair Bishop . . .","page_number":37,"box":{"x":68,"y":305,"width":132,"height":11}},{"id":"5ed09c44-4656-4000-98e4-c0c5ea0f5611","block_type":"box","text":"..............................................................","page_number":37,"box":{"x":206,"y":312,"width":499,"height":2}},{"id":"31e45588-552b-4e51-8f0d-4a6c4e15446f","block_type":"box","text":"$100,001 - $500,000","page_number":37,"box":{"x":744,"y":304,"width":158,"height":11}},{"id":"b380b6b0-3d91-4360-921f-bc044312f2fa","block_type":"box","text":"Thomas Holl, CFA","page_number":37,"box":{"x":68,"y":320,"width":125,"height":10}},{"id":"0b4aa785-dd3c-4d30-8d47-cc24675207af","block_type":"box","text":"...............................................................","page_number":37,"box":{"x":198,"y":327,"width":507,"height":2}},{"id":"f1a9c57e-f28e-4fc2-85c5-87d254a9b94c","block_type":"box","text":"$100,001 - $500,000","page_number":37,"box":{"x":744,"y":319,"width":158,"height":11}},{"id":"96f107b8-37b0-4909-9c7e-1798510741fa","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":37,"box":{"x":69,"y":351,"width":403,"height":12}},{"id":"7cce7ca1-f078-4ce3-ac97-c1f217c5b2ca","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":37,"box":{"x":102,"y":374,"width":727,"height":11}},{"id":"b1f676e5-aa96-4f2a-8019-4e38f4ba9e67","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":37,"box":{"x":70,"y":389,"width":814,"height":11}},{"id":"9c3cd3c5-db75-4a36-967e-d13d71daa830","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of","page_number":37,"box":{"x":70,"y":404,"width":837,"height":11}},{"id":"d73c8218-c8c1-473a-b3ab-2c7bde4c2ed0","block_type":"box","text":"portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":37,"box":{"x":70,"y":419,"width":810,"height":12}},{"id":"db47d5d5-07db-45ef-b503-f3535b810e4d","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment","page_number":37,"box":{"x":69,"y":435,"width":782,"height":11}},{"id":"063f2881-9136-4565-a9d5-2b5452aa6f8c","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":37,"box":{"x":69,"y":450,"width":830,"height":11}},{"id":"ae39fcb0-019b-4f75-b04a-72bee7d9e8ff","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":37,"box":{"x":69,"y":465,"width":828,"height":11}},{"id":"8534b8b9-4797-4970-92e0-4646105c9d07","block_type":"box","text":"funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest","page_number":37,"box":{"x":68,"y":480,"width":834,"height":11}},{"id":"ab915b75-c938-408b-afc0-1f03dc6f0eb5","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":37,"box":{"x":70,"y":495,"width":777,"height":11}},{"id":"ce710efe-bba2-4125-bcd4-1cb72a0a5520","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":37,"box":{"x":70,"y":510,"width":821,"height":11}},{"id":"61f6321c-d70e-433d-9226-946af183e786","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":37,"box":{"x":69,"y":526,"width":819,"height":10}},{"id":"e3540e35-ccf0-45e7-b737-8a8fe9566a00","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":37,"box":{"x":69,"y":540,"width":832,"height":12}},{"id":"07cbdbf1-18a9-4abf-a2b3-e5ae52237b77","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":37,"box":{"x":68,"y":555,"width":804,"height":12}},{"id":"f655f668-ba20-4f7c-82dd-a1ee08eb6caf","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":37,"box":{"x":69,"y":571,"width":760,"height":11}},{"id":"09ab893f-5d2a-498f-b60a-7d1cdbc884ca","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":37,"box":{"x":69,"y":586,"width":834,"height":11}},{"id":"b6a9ccf8-70a4-4574-962a-c22c04ba6699","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":37,"box":{"x":69,"y":601,"width":836,"height":11}},{"id":"a507fbcd-51ef-43c6-8708-c01cd472ffb4","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":37,"box":{"x":69,"y":616,"width":822,"height":11}},{"id":"0d6f7ccc-838b-41ab-9c7e-2398666396aa","block_type":"box","text":"public information. Certain portfolio managers also may manage accounts whose investment strategies may at times","page_number":37,"box":{"x":70,"y":631,"width":835,"height":11}},{"id":"798e2c25-f998-4487-a248-5374ba19c3bc","block_type":"box","text":"be opposed to the strategy utilized for a fund. It should also be noted that Messrs. Bishop and Holl may be managing","page_number":37,"box":{"x":69,"y":646,"width":838,"height":11}},{"id":"23a6ebc8-b93e-4865-8f36-348b96504845","block_type":"box","text":"hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long only accounts,","page_number":37,"box":{"x":69,"y":661,"width":811,"height":12}},{"id":"2b6449b2-ec27-4d5a-ad06-4a8b846b0d39","block_type":"box","text":"subject to incentive fees. Messrs. Bishop and Holl may therefore be entitled to receive a portion of any incentive fees","page_number":37,"box":{"x":69,"y":676,"width":839,"height":12}},{"id":"6b22ed9a-c4a9-4b78-9719-685352526858","block_type":"box","text":"earned on such accounts.","page_number":37,"box":{"x":69,"y":692,"width":183,"height":9}},{"id":"41b4f324-2661-4707-9a6f-b2c4c6621ecb","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":37,"box":{"x":101,"y":714,"width":788,"height":11}},{"id":"df93b719-9cd4-4587-951f-650a5d764f38","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":37,"box":{"x":70,"y":729,"width":839,"height":11}},{"id":"8c14bd33-077d-4595-aba8-05980392c629","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":37,"box":{"x":68,"y":744,"width":823,"height":12}},{"id":"a8895502-99b0-4f30-8d18-7910223b22d0","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":37,"box":{"x":68,"y":760,"width":812,"height":11}},{"id":"3a74f99a-bf2f-4530-86a1-12c1425519fb","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":37,"box":{"x":69,"y":775,"width":777,"height":11}},{"id":"504624d5-2917-4709-b986-b90636a95890","block_type":"box","text":"investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.","page_number":37,"box":{"x":70,"y":790,"width":826,"height":11}},{"id":"4539970a-040b-485f-a5a2-11a4b4fba4e5","block_type":"box","text":"Accounting Services","page_number":37,"box":{"x":68,"y":820,"width":150,"height":11}},{"id":"b80a0c15-a37c-4b8c-b513-e739cb8df849","block_type":"box","text":"State Street Bank and Trust Company (“State Street”) serves as the accounting services provider for the Fund.","page_number":37,"box":{"x":102,"y":843,"width":791,"height":11}},{"id":"bb41c017-f5e0-47e0-9deb-7bb476c0db24","block_type":"box","text":"State Street maintains the books of account and other financial records (other than those maintained by the Fund’s","page_number":37,"box":{"x":69,"y":858,"width":824,"height":11}},{"id":"c04fe976-f5ed-4e8d-beb4-c0e375e54dd4","block_type":"box","text":"custodian); records general ledger entries; calculates daily net income; reconciles activity to the trial balance;","page_number":37,"box":{"x":69,"y":873,"width":779,"height":11}},{"id":"91dadea8-6963-480d-8fa5-bf26c8d9c862","block_type":"box","text":"calculates and publishes daily net asset value; prepares account balances; and provides such other accounting","page_number":37,"box":{"x":69,"y":888,"width":796,"height":11}},{"id":"f6da94f7-18a2-409d-854b-4c6962bea3e4","block_type":"box","text":"I-21","page_number":37,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"783dacde-f5e8-4439-a653-39781ac608f5","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":37,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8cd3ec1c-0f32-4ae8-bb02-c641755c1b56","block_type":"box","text":"services as may be required. In connection with its accounting services, State Street also provides certain","page_number":38,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"b84317a5-bf0b-4561-940a-723c8d12b826","block_type":"box","text":"administration services.","page_number":38,"box":{"x":69,"y":60,"width":170,"height":9}},{"id":"e4cf371d-3084-4b29-aa0e-f979abd6c8d3","block_type":"box","text":"The table below shows the amount paid by the Fund to State Street for accounting services for the periods","page_number":38,"box":{"x":101,"y":82,"width":761,"height":12}},{"id":"57353042-4baf-4bd3-a1fb-ed1d1a066f37","block_type":"box","text":"shown:","page_number":38,"box":{"x":69,"y":98,"width":48,"height":9}},{"id":"1f801e25-55bf-4a41-8860-b4ad73c08a1f","block_type":"box","text":"Fees Paid to State Street","page_number":38,"box":{"x":761,"y":126,"width":148,"height":7}},{"id":"94e2946a-4825-4752-a3cb-c3f4cf3bd1b0","block_type":"box","text":"Fiscal Year Ended April 30, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":38,"box":{"x":70,"y":144,"width":456,"height":10}},{"id":"170fa900-3b57-4d4d-8728-d352f299ceba","block_type":"box","text":".........................","page_number":38,"box":{"x":532,"y":151,"width":198,"height":1}},{"id":"d7f0286a-d32e-40a0-8636-f2d13edd3adb","block_type":"box","text":"$38,486","page_number":38,"box":{"x":804,"y":143,"width":62,"height":11}},{"id":"9d621c60-1717-42c2-8303-6cef3b43abbe","block_type":"box","text":"Fiscal Year Ended April 30, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":38,"box":{"x":70,"y":159,"width":456,"height":11}},{"id":"40e042c3-038c-4734-8ea7-2fcb71f34f56","block_type":"box","text":".........................","page_number":38,"box":{"x":532,"y":166,"width":198,"height":2}},{"id":"53529c81-a0da-4628-8a43-0ce72929ecf9","block_type":"box","text":"$43,701","page_number":38,"box":{"x":804,"y":158,"width":62,"height":11}},{"id":"f061d2f4-28dd-4e4b-a7ad-9efce60fb2b8","block_type":"box","text":"Fiscal Year Ended April 30, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":38,"box":{"x":70,"y":174,"width":456,"height":11}},{"id":"df5c3313-f604-4992-923f-94e36f2c7309","block_type":"box","text":".........................","page_number":38,"box":{"x":532,"y":181,"width":198,"height":2}},{"id":"ee4c4673-7ea6-4d55-b648-000141c1c6f3","block_type":"box","text":"$57,252","page_number":38,"box":{"x":804,"y":173,"width":62,"height":11}},{"id":"dfcdb143-29b5-4051-9558-7014b5fd28ad","block_type":"box","text":"Custodian","page_number":38,"box":{"x":69,"y":205,"width":72,"height":9}},{"id":"716a3468-d4cd-4be0-99e2-6ed70fb37114","block_type":"box","text":"State Street has been retained to act as custodian for the Fund and is located at One Congress Street, Suite 1,","page_number":38,"box":{"x":102,"y":228,"width":796,"height":11}},{"id":"de932cf4-6e46-47d3-b557-f686fa01bbcc","block_type":"box","text":"Boston, Massachusetts 02114-2016. The custodian, among other responsibilities, maintains a custody account or","page_number":38,"box":{"x":70,"y":243,"width":820,"height":11}},{"id":"031d39ed-0f93-467a-bc2f-0e186a92521d","block_type":"box","text":"accounts in the name of the Fund, receives and delivers all assets for the Fund upon purchase and upon sale or","page_number":38,"box":{"x":69,"y":258,"width":801,"height":11}},{"id":"ad42e154-409e-4e8a-8f81-dc874c853daf","block_type":"box","text":"maturity, and collects and receives all income and other payments and distributions on account of the assets of the","page_number":38,"box":{"x":69,"y":273,"width":825,"height":11}},{"id":"82a4138f-8ceb-4f92-95ad-5df9eaba34c8","block_type":"box","text":"Fund.","page_number":38,"box":{"x":70,"y":289,"width":36,"height":8}},{"id":"5b466198-87f2-4559-ac88-5e7adf74d66a","block_type":"box","text":"Transfer Agency and Shareholders’ Administrative Services","page_number":38,"box":{"x":68,"y":319,"width":432,"height":11}},{"id":"e959177f-9f5b-41b3-a40b-4503e0f57521","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”), which has its principal place of business at 118","page_number":38,"box":{"x":102,"y":341,"width":765,"height":12}},{"id":"2bf11ba1-4478-48b3-986e-c301eba646f1","block_type":"box","text":"Flanders Road, Westborough, Massachusetts 01581, serves as the transfer and dividend disbursement agent for the","page_number":38,"box":{"x":70,"y":356,"width":838,"height":12}},{"id":"bf2d5d16-645a-448c-8b4e-7f80140e5b85","block_type":"box","text":"Fund.","page_number":38,"box":{"x":70,"y":372,"width":36,"height":9}},{"id":"024c806f-16ed-49d8-8640-5bf47336a3aa","block_type":"box","text":"Pursuant to a Shareholders’ Administrative Services Agreement, the Manager provides certain shareholder","page_number":38,"box":{"x":102,"y":394,"width":762,"height":12}},{"id":"d314bd9b-7892-4d06-9adf-7f350accc0be","block_type":"box","text":"liaison services in connection with the Fund’s investor service center. The Fund reimburses the Manager for its costs","page_number":38,"box":{"x":70,"y":409,"width":834,"height":12}},{"id":"6943dec5-8e4b-49f9-9db3-4f9ca5387a90","block_type":"box","text":"in maintaining the service center, which costs include, among other things, employee salaries, leasehold expenses,","page_number":38,"box":{"x":70,"y":425,"width":823,"height":11}},{"id":"83e03e76-ee39-48b1-a43b-ab9add374eed","block_type":"box","text":"and other out-of-pocket expenses which are a component of the transfer agency fees in the Fund’s annual report.","page_number":38,"box":{"x":69,"y":440,"width":807,"height":11}},{"id":"c5a3089f-c326-4c36-9180-ffbf11b45452","block_type":"box","text":"The following table sets forth the fees paid by the Fund to the Manager pursuant to the Shareholders’","page_number":38,"box":{"x":101,"y":462,"width":725,"height":12}},{"id":"9a072920-6421-42e5-bc14-523ec25d0764","block_type":"box","text":"Administrative Services Agreement for the periods shown:","page_number":38,"box":{"x":68,"y":477,"width":412,"height":12}},{"id":"e10a1bcf-71da-4e5a-b663-9295aac54ce0","block_type":"box","text":"Fees Paid to BlackRock Fees Waived by BlackRock","page_number":38,"box":{"x":583,"y":506,"width":327,"height":9}},{"id":"c3acdbce-89ca-4e36-8ff7-2a9f0e6917d1","block_type":"box","text":"Fiscal Year Ended April 30, 2026. . . . . . . . .","page_number":38,"box":{"x":70,"y":523,"width":302,"height":11}},{"id":"0e563b72-83b7-465c-9853-96ebada02690","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . $5,579 $0","page_number":38,"box":{"x":378,"y":523,"width":462,"height":11}},{"id":"3b9dee6b-150e-4d29-ade9-9a1a8a8b8bbe","block_type":"box","text":"Fiscal Year Ended April 30, 2025. . . . . . . . .","page_number":38,"box":{"x":70,"y":539,"width":302,"height":10}},{"id":"1810b0ef-06b5-4734-a4f3-799f1e64652f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . $9,871 $0","page_number":38,"box":{"x":378,"y":538,"width":462,"height":11}},{"id":"28409863-05f9-49c5-beef-65b786f3feb5","block_type":"box","text":"Fiscal Year Ended April 30, 2024. . . . . . . . .","page_number":38,"box":{"x":70,"y":554,"width":302,"height":11}},{"id":"12c17920-df6b-486f-962f-d5b6f1cc24a3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . $9,272 $0","page_number":38,"box":{"x":378,"y":553,"width":462,"height":11}},{"id":"86ef5081-f6a8-4931-97f1-b53dd5d9daf4","block_type":"box","text":"Credit Agreement","page_number":38,"box":{"x":69,"y":585,"width":129,"height":11}},{"id":"00f06a55-33fb-4c60-a593-43fe84741704","block_type":"box","text":"The Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”),","page_number":38,"box":{"x":101,"y":608,"width":765,"height":11}},{"id":"3d119d27-5107-4eb7-9d8f-9c9eee6da8bf","block_type":"box","text":"is a party to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility terminates on","page_number":38,"box":{"x":70,"y":622,"width":748,"height":12}},{"id":"c2a66e6c-1225-4b98-8388-7c6472a6097a","block_type":"box","text":"April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding commitments designated","page_number":38,"box":{"x":68,"y":638,"width":823,"height":11}},{"id":"e15f1a6c-74fb-4b1a-bdbc-dab108572d3e","block_type":"box","text":"for certain Participating Funds, the Participating Funds, including the Fund, can borrow up to an aggregate","page_number":38,"box":{"x":68,"y":653,"width":757,"height":11}},{"id":"5cdb1ed5-41ac-4eb1-b7f0-edf763a79ea1","block_type":"box","text":"commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as","page_number":38,"box":{"x":69,"y":668,"width":801,"height":12}},{"id":"ab0300b3-002a-4388-a29f-b3bf9b40eff3","block_type":"box","text":"specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet shareholder","page_number":38,"box":{"x":69,"y":683,"width":751,"height":12}},{"id":"251c5ed6-32f1-471b-86ad-260cbacb06a9","block_type":"box","text":"redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit Agreement for","page_number":38,"box":{"x":69,"y":698,"width":784,"height":12}},{"id":"5cd32a3e-5ae2-4712-ac13-ea363794af51","block_type":"box","text":"leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectus and SAI, subject","page_number":38,"box":{"x":70,"y":714,"width":822,"height":11}},{"id":"238d22f7-67cc-41b0-beff-e61d9bf9a95a","block_type":"box","text":"to various other legal, regulatory or contractual limits. Borrowing results in interest expense and other fees and","page_number":38,"box":{"x":68,"y":729,"width":794,"height":11}},{"id":"6e0c7afe-3cec-49c4-a42b-049edc186ece","block_type":"box","text":"expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce the Fund’s","page_number":38,"box":{"x":69,"y":744,"width":809,"height":11}},{"id":"fe19bd07-971e-4bcc-919d-b9b44acd4665","block_type":"box","text":"return. The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate commitment","page_number":38,"box":{"x":69,"y":759,"width":814,"height":11}},{"id":"b9634531-f775-4dc6-930b-2499b64b438f","block_type":"box","text":"amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be charged","page_number":38,"box":{"x":69,"y":774,"width":800,"height":11}},{"id":"bca904a0-80e9-4d25-b928-65081e5ade45","block_type":"box","text":"interest at a variable rate.","page_number":38,"box":{"x":70,"y":789,"width":182,"height":9}},{"id":"df935885-7005-4309-b8db-0598029ed2ea","block_type":"box","text":"V. 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BlackRock Investments, LLC (“BRIL” or the “Distributor”), an affiliate of the Manager, acts as the Fund’s sole","page_number":38,"box":{"x":68,"y":872,"width":829,"height":12}},{"id":"67122031-f5a0-466b-9c07-57bae221cb5e","block_type":"box","text":"distributor.","page_number":38,"box":{"x":69,"y":888,"width":74,"height":8}},{"id":"4e8bb350-875f-429c-8039-d790cb2b78e4","block_type":"box","text":"I-22","page_number":38,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"eab0a36c-70f6-41d7-aeaa-6cbf236ca668","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"50864e9c-5ca9-47e3-b806-e55627f5a0d9","block_type":"box","text":"Investor A Shares","page_number":39,"box":{"x":638,"y":49,"width":102,"height":7}},{"id":"1ed3d166-4ea1-4d68-bf91-6773711ee982","block_type":"box","text":"Gross 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.","page_number":39,"box":{"x":70,"y":103,"width":285,"height":11}},{"id":"f143468a-632d-476c-ac07-15682297f5cd","block_type":"box","text":"..........","page_number":39,"box":{"x":362,"y":110,"width":75,"height":1}},{"id":"d0a70c89-0c63-4967-9f45-effd7d8dcc1d","block_type":"box","text":"$57,878 $3,643 $3,643 $0","page_number":39,"box":{"x":471,"y":102,"width":389,"height":11}},{"id":"638e3483-7f7e-4b4b-8933-44ffb79b7e1d","block_type":"box","text":"Fiscal Year Ended April 30, 2025. . . . . . .","page_number":39,"box":{"x":70,"y":118,"width":285,"height":11}},{"id":"4b6312be-53f2-4606-9476-60c9eb8684ce","block_type":"box","text":"..........","page_number":39,"box":{"x":362,"y":125,"width":75,"height":2}},{"id":"7d4eaa2b-646a-4880-856d-cfbe7f73a619","block_type":"box","text":"$20,873 $1,483 $1,483 $0","page_number":39,"box":{"x":471,"y":117,"width":389,"height":11}},{"id":"1cfb8f3e-5f3c-40d4-9cf5-721d063ce887","block_type":"box","text":"Fiscal Year Ended April 30, 2024. . . . . . .","page_number":39,"box":{"x":70,"y":133,"width":285,"height":11}},{"id":"d60da5ff-eef4-4a21-9874-ee5b0fddfaae","block_type":"box","text":"..........","page_number":39,"box":{"x":362,"y":140,"width":75,"height":2}},{"id":"9f1ba87a-95cc-4220-b356-fe12eefb749f","block_type":"box","text":"$23,501 $1,380 $1,380 $7","page_number":39,"box":{"x":471,"y":132,"width":389,"height":11}},{"id":"e47be696-0fe3-46f8-b90d-a111e5b583f0","block_type":"box","text":"Investor C Shares","page_number":39,"box":{"x":752,"y":162,"width":103,"height":8}},{"id":"a03d62c7-9dc1-45d3-b2ff-52b9f36b9074","block_type":"box","text":"CDSCs Received","page_number":39,"box":{"x":698,"y":178,"width":96,"height":7}},{"id":"acda11de-a4a3-4670-be64-5729c2ee3eae","block_type":"box","text":"by BRIL","page_number":39,"box":{"x":724,"y":188,"width":44,"height":9}},{"id":"14ab93ce-62ca-4ca6-aae2-21c145e2fa39","block_type":"box","text":"CDSCs Paid to","page_number":39,"box":{"x":824,"y":178,"width":85,"height":7}},{"id":"0551a0e5-0389-4b9f-959c-18e127f68c37","block_type":"box","text":"Affiliates","page_number":39,"box":{"x":841,"y":188,"width":52,"height":7}},{"id":"4179ed6f-b449-4013-b745-01abb6c74a36","block_type":"box","text":"Fiscal Year Ended April 30, 2026. . . . .","page_number":39,"box":{"x":70,"y":206,"width":270,"height":11}},{"id":"a81d541d-dc38-48d6-8486-ac265a64dea6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,031 $3,031","page_number":39,"box":{"x":347,"y":205,"width":546,"height":11}},{"id":"9cd40bf3-9883-4e5c-af27-ed32a403e7b2","block_type":"box","text":"Fiscal Year Ended April 30, 2025. . . . .","page_number":39,"box":{"x":70,"y":221,"width":270,"height":11}},{"id":"f04a6b59-84a3-4ff6-a826-044c17807108","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 377 $ 377","page_number":39,"box":{"x":347,"y":220,"width":546,"height":11}},{"id":"2920da0c-3d60-4ad4-b06a-38c689d92b93","block_type":"box","text":"Fiscal Year Ended April 30, 2024. . . . .","page_number":39,"box":{"x":70,"y":236,"width":270,"height":11}},{"id":"d7c0f062-2130-4bef-b1b5-f84ead584a3e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 931 $ 931","page_number":39,"box":{"x":347,"y":235,"width":546,"height":11}},{"id":"01f8a60a-9a6c-4146-a0b7-addb15a2e53c","block_type":"box","text":"The table below provides information for the most recent fiscal year about the 12b-1 fees the Fund paid to BRIL","page_number":39,"box":{"x":101,"y":260,"width":796,"height":11}},{"id":"2ad1ecb9-ed6c-46c6-bd17-bfc877a4f4ea","block_type":"box","text":"under the Fund’s 12b-1 plans. A portion of the fees collected by BRIL were paid to affiliates for providing shareholder","page_number":39,"box":{"x":69,"y":275,"width":837,"height":11}},{"id":"092cdc69-21b0-4924-9243-4d635a3ceff4","block_type":"box","text":"servicing activities for Investor A Shares and for providing shareholder servicing and distribution-related activities and","page_number":39,"box":{"x":69,"y":290,"width":836,"height":12}},{"id":"14b77935-ae97-406f-8317-60b428715da5","block_type":"box","text":"services for Investor C Shares.","page_number":39,"box":{"x":69,"y":305,"width":219,"height":9}},{"id":"e132d539-fd3c-4633-b4a8-2a7fe9dae68b","block_type":"box","text":"Class Name","page_number":39,"box":{"x":69,"y":344,"width":68,"height":7}},{"id":"e493603a-8054-4db4-8a48-fa084e5565a1","block_type":"box","text":"Fees Paid to BRIL","page_number":39,"box":{"x":806,"y":334,"width":103,"height":7}},{"id":"14ecffac-9d79-468d-b76a-851b681670b4","block_type":"box","text":"Investor A Shares .","page_number":39,"box":{"x":70,"y":362,"width":134,"height":8}},{"id":"f8a34f63-1824-450a-be07-bd61e76614d0","block_type":"box","text":"......................................................................","page_number":39,"box":{"x":210,"y":369,"width":564,"height":1}},{"id":"f4dadd12-e5cd-4ec2-a8a2-c02db0a48c36","block_type":"box","text":"$207,526","page_number":39,"box":{"x":822,"y":361,"width":71,"height":11}},{"id":"35451cb2-b44e-43bd-972b-009bcd0fae1d","block_type":"box","text":"Investor C Shares . . .","page_number":39,"box":{"x":70,"y":377,"width":150,"height":9}},{"id":"fb20580c-6595-4356-a12e-39e964cbab17","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 62,100","page_number":39,"box":{"x":226,"y":376,"width":667,"height":11}},{"id":"dd9cb219-dbb0-4c40-a880-6f4a910c0f43","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":39,"box":{"x":68,"y":408,"width":318,"height":11}},{"id":"64729895-381b-4c34-ab4a-fd410c28cf4a","block_type":"box","text":"An illustration of the computation of the public offering price of the Investor A Shares of the Fund based on the","page_number":39,"box":{"x":101,"y":431,"width":790,"height":11}},{"id":"1414fec3-2164-484d-a71d-35455773de28","block_type":"box","text":"value of the Fund’s Investor A Shares’ net assets and number of Investor A Shares outstanding as of April 30, 2026","page_number":39,"box":{"x":68,"y":446,"width":831,"height":11}},{"id":"b0faec2c-b4ab-4cea-98a9-5ff5bb921874","block_type":"box","text":"follows:","page_number":39,"box":{"x":68,"y":461,"width":53,"height":9}},{"id":"02021d00-88e9-4bd3-9f29-e9f0a4ed3cbe","block_type":"box","text":"Investor A Shares","page_number":39,"box":{"x":807,"y":489,"width":102,"height":7}},{"id":"5864227b-062b-411b-b24f-4f168d4694d3","block_type":"box","text":"Net Assets","page_number":39,"box":{"x":70,"y":507,"width":76,"height":9}},{"id":"a139dca5-649b-45f9-b94a-f746f4dda195","block_type":"box","text":".............................................................................","page_number":39,"box":{"x":154,"y":514,"width":621,"height":2}},{"id":"bdde1aa9-e5b3-42d0-aed7-45e0a9d1277d","block_type":"box","text":"$98,208,544","page_number":39,"box":{"x":810,"y":506,"width":96,"height":11}},{"id":"ea4b07c9-64db-495f-ba5e-e81d1ab47c3d","block_type":"box","text":"Number of Shares Outstanding. . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":39,"box":{"x":70,"y":522,"width":444,"height":11}},{"id":"feb58b0a-f883-40cd-b9f2-dbad89192575","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,","page_number":39,"box":{"x":521,"y":522,"width":321,"height":11}},{"id":"201e7407-456a-44c2-a18b-7760c0313ec2","block_type":"box","text":"647,588","page_number":39,"box":{"x":844,"y":522,"width":62,"height":11}},{"id":"b069f393-0bd2-45e0-b0c3-3cda2922e7a8","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding) .","page_number":39,"box":{"x":70,"y":537,"width":583,"height":12}},{"id":"feabf42b-a164-403a-a81b-b5f3cb03abed","block_type":"box","text":"...............","page_number":39,"box":{"x":659,"y":545,"width":116,"height":1}},{"id":"53d8a944-c458-4e1d-b16d-48b5eda389df","block_type":"box","text":"$37.09","page_number":39,"box":{"x":854,"y":537,"width":52,"height":10}},{"id":"4aa7c0ce-e239-474e-9ec7-bcb170ba3041","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":39,"box":{"x":69,"y":552,"width":534,"height":12}},{"id":"d16ca946-6c15-4ef4-b513-82b5b68b97e1","block_type":"box","text":"1","page_number":39,"box":{"x":604,"y":553,"width":4,"height":4}},{"id":"8da05090-2c20-40b0-9fd3-e154c52e775c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . $2.05","page_number":39,"box":{"x":611,"y":552,"width":295,"height":10}},{"id":"429eb29b-997e-4b10-8f00-b2749d1bdd66","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":39,"box":{"x":69,"y":572,"width":706,"height":11}},{"id":"79d8d56f-5ffd-4d3f-832f-ceacf1a7f937","block_type":"box","text":"$39.14","page_number":39,"box":{"x":854,"y":571,"width":52,"height":11}},{"id":"717910ce-49f2-4be5-ae4e-9684578e1eb3","block_type":"box","text":"1","page_number":39,"box":{"x":69,"y":604,"width":3,"height":4}},{"id":"bf1c51a2-757a-42f2-82c9-b0fb65fecb70","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge applicable.","page_number":39,"box":{"x":94,"y":604,"width":527,"height":9}},{"id":"63fbfbab-2be7-437c-9772-2e174b520b94","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’ net asset value computed as","page_number":39,"box":{"x":101,"y":625,"width":787,"height":11}},{"id":"5226c2d2-d929-4b3e-9917-a8f754051514","block_type":"box","text":"set forth above for Investor A Shares. Though not subject to a sales charge, certain share classes may be subject to","page_number":39,"box":{"x":69,"y":640,"width":833,"height":11}},{"id":"1e414113-41f7-4c3b-9698-817c651f7de6","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":39,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"00640b14-c819-4a1d-909c-13b7981947d6","block_type":"box","text":"Shares” and “Pricing of Shares” in Part II of this SAI.","page_number":39,"box":{"x":69,"y":670,"width":377,"height":11}},{"id":"2932cb3a-cdff-4063-a85b-530e0eafde9d","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":39,"box":{"x":68,"y":700,"width":302,"height":12}},{"id":"b62954cd-78e9-4ab6-a84b-5cc623cdf272","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in Part II of this SAI for more information.","page_number":39,"box":{"x":102,"y":723,"width":609,"height":11}},{"id":"66f32271-7c74-4486-908f-291a11323f19","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates for the","page_number":39,"box":{"x":102,"y":746,"width":795,"height":11}},{"id":"fc426c97-14f1-40c5-879a-885fc6ac4307","block_type":"box","text":"periods shown below is set forth in the following table:","page_number":39,"box":{"x":70,"y":761,"width":388,"height":11}},{"id":"00643e45-64dd-40fe-af3c-134621b8a9a3","block_type":"box","text":"Aggregate Brokerage","page_number":39,"box":{"x":613,"y":789,"width":125,"height":9}},{"id":"7a41a58d-2a1d-4925-beb8-c4ce374f93ee","block_type":"box","text":"Commissions Paid","page_number":39,"box":{"x":623,"y":799,"width":106,"height":7}},{"id":"349a5706-f4c1-4460-b176-4cbea730dbb7","block_type":"box","text":"Brokerage Commissions","page_number":39,"box":{"x":769,"y":789,"width":140,"height":9}},{"id":"f9117ac7-28ff-42b9-a7c5-6d076abd0b8b","block_type":"box","text":"Paid to Affiliates","page_number":39,"box":{"x":791,"y":799,"width":96,"height":7}},{"id":"d70cc6ad-aded-4cf6-9b2a-10f851738b39","block_type":"box","text":"Fiscal Year Ended April 30, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $101,687 $0","page_number":39,"box":{"x":70,"y":816,"width":778,"height":12}},{"id":"2a5e12b7-62ad-4b67-b526-73db3277163e","block_type":"box","text":"Fiscal Year Ended April 30, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 85,255 $0","page_number":39,"box":{"x":70,"y":831,"width":778,"height":12}},{"id":"e8cf7f3e-3137-4049-86dd-0f537a124386","block_type":"box","text":"Fiscal Year Ended April 30, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 72,810 $0","page_number":39,"box":{"x":70,"y":846,"width":778,"height":12}},{"id":"6365e2b4-30e2-452f-8f6c-ebb68435a9cf","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":39,"box":{"x":101,"y":871,"width":770,"height":11}},{"id":"38b25d7b-861a-46cd-8516-07047a0477c0","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":39,"box":{"x":69,"y":886,"width":814,"height":11}},{"id":"b2cf5953-b345-4d3e-83a3-7b8dbb0a47bf","block_type":"box","text":"the approximate dollar amount of the transactions involved for the most recent fiscal year ended April 30, 2026. The","page_number":39,"box":{"x":68,"y":901,"width":833,"height":11}},{"id":"e2353705-6cfe-4395-8fcb-6c31ee8a16e6","block_type":"box","text":"I-23","page_number":39,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"b62a2231-5203-4c4c-92a0-b25b86963e51","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eeee8a70-e2f7-4806-93ee-db362422ed26","block_type":"box","text":"provision of Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage","page_number":40,"box":{"x":70,"y":45,"width":839,"height":11}},{"id":"9445c93b-ca8b-4778-a16d-0d016676eb34","block_type":"box","text":"business with such brokers.","page_number":40,"box":{"x":69,"y":60,"width":198,"height":9}},{"id":"bbc555c9-2822-43f6-b8dd-96fa49a682e1","block_type":"box","text":"Amount of Commissions","page_number":40,"box":{"x":325,"y":88,"width":141,"height":7}},{"id":"e457a569-3cce-4958-bcc6-18560c93d0f0","block_type":"box","text":"Paid to Brokers for","page_number":40,"box":{"x":341,"y":98,"width":109,"height":7}},{"id":"aab35a15-9e73-46de-b267-0dc0b4502c78","block_type":"box","text":"Providing 28(e) Eligible","page_number":40,"box":{"x":327,"y":108,"width":136,"height":9}},{"id":"cb3ba00a-2b39-49e8-9b10-a6e73e374656","block_type":"box","text":"Research Services","page_number":40,"box":{"x":342,"y":118,"width":107,"height":7}},{"id":"e4a211ba-3802-41ad-9a9b-2a4ced3567ad","block_type":"box","text":"Amount of Brokerage","page_number":40,"box":{"x":528,"y":108,"width":124,"height":9}},{"id":"be08fdf2-327b-40c4-9fbe-6bef2668669e","block_type":"box","text":"Transactions Involved","page_number":40,"box":{"x":527,"y":118,"width":126,"height":7}},{"id":"3d7d3a93-c885-4275-aae7-051ef48dc8f6","block_type":"box","text":"$0 $0","page_number":40,"box":{"x":386,"y":135,"width":213,"height":11}},{"id":"2b984be5-2ea4-4121-bf28-5962751867c6","block_type":"box","text":"As of April 30, 2026, the Fund held no securities of its regular brokers or dealers (as defined in Rule 10b-1","page_number":40,"box":{"x":101,"y":160,"width":764,"height":11}},{"id":"16ddc61e-03bd-484c-8c46-4688ad91cc62","block_type":"box","text":"under the Investment Company Act) or their parents whose shares were purchased during the fiscal year ended","page_number":40,"box":{"x":69,"y":175,"width":792,"height":11}},{"id":"d3b5e5d9-2a4f-4803-bd6e-b07426823cb8","block_type":"box","text":"April 30, 2026.","page_number":40,"box":{"x":68,"y":190,"width":108,"height":11}},{"id":"c5027941-66a5-4c4c-ba71-931560ff8315","block_type":"box","text":"Securities Lending","page_number":40,"box":{"x":101,"y":213,"width":135,"height":11}},{"id":"53ad549b-2d9f-4915-b22d-84e3775b74ba","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":40,"box":{"x":101,"y":236,"width":807,"height":11}},{"id":"07ed0151-14a1-47c5-b1ac-36c72a354f44","block_type":"box","text":"exemptive order from the Commission permitting it to lend portfolio securities to borrowers affiliated with the Fund","page_number":40,"box":{"x":69,"y":251,"width":817,"height":11}},{"id":"c976cd0c-c340-4f8d-a2bb-f112824a70b2","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":40,"box":{"x":69,"y":266,"width":813,"height":11}},{"id":"12085dc0-a075-42d4-8f2d-f9727842e07e","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":40,"box":{"x":70,"y":281,"width":838,"height":11}},{"id":"9b9d7f3b-03d3-4483-bdfd-b3a336996e18","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":40,"box":{"x":69,"y":296,"width":813,"height":11}},{"id":"43a27c14-15ec-4439-9451-33d2f33be421","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":40,"box":{"x":70,"y":311,"width":646,"height":11}},{"id":"3fd9c85c-b54b-4567-80c1-96e8c1547fdb","block_type":"box","text":"The Fund retains a portion of the securities lending income and remits the remaining portion to BIM as","page_number":40,"box":{"x":101,"y":334,"width":735,"height":11}},{"id":"e1f4dd7f-56f7-405b-904a-ffa2bf09b511","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":40,"box":{"x":69,"y":349,"width":834,"height":11}},{"id":"4e00d675-b079-47ca-b302-04673de6a4f8","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":40,"box":{"x":70,"y":364,"width":822,"height":11}},{"id":"9fbe53ef-25e2-4b6c-a1b9-1e5b2f3bd243","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":40,"box":{"x":69,"y":379,"width":787,"height":11}},{"id":"2ce6f785-61f9-4506-99fb-663f5d6bfe0a","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":40,"box":{"x":69,"y":394,"width":783,"height":12}},{"id":"b354b2aa-34da-4e56-96f1-11eb9936eb70","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the","page_number":40,"box":{"x":70,"y":409,"width":800,"height":12}},{"id":"88974d60-0202-44dd-8ede-a156a03cfa64","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":40,"box":{"x":70,"y":424,"width":813,"height":12}},{"id":"622234c1-945b-413c-82fd-86fe3ee9feb0","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":40,"box":{"x":70,"y":440,"width":830,"height":11}},{"id":"a520e03b-6a6b-4b43-9eb5-ff0b32a38adc","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":40,"box":{"x":69,"y":455,"width":773,"height":11}},{"id":"69bde16a-692f-4852-b7b1-645239934f61","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":40,"box":{"x":101,"y":477,"width":776,"height":12}},{"id":"9f2c93bf-5e17-42f4-92ce-8f010f3d9410","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":40,"box":{"x":69,"y":492,"width":831,"height":12}},{"id":"ead26361-7748-4189-bbfd-5f01857aa6d9","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":40,"box":{"x":68,"y":508,"width":812,"height":11}},{"id":"3d4a6199-e654-4fe9-9904-907725123d57","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":40,"box":{"x":69,"y":523,"width":799,"height":11}},{"id":"5310cfe5-fffa-4c3f-a165-3d388dd05291","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":40,"box":{"x":68,"y":538,"width":835,"height":11}},{"id":"dc9dcf52-b2d0-494a-9031-e5904dc813d0","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":40,"box":{"x":69,"y":553,"width":818,"height":11}},{"id":"a4f3d107-bae9-4603-a6ee-696dac90fd75","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":40,"box":{"x":68,"y":568,"width":789,"height":11}},{"id":"4405f0aa-9b26-49ba-9c8a-6e33e6e07930","block_type":"box","text":"making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount","page_number":40,"box":{"x":69,"y":583,"width":829,"height":12}},{"id":"2601be42-9750-42fd-8d57-682b039f095a","block_type":"box","text":"of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":40,"box":{"x":69,"y":598,"width":839,"height":11}},{"id":"473a40fb-204e-47a3-aedc-183c89d39825","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":40,"box":{"x":69,"y":613,"width":802,"height":12}},{"id":"0672cdab-702f-4ae7-938b-9640cdc85f7d","block_type":"box","text":"portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value","page_number":40,"box":{"x":70,"y":629,"width":830,"height":11}},{"id":"2a38fcf4-bc2e-4887-812c-2df8b05d50cd","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":40,"box":{"x":69,"y":644,"width":838,"height":11}},{"id":"cb726f01-dd49-47ea-8c28-5095d72d0f13","block_type":"box","text":"Fund’s returns on securities lending.","page_number":40,"box":{"x":70,"y":659,"width":258,"height":11}},{"id":"3dcb0bca-559a-4908-84d7-10baf3859f57","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":40,"box":{"x":102,"y":681,"width":774,"height":12}},{"id":"bf827f25-3f29-4ebd-b0e6-1e36348c5157","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity, or fund of","page_number":40,"box":{"x":69,"y":697,"width":794,"height":11}},{"id":"6111c22b-a00b-48f7-a3a7-17c21454d320","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":40,"box":{"x":68,"y":712,"width":809,"height":11}},{"id":"1b7eb43e-1026-48f9-bac2-6297008e9e16","block_type":"box","text":"Fund and BIM.","page_number":40,"box":{"x":70,"y":727,"width":100,"height":9}},{"id":"0a96908b-8fef-4732-a08f-bf5aba4ad1d9","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 82% of securities","page_number":40,"box":{"x":102,"y":749,"width":783,"height":12}},{"id":"d29608cd-889c-4825-a85c-a48507aa5222","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":40,"box":{"x":70,"y":765,"width":815,"height":11}},{"id":"dc22d0f0-b3aa-4837-b31a-25094ab26892","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":40,"box":{"x":69,"y":780,"width":463,"height":11}},{"id":"371d664e-f047-453f-bc8f-bcebe721255b","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":40,"box":{"x":102,"y":802,"width":753,"height":12}},{"id":"51f2905c-182f-4625-ad7a-d2ed3cc35bd4","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":40,"box":{"x":69,"y":818,"width":778,"height":11}},{"id":"3b624dc9-b165-48af-8861-b91ab19c4d46","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":40,"box":{"x":70,"y":833,"width":817,"height":11}},{"id":"c523fd35-03d1-4a8e-8a74-742f11d9397d","block_type":"box","text":"lending income as follows: (i) 85% of securities lending income (which excludes collateral investment fees); and","page_number":40,"box":{"x":70,"y":848,"width":794,"height":11}},{"id":"d9263f46-808f-461d-a9a3-881381466efe","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":40,"box":{"x":69,"y":863,"width":825,"height":11}},{"id":"44ad43b8-080f-41f9-826f-44aef3068d56","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":40,"box":{"x":102,"y":886,"width":683,"height":11}},{"id":"ee960ab3-2cc2-414f-a3e8-72bffd9dca00","block_type":"box","text":"I-24","page_number":40,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"72482b40-120c-4682-b939-b7237b59d827","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d09fc609-f881-4dfe-898b-5d335d3e510c","block_type":"box","text":"The services provided to the Fund by BIM, in the most recent fiscal year ended April 30, 2026, primarily included","page_number":41,"box":{"x":101,"y":45,"width":804,"height":11}},{"id":"d572c2ae-f02e-49ce-9b93-11438cc64627","block_type":"box","text":"the following:","page_number":41,"box":{"x":68,"y":60,"width":93,"height":11}},{"id":"ba904be4-4d58-4435-8e3b-4791dc8904e7","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":41,"box":{"x":69,"y":80,"width":818,"height":11}},{"id":"f8d61295-52ab-415b-8a44-76aeaa19cfc8","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":41,"box":{"x":102,"y":95,"width":333,"height":11}},{"id":"fe88ba5a-5cc1-47d5-9ce1-984dac02f47f","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":41,"box":{"x":69,"y":115,"width":538,"height":11}},{"id":"645ece1f-0803-41cd-97f1-f205c777b057","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":41,"box":{"x":69,"y":135,"width":330,"height":12}},{"id":"2f08a056-3ee1-4744-966e-9ba173bdcadf","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":41,"box":{"x":69,"y":155,"width":834,"height":12}},{"id":"bf9573ac-acb1-4f3b-b91e-0c499a6b0e6f","block_type":"box","text":"of excess collateral, as necessary;","page_number":41,"box":{"x":102,"y":171,"width":246,"height":11}},{"id":"7fe5dac2-7e0e-43f4-a5e1-b983023649c5","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":41,"box":{"x":69,"y":191,"width":562,"height":11}},{"id":"f40e4359-5a03-4e9c-b48b-58d447eddf56","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":41,"box":{"x":69,"y":211,"width":665,"height":11}},{"id":"aa8906bf-9748-4dec-b4ea-9933df6ba881","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":41,"box":{"x":69,"y":231,"width":822,"height":11}},{"id":"b861d859-8a41-4c02-8854-8cc4e59cf0c3","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":41,"box":{"x":101,"y":246,"width":803,"height":11}},{"id":"64ade8d4-b1c8-4b26-ad7f-c36d3552cbd1","block_type":"box","text":"of the loaned securities; and","page_number":41,"box":{"x":102,"y":261,"width":203,"height":11}},{"id":"4ae9e5d3-d62d-40fd-b264-a82894285a44","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":41,"box":{"x":69,"y":281,"width":808,"height":12}},{"id":"8f2fe035-2af9-4377-bd7e-8fb63691c728","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":41,"box":{"x":101,"y":304,"width":805,"height":11}},{"id":"b0d83ee2-dd94-4307-8618-d89fc237bf86","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended April 30, 2026.","page_number":41,"box":{"x":69,"y":319,"width":548,"height":12}},{"id":"9aee4265-ce02-418a-997b-55fa1a0ba7ef","block_type":"box","text":"Gross income from securities lending activities","page_number":41,"box":{"x":69,"y":347,"width":343,"height":11}},{"id":"2a9cff0a-9026-42e9-a89b-191ac8dc3713","block_type":"box","text":"..................................................","page_number":41,"box":{"x":414,"y":354,"width":401,"height":2}},{"id":"96711b27-8c1d-4e6a-b177-d1b44087c96d","block_type":"box","text":"$104,041","page_number":41,"box":{"x":837,"y":346,"width":72,"height":12}},{"id":"921153cd-16b9-4e27-b755-c26cba9152d7","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":41,"box":{"x":70,"y":366,"width":565,"height":12}},{"id":"fdecfb6f-2415-456c-ac64-86ba60520beb","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent .","page_number":41,"box":{"x":79,"y":382,"width":565,"height":11}},{"id":"4c99206f-164d-488b-8cf2-d6a084e2be2a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . $ 1,163","page_number":41,"box":{"x":650,"y":381,"width":259,"height":11}},{"id":"d5931a78-2b83-42bc-9d30-73cc4670fd9c","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM . .","page_number":41,"box":{"x":79,"y":397,"width":679,"height":11}},{"id":"6929131d-f3e6-41df-9d59-56fffa59627b","block_type":"box","text":". . . . . . . $ 978","page_number":41,"box":{"x":765,"y":396,"width":144,"height":11}},{"id":"9e2d36c1-e225-40f5-a3cc-751333da94fb","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM","page_number":41,"box":{"x":78,"y":412,"width":519,"height":11}},{"id":"79127a2f-b2d5-4728-9738-777d363c1d90","block_type":"box","text":"........................... $ 0","page_number":41,"box":{"x":602,"y":411,"width":307,"height":11}},{"id":"a8fdf7f0-f1e3-4dd2-81d8-e4663691526b","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM","page_number":41,"box":{"x":79,"y":427,"width":526,"height":11}},{"id":"0da02b40-8192-4d1c-8237-47ee84b567e4","block_type":"box","text":".......................... $ 0","page_number":41,"box":{"x":610,"y":426,"width":299,"height":11}},{"id":"3ddb7e72-554d-490d-b0b9-06c0b445425f","block_type":"box","text":"Rebates (paid to borrowers)","page_number":41,"box":{"x":79,"y":442,"width":197,"height":11}},{"id":"ac0d36d2-6920-4db9-8b89-391c72acaf23","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 96,365","page_number":41,"box":{"x":284,"y":441,"width":625,"height":12}},{"id":"3d831205-2972-4fd9-9987-fabdb32b6307","block_type":"box","text":"Other fees not included in securities lending income paid to BIM . . . . . . . . .","page_number":41,"box":{"x":79,"y":457,"width":532,"height":12}},{"id":"d943a1c4-7558-4b70-a44e-ea2653f4b583","block_type":"box","text":"......................... $ 0","page_number":41,"box":{"x":618,"y":457,"width":291,"height":10}},{"id":"13dfe31e-4898-4a36-8ead-1f48a3169458","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":41,"box":{"x":68,"y":472,"width":455,"height":11}},{"id":"35ff1ffa-8bb8-4f51-aaf1-ff2157e9f8b9","block_type":"box","text":"....................................","page_number":41,"box":{"x":528,"y":480,"width":287,"height":1}},{"id":"faf2552c-75b3-4bd4-b2c8-52edc9ce2fb0","block_type":"box","text":"$ 98,506","page_number":41,"box":{"x":837,"y":472,"width":72,"height":11}},{"id":"4e127798-4b14-4653-9f5d-f0eec0be14cd","block_type":"box","text":"Net income from securities lending activities","page_number":41,"box":{"x":69,"y":492,"width":327,"height":11}},{"id":"e31e3951-970c-42e3-8bb2-4be58423a823","block_type":"box","text":"...................................................","page_number":41,"box":{"x":406,"y":499,"width":409,"height":2}},{"id":"03ccd7ce-0dfa-43b1-a7ec-9ea4f4b2d8ba","block_type":"box","text":"$ 5,535","page_number":41,"box":{"x":837,"y":491,"width":72,"height":12}},{"id":"965f26c0-26b2-41d4-9a34-2ede3f722e44","block_type":"box","text":"VIII. Additional Information","page_number":41,"box":{"x":68,"y":528,"width":195,"height":9}},{"id":"8132c975-dd22-411c-b0f8-0696902c88cc","block_type":"box","text":"The Fund was organized as a Massachusetts business trust on April 12, 1985. On November 1, 2000, the Fund","page_number":41,"box":{"x":101,"y":551,"width":801,"height":11}},{"id":"6b5e629b-7ee9-43b0-bee9-a182fe79f85a","block_type":"box","text":"changed its name from Merrill Lynch Global Resources Trust to Merrill Lynch Natural Resources Trust. On or about","page_number":41,"box":{"x":69,"y":566,"width":816,"height":11}},{"id":"cec1fbd9-01f5-414d-bf91-98c43cf9b15d","block_type":"box","text":"September 29, 2006, the Fund changed its name from Merrill Lynch Natural Resources Trust to BlackRock Natural","page_number":41,"box":{"x":69,"y":581,"width":817,"height":11}},{"id":"20855735-f613-4ac0-b4a6-eecdc7c349b2","block_type":"box","text":"Resources Trust.","page_number":41,"box":{"x":70,"y":596,"width":118,"height":9}},{"id":"e3c24595-6890-4c0a-93ad-c2d2bbf05ade","block_type":"box","text":"Description of Shares","page_number":41,"box":{"x":69,"y":626,"width":156,"height":11}},{"id":"808d58fb-8ca0-4f6c-99be-6c789ee33be9","block_type":"box","text":"The Declaration of Trust of the Fund permits the Trustees to issue an unlimited number of full and fractional","page_number":41,"box":{"x":101,"y":649,"width":770,"height":11}},{"id":"2356032e-53c5-40c3-90fb-dd3fa81694de","block_type":"box","text":"shares of beneficial interest, par value $0.10 per share, of different classes and to divide or combine the shares of","page_number":41,"box":{"x":69,"y":663,"width":826,"height":12}},{"id":"8e650510-d8cb-461d-bfb6-b51f3d70a563","block_type":"box","text":"each class into a greater or lesser number of shares without thereby changing the proportionate beneficial interest in","page_number":41,"box":{"x":69,"y":679,"width":836,"height":11}},{"id":"aeefa737-336a-47c0-9ee1-3c818af7cc94","block_type":"box","text":"the Fund. At the date of this Statement of Additional Information, the shares of the Fund are divided into Investor A,","page_number":41,"box":{"x":68,"y":694,"width":825,"height":11}},{"id":"2966d581-9ee2-4176-88bf-f3102c6ce2ac","block_type":"box","text":"Investor C and Institutional Shares. Under the Declaration of Trust, the Trustees have the authority to issue separate","page_number":41,"box":{"x":70,"y":709,"width":832,"height":11}},{"id":"34eefd74-051b-4324-b77e-ed212bdaa6af","block_type":"box","text":"classes of shares which would represent interests in the assets of the Fund. The Board of Trustees of the Fund may","page_number":41,"box":{"x":69,"y":724,"width":830,"height":11}},{"id":"912b3e53-5235-4e69-b572-f3d8c3dc46ad","block_type":"box","text":"classify and reclassify shares of the Fund into additional or other shares of beneficial interest at a future date. Upon","page_number":41,"box":{"x":69,"y":739,"width":829,"height":12}},{"id":"6280afca-62ca-4c47-8e90-5982b27ac259","block_type":"box","text":"liquidation of the Fund, shareholders of each class are entitled to share pro rata in the net assets of the Fund","page_number":41,"box":{"x":70,"y":755,"width":782,"height":11}},{"id":"211d7055-fc05-4e47-b404-8e59f9504c28","block_type":"box","text":"available for distribution to shareholders, except for any expenses which may be attributable only to one class.","page_number":41,"box":{"x":69,"y":770,"width":787,"height":11}},{"id":"522a67f2-3e46-4c5e-b659-a98c8e17d513","block_type":"box","text":"Shares have no preemptive rights. The rights of redemption, conversion and exchange are described elsewhere","page_number":41,"box":{"x":69,"y":785,"width":793,"height":11}},{"id":"475aadd2-b1fb-4406-b963-4b45e8973809","block_type":"box","text":"herein and in the Prospectus. Shares are fully paid and non-assessable by the Fund. 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Additional copies of the Fund’s annual and semi-annual reports to","page_number":43,"box":{"x":69,"y":264,"width":815,"height":12}},{"id":"146ef3eb-0fe0-44ee-b357-25b69c341f1e","block_type":"box","text":"shareholders and the Fund’s Annual and Semi-Annual Financial Statements and Additional Information may be","page_number":43,"box":{"x":69,"y":280,"width":785,"height":11}},{"id":"e032b32c-1e56-45bb-8749-bf3204070864","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":43,"box":{"x":69,"y":295,"width":836,"height":11}},{"id":"f3b416a5-99f3-4e7f-91f0-5862ff2a8045","block_type":"box","text":"I-27","page_number":43,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"b4c3b670-59bf-4efc-8c6a-eb6dd136b09c","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"84079d0a-7b94-434b-a0db-c033d78e3824","block_type":"box","text":"PART II","page_number":44,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"78145c57-69e0-4322-9a67-c55d26e2094c","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":44,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"170ad48e-3c3a-4bb2-a3d7-4d22d93b963e","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Certain Funds may also be referred to as “Municipal Funds” if","page_number":44,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"41b2cd27-fbe6-42bb-8315-2d36f9832db5","block_type":"box","text":"they invest certain of their assets in municipal investments described below.","page_number":44,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"38d2ade1-8444-4d17-8247-7e228644e13f","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":44,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"d185c1d9-5e35-4c0a-aa79-21fd227d337f","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":44,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"95a97cf0-45f0-4f76-98d2-86591f688b8e","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":44,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"d7870416-ca2a-4a73-a387-a528d774cc13","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":44,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"3df538ad-2257-472f-a7a0-296909a8a557","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":44,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"0c1930ed-b770-473e-a08e-c2ac97742237","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":44,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"c40fd6ce-4d8a-4b81-a344-3942febd526b","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":44,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"6b6528dd-38b5-4fb8-a424-d3c2fc7bcf2e","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":44,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"fdf6a599-a076-4a0b-8997-40a45941dd68","block_type":"box","text":"Articles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “charter.”","page_number":44,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"4da86aa5-cf65-413b-9dbf-f1021175bac1","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":44,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"5eb64e91-1ab4-4152-bed6-632608aa5800","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":44,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"687937d9-fba8-420d-841a-aa76f23e502f","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":44,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"8f7ef49e-2886-4a97-bc4e-6e93c8391ed6","block_type":"box","text":"Certain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a portion of their assets in a","page_number":44,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"6d4b2512-9b17-4d65-ab5c-adbb3022aa00","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each, a “Master","page_number":44,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"b10bb784-c70e-42f2-9145-a6693c7624d0","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":44,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"608fed33-8870-4069-bc10-ba615a9d26c8","block_type":"box","text":"made at the level of the Master Portfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":44,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"945799af-007b-4931-b734-65cd606b944b","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Portfolio in","page_number":44,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"00edc833-4b20-4ea2-bb39-34d687b54c8d","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Portfolio.","page_number":44,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"4e6cf4a7-e344-4746-889c-50b5f22cd110","block_type":"box","text":"In addition to containing information about the Funds, Part II of this SAI contains general information about all","page_number":44,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"99e9016e-ad30-4c92-be65-a6a4aca28d10","block_type":"box","text":"funds in the BlackRock-advised fund complex. Certain information contained herein may not be relevant to a","page_number":44,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"744cc586-acc0-4a2b-84da-97428c36a6ed","block_type":"box","text":"particular Fund.","page_number":44,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"dc325b9f-f185-4407-943d-9a41fd916edd","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":44,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"2d8ba2ca-5657-4a2d-bc13-96d5caefcff8","block_type":"box","text":"Set forth below are descriptions of some of the types of investments and investment strategies that one or more","page_number":44,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"de606b8b-c25e-4bab-ac43-2013285915cd","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":44,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"4f9e3aa2-fda3-4f37-8ab6-2a57ffa8f4c3","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":44,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"a07357d1-957d-4a08-9a43-a40760926563","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Part","page_number":44,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"44709436-ae2e-4fbc-a20e-45fcaae6f6a8","block_type":"box","text":"I of this SAI for further information on each Fund’s investment policies and risks. Information contained in this","page_number":44,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"4c01d465-2171-43cc-aa73-5cb7b93c1abe","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":44,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"b683a142-1e2c-4655-86d0-856877c5ecff","block_type":"box","text":"applies only to those Funds specifically identified in Part I of this SAI as making each type of investment or using","page_number":44,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"6a8d6754-4508-4683-87c9-0efbf77d326b","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":44,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"e74ed8c9-58f1-44af-9d13-1902fbf13203","block_type":"box","text":"a part of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":44,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"cb77fffd-a52a-4a7b-8fa6-846684d19758","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a part of that Covered Fund’s SAI.","page_number":44,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"e3f8ba98-f50a-4afd-b401-58aeef5fd916","block_type":"box","text":"Asset-Backed Securities.","page_number":44,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"ca798d66-64bc-4add-a970-480543365926","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":44,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"6817b5ad-0ea6-437b-9ae2-812ce2a6d991","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":44,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"db1ad84a-c129-4dac-8a6a-5ad3db825555","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":44,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"31e3f90e-144a-4679-9a26-166f29b165a6","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":44,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"61e735bc-a26b-4dba-bc5a-b430eac8dbc8","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":44,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"7b68134d-50a0-44a7-ad54-e7cc911473d5","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":44,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"24ef8054-8a03-472e-8e9f-5918fba251f2","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":44,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"0a4207f0-be54-4231-89a3-aa511e79f956","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":44,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"b07abe91-88c5-4924-bb2d-0c0627e29565","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":44,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"f40cfa65-3011-42fc-ac8e-78399b137655","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":44,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"e7d1c585-c505-4c12-ab7c-b7cedcc33778","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":44,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"3e0e6bd0-3434-4daa-874c-eac0fdf394ca","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":44,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"74660968-c705-4685-b058-6104fe57a306","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":44,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"f96aa6d5-2d25-407b-8d8b-a7787f001028","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":44,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"b12ace38-bfe3-4744-bb60-221f134b42c2","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":44,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"c84e1c0f-e926-4a66-bf67-20f816fc4b5d","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":44,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"22d93cba-128f-4150-b1b6-97bbf52f4973","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This particular risk may effectively","page_number":44,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"187637ae-85a5-4e6b-ba5b-f6c149e50681","block_type":"box","text":"change a security that was considered short- or intermediate-term at the time of purchase into a longer term security.","page_number":44,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"bf764ab1-6a13-47d0-a4d1-cc80a87dcb56","block_type":"box","text":"II-1","page_number":44,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"2e39d338-b35d-4c20-8d64-b8ac5ee82ebd","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a6c6e4cf-c642-4962-8858-aaf7f8853f14","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":45,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"fe8620be-d0e1-4cff-9beb-651722fce529","block_type":"box","text":"than does the value of shorter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":45,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"de509779-8743-4072-8319-7a56c34263ce","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":45,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"7a7abca4-7e7f-4aa9-8bcb-65b2995a4c3f","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":45,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"03bc3541-02fe-448d-9ab4-81ed64f104a5","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":45,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"66049848-bb15-49f6-b2b2-c1da8b3f850f","block_type":"box","text":"Asset-Based Securities.","page_number":45,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"136e937e-e6f0-4ce4-aa07-beb8ba5deac2","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the principal","page_number":45,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"930be385-29ed-4e43-8163-f3153d44a0bb","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":45,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"f2ddaa4e-7f5c-4fdd-b68c-5803ff430bd4","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":45,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"29afae80-b9c5-4322-be65-85f8d63c0053","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":45,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"18c4a944-95fe-46cc-84dd-1bcb349734f3","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":45,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"6894d46f-7326-4e95-a390-ef7b9fa55bbf","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":45,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"f8790379-a4ef-4bd9-81c5-edf66d982687","block_type":"box","text":"issuers that the Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":45,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"c391f73b-75e0-42a8-b33a-f0231d8117e0","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and may be more","page_number":45,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"550e9c2a-5d09-48d3-82d6-516963d22029","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":45,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"0a293365-155e-4ef3-a59b-015e8aad5343","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":45,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"7ee30b01-0504-4743-8291-092af57377cf","block_type":"box","text":"determining the creditworthiness of the issuer. While the market prices for an asset-based security and the related","page_number":45,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"fa9d27c4-2fab-45a2-acaa-27f07951502d","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be perfect correlation in","page_number":45,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"70785a6a-daee-424d-a67f-30ba3364dcb9","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":45,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"7ebad8d9-08f1-4261-b0a7-a2663e510b0c","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":45,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"e6425f54-18a3-4bce-a30c-a7b5113162e9","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be payable","page_number":45,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"ec91bb31-bdb5-47bd-a1c2-b1636b083081","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":45,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"97d7f334-9d24-405c-ac93-35bc8ca712f5","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":45,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"b7c64154-ef24-4d7a-9a2b-32e8dc92bc70","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":45,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"fa261ca1-e051-4b98-b9fe-9c962bff4c0d","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":45,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"31d6083a-32f3-4fcc-8907-32ef224581c1","block_type":"box","text":"appreciation in the underlying asset.","page_number":45,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"70b5cab4-2664-41bf-892d-5ccc00627c34","block_type":"box","text":"Precious Metal-Related Securities.","page_number":45,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"58f93a63-f1d3-4db2-9eb6-6f08656e2c1e","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":45,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"3c63edc5-e0b6-4684-a8b2-d59b072c142a","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":45,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"e98a632a-1b7e-4df0-b757-a3655b871de6","block_type":"box","text":"e.g.","page_number":45,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"835a7a29-3ee7-4162-ab27-827c553aa506","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":45,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"6adfcb30-da14-4bb9-9dc2-72a0dadc5d22","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":45,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"9b17064a-edce-457d-9868-c1cc9b3a461d","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":45,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"ff9821d7-baba-4e37-a841-a43ab0a34ad0","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncertainty or instability.","page_number":45,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"80c2924e-1580-4f06-a1d8-9e264e9ad83b","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":45,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"9a288537-84d2-4749-91fc-ef013599044e","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":45,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"0d1f7b8b-f614-4c1d-beb3-32f897ea7164","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":45,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"399cdab7-3905-4073-992b-53647fdb3fe6","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":45,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"0a59546b-1549-453a-bbbd-721e6df6bdf3","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":45,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"f12d87fd-79c4-49c5-9403-1c9d75697595","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":45,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"ad5fc762-1ed6-4414-afb7-1d6e203d4664","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":45,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"7a3c3c3c-9fb4-4411-8663-b98abb307ada","block_type":"box","text":"South African gold production.","page_number":45,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"3bf71e2a-2bf9-4e6f-96b7-64446c56ad9a","block_type":"box","text":"Borrowing and Leverage.","page_number":45,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"dfaa81c1-984d-45b1-82e9-41f86c0ed222","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":45,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"1701edeb-de59-45aa-a49e-852ebcbf9494","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Certain Funds will not purchase","page_number":45,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"1c9b0f76-9191-42e8-9ec8-db1cf8442971","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":45,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"d6972e3a-cecc-477b-91c0-d260ce006c30","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":45,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"ab115057-0e5f-46ef-afc6-8808d7e3e3d4","block_type":"box","text":"other securities transactions.","page_number":45,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"7c20dedf-a985-4974-931d-5efca9ab4fb0","block_type":"box","text":"Certain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":45,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"8094545e-0e0b-467c-8050-0b5db37bb2a5","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":45,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"663ef598-7931-4d7f-8c52-d8411022e5d9","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":45,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"6734fcd9-0326-4e53-bdca-fc3d8803d38e","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an opportunity for greater total return, but, at the same","page_number":45,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"71547e93-968a-4f5f-bc5d-3344df859fe7","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":45,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"4b767c65-35f0-4168-9d6e-2d49a1fd88fe","block_type":"box","text":"shares and in the yield on the Fund’s portfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":45,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"01c6415c-4bf4-4610-b714-ce2646d59bd4","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":45,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"fdcb1b5c-39fe-4be1-a3d1-929dd39565db","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":45,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"408e5059-e904-437d-a421-01834e746dfc","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":45,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"38433b30-f84f-4d63-b854-a68c711515f7","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":45,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"e7171659-994e-4090-b327-7a43d899fc16","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":45,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"3d928583-32b2-4938-9a4d-0dba7f3ae2da","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":45,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"db6e9db9-577d-421a-8b15-d0ee09ff943c","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":45,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"1b16c363-cfdd-4537-a267-976aa936f525","block_type":"box","text":"II-2","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"7e244230-9c65-4bb9-8553-fdb2d31fc56d","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"55316eeb-ace5-4093-aa20-d225cf1c0b8f","block_type":"box","text":"nevertheless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":46,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"d268d0c8-70c7-47a2-b6f7-bee76a6cdb39","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":46,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"8d215fd3-1c8b-4e06-b9e0-b9b5898df635","block_type":"box","text":"Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":46,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"2931b0d6-1b79-46ce-ba55-6d12d4281d19","block_type":"box","text":"relating to asset coverage, portfolio composition requirements and other matters. It is not anticipated that","page_number":46,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"11051d42-d5de-4b6d-be0a-1f6679da33e1","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s portfolio in accordance with the","page_number":46,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"2a79c62f-84d7-4855-bd7e-0b08b94c7a29","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":46,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"ded4a653-0eff-49ef-87c2-c5c800cbd1c9","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of portfolio","page_number":46,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"7430fa51-c44f-4d3f-b1b0-f6b71d503c98","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":46,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"c1541db1-dcd8-4b9f-a8ea-b4c44f347c0f","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":46,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"1e9d4a20-c503-41a2-9f60-eef536dd5b80","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":46,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"e29653ef-0541-4933-99b5-a3ddc3d2fb9d","block_type":"box","text":"Cash Management.","page_number":46,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"f27304db-3c23-4287-a10f-7e36c26b5e43","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":46,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"916a8a65-276e-49c6-b2cd-dcab9eeb7aa1","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":46,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"cdca036f-b515-4514-b771-3454d1ed9ff0","block_type":"box","text":"in the opinion of the Manager, a portion of a Fund’s assets may be invested in certain types of instruments with","page_number":46,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"bb00a904-2ff1-4d1a-97e7-c8ab34c614de","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":46,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"519f9b53-3080-4ca3-ab99-7f7268493e71","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":46,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"6d6f467a-c25e-421a-9cf0-a2ced06f6c10","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":46,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"ff65eae2-2ada-4f52-a872-b1ae5639f6a7","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":46,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"a1b142b8-3a92-4aba-860f-9d237dca53bd","block_type":"box","text":"certificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":46,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"c52da30f-ddab-4783-8dbb-dc82c18a395e","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":46,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"c72fdca1-e035-428d-90ff-d3112137dd71","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":46,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"11167149-7e1c-4cbf-b9e0-887096804bdb","block_type":"box","text":"obligations or other short-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":46,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"33bafe31-66df-43ba-810b-d389fa577254","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":46,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"c5022f79-33c7-4475-8679-f9d67b84203e","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":46,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"06b0b44c-bda4-4caa-b10e-76f361219c91","block_type":"box","text":"Collateralized Debt Obligations.","page_number":46,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"7314dfb0-4459-48ed-87a0-9231567c0892","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":46,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"5b001db1-eb5e-44b1-b66d-d59641eceac7","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":46,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"beb68401-0cec-4b62-a3a3-5952e2ba7719","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":46,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"b2faccca-2c75-4f86-bd10-20015bb2ab40","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":46,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"8fe8f956-4ad2-47e8-bf87-c8f4393708c4","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":46,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"421636d1-a219-4f64-b55f-aafeb6a51ca9","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":46,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"4aae7995-dd59-4773-a4e4-f9e7d1783531","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":46,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"6ca57d2a-6a0d-40fd-82be-31e31e55b539","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":46,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"bbeb6013-bfd2-45f2-a488-2821fb4b8a03","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":46,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"49bb5a7e-0b32-485c-be4b-7110c959f6e3","block_type":"box","text":"substantial portion of which are U.S. loans. Although certain CDOs may benefit from credit enhancement in the form","page_number":46,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"17a91b25-3f7b-482f-bc40-9396d5e96653","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":46,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"a3cce8dd-9998-4ac9-881d-406fb97c11e5","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Certain CDO issuers may","page_number":46,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"a7a2c837-145d-4aa6-b8e8-b6cc02502412","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":46,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"e9f15226-674a-421e-bafe-b31108d10e19","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":46,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"d3512157-932b-48c6-a8ac-059ec679f880","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":46,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"0276ffa6-de29-4a07-8b94-cf2238a95cd9","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called tranches,","page_number":46,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"fe1f8df7-3ea3-422d-adb0-b03868f2511f","block_type":"box","text":"varying in risk and yield. The riskiest portion is the “equity” tranche, which bears the first loss from defaults from the","page_number":46,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"664560a1-657a-426c-88c6-4c25189d8353","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":46,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"45a82ff4-661d-42a5-af4b-b44e6c0d7b78","block_type":"box","text":"is not complete). Since it is partially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":46,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"a766c880-39c7-4956-ab0a-f893a1e78931","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":46,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"9ad62290-a0ff-4b55-b63a-38d898b8b457","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":46,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"b4aa94c7-4c26-4d00-b1e3-cb830c03c9c9","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":46,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"b0d8b9b3-7805-4dd2-8dda-522356091475","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":46,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"373747f3-f7fc-4181-bd33-0ed5ebaf3897","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on certain tranches","page_number":46,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"4a7dabff-459f-4d39-b108-99ddafcbe48b","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":46,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"55f3df74-0734-4bf8-a15e-0281eff9cc20","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":46,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"ca517c92-c13c-4940-9ceb-ae70f97d0d82","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":46,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"55122cd5-4bfd-477b-b416-4d009e46e2d3","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":46,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"e77efc45-5f24-4ad4-8380-8d50ccaf22ad","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":46,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"8a040d64-aac7-4220-ab61-2a7eb6ff9a85","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":46,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"ef8a9733-9071-471c-902c-daa6822e99fb","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":46,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"486672fd-1da9-44c0-9a11-92c8d4f8dc40","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":46,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"1550c0a5-0da5-4784-9495-89cbab6aa628","block_type":"box","text":"II-3","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"e95a500a-5fe4-4d29-a12d-b6db64c08fa3","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"46c59e0b-aead-4a86-a671-aa36c7f8b868","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":47,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"cc8e56f6-b147-4145-bc6f-07d4ea1ad169","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":47,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"eb200a99-9845-4cf1-93d8-de1e6fe4dd32","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":47,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"dd269ba3-1b96-41ca-82ec-aa8b042bc521","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":47,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"04810f43-8656-461a-b320-5786722def5b","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":47,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"c4101fe2-732f-413c-82b6-94a1a9ad2613","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":47,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"1795abba-0951-44a3-a55a-aca2cf9af3af","block_type":"box","text":"CDO’s manager may perform poorly.","page_number":47,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"9ce66ec0-90f0-4120-be2d-1d8661731f63","block_type":"box","text":"Commercial Paper.","page_number":47,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"811321d0-3cbc-463e-bb11-e44fb4cf4203","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":47,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"b958c281-d277-47ba-86cb-49b07d2f2c75","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":47,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"9b0355ab-e613-4082-b380-2acc6ce1f757","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":47,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"2ccec75d-d921-41b4-b014-8a7c62c79350","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":47,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"5c508f7d-5d2e-4a18-98ab-12d81eb6dd44","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":47,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"28295f20-fbe3-47f5-b1e5-1590efc7c254","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Certain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":47,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"fd4a01ae-3d2d-4fcc-b942-7ac0fb14d8aa","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":47,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"ebbbced5-9b55-4f10-bdbb-741d1d2e6936","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":47,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"f64b0356-2124-48f1-9606-9d34a015d0c0","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":47,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"cb5cc69a-240a-45c3-bc85-668035e40c62","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all fixed income","page_number":47,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"7bff6737-dcaa-4922-b798-e206537e4319","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":47,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"b227815a-ce4e-45d4-80b8-7748a43bd0b5","block_type":"box","text":"paper prices will decline and vice versa. However, the short-term nature of a commercial paper investment generally","page_number":47,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"9ad558e3-e0c9-453e-896c-35581a48ed78","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":47,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"27c90386-d2f4-495f-a18e-4f6df88ec581","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":47,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"4e7a85d2-5b36-43d0-823a-080bdfc2ef48","block_type":"box","text":"debt because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":47,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"03311eb7-840e-4515-813d-a41984eb95da","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":47,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"8819c81e-0579-4e46-8cd9-d7a089ea9600","block_type":"box","text":"Certain Funds seek to gain exposure to the","page_number":47,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"137e541e-3d24-42c0-8fb5-631c9bb8b45c","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":47,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"747f0b8f-fdf4-4c48-8da5-8a419ec6ef40","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":47,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"1619839a-f850-4ab5-95c5-79b64072ba91","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":47,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"d99a2d90-fa0c-4e3f-aea4-d26ee4917971","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":47,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"7139d91d-af80-4ce8-9b97-de4767e51d0c","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":47,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"9961f895-2e91-489b-817c-59b209b25589","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":47,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"38b8daf2-ba52-41c5-8b0d-9de722ecdbc0","block_type":"box","text":"variable.","page_number":47,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"6148289a-bb03-4119-8c67-7cbe733668d8","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":47,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"8aa5514c-ad18-45ec-9875-940f962cc163","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":47,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"80697b5e-51ad-4707-9cfa-26c6394ee7d5","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":47,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"d04e17d6-5f40-4105-9d3b-322ad1b80003","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":47,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"d5570a4b-573c-4ead-9d3c-251d76c9e434","block_type":"box","text":"rising inflation, the prices of certain commodities, such as oil and metals, have historically tended to increase. Of","page_number":47,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"e06884cd-1d35-4c80-8748-58953c2ff23f","block_type":"box","text":"course, there cannot be any guarantee that these investments will perform in that manner in the future, and at","page_number":47,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"e58fb117-6fb2-4736-a720-c689152f427b","block_type":"box","text":"certain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":47,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"1d7633dc-6b8e-43be-9655-3e68c5e992e1","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different parts of the","page_number":47,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"489b7eec-f4e2-4f8c-8e93-6dee3bfe0afe","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in tandem with","page_number":47,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"d28e7d63-c895-4997-92d8-ed2056d27213","block_type":"box","text":"the prices of financial assets and thus may not provide overall portfolio diversification benefits. Under favorable","page_number":47,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"f45d2495-72da-4632-a81c-180f9a63fac1","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-perform an investment in traditional","page_number":47,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"b2cfb3ce-18e9-46a2-b67c-4a221c0d4be8","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":47,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"1a480f37-ec45-4b45-bf78-22790a947719","block_type":"box","text":"correlation with stocks and bonds.","page_number":47,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"1d60fd9e-9e92-4eb4-a532-8a838aaaf440","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":47,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"fdd32701-bed1-4847-800d-3bf6398d885f","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":47,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"37d2b125-6e53-4bb5-9dfb-a91baffa0672","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":47,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"fed742e2-e0c5-4c44-8937-6b76a715eaa5","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":47,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"a5d14d4f-6623-437f-a109-ef0c1e983832","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":47,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"db92248d-38e5-4481-8a10-c2ce3e2d9e92","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":47,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"a98633b7-0c71-41d6-9d43-d652c7335eb7","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":47,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"5b183067-adb5-4c3b-ae54-f7981f7c5ed0","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":47,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"17528acd-d4b4-4f31-8d62-8e0ca91ec3ca","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":47,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"2f263e2a-5acd-4616-847e-13906c6cf85a","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":47,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"14d22d9a-f2ff-4eb3-be32-16eafcb250fa","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":47,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"7152daaf-9539-42c7-a59f-adea70fc774b","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, partially protected, or offer no principal protection. A","page_number":47,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"eaf21685-981f-47f9-bff7-d84af7eae386","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":47,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"312cd1e8-5da2-4441-bee8-6b059527a7fa","block_type":"box","text":"II-4","page_number":47,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"0505d22a-b83c-41ab-bfde-d5df6d7043df","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9f3e4f4b-ced2-4181-ba9a-8cfe8afdd0a7","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":48,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"9e22f29a-8b38-4d07-861d-4fbd5fd65a39","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":48,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"c458e20e-a7ca-40cb-902a-8e10e029abc6","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":48,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"67dfb9a5-ec09-4131-bdca-76fb3ec127e0","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":48,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"7f470d9f-bea7-49a5-a8b4-412f0bdccfb2","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in part on the","page_number":48,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"5e223d04-2b4f-436e-bfe4-237a1f8dcc75","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":48,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"966a72ba-a3b3-4dd0-a645-c901fb292e3a","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditworthiness of the issuer. With full principal protection,","page_number":48,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"a2b7f366-1fb4-456d-b0dd-02c2689f6242","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":48,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"ec22b196-b959-4a12-9558-700a10a348a7","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":48,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"31292812-029b-42bf-bc83-382870393e64","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Partially protected hybrid","page_number":48,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"c60495c5-e518-44b3-8e0c-a40844c7ba41","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":48,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"7b3bca81-db1d-4d91-8b7b-3c39ba9d9166","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":48,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"37de8d69-8894-4bec-9d8f-fe26f960156b","block_type":"box","text":"partially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":48,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"f649358e-474f-4dea-8279-74b314ade1bd","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":48,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"e4941857-67d1-4431-9d96-d26c85d42280","block_type":"box","text":"Certain Funds may invest in hybrid instruments that offer no","page_number":48,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"ad1a5877-cae7-478a-a5bd-a722899421c8","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":48,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"66927579-2935-4dae-8bd2-34336898dfd5","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":48,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"29638b2b-9686-4b9a-b22a-65bfbf9b53dd","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a partially protected principal","page_number":48,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"2408cb2f-858d-48ce-ba2c-4dfd59a40fed","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":48,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"e444d832-f005-4395-bd0d-2ed649210cb5","block_type":"box","text":"Manager may consider, among other things, the expected performance of the underlying commodity futures contract,","page_number":48,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"27753699-abef-4b37-a159-81363de48dc6","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":48,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"8792d8be-8532-4b20-9cee-faba0e61fde2","block_type":"box","text":"the Manager believes are relevant.","page_number":48,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"0dfa0d70-6dc1-4d54-bbba-4d4bec9c8bfd","block_type":"box","text":"Limitations on Leverage.","page_number":48,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"02a63fa8-c72f-4c30-9537-a7ae0eaf95b2","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":48,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"e3beb29c-874d-4663-b2e4-123105dac7e9","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":48,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"66080903-d283-41ba-abe5-267d6bb8d2f8","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall portfolio. A Fund will not invest in a hybrid","page_number":48,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"27dceb7a-ff52-4b4f-96cf-714d762b8661","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":48,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"a410a444-4737-46e9-bca3-8a1d8714bb1e","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “portfolio leverage","page_number":48,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"adf1f163-a892-4ca5-8bd0-d3847e24c198","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":48,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"1ba7e910-07d7-401d-afda-25d62cd18006","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":48,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"00266425-9a7d-4913-8c1d-432156d79973","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":48,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"7e83d1cd-6ebe-4dd8-a4c1-37b38e218d04","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":48,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"6349f9c2-29d0-48c4-ad83-97cc590dc4ca","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":48,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"3792f837-e7cb-4afa-a6b7-0a4978e87570","block_type":"box","text":"variable lost 1% of its value. “Portfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":48,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"b31d2eed-9139-498e-9ba8-c3ce2334633e","block_type":"box","text":"instruments in a Fund’s portfolio, weighted by the market values of such instruments or, in the case of futures","page_number":48,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"85f66107-f699-48c6-a18c-fb7caaf01838","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":48,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"3a399700-b1ad-4406-a441-8ce0f5e30381","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":48,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"3a109d01-36de-455c-befc-ed00358c5da8","block_type":"box","text":"Counterpar ty Risk.","page_number":48,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"5c138fbb-55bb-4c86-917f-678d81b46888","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded futures","page_number":48,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"dba4cfd6-f463-486d-b591-5ae7bb80648f","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":48,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"7355b271-f865-4ada-9eea-88ef4c67bfb1","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterparty is the exchange clearinghouse. Exchange","page_number":48,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"23792c56-afaa-4a68-aa9e-937d064aab3d","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":48,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"d0dbb3f7-c4bf-4fc1-8399-f60c31ef4443","block_type":"box","text":"e.g.","page_number":48,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"28ef9a82-9987-4a82-a5a1-e42ed4a95ffb","block_type":"box","text":",","page_number":48,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"f7004a45-bdf9-419d-8b3d-50685d4ae531","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":48,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"809a8a9d-8574-4849-a2a1-6aff00263240","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterparty credit risk of the","page_number":48,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"aeec8baf-fd48-4e5a-bea8-cf38f0550d4a","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to perform its","page_number":48,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"fabba95a-bdea-471b-83a1-1487bd5c2ba3","block_type":"box","text":"obligations under the structured note.","page_number":48,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"0296a1b9-ae59-4e0f-bc42-66de8e55d2b4","block_type":"box","text":"Convertible Securities.","page_number":48,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"cb70a6aa-acc1-47b7-af58-3f0972376093","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other security that","page_number":48,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"94e32078-2ae0-4c35-9eff-cbe909a20e40","block_type":"box","text":"may be converted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":48,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"04716218-7a07-46f6-a0cb-719b6e8a084f","block_type":"box","text":"a different issuer within a particular period of time at a specified price or formula. A convertible security entitles the","page_number":48,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"8ed1ebfa-dd96-447f-9121-e8576f3943f5","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the convertible","page_number":48,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"e2ede4e9-d5b3-4717-97b5-72c6f8f8c75b","block_type":"box","text":"security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have","page_number":48,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"70f40cb2-b0a7-4064-ae87-0f7d022b5451","block_type":"box","text":"characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income","page_number":48,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"e318f7b2-1a16-4105-b569-ceb64392531d","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":48,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"efde68b6-b302-45d5-bce6-e0966c3ccbc4","block_type":"box","text":"comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":48,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"cb3b8a14-fc08-4f5a-9643-9329a79cc09a","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":48,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"831f4e47-f7bf-4af4-b929-77d7584f7649","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the convertible security’s investment value.","page_number":48,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"ab4a5599-a009-48e1-ae62-d47fd7a61164","block_type":"box","text":"Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":48,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"8753acd4-c047-4a38-92bd-c400975613e6","block_type":"box","text":"to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the","page_number":48,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"a8d068e3-7b0f-4d53-bc44-7f40a27588cb","block_type":"box","text":"issuer at a price established in the convertible security’s governing instrument.","page_number":48,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"0b0f5a95-dcf2-411f-bb0a-393ddd32471e","block_type":"box","text":"II-5","page_number":48,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"4b488fb2-6683-4d4f-8a66-c2512f9088b5","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c3f905d6-52b3-437a-ac4f-00c5a410737f","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an investment","page_number":49,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"195d9a96-d621-417a-a270-031d5c4e1d59","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":49,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"ef425153-59a1-44d5-a1c8-eb7f4243dd54","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":49,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"592f5f43-1bd8-42d4-9625-fd3b8aa815ef","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":49,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"1187294e-6eae-4e51-8aa0-fb0f60ec65d4","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":49,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"d017bc95-4cae-4283-8059-80c6e96f5e21","block_type":"box","text":"feature, however, the interest rate or dividend preference on a convertible security is generally less than would be the","page_number":49,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"f73fd917-ed2d-4bcd-a159-9f93c63994cd","block_type":"box","text":"case if the securities were issued in nonconvertible form.","page_number":49,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"3375fe89-2650-44aa-a1a3-7545d62e0f2e","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security relative to","page_number":49,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"3dd8b230-1ae0-4768-b922-4b07e24e9e19","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":49,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"8f1ab666-7c8d-4310-a847-18adca87a935","block_type":"box","text":"things.","page_number":49,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"ed2bb157-16d7-40f1-8296-f10a2ee409ac","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":49,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"15fa023b-873c-4dfb-949c-ce6567aabe52","block_type":"box","text":"substantial portion of the convertible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":49,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"70466b62-2ec6-4e66-98e5-6d92d8e08b80","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":49,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"0d32664e-cbad-4703-9ef7-02dbd5c8a25e","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":49,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"a78054c7-d1be-4d26-866f-e183783b8f2d","block_type":"box","text":"price is quoted will affect the value of the convertible security. With respect to convertible securities denominated in","page_number":49,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"a67d2069-9c07-4067-bec9-4d4d5c990390","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":49,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"7904349a-58e1-4260-b687-686e01c6f53b","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":49,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"680ddd31-ba6a-4b03-99df-a4e07a55a099","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":49,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"6ddb20c5-5f6c-48ed-a7e2-9deac36cdc23","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":49,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"49f7732e-288d-4a33-a7c6-6b724f9eaaff","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield on","page_number":49,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"7b2ec615-913e-4475-a9e5-f0c23bcf7da1","block_type":"box","text":"nonconvertible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":49,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"cccf1ba4-c35b-44a7-873f-408b0443b913","block_type":"box","text":"convertible security viewed without regard to its conversion feature (","page_number":49,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"8c6ded60-a088-4413-992e-3db695ddc075","block_type":"box","text":"i.e.","page_number":49,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"604e1a21-abb2-4310-94f0-d12b1702e195","block_type":"box","text":", strictly on the basis of its yield) is","page_number":49,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"6d4f025e-42a0-402c-bc66-6370201be93c","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":49,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"b0375fbf-0fba-4480-9503-750243babb49","block_type":"box","text":"convertible security typically will fluctuate. At the same time, however, the value of the convertible security will be","page_number":49,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"938a596b-b7a3-4fff-92a5-bdef4ec537e4","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":49,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"fe6c585d-bd7c-4b8d-bc97-c2bbc6f62d00","block_type":"box","text":"obtained if the convertible security were converted. Conversion value fluctuates directly with the price of the","page_number":49,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"7f9934c0-8a85-4f34-abb1-b4b27223f5d5","block_type":"box","text":"underlying common stock. If the conversion value of a convertible security is substantially below its investment value,","page_number":49,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"783bcf09-e433-483b-abe4-08238b63090f","block_type":"box","text":"the price of the convertible security is governed principally by its investment value. To the extent the conversion value","page_number":49,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"e9826961-7e94-4283-85ba-cecddbcbbb38","block_type":"box","text":"of a convertible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":49,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"3bfc0a8e-30cc-4bbf-bb7a-c8ccc52cf2c2","block_type":"box","text":"convertible security will be influenced principally by its conversion value. A convertible security will sell at a premium","page_number":49,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"80f430f6-9b4a-4e70-9733-0a5bfbd18481","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":49,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"d25d4363-d86f-4bf1-8dd0-76d66d9c9018","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of convertible securities issued in Japan and","page_number":49,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"5a920495-b32e-4d46-bf35-cb63233cea2c","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":49,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"724ccad1-d80c-4404-aab6-fe6cddee47e1","block_type":"box","text":"than the securities’ investment value.","page_number":49,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"891992cc-4140-482b-b082-0d5e1789475c","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":49,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"0906ae75-7dd2-4ef1-8071-e97465ce3761","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible security may be","page_number":49,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"8bb5b2de-2b8d-43d6-b997-3be02ecfcb8a","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a charter provision, indenture or other","page_number":49,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"92216d21-f426-4e3d-9bff-d6f034f508fb","block_type":"box","text":"governing instrument pursuant to which the convertible security was issued. If a convertible security held by a Fund is","page_number":49,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"2d4ed108-a01e-4f45-aaec-69242b31650e","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, convert it into the underlying common stock","page_number":49,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"687152e6-53ad-40c0-8c00-49260a890d39","block_type":"box","text":"or sell it to a third party. Certain convertible debt securities may provide a put option to the holder, which entitles the","page_number":49,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"8d811ce8-e197-4725-8138-6e2d9decb341","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":49,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"7c564192-8214-4809-891d-4cd13e5f64c8","block_type":"box","text":"security under certain circumstances.","page_number":49,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"ea5444cd-c8ca-4fd7-9aca-bff1d1cb9285","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include either","page_number":49,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"f4158c7c-20c3-4ca8-9602-d537db876136","block_type":"box","text":"Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are instruments that are","page_number":49,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"877d6198-6fd9-44c8-9f04-c56c421a6067","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional convertible securities but may not actually","page_number":49,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"b742f27d-5879-4fb3-8e9c-e5a00f9b8da4","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":49,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"26140694-1e2e-439d-a03a-61d328b60128","block_type":"box","text":"issue a Cash-Settled Convertible that is convertible into common stock only if the company successfully completes a","page_number":49,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"9382157b-7c63-490a-b41d-64e3c4394fae","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":49,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"e3249834-c10e-4b16-97d8-64b766da482d","block_type":"box","text":"appreciation. “Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":49,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"918d98ec-ae6a-42d8-bdab-5539e2d1917c","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":49,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"e1b073a3-3cb0-4bdb-846d-5cf3df1789ab","block_type":"box","text":"i.e.","page_number":49,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"16ff68d6-87bc-4b63-8721-b218177714c1","block_type":"box","text":", fixed-income (“fixed","page_number":49,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"ee663b46-f901-47e9-a3af-813c0fa0807e","block_type":"box","text":"income component”) or a right to acquire equity securities (“convertibility component”). The fixed-income component","page_number":49,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"f0ee312e-4ecd-4e56-ad8c-bb3a936211dd","block_type":"box","text":"is achieved by investing in nonconvertible fixed-income securities, such as nonconvertible bonds, preferred stocks","page_number":49,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"01250684-9263-47f1-bf4c-4c444c713fcb","block_type":"box","text":"and money market instruments. The convertibility component is achieved by investing in call options, warrants, or","page_number":49,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"d12ffdea-e18c-4bf6-bf2e-b62257714d69","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":49,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"c6732cfe-2c50-493f-a6ec-411358102883","block_type":"box","text":"II-6","page_number":49,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"aca8c474-3677-44dd-8061-af6ca1d9012f","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1323693d-3292-4ddb-9447-1c9acb8384d9","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":50,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"8a0dee82-5095-45be-9095-454c205b48cf","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":50,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"8815fe2d-8fcf-41f1-9201-85ed1630c12f","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a traditional","page_number":50,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"46dfe84f-6232-43bf-8359-2cbfa68ef9a3","block_type":"box","text":"convertible security, which is a single security that has a unitary market value, a Manufactured Convertible is","page_number":50,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"d12c68db-66ce-4f2c-8102-69add022935a","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":50,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"ae1cc938-04e7-4c00-b421-12323074851e","block_type":"box","text":"such a Manufactured Convertible is the sum of the values of its fixed-income component and its convertibility","page_number":50,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"32d99848-2224-4dc8-a635-df79e2497efe","block_type":"box","text":"component.","page_number":50,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"74ffe8f0-8937-4296-956f-5eac7fca327b","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a traditional","page_number":50,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"ec55cb60-a2b8-47dc-a2f9-f05850c99dcc","block_type":"box","text":"convertible security. Because many corporations have not issued convertible securities, the Manager may combine a","page_number":50,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"9659bdf1-99de-4f0b-bb8b-ff01efa2465b","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":50,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"84b32723-cbf0-4941-862c-6d07a098b05c","block_type":"box","text":"to create a synthetic convertible security otherwise unavailable in the market. The Manager may also combine a","page_number":50,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"29980aae-a2bc-4c0f-9431-0785b7950e77","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":50,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"20fec5a8-2fb0-481d-8475-40c09a52e481","block_type":"box","text":"Manager believes such a Manufactured Convertible would better promote a Fund’s objective than alternative","page_number":50,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"28487839-0eee-4a17-95b2-e2a01718a0ad","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":50,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"2207769a-5a5f-491f-a953-f6d71b774689","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":50,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"934a18e2-61de-42a3-a5f6-89e6597f26fe","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional convertible","page_number":50,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"d33d524c-f55f-489d-ac20-8ad25d655bb7","block_type":"box","text":"security issued by that issuer. A Manufactured Convertible also is a more flexible investment in that its two","page_number":50,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"c18f09a8-0718-4d2c-9619-8749463fc255","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":50,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"2ae7c724-7ed4-46d4-8a81-374b7cbf7d2a","block_type":"box","text":"Manufactured Convertible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":50,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"683bf537-9643-4d0d-96b2-fb1ae2b58ab0","block_type":"box","text":"Convertible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":50,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"fec8ce69-202b-4804-86df-2e0d938e67d6","block_type":"box","text":"favorable market conditions.","page_number":50,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"7483a72b-4730-43d0-8d7f-73c1964e1927","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a traditional","page_number":50,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"7cfc64c1-1d38-4542-8784-2acf7035e5b2","block_type":"box","text":"convertible security with similar characteristics. For example, in the event a Fund created a Manufactured Convertible","page_number":50,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"44a442cc-456f-440d-8d24-039369a10c25","block_type":"box","text":"by combining a short-term U.S. Treasury instrument and a call option on a stock, the Manufactured Convertible would","page_number":50,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"42402972-8d21-479e-8147-0ca6e3ef93b1","block_type":"box","text":"be expected to outperform a traditional convertible of similar maturity that is convertible into that stock during","page_number":50,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"65228ca1-7d74-4bfe-b501-eff64f88ad67","block_type":"box","text":"periods when Treasury instruments outperform corporate fixed-income securities and underperform during periods","page_number":50,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"05be4539-f4f9-4af8-8181-05c2127ea6b6","block_type":"box","text":"when corporate fixed-income securities outperform Treasury instruments.","page_number":50,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"82fa487b-b15e-4b8f-93dc-899f1a5aaf4f","block_type":"box","text":"Corporate Loans.","page_number":50,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"322b77cd-0f99-43cf-8cb7-d8cab8e2e866","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":50,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"d94d2431-d433-4b87-a7d8-2b66b3b86ecb","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Certain Funds may invest in","page_number":50,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"b20f2ea3-ee45-433a-b84e-5d9c02aa0c98","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":50,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"09d2378d-2a5f-4059-99d0-a78abd29e513","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":50,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"4b73ad76-10da-4530-8127-7da92e2f4814","block_type":"box","text":"in such Loans in the form of participations in Loans (“Participations”) and assignments of all or a portion of Loans","page_number":50,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"ebbf428b-764e-4295-b82e-b5c78eed354f","block_type":"box","text":"from third parties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":50,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"910ef67e-9b24-440a-b65a-0623759bda1c","block_type":"box","text":"purposes of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":50,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"1e2568dc-f327-45d8-89a0-432f599b650c","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":50,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"86fd19be-5bf3-4e26-a36c-81a934e80c67","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Participation and only upon receipt by the Lender of","page_number":50,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"3febfbd6-2be1-4342-b729-66d495f24a2c","block_type":"box","text":"the payments from the borrower. In connection with purchasing Participations, the Fund generally will have no right to","page_number":50,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"c991bccf-8674-43b9-8ae3-2622ca0a209d","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":50,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"20e1c4a8-0129-4dfe-af29-f8568b7595c6","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral supporting the Loan in which it has","page_number":50,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"0ba693a3-03a9-4059-be94-dac46e6b033e","block_type":"box","text":"purchased the Participation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":50,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"38bde2db-f1bb-45ac-9826-6899054446f0","block_type":"box","text":"that is selling the Participation. In the event of the insolvency of the Lender selling the Participation, the Fund may be","page_number":50,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"26271be9-8155-4387-a3eb-b3901107a1e9","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":50,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"7a696f74-986c-441d-8fa6-8e9d6a975cdd","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and the borrower is","page_number":50,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"7a1b21da-ec5e-446e-9ea0-b9dc84a1ee23","block_type":"box","text":"determined by the Fund’s manager to be creditworthy. When the Fund purchases Assignments from Lenders, the","page_number":50,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"9754fc42-7f6a-4fa0-bedd-744042b7f69f","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterparty’s credit","page_number":50,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"b580f636-7855-4f3d-8135-8d3622f3b8bc","block_type":"box","text":"risk. The Funds may enter into Participations and Assignments on a forward commitment or “when-issued” basis,","page_number":50,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"dcbb888a-a52a-4e4a-9d6e-2fce70c1704c","block_type":"box","text":"whereby a Fund would agree to purchase a Participation or Assignment at set terms in the future. For more","page_number":50,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"7d45f217-22cc-4acd-9443-a3baca6a1cf6","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":50,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"2ebe2a89-0797-43cb-9876-d0611cc46351","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":50,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"a39b8683-97e5-42c8-8f09-5954efa0fb58","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market for such","page_number":50,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"378bbe69-2d39-4b00-94f0-f1dea0c1f6ab","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":50,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"8a566a8f-d385-4549-b44b-7cac84603a2f","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":50,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"8f48f86b-b10f-4173-85ec-0e252711f083","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of particular","page_number":50,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"8b60eeb3-3a4b-47a5-8e61-09fe7b08983a","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the creditworthiness","page_number":50,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"51310be0-a543-44a2-b501-a3639078a951","block_type":"box","text":"of the borrower.","page_number":50,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"bbdda2e2-b3af-419c-bcde-497c83dc4fa9","block_type":"box","text":"II-7","page_number":50,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"6daabbf7-81ae-421f-a544-e005169c72d5","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c7cb5312-1097-419d-b209-e123a707d9bb","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":51,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"68ef07dd-ad7d-4aaf-ae15-56c987dca2f6","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":51,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"0c662db2-7d1c-43b6-aec0-1858b73df615","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":51,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"9b9657e7-f19d-4137-920f-8f2ffec04a18","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":51,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"ae4cdf16-fa31-4558-87a6-705d5dd9c40c","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":51,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"c10416c6-0c58-4d57-ab03-dcbebdfff396","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":51,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"fcc4061b-13e8-4273-a42e-0f6bd5b85d8e","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":51,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"8bbcb405-718c-41e7-8697-1fb47ab2d032","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":51,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"62a815c9-26d6-4313-a65a-fa2ad60be0d2","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":51,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"d05ea795-1e01-4b58-9e75-7af4e2b2e63e","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":51,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"92a4533c-2329-4fd4-99d3-b709a1b5fa7d","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":51,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"e022b55d-29ab-42fd-9eb5-b003859023fd","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":51,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"577a28b8-af14-42c8-b1fe-2b882c4776f4","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to short-term liquidity needs, a Fund may hold","page_number":51,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"33d549bc-293e-4445-ac4f-51a71e490993","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":51,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"36ae183b-57e8-4583-8452-e36f8d8f69ea","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities laws.","page_number":51,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"6589473b-65f0-4840-9f28-a8a3dcd32db9","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":51,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"c1886b8b-eed6-49b5-8418-5cbd9b4b3081","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":51,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"e141794b-3d44-4dc6-9ab0-35392318134d","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, parties generally would","page_number":51,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"41070294-ab23-42dc-bd7f-412324493a0a","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":51,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"03606e4c-665d-47a4-b383-2008ae104830","block_type":"box","text":"state law.","page_number":51,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"9cde0ac9-c78d-491c-a1b8-a931895baebc","block_type":"box","text":"Direct Lending.","page_number":51,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"cbdb78d7-19ee-4e64-a77d-1ffcb1bb189c","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":51,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"47b6035c-bf67-41a1-b2cd-138d93d36a0d","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":51,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"8d51643b-2ea6-41d5-8a76-f18b1b5c54c5","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":51,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"f0751195-6051-43ee-a314-171401dcc5b1","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":51,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"b6123ecd-d9dc-4084-b3a1-b2e9a5ba49fc","block_type":"box","text":"Furthermore, a direct loan may be secured or unsecured.","page_number":51,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"79f446d7-5157-4b89-a665-f94f02d3fc55","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the","page_number":51,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"74c15fe5-74b5-44c2-abe6-4b74e2e5f4ec","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":51,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"42ce463c-8de8-4aff-ab56-b9010e659d6a","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":51,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"19def618-ad0b-4f7e-93f4-88fabd01b884","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":51,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"0d817a59-50bc-44f7-a26e-3d3af56dee64","block_type":"box","text":"money on the loan. Furthermore, direct loans may subject the Fund to liquidity and interest rate risk and certain","page_number":51,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"2bdabe2a-bb40-40fc-9cff-36853d8298ac","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":51,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"5f905e95-bb08-418e-88f0-f61a72972417","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":51,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"be30fb60-4536-4d66-bbf7-348c1366c998","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":51,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"6f718e87-a26a-484b-819a-0a9a9458de71","block_type":"box","text":"When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the Fund to","page_number":51,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"597ec99b-c52f-4279-94ac-9571148c718c","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":51,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"bc2ea0bf-786f-4daf-b2a9-03e5957b550e","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":51,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"48dd0f5c-1a68-4a3f-94aa-877e3705f529","block_type":"box","text":"such loans, which could reduce Fund performance.","page_number":51,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"911e370f-541b-4197-812c-6c842da17915","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":51,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"060ee29c-7453-49a9-96fb-e6aabab594ed","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":51,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"38e7fd09-3acc-467b-a46d-ca93a7f9f106","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":51,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"adfd3590-31ff-4c2e-ade1-3a5bd99d9aa7","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":51,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"b713d2ec-cc59-4cae-91c6-5ac96c86b432","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":51,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"99e1ff3a-0458-4b20-9ece-b52d2b4b2744","block_type":"box","text":"Credit Linked Securities.","page_number":51,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"9aa0f203-63c1-4137-a53c-9ed9939ba11e","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":51,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"b1c5df96-db1b-427f-9597-835220567d64","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":51,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"a0c979cf-3999-48fc-8dfb-e26f70fe3bdd","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":51,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"54e03a12-32af-4751-a71c-a96397300416","block_type":"box","text":"to provide exposure to certain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":51,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"bc118089-8c57-4520-9e19-d31b06f31e78","block_type":"box","text":"cash management tool in order to gain exposure to a certain market and/or to remain fully invested when more","page_number":51,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"b87366cb-d614-4b8a-b187-371aacc6cf68","block_type":"box","text":"traditional income producing securities are not available.","page_number":51,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"aefc7ea1-f109-49b4-9b51-d2b0ef496315","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":51,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"5e3caab7-64c8-4729-8f1d-3f1830d41a6f","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":51,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"29410fe9-d70c-4faa-a657-5c5796765767","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":51,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"3836e6c9-845f-42c7-b51a-efbdb8098da8","block_type":"box","text":"obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For","page_number":51,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"d1fd1874-e116-46a9-b07a-eaafe79b4914","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":51,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"2fe097c9-eb2b-4452-88e7-e812ec9e7bfb","block_type":"box","text":"II-8","page_number":51,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"b21004f6-782b-4b64-850b-b70ac4809eb0","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"59fdfbb3-0849-459c-acbf-b6d072435687","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":52,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"050fff58-35b9-4a57-b9e7-ebedc98775ff","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":52,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"5d07b15e-6cf7-409b-9ef5-04cb1ce25d15","block_type":"box","text":"the issuer would be obligated to pay the counterparty the par (or other agreed upon value) of the referenced debt","page_number":52,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"3afc0324-6644-445f-a1a3-fa02557a8b53","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":52,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"a6e04696-22b5-4367-a434-b3fe2f9c1038","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":52,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"65ed126f-6b49-45fd-9342-b98306bd17a8","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and","page_number":52,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"6d914888-215c-417e-bb82-c027209e9cf6","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":52,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"31573290-197a-4482-b876-9a4da484ec44","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":52,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"6c85a07e-5d56-4386-a75d-8a56dd5bd410","block_type":"box","text":"investments.","page_number":52,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"a718a4bc-8051-47b6-8e75-a9229760d305","block_type":"box","text":"Debt Securities.","page_number":52,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"594e846d-822a-4b3f-9ad8-f0188be5692b","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":52,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"c4931bb2-9521-405f-90c8-68b9f182a32c","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":52,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"8ec1906c-b42f-4e3d-b175-a95f2f1de34a","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":52,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"349c4011-8e57-4625-bbc4-2c26a51d2426","block_type":"box","text":"creditworthiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":52,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"0a61b2eb-8c2f-4072-a785-842b177f4ab7","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":52,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"4cb55899-0d4f-4859-8718-4099d76f059a","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":52,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"31c98b4a-1ee2-4b0d-a180-930bb03ca25b","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":52,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"3729288c-2a2f-4d79-9c62-631e932e62cd","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":52,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"ae5f24ab-b652-4922-8a85-f144922e4fe7","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":52,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"c52d3c61-9b3c-4666-9d7c-a981c0af6779","block_type":"box","text":"rates than will the market price of shorter-term debt securities.","page_number":52,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"50f4b4e2-c60c-4ca0-906c-f0543a8066e4","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended because of","page_number":52,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"7f5da7de-61a3-412c-9c54-30f0656809bf","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":52,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"42bb5182-76bd-4ed3-85ed-768bf8893cae","block_type":"box","text":"these fixed-income securities, especially mortgage-related securities, making them more sensitive to changes in","page_number":52,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"5fcc5ace-3729-4c84-a614-37565fd19119","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":52,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"2586e5fe-d796-4ec3-9371-797004713cc7","block_type":"box","text":"lose value. This is known as extension risk.","page_number":52,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"9a6a021c-c013-43d5-aea5-ddfe555f6f1b","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":52,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"75c28c0b-a0ad-47bc-bcc1-f50fba56354e","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":52,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"b396481a-c52d-4974-aa3e-4611f88faaac","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shorter maturities. The Funds are not","page_number":52,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"d5647a6a-09f4-4936-a74f-eeefec400e32","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual portfolio securities, and the average","page_number":52,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"82b6a92a-afd8-407f-8247-48c236ec2c72","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":52,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"3c1df2ec-45a2-4b44-abd0-95c855aa9830","block_type":"box","text":"Floating and Variable Rate Securities","page_number":52,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"c27aaf65-3361-41d1-a1d0-d800fd624688","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable coupon","page_number":52,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"7840c01a-628e-4f59-8ec7-2baee1b013e8","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":52,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"1c03269b-28da-4a82-abea-3afbe9511ed5","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":52,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"6ae3ac95-a682-4904-9bb5-b0e83389693e","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":52,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"99ccc9f4-7264-484e-971a-ca8eb1e6b2d1","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":52,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"dcc186fe-b32b-4d98-a92e-35c524caad20","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":52,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"ea88a300-af6c-49af-a9ba-b1862bcbda05","block_type":"box","text":"market interest rates.","page_number":52,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"e3f91e6a-487f-4d8c-bb34-0fd8ef0d9ae4","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":52,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"575d6091-14cd-4e07-8dd1-ea7129a2e133","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":52,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"5192a72b-7f2e-46ff-96bd-a9070c6d182b","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":52,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"869ba62e-0ba5-4887-9682-5f2e28f82ad6","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":52,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"ae4ae688-f12c-4f30-a482-e109fd2a3baf","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as part of a semi-annual coupon.","page_number":52,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"6f871dee-7085-4747-a5e7-52b087fda264","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years, although it is","page_number":52,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"feb02a24-192c-4b9b-a99a-666a1182ba38","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":52,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"0a1ac7d5-2fc8-4be7-acc2-d9c2a8469060","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":52,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"5761badf-d4ed-4ed9-a3e9-535d72109030","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":52,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"b03f416b-f6dc-4611-b9de-c1efc25b2fd8","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":52,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"2386e070-e6d1-42a7-9d2e-398522f5facd","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":52,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"68a1ba0b-f676-4071-acc0-80773a32d0bb","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":52,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"11fdb751-8478-4fa8-87fa-a259b4025e53","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":52,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"06334774-7322-4638-a746-5ed4b84fba65","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":52,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"1cceec88-68c1-4edc-a8a5-3e540991ad4b","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":52,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"0df000ed-13e7-4a3f-8b1b-22eba9d4c2cd","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":52,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"ae4e5061-ae05-42ca-8dda-09fce67aa2ea","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":52,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"f5a62748-e62b-4a16-951b-c5d471689a05","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Certain Funds may also invest in other","page_number":52,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"3655b414-592c-401b-af51-027d476f3b71","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":52,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"cd97022d-3a3d-40e0-bc63-6d0dc7aa7fd5","block_type":"box","text":"II-9","page_number":52,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"84588792-5cc9-42d1-80ac-2781cefeee68","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2a051ac6-b87e-4994-a0d7-c08411ba83da","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":53,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"3ed46707-a23a-43a4-8088-9d6fccb5e53e","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":53,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"5f56f618-9a89-42f7-a470-d8dd3600b75a","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":53,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"5963139b-9a75-4df0-a1f4-4440d67c137b","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":53,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"3b075799-2ce8-4267-bd21-0f1210f3718b","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":53,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"dcae000a-20f3-49fa-b278-3f56a9d01e4f","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":53,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"55934269-8458-4d59-b606-d8e33ca466da","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":53,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"95affe5b-d97a-47f6-a737-7b654b92c5c1","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":53,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"c1552d86-1d0a-4515-8a11-c15e0ee463df","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":53,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"f8111acc-e786-4c19-af46-e59c04ee012f","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term increases in","page_number":53,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"d673dcff-b245-4649-ac4a-74366a6e66a8","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":53,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"07f08010-c695-4200-a8dd-22e887a99b0d","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":53,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"a505ac02-b3ab-4ef9-8f53-1d2fd1e569b2","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":53,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"a57925cd-13c8-4fc4-8135-b9f9b8d5fbcd","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":53,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"83224ec6-4c2a-4ea4-b149-3c19e8c01390","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":53,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"0d01480a-3b3f-4bc2-b7e2-d30bf0291955","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":53,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"ad83057d-a65d-4b21-99a4-f9fa7959db63","block_type":"box","text":"food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":53,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"d4b7b78c-812b-4968-bba7-7b6db12c36c0","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":53,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"f3baa825-54af-4a88-9309-80d04e79edf1","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":53,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"1b4df094-045e-46d9-8033-2a6757666ba5","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":53,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"3b384f16-3581-4f6d-a7e4-123877c0a7c0","block_type":"box","text":"United States.","page_number":53,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"4e71c5ff-ebe3-462f-a3b3-068d55544eaf","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":53,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"f27b9dec-0316-4328-acf8-ff4313cea806","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":53,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"15323660-5967-4cde-a2c8-707a0079a743","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":53,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"f775fe13-61f2-4b8b-83e8-a2f8d5f18c21","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which are","page_number":53,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"4c867dac-2cd1-4fb9-a22a-da52aa1d6fbf","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":53,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"1e0da4a8-091a-499c-8d43-723804c4055b","block_type":"box","text":"Manager. Certain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":53,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"2c8fd03b-9a3d-478a-b422-6634e6e7cb43","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":53,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"8eb02369-dee3-4d9a-8ef8-19388cbf2467","block_type":"box","text":"i.e.","page_number":53,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"749b851e-8d31-482f-9055-5bde4fe4a55b","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":53,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"c2745f69-d980-4be1-aff3-9f6df6f8345a","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":53,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"94d18f6b-8193-46e5-924a-91ee35d2d464","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":53,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"c3c12385-04ce-4f73-9b4f-2915b5a655a3","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":53,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"3b0f9b36-fc5f-45fc-a2ce-561839dc427f","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":53,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"831c5d9a-033a-4e19-a25a-552dcef94258","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":53,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"5f9e66a9-a6aa-46c4-bba7-73b616fb248f","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":53,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"71ae273a-05af-4cb0-b231-966b7de55852","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to investors as","page_number":53,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"5d3f3221-b023-4c77-8584-a62473d3aa98","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":53,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"7acacaa4-b490-4bf5-922e-f7b056a425af","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and opportunity","page_number":53,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"be26e264-9c69-479e-8eb2-b7b72f2b3ab5","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":53,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"61e4e52b-88da-4886-82f8-0d7c5230effd","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":53,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"6e18c531-56ba-4890-987b-d028d1ff6705","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":53,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"4ee8ed31-6aff-432c-8623-640bf956351a","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":53,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"4385dc41-466d-49cd-928a-ae4d264e0be6","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":53,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"802f9df4-b430-43a9-bc8c-46534411d367","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":53,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"f47f3e19-9c10-4eb9-b14d-fed3aa31fa6b","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":53,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"d694f76b-a86d-45ea-af5d-bf442ea327f4","block_type":"box","text":"risk than higher rated securities.","page_number":53,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"389fd0d1-8429-4acd-89e5-316ca04e9b4d","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":53,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"d996120e-6f6c-445d-84be-5858bae23b2e","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"340499d0-0d41-4680-b0b1-f6742b69a5d2","block_type":"box","text":"Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to adverse changes","page_number":53,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"0535912a-ebc2-47f5-915e-5e07a53bf85f","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":53,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"ff250dbd-6db9-4da3-817c-92c831e5f914","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":53,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"99399332-d4f4-400f-9a6c-52e99a07f636","block_type":"box","text":"unavailability of additional financing.","page_number":53,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"4257ea38-2b70-4bb2-84c0-bbcbb5c43831","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"5fa4aeda-abb3-4eee-87d4-6e7bbbff55ef","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":53,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"9eb46d65-6708-4987-bdba-54e88552c633","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":53,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"6a358bd2-8911-4ef5-9166-50ad6eec4141","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":53,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"b20c259d-5f65-4103-86b9-c6344a6a0860","block_type":"box","text":"II-10","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e5693ed6-698a-4073-bf5e-136b3c3316ee","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"85d21788-59d0-470b-b2a9-8fc25c88bd5d","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":54,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"26df8059-c16a-4fa8-8bc1-1b3db48c75d4","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":54,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"d2b1f638-cf4a-444b-b283-69a92835ad09","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"86014c81-8452-42e7-b59a-6b4b3580ba5f","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":54,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"eae11cf3-cecd-4326-85f5-524b51c9cfc5","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":54,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"7bb8bbf0-51d8-45a6-9656-b506b39d8164","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":54,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"b1e51dbf-da63-4efa-b7e4-5cf6eb4480d4","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":54,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"30b038ea-87cf-4fc7-a1e3-85cb05ef4129","block_type":"box","text":"investors in higher rated securities.","page_number":54,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"5c036742-050e-4d92-8300-32a6422bce26","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"86dc0d8b-14b0-4f57-89f7-16ed55522f49","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":54,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"35179f99-48d4-4c05-b955-fd9adc310f0a","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":54,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"c14e3fbe-ef4f-41e7-a072-889490b9f3e0","block_type":"box","text":"lower yields and may lose income.","page_number":54,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"9b3c7b12-8854-4ae8-8c5b-82ff92c2d395","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"e4abb98b-df71-4915-ab9b-1964557c1fea","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":54,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"04ff9898-abb4-441c-9326-9a44a8faac5d","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":54,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"08623f39-5f77-48eb-90b6-c7a31d1b5fa8","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"7e8154de-f533-49a3-a998-ec2d7898d197","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":54,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"acc1265a-11a2-4a22-bdf6-72bfad3316d1","block_type":"box","text":"Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":54,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"c48f13f4-ba5a-436f-b36a-912c612a7013","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":54,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"0b8801d1-44ae-4ecc-a39c-09e5223cc681","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":54,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"71c29f37-9d30-4179-b737-15c9b960359a","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":54,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"5d35d064-dfdf-4022-8cd7-0a05647061da","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing certain of a Fund’s portfolio securities","page_number":54,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"e90b9778-5e74-4bd0-b2a5-24c0684c8d58","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":54,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"930f0f5a-3284-45b9-8df7-deacb4d3b169","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"bce511c0-d5ab-49d8-b40a-1046be4310d2","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":54,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"d27bb650-e081-420f-8dee-042331963882","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":54,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"b04faa26-f6fd-4875-84b4-ea1c2f795538","block_type":"box","text":"participants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":54,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"a0f85201-49d6-4a72-b105-5876bed6410c","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":54,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"ca07bcfe-777b-4941-8a4e-4888ee373ec9","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":54,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"60ee0f74-cc09-49ac-a434-eeca46a4fd46","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a particular issuer. Under","page_number":54,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"6aaa7aee-47aa-40dd-a25d-3d118514be38","block_type":"box","text":"certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities","page_number":54,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"475730ad-34e5-4826-878d-4bb9e075ab2b","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":54,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"1f051dcd-da74-4d3a-a66b-0c9e38b9581f","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the particular","page_number":54,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"99ba0b6a-42a8-4ff8-aa5f-f0e34e252e5f","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":54,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"eb4e8e79-d35c-425c-9a65-f32c992291cc","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":54,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"7d75c967-d559-4044-82d3-f970801e5cbb","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":54,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"31959b89-87a6-42e4-b1bf-9619dd186aee","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":54,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"819ccc21-2384-41e8-a4af-8f06af1f2f63","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more important","page_number":54,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"30b7408d-bc25-4a0a-8ba0-92ffffe2a7cc","block_type":"box","text":"role in determining such valuations.","page_number":54,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"947671d8-8b2d-4991-a4de-96d46c05a547","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"693452ca-7cc9-4f48-b455-0fbd4b8b4657","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":54,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"bd75be4a-c1aa-4ad2-bd23-f8d5f0ee8770","block_type":"box","text":"a defaulting issuer.","page_number":54,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"e859abd9-b858-4d09-984b-325f51d42cd7","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"f27bc815-8160-482b-80c9-bb8187c72fdf","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":54,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"f14aab72-5d17-45a6-b650-648e88c5d19a","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":54,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"a1e305b5-aee9-45c0-ac12-572f918a40fe","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":54,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"36038665-619a-445e-9e7f-b0ca9376c2a5","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":54,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"fce69730-f120-4d9d-80b1-172e3a668f2d","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":54,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"25b8bce1-4b4e-441c-968c-ee66cb7e9d69","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":54,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"97201308-9812-4d64-816e-7f2c1da9303c","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by certain","page_number":54,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"5c0ce26b-499a-47bb-9d5f-516f8197389e","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":54,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"5b142a2f-aac7-4aac-8534-d02258e27b25","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"b733dd12-360b-4e50-88ca-26ad8b021302","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":54,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"1618315a-e4fc-477f-ade8-4e3ec3e6c826","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":54,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"7500ea66-e3fe-48d2-9f7b-3873f3448576","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":54,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"3b976e8b-12f8-4f6a-8378-2fa828cd1884","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser performs its own analysis of the","page_number":54,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"36ed1d94-6591-4576-bdbe-54c91bf7b02c","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s performance may","page_number":54,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"c2b54b74-0cb6-4d39-9400-90e4809157ff","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":54,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"817e8987-efb3-4b4a-bb03-1966a0915067","block_type":"box","text":"higher-rated securities.","page_number":54,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"44ac6ba0-dc86-40af-9667-07a3f6733136","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":54,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"4034317a-42ce-4815-8765-a1cd2d4bfe73","block_type":"box","text":"relating to the creditworthiness of issuers, the ratings and performance of the securities, the protections afforded","page_number":54,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"6a429517-67dd-4f0a-91ee-2dc4d9f05810","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":54,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"2e3b26d6-24bc-4e68-a268-5f5f6c3bc822","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":54,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"5dab7c0d-d26e-4121-a073-d1fd8c5e4009","block_type":"box","text":"II-11","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3d9d8f1f-4fb0-40f2-ae1f-d7ee0156fca1","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f09d57e8-4960-4be8-a30f-b1f7ed34f8df","block_type":"box","text":"well as in an effort to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":55,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"8b8f6124-f86c-44a1-abaa-b48903b58dc2","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":55,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"da9193c2-2e7f-41cf-959d-0542f4b203e0","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":55,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"901ef7bf-db73-4695-b17a-6e954414cf00","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":55,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"055407ae-7090-4618-a248-815c18e1bea2","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":55,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"43d99b9f-3f61-43e3-a936-6292d64b53e8","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":55,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"f42921b7-383c-4149-b0c8-7696ebd22974","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":55,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"7b8ebe13-6615-441a-9e5a-c6eaf509a66e","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":55,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"54763289-5e65-4574-bb61-5bbe46761f71","block_type":"box","text":"Mezzanine Investments.","page_number":55,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"09653286-a6c8-435d-b1c5-b573a7ab472a","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a specific","page_number":55,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"2f937771-5082-494a-8e22-7000e1591ed7","block_type":"box","text":"credit quality, may invest in certain high yield securities known as mezzanine investments, which are subordinated","page_number":55,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"de295b38-64c1-49cb-8aa7-bac12cc2d29a","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":55,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"aa579309-7c70-4fd7-882c-beb7d65e28bf","block_type":"box","text":"e.g.","page_number":55,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"ffe050de-2566-4c16-afd5-aaf41ad483a6","block_type":"box","text":", with","page_number":55,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"473050c7-7074-4e22-98fd-c1d2b178db03","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":55,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"2629351f-e724-446d-8a4a-c453121891f9","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":55,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"71c4698a-f571-4130-acad-b4e439ce8907","block_type":"box","text":"life is significantly shorter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":55,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"1b3159e5-aa5c-4f4c-bcc8-8ec709117974","block_type":"box","text":"other obligations of the issuer.","page_number":55,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"912a97d6-512f-4a08-b868-2f2c8e34402b","block_type":"box","text":"Pay-in-kind Bonds.","page_number":55,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"b908d14f-616d-4a8e-a21c-b82868c1543d","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":55,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"00719cad-166d-494a-a455-fb43080fdb6e","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":55,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"14ce920a-de63-4cd1-acd2-e4acc801ee68","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":55,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"b3b95017-de7c-4453-b182-ce20f3e25e69","block_type":"box","text":"unless a portion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":55,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"7a3c65e7-b801-436d-92a6-419543d66582","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":55,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"3bfe7799-847d-46dc-8605-198652017b9e","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":55,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"2c2a275d-21e7-4ee4-94ce-04ed955e5ffa","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":55,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"1249fd09-1df6-4376-9a28-dbc6fe772105","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":55,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"c4823c72-f269-4e82-8968-c4ce0e89e4a0","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":55,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"e76bcc8f-d8a2-43cc-943d-96364d1e385e","block_type":"box","text":"securities and may have to dispose of portfolio securities under disadvantageous circumstances in order to generate","page_number":55,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"0a55feb5-33d5-486e-920d-1ef6cb45c7f9","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":55,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"07621f62-7596-411f-9ce7-85ab246dfef6","block_type":"box","text":"Supranational Entities.","page_number":55,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"e56c0d27-6341-4b92-b353-9f8f9e2ec152","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":55,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"e3218c8d-420d-4d50-8a83-1d9bdc955fd4","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":55,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"f1335c2b-44d8-4a43-898e-5ac789a397d8","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":55,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"446afc9d-66f3-4097-aee6-8b88eb74bc74","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":55,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"22453ed5-f776-4e44-8d66-111ab051f054","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":55,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"66d8402e-af32-4fd0-a623-66b9fa541755","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":55,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"8b26fec8-67a3-4316-a6b8-551f8fedf302","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":55,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"c338e1ea-fc1e-4012-b0a9-181eed1ec0c6","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":55,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"4696aeb9-4e30-452d-99d1-0c35c8ae693e","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":55,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"777be992-b2cc-450b-a69d-61a610e25aa8","block_type":"box","text":"Certain Funds may invest in the securities of foreign issuers in","page_number":55,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"4841357a-4361-4f8b-830a-d2969a7e592f","block_type":"box","text":"the form of Depositary Receipts or other securities convertible into securities of foreign issuers. Depositary Receipts","page_number":55,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"2af6a4a8-7fd3-4dc2-9593-c2ee946cf82b","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":55,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"d957521b-6d19-466b-b1a9-d42cca63b4ff","block_type":"box","text":"converted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":55,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"d313b440-600c-4849-8b41-e98d8d3f000c","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":55,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"1ab47aaf-ccfe-475e-a386-338a7e19847f","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":55,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"5f981b81-3e66-4b41-8a12-c561d8305b04","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":55,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"acad1c75-eb67-412e-b0d7-c0d3164aa753","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":55,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"f730da84-b112-4765-b443-c81e119dcfca","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":55,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"0f0239a8-7f70-499b-acd8-81589a46ed1e","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":55,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"76a71e95-b489-4e42-a13f-73d4be195cfb","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":55,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"65950b59-333f-4539-932e-73c3b9bd644e","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank","page_number":55,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"c220ea67-1bea-4df1-a420-d57b1651a015","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":55,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"e73df80c-aa89-4d9b-acfd-2829a2c400c9","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":55,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"cfe3dba9-1571-4e0c-9c17-8c731240a178","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":55,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"17d24b12-ee3e-4078-bd28-bf6138ec8c3f","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":55,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"ba7c78b0-0fb0-4e29-84da-c74aedef053b","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":55,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"39ed3e5a-d6ae-4fac-909e-352714e4dbaa","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":55,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"c936ad7f-feb2-4b87-882a-f6f068e3e77e","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":55,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"cf16d355-ba34-45b7-8802-c69ae463fd4b","block_type":"box","text":"into which they may be converted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":55,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"1132dc55-020b-419b-bb80-25c80b4fcd73","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":55,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"62cb08b3-1d7b-4005-9f64-a47cd2ef5fa0","block_type":"box","text":"II-12","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5605f77a-0e95-446a-8ded-78bdef998ac0","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4478e449-1315-4b6b-a4a5-a60924412895","block_type":"box","text":"Derivatives.","page_number":56,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"a3426908-1cb2-4975-9043-73ab1d1ce5ee","block_type":"box","text":"General.","page_number":56,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"41e771aa-8fc5-46bc-883f-0a7ea26962b8","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":56,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"4661e9c5-1bef-4f71-b111-20cdba83c416","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":56,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"2bb75859-70e0-42a8-acae-beeee2c6d7f2","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":56,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"ee8a1988-9763-4c5a-99b9-01f7bd38d788","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":56,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"4c5ca5a0-5b6e-4444-8dd5-de6330d9fda6","block_type":"box","text":"efficiently than with other transactions. Certain Funds may use derivatives to maintain a portion of their long and","page_number":56,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"1550754d-c227-47ab-959c-3185be180791","block_type":"box","text":"short positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":56,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"b39d8d80-5061-4ca3-aab4-4bfbb28f55c2","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":56,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"aa51032f-b60a-432e-a221-31d30db660a6","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":56,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"d04b58ef-1c5b-46a7-a9e4-7d1eb62c6842","block_type":"box","text":"i.e.","page_number":56,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"1910f3a9-fcdc-4b59-b054-2b50d81b701b","block_type":"box","text":", the payment","page_number":56,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"68d2eb81-396c-420c-bdde-b2265c07c30f","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":56,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"4be63e08-81bb-457c-8819-292177f9126a","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":56,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"1208b955-d24c-4028-82cf-f69734489525","block_type":"box","text":"Hedging.","page_number":56,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"c7b1748b-0cee-459d-a287-f8551490d7e3","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":56,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"06393a2b-73d6-40a4-8f55-232353514058","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":56,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"36b09362-2d44-44d1-8b4d-9ecfd4880ee3","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":56,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"94a81be4-919e-4cf3-aa8c-e4f53d68ef4e","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":56,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"72ea3d6e-8dac-4079-b0d6-0084e69cdaca","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":56,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"ddc628ee-b887-4cb0-84b8-3acc1db1ae80","block_type":"box","text":"correlation risk,","page_number":56,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"6519d310-2a89-4bba-a0e9-24013830deeb","block_type":"box","text":"i.e.","page_number":56,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"c1933b4a-130a-414d-a4a1-a5ac48a7e3d9","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":56,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"780909df-697b-4b0b-9926-187254584808","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":56,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"ce671a88-6c39-44ea-99fb-d7b5501dd636","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":56,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"1086844f-2e88-4a97-b704-5e7bdefae66f","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":56,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"6b312f87-fea9-462d-9667-a716665727cf","block_type":"box","text":"Speculation.","page_number":56,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"f4cc55d6-3549-4d76-888c-1d1652032448","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":56,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"51dff936-d35c-4828-81cf-117ebb047737","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":56,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"b857c393-033c-4280-bea3-0841a94eeebd","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":56,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"24782649-c33a-4a9b-ac2e-ebd62d1189a4","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":56,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"dfd94b21-8067-429c-a6fe-45057c2991e6","block_type":"box","text":"in certain cases may be unlimited.","page_number":56,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"ad185030-de22-4a18-a358-10dbf829e38a","block_type":"box","text":"Regulation of Derivatives.","page_number":56,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"04ae8fca-349b-4c07-8c23-ac8aee8d6b3d","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":56,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"76cee00e-6079-4dc1-99c9-bf0a3caa109b","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":56,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"fd664a02-5d13-4a45-a54f-96c2e636afc2","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions","page_number":56,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"0b1bf01e-4e15-4937-bafc-9b8aa8671064","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":56,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"2c3cb235-c157-44c9-abf4-dc0599e1949a","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":56,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"7a45bccd-9024-4f74-b58f-7c002dceba3f","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":56,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"9025025e-c192-434a-8d62-8b810c39593e","block_type":"box","text":"coverage”).","page_number":56,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"b96a3536-140a-4708-b353-b2ac1e677ac2","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":56,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"9991be71-b095-4dd1-af02-f9485416f665","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":56,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"129c95ec-25f2-400f-adab-385361a86ec7","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":56,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"a4497aca-4afe-408d-9d05-06cc4e7c15bd","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":56,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"e2ca57fa-6003-4970-ad98-7f57adad27ef","block_type":"box","text":"settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar","page_number":56,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"32f88a38-1aad-4ae6-aea2-c1dcc7a1b4bf","block_type":"box","text":"financing transactions (","page_number":56,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"b2b941f1-923b-4a1d-bb18-1f6acd44cd76","block_type":"box","text":"e.g.","page_number":56,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"8e651f57-be29-4e14-b05e-6a1d3bf7515d","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":56,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"1302ac3a-f5ec-4d04-91b7-cb53bee9b336","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":56,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"fcf864e4-d680-4046-84da-155e3b930636","block_type":"box","text":"securities (","page_number":56,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"432cfadf-c220-4172-b859-d9f0025bccef","block_type":"box","text":"e.g.","page_number":56,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"5129301b-1b9d-4384-9ed2-b1f972bf0b0e","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":56,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"7308f2a9-ee8f-4588-9801-ee6b65bcaac2","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":56,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"2ccdc493-65c9-4143-b610-9ea3d277adfc","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":56,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"f8ed4ea1-4367-477f-9a9b-cd1fcf26b5ff","block_type":"box","text":"Commitments”).","page_number":56,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"a5c146c4-d19c-43f0-8c47-24b36a648c38","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":56,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"fb0d0961-f0c2-4d4b-aea2-d1edd1f434a0","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":56,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"3e0ddaba-0e7f-450a-b485-375c03b94b48","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":56,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"0802c380-1489-4c26-87f7-0f76767cae0d","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":56,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"d597cde5-294e-4792-8b2a-537b72716c93","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":56,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"120612ec-a0ea-4ee9-aa9f-38806cc75f7a","block_type":"box","text":"and periodically reviews the DRMP and reports to the Fund’s Board.","page_number":56,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"7ccbe247-a958-4d48-8fd4-6aef52900ee1","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and certain other requirements if a Fund’s","page_number":56,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"c7c41830-3de7-4d2a-a720-43fb1dc42c85","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":56,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"94735445-a107-4126-86f1-df8de7cfeac8","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":56,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"8cc5bcf6-3d5d-401e-8ba5-10061aa06c8d","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":56,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"eadc708a-588a-4327-9a1e-a7a6d6413a84","block_type":"box","text":"II-13","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f2a52286-86df-49e6-b49c-a5a0358f543e","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"186549eb-d436-4c25-8e71-f090530151b3","block_type":"box","text":"Dodd-Frank Regulations.","page_number":57,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"01e4ecb6-dce1-41d1-8c90-045312416800","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":57,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"70b39e51-ffa2-4759-ac1a-1151dfe8d8be","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":57,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"5866da0d-98aa-46ab-bbad-350e276242a3","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":57,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"907aeba9-43a3-455d-8923-50709d89e2b4","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, certain regulations have only recently become effective and","page_number":57,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"90c2a711-4b68-40b2-83a6-ee27afab4db6","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncertain.","page_number":57,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"821d60b3-6474-4747-b762-8ac0174e3fd2","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":57,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"0864afe1-bd41-41e5-b5e6-0da9ca49388a","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":57,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"67637d47-12cd-4ab4-8a45-4c778bc59306","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, reporting, transparency, position limits,","page_number":57,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"178b6508-3d98-4ed7-930b-7696982ad6de","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":57,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"06604a48-3299-44c7-a3c3-079965f665d2","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":57,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"f7fdeb03-fb44-4799-bcf0-a7595d01c8a3","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed in","page_number":57,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"3c70d994-5f5e-4995-b270-a9bd9de28e22","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":57,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"1f776e45-5862-429f-9f7d-5b2a54c2eb3b","block_type":"box","text":"similar requirements on certain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":57,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"2b3a0a48-b800-4d17-8af9-316d3e1d46c9","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":57,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"0c03585b-cba0-4fb1-a40b-2fb22df43efa","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":57,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"99b6bda9-ce87-4f4b-a340-f49415c41f5b","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":57,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"ac86d19e-59a4-4811-b488-5dec8f54a821","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":57,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"50dc1aca-6e03-43f3-9732-a8c94b4a33d6","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":57,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"debe0ceb-b72c-490d-9451-ce39623967a2","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":57,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"ecbffa1b-a580-4d5f-ba9c-1a30451cd220","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering certain investment strategies impossible or","page_number":57,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"23d622a3-2626-4158-9ad0-86018cdd8219","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":57,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"d1c850e0-e680-4841-b4a1-890367a14299","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":57,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"e8f1534c-14f8-499d-a613-f4b93857222a","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":57,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"1167c163-bc1c-4e7a-91c3-03f649ed8d38","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":57,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"04acab8e-f370-4447-abe0-f0be6371d673","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":57,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"ab28b9b2-25ad-4ad4-96b8-bd831f835823","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":57,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"9116e201-fa01-4f25-b619-c5faf5b7d282","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":57,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"92029f62-cc4a-498e-b550-3c6f7ff68288","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":57,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"0296381d-8932-4ae4-97e3-d0d9b3aa2d82","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":57,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"7893d099-2bff-40f4-9dae-6fe3cd847964","block_type":"box","text":"member.","page_number":57,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"290eeb00-96b0-4053-b525-14f6e6b1f62e","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":57,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"0207695d-6a67-4536-970d-4fc680c94b1b","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":57,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"8528ac86-9b5e-413d-a7cb-d4221c7ce53d","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":57,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"91565548-9f1a-4073-b233-356745acd0b3","block_type":"box","text":"margin in excess of clearinghouse requirements, and certain clearinghouses may share a portion of their earnings on","page_number":57,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"529d8bfd-ab27-45cb-8b6a-967cd21d3d03","block_type":"box","text":"initial margin with their clearing members, some portion of the initial margin that is passed through to the","page_number":57,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"b64760e1-c6fc-42ef-91c6-97ae3210f381","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":57,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"b6f172af-7c0a-4d9d-a4bd-2fd54a01f15e","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":57,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"018b5721-a81b-4ea3-aa15-e299b0de0845","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":57,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"ae620581-330e-4570-b83c-0025311b75b7","block_type":"box","text":"provide for non-cleared OTC derivatives. Furthermore, customers, including the Funds, are subject to additional fees","page_number":57,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"45e7f00d-37d7-4453-8f5b-e983fe96efec","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":57,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"0b86efa8-d32e-4970-ad0b-08dcf3ab5d34","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":57,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"56f669dd-afc1-44a4-b0a1-3892681b05ae","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":57,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"70494838-f581-4a20-91e8-f732b30f0a50","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":57,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"2fb7f275-c9aa-44b5-b988-122cddbb0745","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":57,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"e89d372f-bd06-45f5-9720-a231532614b9","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than certain","page_number":57,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"1ea3ee89-21c4-4742-999b-5455fff7e093","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":57,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"245cd6f8-8b49-40e9-952a-d84915b10e22","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":57,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"f280e2fb-f61c-431d-99c6-fcd7507afed2","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":57,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"a52eabe0-e0c0-4b8b-ba09-f655aec73d92","block_type":"box","text":"group of persons acting in concert, may hold or control in particular contracts. In addition, U.S. federal position limits","page_number":57,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"fa976791-7980-4a4d-bc5a-b9db0827a9d4","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on certain agricultural, metals and energy","page_number":57,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"359224b7-ba61-4cfd-85ef-4e518bee77a1","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":57,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"5280c8b6-27c3-4946-97df-c4ead85649e7","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":57,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"993a65eb-34ac-4649-ab7d-0ff3ca7f07fc","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":57,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"bbfa9c3d-9f9e-44bd-8f27-a0b70f1babfe","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":57,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"f6ad938a-0144-4ad3-ad0c-7fcb88501ec2","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":57,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"39c40bba-a534-4317-951f-8c3600f910d3","block_type":"box","text":"II-14","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b8fcaefc-965a-4653-b4d7-c00e53f06d0f","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"32de4e1f-ecbd-4014-b8c4-413b42fec54c","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":58,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"14dcde98-d7e1-4e5d-a6f9-6c0783978b85","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":58,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"97595914-b9e0-4da2-b32d-e98371f469c5","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":58,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"3f740ee4-b997-4ba3-8b76-9fffc0c837ef","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":58,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"76b6c08e-4d07-46ce-a39f-d94516333383","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":58,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"ca3e6d6f-b3ac-4615-8caa-28f7ad8a746c","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":58,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"a4854ea3-ac7f-4c5b-9b8e-b7f0cb14ce34","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":58,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"b4111035-c044-4d16-b651-3d4c208831f2","block_type":"box","text":"participating in, or otherwise adversely impact the liquidity of, participating in the commodities markets. For example,","page_number":58,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"8c9d15da-c0bc-40d2-8769-6cadf5944974","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced certain","page_number":58,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"80fad20b-4241-4e7b-9a96-2948d7bd5d6b","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":58,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"691ccba3-ea6b-4e4e-84fb-1183d658495c","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":58,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"f90722dc-838e-45d0-9bb8-eb61e69215fa","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping","page_number":58,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"c82848fa-3a9b-4186-87db-2c91aa44e395","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":58,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"69819004-ab84-4d21-81d3-b798839012ce","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":58,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"cffd74d7-365b-41b8-b173-7adf19c5a3c6","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":58,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"f8a4b58a-ec3b-436d-94e1-6a66e6e8a264","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":58,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"1fbcfe64-2e0a-43a9-96f9-a1c1fb0068dd","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II requires European Union","page_number":58,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"02b87515-9560-40aa-a0d5-2af55c95b04d","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":58,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"d9da0a5a-0f16-42d3-b4cc-c149baac10b2","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":58,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"f72f1792-148c-4d9a-a358-e79d88e7fe85","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":58,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"31eb9840-b7da-4bb2-90f9-a22b222ff41d","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain prudentially","page_number":58,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"5f6e719f-fe96-4c46-a661-000bd57a7288","block_type":"box","text":"regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":58,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"1ba158cc-daa8-445b-9da2-03d78c02b609","block_type":"box","text":"derivatives contracts and certain other financial contracts, terms that delay or restrict the rights of counterparties","page_number":58,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"a22d22c4-8d53-45ee-9e4e-6bbe2e7c9804","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":58,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"e1c36332-b0e7-4b7a-9be4-3648da459121","block_type":"box","text":"transfers of credit support in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":58,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"f81514f2-21a9-4e7c-9842-48d468cb4fb6","block_type":"box","text":"certain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":58,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"d6db71d5-9003-46b5-bb1e-3c11165d5f4e","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterparties located in those jurisdictions. In particular, in the United","page_number":58,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"d9987be8-1945-49b9-96c7-2e7c6b0d822b","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or convert to equity the liabilities","page_number":58,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"63765f29-b453-47bc-8e60-a03f9cae5389","block_type":"box","text":"to a Fund of a counterparty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":58,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"b078a44d-5c4f-41ea-b610-2e14f6fbd1ca","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":58,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"75b85036-35e4-412f-baa4-8930b19172b3","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":58,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"3414987b-c986-48e1-998c-857e3aa2b530","block_type":"box","text":"collateral received under such contracts.","page_number":58,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"046861ab-9971-466d-a541-ebd911f6dfe5","block_type":"box","text":"Risk Factors in Derivatives.","page_number":58,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"9d484071-32e4-4c30-9755-284747ef153a","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":58,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"80d9093d-6580-4e09-88bf-cf5ba538d70f","block_type":"box","text":"Correlation Risk","page_number":58,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"a9b79d24-801c-48d6-8aaa-f6eb7b2dd0cd","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":58,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"78583d8d-2099-49ea-b75f-8c623909ddc3","block_type":"box","text":"the portfolio holdings that are being hedged or of the particular market or security to which the Fund seeks exposure.","page_number":58,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"34c3d3c6-5ed9-4ac1-a219-5681124ba856","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":58,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"2193abc4-9a65-43ed-94c6-b932c02b11b9","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":58,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"1bddd320-485d-4fca-895b-25e3b438d714","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":58,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"d4f7502b-2de2-4481-ab9f-b091876ab5c5","block_type":"box","text":"Counterpar ty Risk","page_number":58,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"08888c21-f27e-4670-92bf-bc694a1fad6c","block_type":"box","text":"— the risk that a derivatives transaction counterparty will be unable or unwilling to make","page_number":58,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"27cef5f2-3163-4683-b81c-7d5302389c0f","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":58,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"8bb29ea3-2654-404c-ac4d-77ba0169365a","block_type":"box","text":"a counterparty. In particular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":58,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"febfcbcc-8380-49fe-a823-6acccb4003c8","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":58,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"5652b080-35e5-46d8-9771-a69be6eb6ce7","block_type":"box","text":"instruments or has deposited collateral with its counterparties the Fund is at risk that its counterparties will become","page_number":58,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"758eeb4f-4457-4495-8f47-b53467490f3e","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":58,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"ce75d2ef-d9cf-48e2-bd67-6db7954c03fa","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or that have","page_number":58,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"5dac78d7-f383-410b-8312-c64cad309ed1","block_type":"box","text":"provided the Fund with a third-party guaranty or other credit support. When a Fund enters into a derivatives","page_number":58,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"8093adb5-5be5-47e5-8b4a-35d75ebc6fc9","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":58,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"bbf30e59-bc38-4000-a975-7bd4e8c4b36a","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market participants","page_number":58,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"4dd25308-b9ce-4773-b13a-bdfa2612d19a","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":58,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"561c4849-a3eb-4bc0-8876-521f10cd9ef3","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":58,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"2be5b30a-f809-4863-a25f-2adab1763b84","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":58,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"2edda957-b486-4ab6-8560-3933061ff787","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":58,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"cbecfd75-a0f2-465b-a1e0-322bec7a1fd5","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":58,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"e73e6c58-6074-4f24-8f76-b4a42931337a","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":58,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"b8ac60d1-c9e0-479b-aafa-df02cb2ed45f","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":58,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"f7e00072-fa0a-4ff5-93be-acdde2cec856","block_type":"box","text":"II-15","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e36d3434-2d13-430a-b1d8-7cfd5ae14b75","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"681cd43e-56de-4d44-b5ea-304437460193","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":59,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"34edfe79-e1d0-42fd-b51d-98c3659339f2","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":59,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"d3615d87-b863-499d-9380-e7099046b618","block_type":"box","text":"by the clearing member.","page_number":59,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"97de5b08-6064-48db-92b3-e4bece3ea8a2","block_type":"box","text":"Credit Risk","page_number":59,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"b78957c5-d3ec-41f8-9c04-1a880916a116","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":59,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"fd77c4e0-35f2-47c5-8750-dc8d649a1e37","block_type":"box","text":"honor its financial obligations.","page_number":59,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"0068b4c8-2b7f-4cac-a721-6330246b732a","block_type":"box","text":"Currency Risk","page_number":59,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"f3cda6ca-0d93-4fd9-aa04-263cb607a34a","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":59,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"bfdb2edd-5813-4f79-9ef0-0975c578ec33","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":59,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"16b53a3d-651f-485a-a9d9-43e150019fc9","block_type":"box","text":"Illiquidity Risk","page_number":59,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"5f8b7496-bcdc-4321-9468-69c836ee9d19","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at the time","page_number":59,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"5ceb0eac-57dc-4d97-a058-d61e606fba88","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":59,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"47280214-422d-42aa-ab1b-32d62b014653","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":59,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"88144e43-e812-45af-901d-67be52666c0a","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":59,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"6dffbf00-f804-45da-a0dd-a07c62947349","block_type":"box","text":"incurring substantial losses (if at all). Certain OTC derivatives, including swaps and OTC options, involve substantial","page_number":59,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"7953aa97-759d-4e7b-b5b9-3e94334f4411","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascertain a market value for such derivatives. A","page_number":59,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"06e7991e-c4a0-451a-9756-e3ee93ba1604","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":59,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"b1d2be3e-b8ec-48a5-ba8d-20f78bae5c86","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":59,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"744fe117-da0d-4bbb-97b3-4311683d555f","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":59,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"17941dab-3860-454f-a78f-4bfd31101a34","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":59,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"fd3b2aaa-0f78-4a76-b593-7fb5ecd4ce84","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":59,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"72fb4d26-176d-4da9-87f7-6ef1028c205d","block_type":"box","text":"the participation of speculators, government regulation and intervention, and technical and operational or system","page_number":59,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"274e6296-ce5f-4737-ab87-9d340d603f36","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":59,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"e32a995c-9eac-41f1-b1fe-6fa4c77690c2","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":59,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"fd0fbb8a-9cdd-40e8-b11d-37748575b42d","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":59,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"51d3b617-c7e1-45ca-a504-dda93f10e3a2","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":59,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"a296d46b-bfa4-40ba-92be-a4981b161a8b","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":59,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"93276497-255c-41fd-91c3-a25819951ffe","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":59,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"5ee09179-90f4-44ff-a964-b12e40554206","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":59,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"9627f6df-aca5-4dfc-9bc6-4cf51e07af78","block_type":"box","text":"insufficient cash, it may have to sell portfolio securities to meet daily variation margin requirements at a time when it","page_number":59,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"e42c819d-6709-47cc-ae01-2f05d0d40d9d","block_type":"box","text":"may be disadvantageous to do so.","page_number":59,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"1fa9dd73-8aae-49ba-8645-b02a21943742","block_type":"box","text":"Index Risk","page_number":59,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"962d70a7-7e25-4f35-8782-0c000ee26c55","block_type":"box","text":"— if the derivative is linked to the performance of an index, it will be subject to the risks associated","page_number":59,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"aaf34f7c-549e-48cc-896e-eb98ead2801a","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":59,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"8dcbaa9a-5376-47ad-a58d-640e2e1bee3b","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":59,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"8106d372-d834-4c71-9ef8-66a329d5689f","block_type":"box","text":"Legal Risk","page_number":59,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"79e77055-d7bc-4932-b1ce-e15088385888","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality","page_number":59,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"9a5f6571-6af8-4e84-8dd7-f0e872a35d92","block_type":"box","text":"or enforceability of a contract.","page_number":59,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"ac505825-53ce-4086-b8b2-4205ae567e8d","block_type":"box","text":"Leverage Risk","page_number":59,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"3d5709ae-6068-48d1-a10e-8ecf281beaa8","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":59,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"3168d620-3e71-4537-a1ef-50db675791b7","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":59,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"3ae9dae0-b53c-45d3-95f5-61a1096fe5e4","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":59,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"2dad78d4-929f-4e9a-9230-3a0b433a375e","block_type":"box","text":"Market Risk","page_number":59,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"2a8754e9-2484-417d-9403-b6b02cbf4a19","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":59,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"54591620-0600-4daa-81c4-5c60acba6467","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":59,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"8e2b6450-b285-455e-b52a-bd50bd83a809","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":59,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"3536531c-46b6-4cd7-b5f2-0bb9829fcfaa","block_type":"box","text":"affected.","page_number":59,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"8e19c8ad-7d67-424d-bf6b-fe1e71e3e01a","block_type":"box","text":"Operational Risk","page_number":59,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"c390ad40-ba95-43ad-9045-666ccaf02c66","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":59,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"471ff40b-8ef1-4c6a-90e4-c9ea4f93adc0","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":59,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"98a7090e-879c-4591-a6a1-e554966f8123","block_type":"box","text":"Valuation Risk","page_number":59,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"368a9a31-03e0-409c-a663-142333882c26","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":59,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"7dfe7e97-42f1-49ea-a53a-ebbdbb53ec28","block_type":"box","text":"possible especially in times of market distress, since many market participants may be reluctant to purchase","page_number":59,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"df6d3afb-1f11-4aba-a0f3-eb6d2dc3cb1d","block_type":"box","text":"complex instruments or quote prices for them.","page_number":59,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"8e14389b-681b-4938-8267-fc3f5e0b4955","block_type":"box","text":"Volatility Risk","page_number":59,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"27409cdf-0b02-4f43-a689-6bddfc290e02","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time period.","page_number":59,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"3037f448-be06-4868-b5fc-81e8e891dfe6","block_type":"box","text":"Types of Derivatives Transactions.","page_number":59,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"6c873b96-32bf-4593-970e-d4a28ea535f7","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":59,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"0a27704a-86da-4ff3-999e-9b3995a931c1","block_type":"box","text":"including the following:","page_number":59,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"3bcaa1c6-dd21-4bcf-80b9-b5535ad19539","block_type":"box","text":"Futures.","page_number":59,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"7eb679a1-db4c-4332-b18b-097573c39855","block_type":"box","text":"II-16","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"98f24b61-bcb6-4182-965c-ad051c5e87c4","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fbadb571-a482-4040-8445-2cf301742728","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":60,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"abd186bc-59b5-4eed-8e5f-28953dfaf082","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":60,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"300fad1b-1f3c-42c1-a2ee-b950cff09c83","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":60,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"347df59f-2ded-47c0-b97a-849333e8047b","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":60,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"42e4fc24-fbf7-49e6-8bcc-a77dfc89a109","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":60,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"55a1b4db-40f9-4a95-808e-64b0a40c8530","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":60,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"b9a72a7c-94f6-47f3-aae7-3e4f3486e55d","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":60,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"0768ebac-9dfe-4907-b328-1047d68629eb","block_type":"box","text":"market value of portfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":60,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"fc547fe6-0f31-40ae-8fa3-070a2b8e58f0","block_type":"box","text":"portfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":60,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"a5318e4d-5a76-4744-aa94-0a3ad5a51bdd","block_type":"box","text":"the futures position and a lower return on the portfolio holdings than would have been realized without the purchase","page_number":60,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"57993939-ceec-48ab-94c8-3fa877f47f97","block_type":"box","text":"of the futures contract.","page_number":60,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"6c55927f-fde3-4be6-913a-32202e2b4a07","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":60,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"e88db215-5af1-4455-a059-38688ea948bf","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":60,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"fb603b04-fb25-40bb-b177-c19827f5f7a4","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":60,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"5156838e-e229-4751-be3a-66d7dedd6221","block_type":"box","text":"relating to the futures position.","page_number":60,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"fb3ac2d7-c631-4c81-b6d7-65f3952a0cc5","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":60,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"8042d07d-8506-47cc-a412-213436136fc9","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":60,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"224a0b67-e706-4df4-bf0a-f872828432ae","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":60,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"bfbd9d71-2ebe-4689-bc4a-ddc73da07b43","block_type":"box","text":"Regulations” above.","page_number":60,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"9529f232-0e58-49b6-8e62-fdc55a702072","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":60,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"fea40756-f135-4738-a424-fcdb8ec495ba","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":60,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"7d9cddf9-a397-42ab-9817-cc04452ee726","block_type":"box","text":"(","page_number":60,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"630bff07-f342-44c7-bafe-c188ef1b65c7","block_type":"box","text":"i.e.","page_number":60,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"3f603b69-78a5-4fae-b49c-8e328c9fca93","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":60,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"4107729e-b7f7-428c-b717-271ea8840ed3","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":60,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"0df8cbd4-681f-4272-b035-b58157f12eb5","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":60,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"21705065-1dd7-49d7-ad2b-af6449c01069","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":60,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"5da4c86c-60e5-4ac8-8592-88759aaa01ed","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":60,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"e5dbe741-667e-408f-91e1-73a378f6a267","block_type":"box","text":"Fund intends to purchase.","page_number":60,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"9a999c9a-212b-4754-b5ed-2b5e82278b5c","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":60,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"960c0948-d5fc-4fbe-99f3-e2f03259809f","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":60,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"1bf04f92-427b-4a04-a5e7-b595f9964c29","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":60,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"c6cf830d-175e-4ca3-a3a6-286a3d97f70c","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":60,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"df670957-0f92-4ae9-8006-153ab038c466","block_type":"box","text":"illiquidity.","page_number":60,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"58f14117-3ad7-4306-9041-d3b742039ce3","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":60,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"82c7d7d1-df97-408c-8fd6-e235bf43ff5a","block_type":"box","text":"illiquidity risk, market risk and counterparty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":60,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"3824009e-073b-4f8f-8d51-fa639856823f","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":60,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"478b8892-cdfb-4f7d-86a1-7faaf2dd3005","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a limit is","page_number":60,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"9d5273e7-b97b-42f8-84de-014d1a10f671","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":60,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"e73fa7ce-6b54-4536-bff9-7be451565981","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":60,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"1c609b6c-0a7a-48f8-b29a-cee8a8c56f55","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":60,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"a9f2ca83-6cd8-4f84-ad0a-3cbbc98d005e","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":60,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"42217482-0ce9-4161-a4f8-9fd53931bf02","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":60,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"f5181548-bd2c-4e13-88a5-8d07e3118501","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":60,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"c13de95b-aebb-4029-846c-07636597261a","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":60,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"821e209c-26e7-4c4f-a515-fced39b34e2c","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":60,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"fdfeff7f-0513-4373-a5fd-a55037cc020c","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":60,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"cfc800ad-2a14-429e-9d18-50446c1507d9","block_type":"box","text":"difficult to find a counterparty willing to transact at a reasonable price and sufficient size.","page_number":60,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"16d69bd2-e7f5-4dea-98a1-eafb2e37d33f","block_type":"box","text":"Swap Agreements.","page_number":60,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"e6bb5d2d-1057-4334-a98e-107581467d3f","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":60,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"253d65d0-7dd8-4373-8653-c370afa83ec4","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":60,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"e35f7f15-ffd3-4e2e-812a-dd6a5d9c7521","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two parties agree to exchange the returns","page_number":60,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"7b809e07-c196-4c69-b985-add0ec4d804f","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":60,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"bccd5e49-1de8-4597-a2e6-a3eb23b74a34","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to","page_number":60,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"2065b773-dae4-49af-b798-fad84db58044","block_type":"box","text":"a “notional amount,”","page_number":60,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"0cba620c-7f81-4a94-888c-0d5b8879906f","block_type":"box","text":"e.g.","page_number":60,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"d5a220b6-e580-4cb1-8f17-43df64ed7bc4","block_type":"box","text":", the return or increase in value of a particular dollar amount invested at a particular","page_number":60,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"5d00947a-322f-4617-96c3-4e170ac53308","block_type":"box","text":"II-17","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e1732f00-7d24-4ab6-ba9e-ed4ffdb19df6","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"090c0053-29fe-46f7-8c42-afa5fa3a7f65","block_type":"box","text":"interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index. The","page_number":61,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"744cf71f-4b25-4962-a8b5-9bba4164c51c","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the parties to a swap","page_number":61,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"871e5b0e-56ce-43e3-8d64-39ff9de3f582","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":61,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"4f00707e-431e-4501-b406-2a8a7db3976c","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":61,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"f82c526f-b105-47a9-a61d-4a1d9de98d59","block_type":"box","text":"by each party to the agreement. Swaps that are not cleared involve substantial counterparty risk. A Fund will typically","page_number":61,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"5cc57762-59c2-4d3d-8625-5aeb46f8448e","block_type":"box","text":"attempt to mitigate this counterparty risk by entering into swap agreements only with creditworthy entities that have","page_number":61,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"6fa2fb04-42b1-43ca-97f2-b0fc87dc5418","block_type":"box","text":"substantial capital or that have provided the Fund with a third-party guaranty or other credit support. A Fund’s ability","page_number":61,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"3d98078d-30df-49c1-b7e7-c71d76c69fa7","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":61,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"37c09bcf-d4f4-4df6-b3bf-3b6256da2cba","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":61,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"c404a2b8-0824-4a77-b5f5-7babe2d76c95","block_type":"box","text":"Certain Funds may enter into credit default swaps and similar","page_number":61,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"d6607389-1b0f-4963-9ff5-8bc68f756943","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":61,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"30f7c014-8a06-4b09-896a-66f60d45b468","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":61,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"5011764b-2c05-4585-ada8-d81c246ba513","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":61,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"23bc6d3d-d9eb-4ab0-9ff3-e0aeb59f54cb","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a portfolio of securities issued by","page_number":61,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"3ce71a4f-6b35-4229-90d8-3c0e2c1e47dc","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":61,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"50c223eb-592a-4ee4-86db-0185572f3869","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":61,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"7eb6b15f-df99-4d22-813f-e6e91b1671dd","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":61,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"de9538cb-b358-4965-a453-c89ad57f8699","block_type":"box","text":"index CDS.","page_number":61,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"cc70fe46-da08-4a39-95f0-93af29d5d369","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":61,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"9891c4a7-24aa-453d-a52e-d0394c091398","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":61,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"bc2d56fc-8bc3-404d-85c2-c9d44927b7d5","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":61,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"91ed93c1-3835-4ae3-8ef2-74ed6c2ca256","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “short squeeze.” In certain instances of","page_number":61,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"90cd2af4-06d3-4ab6-90ce-fa3f7656fc9a","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":61,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"49e93d5c-6a52-436b-b867-8fce80d4f186","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Certain initiatives","page_number":61,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"2ad2282f-34bb-4028-a5a3-080770886743","block_type":"box","text":"adopted by derivatives market participants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":61,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"3d77093d-8820-465a-9f32-93a62e519f07","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":61,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"98edab3a-6528-4004-a744-14403ce4c6c9","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":61,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"a7e00682-e83d-450a-b175-1e0e409f9931","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":61,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"69aa9b06-f75f-4837-88dd-4421d28844ab","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":61,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"8548a866-4267-445e-878c-eedecc0fc19f","block_type":"box","text":"uncertainty as to the occurrence of credit events and the risk of a “short squeeze” by providing that the ISDA Credit","page_number":61,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"a81c1eea-bc42-4709-8d5e-9929a713b629","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":61,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"927e7adf-37ab-4f70-889b-31f43ce8f9f1","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":61,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"07a2b83d-e28a-4646-8123-f4b5c1862274","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in certain limited circumstances refrain from","page_number":61,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"3d2d6716-500f-414d-91b4-741f28e1636d","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":61,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"f5f45686-0e88-42dc-a7f6-e5d3f3fa7d0a","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":61,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"80c281ea-f7d2-4e92-92c6-f79c77dad423","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Furthermore, a Fund may enter","page_number":61,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"58454239-b51f-4969-b5c8-7fa45ecbdeaa","block_type":"box","text":"into certain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":61,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"0182e310-e017-4047-bab1-586458ad6ab2","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":61,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"fa26ceaa-8214-46da-8652-5a3e842b8216","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":61,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"6f19b877-c44f-45b7-a5ce-9322059732c0","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":61,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"d72745a3-f39f-4ddb-9f58-679a35c0850f","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":61,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"1e03bce9-a8b3-4f7c-994f-51c0c24b24ed","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":61,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"1bbebe42-1d8c-44e7-95a1-0b1be8a7a916","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":61,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"8392ef61-5058-44e7-a92a-c87bd5a88aeb","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":61,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"ea6bc827-b04c-4803-837c-45a53df71ce5","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":61,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"e0b1e4da-7614-4aef-b4b4-86d832327e60","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":61,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"75e51c5e-a5ac-4718-8879-91f192959f7c","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":61,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"8ecb7c24-eda1-4fc7-a030-217fd228a85b","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":61,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"88508fe3-53e2-458e-af64-8001d6bc530c","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":61,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"d9ffd268-c240-4ec7-958a-fe3a769fcee3","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":61,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"5246b279-7fa4-49af-a438-29ef0261003f","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":61,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"58061fd4-f2f4-42ec-bd47-77edb1b526c6","block_type":"box","text":"conditions.","page_number":61,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"a524176c-e9a1-41e6-a003-54b026083cce","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for clearing to","page_number":61,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"78d5e6d2-e914-4158-a39b-dd17905ad417","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":61,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"4ff21e65-9341-4ef9-a4bc-b83a498bed39","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":61,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"ce6815ca-d202-4d2c-accd-710393e06fac","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":61,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"a73fc8d9-271e-4a5b-8710-5a3e58c93b0d","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":61,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"736d855a-0a8e-4cff-bea9-285af77bf4db","block_type":"box","text":"II-18","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"947ae16f-dd14-4ace-98f3-47c4ef7bd11c","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1ca76c21-aa12-410a-96af-efdcba8c7780","block_type":"box","text":"counterparty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":62,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"f4973040-e24f-4db1-a1d8-5adc84a635c3","block_type":"box","text":"CDS. The Funds face significant counterparty risk with respect to their counterparties to non-cleared credit default","page_number":62,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"0ead4b5a-500c-497e-8ae4-1728b4b037b1","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":62,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"15a34fc5-41f1-41d8-aed8-f63464fd475e","block_type":"box","text":"instruments with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":62,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"a3615ede-cf22-4e12-a797-3bb94857ecc2","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":62,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"69e20ca6-beda-4da3-aae6-0f49512bd4e8","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":62,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"d0b1e263-a4d0-4577-b7d0-db32ab306432","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":62,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"8425f99d-d1a7-416f-a9bf-b70a00ce8ebc","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":62,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"17fa50bc-6279-4019-a52c-341280a3e246","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":62,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"519a8423-e2f9-4408-bd84-ea1a4bc1a841","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":62,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"3e4bf4cb-dda3-4863-b6c6-9403c950706f","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":62,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"86bc9370-f9ed-4cc9-bf6d-664424ef32fc","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":62,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"9a143202-482d-436e-8878-0844971efd26","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":62,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"f65c6e1f-be73-47ed-9c4b-204dbecc6baa","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":62,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"bd6a8e44-1a2c-4d5f-98ff-1b94c12f1401","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":62,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"ccff193b-6a13-4f65-a43c-1fae95779ea0","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":62,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"99d3adde-1299-4412-9c8b-0571a57b383c","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of interest rate","page_number":62,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"77ae3eb1-2de1-436b-b7b3-5d8caea05291","block_type":"box","text":"swaps and interest rate caps and floors. As described in further detail below, a Fund may enter into these","page_number":62,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"e69ea9a2-65f2-4308-90be-97fe6780987c","block_type":"box","text":"transactions primarily to preserve a return or spread on a particular investment or portion of its holdings, as a","page_number":62,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"47217466-32c3-49c3-a4dc-3605163c7641","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":62,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"8a0609fc-58f3-46d1-b5aa-cc51cc799a89","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":62,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"27a4bed0-ba05-4a1e-82cb-ca4c3772472a","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted for","page_number":62,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"c5f40cbd-d83b-40fa-8388-05357df2e4a9","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":62,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"900fcbd3-4b70-4256-8996-afedb93676d4","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":62,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"fedbbff8-2756-4457-8241-e8d1afa602b1","block_type":"box","text":"by the Funds are cleared. The Funds face counterparty risk with respect to the clearinghouse when entering into","page_number":62,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"52195064-1dd6-482e-8755-52b9484a9716","block_type":"box","text":"cleared interest rate swaps.","page_number":62,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"1f7ab87d-342b-4af3-9a1e-5a15a7513e47","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest rate","page_number":62,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"3d8c7dab-ef3b-4294-b51e-aec4b7834b72","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterparties for a Fund’s non-cleared interest rate derivatives","page_number":62,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"9fa74123-2d5a-48ba-a4ec-d3a004ae9481","block_type":"box","text":"transactions are swap dealers and other creditworthy entities that have substantial capital or that have provided the","page_number":62,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"956d8120-bf34-4a3b-9f35-9123c2af5317","block_type":"box","text":"Fund with a third-party guaranty or other credit support. If the Fund’s counterparty defaults on such a transaction, a","page_number":62,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"658536fa-6457-495a-bd6b-b605601ada1c","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":62,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"2a4fbfff-2698-4c05-8068-34a2fb5792fc","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":62,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"7138ccd2-4c1f-475d-a4b3-5dc73b5acce4","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into certain","page_number":62,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"a67d4d27-fb9a-4385-9c22-f714ca6db124","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":62,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"1fb3b971-9b24-4266-b6a3-3109227eb99c","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a fixed or","page_number":62,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"58ed3c9b-c9fe-4c4a-8c1f-0a8c27e54e5a","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterparty based on a different fixed","page_number":62,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"2ee0f94c-3fe0-4475-9b69-68ce8f04e8ca","block_type":"box","text":"or variable interest rate, index or asset.","page_number":62,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"efcd5e33-61f9-4990-afdb-dc35d13f259e","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":62,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"67e116cb-7750-4391-8382-e85632c989e7","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":62,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"8efc1c6d-d7af-4404-babc-a2efbc390146","block_type":"box","text":"such interest rate floor.","page_number":62,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"8356fb3b-3f73-4018-b773-a3e94bb997b5","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":62,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"aee55931-d068-4263-a3ed-951193b36d76","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":62,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"22bbf98b-dbc8-4a23-84b3-c352842a4445","block_type":"box","text":"such interest rate cap.","page_number":62,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"9ea8fd0a-e4df-488d-91b0-772e4e5957db","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":62,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"72481e99-8624-4f63-9bf9-f7692275b710","block_type":"box","text":"commitments to pay or receive interest,","page_number":62,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"697e906d-987e-4d3a-88fe-465116acea6f","block_type":"box","text":"e.g.","page_number":62,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"682cb688-d9f2-431d-8409-0c89cf07c77a","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":62,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"ee8443ba-e99c-4999-8df2-7f2f1a19d95f","block_type":"box","text":"example, if a Fund holds a mortgage-backed security with an interest rate that is reset only once each year, it may","page_number":62,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"55e810d7-def6-4058-ad98-be406afc93a3","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":62,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"d3dbdbb9-959d-4280-9c3a-775e31e69030","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mortgage-backed security due to rising interest rates","page_number":62,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"39dd73d9-9d5c-467e-82b3-0a3e3430e0ac","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mortgage-backed","page_number":62,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"e90a02b3-f8d6-42e3-8ba5-c247595bbbf4","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":62,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"c575dae6-e857-4d8c-bc9c-df8a71fd01e6","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":62,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"2ea1de00-97df-4724-bde5-a18fdbe42fce","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":62,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"85d9f93a-9d7b-4561-bfed-37f2a5b7bd51","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":62,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"3974a069-9af7-4983-9b02-2ef394e11529","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":62,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"81c42433-7bb9-449f-b6e6-2767be165b48","block_type":"box","text":"II-19","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d131e9ac-d1d5-4b48-8c94-39daa7515f8f","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5563f7a4-c866-4040-8aa6-f8b9253826bc","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":63,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"7919c49e-8b11-4c46-8625-0a400e78b048","block_type":"box","text":"in certain circumstances, as long term capital gains to shareholders.","page_number":63,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"a1286a1c-d113-47bb-a4d9-ea1ff8d81c5d","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":63,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"a0bbd306-f357-4d7a-aede-fd223dfd9e6e","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":63,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"0fe734cf-0aa7-4d32-aa21-f3a447c90148","block_type":"box","text":"Total Return Swaps.","page_number":63,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"6e52347a-7b26-426f-853d-0ac26af35ec3","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic payments to","page_number":63,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"0d7ad7fa-5938-4dd7-bcd6-b23a34c80e21","block_type":"box","text":"the other party based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":63,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"f8208e74-6f6b-45c5-a8e4-818882f5f29c","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":63,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"6758f24e-0be6-4005-b7c5-4393c0825a36","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":63,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"959af0f1-74be-4c4d-a85c-9d163955abc2","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":63,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"d0de7c92-0707-433d-b670-5d6225d96b2a","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":63,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"72a86bc9-be1b-452e-8643-92b6a86228d0","block_type":"box","text":"“contracts for difference.”","page_number":63,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"a3a251ce-10a8-4278-a9e0-aac11afba38f","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":63,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"2fcfa633-377c-4cc8-a601-8e1db1e857ba","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":63,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"7dc9db7f-6380-4f69-abeb-f72bfcedfd87","block_type":"box","text":"required to deposit initial margin but the parties do not exchange the notional amount. As a result, total return swaps","page_number":63,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"9bc97541-3cf3-4d36-acd6-90bf2ff5f142","block_type":"box","text":"may effectively add leverage to the Fund’s portfolio because the Fund would be subject to investment exposure on","page_number":63,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"bd7031a6-ef55-470d-825a-faecc085c203","block_type":"box","text":"the notional amount of the swap.","page_number":63,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"86c4966e-00ce-40cc-a88e-8bf4e55f1097","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":63,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"52d78c3d-6f1a-470e-83e8-d68b7ea2de11","block_type":"box","text":"counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":63,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"63c93660-3132-4301-9559-256ccab40f4e","block_type":"box","text":"Options.","page_number":63,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"d7ba4361-a97c-4ea9-8f3d-d948ddf0a47d","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":63,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"90f18990-5fe3-4b61-8d5e-c996ed1fcba3","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":63,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"dfe7de2b-0137-43b7-a15e-cad468fe59b6","block_type":"box","text":"securities, baskets of securities or securities indices, or particular measurements of value or rates, such as an index","page_number":63,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"8dbc74b3-f2fc-4882-a329-aa330edc5937","block_type":"box","text":"of the price of treasury securities or an index representative of short-term interest rates. Such investments may be","page_number":63,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"875e2053-aa63-4077-931e-1e359ad29e25","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":63,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"8b422272-c77c-461d-95bb-4f6abe2532f2","block_type":"box","text":"and expiration dates and require the parties to post margin against their obligations, and the performance of the","page_number":63,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"abb8a64a-1991-458e-b97e-25a7200945e7","block_type":"box","text":"parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":63,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"d53aede9-56c3-4113-b87d-93fcf7faa525","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":63,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"7b957e57-808e-4e44-bc09-9c693c272c56","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":63,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"051a7504-0299-4420-8c82-3f87b1bb27fb","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":63,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"e789acf6-a1e2-461e-b381-117e77251037","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":63,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"6290ae25-1640-4be2-bf3e-c6399c7c6b12","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":63,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"e419ddf5-e843-4f93-9b3e-3e2c22f2e669","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":63,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"937c9c38-09ae-4072-9567-c13ee165805e","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":63,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"7f27b4cf-b33f-4a3d-bf0b-2cd3c23628e4","block_type":"box","text":"OTC markets.","page_number":63,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"c2434173-7849-4622-9e71-1d029c8f03ec","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":63,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"5467ad38-1259-406d-b5d5-4370f201f910","block_type":"box","text":"significant differences between the securities and options markets that could result in an imperfect correlation","page_number":63,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"f8a53e02-6894-46b6-8236-3bda5b007094","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":63,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"d0883ec0-bd33-4c13-b318-22399bb082cd","block_type":"box","text":"particular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":63,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"8931dc23-06d6-4cdc-bf6d-465496f74aab","block_type":"box","text":"which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed","page_number":63,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"f29b4337-22ae-4b9d-8d98-3da507986978","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":63,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"dfa1f823-1224-49d8-9840-a041bbaf7e01","block_type":"box","text":"restrictions may be imposed with respect to particular classes or series of options or underlying securities; unusual","page_number":63,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"03142cb6-ed8d-4191-a87c-c8486eb8568d","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":63,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"896d1534-53f1-40f7-bb22-2fe1ca9b295e","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":63,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"44f4e2cb-99aa-468b-b5f4-c2e6c1333839","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":63,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"58965432-803a-4651-98b6-4e669bdeddb6","block_type":"box","text":"trading of options (or a particular class or series of options), in which event the market on that Exchange (or in that","page_number":63,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"13ffe2c7-d3d8-4278-82df-25fd14bc38c8","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":63,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"2bad64f5-ed2c-4789-91ce-b431ac9afd8a","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":63,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"58bef006-ab55-4162-8251-ddfb7406bea1","block_type":"box","text":"terms.","page_number":63,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"14f793e2-3931-4187-bbe3-b6012326cd87","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":63,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"6ee9d13a-4864-447b-a4ae-c12456f3873e","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concert with others","page_number":63,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"99ffe215-6694-4c0e-804a-54beadbf27ac","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":63,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"a2ca4ed4-294f-48fc-9841-c8adfc705e4a","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":63,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"2c3fa3fc-86c9-40c7-b731-6db3dcb6d143","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":63,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"f0139f04-a22b-49cf-a09b-84c3d5790cb2","block_type":"box","text":"II-20","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"921186bf-5f2b-47cb-b73e-ba49d705afc3","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"821eda46-3769-45b0-aab2-229e0424c8f1","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":64,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"fde93885-fe4f-484e-9b51-f13e892be236","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":64,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"67be3d1b-5acf-44dc-bf92-e5056c572128","block_type":"box","text":"Call Options.","page_number":64,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"13910253-9700-4396-8a5d-0baa1ca9dd0f","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":64,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"2d280d27-aadb-4e51-aae8-1730a98ac94e","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":64,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"ab1e9156-6be7-4e48-82a9-828ba1a005a3","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":64,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"5fa3ed8d-a7f7-41fa-8d95-12799860154c","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":64,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"31297893-fc67-4344-a551-fd95de0cf79a","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":64,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"1a37c3b2-e8bc-4413-8ff3-a1eb6f0ae573","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":64,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"28b30eb1-7237-436c-b389-5df71d23d114","block_type":"box","text":"of the option.","page_number":64,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"d8a19895-f4b5-40f1-a722-03eb6ed16945","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":64,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"44c75265-bc40-4382-972c-a4306fa4c2ac","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":64,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"fd88fc28-701a-4dac-965a-6fe683e12bf0","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":64,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"c0c82dd1-0ca9-40f3-ab5a-713ba12d5e8c","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":64,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"a1c1e74b-4e3d-42d9-a845-06267b5fe8f6","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":64,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"d1ced33c-a1a6-4e6e-8c27-828a7f79000f","block_type":"box","text":"A Fund may write (","page_number":64,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"d0f41c8d-826d-4ced-b5ff-94ebb7559582","block_type":"box","text":"i.e.","page_number":64,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"2d579ba4-d616-4057-811e-44adfe66b88b","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":64,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"c5925fc2-a491-499a-bff6-6647fd200156","block_type":"box","text":"enter into closing purchase transactions with respect to certain of such options. A covered call option is an option in","page_number":64,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"fc2feb24-317c-4298-97e8-ae2ab9b49b08","block_type":"box","text":"which a Fund, in return for a premium, gives another party a right to buy specified securities owned by the Fund at a","page_number":64,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"4c762c76-01df-4b2d-96eb-c7a86779e13e","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":64,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"6bd2e2a5-6842-49be-a545-b9339ed9c2a0","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":64,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"ef471ec3-74f7-4ac9-bbbf-406e630dabbf","block_type":"box","text":"By writing covered call options, a Fund gives up the opportunity, while the option is in effect, to profit from any price","page_number":64,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"6a899a53-380d-4317-be09-a1ca3791d0b7","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":64,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"95d47a5f-b20c-4f2f-87e2-711f6b764f8d","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":64,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"9498ec1a-145f-4cad-9048-02bb20282923","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":64,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"67037e76-922f-447e-930d-c8da8f5f022a","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":64,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"88652811-5cea-4f7c-9eff-3c0e8386ef38","block_type":"box","text":"a partial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":64,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"4cf7c8cb-d876-429a-8478-7047c2c75e4b","block_type":"box","text":"A Fund may write","page_number":64,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"7c0bc564-8c8d-4e0b-aa2e-ec1fb5613ba1","block_type":"box","text":"(i.e.","page_number":64,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"7383eecd-ec72-45f5-aeea-04bf2374bb5a","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":64,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"81947e13-be84-47f3-b748-6dcd8a59919f","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":64,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"0308f29a-9e6d-4226-b303-df43833b3394","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":64,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"612b314e-2ff5-48b9-9218-ab9757a5bee3","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":64,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"7036fdc3-4698-4de3-b0e2-908fbd5e556f","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":64,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"c7177397-2ea3-4343-899b-847068ff0695","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":64,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"fa256b74-4ff3-4dea-9110-3323d015e1b1","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":64,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"915b2366-040c-48eb-a12f-f377ca7df331","block_type":"box","text":"there is no underlying security held by a Fund that can act as a partial hedge. Uncovered calls have speculative","page_number":64,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"aa323bde-3b69-42e7-8b7b-86ab97b94cbe","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":64,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"bc043a69-935d-4a13-9a00-7ce5a2a1ad22","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":64,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"ea5a6323-92c8-4c8b-936c-4f38aa12f38c","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":64,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"f8b057d4-f40f-48f7-bbce-d8e370c5f559","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":64,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"d4cd5b21-54de-4fa2-a685-a6416d14293e","block_type":"box","text":"Put Options.","page_number":64,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"812cb373-9896-43cc-a733-0f42a31831c6","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":64,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"5a11c41a-c54f-4668-b6dd-79d94aa44a7a","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":64,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"9cef2b23-1cbf-417c-9f87-07c13aa9071c","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":64,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"e0756412-4bc0-4a21-9b8e-a90d3951f87d","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":64,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"b402bd25-9d2d-4c14-9974-bd80f35e0682","block_type":"box","text":"instruments will be partially offset by the amount of the premium paid for the put option and any related transaction","page_number":64,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"dbd89cb0-2c77-44d8-9083-f92359fed29f","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":64,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"e28b541e-c3fb-4853-b83d-3629c4310538","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":64,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"ca417c16-eb0e-4ca7-ba2e-af718a49bc87","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":64,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"f5e5be68-7930-42d4-bdbc-eb019d4fa733","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":64,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"aa0063fb-737f-4548-a68c-8b0764ab5237","block_type":"box","text":"purchase uncovered put options.","page_number":64,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"75ea8f5a-9083-40a0-8bab-9a8da2de1ed0","block_type":"box","text":"A Fund also may write (","page_number":64,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"fd8e3e95-2b55-409a-8800-c81314db7c3d","block_type":"box","text":"i.e.","page_number":64,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"acd9666c-d1a8-4dd4-b979-a2702f775099","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":64,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"dffda6bd-ac34-46d5-9e43-617099f53ede","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":64,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"cb2a5828-e49c-44f1-a017-9590519e5b79","block_type":"box","text":"A Fund also may write (","page_number":64,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"8c28b12b-713b-49b3-9639-ec93b5154a0c","block_type":"box","text":"i.e.","page_number":64,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"58cce74a-5d98-460c-87bc-080fc7d72a85","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":64,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"f9122294-52f5-41d0-815a-5ca9841d5d27","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding short position or has not deposited as","page_number":64,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"b3ae5606-c667-4dab-9b75-8e82b5285ba6","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":64,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"2ae3390a-142b-45ac-95bb-e7402ab93fed","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":64,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"4dc08a0e-da66-4fc3-85e3-9d0a882eda1a","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":64,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"b588f5c3-b055-4a69-9446-b364896af6c3","block_type":"box","text":"II-21","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"82747877-3574-494c-904f-509098439b99","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"02b93491-c16d-40bb-91eb-4d2f8c330de7","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":65,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"9844944a-f9cb-4da9-a0a1-a60f72f4a589","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":65,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"39df415b-9862-4ca8-91e3-e38befa7b53c","block_type":"box","text":"expire worthless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":65,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"e0007cc9-be8b-4622-8d34-0a92d543a7c6","block_type":"box","text":"the exercise price.","page_number":65,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"1ae8d18d-2fe3-43e7-833d-e5ffb005bf17","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":65,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"cb6defb5-93d5-4833-95a2-81f161033d7b","block_type":"box","text":"The following information relates","page_number":65,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"07cd8286-7dcd-4744-a2cc-b060277f91f6","block_type":"box","text":"to the unique characteristics of options on GNMA Certificates. Since the remaining principal balance of GNMA","page_number":65,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"72da11e3-f423-41aa-b3e8-1d429101ac89","block_type":"box","text":"Certificates declines each month as a result of mortgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":65,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"d5ef597b-9d4d-4aa4-8424-474c09d7089a","block_type":"box","text":"Certificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Certificates","page_number":65,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"e360e38b-dee8-4c7c-8317-6e33a745ffc9","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":65,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"cc692b3b-d467-4ebc-ac98-c6b5de924a18","block_type":"box","text":"purchase additional GNMA Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash","page_number":65,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"0a7daf0d-7ed3-4946-996b-6b7741c2f171","block_type":"box","text":"market in order to maintain its “cover.”","page_number":65,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"5a96234f-f879-4af3-8481-996b39d85a08","block_type":"box","text":"A GNMA Certificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":65,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"8af2400c-3e64-41e1-857d-6eb1d10eb242","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":65,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"20bb63e3-9464-4107-9c4f-fa3354dcbbf4","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":65,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"04d93206-1d2d-4e7c-952a-fc8ea8ad628c","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Certificate with a certificate that","page_number":65,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"54ed2847-d5d8-48a7-b634-0b03b4c8098a","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Certificate, it may realize an unanticipated loss","page_number":65,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"7ea23d0e-3936-4a79-bfa2-0bf6f73e15c7","block_type":"box","text":"and incur transaction costs.","page_number":65,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"0767dc73-641a-471a-8268-208baef4096f","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":65,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"c44f90a6-561b-46ae-8d61-a7fd63a1a259","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to enter into","page_number":65,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"7284e540-f36c-4fa4-9f53-78272e57c442","block_type":"box","text":"a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":65,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"1609eee0-cf22-45fa-8f42-22b3cfac8ede","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":65,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"072d7de9-407c-4a89-8530-351f49eb88c9","block_type":"box","text":"i.e.","page_number":65,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"bdcfdc3e-de81-4b58-970d-3637a1a0d1b2","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":65,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"607faafd-6355-4db1-9262-6d3f18437568","block_type":"box","text":"Depending on the terms of the particular option agreement, a Fund will generally incur a greater degree of risk when","page_number":65,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"b6abd1b0-26f5-4741-a223-e8a510b13f4d","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":65,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"ad93c6c3-5602-4598-972d-184de94de0a5","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":65,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"4c9d18f3-1a22-439b-8ad7-b2e4c199224a","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":65,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"d1351e43-79ea-4168-a01f-e6864a569d59","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":65,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"44c7f81a-3276-4b46-afd9-6b7c34b7d1b1","block_type":"box","text":"required, to be cleared.","page_number":65,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"3a48b3b6-d776-4fcd-8a56-8883560deee2","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a particular investment or","page_number":65,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"ff6c3879-ab97-4c16-ae01-dcd8a5651de1","block_type":"box","text":"portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":65,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"f25bf553-71ed-472b-ae48-cc97e2d3c4ac","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":65,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"c8e4799d-a2a2-41cc-ac0a-92769f335a6d","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":65,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"32f1561f-4e33-418e-9dfc-859f9ccfa558","block_type":"box","text":"Derivatives” above.","page_number":65,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"ca4672a8-4258-44bb-952e-880a698a1e2b","block_type":"box","text":"FLEX Options.","page_number":65,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"d8649d48-18f9-4209-afef-80a205309f0c","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":65,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"78b66661-ecf5-4f05-a47a-42923e6939b3","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":65,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"7c93edb6-9f24-4120-a30f-bf64380c40b3","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":65,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"c4de6cbc-2f34-4f9c-9082-79978c1cffa6","block_type":"box","text":"exercise prices, exercise styles (","page_number":65,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"a67539a2-61c9-448b-8c62-7f0d9d9054b3","block_type":"box","text":"i.e.","page_number":65,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"1d5d7b0b-ff02-4f37-ab40-5792f3a12afb","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":65,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"679a1fb3-6843-4923-993f-3249aaeb0f76","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":65,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"2b7413d7-043e-4004-8167-9065fbe7fb61","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterparty exposure of OTC options positions. Each","page_number":65,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"0655699f-beb5-4b25-a4ba-fcd0ad1a6b61","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":65,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"ae9f66be-3493-42c0-b670-e02ef079b81e","block_type":"box","text":"reference asset at the strike price. A Fund’s portfolio may include several types of FLEX Options, including both","page_number":65,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"b71db1bf-f803-43a0-8442-0d975f07521b","block_type":"box","text":"purchased and written put and call options (as further described below). The FLEX Options are all European style","page_number":65,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"8aef2990-97a8-4315-aa34-e8fc3835b312","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":65,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"9b18f556-fb3e-4cd3-b9d4-c6efca62ebbb","block_type":"box","text":"FLEX Option’s expiration date.","page_number":65,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"13b61b83-f4ad-46e2-a8c8-892d952006a1","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the “buyer for","page_number":65,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"3ccc7b29-d6ad-4fda-9e22-e18ef3573340","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterparty risk for clearing members and options traders.","page_number":65,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"1d5641a7-0455-41fd-9ea9-92f3c8b90b42","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterparty risk with the OCC and","page_number":65,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"616f670e-1f62-441c-8f68-772a424811ec","block_type":"box","text":"subject to the risk that the OCC may fail to perform the settlement of the FLEX Options due to bankruptcy or other","page_number":65,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"88c2bee1-939b-45bb-b2cc-572f660457c1","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to perform its obligations under the","page_number":65,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"189d55f4-09fd-47f1-9e92-9af01adc34aa","block_type":"box","text":"FLEX Options contracts.","page_number":65,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"9a399af3-6d86-422c-8607-6c83f004f037","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":65,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"227ddf94-2072-4b79-ad6f-194ec569645a","block_type":"box","text":"Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: certain stock","page_number":65,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"5c0342ae-211a-406e-9db2-6c4315b04945","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":65,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"c0b635df-0397-4518-9d28-ddbf0e13399d","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":65,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"834649f6-5d93-41fe-9768-8ad875baf6c9","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":65,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"3a211256-a1bd-48e2-9504-8537e7cab585","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":65,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"50896e42-909d-4adf-80e7-cb33b1588392","block_type":"box","text":"II-22","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"92d6a1b8-d9d0-4395-b6b2-f4be54f4f331","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1a140988-3d53-4163-a2fa-12e99900afbe","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":66,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"b5fc4645-2ed9-4fa8-aee9-3477287db00e","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":66,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"b3f7af96-91e1-463c-962f-2c813826486c","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":66,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"56aba790-6e17-4369-825d-5bcca737759a","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":66,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"283f46c9-3618-4e57-a5b0-606760ae7b91","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":66,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"50871a95-04a2-4d8b-81b6-d9be3be36724","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":66,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"5179fbb4-cc15-48d1-9f6c-e80925635bc3","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":66,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"d4966247-28d0-4d54-a505-1a39be6dbfe5","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":66,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"8586f997-106b-4a99-a71a-b197d1633417","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":66,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"f9d40047-f103-4c97-9680-70fe5f6ec075","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":66,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"d4477ccd-e108-42df-8dcc-6dd1b88e9b9c","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":66,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"f3bf89e3-68bc-471b-a14b-a8736708e52a","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":66,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"67d40926-4e14-44be-8a98-44a67855983f","block_type":"box","text":"expire unexercised have no value.","page_number":66,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"353ce43c-b7b4-45d4-8a7f-342a98009f36","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":66,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"46d9f078-6fd3-4a4e-924f-b3608bf812d4","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":66,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"28c67663-270a-4b56-8f9a-f5b7c4df9abd","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":66,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"61afdac6-9c81-4c9d-add3-abc3efd22f38","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":66,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"f9bbef4d-f370-4777-937d-b322d94fe761","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":66,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"4586489f-c806-49ad-8550-6dec9795ef47","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":66,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"5c01cc0b-0bd9-47e3-b559-069f2822a737","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":66,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"b3483a44-4f39-489a-9570-c475e807af7f","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":66,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"7bf345ee-d4f4-4884-b715-f8cc858e9a62","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":66,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"b1bbb1e4-4058-4a85-aff6-ce316dd1e218","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":66,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"506c767c-9c3e-42ad-98c5-10e7ba1a7205","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":66,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"e6771f9a-e3ef-445c-aeb3-7126ac1f3271","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":66,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"846d1daa-2dd7-4946-a462-559051b5c7e5","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":66,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"f74a54e7-b4ac-496a-a4bf-d85ce9d9fc91","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":66,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"8202350b-a712-4a5a-92ec-0ef579ea9c8f","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":66,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"46f38222-b622-4bb7-9bab-0efabc4169cb","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":66,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"f51ba846-410e-4005-853d-56062a8ea7d6","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":66,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"18179993-201a-4927-8c65-183d771b191b","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":66,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"29f5c7f5-bad9-4a05-ad99-6687f38fd7b3","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":66,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"683ab2c0-42ce-43aa-9fec-5bef5462917c","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":66,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"413885aa-27e4-4fb0-8dee-f995fcd4dcb1","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":66,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"ffef88cd-1833-458a-b0eb-212c00a43905","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":66,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"c52f4ebc-3a6e-4c3f-8276-d85c0e531d62","block_type":"box","text":"Foreign Exchange Transactions.","page_number":66,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"d12447c8-59ab-4715-b17c-0dd336898e72","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":66,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"9ba326f0-a61b-4236-8153-3011bce52581","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":66,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"f230c2f0-89f2-439a-975c-0bd7e3ebe270","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its portfolio","page_number":66,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"0239763b-5c19-4dfe-af93-29ebca6dbb96","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to certain Funds, to seek to enhance returns.","page_number":66,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"96d57246-63ab-46cb-be80-ad7c9e8177e4","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":66,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"1870ca5a-1d4a-4f62-8d2d-498e67b84a84","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":66,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"7050c6c9-e333-4ab9-a4f7-8dad59be63d2","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":66,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"b707d2fb-b0bb-4deb-b5be-f10e0db3d05d","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":66,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"8aac12af-859d-41bd-8f47-f0bef3737810","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":66,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"855c364a-fca8-425c-8c8a-655f0cc878ea","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":66,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"0ee6c61a-2436-4c4a-8b51-8d34b564cca1","block_type":"box","text":"part, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":66,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"6f370104-86e1-45c0-b4af-e9ef7b9abb85","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":66,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"d846f022-8c77-4da9-862d-846146c16310","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the opportunity to profit without limit from increases in","page_number":66,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"261f54ef-0970-4524-8257-f765c84c53ff","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":66,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"83fd32bd-be41-4434-9f34-b254e7c3bb41","block_type":"box","text":"transactions. Certain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":66,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"a7de0e5d-051e-4c33-b8d2-8d6d5492cad2","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":66,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"58af77ec-df62-4c34-84f9-df025139bbc4","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":66,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"8662f368-349b-4f69-b9b7-707d33b9a4f8","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":66,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"b62b5266-a0d4-4fda-bf95-5a3797a1af58","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":66,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"209672c7-b6cc-41ec-87ab-c0d73096869a","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":66,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"e1bacaab-4a3f-413e-bd37-3582fe5c1478","block_type":"box","text":"II-23","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e2c917bb-ef60-415d-9091-b5bb2c255d45","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e09a77f2-9eb9-42fe-94d3-ff8ab163801a","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":67,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"43e9d2b0-4122-4225-88f7-8bf931f04d62","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":67,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"bcc9f2ae-c4da-44c7-ae3c-8aa2b8e565c8","block_type":"box","text":"Furthermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":67,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"b5501591-506e-47e2-8b02-0ed2da0bdeda","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":67,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"decfcaf1-701c-4e1e-b5a7-8bb83faa2d74","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":67,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"aefefa78-57a5-41e1-8f59-8ffe1e9097d0","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":67,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"3fb6cc1b-38c2-45cc-88d8-4e6445a447b5","block_type":"box","text":"particular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":67,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"0986bd9a-9858-4cf6-ad8b-67793a51b4d7","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which certain banks","page_number":67,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"abace30c-76a9-455c-9a4e-c0a60896213c","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":67,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"b31ea67a-6dd9-4c2c-914d-bfa89964a335","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":67,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"d611b6c5-62bf-4340-b0d2-4183ce9ea4d9","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":67,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"f5042ae0-304b-4cce-bba4-584e1c507871","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterparty risk. Any such failure to perform by a counterparty","page_number":67,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"8b81ae2b-83ae-462d-857f-7d019957d25e","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":67,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"ce6252c6-74f9-442f-aaa5-b6dfca65e0bf","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":67,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"52511499-2125-4980-b7fc-bd1409fcf79a","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":67,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"5a104431-70e9-4616-8f36-057856284254","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":67,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"f5a84bfd-f67b-449c-ad90-9f8dc2e218e1","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":67,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"f6778b03-79fa-4ca0-8911-07b050b17058","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":67,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"5c3cb067-dab3-4113-ab4e-f2522bd54037","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":67,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"899579ed-1159-4d90-a67f-e7ad5aa95991","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":67,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"e30cef09-83af-4af4-a80c-6352a60501ed","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":67,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"b3ca938f-e33c-4505-bcf1-648e4025a100","block_type":"box","text":"involved.","page_number":67,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"5e054992-4c51-462a-8ff6-48b2647ed9aa","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":67,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"382170fe-4730-4139-8dff-1b09cdc98e02","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":67,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"8fe0ada4-1e9e-4f9e-b04c-1e9d37e201e0","block_type":"box","text":"denominated in such currency.","page_number":67,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"308e9df6-a37f-4c8c-974a-30b9a01d48b5","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":67,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"dc15498e-b8e7-47d2-a253-9c7e3075fdeb","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":67,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"3412ac46-1090-446a-86d0-60ed22befccd","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":67,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"23b107f7-bc1b-44fc-8366-a42ace838b3a","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":67,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"332c1c63-3874-43f0-9aaa-f6b254d2b645","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a portfolio position, or, with respect to certain","page_number":67,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"4b6d5f9e-87d2-4c65-b6bb-5d25f9dd530f","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":67,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"33540695-00ce-4486-a6a0-e0cdcacea4a4","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":67,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"69b9b2b0-3738-40a4-9bc3-ae05c090431f","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":67,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"f6955e95-66a1-439b-b7cc-ff9d7de1ec88","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":67,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"d353e5d9-7aa4-4ce8-a9a9-49e5583f87b3","block_type":"box","text":"hedging a portfolio position by selling forward a currency in which a portfolio position of the Fund is denominated or","page_number":67,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"174b8e69-77ab-41a3-b74f-88675e1f4dd3","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a portfolio position in the near future. A Fund may","page_number":67,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"7839b49c-0640-43af-8c23-d8cb37a8fe3e","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":67,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"7d4b9b4c-1842-478e-82b3-36f2d2b9dd4a","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":67,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"0c873147-06de-489f-b70b-602288a9c016","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":67,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"56cf5da5-6fd5-4785-8847-765b20f9f80c","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":67,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"74cf99ff-f236-417b-9b0f-094580acbe28","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":67,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"45f4f4f3-a9b1-4cc7-a1b5-4f4e0127d044","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":67,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"98e27688-bb94-4415-a26a-15f0b03fe785","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":67,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"60eadcd9-d218-4181-9a21-8aaa549e3223","block_type":"box","text":"of existing or anticipated holdings of portfolio securities. Proxy hedging is often used when the currency to which the","page_number":67,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"4d9d7730-e773-4775-9a2d-bbefb52289ce","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":67,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"79f895ea-344a-4c7b-86b7-953dd518ff6e","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":67,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"a8b90634-470d-4109-b241-33e9a56625ab","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":67,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"4ce589bf-2861-4880-92bf-ab193a1e5c23","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":67,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"3943f12d-bf7a-42ab-874c-d893aa6adcdc","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":67,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"60f36695-6dc4-4253-bf7c-66995e64d7cb","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":67,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"0cd88ff1-30ed-4534-bd24-bf3a582a3c11","block_type":"box","text":"may not be present, including during the particular time that a Fund is engaging in proxy hedging.","page_number":67,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"72f1e6da-5f39-4b17-9040-d79ba2cdf189","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":67,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"50ba7644-4e7b-4438-a0b8-909e1bece02a","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":67,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"9d7fefb1-7b43-4d02-986f-934ca6ac212a","block_type":"box","text":"have portfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":67,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"569d6308-ecdc-4bdc-8183-9678ebcdd9e7","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":67,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"069227f6-aed3-4bab-872a-0b4559f48c31","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":67,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"ff9e2eac-256e-456e-a041-dce75bcf3b16","block_type":"box","text":"II-24","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"79f5512f-4b25-4de7-afc9-f6293b473b61","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e5cae2de-97b5-43ce-a837-9ab17a3d2b63","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":68,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"26da046e-bf2e-42bb-9fcf-375410a1ea55","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":68,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"2fc6e479-55dd-4c9c-8b13-0a29e6253e05","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":68,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"1574b976-3b5c-49e1-b24e-7b40939f6755","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be thinly traded or are denominated","page_number":68,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"da8a61de-7e57-4d8b-82ec-d4c762e90a0f","block_type":"box","text":"in non-convertible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":68,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"28aeb768-2256-4967-8a46-957514a674c8","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":68,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"1c7871e2-18d9-4438-a8bb-1f25b2811c84","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":68,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"ea6f3fb1-cddd-405e-92cd-2091d2a1e500","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":68,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"ba5f7b0e-db94-4e82-8bbf-a9f91f5813cf","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the party receiving payment. NDFs are","page_number":68,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"8a821d4e-d0b0-4176-a758-490aacc4965a","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":68,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"2fab252f-0bab-414d-94e1-7f71eb6a1cbd","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":68,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"4cc9c25a-5e4d-40a2-b256-7f824f909c36","block_type":"box","text":"traded.","page_number":68,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"f5109bf9-5032-4014-bbf3-a22bea03eb15","block_type":"box","text":"Currency Futures.","page_number":68,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"f07fb189-6c2d-4218-a689-5a13563aa052","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":68,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"083729d1-7992-41c5-a966-803f1016888d","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":68,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"c5ce6606-3271-4032-96d9-5970d1b07276","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":68,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"5841b274-3235-4519-ad50-b5c289230d18","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":68,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"8756b777-82e1-4c0a-97ee-588ceb9cab15","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":68,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"c0642925-1307-4977-96a4-255a9b37b871","block_type":"box","text":"Currency Options.","page_number":68,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"cb4c1c01-9e0b-4626-ba13-795046c80b03","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":68,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"d0d7d126-e57b-4671-8227-1f0ce75723ba","block_type":"box","text":"through the use of currency options. Certain Funds have fundamental investment restrictions that permit the","page_number":68,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"a51bab22-7c7d-40c0-842b-cb88bc5d2d2a","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":68,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"2b89c5be-0a7c-4b10-8c04-9c2358e1a16d","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":68,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"deee5249-8f90-4670-8993-bb952bc711ba","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":68,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"a5c39c56-7551-4cf5-9f8e-8a61cb54aabe","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":68,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"a00bb3a5-6dcc-40c5-ae6f-60b376fbd8f2","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":68,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"b1004266-b2d2-4f32-812d-3f5311f543d1","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":68,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"a9575ddb-f000-4b95-b4f0-d9df996fdecc","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":68,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"19401ec1-3bb7-4776-87e9-e4a3fb26ba5c","block_type":"box","text":"on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options involve substantial","page_number":68,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"727a91ba-1a41-4a6a-bf14-765911903d7e","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":68,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"4383e5d1-1148-48db-8a7f-c56fe0f73a45","block_type":"box","text":"Currency Swaps.","page_number":68,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"3f54f15a-6c60-4b26-9181-255e7c51e261","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":68,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"085a7d73-4b25-4e4c-9dce-0999f41a2c6c","block_type":"box","text":"hedge portfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":68,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"ba3c85f7-693e-44c4-ac84-c905d1285576","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":68,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"e6ce7bf0-baa5-430c-b8a0-620382118e96","block_type":"box","text":"exchange of the rights of a Fund and another party to make or receive payments in specified currencies, and typically","page_number":68,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"e965e031-af03-4119-8ee6-a428a5ce8f61","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":68,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"e9c05b75-f348-44a4-b639-df6d9e11953f","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other party to the","page_number":68,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"672cdb9a-fce3-47a2-9fb7-84617af41e43","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":68,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"9e76d7dc-16e0-4d1a-b783-4f1930492857","block_type":"box","text":"Distressed Securities.","page_number":68,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"6c483101-0d20-430c-ada2-f482b9c9f5a3","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":68,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"3b2f5c0f-e80c-4dba-9c6f-3591e68994be","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":68,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"448afa53-eb31-46af-a94e-5fe4b56f3c84","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":68,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"2668960e-54fc-4244-9bb8-38a95ebaf425","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":68,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"30b8042f-cc38-4188-be5f-b6cb35c65835","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":68,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"338ec1e0-79ac-4202-85d0-1f379df10a19","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":68,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"ec9ff72b-f346-41e7-b525-597e5b8cca74","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":68,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"eded524e-a4ca-411a-bdbf-750c5370803e","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":68,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"f83e5826-43ed-481c-8689-a179437333a8","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":68,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"443f889f-83a1-44a0-b569-a9abfafa2a6d","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":68,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"a52d0292-a696-48ab-9c80-4eeb2c995488","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":68,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"d41d0d2a-ef32-46ae-a344-d586863dc184","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":68,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"b878e5e2-9d15-47ba-a60d-260cc26251d6","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":68,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"6c1cec64-4d7f-4dcf-a805-9d4cb60c9aba","block_type":"box","text":"significant uncertainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":68,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"c73fc4c0-a234-4118-a272-6d2062b1fc04","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":68,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"44e67002-3de8-4fed-b157-e9a1bddc5522","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":68,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"5c14eada-0b7d-4ea1-93f6-75f2440b8233","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncertainty as to","page_number":68,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"60a836b3-b800-461b-9190-85d32df780f5","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":68,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"8710a956-1a35-42f8-9eeb-bfa80e7b8be7","block_type":"box","text":"satisfied (","page_number":68,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"bf734abb-b178-497f-9717-de390861dd32","block_type":"box","text":"e.g.","page_number":68,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"3ae4dcee-539a-4770-a04f-e6ad5fba5f6d","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":68,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"a091a0f5-b13b-458e-8d62-b478989d4eed","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":68,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"b21d2488-1940-4ded-835e-32d4ada8fa8e","block_type":"box","text":"II-25","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3fc04cc0-59b5-4e4f-9385-5552c6584c41","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4c991e04-b9eb-4d7c-a484-ba6aa9a40a6c","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":69,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"ee2153d0-7683-41fd-8e18-6c2e2a48e2e3","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":69,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"eada8d7b-f9f5-430a-b46a-37380fa1d7ca","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":69,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"2a7139e9-bf31-460f-b9a2-a830f765afdd","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":69,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"5eb75197-8766-42fa-b623-d6ecf3fc7bb9","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund participates in negotiations with respect to any","page_number":69,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"b00d495d-228b-4e89-bca4-5b9dd1c751be","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":69,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"b40df432-a722-4fff-b623-b1b6257b753d","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":69,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"c7126a5f-cd8f-487d-9f27-09242a1ac761","block_type":"box","text":"Fund may have a more active participation in the affairs of the issuer than that assumed generally by an investor. The","page_number":69,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"2b3396ef-c7df-43de-85a6-404dd4024f54","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":69,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"0995130e-b40c-4fdf-a44f-c92164cbe53d","block_type":"box","text":"affairs.","page_number":69,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"ffb40518-126e-419a-8b8f-78fa6ac56529","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":69,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"4622dab5-a308-4321-9d7a-439681a4bddf","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":69,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"0e6d530d-ddc1-4d34-aebc-d784eacafd67","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":69,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"c5b48fee-bd6f-4f18-bf0d-724c512eb22e","block_type":"box","text":"consider ESG factors as part of the investment process for the Fund. Fund management views ESG integration as the","page_number":69,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"87a2687d-70de-448c-9a25-1cada394419b","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":69,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"03ee22b7-7c70-46f9-80c2-f741fe537fd6","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s particular investment","page_number":69,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"42de96e4-7939-4786-91b8-91fb6ad024ed","block_type":"box","text":"strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock","page_number":69,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"dba09ba6-7039-40a2-8082-35034b830c5f","block_type":"box","text":"research across the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":69,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"6adcc7f4-e84b-4599-a139-08c6a3e9d513","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":69,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"a7d7e873-cf9c-43b6-9ab3-7130952efde3","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":69,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"afbf08fc-54d2-499d-ae15-042dc5120daa","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While Fund","page_number":69,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"fe5db8f9-00b7-4e2b-9719-5047f3b2f6f0","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term performance,","page_number":69,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"3cc06e86-ae80-4f8a-8ed5-095f1bf6c1e4","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":69,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"fe448c30-5ff0-45c6-8685-7f044fb7d829","block_type":"box","text":"Equity Securities.","page_number":69,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"0f353c3b-08e0-4b12-9039-290ede2396ad","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for certain","page_number":69,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"b716a6e6-f3c7-4430-8321-a81289023a7e","block_type":"box","text":"Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":69,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"5c127235-6c2c-49a4-8fb9-ca6fbe4b74c3","block_type":"box","text":"interests in trusts; general and limited partnerships and limited liability companies; and depositary receipts. Stock","page_number":69,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"a34589ca-32e7-4705-9a48-c4360a2a421e","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a portfolio","page_number":69,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"8ca463d5-a993-4ef5-93e1-8a013c60d37f","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":69,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"2664b9e2-068b-4ed9-9756-eb19272ea27d","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":69,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"e59fe6fc-5115-47bd-9d6f-adc66c2469b3","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":69,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"8d7fd3a7-02e3-4145-b451-fb44ca214222","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a particular industry or industries, such as labor","page_number":69,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"c26d3e9f-831f-42bf-905d-5b64ae501366","block_type":"box","text":"shortages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":69,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"40b4d57e-3e92-4f6a-9b4a-04899a23e888","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":69,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"689c06d7-575e-4799-a377-d482bc1c6af6","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":69,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"28c1cef1-cf53-4b31-9cd7-eb8bfb1d41e6","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":69,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"7fa1efd4-6264-414e-85be-b05c694e2961","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public offerings","page_number":69,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"7fea41b7-e6fc-41a2-83ce-cbcc139c2f60","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for certain Funds. There is","page_number":69,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"f90f5e81-bcbe-4fc3-bed3-b4f248a20298","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":69,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"f92264b8-1f9e-41f4-9c0b-74c1a66de56e","block_type":"box","text":"these past gains as an indication of future performance. The investment performance of a Fund during periods when","page_number":69,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"d6e089f7-937e-4cb2-896f-69615a6928f8","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":69,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"c5636c17-a4da-4cda-abf9-f26223b3a32d","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":69,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"386df531-ace5-406a-81a9-eb35fc1577e3","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":69,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"b1b3c346-580c-401b-844a-0302c4a43331","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":69,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"6d19f8df-7002-4e93-b4ee-d000ccf51493","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the","page_number":69,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"cfe9e3b3-e645-487b-b681-ef2f6fd9bab3","block_type":"box","text":"initial public offering.","page_number":69,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"c6f96024-2782-48fd-a252-aa3b74a39b5b","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":69,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"5c1f78af-aa73-4092-b591-cff37f801bb7","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":69,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"91b00877-8f32-427f-ba07-d1d9502d222f","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":69,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"454752d3-cd69-487e-9319-b4834c1d51af","block_type":"box","text":"companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by","page_number":69,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"479c2610-f594-428d-9975-b16b485609b1","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":69,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"8c90f2e8-94a1-4aa3-a1fa-5ff474958689","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":69,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"63dc0072-2658-44d2-917c-aa869be31f01","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":69,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"52539dbb-a8e7-4529-a053-a1f27ada0984","block_type":"box","text":"more established companies.","page_number":69,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"697613f6-3804-4286-b621-62b33b8dfda0","block_type":"box","text":"II-26","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3e59761c-2319-4a0e-9915-0ee5857b93d3","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":69,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"178f7ae9-87b0-4abe-8a00-982ce0738e5c","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":70,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"bd03dad0-6de2-42d0-9982-979e17e5ccbb","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Certain of the Funds may also invest in shares of","page_number":70,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"1cd74bbb-876b-48d1-ae89-6364bab921f7","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":70,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"3b56f8a8-aec0-46b9-b5aa-123cd0283e24","block_type":"box","text":"below.","page_number":70,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"b142ca2d-acc2-4ffc-8a72-d69220c46499","block_type":"box","text":"Real Estate-Related Securities.","page_number":70,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"b258df33-a3f8-4424-a1ca-3105fff8cf31","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may invest in","page_number":70,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"48eb8f72-37b9-46d7-997a-0f922ce15fc7","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":70,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"6c693b3d-b343-4615-9080-89ddaab35a8c","block_type":"box","text":"certain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":70,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"86b93a3d-c986-4a54-91e1-a8fb0ccbbc63","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":70,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"fd0b123c-5acd-4a45-a1dc-10def8169471","block_type":"box","text":"conditions; possible lack of availability of mortgage funds or other limitations on access to capital; overbuilding; risks","page_number":70,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"64ab2e8b-70fe-40f3-9eb1-e63d87173b6f","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of properties; increase in competition, property","page_number":70,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"f17ffaf2-45ac-48e2-98d2-87d26eb89068","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":70,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"8e311134-93c9-418e-8b86-1d6646bbde08","block_type":"box","text":"resulting from the clean-up of, and liability to third parties for damages resulting from, environmental problems;","page_number":70,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"3091c4b4-92bf-4469-b9c9-5d2b7bc339f9","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":70,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"6ce5b423-6424-4224-bc11-77b685ecc9a4","block_type":"box","text":"earthquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":70,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"a807c635-da04-4567-afca-2f09a50389b4","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":70,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"a56f642d-1da4-4c7d-8e15-637000aa2269","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by property","page_number":70,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"77e1a085-15cf-4c8e-91cd-7d26107a5542","block_type":"box","text":"type or in certain other respects, the Fund may be subject to certain of the foregoing risks to a greater extent.","page_number":70,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"f10641b0-50c0-44f7-94e8-67879ddab89a","block_type":"box","text":"Investments by a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":70,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"7e6bf234-5c71-4690-ae06-bee74b2bcb14","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":70,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"30f30316-282c-483e-92e2-f4a12a30b99e","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real property acquired as a result","page_number":70,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"9ae089b0-e903-4f9d-8b3b-79dd1e4cf00f","block_type":"box","text":"of a default on securities the Fund owns, the receipt of such income may adversely affect the Fund’s ability to retain","page_number":70,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"d6c3d6b5-e5e0-4bbe-bd45-9ce9e30b8041","block_type":"box","text":"its tax status as a regulated investment company because of certain income source requirements applicable to","page_number":70,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"ad11f4b7-8656-4c74-b379-dba91a121822","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":70,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"00eb9b1a-fe35-4309-a2d1-ad6d5f05c6ce","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":70,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"72d16909-47fe-4864-9ef2-30e67c3acfc7","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":70,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"f03dcfac-474b-4e97-80e8-b4e338010db4","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":70,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"8c1b1614-c340-4057-b4d8-c9382596ffc6","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":70,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"fe0f80a8-82a9-49f2-8c26-a91370e0d058","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":70,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"bec8a4c1-59e5-42e7-b3eb-b3a5ad7ea8c4","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":70,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"1e9b84b3-dc5c-4b00-93c3-a08d7eb92c08","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":70,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"7c0c566b-2f01-47e7-976c-4e0b4d8fe35b","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":70,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"48701331-6258-49fb-9b0c-041a58e71ef2","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":70,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"56235979-80cd-4fe7-81fe-4cc7ea7b3707","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":70,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"07950891-970b-4e21-a4e8-ed45e4dce593","block_type":"box","text":"result, the disposition by a Fund of portfolio securities to meet redemptions or otherwise may require the Fund to","page_number":70,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"7defd226-e18b-4ed1-8aa5-5bb12efb26d3","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":70,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"c30d514e-8796-4677-a4c4-85b12226dafd","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":70,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"ab2389c7-36d3-429d-bf6f-2886aa616d29","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":70,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"7f8ecec2-8172-4ae4-b804-80c6e2ab7251","block_type":"box","text":"investment results. Careful initial selection is particularly important in this area as many new enterprises have","page_number":70,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"c5985c82-f58a-4009-a2b3-1f78c54893ef","block_type":"box","text":"promise but lack certain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":70,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"7d09ea60-d9d2-436d-b8a7-ec6c9cc37e9a","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":70,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"4cdee036-ecd2-48c5-92c7-37b0ecb2c6bc","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into significant","page_number":70,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"78a7d783-96bc-45b7-9f47-ca23036a67d6","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":70,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"a74b9a5b-6252-4b75-8e3a-dcc255c8ad34","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":70,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"6e0525f6-6420-417f-b466-9afcab053da0","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":70,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"80c7cddd-b67c-464d-8cf3-9faa5da26c44","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying stages of their","page_number":70,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"a0f1dfa5-e1a1-46ce-bdf7-f585d09f9857","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":70,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"186b88ca-212f-4f25-9892-adb3b415ac10","block_type":"box","text":"cycles.","page_number":70,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"4cf6d586-2280-46a5-b88a-2ed7b71ec5b0","block_type":"box","text":"Tracking Stocks","page_number":70,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"93b04570-1c4c-4c71-b3f2-ab29d32d3be9","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":70,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"560bf9f8-0e67-427d-94d7-d4e68614badf","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the performance of such","page_number":70,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"6731ac8b-8eb6-4547-a196-88883b4ab98d","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":70,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"c1ee8eb4-63cc-4b3d-8cc0-c272338ab12d","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":70,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"c68fc95f-d4ed-4e56-bd31-c75d2a28a34c","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":70,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"6f87710d-af9c-4213-b050-7fe06064b298","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":70,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"db6c1e58-cde5-4376-b9b9-8af982c22111","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes representing","page_number":70,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"6f7a627f-626c-4b9e-9994-af1e35a3cfdf","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":70,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"059752d2-7517-4d5a-bdd3-58b3bc484e93","block_type":"box","text":"II-27","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fe6d769c-1f68-4fa0-a0f9-76b42fbfec08","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":70,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"80e2a602-af34-42cd-8d3b-818d2034dcc2","block_type":"box","text":"are based on the performance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":71,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"7ffb57de-5d70-4e6a-bb87-6aa06086d628","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":71,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"b846da1b-2ecc-4596-a0a4-00041dacb8ce","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the performance","page_number":71,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"29168011-b6e9-4921-9a81-f3bc3b7972de","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus certain fees. Unlike","page_number":71,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"15221981-c2ec-4e25-9fa9-8fb53e53ebab","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":71,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"cd4f50e6-a6f8-4c6e-b5d9-f22255b39d95","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":71,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"6eee46b8-9209-4924-81a7-51d61e00eb26","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":71,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"ca872ab2-044e-49d7-8240-d6cf665c99c0","block_type":"box","text":"performance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":71,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"89d0720b-0664-42e2-a8a5-437c9388abef","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":71,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"f3e38ad1-b49d-4243-b190-47368710dbfd","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":71,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"887cfaa2-dfd8-4021-81c5-1c212205513c","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its proportionate share of any fees and expenses borne by the","page_number":71,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"f38a6d43-4c54-419a-bb87-b0eafeb09b6b","block_type":"box","text":"ETN.","page_number":71,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"199c842a-7a74-4856-be44-e41b82a12148","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference instrument.","page_number":71,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"6c7989e8-3342-432e-94fa-3f61f526fec5","block_type":"box","text":"ETNs also incur certain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":71,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"2b834ecd-c8e5-4959-b097-f568b1753dbe","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":71,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"0af25209-f89c-4c29-a14a-09c65872666d","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":71,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"d1d28247-7c41-4983-af89-fa2e9457740a","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":71,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"9d1b5bd2-ed86-4890-873c-75d9a639f2a5","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":71,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"ad0e6e17-e9e2-4bb3-8af1-74904a43ae4a","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":71,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"ee21ab6b-0959-40d0-90e3-77bde4eea8d7","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":71,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"133cb318-8364-4c51-9f17-5cb804ee5425","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":71,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"d67a77ed-6d7a-48d0-8e14-a8026408b08a","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":71,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"39ab01b0-60b1-4767-884b-b6aa0ea8fd61","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":71,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"54010166-cefe-483d-8604-364e1af4433b","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":71,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"de15bc8f-6652-4122-be59-e9ba7d4497ab","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":71,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"264468d2-7cad-410b-9bd1-bf3113a13f5f","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":71,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"de8dd3a4-e11d-4dfc-8828-dbce107aeb03","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":71,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"d97189fb-66a4-4d8c-a43a-0807428ce22c","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a court may not","page_number":71,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"03af7dd4-c71b-4df4-8801-92b3779ca049","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":71,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"30f2bd4e-c8ba-4c18-b7f9-d7af7b4b1b91","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":71,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"a3779aef-55ab-4263-bd41-2d41593b212b","block_type":"box","text":"Foreign Investments.","page_number":71,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"d2395d56-6031-4f1d-8c07-52d9aa5b03b9","block_type":"box","text":"Foreign Investment Risks.","page_number":71,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"2e2e90a2-f0f4-4b7e-b35e-fe8c37cf7b26","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from issuers","page_number":71,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"9d2bcf67-dac6-4099-b87c-fc2b34caff99","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":71,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"522fc374-6dac-4903-9413-c02c2e0c0cf0","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":71,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"2afafdcf-9b5b-49a2-bab1-4c350469adf2","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":71,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"79d48484-7485-43b7-a8ad-de29c9b4288a","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be foreign","page_number":71,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"49fde9b0-9465-42ba-b4fe-34e12a48dc03","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":71,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"a7824c14-97c7-4480-a746-556a8fcc39ec","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":71,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"fd43e946-027c-41e8-aeb3-6d39bbc1b5a8","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":71,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"09047355-7b16-4d4e-8a44-224c62644d70","block_type":"box","text":"benchmark index.","page_number":71,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"7c3eaabc-d731-4ab7-a136-79d75ec8943b","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":71,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"adf4a20b-9093-401b-92b0-7cecae2c20a9","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":71,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"ff4ca9f7-a78a-4781-b8f7-24e78e2bd3ea","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":71,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"48ec8d01-85fd-4117-b889-15e179a425d1","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":71,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"b1a3d6fb-cc29-475a-a081-4ed06537b7eb","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":71,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"04d64ca2-4de6-48bd-ac67-0a7d761a47f0","block_type":"box","text":"securities and commercial paper. Such securities may include loan participations and assignments, convertible","page_number":71,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"0f20a4fc-1b02-4a24-8d66-0c43a3166fe1","block_type":"box","text":"securities and zero-coupon securities.","page_number":71,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"54365ebf-84cd-4cd1-9bae-137b6eb59556","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":71,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"f1cc18bd-fed4-4208-a51e-9e0eafcbfb52","block_type":"box","text":"taxes.","page_number":71,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"67b9d97b-51eb-4780-8b48-6c37078c2cbb","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":71,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"76bca96e-2877-4302-a942-5352906d7078","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":71,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"d24fccc2-c046-419b-8e6e-792ec4e2d602","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":71,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"043e692f-da0b-4327-b2fc-888d6038fd22","block_type":"box","text":"II-28","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dc769ab5-23da-4f46-a499-a3d3dd809bc3","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f8fe3ce6-2f44-4bc6-9449-0b8d3f63f9f7","block_type":"box","text":"underlying security (","page_number":72,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"7b6740cc-87ea-4ee6-8eab-15be847f3a79","block_type":"box","text":"i.e.","page_number":72,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"21b3b38e-52d4-47a2-b332-ac76bcdf694b","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":72,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"f5d7595b-47c0-4755-9441-7cbe184b46f0","block_type":"box","text":"Fund is likely to be greater where a large portion of the Fund’s underlying securities or other instruments trade on","page_number":72,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"037bb1a7-7050-47da-95b8-0390f6e9c697","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":72,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"36582202-da35-4537-ba31-236020901104","block_type":"box","text":"result in premiums or discounts to certain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":72,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"8b143a93-48c4-4e85-bcc3-e11920b568a9","block_type":"box","text":"Foreign Market Risk.","page_number":72,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"af6f22f8-31ab-4611-b5fb-bf68789d048b","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":72,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"ec67cd9d-b482-442e-92f6-3a8f5a380cf6","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":72,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"fd9507c9-6687-4db2-936b-82e8a3f12b1a","block_type":"box","text":"always) performed differently from securities traded in the United States. However, such investments often involve","page_number":72,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"c65e3521-15f6-4096-92a3-f27aedb9c36b","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In particular, a Fund","page_number":72,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"0d7b21b5-1342-47ef-bda7-0f0674b9a8f2","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":72,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"6865528c-c6d2-400a-998b-7ea3db81ba8f","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":72,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"bed9522e-270e-4c11-9461-980888a65cea","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":72,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"076f3674-c8fd-4f20-a557-d85b9154f96f","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":72,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"caae2092-3740-486c-b908-6bd86884de7b","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":72,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"74211bda-a72d-477b-92c5-53f5419468c6","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of certain countries, or the","page_number":72,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"5fadcd1f-7405-4322-81e6-d518a5ea7e1c","block_type":"box","text":"U.S. Government with respect to certain countries, prohibiting or imposing substantial restrictions through capital","page_number":72,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"f6d9e1fb-6051-4723-9267-197c842cbb50","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or certain industries in those countries. Capital","page_number":72,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"d1a1f185-cb16-4e0d-9ee2-71ce48bbd41b","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":72,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"defb47c0-a454-47b0-a8ab-3cd198b58271","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":72,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"995e1cf0-b79e-45be-9bf2-f7fd709bb67a","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":72,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"e7ab219f-81ad-4b2c-bb48-9a7fd856f515","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":72,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"1b0b2cea-5d92-422e-a9c0-c927f988c22b","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":72,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"fb5b9fd3-e8a3-4682-8199-adb5cd8f3e7e","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":72,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"7fac79a6-1d8d-449f-848c-24b5339c3532","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":72,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"3f172f7d-e2fb-437f-8b28-82a2461fd9e5","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign courts, and political and social","page_number":72,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"ba4052b7-5b28-4c18-9183-3ac705237969","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":72,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"0baa3779-287c-4896-a448-ba5732d699d9","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in certain","page_number":72,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"9c0159ce-3a19-4664-b7af-be7fae65fd3a","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":72,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"ca5d5d1f-a7bb-4cf6-a9f3-0deda4d6b1b9","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":72,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"e1bf578d-d44c-495e-bf94-8cd7ab046a2b","block_type":"box","text":"or abroad could result in appreciation or depreciation of portfolio securities and could favorably or adversely affect a","page_number":72,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"b7f436ca-bb16-4e4e-9a5a-219e75ffc95f","block_type":"box","text":"Fund’s operations.","page_number":72,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"e2aa2cc9-6e69-425f-9612-9025d5d633ee","block_type":"box","text":"Foreign Economy Risk.","page_number":72,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"5281f221-1c84-42bf-b061-939605dcc513","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with that of the","page_number":72,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"a5124cbc-724f-46b4-b267-b965043c92f9","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":72,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"7760e013-4551-4ff7-8f44-b09b1384da25","block_type":"box","text":"and balance of payments position. Certain such economies may rely heavily on particular industries or foreign capital","page_number":72,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"f534c026-4200-4f2d-8f87-902ed833d342","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular","page_number":72,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"cb816e28-94f6-4066-8799-b5c3516d808e","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":72,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"bf4f74e8-14c1-4aa1-9fa8-b75169206c80","block_type":"box","text":"measures.","page_number":72,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"fe5fcc3c-0d2f-439b-89e6-ef6cf2c4af20","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":72,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"7af18d33-f7f4-46d1-9e44-d985c42568d1","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":72,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"dcc48019-50ee-4a4d-85f9-41d1765ffafc","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":72,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"8e159818-48b6-4942-b523-1234b9a59384","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":72,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"287d5c09-ab65-47b9-a678-a1795a4e9fe2","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is worth fewer U.S.","page_number":72,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"e691b96f-e6bd-404c-9b85-79f5c77cde8a","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":72,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"19f057de-5e38-4a42-8605-90c3ceea44ed","block_type":"box","text":"that currency gains value because the currency is worth more U.S. dollars. This risk, generally known as “currency","page_number":72,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"82cc7ed2-fd16-4782-aed2-e6d16fd7b841","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":72,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"26be0f57-94cf-4966-bb80-4292788449cf","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":72,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"d457dfcf-efd8-439e-9050-1b8185be173f","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":72,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"e673d73d-91dd-4c5f-a322-0e23699a61e5","block_type":"box","text":"United States or abroad.","page_number":72,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"eca83c4a-dab5-445c-a437-c01a0ba8df48","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":72,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"e0b3d37e-3e37-4615-8bbd-46a931df89ff","block_type":"box","text":"Many foreign governments supervise and","page_number":72,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"dbc05da0-aa91-4ce4-b4da-59b9f4645080","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":72,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"eb168a4d-871d-4324-98db-3eee8d0a9ce9","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":72,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"9abb2de0-0be5-4c31-952e-a4fddb71d666","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":72,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"35406b59-7e7e-4e23-9f9b-d42c9ca09eeb","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":72,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"63c774a5-885b-447c-aa3b-ac37171ff989","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":72,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"96f527a1-dd42-4b8d-a7a7-091409800f77","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":72,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"0d14bf4b-7d20-4e02-94fd-1f63600b0476","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":72,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"2e264c75-4176-44bc-9b3f-ba054eef8ac7","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":72,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"37cf9712-a8b4-48de-962d-0dcf76edbe0c","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":72,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"6aa1c63c-6f96-49d6-a5ab-c178dd4b1159","block_type":"box","text":"II-29","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"51cbc5f0-e9d5-4648-bc6a-2e049dabb153","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8db29a10-785c-4610-8442-c9ee00746ff0","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":73,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"65d50110-a498-4140-9503-42a6208062ae","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":73,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"4f1e23a3-3619-4c2c-9167-a292364881ad","block_type":"box","text":"investments.","page_number":73,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"dc1b08c7-7bca-4259-a981-4bdcb4a67a55","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":73,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"4a0daece-e7b7-478a-ad61-1626ae628e9c","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":73,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"ddcc1849-1e9d-4576-92af-f15a1b43fc17","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":73,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"c03f682f-cc1f-40e3-991b-fea38a0eacfc","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":73,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"0bc41bc6-7da9-46c6-b6ad-9be18166236d","block_type":"box","text":"their operations. Also, the laws of certain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":73,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"6efe24ef-2e31-46d6-9c85-b5b44c1a7e0e","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":73,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"ad544f3f-44fa-48d7-b0a4-671a67a64822","block_type":"box","text":"for a Fund to buy, sell and hold securities in certain foreign markets than in the United States. The increased","page_number":73,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"21593083-a498-46b8-a03e-8e1035ea6495","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":73,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"26d2d923-d95d-4506-8012-ac7416b59be3","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":73,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"b0979c33-fbd5-4419-97bd-3f2c3520483d","block_type":"box","text":"States.","page_number":73,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"f4df3655-0a99-446b-aec0-a91f67078a25","block_type":"box","text":"Publicly Available Information.","page_number":73,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"d998d705-d7b9-4058-8cad-06490bf493b1","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":73,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"48b9f3c5-1e20-41c0-8b87-3b4cd94326f1","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":73,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"9d41b10d-9968-4a11-ac2e-4bf9f3de64e1","block_type":"box","text":"accounting and financial reporting requirements applicable to issuers in the United States. While the volume of","page_number":73,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"435efbe3-893b-4d61-80a8-e2afd451f3c0","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":73,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"4d579936-a4cb-4434-88ce-3f7c92a7505f","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":73,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"31cbd1b9-5814-487c-9d54-598aa4070303","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":73,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"fe1351ed-8be9-4eeb-95c1-56dd23392f34","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":73,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"383ad65c-e891-4e58-9848-d4f97684d0e1","block_type":"box","text":"United States.","page_number":73,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"78f2cbb0-7124-4d35-8f8b-241eb3e1b294","block_type":"box","text":"Settlement Risk.","page_number":73,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"87550df7-2009-4d43-be93-ed08fe35f198","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly from those","page_number":73,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"e8050c2e-43bf-4073-8c70-5d0d7d20e291","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":73,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"58ba838c-6551-48a4-9d6b-a92e730c48c6","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve certain risks (such as","page_number":73,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"17b847a1-8dcb-4713-b7c6-e30343d9bb32","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":73,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"8a055e80-7a28-4f67-91c8-930fbf734dcb","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":73,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"6ede3bbb-0d23-4d04-a3bf-a94cf86359c2","block_type":"box","text":"risk of delayed settlements or losses of security certificates in markets that still rely on physical settlement.","page_number":73,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"ee257973-ce13-45f0-be0a-76c4c2f0da1d","block_type":"box","text":"Settlements in certain foreign countries at times have not kept pace with the number of securities transactions;","page_number":73,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"46613ed0-a0e5-45be-9284-95c642a9cdf8","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":73,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"ef715b8d-ddd0-43ac-8472-0fa85f6556ab","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment opportunities and certain of its assets may be","page_number":73,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"13225309-1869-4192-928f-a94e53579e6f","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":73,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"ec6416a8-2ade-40aa-8407-5e9026c59749","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":73,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"2c3928c0-890c-4c83-9dd1-b285a98bbe32","block_type":"box","text":"another party, the Fund could be liable to that party for any losses incurred.","page_number":73,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"369f30c0-46bc-4d04-a609-fc8361329d2a","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing claims may","page_number":73,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"c787e147-2a18-4448-b924-0270a9e3c158","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":73,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"9e00cd38-4fdd-4b29-b1f8-c33f8ef6064b","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":73,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"d545e322-ccf0-4994-9155-357dc808b31a","block_type":"box","text":"Sovereign Debt.","page_number":73,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"79ef815f-d0b2-4f0c-bc7a-eef977f21288","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":73,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"b60b107c-43af-4057-84b6-7f52ab9fa16a","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":73,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"30178d38-a739-429e-a87b-f2bff13c946d","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":73,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"9770174a-4425-4adb-a867-4a2e9d94d497","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":73,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"96437924-b42f-4378-a815-c8ffad63cadb","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":73,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"99e45a16-b14d-4a95-8b6f-16f1f886004c","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":73,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"c8499df6-8e09-411a-b2e7-a5e3a9eb4fd6","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":73,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"77365ee9-a966-442b-9816-ebe33f281458","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":73,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"f5a65d95-9b89-4362-beb7-8fce1d6349b2","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and","page_number":73,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"3bbae4bf-4c1e-4c5c-889f-a6ef8b872c93","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":73,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"4495dc3d-0950-4d14-bb0c-abd5c0e16f37","block_type":"box","text":"economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":73,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"b0eb8e0e-391b-4bf6-a556-6bab84c5cf3a","block_type":"box","text":"achieve such levels of economic performance or repay principal or interest when due may result in the cancellation of","page_number":73,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"f6c021fd-0c48-4582-8f9e-770ec9af9ce9","block_type":"box","text":"such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s","page_number":73,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"73ea2e1c-9a16-498c-8f70-c17015162c3f","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":73,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"13da9d88-9e6e-403b-9d6d-c05cd4a5e4bb","block_type":"box","text":"debt.","page_number":73,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"f9e51222-f678-4a34-91fd-1df09cb90a25","block_type":"box","text":"Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to extend further","page_number":73,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"3bf687ee-4869-40e0-bb6d-a2a2d3ce1971","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":73,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"51a7584c-797e-4e70-b3f1-a853f4372877","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":73,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"28ca900a-226f-44ce-ae40-7957d4fbaf6a","block_type":"box","text":"II-30","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f6e63875-f571-41a0-9565-4db72aac146e","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9afabc03-ef76-4d60-aa5e-8bf2c50acdc0","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":74,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"41875162-c160-4aed-a8a5-080f5c1324d4","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":74,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"f9c28249-2347-4f97-93d8-3e0acaaefa23","block_type":"box","text":"interest income (if any) received from issuers in certain countries and capital gains on the disposition of stocks or","page_number":74,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"1418520b-93ad-4da7-8c39-e8639a563388","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":74,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"c4137596-4e62-4bfe-899d-00b4fe48872d","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":74,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"41f406ce-cd8a-495b-8d9b-aec67495578a","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":74,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"49618281-1bb9-4a61-a2f2-08e001c118e5","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":74,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"cbc8d608-b130-4218-8c51-b20728a27ea2","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":74,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"a33d58a3-2915-48ae-a03f-d537460ce131","block_type":"box","text":"down partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":74,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"4aec8521-cc38-4c69-826e-6c367272f664","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":74,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"ea9d87fc-a798-4934-abaf-779685738513","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":74,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"90cd8c26-3b77-4fc6-8e3d-099748b8c711","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":74,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"ef36eb06-acf1-40cd-a390-05a61d4ee18a","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":74,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"0b6e51d0-2610-4bd4-a41c-9c875632dec1","block_type":"box","text":"in the Fund’s net asset value.","page_number":74,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"119c3b75-42ab-4c14-85ad-7d04207d92bb","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":74,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"c1bf4ac5-848f-4c9e-8925-623c47631d10","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":74,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"8b8a812b-048d-4498-a609-167d4e0a999b","block_type":"box","text":"trading partner of, or foreign investor in, certain countries in which a Fund may invest. As a result, economic","page_number":74,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"0f02728d-66b5-49dd-b590-9325826ecb32","block_type":"box","text":"conditions of such countries may be particularly affected by changes in the U.S. economy. A decrease in U.S. imports","page_number":74,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"76eef41c-8ddb-4366-88d4-68e7f6184d95","block_type":"box","text":"or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":74,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"a651a6a7-85b3-45f8-abf5-66163ea0943d","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":74,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"ab110657-d743-4d6d-b1e7-3bded95723cd","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":74,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"dbfec144-5bf2-4578-b0cd-593b82d8a449","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":74,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"89c98147-332a-4053-a066-c05574e48c26","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":74,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"a538880f-e493-46be-ac40-c540a4d7814c","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":74,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"78b955da-f44b-473c-a5b0-c82c144f5aa1","block_type":"box","text":"allies, such as certain European countries, and historical adversaries, such as North Korea, Iran, China and Russia.","page_number":74,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"77e46ca3-d650-4434-af4d-e52da68b8695","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":74,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"72e9f8de-e0c7-4e30-8e78-622213ba23b0","block_type":"box","text":"United States for trade. 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If these","page_number":74,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"9de32cf9-e6c2-4e15-9a84-df70b5103ef4","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":74,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"15bbc747-c54d-4bf0-9ee5-01a7f7f7573c","block_type":"box","text":"Fund may invest.","page_number":74,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"996987c7-56ac-4487-8e2b-0f48a1f60254","block_type":"box","text":"Funding Agreements.","page_number":74,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"a00a7e8e-351d-4b0a-92f6-256d18e87f0a","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":74,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"bc4ae448-5e29-448a-a7ba-e4e0934fa10d","block_type":"box","text":"agreements. 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Generally, the guarantor of a security (often an affiliate of the issuer) will fulfill an issuer’s","page_number":74,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"d13c9cd6-352a-444c-bc8a-3c8a31e6c17b","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":74,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"09c8abbc-c03f-4b32-ade0-69b414798938","block_type":"box","text":"Illiquid Investments.","page_number":74,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"9e75609a-9159-4744-8d7b-66eea79be595","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":74,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"7e58f0ec-3750-45c7-81bb-17c1e4875516","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":74,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"e7db2fa4-b68d-4fa7-a8c4-c42923ce452d","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":74,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"19fc1d21-ccc1-4d4d-ad2d-0472f8709dd9","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":74,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"3d6dace2-0fb6-4b13-bfbe-2d396db7d828","block_type":"box","text":"investments may become illiquid after purchase by a Fund, particularly during periods of market turmoil. There can be","page_number":74,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"8c0671ed-0fa1-45bd-af9f-54e4bd797e0f","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":74,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"eef36cec-b7ee-418b-bd5d-fc4edc6d8dc8","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":74,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"8da70cdc-75fa-4801-867b-6132ad83da1d","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":74,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"cc47cc97-d1db-424e-bcdc-b215341ba7aa","block_type":"box","text":"the Fund because it may be difficult to sell the illiquid investments at an advantageous time or price. 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If illiquid","page_number":74,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"da7020ed-5856-4b05-b27d-d22a428cfa1f","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":74,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"6fa0ed99-66d9-4ee1-a1bc-9417bc5f1d85","block_type":"box","text":"defined below) will require that certain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":74,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"9aa82056-88a4-4347-a265-69b109992334","block_type":"box","text":"comparable liquid investments. 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The Manager will make investment changes to a Fund’s portfolio to accommodate cash flow","page_number":75,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"5e48f508-ef75-4239-96c7-ec6438e631f4","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. 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Finally, since each Fund seeks to","page_number":75,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"ee658101-12e9-4152-9951-ba744823459e","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":75,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"44b6a4c0-6368-421a-8465-62f7ea96cbdf","block_type":"box","text":"particular security as an investment.","page_number":75,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"3cca7f91-6568-42bd-ad4e-d0f6203d222b","block_type":"box","text":"Tracking Error Risk","page_number":75,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"afad1602-12dc-45ce-a294-555bda183dd5","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s performance","page_number":75,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"14e524a8-275f-4525-8644-b5dc694d4b1c","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":75,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"38024746-d029-454e-8fbf-a290eb822a4d","block_type":"box","text":"instruments held in the Fund’s portfolio and those included in the Underlying Index, pricing differences (including, as","page_number":75,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"dedf12a8-baca-4ec9-8424-7875e412a559","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":75,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"d7cce9c6-13ee-492f-826f-7b488f65ed68","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":75,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"b07f949c-aa28-4bbf-87d7-bb376b47ecba","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":75,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"2ea80d13-e343-4b9d-a4a9-d1a19ce1a695","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, portfolio transactions carried out to","page_number":75,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"a96e67c4-f847-4de8-b908-249ef65d57c6","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":75,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"6b66f849-bb79-433e-b005-fb3fa7b25a75","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":75,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"cc6f2eea-106e-463c-b053-1634649d4c65","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":75,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"bc0a5de8-53d1-4b48-ab4d-720a169254ff","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":75,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"3efdc742-4dda-4291-ba28-dfba07e181df","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":75,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"feae103d-12b5-4482-951f-1c49d770ab2e","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":75,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"7cbc570e-ceb6-42a4-994c-58bd0f8c21f6","block_type":"box","text":"price growth that does not appear to be supported by publicly available information on the business and assets of","page_number":75,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"19f5af66-ba2d-40ab-abf5-f9f9e52922ba","block_type":"box","text":"the issuer, unusual or significant short interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":75,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"f2981e29-ff6f-4324-b239-549bfab5e446","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). 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If the securities continue to be included in the index, the Manager may underweight or","page_number":75,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"b2cbc19a-0858-4553-a2a8-7494be935f54","block_type":"box","text":"exclude such securities from a Fund’s portfolio and, if it does so, such Fund will be subject to increased tracking","page_number":75,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"ab02c94b-7459-44fd-aa2e-d18a11e0e2d8","block_type":"box","text":"error due to the divergence in the securities included in its portfolio from its underlying index. 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BofA is","page_number":77,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"b4d81907-da88-40b5-a6ce-6d1ea6aa93f3","block_type":"box","text":"not the issuer or producer of the ICE BofA Indices, and its name is a trademark and service mark of its owner used","page_number":77,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"50f2132b-fd7d-465c-95ca-6765db5490b1","block_type":"box","text":"under license. Neither ICE nor BofA is responsible for or has reviewed any Fund nor any associated literature or","page_number":77,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"c94b7f29-f813-4036-835c-be9c9b66fbad","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":77,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"a746499b-814b-4283-8b78-3d567994eeda","block_type":"box","text":"completeness, or otherwise.","page_number":77,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"3491e959-70fb-45c4-986b-88560b2be82b","block_type":"box","text":"ICE reserves the right, at any time and without notice, to alter, amend, terminate or in any way change an ICE","page_number":77,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"8aea39a5-3f99-4dd3-9ae7-4bc4c54079fa","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any particular Fund or its participants or any other product or","page_number":77,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"934586c8-66a7-425e-83e2-2e954e2cc8a1","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":77,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"5667430d-6aad-42f7-8328-085e30233eb2","block_type":"box","text":"Indexed and Inverse Securities.","page_number":77,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"7ebfddb3-540a-4de2-83f1-ee74aa964bcc","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":77,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"43a566e6-1a19-40f6-98cc-af9e299549be","block_type":"box","text":"particular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":77,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"30e3362b-4b95-4466-80ff-e57900c2f8af","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of certain securities also may be based on the","page_number":77,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"7ccab80b-3e8c-4da6-9af9-f422c0826571","block_type":"box","text":"value of the index. To the extent a Fund invests in these types of securities, the Fund’s return on such securities will","page_number":77,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"38a16938-21d9-4f01-bcf5-4d728b7e7406","block_type":"box","text":"be subject to risk with respect to the value of the particular index: that is, if the value of the index falls, the value of","page_number":77,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"709045ac-b76c-440a-87e1-b1d0ec8dc3a8","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on certain securities may also be","page_number":77,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"b8ae8655-412c-4f64-b286-64baa4c162b6","block_type":"box","text":"based on relative changes among particular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":77,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"b98ed857-7162-444e-b31d-e056c58b73e0","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":77,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"3f00989f-354f-4fc4-8744-e23326bb37ad","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a short-term tax-exempt interest rate index). A","page_number":77,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"81994cdf-6ccd-4d49-8f64-9ef5c105a8d1","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":77,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"412f76df-7336-471a-bd32-83ff71d2c7a9","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":77,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"6f6e6fad-887e-4cb7-97ec-97d07e1d0b86","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":77,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"96f8b7bf-30fa-4775-a83a-b9e7511a6ad1","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":77,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"15f12b26-927e-4d8a-b6e3-139182ebff0a","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":77,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"e48938d0-4a89-44dd-8652-d520a4de4437","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":77,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"9e1cd81c-1915-44b6-927e-8f74d2c0ff25","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shorter-term","page_number":77,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"95914cac-605e-46eb-b791-c4990d02911c","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Certain investments in such","page_number":77,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"a6a04968-3ea8-4453-bf8d-4490328b731f","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":77,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"465516d2-ca2a-4870-8d3c-17715e0eefb7","block_type":"box","text":"portfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":77,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"d734d8ca-d407-4b23-9b25-c29290c1402e","block_type":"box","text":"portfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":77,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"d6bdcfbb-bf7c-4875-886f-4a0fa014067f","block_type":"box","text":"Fund may invest in indexed and inverse securities for hedging purposes or to seek to increase returns. 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Furthermore, where such a security","page_number":77,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"18e80c47-4f6c-4d72-b33d-10e86c9677a2","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":77,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"498eb250-20ae-496d-be25-567a26e964d3","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":77,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"4a41164f-9bc2-4c68-a529-e84231905931","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":77,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"1de465b7-a444-4dc3-a48d-85f2f0c89907","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":77,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"d2ab0c0e-4586-4d85-a1d2-c89cf45aa061","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when short-term interest rates increase and increase","page_number":77,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"f8d460de-4962-4359-8e3a-8c135866520c","block_type":"box","text":"when short-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":77,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"65f48e48-8d7c-43e0-9c29-1349ac525358","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":77,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"37efb13f-4696-4800-a360-c186d58bbbde","block_type":"box","text":"Inflation Risk.","page_number":77,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"15712ed4-23c9-459e-ad20-39990bc0b3e6","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":77,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"e9c808e2-de98-4c64-9766-88af7cf06466","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":77,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"4ec682a2-7b36-402b-bbe4-5d37f3df425f","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":77,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"070204c7-28e8-48b8-b627-e49e78f34a47","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":77,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"e1f9f88e-c337-4b71-a6e3-f3ef44d04950","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":77,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"a9855666-12cd-479c-a151-b7adb1a5661f","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":77,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"0d96b534-0e7e-4a10-8972-15b4956be6bb","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":77,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"90efa444-6feb-41dd-a22b-586cfd78ad08","block_type":"box","text":"the secondary market are affected by the performance of the stock market overall. If IPOs are brought to the market,","page_number":77,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"94a09b5b-65fe-4876-90df-8739dd022db1","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":77,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"95fa0d38-5f00-43d2-938a-d37a4a922db3","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":77,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"8f08b8f0-e8eb-4737-82b6-063579cad211","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":77,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"792bb38c-4ef0-4bd0-b2ce-a892f9bb1c2a","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a short","page_number":77,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"7bbd9d70-642a-47f1-b3e7-3b5b63e7db7a","block_type":"box","text":"period of time given possible price volatility. This may result in increased portfolio turnover and expenses, such as","page_number":77,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"f2b84a20-a008-41a2-90af-61df3aea8709","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":77,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"964f4617-fd57-4f69-9d3f-4cb8ec3d00f3","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":77,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"2cae0db9-367e-4b96-a6d0-bd51414bf2af","block_type":"box","text":"II-34","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"20314644-e00e-4a15-84ad-8572cfb2dac2","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5dec8982-97b2-49bd-897f-655c2818796b","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future performance. The investment performance of a","page_number":78,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"705f80ed-616e-41e2-8ead-472750ec8003","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":78,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"74e25888-3400-44e8-bcd1-7539d15deeae","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its performance will generally","page_number":78,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"b1ac2a95-d6ab-4550-a346-b3f1507149bc","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":78,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"b5d6d95b-e308-455a-b4ee-a4b196ad40fe","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":78,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"50b8a98d-2840-441d-8a4d-544d298b4223","block_type":"box","text":"be available for very limited periods.","page_number":78,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"b4f0f35e-41e8-46fd-8630-148babea80ae","block_type":"box","text":"Investment in Emerging Markets.","page_number":78,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"ad9704b7-f6ff-418f-9a57-e449829b9940","block_type":"box","text":"General.","page_number":78,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"b732bdc8-8c85-41bf-a1e9-c43a86823043","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":78,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"3483ba39-4715-4abc-b30f-ef2446b52a65","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":78,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"1a36d22b-c977-4bfb-a704-1654a9c0b6f1","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":78,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"e03818ae-30d4-4959-8c02-741c59f00cf9","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":78,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"c348f472-ca6a-45fc-a1b5-7e4dd2b2a199","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":78,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"010b28ce-4aa2-46c3-bfd1-2837db19cae3","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":78,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"17d86177-15ff-47be-887b-5a65abd878a7","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":78,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"93020fdb-c8e5-476f-b7d2-5090d55e630d","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain","page_number":78,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"9fe7ac6e-f4f1-4e19-a283-b2fcf98fc3e0","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":78,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"22689933-ff88-425e-89bd-e54268bbe308","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":78,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"040ea56b-ec4a-40c1-94ba-457771156e25","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncertain","page_number":78,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"35573343-1651-40c7-a123-7d24ca1e45fc","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":78,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"ebea96e1-82d4-4c3a-b074-fb43bdd31c50","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":78,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"50868b57-1b32-45a4-b0d5-2627d0317d09","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":78,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"399554da-e6c1-42e4-9d82-2fcd5be3ace6","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":78,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"7910bc52-15c2-40b8-84db-7b4f6c75fd61","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers or industries","page_number":78,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"c3fe9f11-e297-4397-bcda-80f225b6b40a","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":78,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"60820109-a1f4-48d4-bd2a-787a51b94ca5","block_type":"box","text":"private and foreign investments and private property. In addition to withholding taxes on investment income, some","page_number":78,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"f15dc35f-e416-40d7-a2d5-617f4a246fbe","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":78,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"00445b58-89ed-46ed-ab29-2483fb9fcd55","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":78,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"fcff3a59-7891-446a-bea3-9b7e9e1e1669","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":78,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"07123a97-c466-4ef2-9d0b-b570a48b7fa9","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":78,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"4826ccbf-f03f-4301-a95e-2301ff6d4f16","block_type":"box","text":"markets will continue to present viable investment opportunities for a Fund. In the past, governments of such nations","page_number":78,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"d41ddafb-e443-4234-a7d9-f6d4dd251825","block_type":"box","text":"have expropriated substantial amounts of private property, and most claims of the property owners have never been","page_number":78,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"cfb7d851-2c9d-4600-a3ab-443a7768bce3","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":78,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"a012ef9c-08cf-4fa8-ba65-0d50140cd667","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":78,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"1a4d2b31-93bd-4069-b878-38c8e0155b81","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":78,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"f3f582e0-0730-45f8-9e44-41265b08fa1c","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":78,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"9c7455c0-3f11-49f7-ac91-78448155fb22","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in certain of these countries and","page_number":78,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"2c4cb7fe-bf44-47ae-9cf9-a18da8819514","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":78,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"d953dbf0-cb5b-42b2-bcda-67917a6ed6e7","block_type":"box","text":"volatile than investments in more established markets.","page_number":78,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"825664d2-c9ac-4f1a-9fa7-64f487be8b72","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":78,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"08bf01de-bd2f-418e-bd88-0e941e17ce7a","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":78,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"3fc726cc-4f5d-4414-a886-315198b3f157","block_type":"box","text":"financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain","page_number":78,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"4b2e4880-2c23-424e-a545-0b243d063753","block_type":"box","text":"countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment","page_number":78,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"2daf31eb-7a48-4d3a-96af-dfe9f9724cb0","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":78,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"3c3ab711-2926-4e57-991c-905c7d07725f","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":78,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"044727a2-38f4-428d-82d4-5883b4c0d17e","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":78,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"0ffb73a9-733e-4083-91c8-327a01ae8c8b","block_type":"box","text":"acquisition or disposal of securities.","page_number":78,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"45b98d68-b4de-478f-bc00-344c9477931a","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":78,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"8609099e-00e6-4eeb-acba-2dc0f984a681","block_type":"box","text":"in developed markets, in part because a Fund will need to use brokers and counterparties that are less well","page_number":78,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"ee72c20f-9987-4f4f-9e0a-1aceb4e62c4c","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":78,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"0161cd90-eebd-4a78-b577-2d65f37e68ec","block_type":"box","text":"negligence, undue influence being exerted by the issuer or refusal to recognize ownership exists in some emerging","page_number":78,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"e8a5eca6-1673-48ac-82ec-dd9879e85dd1","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":78,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"d7411aeb-311c-453e-8b12-f9ca032824fb","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":78,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"80268655-e48e-4ae7-b79f-8a6e076eae8a","block_type":"box","text":"II-35","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"aa766849-2063-4b4f-9c07-8f625a69b53b","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"15920006-7843-40f8-8465-8c24e0ca04cf","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":79,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"fe35e73a-14fe-4c76-a817-3b22d1746bcb","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":79,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"849fa3e5-0436-409d-b0e9-e7a620e7f916","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":79,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"da6733ae-cb45-4ef3-8cbe-7b00ece5157a","block_type":"box","text":"characteristics of futures contracts. In addition, certain Funds may engage in foreign currency exchange transactions","page_number":79,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"64a4e784-e833-4980-8df4-3f46a67c3c8b","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":79,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"e5eaf483-d585-4b6e-b958-87ef049cf2bf","block_type":"box","text":"performance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":79,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"fcdb6910-5c7c-4e9b-92ed-8bb74d582aa2","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":79,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"9720103d-175f-4a5d-b9ca-2af6b3ded264","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":79,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"ac95b375-189d-4da2-b7cd-10fe3ad0c88d","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":79,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"30efd640-63e8-4ab0-ad99-6ae26947f39a","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to certain","page_number":79,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"51bdd51d-60c7-4798-8abe-1b4492683719","block_type":"box","text":"additional or specific risks. Certain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":79,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"6b9dd9f6-c5bf-4249-8dc7-ce8e02452186","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":79,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"d2719be1-6620-4f54-9a7e-dab968d27805","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":79,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"59d51531-3923-4549-a708-b021b1af6ee0","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":79,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"02b79521-e3bd-4ab5-88f7-fc1c674fedbe","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":79,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"f64a7a07-3e54-4d23-9020-1615f60b818b","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":79,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"b00402c5-b1a1-4049-be7e-81bb9babda4d","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":79,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"85dc0080-e878-4524-9167-085a31fe88fc","block_type":"box","text":"in potentially fewer investment opportunities for a Fund and may have an adverse impact on the investment","page_number":79,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"4cef7ab3-4f33-4ed9-a525-c9150169458a","block_type":"box","text":"performance of the Fund.","page_number":79,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"5d114202-0588-4c94-b44f-ddccfb876007","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":79,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"f0fff2dc-0438-4bd1-a755-e60e81ecf01c","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":79,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"61591ca1-1deb-40fe-be12-d251bb6cd2e7","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":79,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"d7f445be-ec79-4515-80d2-db5a86270c41","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":79,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"b6ed34c6-0363-4b60-80e3-d15edd0daf92","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":79,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"40ade6ff-dd53-47d2-b812-977625418cc4","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":79,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"7936f911-9b2e-4f1e-b912-20c2392f2590","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":79,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"1cbdda20-f9ca-4c17-bfe9-70ddf3175d0d","block_type":"box","text":"common to most such countries is that the economy is heavily export oriented and, accordingly, is dependent upon","page_number":79,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"25a6dd20-ca15-4c9b-a260-d3dfb365b3c1","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":79,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"27416da4-4256-404a-bca7-3e12bbb0972a","block_type":"box","text":"in certain countries, as do environmental problems. Certain economies also depend to a significant degree upon","page_number":79,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"c8d505c5-111c-4360-b667-1e7aea848e47","block_type":"box","text":"exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":79,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"b0be9e38-22af-43fb-adba-cb229f432f23","block_type":"box","text":"affected by a variety of factors.","page_number":79,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"3ebde873-04ce-4d3c-aabf-f8a4c78b3223","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":79,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"c7c4de70-9e29-4ffc-8902-ea618b6ef356","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":79,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"beccf742-51ad-436f-9c27-ba63234dd5e5","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":79,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"7ce14db0-39ca-4593-b794-e18f5bf6cac5","block_type":"box","text":"clear in certain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":79,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"24e11eb0-80a7-45ba-8089-153c7005f6bf","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":79,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"89ab73c1-d046-48ff-84c0-c4d06a315b73","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":79,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"bf54915c-9ee9-4072-a487-29c2053ac51d","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":79,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"79de7f33-808c-4c94-b040-368fc4b47a3d","block_type":"box","text":"substantial influence over many aspects of the private sector. In certain cases, the government owns or controls","page_number":79,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"2ad51d9f-799e-4f52-a792-f33f366c162c","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":79,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"480b1eab-fbac-4d70-831c-9920c75ac171","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":79,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"407d7323-13d7-48b6-ae24-f7b02d87d6c2","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s portfolio. In addition, economic","page_number":79,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"dd1e07a3-4cb9-4e75-b248-52aedeb5cb47","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":79,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"606cb380-2409-4ffc-b18a-3a7d3ee8e53a","block_type":"box","text":"nations.","page_number":79,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"ae970c1b-0632-44a8-959b-d78ea53c27c9","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":79,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"0f52ec29-c551-47bb-bfd5-f6d6f86813f2","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial reporting","page_number":79,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"2703d2e2-7bf2-489f-b3ef-5808c181f6f8","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":79,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"cb28a2f2-a9b1-4763-9b9b-e9c833424a0c","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":79,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"5649b673-ceb1-4a45-8421-3931625247ef","block_type":"box","text":"certain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":79,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"5eafeb19-b56e-4acf-b829-a9530a73be68","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for certain developing","page_number":79,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"ecc5c698-e0b3-4e3a-b27a-9d6862fa0e69","block_type":"box","text":"market Asia-Pacific companies.","page_number":79,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"62a58d27-6a87-4779-9003-9f4b88502a1e","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":79,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"eea54543-7f78-4ea4-98f8-3a646bdf8a82","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transportation and custody","page_number":79,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"863c962f-e44f-448c-8654-842e86da2b01","block_type":"box","text":"services for such securities outside such countries.","page_number":79,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"3b01c153-dce6-4a4d-bb4f-cbdf5919ee08","block_type":"box","text":"II-36","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d71d23b9-8b24-4dda-92f2-79ac14b285c3","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e2e6b77c-4286-415a-af54-300f0ffa47fd","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":80,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"74d2efc3-fc11-43bc-98a9-fec5a277f855","block_type":"box","text":"to commercial banks and foreign governments.","page_number":80,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"a546817d-ad2b-4532-bafe-29e33d6aed79","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":80,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"1febe42a-f945-4bee-8c4f-2bdfb5f14959","block_type":"box","text":"on a Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":80,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"73e842e5-8f47-4e87-91af-7020da8af2a4","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":80,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"29fa9004-2a1b-4525-a580-9d41fd498abd","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":80,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"386d3abc-a049-496b-848b-fa3a9dcf6841","block_type":"box","text":"practicable or appropriate to invest in a particular developing Asia-Pacific country. A Fund may invest in countries in","page_number":80,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"c9957f69-b983-443d-b4ec-05e087dbef75","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":80,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"41d47e99-d9d2-43ed-9b43-a6971b38df9b","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":80,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"79b825bd-6ee8-4fb0-a12a-75539f6a41c6","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":80,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"a568169d-5cbb-4153-ab63-f1f085eb2991","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign","page_number":80,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"a3f4b7a4-3ab3-4d0d-bc98-681bd2f92089","block_type":"box","text":"entities such as a Fund. As illustrations, certain countries may require governmental approval prior to investments by","page_number":80,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"85fc28d5-9c76-481d-bdca-191c146c8f4e","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a particular company or limit the investment","page_number":80,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"53f301ee-5562-4887-aaab-afcfaf4c27ec","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":80,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"bf5749b7-40bd-4e35-a482-bb9cdfb70a0a","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":80,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"8bda44cc-9feb-4020-852e-718e7db11754","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":80,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"caad4f49-a6c6-4c2d-83ff-bf0041ec521b","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":80,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"d8481e0a-79bc-47a8-95eb-f685e969dbd4","block_type":"box","text":"have an adverse effect on the value of such shares. Certain countries may restrict investment opportunities in","page_number":80,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"7a423e92-0166-40ff-a240-b3c10724358f","block_type":"box","text":"issuers or industries deemed important to national interests.","page_number":80,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"c0d90b69-7103-44f1-85a6-68a17c9d7e64","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific countries, as","page_number":80,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"1ed8271b-da50-400d-93dd-8239ac14ef0a","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":80,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"feb266af-7f99-4753-8d5f-3d9a7c28eaad","block_type":"box","text":"a Fund may be required in certain of such countries to invest initially through a local broker or other entity and then","page_number":80,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"3fa8aa58-6213-4478-91bc-9a5646561d2a","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":80,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"273d466c-4f8c-45ac-b14d-d48bbe5f7d33","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied certain of its rights as an investor,","page_number":80,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"d30834cf-e89e-4bb4-a831-4527af35788f","block_type":"box","text":"including rights as to dividends or to be made aware of certain corporate actions. There also may be instances where","page_number":80,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"41090103-71a0-4c5e-ad95-6f5e02362135","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":80,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"a450e762-2c74-42cc-8f96-c110cc5c5aac","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":80,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"d2702ea0-6d4b-44d2-8879-f77fd5799034","block_type":"box","text":"investment at that time.","page_number":80,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"5affcce6-4a95-4ebd-a7bb-c3a0fadaa89e","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate investment","page_number":80,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"06c0c63c-ff99-482f-b863-863b0c9f653a","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":80,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"581e1ab7-07a5-4b32-81cc-563e0e279c8a","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":80,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"74756f68-3be9-499e-ad02-4bb0a1714c1c","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that certain countries may impose currency","page_number":80,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"dab712db-c22b-4244-9d93-d06e819ce0d5","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":80,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"56123f20-53a9-4f81-b001-b523a091a514","block_type":"box","text":"that such restrictions have the effect of making certain investments illiquid, securities may not be available for sale","page_number":80,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"2fbcb61d-7a10-45e0-bbc4-768370804704","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s portfolio subject to","page_number":80,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"fe9e8768-168f-41d3-8d9c-2912119048c0","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the portion of the Fund’s assets","page_number":80,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"ec65a2d9-c535-4738-b1b7-96e90ee2374d","block_type":"box","text":"that may be used to meet redemptions may be further decreased. Even where there is no outright restriction on","page_number":80,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"03f8bf8a-a90b-4de9-9c02-884a902233eb","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect certain aspects of the operations of a Fund (for","page_number":80,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"4071c78f-f1b8-48f9-a595-6b198acadadd","block_type":"box","text":"example, if funds may be withdrawn only in certain currencies and/or only at an exchange rate established by the","page_number":80,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"bb214303-3ba4-4010-8dc9-6b0be0453ec7","block_type":"box","text":"government).","page_number":80,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"dccd0fa7-af60-4e41-87e6-cdcb5dd3ac50","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":80,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"3ecfb992-fb55-4df1-a5af-1162fce2a401","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":80,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"e03f3498-3764-40ac-ac18-36062a58eb9f","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":80,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"b956cf59-a4a2-49d3-b586-7ed4c973ee67","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in certain","page_number":80,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"e974b6c5-3658-42a6-a6c7-a2432f91629d","block_type":"box","text":"foreign banks and other financial institutions.","page_number":80,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"42adba22-d64b-40dd-b153-41c4b3d95cba","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":80,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"232621b8-9dec-4b29-9e89-35a56a0543f7","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":80,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"0f35296a-656d-445c-a6f2-ed936ce600d2","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private property rights and","page_number":80,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"6e16bae0-a065-4fc1-a152-28048008abaa","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":80,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"a808a7e0-55ed-4e7e-a86c-47293c63f7f3","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":80,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"03530d5c-c2a3-4638-b92c-d6e00b2b6b8d","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":80,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"9d725150-65c2-43d7-bc0a-f2c48c438b2c","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":80,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"e1dd8634-cf14-4a6d-8c2f-cd94b3831bec","block_type":"box","text":"certain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":80,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"1f6317a7-2181-423e-aaf0-f177b7d693b1","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":80,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"d89de1ac-fc6d-4b22-a0f5-58cb2c6243e6","block_type":"box","text":"II-37","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2a41275c-bcb8-4f08-acc4-a589d56d21ab","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6f4f6427-8560-416a-950a-a70915621623","block_type":"box","text":"little financial or accounting information available with respect to issuers located in certain emerging market","page_number":81,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"557f550b-a0e8-4889-b7df-fd7fc1517d41","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":81,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"e701749a-21fd-44ab-9cc7-77e12c05252e","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":81,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"dab12ad0-6a7a-48d2-8ff9-793325ae4125","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":81,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"1e88bcaf-bd3c-4944-bcd8-1e8a4b1c2135","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":81,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"b47caa17-d634-4657-b789-3cc6b1cd8920","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":81,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"6c988293-b5fd-4c44-bbaa-5a8ad495426e","block_type":"box","text":"foreign securities.","page_number":81,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"e2f11f71-c129-4ae1-b5bb-f01e7760f6cf","block_type":"box","text":"Risks of Investments in Russia.","page_number":81,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"6800e82b-0b1b-486e-8cd1-1f4bd20adbb0","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by companies","page_number":81,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"02df4367-b5e9-42e4-9a0f-2cec93eaa320","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":81,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"7832ab3b-6280-4d2e-bfb4-df120cc71aca","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":81,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"45b2a7dc-2e34-48be-8c38-fd66deb018e6","block_type":"box","text":"and a substantial portion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":81,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"3437c8b8-734e-4bc1-acd2-12f6d69884f2","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":81,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"64d7e6fb-1a0e-4207-afdb-2ef5ccdeb5b3","block_type":"box","text":"make obtaining accurate prices on portfolio securities from independent sources more difficult than in more","page_number":81,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"4b411377-3350-495e-9b64-69eae9b0a332","block_type":"box","text":"developed markets.","page_number":81,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"fa6e84e9-5361-48c2-82a0-471d42c339b9","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":81,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"dd116c6c-8356-4ca3-862e-cf90c314619f","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":81,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"9321fc94-1e04-4593-aacf-e14b37f66265","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":81,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"44009a34-a5a3-4ec5-932a-0a4f94fd0973","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":81,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"a02758c7-303f-4e56-b303-9037c147873e","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":81,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"bd083bfe-5b68-4348-887f-7cc18a8e5947","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":81,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"1f8a15c4-3ada-4a07-b049-62795f1c7f21","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":81,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"06c17d22-1544-440f-87bb-9d64e62571a0","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":81,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"023d4fe5-1148-4588-be87-aa321eb318c8","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":81,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"39d640ca-04f5-4b71-b053-33025cec0716","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":81,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"070c3510-07f2-4e05-b186-4938deb82608","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":81,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"076c6a85-3cae-46b5-a59e-2d36506acea8","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":81,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"b5e6d140-87cf-4f30-a157-92bd26fa8387","block_type":"box","text":"relating to title or corporate actions relating to its portfolio securities, it may be difficult for the Fund to enforce its","page_number":81,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"d188ff81-3c30-45f5-b76d-12f5400a14d0","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":81,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"daa174b0-18e7-45d9-9d09-1d2a244b289c","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":81,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"8a7c5428-469d-4ba7-b056-1ff098fb8c6c","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":81,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"e5ab0ef7-6c73-4d35-a0e4-fef1dc398c03","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military measures, as it","page_number":81,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"78c3c8fa-930d-4868-8bab-bc5ed8d67d01","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":81,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"22de1f53-8922-460b-86f1-13ac7576fa59","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":81,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"29004428-621f-4915-b1cc-3f18f55410f4","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":81,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"9ccd1b20-cae1-4626-aa60-be5d22c183f6","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":81,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"cd5af3f5-1005-4d8c-abab-2083aec5f5f9","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":81,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"0818561a-ddd3-4215-a017-735c7f2d6a82","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":81,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"57e12ea1-14df-4cab-b80d-50a0a3e8c469","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":81,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"63ef196f-08c1-4a19-b28a-2955b77dee07","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":81,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"17f88fde-acd9-4545-a783-474213d47455","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":81,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"7aa23801-1121-4342-a47e-e78248a5a1d6","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":81,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"ad1aadf3-9ff1-461a-8c00-475e9b8d80ea","block_type":"box","text":"threatened responses to such military action may also impact the markets for certain Russian commodities, such as","page_number":81,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"f15a3dad-51b1-40fb-9a62-a1e22793bd77","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":81,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"2496a045-3576-4e49-8139-08fc0ebd9517","block_type":"box","text":"sectors globally.","page_number":81,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"bd00fecd-aa29-49f3-8db5-c169b1a1dab2","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":81,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"3e1f52e1-1259-4e50-8479-fc72a4b1e62e","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions","page_number":81,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"d335affe-dc67-4503-88b9-8b0d16aca811","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including","page_number":81,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"42b159a9-ee19-4c0d-a8a9-442bd5c1eee7","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":81,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"dd920320-10c6-46b8-ad42-b0a31cde6df0","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":81,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"ba0d6013-1d53-461f-800e-099c8a4c6f6d","block_type":"box","text":"payments. These sanctions, or even the threat of further sanctions, may result in the decline of the value and","page_number":81,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"6896921c-d985-4061-84e9-1551baa3d730","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":81,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"94622e58-ea5a-4db6-bc53-920ecf335483","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":81,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"ac2d8926-1a3a-4e5c-9e97-cd6ae4eef75e","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":81,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"9d6cdaf8-ea84-4191-adea-c924a3dd28d1","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":81,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"7612a4ee-5714-44c1-b381-055036718144","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":81,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"ba13d746-0d28-445b-803e-b914d802df6c","block_type":"box","text":"II-38","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c549e2b8-2c18-43c3-9aef-9749af49f671","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e19dca00-7143-46b1-ab38-9a2f2aafea9a","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":82,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"8efd6c41-f4f1-4389-9360-e0ed9bafe374","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":82,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"fe831035-e84f-46c3-89f2-f537fe043184","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":82,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"b1064706-063d-407f-aeac-248f81355dd1","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":82,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"9edc8b86-2b74-489c-821c-56ce32583b60","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":82,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"686ffc97-e16e-4530-9cbf-d0cafb01d6d7","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":82,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"24b8858e-633b-4e01-b534-0716f0b1a495","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":82,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"49f27919-d20c-4dec-8afa-cef021a9f1b1","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":82,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"d58d942c-8511-4752-8783-13262de48f8c","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":82,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"7a1e8e1c-9d59-46d5-89cd-3a96f2a75edf","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":82,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"392bd0a1-b58b-4a80-978c-80a705fe8bc3","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":82,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"aaac550a-6236-4453-a309-7615a5aca057","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":82,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"f3852e07-e97d-4510-a2fb-587a885c9769","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":82,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"996e535f-be1b-4228-9e73-c84514e85e8b","block_type":"box","text":"of assets and property or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":82,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"ad4d1532-24fa-4e92-be9a-2becf85e8e15","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":82,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"8556415d-7ab2-4df9-9f57-18fd0f95d8e4","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":82,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"c899f19c-5014-4ae0-861d-c7c84ef7c9f1","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":82,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"e07aba95-cfec-473e-a8a8-81952fd2786e","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, certain entities and industries. Newly privatized","page_number":82,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"295e1333-c3b5-4ea7-aa9a-392ca7297a24","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":82,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"ec1c46ad-6fc2-42b0-b121-254d56637d4f","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":82,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"122a4ec9-d836-48e1-b3f3-4b9fad28df88","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":82,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"ddfa89e1-259d-4690-9682-2b7b92769538","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Further,","page_number":82,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"eea866c2-a541-4d33-9e9b-ae55514c59e1","block_type":"box","text":"under income tax laws imposed by the Department of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":82,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"361b2e16-353e-4682-a3f3-6b4c45dead7c","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":82,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"70452cdc-1783-4454-be61-f8c79c6bec21","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":82,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"571ee45f-3cad-47a6-81df-af8ecaa0fcee","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":82,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"9ed7992c-15d4-42d4-a593-e414ba6af288","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":82,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"16079afa-bee2-460e-b8b1-a7882c7a9e63","block_type":"box","text":"impacted.","page_number":82,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"986e97a4-9da5-4ccb-b68f-56e7ec9fc346","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":82,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"ecf37045-ecf2-4041-9a5e-310100c4a62a","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":82,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"84ad96c7-3f79-4671-956d-79eae1b65e72","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":82,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"1acbd49d-41e6-4afa-ae16-a2a79105ca48","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":82,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"fb18588f-cd09-4a5e-b34f-05f2dd81a9d7","block_type":"box","text":"Arabia has historically experienced strained relations with economic partners worldwide, including other countries in","page_number":82,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"02b01dd4-e339-491a-a87b-0f9310e749df","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":82,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"64a2bc9a-727a-45e5-9c81-2a308d3e5730","block_type":"box","text":"including terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":82,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"fba91d0c-bf1c-49ed-b94a-b7f548f9967f","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":82,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"83ffa385-72be-42e0-ab55-7d1adbed9707","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":82,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"f6683166-9b6f-4112-8846-c94315486c01","block_type":"box","text":"portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":82,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"f7412414-4b03-4622-afdc-9784d28ed9e4","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":82,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"4c0ad833-b9e4-4561-ba56-7c7673badff0","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":82,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"58ba76f2-04be-4607-841a-b966aa684efa","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":82,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"941e8c96-8201-46a9-90a9-74b8f2af8500","block_type":"box","text":"economy.","page_number":82,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"5f7e063d-bc1a-4531-94bb-208c35b14069","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":82,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"c4658263-a513-477a-8e6c-c6b7e9d86b03","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":82,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"7a84e4c4-119e-4bba-8177-d0711ffb4f78","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding the existence","page_number":82,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"50d08794-4d6e-42fc-8bb6-ab321289e4d1","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of certain Saudi Arabian","page_number":82,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"8e05dabf-cc15-49fc-bbd9-5aeef06a585a","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":82,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"c10a2211-3537-495d-b42d-6fb5bf5c3f37","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":82,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"2a7be14e-8264-463e-9f21-949cfeb85154","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":82,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"8d1adfa8-dd00-428e-87fc-164cb722e243","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":82,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"faf10c3f-969c-468f-8b86-60f1e20eb8da","block_type":"box","text":"typically the case for investment managers.","page_number":82,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"4c05ad38-9354-4029-a8b1-94445a7bb95e","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":82,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"b56c3f57-01a3-45d1-b744-84ce780f2c2f","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":82,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"88944cc5-998d-40d1-9abf-44ae8f467b6d","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":82,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"1ff69af0-ef61-4a0e-b304-1b10597efba5","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":82,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"3e49b856-acfb-40ab-99e9-d985c58ebcc4","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by certain groups in the","page_number":82,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"43cbb960-7d83-4452-839d-8ac06ceed7fa","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":82,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"e7915ef4-2a82-4ed0-b4fa-4c1e77ff5128","block_type":"box","text":"II-39","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fe78704e-ecdf-4f37-8e45-707beba451c0","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"545c4e96-b8ca-40ed-b2e9-fb9bfdd39252","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":83,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"0ae0e0d9-50e7-4bdf-916e-dccf59803af7","block_type":"box","text":"significant, and in some cases the most significant, trading partner of, or foreign investor in, Saudi Arabia. As a","page_number":83,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"f2caa750-b7d4-4c7a-807b-cdd5ae709a62","block_type":"box","text":"result, economic conditions of Saudi Arabia may be particularly affected by changes in the U.S. economy. A decrease","page_number":83,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"d7c52ad5-199c-4a07-9c75-9c1226064364","block_type":"box","text":"in U.S. imports or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":83,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"c76c7447-c543-472b-a12a-1e894331ec19","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":83,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"bedbf465-262b-46bf-a7d2-a52530b785c0","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in North Africa and the larger Middle","page_number":83,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"8a52547f-2003-4f48-9daf-2848e640e974","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":83,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"0b865ed9-aa15-437e-85df-510cf70bcd5b","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s portfolio.","page_number":83,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"ce468592-8b28-4ff8-bbbb-afad3497c696","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":83,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"99444b95-8b09-4ddd-b11d-b46729938009","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":83,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"62014d2d-78db-4e66-b38f-90125bfd5a1e","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":83,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"f3084f86-622d-4d82-9d5f-941f2f32449e","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":83,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"0b7fbef0-a831-40ac-b127-cfa2af80fe60","block_type":"box","text":"will be indirectly subject to those risks.","page_number":83,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"0072e5da-c34b-44f0-a328-a9b88131aef9","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":83,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"299507fa-94f5-4d1c-bfda-e2878d40e30e","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":83,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"6bb1bcbd-e60f-4b69-b467-73ba18240b5e","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":83,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"0b4b3dfc-4642-4996-8756-3ac49c09b134","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":83,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"c96753fd-05ae-4294-ae4d-d71db626bb41","block_type":"box","text":"on export of natural resources to key trading partners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":83,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"d6efd647-282c-4561-94b0-3151339c858a","block_type":"box","text":"key trading relationship that disrupts the production or export of natural resources will likely negatively affect the","page_number":83,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"3c8b9d29-e801-424a-8176-cb1e841a7c8f","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":83,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"e5c29cbe-2fd6-4848-a2f1-6f6776121e66","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":83,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"26afa04b-5d63-4fb2-b1ac-7a4d36c786af","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":83,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"0ef11746-3c2c-4fc4-9b0b-7b9bde12de6f","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues between the","page_number":83,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"4cb5dcc1-29b0-44f9-af3c-1747dd86aba1","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":83,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"4e77d022-51f9-4fad-93a5-4c0985003095","block_type":"box","text":"and sectoral sanctions, on certain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":83,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"42fbf7e4-3a1e-4179-be79-3dac167b25fc","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":83,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"379a1531-6229-436c-84de-6c9173efe255","block_type":"box","text":"against Venezuela in an effort to effect regime change. Military action, sanctions, or even the threat of further","page_number":83,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"19b4201c-b4f8-4d06-8851-114104e62af6","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":83,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"42ceecdc-aeff-4029-ae71-dc419df61aa1","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":83,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"0ee1b778-b6c4-476e-8344-0f4179ff49ac","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":83,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"4dc1932e-b9ab-4c5b-8271-5b8930ed8275","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":83,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"730ce42d-1dcf-4f25-9d77-df7056a7fa76","block_type":"box","text":"impact on a Fund’s investments.","page_number":83,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"ae73ac2b-f7c4-4a2e-a0e7-8d358dd556b6","block_type":"box","text":"Brady Bonds.","page_number":83,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"2a1ceb23-ac58-4403-9e5b-db785d9e6cde","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":83,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"805bf61c-59e0-4362-a944-5f3a5a149bd5","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":83,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"a3fba1c1-6da3-490c-a473-b9cc3e56aef9","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":83,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"191d1da7-6d69-477b-818c-b7d2f8ecb7fe","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":83,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"95316a42-d407-4976-8479-2a9e158eeac0","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":83,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"c1672469-0a9e-4f46-8b9e-87c8f12ecaba","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":83,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"5511fdaf-b30c-4cec-9f60-0d2aa1809fea","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":83,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"cdff27da-9cfb-442e-b131-efd9cb940432","block_type":"box","text":"2000s, certain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":83,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"63f4ad8d-5364-458a-a445-d6bada628bcc","block_type":"box","text":"Venezuela.","page_number":83,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"64b523fb-9ff0-4c6d-800a-b276608955e6","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":83,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"ef353d47-f751-41b4-8a23-316fc73d1808","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":83,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"e68c855e-c0b1-4224-8cfa-37df156ccb59","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":83,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"12e1e07f-72b8-400c-b2b8-3ac0ca51c45d","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":83,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"222d58c8-d916-4733-b8f9-80cc0ec2ea47","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":83,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"b3b46949-a529-4162-a72e-8b1330ed429d","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":83,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"183c4563-2158-41cd-91ef-938745f45282","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":83,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"d4b59ef3-ea2f-4f93-be51-b4e6960a5b70","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":83,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"2ba8591b-d5b1-47ee-bef6-be230b783e61","block_type":"box","text":"Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute","page_number":83,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"94a5792a-c40b-42ff-911e-1e4214b42e71","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":83,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"4daebaaf-ce3b-4e88-b545-bc9c6051f2fb","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":83,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"f9447287-dba8-4fd3-90b6-0d2616c14ae4","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":83,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"6da0588f-2ed2-452d-81c9-3e25f466920e","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":83,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"8a6e3007-c85b-442b-bd2e-1723b2cb00b9","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":83,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"8e26aa28-5ef1-4b7a-aab5-c27b89cd4c92","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":83,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"f18e0a1c-92ba-4a6c-958b-98123e6f0d2a","block_type":"box","text":"II-40","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"71bc59a7-b78e-43f2-ae10-028cd2b39721","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f74e04aa-ccdc-4b1b-9194-5bd7bff24b3c","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":84,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"beac9ce6-dd03-45c1-b339-1267783e87b3","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":84,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"f438d697-7abe-44b3-bbfc-a79d669d3a7b","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":84,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"e3fe1f6f-f3dc-4b37-ab41-4bc18f95bd35","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":84,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"220b6d25-917a-4b51-bc1e-d60291a8d028","block_type":"box","text":"China Investments Risk.","page_number":84,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"d9086705-3575-45a5-8067-c8e6de894628","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":84,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"ed1226a3-2b68-4e26-a700-07a3fcf66e9c","block_type":"box","text":"including certain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":84,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"a1eae69c-cee5-4539-9fb4-450c2e710316","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":84,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"413fa026-3c0c-4e35-9b2d-840133cbf988","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":84,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"1c1d8fb4-bf97-4d3e-8376-5610f22896b4","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":84,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"797ad954-2fe4-4b69-9e5d-3fe8ce930f45","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":84,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"bfb927e4-d670-404d-a4e9-0ed5fb34f5de","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":84,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"ceec86ab-6e94-42ef-ae8d-ab869b46d2ad","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":84,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"c0ade04c-2b25-4841-b307-6a67aa0a7392","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":84,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"8351bb1e-846e-4e1c-b695-865a9275f06b","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":84,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"6f7f9fec-6e24-4023-98ad-268a710db2f4","block_type":"box","text":"even further. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":84,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"9a8e7850-4675-4c69-be88-e0d7c418d7ba","block_type":"box","text":"Kong may cause uncertainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":84,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"839d9fe9-9303-4fec-9aac-5f3b966529d4","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":84,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"31ef7701-0d82-476e-b434-0acfc908e64d","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":84,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"59a2bdd2-4d8f-4892-93a5-ed7fae287370","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in certain","page_number":84,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"9dd6433c-0502-4995-b555-9d8c6b968a84","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":84,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"9b88d54c-bbe1-471b-8f89-3899b54c6789","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":84,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"85c5adb9-d041-46b0-b668-00f3bb4628d3","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":84,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"6b4f9f98-514d-4a0b-a29b-1b2fbbcfc073","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":84,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"276e927a-2cfc-4f30-93d5-da551da0c2bf","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":84,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"8811ffd8-9e7d-442a-ae63-296275bae81f","block_type":"box","text":"military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks against foreign","page_number":84,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"936e8ff0-c542-4187-856b-757b18b629da","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":84,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"27ddf472-a146-4743-a2ad-86d094a5561e","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":84,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"3d59c059-b217-465c-807e-74d0702ba540","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":84,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"f2145daf-f12a-48a8-ab5e-08e73a383a50","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within North Korea. These situations may","page_number":84,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"d399c536-3e62-4a9d-a809-5d3e89d567b6","block_type":"box","text":"cause uncertainty in the Chinese market and may adversely affect the performance of the Chinese economy.","page_number":84,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"01a9667b-2af3-4f2e-ba65-f977561ee201","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":84,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"f836bea0-dd07-491f-be8e-0c1811a76f9b","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":84,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"2ef86767-c975-463e-a0b7-c9386242a6bb","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":84,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"d7cd66c7-3d9d-4645-9a54-77fb62f3e2c4","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":84,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"72868b10-a289-4d9b-a124-342cd797ed50","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":84,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"5fef280f-a5a2-45f2-a1df-c4be61df3e81","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":84,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"08e36f71-e300-4100-b8b1-e3771c4d7d12","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and property or","page_number":84,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"47af64ff-a1e4-407c-b0d0-c4ea577b1f25","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":84,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"8212bd5b-c1f8-4136-89d8-b27a02c32b2d","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":84,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"eb2ee871-a134-4bee-bfea-82e7390d7cc5","block_type":"box","text":"restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks. This may affect","page_number":84,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"17df9669-6c26-4914-bdd4-a823aa79723f","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":84,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"e2d5bdb9-d830-4f3f-a6be-dfa2000d56ca","block_type":"box","text":"Funds. Furthermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":84,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"71d5613c-5185-46c0-864d-df6cfb9a5a15","block_type":"box","text":"affect the performance of the securities markets and as a result the performance of the Funds.","page_number":84,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"15a16cbf-05da-4b21-932c-dc9a4e2ad310","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":84,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"1b164cfb-07d4-4e45-98dc-f3767a547b5e","block_type":"box","text":"brokers and other participants than in the United States. Accordingly, issuers of securities in China, including","page_number":84,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"29722f81-a334-423d-abf7-69a063b89fe8","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":84,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"8a790644-b1c3-4c39-bb6c-7e955cbdb68a","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":84,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"424c9bc7-7d40-4529-8391-03a05bbd2f22","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":84,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"dd93af1c-e9a6-470e-9df5-4a5637655a03","block_type":"box","text":"information. Securities markets in China are in the process of change and further development. This may lead to","page_number":84,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"d4562ce6-29d2-428c-abf5-01595ca73916","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":84,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"e74e3c43-1b3a-49e6-91f3-8023412bb139","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":84,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"734a482f-e853-4079-b725-847751e67743","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In particular,","page_number":84,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"799e5368-cc7f-40e3-ae12-874e0d69fb54","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":84,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"dee978b1-824c-4109-90fd-c81e22b19d62","block_type":"box","text":"sub-custodian.","page_number":84,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"bea63ed2-9ae8-4e59-9f3d-71169840eebb","block_type":"box","text":"II-41","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0050045b-72c6-4d90-ae99-88bc84a89f88","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2cc6ace1-ec08-4035-a8df-c9ef533c39f7","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":85,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"69709f38-69ca-444a-9871-d7a459e41879","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":85,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"576bab34-b49b-4d1f-ae3d-61be11774c9b","block_type":"box","text":"on investor protection considerations.","page_number":85,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"226e45ab-bf74-4eef-8de7-696d4df973cf","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":85,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"3947b3fa-5d1f-406e-8a75-a732522807f8","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":85,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"d4296192-484c-4c49-8545-4a79ba4c6a43","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":85,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"a2b97c29-7939-4422-a151-b9beb787d53a","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":85,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"9b3b421a-4a1b-43ec-b7eb-f1951b6c40e5","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":85,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"32251d81-744e-4fb5-b4a1-94336762b6a1","block_type":"box","text":"headquartered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":85,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"c8fd0c74-c14a-47de-a629-6ae22d7c3dab","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":85,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"4e47118c-6e7d-4df9-953e-6bc8a46c41e1","block_type":"box","text":"performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":85,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"28370cda-185b-4b1b-bb60-831191813f0a","block_type":"box","text":"performed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":85,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"5010d92e-bd7f-40bf-a16c-e28cf597b6a5","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":85,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"7a1ba75d-1835-4ea2-8b9c-63a2778ea2f6","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":85,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"885a7de6-8b4a-49ce-8c18-48a59ce0cfdb","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":85,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"558e1761-a4a4-4355-8e5e-3cac9d3d45d5","block_type":"box","text":"accounting firm.","page_number":85,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"74aab9db-1b00-468b-8385-fae11eaab0d5","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange control","page_number":85,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"01b43b64-98c1-4078-a5e0-cca916c1cf94","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":85,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"de6a38c2-f3f7-4618-aa44-10f965c0e107","block_type":"box","text":"negatively impact performance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":85,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"c7dd9b19-0cbb-4b48-b1fa-11203e5dbbe5","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":85,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"e72c25f2-f879-49c5-bb32-78f5b1093661","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":85,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"e41bde67-8e59-4719-be64-ccdc4f0484d0","block_type":"box","text":"which have a substantial portion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":85,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"9cea31d7-e88f-4d1d-9cc6-cbaa0d42d808","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":85,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"a6dd383c-5b93-4469-8512-4138638b5a53","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":85,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"e10b93d7-a7cc-429a-a4fa-6b10e5f18bbd","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":85,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"6ba5d638-da88-4c76-937b-ca75d5f32204","block_type":"box","text":"RMB (“CNH”).","page_number":85,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"93fff5d9-d9ff-4d86-b1bc-29c6dbfe74dd","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":85,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"11b2fe1b-80ec-4aee-ab2d-f67ab7cd7b3f","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":85,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"144ea93f-112e-46a5-846b-00fa2c881484","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":85,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"456d0fa7-8cbf-404f-9a8d-cf58d5b053d2","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":85,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"b547b03b-7a5a-421e-91d6-8a13f85f1502","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":85,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"662b2dbc-40c8-4563-9097-2213b71be667","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":85,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"d074f6f8-428c-43e1-97d6-248b847161c6","block_type":"box","text":"represent equity ownership in the operating company.","page_number":85,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"2c72a5f4-fd71-4b48-a305-a003e1729a31","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":85,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"6747ac4c-3a7e-432f-b120-6746db8b3ea1","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":85,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"6c58f9d2-96a0-44ee-860a-85b8821321dd","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":85,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"6edbba6a-27a0-4218-9df0-2e60374aa180","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":85,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"51b6e6bd-3142-4055-b249-bab515729334","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":85,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"cbeaac53-88f5-4eae-ada7-4a4bc11b4c42","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":85,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"47a82df3-66ba-4c15-837b-2fb0a701cc3c","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":85,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"b0990462-66bf-4df5-8f14-2cafe993f8b5","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":85,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"949c07bb-b37c-4479-b98d-762fcf10dc61","block_type":"box","text":"company and the value of the U.S.-listed stock. Further, the VIE contractual arrangement would likely be subject to","page_number":85,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"a5db68f8-b81c-4950-81b2-1d2e8009f05f","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncertain and could be","page_number":85,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"b2f7bd95-deef-47bf-9119-3b68e05c399f","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":85,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"8b90c0e1-1a27-4083-8412-d2266e3a7da5","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":85,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"9beb454b-8747-491e-ad8e-a6a569c3816c","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":85,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"660abd8d-724d-4e45-a12f-1dd2e925d25e","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":85,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"d6a3c468-9bc6-4a86-b4ee-11d928f38517","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":85,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"42c1aa1e-5742-492d-abf3-302d65770e9e","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":85,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"265cd7eb-c09a-4620-a521-5cd56888fee5","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":85,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"a1036e3f-4266-4457-afee-7df5fec11bec","block_type":"box","text":"losses to a Fund.","page_number":85,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"e37398ab-d7f1-4fcd-a8c0-636b139e17d9","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":85,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"8034af26-8512-498a-a1d6-d954260c2d4c","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":85,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"fba1e093-caa7-4e18-88ed-27b0b867e672","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading partners over its exporting of its","page_number":85,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"6c6363a2-482e-4bec-9432-c78f45615f68","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":85,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"38915d27-90d0-48fa-9ea7-65f4d19bf59c","block_type":"box","text":"II-42","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6bc732f8-2913-4b40-8c2f-9b9aab73635b","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"206764b9-0e51-444f-84ff-765e65a9a2e6","block_type":"box","text":"export growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":86,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"69e524be-f8f8-4171-aded-d2f4a28149c2","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":86,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"f4c2fd58-ec4b-4fdf-a792-9929b548051d","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":86,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"328e4b70-495a-48d3-8d91-857ea705658d","block_type":"box","text":"economies of China’s key trading partners may have an adverse impact on the Chinese economy and the companies","page_number":86,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"a21b618a-3f14-45be-b6bc-9006c02fba17","block_type":"box","text":"in which a Fund invests. Certain Chinese companies (which may change from time to time) are directly or indirectly","page_number":86,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"327cae24-0935-4f13-a803-222959bf8350","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":86,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"a2692831-c921-4523-ab2b-8d0ae3f11417","block_type":"box","text":"rights or other concerns of such government. For example, certain foreign technology companies are subject to U.S.","page_number":86,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"2849ed4c-2919-4914-a631-77ba3fd288eb","block_type":"box","text":"export controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans imports of","page_number":86,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"04480252-612b-4dfe-b7c4-5cffc4250c38","block_type":"box","text":"goods produced in certain regions of China or by certain Chinese companies due to concerns about forced labor.","page_number":86,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"d7611662-58e9-43a9-8b23-7727956dd103","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":86,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"7699bd1b-c90a-4731-9851-3820be1da832","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could interfere with orderly trading, delay settlement","page_number":86,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"2970e934-abf7-41b2-978a-112490923031","block_type":"box","text":"or cause market disruptions. Certain companies may be subject to economic or trade restrictions (but not investment","page_number":86,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"ae19fd35-abd4-41aa-a95f-8e6211e973a9","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":86,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"d7eb792d-e064-4911-8628-02b0467829b6","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":86,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"7a8be7d2-7ad0-4401-a755-20bd7e48d9ea","block_type":"box","text":"such companies.","page_number":86,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"55ac857f-e306-40ca-9bca-ee687233be32","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":86,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"9f623d0e-ffb8-4750-af43-78a4190b6198","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":86,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"d44a9e1c-b593-463f-845e-63357b1fef5d","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":86,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"79752736-59e0-4e83-8e51-db3759a00f25","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":86,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"ea5e823e-babd-4c8e-94fd-6586fd0d2076","block_type":"box","text":"on a Fund and its investors, particularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":86,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"9d261fad-bf48-43b5-ad6f-57840c90a9a9","block_type":"box","text":"addition, the accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":86,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"af515c35-a13a-4df8-841c-b211be74a9e0","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":86,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"955f1d3e-1aa0-4dab-8864-b150e580b4ea","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":86,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"366354b0-51e6-42c1-95b6-28bb31e3ef21","block_type":"box","text":"standards.","page_number":86,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"b1c535c7-4403-4e08-b157-106ada7555da","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":86,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"af091d70-12e1-439a-ad89-9ba867008728","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":86,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"95400aa4-f219-4944-b900-ecbd1bcefbe5","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":86,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"3d08024b-171e-434a-a7fe-529248e47227","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":86,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"5acb282f-3fc4-4663-820e-6ea07463ddec","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":86,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"932c48e3-da33-44c5-96b9-d7733221c7b2","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":86,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"9ca33233-727e-46ef-8e7b-bcb0cd915017","block_type":"box","text":"General","page_number":86,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"306c4de1-32d7-4473-9132-4fdb36851302","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":86,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"431e4030-ea64-4417-98dd-07e1033c64c9","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":86,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"9b0adcd8-4c82-4c83-a279-3fb4bbeef34a","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":86,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"7dd93276-06cc-4630-b60d-f26a8fd5290a","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":86,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"760a8f57-d361-4a32-acc3-ab1a45e4a80a","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":86,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"4ea86449-6468-4ab6-954a-fdd9f09c6757","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":86,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"edbab223-620e-4dec-bc92-d1ab2f4d2354","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":86,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"b601698a-3a92-45eb-9c32-27a3da70b25f","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":86,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"1d444006-0580-4c86-bdc1-37e7e6c1a71f","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":86,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"56f884eb-93cf-4906-b8a3-b63f88fdf03e","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":86,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"f474e59d-d681-4a4a-b037-8164c3ccf6a1","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":86,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"e1885130-a21e-48f9-8942-a11db7803a35","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":86,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"1fd9094b-8ce2-4180-bc1c-4242b3f19dec","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":86,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"6582588e-9fc9-4e0c-ac6d-80bdad1b8186","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":86,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"e734842a-1916-458b-a775-7523c49b3dde","block_type":"box","text":"company established by SEHK.","page_number":86,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"1fb54ea4-8947-485d-b1ee-1b9b88917d23","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":86,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"fa394a6b-ace9-4eb4-8bbc-7a1eebba2150","block_type":"box","text":"through a Stock Connect’s Northbound Trading Link is subject to daily investment quota limitations which require that","page_number":86,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"bf07e3aa-1c37-4f8b-82dc-7f56c2c5eee7","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":86,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"1fd93b78-8e44-41a1-a910-ff3b821e8d5f","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":86,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"22561c34-0792-49e0-8d6d-620bb5e9e2c7","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":86,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"b5651364-02bb-4f9d-873f-11bd43f92dcf","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":86,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"a04909f8-539c-4ab4-9453-e01ace7ab9aa","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":86,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"288c30c4-e73f-4496-ace5-22b2ef86705d","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":86,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"cc36e83c-6cf5-48a1-bae6-1f0a4b241e69","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":86,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"85772d64-507c-4a27-a480-872e477a2146","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a certain trading day, there must be sufficient Stock Connect","page_number":86,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"a5246b24-4f9a-4aa9-9b2c-2d6e4cc0ac1e","block_type":"box","text":"II-43","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f8af7514-f4d0-4ecd-b7ea-e2ed7606cdd4","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"802fc635-486d-423a-801b-f92819b4344e","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":87,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"ba919508-0c70-4df1-a2e9-b4db52554d7d","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":87,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"f865c706-152f-471a-b7e8-b0e4f23f95fc","block_type":"box","text":"out pre-trade checking on sell orders of certain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":87,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"ae35c1ee-c644-45e1-b918-ffa927433844","block_type":"box","text":"(“SZSE Securities”) of its participants (","page_number":87,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"fedc6020-00b7-4cd7-bf83-83e14d866731","block_type":"box","text":"i.e.","page_number":87,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"80a7951b-dcaa-48ec-a6db-3612090225a5","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":87,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"521a81f8-6123-4df8-b5a0-0fa180ceb3ce","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":87,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"9d89b9be-29de-43c4-a20c-b3ba846bd744","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":87,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"950bf317-0654-48f6-90d5-2464602da0c1","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":87,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"12bda29c-5ab7-4b04-a00f-22d8eea98a02","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":87,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"d3da50e1-b361-47b9-8db2-0d3a22bbbb91","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":87,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"d29c40ad-336f-4f50-9e85-615f1efd339a","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":87,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"bb68ea7c-e469-42c1-ab07-5ee43782ce88","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":87,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"9faab988-42c5-4c27-8f6f-5e540d05262b","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Further, since all trades of Stock Connect Securities","page_number":87,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"0fad22f2-cc4c-44d0-b3b7-354466dbfb05","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":87,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"379e95d4-846d-4c85-8751-5a887a2f2f66","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":87,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"c29808c0-27b7-459e-8b59-9317218ec8e2","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":87,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"026f5697-504d-4d67-b20a-ea06fc5c430d","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund converts the local currency into RMB for","page_number":87,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"7052985b-96fb-499e-92e4-96d35a72a8c0","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":87,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"99a9b275-7891-4c3e-ad8d-76f32a1a8a84","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":87,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"f4155332-992d-4255-b2a2-d54cf215a3e8","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":87,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"fd4ba9fb-5c2e-4291-a739-c52a0c2a8848","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":87,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"8391d0c0-9119-4f77-819a-f84e2313d0ba","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":87,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"60c4d7e4-433b-447d-9808-64b6e346d70a","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC courts. The exact nature and methods of","page_number":87,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"1647daeb-9974-40d7-bc8d-92b0184ad148","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncertain. In the unlikely event that","page_number":87,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"09c2c8bb-683f-4093-abbe-6fcb6c6ff030","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":87,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"d615e3b7-418c-4e9a-b3d3-37830b926c92","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as part of the general assets of","page_number":87,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"bddf8c0b-8353-4e06-8a41-0410fa95f60b","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":87,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"8bf88ae7-cb1b-4acc-b4c4-9357d55bc108","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":87,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"f453809a-34e8-4056-a2db-974932313c9c","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":87,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"42913bcc-6459-4ef1-8550-5b8a9c7895d8","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":87,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"497729eb-a60c-4696-8209-4cfddc7e8696","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps participants of Central Clearing and","page_number":87,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"4fcb3185-5f6c-4a02-a8bd-79169946b4ab","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS participants to take steps in","page_number":87,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"321bf765-8489-4e2b-b536-37de1c6f03ba","block_type":"box","text":"order to participate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":87,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"e352a123-884c-4800-a62c-b59d0fa9bf85","block_type":"box","text":"HKSCC through participants of CCASS. All voting instructions from CCASS participants will be consolidated by","page_number":87,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"f29176a6-2d27-4c5b-8bf1-65dc4ba2fd80","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":87,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"a0cfe60a-e28e-4ef8-a177-7d9a2f0b94ee","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":87,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"adadad67-9f79-45b3-b82e-8e0e7eb39328","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":87,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"d27cb2ac-35d6-4fdc-aa9c-5e17c29c021c","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":87,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"ac8e459a-6a8f-4425-812b-99109fc277c6","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":87,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"558903c8-f585-4ce5-9c71-dec8e1d8269e","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":87,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"7f28151c-59ab-4c29-9542-45bc52b395c2","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Northbound","page_number":87,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"1cb13722-f2c0-4a8b-9879-1a975d56303d","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Northbound trading through securities","page_number":87,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"bed59a8f-e600-451a-b774-f4d3086fb637","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":87,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"da99c720-e162-4ea6-a851-40dfcc0c3f8c","block_type":"box","text":"PRC.","page_number":87,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"9f10b342-0b76-4e0d-8e63-454cf6a4b27b","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information technology","page_number":87,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"86a4fbab-9bd0-4e79-9020-e1ae8a49f219","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":87,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"5eb9387d-a8dc-48b0-9aab-0bfe2652f86e","block_type":"box","text":"house. Further, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":87,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"a5e71afe-b2a0-4405-8bf8-fff541d0ba22","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the part of SEHK and exchange","page_number":87,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"e2db77a1-39ad-435c-905f-fbc8e775bff9","block_type":"box","text":"participants. There is no assurance that the systems of SEHK and market participants will function properly or will","page_number":87,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"4e3ce0d1-65f8-42b5-861c-1564a4af1198","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":87,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"16d6f7b3-f450-4f35-8ca2-cf9e5de63b81","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":87,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"f18ebe38-90e2-4812-b3c8-1385cd5d0424","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":87,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"052945ea-fcf6-4ce0-a09b-017847075bfb","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":87,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"9d93bcd1-869b-40b8-ad05-27d0119aa946","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":87,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"c1c7b6c4-1d94-408d-893c-458160065a2f","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":87,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"d54d5ec3-d531-4a00-b0c6-21e4374527b7","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":87,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"5e7fb709-1d8e-44a0-8eb0-2f8fb8b99025","block_type":"box","text":"as a result of such changes. Furthermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":87,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"7ad436ea-bfa6-4341-a6d3-c6809411ffd1","block_type":"box","text":"II-44","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dfd53de7-3d78-495e-b53a-83ff3b71835a","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"396dc645-e968-44d7-8550-f65a10fb68d2","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":88,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"5d58bf6b-4a63-40e4-afcd-d317015de37b","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":88,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"34b7e439-9969-4ee5-95ab-77e072a0b918","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":88,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"7ea60f2b-5887-464a-84cd-51ec95e757fc","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":88,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"f754416e-60c4-4782-bf02-dc7e8d35340a","block_type":"box","text":"other restrictions. Further, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":88,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"89ea77f7-1e37-4073-a15f-a445a858255a","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":88,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"da8d5e69-b20f-4d54-93ac-eeca4b462771","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":88,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"f7074743-21b8-4963-8fb6-b9b1f9f33310","block_type":"box","text":"Suspension Risk.","page_number":88,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"fa2de78d-ee4d-40d4-b029-180cf56c1b39","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":88,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"f67caa60-16f9-4f4b-81f7-97280f21278b","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":88,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"3b3e99b1-6728-48d3-a7be-c6c715f8d0ca","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":88,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"1e45b2d8-49d4-4234-b84d-e5393da35897","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":88,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"9a49942b-3c70-4ee5-986e-790b0e44f1e6","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":88,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"2e9fa355-292e-400e-bdcd-4a923a354c98","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":88,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"8a97c6bb-4c0c-4719-aa23-9faad1219675","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":88,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"327d0ba0-6def-430a-a476-cd446d29db4d","block_type":"box","text":"measures to halt or suspend Northbound trading. Where a suspension in the Northbound trading through Stock","page_number":88,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"f8e6990a-86fa-422d-909a-b6e9ffd504b4","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":88,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"f980c25e-bf44-438f-8d32-437e21d5205b","block_type":"box","text":"certain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":88,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"dacbfc98-1354-4054-94f9-36b8aa10d54c","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":88,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"9bbcdec7-402e-4f75-8daf-492af2f26fd5","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":88,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"558f190a-62c4-4ecc-b16e-05ef8512936b","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":88,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"3e53f9aa-b43b-4959-af51-e3057d66f367","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":88,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"6aa30ad2-3044-4e18-a183-079de2b24033","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":88,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"a9942b9c-062d-4590-a833-f0cf6bf4b4fe","block_type":"box","text":"A Fund may invest directly in the","page_number":88,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"c61973a6-fb16-4d6d-9f5f-3532d8c206af","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the northbound trading of Bond","page_number":88,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"fb4ddf52-6f16-4efe-ae12-f5d86ee9bdef","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":88,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"bb3e8c3b-5f93-4450-9e40-1316addeffd2","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":88,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"abacc073-9758-41bf-8b62-2a07743d960b","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":88,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"4fc9a709-97a7-46d0-ac06-a9681399a041","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":88,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"c948f4f4-301b-4dd3-90c0-f808c2f53738","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":88,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"060a780c-5db0-4fde-857a-cf3b43beed2a","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":88,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"66861395-2417-41a3-bb2e-6cec44441bcc","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":88,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"88c9aa81-b19c-40d9-8f08-916cfe546065","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":88,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"91ec789b-c4f2-4f7c-92ea-540ca23e26ae","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":88,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"00b4d341-1bce-4b42-9f17-ea4b00099b0e","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":88,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"6cdf415d-b331-431e-bf35-b6d7e2f0904d","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":88,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"164221b8-75f2-4509-b0ef-af422c3822bd","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":88,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"318f2612-8b0c-400e-87d8-52ed20e45792","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":88,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"a0a51da7-6860-4b74-bc16-5492221ee447","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":88,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"10df0cff-4870-44f4-8f74-ea84a75ae3cb","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":88,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"1b9986a6-e7fc-49cc-95d8-5a97ac31ba10","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":88,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"a5a2dafb-654d-4c15-beb6-9fdac9dfc472","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":88,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"6d06a007-15d9-476c-8bb3-1baf5cce8357","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":88,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"d43e5594-1be6-4bc2-ad8f-f12d12ebb636","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":88,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"f2beeba4-7a39-4e51-ad63-943c15b97172","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":88,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"a768c063-8351-414d-a663-997b700f87a9","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":88,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"83c4ce3e-8c21-409b-92aa-a723824eb135","block_type":"box","text":"i.e.","page_number":88,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"8e075b44-0fa7-4a23-b1fc-ff5f26496127","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":88,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"a0061ddb-8ac1-45a2-8e4d-0b5926c9656c","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":88,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"769b3deb-41d1-4302-b33b-5362cbc1d1f5","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":88,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"3cf294f2-74ce-46b2-89b4-a7ad525a182b","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing participants","page_number":88,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"07c6a891-b20c-4531-9131-2a34898e4716","block_type":"box","text":"will be limited to assisting clearing participants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":88,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"e0c85f2b-2bd7-4e6a-8c92-32b176793d4f","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":88,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"c1f37839-9de2-43af-b2a8-bf5c61961ebc","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third parties,","page_number":88,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"5b807a7b-0ba1-469b-866e-1ed3785da2ab","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the part of such third","page_number":88,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"748f6996-21b4-44f4-9fa5-644fb8c3ab74","block_type":"box","text":"parties.","page_number":88,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"7dbdcb31-7685-4ff0-b99b-7ab8c8f2ab24","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":88,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"bd540bf0-7deb-4276-9b25-ad9d3a453eb8","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":88,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"293abced-1ec8-450f-86d1-7b0ade260933","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":88,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"846c1faf-4c76-4bc5-9e65-1f165825de48","block_type":"box","text":"II-45","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f0fd3eda-ed18-43c3-842a-479aca5a9712","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5eaea756-c699-44b6-8b19-b19b89531f67","block_type":"box","text":"involving a nominee account structure in the PRC courts. The exact nature and methods of enforcement of the rights","page_number":89,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"f63de0ca-2bb2-4057-8307-e9c556136ca7","block_type":"box","text":"and interests of a Fund under PRC law are also uncertain.","page_number":89,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"8732208d-fa9d-424e-a959-73dbd7e06a27","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of certain bonds in the China Interbank","page_number":89,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"dd6e5fbf-7b6a-401e-aedd-5957a03146f8","block_type":"box","text":"Bond Market may result in prices of certain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":89,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"92c26e7a-8070-408f-9411-731172eca38c","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":89,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"58eb7aa6-13eb-4c76-8b76-e827725a2c17","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":89,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"d912705d-ff23-48ac-8490-ab1bf2ca82a8","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":89,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"63cca1a2-63ec-4eb0-bf6a-c770dd28089d","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":89,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"3a489fc8-2da4-4d5f-9c52-6b9abf236454","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":89,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"9e240aec-88e3-43d2-a443-26ce002a5088","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":89,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"77e915ca-75a8-4f6c-93f5-4a855e798bd7","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Furthermore, the securities regimes and legal","page_number":89,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"a06d29d0-f613-482b-8d79-e42b6966f9d4","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":89,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"5297d2a5-808a-4957-b98e-3314aa80f16e","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":89,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"6389be06-090f-4057-b805-a9c9560cdbc6","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":89,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"c5817b7e-dbc6-4a7a-b7bd-d90ab27b6133","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":89,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"44468c38-8d80-4294-9d8d-bb5d24fa9423","block_type":"box","text":"Fund may suffer substantial losses as a result. Further, if Bond Connect is not operating, a Fund may not be able to","page_number":89,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"ce9df7b3-7edb-4a6b-b762-0174a15cccca","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":89,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"e847f9c8-379d-4690-aee0-6e4d0c60f020","block_type":"box","text":"performance.","page_number":89,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"d2408666-fa85-48b4-aa99-e9a90169c77d","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and operational systems.","page_number":89,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"aa484652-b3f5-4ee0-a52a-1d0c805b2160","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":89,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"05d3c329-5f43-44c3-9c00-f82eeefa2348","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":89,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"4c759214-da4d-48a1-a52a-1806847dcb5e","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":89,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"4bce8f57-1704-46c0-87cd-72fa417aa776","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":89,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"d52a0d8e-19c7-4c86-b21c-8efb489e2077","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":89,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"0d946f6d-d6c4-422d-b3b4-a28479fe6a4c","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":89,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"c3cbd740-ca7b-413d-a79d-8aea31de61c2","block_type":"box","text":"convertible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":89,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"a0eb4ae2-a947-4bf7-b4eb-ba21e8d7fce4","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":89,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"5510d95f-a45d-4dba-8db8-dadfdef6b7e3","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":89,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"3504733f-129f-42cf-852c-9b00435906aa","block_type":"box","text":".","page_number":89,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"3bafb9f3-a8df-4d6a-afc1-190afca328c6","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":89,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"42564540-c1a4-4031-84ed-a6a6a30532e7","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":89,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"a756663c-d5fc-4dda-a80c-6e328f8954ff","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":89,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"f1726dfc-7269-46a0-8ae8-81ff2998ae75","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":89,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"3c7386ed-62b4-4017-bd5e-9352a603f482","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":89,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"96cb12e1-72c1-4e0f-bbae-0b30f27791a2","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":89,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"171cfda7-0961-4f58-b9bb-6ecd75ccc0b9","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":89,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"a788f417-e9f3-439e-b3f8-5ec6006f4e31","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":89,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"0900d6d0-efaa-4a45-9ab3-c87d1ded6cdc","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":89,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"50e48865-0986-49d7-8ec2-d19a51f2db88","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":89,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"2c465696-1359-4654-8a46-9016946edd45","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":89,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"422d8830-5ac8-4862-a7b3-ff3a9a6b47c9","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":89,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"bddd904e-c6a7-4d68-80cb-c49602581b26","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":89,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"e54335ad-fbea-40be-824d-ace150c5bf48","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":89,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"81b26f75-5897-40bd-8c8c-d7178e40635c","block_type":"box","text":"without notice.","page_number":89,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"a5f1145e-2590-47e3-b433-71fdf4e2d0d6","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":89,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"b726cb03-7e10-408d-acd3-5e12ffa4df2d","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":89,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"f96e6ad0-5827-4c43-92b1-918d962c1356","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":89,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"2a8dbcb6-cd85-4072-851e-f6eae4c961fc","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":89,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"735ba652-4984-4e3e-993c-e466a7b43482","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":89,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"2403b62d-22df-4145-b4d5-d754e974c44b","block_type":"box","text":"December 31, 2027.","page_number":89,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"b9254651-179b-4e79-9f7d-deb14a4fea40","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":89,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"a27235f8-b9bc-4898-ad12-4929d0dd3695","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the Fund, including","page_number":89,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"b7bd3702-ab15-42c3-9185-a62783976478","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":89,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"94e9a655-a37a-47a1-8c12-2d0556ac90ed","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":89,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"5c5852fa-99bc-4924-a56f-45bf5e90a94a","block_type":"box","text":"II-46","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"815f3d0d-e75e-4b23-80f0-4c5f7478bfd7","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cd737a35-a996-4c3d-bd23-abd44cd7681a","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":90,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"6fe3e500-7fc8-49a5-843c-daa7be89182e","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":90,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"71d13ec3-4f8a-4af4-a273-eb50b0e19884","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":90,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"bfe59ff8-c4df-453e-a280-00f2ee130bd7","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":90,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"f515c29b-8b28-4692-8567-c71fe0e38639","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":90,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"4fc20588-a372-420f-af0c-fcea442b1492","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":90,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"4fdbbab4-d774-4a41-a262-07ec4145734c","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":90,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"fcf8b076-5e69-445e-aaf6-4c8a9f269605","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":90,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"0b71b092-b39d-45f1-b48e-f1ca3a03ac83","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":90,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"8cfa3776-7f30-4e26-b576-bfd6ef8a4ddb","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":90,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"518b268a-2a81-4327-8b6b-c4ea8ffa4328","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":90,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"8816f648-1dd5-4d00-a535-36bcfadc57c3","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":90,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"3f5d711a-b08a-4f0a-8ed1-9ac8be1e19c6","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":90,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"ea3fcd4f-a5c2-40e8-b372-f82fec83e1cd","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":90,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"0a4a22c6-8bbb-4e84-b097-bbf9f1b2afa8","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":90,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"b84983e1-fd8d-4925-8313-4ca0abfe5a8c","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":90,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"a85a940b-d975-430f-bca3-b6fd02e2de5c","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":90,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"516cc725-e183-461e-a6fe-cdaebb8d0a00","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":90,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"ddf42e75-f77a-48de-b90d-d70d10299a48","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":90,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"bffb8a99-a31f-4068-b9bf-10a7a8231f41","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as further clarified by","page_number":90,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"a69f247c-ba2d-4d10-a2f6-adafb9215b02","block_type":"box","text":"the PRC in notifications.","page_number":90,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"2d25bced-fe4a-4ee8-bf95-f332936465bc","block_type":"box","text":"Investment in Other Investment Companies.","page_number":90,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"d19710c6-ba82-4b6d-88e0-04a2271e9eae","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":90,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"f2f1292b-ac74-4833-b30c-2f25e6486d20","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":90,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"03f32b43-7709-491f-a01a-35379e3e933f","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":90,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"58bb25d2-c6eb-4df7-a2b6-2dac85636e3f","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":90,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"4a41e54e-80c2-4c42-acd6-29f8b03891cd","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":90,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"ab44ba76-8cd8-4322-ae08-1e046711d699","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":90,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"4cb28c1a-5b9b-40a7-8d84-a130576c92e3","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":90,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"6c93e9a6-7e1b-42d6-8d13-0b5f958793b3","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":90,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"a8a52b8f-59a2-4a67-ba23-b0f360067e42","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":90,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"467f2ca5-7ab4-4f6f-bc86-95f806eb086a","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Portfolio.) In addition to the restrictions","page_number":90,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"1fb15517-bae6-4bb0-8406-9e6dc289463d","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":90,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"fdcdd3eb-9d08-40eb-a1ca-4db4b984865d","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":90,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"c3bd64b4-cf5d-4afc-bf85-5a93c263b802","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":90,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"0b169e51-2f7c-4a35-9593-289ecc682ff6","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":90,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"c4f2b36c-2de9-4942-a6cd-0ac9cfba0fa7","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":90,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"b96ae13c-0848-4662-83ec-ae38b5818ec3","block_type":"box","text":"certain conditions. In addition, a Fund may be able to rely on certain rules under the Investment Company Act to","page_number":90,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"264e20a5-4022-4fdf-bd59-fb61d466ceaf","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":90,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"cb13e8aa-07b6-4b79-b3e2-d9c83220fc7a","block_type":"box","text":"subject to certain conditions.","page_number":90,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"96113e9d-543f-42af-97e5-a9239f554791","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":90,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"11b686dc-e110-4337-9ffc-1e001af069df","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":90,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"193369aa-715a-4775-9240-836483c4b2fd","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":90,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"ecf26c9d-cbdb-481a-acf1-6000d48b1b96","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":90,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"c89ef287-6dc7-4192-9076-42c4c18185a7","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":90,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"d1ce2a6c-ecaa-47c4-aa14-59b773352607","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":90,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"e1b48211-876b-4790-89e1-58347f1219cb","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":90,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"76c235da-6f73-4964-a19e-488ac4913ee3","block_type":"box","text":"loss.","page_number":90,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"7814438e-0042-4769-beaa-95f849a83f25","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":90,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"6af83ff1-f26a-4fe1-98ff-5e23b43cb15a","block_type":"box","text":"shareholders would bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":90,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"eddb9794-c8cf-4b82-8fe4-b9f88212acc5","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":90,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"e2b60759-f045-4835-84a7-27dfe3b4df7e","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":90,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"542a01d1-da65-4246-90a0-32ed8b92ae34","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":90,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"ccf6e426-af9d-487f-b6a7-00c6e524eeda","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of certain countries will not be","page_number":90,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"367b1b3a-6b9e-4659-b763-16d4c0be136b","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":90,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"60cdb4c7-aa28-40ed-ba91-9b3d8aa86bc4","block_type":"box","text":"II-47","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ff0c1721-d8ea-4a1b-9afd-319f83ecc7d5","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"384e0a92-c04a-40c3-8007-fb6eb41bcbd6","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":91,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"4da3cf1c-c9ca-4de7-902d-340e022b7aeb","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":91,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"b604e120-eee9-4fae-b465-fededea88634","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a portion of its","page_number":91,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"a520e329-5c05-490e-b209-ba6331b91978","block_type":"box","text":"assets.","page_number":91,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"a455d2ae-d1a5-4df2-aff3-132fb0cc6561","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":91,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"f432c989-d162-407b-bab5-49f4e3733426","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":91,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"09ad2952-da17-48f5-8c13-343e2a37957e","block_type":"box","text":"e.g.","page_number":91,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"2352c384-47dd-443e-a534-4e4908d6b484","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":91,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"18d4ff2e-5257-4b2f-9e09-62703a70e95c","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":91,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"72fccfad-c45c-4aeb-98fb-5a8c79d91f50","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":91,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"0290d019-5109-475d-8225-592724a9e2ec","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":91,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"e5072983-83d4-403f-bbe3-2ac5f8c6a810","block_type":"box","text":"investment in developing countries, and certain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":91,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"03c792bc-61f8-4c9f-8619-2fbcb3c315a5","block_type":"box","text":"have specifically authorized such funds. There also are investment opportunities in certain of such countries in","page_number":91,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"8b8358a7-b373-448a-8fa1-e778135c41f2","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":91,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"f7cd6157-6091-4803-9736-f41a99604a30","block_type":"box","text":"investment companies set forth above may limit opportunities for a Fund to invest indirectly in certain developing","page_number":91,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"d8ebbfba-1c6b-43d9-9cbd-fb1f8f47a8f6","block_type":"box","text":"countries.","page_number":91,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"31feabcd-f940-4488-b63e-711ef27daff9","block_type":"box","text":"Issuer Insolvency Risk.","page_number":91,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"61682c18-b043-403e-972e-f0680a4244df","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":91,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"a2245697-db57-4232-959d-2280f900f895","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":91,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"91f4386b-38a6-43f8-ab4b-d82c7d4adb73","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":91,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"2c5d7e36-93e9-4012-bb36-84dcf26e5546","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":91,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"515774a4-83a3-48d2-b518-4381ab3040f2","block_type":"box","text":"issuer uncertain.","page_number":91,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"75096a55-0b8e-4ea7-a5db-40d297470002","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":91,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"edbd011f-7964-4d37-a81f-83d60935b097","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncertainty as","page_number":91,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"f727b6d1-702b-4e67-8021-79eaf3fc6b0d","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear certain extraordinary","page_number":91,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"283ab6bc-4a14-46f3-8a35-1f089a4bcb6a","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncertainty as to when and","page_number":91,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"eb26635c-d0ad-46c5-8fe6-3597aaeb3f42","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":91,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"ab963154-c884-4d66-acc6-2f7f568355f4","block_type":"box","text":"eventually be satisfied.","page_number":91,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"03d37860-79be-4884-bc71-c0f4561faf7d","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":91,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"74bf0e25-1327-4a30-81e0-ed5358905c94","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":91,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"87480511-bb9e-46e5-90cf-c794c83fd9de","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":91,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"3389a1e3-11ae-4fe0-87fa-f6e0d0c22176","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":91,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"9cc26d10-a1bf-4603-b772-3fff00b61b32","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":91,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"c4bec74d-5b4a-4e51-8dd2-7c3ba5931e0d","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":91,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"456c0507-d27e-42be-a943-2bd419ea005a","block_type":"box","text":"introduce greater uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":91,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"4408ea56-67dd-4698-8489-7fbeca9a7237","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":91,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"0e5d8028-2093-4ba2-8e3b-1a5bfc8e3cbb","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":91,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"9491f242-8bf2-487e-9d02-8eddaca159fb","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including convertible preferred stock); bonds, notes","page_number":91,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"e3bf067f-0e2f-4de2-b907-74db8e354012","block_type":"box","text":"and debentures convertible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":91,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"aa478004-348f-41bb-9524-ff7de060c3a9","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":91,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"4f658cca-9c42-4e43-8811-eb8fc6c61a69","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":91,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"2d6a09ad-766c-4141-a51e-dea68cce00f2","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":91,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"bb8fafbc-a9e2-4196-b351-1ac444cc94fe","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":91,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"2acd3489-77d8-48b8-a3bd-18f7522b78f4","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":91,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"e99565ca-d9d1-4591-b1b5-515005faccd1","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":91,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"aeb78485-577f-4d3e-b27f-39cef4a124f7","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":91,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"e5d64b79-1625-4816-b585-79b605518e26","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as part of a","page_number":91,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"5a7c8a62-4b4a-43cd-8fc2-8fe2628f3706","block_type":"box","text":"workout agreed to by a consortium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":91,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"96070a6d-c6d1-4292-aab6-a11e083d5394","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":91,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"71609ab4-3140-4b3f-b9cb-e04300b62887","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":91,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"e409ab28-2c26-4d9e-95b0-15642fc500a2","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":91,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"d390af17-b66a-4a82-98c1-f6af0ba1893a","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":91,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"b5c5e346-0c28-49dc-aedb-a60be62f20d0","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":91,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"35772389-2d0b-4249-b505-1bf682d3712c","block_type":"box","text":"participates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":91,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"ca24054a-d3a8-4b22-ad4f-65f23d5e0e6c","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":91,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"0d91bb54-72be-43f2-acaa-dd61cb8135da","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active participation in the affairs of the issuer than","page_number":91,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"fbea6b1f-b129-4342-b38d-92b9a8567119","block_type":"box","text":"that assumed generally by an investor.","page_number":91,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"40c7f5e3-c1b1-41d6-a88b-a237c0acdfa8","block_type":"box","text":"II-48","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2c22b4cd-b4f6-4e2c-aa72-f449fe1f4e92","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d4ab55d7-f559-4155-89ef-dbb01b64b62c","block_type":"box","text":"Lease Obligations.","page_number":92,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"ddd8e55c-b834-4dfb-a3db-2e6e83607ae5","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase contract, or a","page_number":92,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"b27175d3-7b83-4b0f-b38e-b8d08b33f8f2","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":92,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"e16730ce-042f-47ec-a497-9464b7a1c88c","block_type":"box","text":"each entity providing credit support and/or a put option relating to lease obligations.","page_number":92,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"e13b4a8b-334a-4725-8a54-3880667c8902","block_type":"box","text":"Life Settlement Investments.","page_number":92,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"dfe67420-8101-4b35-bacf-afd4edb297da","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties, such as the","page_number":92,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"767fcb0c-e0ad-465d-8fa2-d81e5fa5b3df","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":92,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"f43f5a20-1882-4d46-a71a-56a4b7f66d18","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":92,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"fdcb814f-b37a-4cab-b0b6-96706720d106","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve certain risks,","page_number":92,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"30a3004d-15cc-4a1a-a48c-d7e6d5792a19","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":92,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"fcdb9bf0-bc5e-4829-92c4-b6ca9532c2dd","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":92,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"3f3e32cf-ef7d-4c02-9034-6e6d8fa05d66","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":92,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"f10aba47-e008-4827-9a6a-f8f9e6852667","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":92,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"f2af1aa5-a0c7-411a-9497-27f3d6d30e93","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund may encounter","page_number":92,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"1b7203dc-163d-482f-9cd6-ed2b64d3fca0","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":92,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"e9f8dc02-d082-4243-bff7-df53a1b4c505","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":92,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"0b38dcce-22b8-4bc4-9d88-bb11a1e4ee48","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":92,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"12847392-05a6-40e9-be6b-f4cb4ae74ec1","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":92,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"05744222-07e0-48d2-914e-a58a2ef4b76f","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":92,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"d627145c-4dee-41cb-b1e6-9bbcc1155ce0","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":92,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"b9b1d03f-fff6-4bf7-be4d-8cccb13e4527","block_type":"box","text":"Liquidity Risk Management.","page_number":92,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"52fe8899-cd6b-455e-8699-7eae0937b679","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":92,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"4e61dca2-90d3-48b2-b355-fde94558f70c","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":92,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"6b80a070-c310-4485-88c6-1c0cecb59691","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":92,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"a5ddf20d-a6b5-46f4-a4cc-465449dbb176","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":92,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"5f913126-d303-4779-abe2-6b53047dfd6a","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":92,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"6398e321-c57d-4642-bece-d1c18c12d1de","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":92,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"e9ca6a65-5deb-4c13-a8e5-2cb02d41323c","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":92,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"69fbf02a-f897-42a8-a9a1-d571f2aecabf","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":92,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"24b5135a-f0b3-499d-965a-64cc3b02882e","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":92,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"630d0673-afe6-4282-ba94-39d298536804","block_type":"box","text":"liquidity of a Fund’s portfolio investments is determined based on relevant market, trading and investment-specific","page_number":92,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"c9b5d171-3826-4bca-ae80-dc54a14a183e","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":92,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"2180b0fa-04d8-4572-ac2b-a4b2357243b1","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":92,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"5ea05a8d-f4a5-442f-8c67-c1356c536509","block_type":"box","text":"Master Limited Partnerships.","page_number":92,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"016e36ec-9c42-4bd2-92ae-6783c7d28f7e","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships (“MLPs”)","page_number":92,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"29f02dc9-2050-422d-b6c9-fb92c21961f1","block_type":"box","text":"which are limited partnerships or limited liability companies taxable as partnerships. MLPs may derive income and","page_number":92,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"c94faade-a13e-4fdc-ab9e-b318f88fe7b4","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transportation (including","page_number":92,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"e9fa6707-712c-4571-bc41-6505cadd3ddb","block_type":"box","text":"pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":92,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"4c382c40-b188-43a4-9eb7-628841bed34f","block_type":"box","text":"generally have two classes of owners, the general partner and limited partners. When investing in an MLP, a Fund","page_number":92,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"9145ece3-2e71-48fe-b5f2-53bfed7c97fb","block_type":"box","text":"intends to purchase publicly traded common units issued to limited partners of the MLP. The general partner is","page_number":92,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"e54f6d79-975c-42ab-a270-8bc43cd5e623","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":92,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"9f68486c-180b-4d37-a8b1-97892a59f00c","block_type":"box","text":"owned by one or more of such parties. The general partner may be structured as a private or publicly traded","page_number":92,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"d42dab4e-8676-44fd-a053-824c522dc9fb","block_type":"box","text":"corporation or other entity. The general partner typically controls the operations and management of the MLP through","page_number":92,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"761c1a58-4223-495e-8f9d-738e1c254f05","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":92,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"1acf527d-4619-47b5-9874-485ebac6e429","block_type":"box","text":"Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role","page_number":92,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"544eec19-7c38-4d7b-8cd7-e918ac6362e3","block_type":"box","text":"in the partnership’s operations and management.","page_number":92,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"8b2e7551-1435-4842-969b-f4afa0b809dd","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to receive","page_number":92,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"546b0e49-4922-4417-9094-fe2a37e233df","block_type":"box","text":"quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”).","page_number":92,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"c4e8a8b6-1c3b-49e7-be52-034c33a9b625","block_type":"box","text":"Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":92,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"53a19f26-43ee-434f-8d7b-86f4380c402e","block_type":"box","text":"Once common and general partner interests have been paid, subordinated units receive distributions of up to the","page_number":92,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"2b0811d3-556b-4907-bfdf-562e37c5f709","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":92,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"fd0256c2-6751-45ac-9528-4847324172c0","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":92,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"43cfcaeb-adca-4fb5-bbe3-63ca1387dab0","block_type":"box","text":"The general partner is also eligible to receive incentive distributions if the general partner operates the business in a","page_number":92,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"026d6ebd-9307-4e83-9158-480879c8e17c","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general partner","page_number":92,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"351c9768-6e2f-41df-a086-e18f94ce223e","block_type":"box","text":"increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of","page_number":92,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"74e8824b-0ff2-419f-8634-e65e136bd99c","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where","page_number":92,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"849dce46-2c23-4c40-b07c-8a57d1a71bab","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":92,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"3fc68abb-fc8e-433a-94bc-d475022493b5","block_type":"box","text":"distributions encourage the general partner to streamline costs, increase capital expenditures and acquire assets in","page_number":92,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"36317165-7090-43d6-ada0-ccf8773dc355","block_type":"box","text":"order to increase the partnership’s cash flow and raise the quarterly cash distribution in order to reach higher tiers.","page_number":92,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"04a51aa9-aec0-4039-b573-ca32b31dca99","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":92,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"3badc887-1c79-4c2b-8eb1-6235db17c036","block_type":"box","text":"II-49","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bb88c531-a26e-4dbb-ac29-10a890d944d4","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5fb0000f-d576-477d-94f0-862154c4d446","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and traded on","page_number":93,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"50df2371-3fce-4721-97a5-1a1735406252","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":93,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"750d468c-ab51-464e-b0b8-83b5f69de303","block_type":"box","text":"success of the MLP. Certain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":93,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"ca557da6-b683-4bef-8742-e38ed1bb70f3","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":93,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"f764464c-13ea-477e-a69e-546932975b17","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":93,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"eac17f19-2b81-47ef-afaf-f2d2198d71a0","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":93,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"149d9565-6f66-4afb-96f0-3b09da80e9cb","block_type":"box","text":"Merger Transaction Risk.","page_number":93,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"5b196f4c-efb6-4b17-b756-317db15c614d","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":93,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"181732ce-509c-495a-b111-f7cec81e0189","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":93,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"3d1ccae8-bf60-42e0-88bc-63057883ef33","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":93,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"b3456403-e029-464a-a641-db67cc98e54a","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":93,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"bbac0cb4-2a89-45e7-b95b-80ca6306a7f1","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":93,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"fcd21a80-f214-4f19-9c6d-f67c5cb40740","block_type":"box","text":"the Fund and may lose significant value.","page_number":93,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"9d1befcd-8d76-4202-b82b-79810576f4f6","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":93,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"fa9de867-da38-426e-bc4e-f133468b7793","block_type":"box","text":"Certain","page_number":93,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"4c01608c-5607-4808-ad4e-b3e7235d013e","block_type":"box","text":"Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’ acceptances and time","page_number":93,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"a978f8cd-e62f-4ce2-96dd-0cc1515cbeea","block_type":"box","text":"deposits, including instruments issued or supported by the credit of U.S. or foreign banks or savings institutions","page_number":93,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"34f38b20-e190-4e17-bc64-c7d078785f13","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":93,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"452163fb-2a5e-4e56-ba7c-c1078151b737","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":93,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"99bc2d6b-25d4-42ba-979f-fef2e966fc8c","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":93,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"5f9038d4-0169-4a2c-8a0e-2887cf268ca0","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in short-term bank","page_number":93,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"b550d1a5-6605-4cf3-970c-5446eef74cde","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":93,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"689e7cdb-98b9-4443-99a1-1cae7cd7f7e2","block_type":"box","text":"branches of domestic banks.","page_number":93,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"904c06a3-d5a1-4e5b-8978-4da8c14af044","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":93,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"ef767064-8a5c-40e8-af50-0e3a2d5074a5","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":93,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"110f84af-07ac-4cef-8a2c-f8df8410773c","block_type":"box","text":"Canadian counterparts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":93,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"20994792-0cf7-403b-8b27-9267c31ccb60","block_type":"box","text":"paper of a foreign issuer.","page_number":93,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"1f458441-7476-4b3d-9440-58c33b2ad87e","block_type":"box","text":"Money Market Securities.","page_number":93,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"eb71e28b-351e-41c5-aff3-02e379291d97","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S. dollar","page_number":93,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"8155ce94-7983-4e1d-9b69-4ebdcd41fa15","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":93,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"44628fa5-8b05-44c7-b87f-57e03b63cacc","block_type":"box","text":"money markets. In particular, the Funds may invest in:","page_number":93,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"17dd8917-7caf-401e-b09e-b18b94a32f46","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks or savings","page_number":93,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"21801f85-12d5-4a51-b073-cc13bb156621","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":93,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"94482d6b-d51c-4d6c-a624-4207e6f92b29","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":93,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"b671d2ef-08c4-4973-9a04-1ae92d1e2742","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":93,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"c0a64f18-bcca-493f-9798-a695e4176885","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":93,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"5b0784e4-dbad-4840-8079-fc73da7b0597","block_type":"box","text":"agencies;","page_number":93,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"2e5a47c2-fe33-4e92-abd7-0a04e19baadb","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":93,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"daedccea-9530-458c-9ac7-c209a9e8ba50","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":93,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"2833a035-18f7-421d-9716-14aafcfa0f80","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment purchase","page_number":93,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"68fce2d2-2476-4182-8172-fd328ccdfab4","block_type":"box","text":"obligations and credit card receivables);","page_number":93,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"b39d7044-f19e-4512-8b82-c79936edeb0a","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":93,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"1197f874-2f3b-43b3-9665-c537b42a6b6b","block_type":"box","text":"authorities and related custodial receipts;","page_number":93,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"76d2070c-c023-4fc8-899a-8e8b49fe4d7d","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":93,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"162f6959-1783-429c-a263-3e81430755cd","block_type":"box","text":"agencies or authorities;","page_number":93,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"37ba2fdc-2036-434c-bbff-24b8ac57a9d3","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":93,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"b4306cb7-8181-40ef-bbf6-034dd49277ba","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":93,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"ace15eae-3bbd-4efc-b5f6-8c7c190aef36","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":93,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"91c0495f-f52f-4d99-a27e-c0f7094249a7","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":93,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"9baf7600-3da1-4022-9e6a-6b5a75be7073","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":93,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"2c67fd59-383a-4da7-b34b-fce06291c70f","block_type":"box","text":"States;","page_number":93,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"14ac1ad7-7b2f-40f4-856b-90296ff7d0bc","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":93,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"89b2ce46-eff7-4bb2-9fbd-2680536fa652","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":93,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"8b53e2cf-f068-42c4-bd0a-9acced420a21","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":93,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"e5aa9c70-1598-4e1b-b839-dd3e944cdc5b","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":93,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"7c0d89c8-2a60-4b59-a531-a8a14e3315e2","block_type":"box","text":"II-50","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"06c5f6ca-adaa-45e0-bd71-ee6b4216643a","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a9324fe3-a23e-49df-bad3-7565fd127700","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":94,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"c6ae9fac-0642-4db1-9c97-b2b29cf5c1c0","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":94,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"74224a41-47f8-4672-9fb3-f53a3aaae464","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":94,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"21ea6346-6a83-42a6-b52f-9a87027654e4","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":94,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"379e44aa-2c9b-4c82-be84-74dba31a17e5","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":94,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"9b0b0062-429e-43a6-a920-8c59f0af00aa","block_type":"box","text":"States.","page_number":94,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"166a3ca9-cf3f-4a94-a913-4410a310705b","block_type":"box","text":"Mortgage-Related Securities.","page_number":94,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"dd4fb3c6-049b-4e8d-a201-13b794d96f5f","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":94,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"1c459500-e225-485c-9588-6049b46cb5ee","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in which","page_number":94,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"2e756702-d9af-4d81-bffe-30ce297b7adf","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":94,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"1109532e-8b65-41b0-a868-f9c51c7ac721","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mortgage loans that underlie the securities","page_number":94,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"dc48619e-665a-4826-83e0-4c06e0be0136","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mortgage-backed securities differ from other forms","page_number":94,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"a6aee031-1dfd-4eff-8dcf-dace665f4f90","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":94,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"529ad481-551d-4307-820b-2662c0a6be63","block_type":"box","text":"maturity or specified call dates.","page_number":94,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"b668e465-5c82-4e24-8061-7aae7a4ea323","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":94,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"d4e369e9-9396-438a-be34-60bf8d23f16e","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mortgages relates declines. In","page_number":94,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"eddda916-c39e-42b6-b998-976d1e3fe2ba","block_type":"box","text":"addition, investments in mortgage-backed securities involve certain specific risks. These risks include the failure of a","page_number":94,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"bd41bae6-d159-464f-9a52-11c6da3e8a89","block_type":"box","text":"party to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":94,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"48c0993e-2fb9-48bb-9dc8-77f2aec6ffbd","block_type":"box","text":"of prepayments on mortgage cash flows. Mortgage-backed securities are “pass-through” securities, meaning that","page_number":94,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"b3361cde-e95a-490d-af30-95c44a0cdc50","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":94,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"5edabefa-33e3-472a-9716-973ff03cc302","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly sensitive to changes","page_number":94,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"87f722e3-61f1-4f30-afa6-f157a90e7b14","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":94,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"a727cdee-3843-457a-beb3-cdcfd836f5ca","block_type":"box","text":"successfully may depend in part upon the ability of the Manager to forecast interest rates and other economic factors","page_number":94,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"149b0f08-a2e1-41fd-9518-38aafdd9ab5b","block_type":"box","text":"correctly. The value of mortgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":94,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"f896b337-6bd1-41c9-a6d2-c4721e7d8a6e","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mortgage-backed securities differ from","page_number":94,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"a09af9f5-ff32-432a-b6c0-0ca79223c687","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":94,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"ce7751bb-3fd5-4d2c-bd25-70ee487ec6dd","block_type":"box","text":"for its mortgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":94,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"f47bb34f-2ffa-4721-a61b-8af91ccc2bc9","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":94,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"ebdd99c8-dbb0-4f20-b28d-1c9ce7e6de6a","block_type":"box","text":"underlying mortgages. In a period of declining interest rates, borrowers may prepay the underlying mortgages more","page_number":94,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"aba23125-5319-48f1-a409-1abb9687d40d","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mortgage-backed","page_number":94,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"f123d901-dd40-483d-ab8e-d2f1a174146a","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":94,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"6e915856-6fe1-42b1-8363-1a7da675f62f","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":94,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"b4a59dcf-c3ab-43e6-a5f8-302126f4649c","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures and","page_number":94,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"1d9f99ba-285e-469d-b190-b7c32475cb7b","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":94,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"3c11aa80-a749-472a-923f-044353acf98b","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":94,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"0ba4779c-190f-4e64-8af2-340a860f5f06","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":94,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"9464a591-5ce0-4179-a792-22ef3ce0e5ef","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mortgages may occur at a slower than","page_number":94,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"acf1fd37-0fec-494f-bedf-055fb5f72a25","block_type":"box","text":"expected rate, creating maturity extension risk. This particular risk may effectively change a security that was","page_number":94,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"c10a980a-a4c9-478f-be0b-04c81b398adc","block_type":"box","text":"considered short- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":94,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"3fcbb2b0-60c3-4a81-99f3-914b5efaeb45","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shorter-term","page_number":94,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"c33e9483-4825-4655-be5a-48243c1a1759","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":94,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"795000fe-5f95-4952-a391-98af8df72515","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities notwithstanding","page_number":94,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"413d40e9-c96f-44a7-8c80-c71f9438dfd0","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":94,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"1b5dd33b-4fa5-4bdf-ab17-d248acc554bf","block_type":"box","text":"There are currently three types of mortgage pass-through securities: (1) those issued by the U.S. Government or","page_number":94,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"51f16d40-8831-4d60-9817-dca00c71a964","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mortgage Association (“Ginnie Mae”), the","page_number":94,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"33477f53-d60f-4bb7-a2cd-1e931e2296d9","block_type":"box","text":"Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie","page_number":94,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"45d3a334-b5ee-4944-b7ff-74b935238929","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":94,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"01a998a3-09ee-4db7-aaa0-e92712dab08e","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":94,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"d83da9df-df3a-4654-8c99-aebd5b8f3d47","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mortgage loans or pass-through","page_number":94,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"6d83234a-fcab-4566-8196-9e3f82460c4b","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":94,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"de54041b-d168-45d7-b90f-5f73e596b5c1","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and Urban","page_number":94,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"dcb59f76-c357-4e17-af5a-30baac726090","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":94,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"0e61c7e1-42a5-4c50-8918-d2e4125441bd","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":94,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"66b31a7b-0cbf-4187-82d6-57ecf4662751","block_type":"box","text":"and loan institutions, commercial banks and mortgage banks), and backed by pools of Federal Housing","page_number":94,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"ca81e049-3077-4a75-a0e9-81efc188515e","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mortgages. Pass-through certificates","page_number":94,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"64dd6d37-3a4d-46c9-85c2-0a8e2e324f01","block_type":"box","text":"II-51","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"18f8e999-945b-4187-992e-4fcd4a4d59ce","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9377e4a3-b021-47a6-b2f0-4d2d19e0cfcc","block_type":"box","text":"guaranteed by Ginnie Mae (such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":95,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"2f3e65ac-6574-46b6-964a-1a13691758e5","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":95,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"efa2b0d6-6d3a-45ed-87db-42c945c2068c","block_type":"box","text":"States. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":95,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"0522e306-cf45-4665-afc2-2a3160992d32","block_type":"box","text":"Treasury Department to make payments under its guarantee. Mortgage-related securities issued by Fannie Mae","page_number":95,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"c9a4412a-3384-4a9d-b078-d18d46b5fa35","block_type":"box","text":"include Fannie Mae guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”), which are","page_number":95,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"13da9885-358e-42c0-967a-4be3fd721a3d","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":95,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"afde7188-f324-434b-a783-efdb4adeb392","block_type":"box","text":"faith and credit of the United States, but are supported by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":95,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"87e6875c-db81-482c-9af8-4aaf826be957","block_type":"box","text":"Department. Fannie Mae was established as a federal agency in 1938 and in 1968 was chartered by Congress as a","page_number":95,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"2eb858b0-4d6b-4943-b5b4-00187b1efe8f","block_type":"box","text":"private shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":95,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"6514c3e0-f2e3-4759-8852-82b1334a0022","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":95,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"35510ae8-c49f-4164-a9d2-09e4d8391268","block_type":"box","text":"corporation chartered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":95,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"d91a411a-42d3-4b36-891e-84be9d09279e","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":95,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"d7747309-1a4a-439a-b95a-dde029afef8d","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":95,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"11c65ca4-a12f-4474-9ced-3cb2d8f18b24","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans.","page_number":95,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"d35485a5-0160-4736-9bb7-0fce70dfd0d3","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":95,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"2a0260e8-0b29-4de5-92aa-cd3d7abad091","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mortgage, but","page_number":95,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"6eec9e19-f77e-4abd-8057-6d6d8ccaa9f4","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":95,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"6d6f870b-05d6-41c5-a064-0caafe75d130","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":95,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"f042301a-12be-4556-b9c7-2c454b87b6f3","block_type":"box","text":"mortgage pass-through securities and are issued by originators of and investors in mortgage loans, including","page_number":95,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"b3c421da-8c67-47a0-b151-ffc5f0030db8","block_type":"box","text":"depository institutions, mortgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":95,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"edc0e41b-8387-403b-89ac-19ad5799e2b8","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than government","page_number":95,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"8eb0e52f-6ac0-4378-9ca8-3bb1ec5d5359","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":95,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"888c09b5-f6df-4017-8050-ca02493ecf14","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be supported by various","page_number":95,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"bdd6b979-8cb7-4f35-b315-f6e36ed47380","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":95,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"5e539ff7-0b55-48fa-bbf5-0e516b9e0f34","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mortgage poolers. The","page_number":95,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"3e0e52f7-2521-45fe-b218-7e972390b504","block_type":"box","text":"insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether","page_number":95,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"973a566d-ec07-4a79-ab80-0afe8977a60a","block_type":"box","text":"a mortgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":95,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"ee50c6e3-08d0-4087-8592-1aeef1c47300","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":95,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"09645ddb-5950-4fa4-9170-2af3b67da5a4","block_type":"box","text":"mortgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":95,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"c1be0cac-ba1c-410c-986d-2b8db652b865","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":95,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"9cc4418f-cc7f-49a4-8acc-521270c30327","block_type":"box","text":"meet a Fund’s quality standards. Any mortgage-related securities that are issued by private issuers have some","page_number":95,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"acab68f4-5bab-4c25-9cbe-0d162636e921","block_type":"box","text":"exposure to subprime loans as well as to the mortgage and credit markets generally.","page_number":95,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"ff570214-6ded-4a56-97a2-19b5b41cd520","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":95,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"95bab226-e6be-44ec-a103-56d39a71734d","block_type":"box","text":"requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a","page_number":95,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"9ac48f6b-9085-4358-87be-ee564a9e6019","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage","page_number":95,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"c192c6a0-bcea-44c5-8a52-2aa8c2165023","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":95,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"35afb206-93b5-45f0-ac3d-5007bb87a1db","block_type":"box","text":"characteristics than government or government-sponsored mortgage-related securities and have wider variances in a","page_number":95,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"ce91c064-9fd3-433d-ab11-1f6ef49d2ccb","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":95,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"51ee2a62-cbc6-4be0-8aab-ecb961c7ef3f","block_type":"box","text":"frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon","page_number":95,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"450d3c4f-66df-4d5b-9c31-0d56bda38844","block_type":"box","text":"rates and maturities of the underlying mortgage loans in a private-label mortgage-related securities pool may vary to","page_number":95,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"1e7e3993-6e8a-4eca-ad53-a93678de7311","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage","page_number":95,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"dc9d71cc-23a7-4c13-9a38-3e832e77d1d7","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":95,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"a0fefceb-f5f2-4d53-ae9a-4791908fb09a","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":95,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"6fccbb1c-0ae2-489f-bf28-1fffd1a55334","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":95,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"0d608e94-d721-423a-a6de-3931bc1d0d2d","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools that","page_number":95,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"e46c0d84-77b2-4d6b-ab8b-c4d7cef8a389","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan","page_number":95,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"0ab075a6-2588-41a2-9ab1-30e1d0c00a61","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":95,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"455e7249-56d5-43d7-a06a-a94c93beb6ee","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mortgage","page_number":95,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"1465f7d3-eabb-40c8-90d3-8659ee545254","block_type":"box","text":"payments by holders of adjustable rate mortgages.","page_number":95,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"46697af8-0b4e-46d5-9c93-b69ccf44d835","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited market","page_number":95,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"44ab52d4-ac16-4ff1-9b26-22df303b5bf7","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors.","page_number":95,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"b468d574-4f3a-4547-910d-a5ce929742f1","block_type":"box","text":"Without an active trading market, mortgage-related securities held in a Fund’s portfolio may be particularly difficult to","page_number":95,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"da789ef6-8d09-420e-b393-48320981e7da","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mortgage loans.","page_number":95,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"96d343b6-6878-4fe5-a767-e86b8f094f78","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":95,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"c37f0a8b-f922-460d-a504-9a6332992ee8","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":95,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"44e7195d-73e8-481f-abdf-e80b9e9582fa","block_type":"box","text":"commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest and prepaid","page_number":95,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"40dd9bab-b1ce-454a-a569-64d2a2a82a51","block_type":"box","text":"II-52","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"637e8c69-3419-492e-b724-14a348753cd0","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"76425a5f-94b4-47eb-ab9d-94938264f8ab","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mortgage loans or private mortgage pass","page_number":96,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"ce7b29d3-f3ac-4379-91d8-5e2d989e9bb0","block_type":"box","text":"through securities but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed","page_number":96,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"0acf2907-5db8-43b6-9a4c-8d53254c5522","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":96,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"f109aa86-3040-4699-8c1d-827ce3797274","block_type":"box","text":"Mortgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":96,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"c5e2de37-ce38-4530-b28a-d0b057ea5227","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":96,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"552164f2-0df0-4dca-8027-ba9c4ee7572f","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":96,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"66cbca6b-481d-427b-ba64-419d68c519a4","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":96,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"06dcdbcf-b336-4720-8496-d1621c5fb064","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":96,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"d5b43939-2b88-4e74-bf12-bfb280720e1e","block_type":"box","text":"de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly","page_number":96,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"a4b7eeca-acee-459c-b872-9bd1ce0f992b","block_type":"box","text":"payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":96,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"8d38dc75-750f-4f6f-a49d-c8c8439528cf","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually receive principal","page_number":96,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"eee8a75a-fd3f-4540-a716-6af179af63e1","block_type":"box","text":"only after the first class has been retired. An investor may be partially protected against a sooner than desired return","page_number":96,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"ff47d569-f5bf-425f-8b0c-b690606a43ad","block_type":"box","text":"of principal because of the sequential payments.","page_number":96,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"38ac22dc-7e94-49eb-9289-5260ff5ac633","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":96,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"2a001d61-a4d6-4da9-b540-348b5b38da2b","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":96,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"d64b1062-f0a2-48ca-bdad-dcec82b157c8","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":96,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"3d23fdd6-a43c-4c9f-b180-61f164161b6a","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in certain other qualifying CMOs, which cannot or do not rely","page_number":96,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"0fc4d3a3-d79f-4bb9-a78d-523f78eb9e0a","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":96,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"ad25f44a-5323-4f7f-ae12-3313c0170d6e","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":96,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"d7e94495-eec5-4e17-8bd5-ce9d847393d2","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mortgage-backed securities; (2) do not issue redeemable","page_number":96,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"abec400c-e19a-4b24-a9e7-668a1aa717f6","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":96,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"3ab153cf-b6f7-4ac9-b5e1-ae0bbbef29d0","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":96,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"4267f3b5-a08c-4e6e-bd15-679aced1ecf1","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":96,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"8f0152fe-618c-41cd-9d73-6f18c989d694","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":96,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"02bfe07e-caf8-40d1-884c-2a0448a527f2","block_type":"box","text":"securities of any single such entity.","page_number":96,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"84437fb9-1362-4fad-9188-c8ec16d43386","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":96,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"d8d68c5a-1d81-4c96-9de2-ec159991f43e","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":96,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"a1a58026-ad96-4b26-ad12-dc83f4ab2949","block_type":"box","text":"concurrently on a proportionate or disproportionate basis. These simultaneous payments are taken into account in","page_number":96,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"4b0d23f8-0185-4d8a-96e6-9f9d95fc93c8","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":96,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"a6cc62be-4f0f-4ba7-b4a2-a6dd777e2a36","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Certificates may be issued in the parallel pay","page_number":96,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"e9b2711f-7e67-4bf3-b72c-6568f86a7c41","block_type":"box","text":"or sequential pay structures. These securities include accrual certificates (also known as “Z-Bonds”), which only","page_number":96,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"92b6d97a-60c7-4194-9c2f-f77b4699a635","block_type":"box","text":"accrue interest at a specified rate until all other certificates having an earlier final distribution date have been retired","page_number":96,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"2a561f18-5572-4f01-bcce-4cc0b0998776","block_type":"box","text":"and are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":96,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"207e27ea-00c4-4f65-a170-4bcded2aa57c","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":96,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"0225f07e-828e-4782-870b-945ff0a84774","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":96,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"302eb5b6-f07e-46c2-b070-0d1fff71a36b","block_type":"box","text":"Classes of CMOs also include planned amortization classes (“PACs”) and targeted amortization classes","page_number":96,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"73a79238-e08f-4348-b516-79fb74906702","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":96,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"fd34fbee-699e-4593-aa03-8ec262df47a3","block_type":"box","text":"scheduled principal payments for PAC Certificates generally have the highest priority on each payment date after","page_number":96,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"2673ae89-4fcd-4f88-91bf-cade451ed809","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shortfalls, if any, are added to the","page_number":96,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"f35f6b6d-9484-4055-be3f-702ab6afc085","block_type":"box","text":"amount payable on the next payment date. The PAC Certificate payment schedule is taken into account in calculating","page_number":96,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"0f4f321e-befc-4ad5-b03b-6513d8d3c00a","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":96,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"34354fb8-e878-4c40-b0b8-26e99612cf56","block_type":"box","text":"be created that absorb most of the volatility in the underlying mortgage assets. These tranches (often called","page_number":96,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"e11f6fc8-5574-41a3-ae0f-3d490a27ee76","block_type":"box","text":"“supports” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":96,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"31a088a8-ef36-431f-8866-b91ce7a3b178","block_type":"box","text":"classes.","page_number":96,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"921008f9-4aec-478e-98f3-5f9aa7c07520","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":96,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"d8739ed2-1a26-4b5b-b7ed-a96f412be60a","block_type":"box","text":"date to one or more classes of REMIC Certificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":96,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"c75098a5-975d-48ad-a8c3-43fea6d37239","block_type":"box","text":"prepayment rates on the underlying mortgages do not exceed certain ranges. In contrast, a TAC provides investors","page_number":96,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"af74d054-3f09-4ceb-a596-2a0a5c928aca","block_type":"box","text":"with protection, to a certain level, against either faster than expected or slower than expected prepayment rates, but","page_number":96,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"6a558f37-e360-4fa2-8645-29ed4397807e","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":96,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"4479b32c-a029-4541-935d-717301c91cbd","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":96,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"204a1fa3-789e-4534-bdc1-b95d4e5fc2f0","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":96,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"c645dd30-6a1d-48a5-84f7-15f295e847f5","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through securities","page_number":96,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"a3f19729-aed1-4ea9-af80-30499a10390f","block_type":"box","text":"collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mortgage pool","page_number":96,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"42f257af-7165-4ebb-9f4d-ea292775da15","block_type":"box","text":"generally provide for a fixed initial mortgage interest rate for a set number of scheduled monthly payments. After that","page_number":96,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"25fbe5d9-2c3c-4e1b-90b5-8db5ee07cda7","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":96,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"c9d0c8bb-2530-4702-85f9-71ba4e36ec3a","block_type":"box","text":"to a designated benchmark index.","page_number":96,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"fcb411e5-d953-4b2d-90c9-6d4f78ad49d2","block_type":"box","text":"II-53","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"98a39102-598d-46ad-8e94-351b2e5feba2","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b656c009-4ecb-44aa-863b-340b912182d8","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the","page_number":97,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"68d6c866-f591-4f79-80aa-3c40247f6b5f","block_type":"box","text":"lifetime of the security. In addition, certain ARMs provide for additional limitations on the maximum amount by which","page_number":97,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"2e11da89-be35-4935-9448-f88fcb7a6253","block_type":"box","text":"the mortgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":97,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"b9d3f5a2-83e2-4064-849d-11ba34cc3da8","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":97,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"fe0dfb80-c37c-457e-bb93-a04521081611","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":97,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"9a882aac-a227-41ac-86b4-631a89b76024","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":97,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"6af072bd-83ec-40c7-b77e-7c585f1ce404","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":97,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"6a9ded15-50cf-47a0-88c4-ff6f4f6594fc","block_type":"box","text":"balance of the mortgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":97,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"d1b3a895-7f3d-4288-bb56-f39cd000a6ba","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal","page_number":97,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"7070736f-cd31-4bb2-9ade-0d3ab81dceda","block_type":"box","text":"payment required at such point to amortize the outstanding principal balance over the remaining term of the loan, the","page_number":97,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"3987ffb8-70e5-433f-a543-2e66731e5ffa","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":97,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"7629b060-b3a3-42ff-b459-47024ab53422","block_type":"box","text":"CMO Residuals.","page_number":97,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"413108f8-1e8b-4bf7-9838-79bf350fcda9","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or instrumentalities of the","page_number":97,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"6a11b2b1-fad2-43a3-b680-e7f4d7453cea","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan","page_number":97,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"9ef27e82-7369-4342-83f4-20cae52f08fc","block_type":"box","text":"associations, homebuilders, mortgage banks, commercial banks, investment banks, and special purpose entities of","page_number":97,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"34cf20ac-ecb1-4232-95dd-560b9c41df18","block_type":"box","text":"the foregoing. The cash flow generated by the mortgage assets underlying a series of CMOs is applied first to make","page_number":97,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"d7b4a21e-99ef-40b1-abf8-d8b7d812c3f0","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":97,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"1ae1a9da-935d-41f0-980d-647d7aa6551f","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":97,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"02381925-3266-4c1a-88b8-43208cfa9097","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":97,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"48b0278a-c691-4ec7-b652-423cf7559f72","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":97,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"5750c748-00e1-495e-b5e3-db42428dc3cb","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mortgage assets, the coupon rate of each class","page_number":97,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"d02cd773-c5fe-4e7f-80fb-05b59cee0bcf","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":97,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"72c65031-95b1-4295-bf9e-0a21461f3d3f","block_type":"box","text":"mortgage assets. In part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":97,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"3ef01069-11af-490c-bed5-ce4d1190491b","block_type":"box","text":"related underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":97,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"c20c6d8e-1ba0-4200-9c5c-d415ac72bdf2","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":97,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"aa5b1568-7697-4f17-9ef5-5e8aeb085e40","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":97,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"83d6b36d-686a-4b0f-96aa-46a33a89767a","block_type":"box","text":"interest rate adjustments are based. In certain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":97,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"c1923686-6677-47ad-ab39-9b8094155f40","block_type":"box","text":"a CMO residual.","page_number":97,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"c7553c9b-d5b6-43ee-86bf-9ac477f4826d","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":97,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"8d8ffa09-110d-4ce7-867a-6443dc49d881","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":97,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"9a327a15-f72b-4b05-bba7-8382509334ba","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":97,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"fc4356d9-4b21-4aee-a019-a9b35a4541ac","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":97,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"2bbe78e2-9473-4827-a2ad-d5b334b9b691","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":97,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"c7d49c94-8afa-4690-b539-ef395a828d3a","block_type":"box","text":"registered under the Securities Act, may be subject to certain restrictions on transferability.","page_number":97,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"d64abf88-bb0a-47cb-b4bf-85cc5d25bf65","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":97,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"66a3bfda-ac5c-4461-94a9-21380b9b602a","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities (“SMBSs”)","page_number":97,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"f8d23f1a-f821-4b9a-aeb7-09975b7c968d","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mortgage-backed","page_number":97,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"2e085cea-24f4-4bb6-beb8-f74e633b4a90","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different proportions of the","page_number":97,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"92041fd7-0a8c-48f5-8384-8eb848edbb68","block_type":"box","text":"interest and principal distributions on a pool of mortgage assets. A common variety of SMBS is where one class (the","page_number":97,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"822914fe-f010-4e44-8779-2bff925d625f","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":97,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"86c20d4f-33ab-47c4-bda6-b459fe1ac2ff","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":97,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"7d63e461-e5de-45cc-a073-71e1f1f6347c","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":97,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"96cf42f6-96b0-48a5-8c2a-15f3dcc4b536","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":97,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"48682dbd-39d0-47c3-b7fd-2b325d9685e8","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":97,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"efb966b1-1ff8-4ff4-8cfd-658af7713c6e","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":97,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"3f918c27-621d-4608-8f12-2b0756db9418","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mortgage assets","page_number":97,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"03117ef9-aff6-46c3-af8d-bef751e589e9","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":97,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"3bd83cb4-4bd5-48a5-9bfb-1ffe9b042ff4","block_type":"box","text":"In addition, there are certain types of IOs that represent the interest portion of a particular class as opposed to the","page_number":97,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"380c67b3-2e4e-490c-bb54-f73bcf29041f","block_type":"box","text":"interest portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":97,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"6d416d32-59fb-4d7f-b62d-252433bead6c","block_type":"box","text":"because of the characteristics of the principal portion to which they relate. As a result of the above factors, a Fund","page_number":97,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"8ed5b99c-54a5-4d60-8f1d-9b4045068487","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":97,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"84ed9830-4ffb-420b-87d7-df909e3639fc","block_type":"box","text":"will be matched with certain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":97,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"4c415ab5-3eab-42e4-8c39-9336e205d883","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":97,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"37870fe0-7f98-4d36-94b6-04e8cd2026f0","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":97,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"f1c655c6-6908-43db-884c-7c578b128254","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":97,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"1049ae86-1547-4e00-9f5d-5feeb063aa60","block_type":"box","text":"Tiered Index Bonds.","page_number":97,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"05f884ad-9682-40f4-ab3c-a99c157c1e44","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a tiered","page_number":97,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"556b96a3-e3c7-4fef-89f0-35298985844a","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":97,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"15ef9778-e25e-4335-8874-f610b6677f37","block_type":"box","text":"II-54","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ce4ed271-7beb-454b-9fb2-55522992392f","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"93094caa-1b96-4ba2-90c8-dc2320fec40a","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":98,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"7f659097-b162-4a9d-8749-fa959a6ab281","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":98,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"dfae8354-0263-48c8-a44c-7a651ff5fecc","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":98,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"d97808ae-a406-46d2-963f-3ac6cfcb3f12","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":98,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"4b482d80-58d6-4c8e-9eff-30c263929ac0","block_type":"box","text":"that of a fixed-rate bond.","page_number":98,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"cb2edbd6-543b-4419-b759-c9682be8f0be","block_type":"box","text":"TBA Commitments.","page_number":98,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"4089fe0c-796b-46d7-a785-7e1f5f6430ff","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":98,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"a0aef9a0-e113-4aa9-b0da-be65662a77be","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price,","page_number":98,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"c0e82b14-4ba6-4d46-bda3-70be46d2e847","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":98,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"60a033c2-503a-4104-ae48-6ff6b97a8c08","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":98,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"2f04cb63-009f-4d19-a7b7-948fe33913ae","block_type":"box","text":"mortgage terms. When the Fund enters into a TBA commitment for the sale of mortgage-backed securities for a fixed","page_number":98,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"a1d48c8e-4049-45b5-b0b5-28addbfc6fbd","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":98,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"e8fbdc35-62be-46fc-a29e-87cf33817bc9","block_type":"box","text":"short position in such TBA securities), the Fund may or may not hold the types of mortgage-backed securities","page_number":98,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"0b487ebf-0cc8-4152-ab5a-8fcec8c93d9b","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":98,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"b7f70df1-a5ba-4e20-bc70-49ba1e1e697e","block_type":"box","text":"below.","page_number":98,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"a0662217-15cd-44c8-bcba-518599ae0311","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":98,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"f0aaa3ae-72ce-4e14-9bc3-013c99022609","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll transaction, a","page_number":98,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"57c95090-3acf-4818-81de-3607ae8331ab","block_type":"box","text":"Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":98,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"a4dc42c5-9742-4443-ba82-67318337e95d","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":98,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"dc9690bb-dd59-4f78-8188-0ac67fb298fd","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mortgages collateralizing those securities may have","page_number":98,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"185e819f-f47c-4cd1-86e0-d30fb2dee4f2","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":98,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"96528820-db1b-434f-8655-8f09c6c9b76a","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":98,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"237e61d8-070e-432a-a9cc-0001ac074c57","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":98,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"7effb86e-51e0-47ac-8dd5-3aa888e25259","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":98,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"daf64e86-0c3b-4b4f-af7f-42a156ad976f","block_type":"box","text":"securities sold as part of the dollar roll, the use of this technique will diminish the investment performance of a Fund","page_number":98,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"b5c9e1b4-3ba3-4227-9786-c83670cd59de","block_type":"box","text":"compared with what the performance would have been without the use of dollar rolls.","page_number":98,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"d6254bf8-c6ef-483d-ae78-1c9215a5edc5","block_type":"box","text":"Each mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and a","page_number":98,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"302a067f-7468-40ab-9deb-f77cc92609e8","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mortgage","page_number":98,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"16829ed7-f3ef-456e-8436-8079f5ac5b40","block_type":"box","text":"dollar rolls may increase trading costs and portfolio turnover.","page_number":98,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"8f6d93f9-afdd-49d3-9b4f-5b04c33a9f25","block_type":"box","text":"In the event the buyer of the securities under a mortgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":98,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"c603cfc5-983b-4344-bf93-2a94afdc8fc3","block_type":"box","text":"Fund’s use of the proceeds of the current sale portion of the transaction may be restricted pending a determination","page_number":98,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"d7f208c5-683f-44ee-92c9-c1732ebd1ed8","block_type":"box","text":"by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":98,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"ec6fff29-f936-4a4f-b579-a6dab0be8f9e","block_type":"box","text":"securities in the forward transaction.","page_number":98,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"c1889daa-0dd1-429b-8fc3-7cdacd67eae9","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar rolls may","page_number":98,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"df97f99e-1c06-43fd-8214-37300844c5b9","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":98,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"ec5f59de-2e16-4cc8-b0b2-d93e0543a180","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":98,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"008d9dec-098d-4864-b492-95eac7b906d3","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":98,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"a8a49244-0575-4d75-86a9-2ad272339adf","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":98,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"6b2fa2db-28d7-4c58-9f33-cec0400aa542","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":98,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"313fb6ec-f37c-4725-91e5-44cce5a576f6","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":98,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"8c0f5d05-19b5-4161-a35e-b78bc9c24000","block_type":"box","text":"securities (","page_number":98,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"e9be2342-a1af-4762-9166-b159114ddadd","block_type":"box","text":"e.g.","page_number":98,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"7a1585f6-e961-4dc6-8316-574cc8a5aeed","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":98,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"15f2546e-014b-4f0a-8c67-e5f1b090f560","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":98,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"a9daffa6-57ff-4582-9f48-80042a1c3f7b","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":98,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"06ac5401-8e25-422b-b1ae-d2bec64acaa9","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":98,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"61d67ec3-51f7-4ed4-93cb-b48d7295c958","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":98,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"6d1dac5d-7a87-45ec-bcd4-08d295b8f779","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":98,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"395b5679-fb8d-42a4-92da-f1658695d51c","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":98,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"ec16e22e-6a60-445f-bb87-fe9024d82082","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":98,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"7eddaca9-1ae9-4d4e-beae-9d0af5f70b65","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":98,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"09b3418d-02af-4d10-a947-03b7285a12b7","block_type":"box","text":"securities are derivative interest-only mortgage securities structured off home equity loan transactions. NIM","page_number":98,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"beaa81e4-264a-44b2-8ad2-d0eecc2a33f2","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":98,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"c18733c5-f4be-44fa-9582-b5cd77783de4","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mortgage-backed","page_number":98,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"901395b8-bd71-4493-87b8-b0b8a3b96da8","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":98,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"82caf512-bd6c-4afb-b2dd-7cd3cd64e005","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":98,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"0e20e551-0cf9-47a2-8b21-afaf7881f2ee","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":98,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"72e6571e-b63a-493d-8235-7eec1673d841","block_type":"box","text":"Municipal Investments.","page_number":98,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"7555886d-7d2d-4445-8180-29735d27b2c0","block_type":"box","text":"II-55","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a6306aaf-f6c7-4009-97da-15d2dbec7888","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d45a266a-6f3d-40f0-afe3-6de5a782c653","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":99,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"0a9f75c8-740b-4ddd-aaec-313bdfd7d058","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":99,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"846ae9eb-81f2-4f21-9221-0ee7765b0b0f","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":99,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"85c3fad6-08a6-427c-b8d4-55ab09e55054","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that","page_number":99,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"94cef64a-e906-46ae-9585-44475a78c61b","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":99,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"c2acc7ee-8fdb-4e29-a9ad-a65244418e4f","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":99,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"daea12a4-fcad-4763-abe3-4a31774d418b","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":99,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"110bd977-e2af-44e6-a262-f00c70a1ecc0","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":99,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"02bc9807-5015-4622-9219-4e161406a1d7","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":99,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"8e38466a-b39f-485a-abd1-13b5a401a607","block_type":"box","text":"or state and local personal property taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":99,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"5fa6bc1d-bce6-4da2-8eef-45f1bf6d0147","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interest in one or","page_number":99,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"5cd2a998-ce08-474f-9ab9-d9f4e2e772b8","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":99,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"fea76d3b-0000-438e-be55-89c11262ed46","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":99,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"64d92c66-86b5-452f-b9bf-ed8e04ff5dd9","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":99,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"fc0a5f8a-56b3-41f8-8863-695400eb345f","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":99,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"6ab8d4a0-0c50-4042-bf4e-956550d0ae38","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":99,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"8d43f4f8-8f9b-4c34-b19d-f9bb4b4e499d","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":99,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"4518ca94-2f41-4a1a-b9fa-0206dd019134","block_type":"box","text":"exempt from state and local personal property taxes of that state will be considered “State Municipal Bonds” for","page_number":99,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"a38aba74-9122-41de-9f1e-81f46acf8531","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":99,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"98ff8c22-5ebd-4e61-b93f-6f50c3a55709","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":99,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"f8749981-33f7-4c6b-9767-ca31a05025e6","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":99,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"7646bde0-0f9b-45ee-b4c7-9f3ed29ad32e","block_type":"box","text":"The risks and special considerations","page_number":99,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"8bd19059-0542-4e2a-8ec7-a3efe1e29574","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":99,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"0e4042f5-8acf-40c7-8886-0050b716918a","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the particular product. Certain municipal","page_number":99,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"2a8ccc9e-65cc-455f-8a37-ed105e3128b1","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":99,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"b9d08363-aafa-4efd-98e7-7cc8fc7fabfc","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncertainties in the municipal markets as a result of","page_number":99,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"5a4d9356-370f-429a-a4de-5c6b941b111c","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":99,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"23752f22-55cf-426d-9a40-1553cd3fd0ad","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and certain provisions of the","page_number":99,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"6f49b7e8-f690-4228-9f4f-5f75f0998498","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Further, the application of state law to Municipal","page_number":99,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"ceeecbea-bede-4f75-a907-d27bbf62340c","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":99,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"56d36316-7be0-4f0a-b6eb-4dcef2a8c5ce","block_type":"box","text":"uncertainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":99,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"0c9c2ff4-de48-43ab-8a5d-5c2c9e02d51c","block_type":"box","text":"II-56","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"76b46976-0fae-4acd-85e1-75438daee359","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f5f47d04-124a-49eb-915f-a5b8d2b14600","block_type":"box","text":"Description of Municipal Bonds.","page_number":100,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"aa8bd365-12ab-44f2-9b2b-916c4d250ef1","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":100,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"f6e44cdc-dbec-4af5-ae6f-6a34571aea01","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":100,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"d2acfaff-c461-4a83-822f-3f96e8261625","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, certain types of bonds are issued","page_number":100,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"78fd79f4-a606-4565-8bdc-ed9a483e8e6c","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including certain","page_number":100,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"bda4e2c0-9228-482a-aac5-0191c63b31d8","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":100,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"26bb67b9-fed6-4fb8-867c-3504d535c565","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":100,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"f41f814f-30b4-402e-af1f-913929f75a25","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":100,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"8ff13076-1308-4cf2-9f8e-231d3d158345","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":100,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"d10d06fa-28da-4000-8251-29ebbe039dd3","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":100,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"c93fe953-f597-433c-a61c-de2af1e90afb","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":100,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"81a51d01-0b68-43b3-a0e9-fffdf0ecdf1c","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":100,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"0115d091-826e-4c75-9477-d7cdc620df9a","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":100,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"d521f32c-02d2-4c5f-8bb3-6876e74fba7c","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":100,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"cf425b83-1970-4ac7-99ef-cb6b38599902","block_type":"box","text":"General Obligation Bonds.","page_number":100,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"262d4ea1-4148-47af-9a4f-3e982b81eae0","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":100,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"aa200825-d566-4c9b-a59b-c520b8911506","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":100,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"408a37cf-bdf8-4ffc-b26f-2fa947223f36","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditworthiness will depend on many factors,","page_number":100,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"994f3cc4-4878-4852-944d-c42e6f07b72a","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":100,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"967d2f1c-0a80-4761-96b9-d15b65c60c58","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":100,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"1a2f3271-6e98-480d-bc4c-f1b52e971d6d","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real property taxes and the extent to which the entity","page_number":100,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"13e87f8a-544e-4600-bf49-2491489251b6","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":100,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"a3ad0173-b99b-43c7-9bd9-1c41b0806ceb","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":100,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"68c57aed-ce95-4032-b7ee-3daa87f20793","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":100,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"9d2436f9-9fc8-43e4-8d65-f5f13e511636","block_type":"box","text":"Revenue Bonds.","page_number":100,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"e14dfc55-7546-486b-a068-0326933c97ac","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility or class of","page_number":100,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"def9b6ce-3aeb-4cea-97cd-63ac9f52c989","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":100,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"b1a95e99-37d6-44d7-84c0-74008950b522","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":100,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"e1bfa096-906e-4255-a4ea-c0ca748a9847","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":100,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"d693aa0a-7573-4b8c-a404-1d4f98be3099","block_type":"box","text":"viability of such facility or such revenue source.","page_number":100,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"37068ade-759a-429f-84bb-f8ddb004549f","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":100,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"981d27b5-7812-4a3d-bf20-a452bda5f8c9","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":100,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"e662a74a-3247-4c1f-be37-db58c9cc1f22","block_type":"box","text":"properties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":100,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"9258651f-fffa-4891-a1f6-63323dbd075d","block_type":"box","text":"recourse against the property owner, may be junior to the rights of others with an interest in the properties, may pay","page_number":100,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"430e0329-e9b3-43a5-9550-8178b2e9008b","block_type":"box","text":"interest that changes based in part on the financial performance of the property, may be prepayable without penalty","page_number":100,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"e1314cd2-2700-4c7a-ae3d-4a9f3ac8b5cf","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":100,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"cc77973d-8a7d-4281-94f9-3598bc3ed55e","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":100,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"5d867ce3-e13f-451b-bc3f-02227b4485d8","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":100,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"ca81e574-b088-4d1e-b3a5-e8dcef696a46","block_type":"box","text":"PABs.","page_number":100,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"5c2072c9-6af2-4525-9a09-b0f262f97105","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":100,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"6b40273f-07a0-4efc-9cef-ac31eb7bd865","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":100,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"6eaaebce-39b6-48ff-9c5a-cc647a8851c9","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":100,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"2ce6f359-38d3-487a-bb06-71347f719f50","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":100,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"0b7abf72-486f-4de9-a1bd-0584f2f8aebe","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":100,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"cb439506-4919-46b3-82e0-b7cb8e99857a","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":100,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"6fb7d68a-c878-42e4-8d5d-649ce9eceb26","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":100,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"683493b1-b4d3-42f0-9581-a25abd9696c1","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":100,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"7e9e8ac7-a557-4e19-a44f-c1b9c5067113","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":100,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"29cc5878-e009-4245-9790-12d368d20a85","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":100,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"3b9f3e66-e62a-495e-9627-b160d63af4db","block_type":"box","text":"the particular facility being financed.","page_number":100,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"53b3e6e6-1b3e-403f-b5f6-3d1252cda7f9","block_type":"box","text":"Moral Obligation Bonds.","page_number":100,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"5fffde8d-f2ae-4ece-99b2-3bb6545e5043","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":100,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"6e14e043-87f3-4f77-bc04-310a07d88a3e","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":100,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"d243fa5a-b180-4213-81c5-61c97cda8248","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":100,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"74b6db83-7a15-4fc4-8c22-ff2ba70b5874","block_type":"box","text":"that issued the bonds.","page_number":100,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"e5f7f129-2549-4007-b7cc-55acfd81b746","block_type":"box","text":"Municipal Notes.","page_number":100,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"1d72b11c-4023-4571-a473-2d65f5a7fa5f","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim financing","page_number":100,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"77efdcdc-7c78-407d-af40-4c386af8f335","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shortfall in the anticipated proceeds,","page_number":100,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"4d88dba9-8687-44a7-beea-7c590a8a531c","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":100,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"a7826c26-848f-427d-8f76-a903bf814b59","block_type":"box","text":"II-57","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f9074014-83f5-42c3-9524-95e1c3fec917","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8c109036-915b-40bd-9c2d-505bd2640502","block_type":"box","text":"Municipal Commercial Paper.","page_number":101,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"1dd99f39-5917-4dd8-b8ff-6ad042be3812","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet short-term","page_number":101,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"f2638c32-54c3-4b8b-9acb-03ccbecf28fb","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":101,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"92380f73-d5f4-4f89-afbf-c8d0868cfd76","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":101,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"acadf02a-d7fb-4582-b8fc-f296c6344423","block_type":"box","text":"Municipal Lease Obligations.","page_number":101,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"bd7431ab-33f1-433c-b639-f06eb8daf425","block_type":"box","text":"Also included within the general category of Municipal Bonds are certificates of","page_number":101,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"f51ad488-37fc-445d-8a21-5bf779554378","block_type":"box","text":"participation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":101,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"64fc5a2e-7362-405f-8bd2-e4f6b420c641","block_type":"box","text":"equipment, land and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a","page_number":101,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"b49aeaf5-a985-48c9-a1bb-f044628d2ce2","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":101,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"084f74ed-6cf2-48b2-b788-c23750038555","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":101,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"cc489884-0ba3-4300-bb0b-a9b7caf9cff1","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":101,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"d891cd41-bf40-45a7-aefa-af544e59fff1","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":101,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"c6bc9714-4661-496c-b3f6-c9ac047624c2","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain “non-appropriation” clauses,","page_number":101,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"7ce01f90-13ec-4df6-ad6c-e674ebde7c7e","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":101,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"1e582c82-6f5d-4888-a809-222880dbde6c","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":101,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"03e0bde1-80e3-4842-b476-baceda022519","block_type":"box","text":"secured by the leased property, disposition of the property in the event of foreclosure might prove difficult. These","page_number":101,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"6c9784f5-969e-42bd-8d9a-22024f4effac","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":101,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"72d7f93d-be66-44af-bd19-49bb45e5023a","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":101,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"c8e07ddd-e12f-4a19-a334-98a7bff813ca","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":101,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"d053f8ee-2903-47e6-a0b3-83945ec0cc4a","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":101,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"31e30a86-d581-43a9-a5dc-91a98c74ec44","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":101,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"1d794832-499f-4448-92d5-3d0d134b90b3","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":101,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"a067d781-b2b2-42fa-b44b-da33a8d311a5","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":101,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"264d5356-9c0f-4015-830a-f0963e985a3d","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":101,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"01c5cf10-de0f-4a7f-ae7f-76eea8408d1f","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":101,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"47572149-ff08-45a7-b747-4049cc06e0f9","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":101,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"619b8f81-8784-4bdf-8a74-2951c21b65ed","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":101,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"4b888cfe-92b0-4764-800a-a18a8633b99f","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":101,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"af59a1c6-6857-4fbe-82aa-ceafb6047aab","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":101,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"eb884baa-0199-421b-9e04-5d4b5d9a18f6","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":101,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"ba8216e5-4074-4fe8-a436-db49bfdbcf49","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":101,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"82fa5157-743b-48c2-9f25-4f3878db873d","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":101,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"d87d0c08-a262-4895-9dab-5a47bc4d7add","block_type":"box","text":"subject to certain limitations on its investments and on the nature of its income.","page_number":101,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"b6eff3dc-b679-4e6a-92db-91a43cbef4ad","block_type":"box","text":"Tender Option Bonds.","page_number":101,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"5027b77c-698f-4d3b-893d-4707eed7c9a1","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":101,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"b77339ce-3b8f-48e2-9707-d7404a3c9d20","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":101,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"075ce6b0-4536-4faf-83ea-9a69f84af5ac","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":101,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"0ebf51c7-d68c-43a2-8661-7e70aad12698","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":101,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"66b5564f-20d1-47a9-a677-c6677fbaad73","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":101,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"95142879-b0ff-408e-a923-d7bb5fe8467a","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":101,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"0113d08b-e555-48f4-9cb9-8163a5288db0","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":101,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"06782d34-4050-4de0-a526-036efa7031a5","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":101,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"74289640-c31f-4de6-b341-d38e0ad8265d","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":101,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"7df6c839-18f2-4522-a69f-94f42ef113a3","block_type":"box","text":"beneficial interests: short-term floating rate interests (“TOB Floaters”), which are sold to third-party investors, and","page_number":101,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"1cfc1514-285f-4fed-8054-bf64224bd90c","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":101,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"6c7960d0-b45e-49d6-b017-a237579fd468","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":101,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"d1327f6b-e1f7-4d9d-bc17-dfa63c25adad","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity support arrangement from a third-party","page_number":101,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"458b1c34-e0b4-4194-b6c8-2a6614527347","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":101,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"37eb7247-6e26-4ece-b9b6-8cfc5bbbd586","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":101,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"f35aa178-d3df-4c2c-8784-131c9e70ff83","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":101,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"7679199f-3025-4e7d-9f68-a51e96595603","block_type":"box","text":"certain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":101,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"29a7364d-8052-4cfe-8ba9-78d1b9efa10c","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a portion of the TOB Floaters sold by","page_number":101,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"ee550d70-a7a5-414f-8769-0a715ce9fa27","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a proportionate amount of TOB Residuals to the","page_number":101,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"62fb783f-2861-4f94-a3b7-366b469a795a","block_type":"box","text":"TOB Trust in exchange for a proportionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":101,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"49fc4ac9-4358-4056-8822-d6c377132fe1","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":101,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"c041a5f8-887a-4259-b944-f00545975d84","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and","page_number":101,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"78b258b2-3521-4d98-b13c-557c9e3fedad","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in proportion to their","page_number":101,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"709aefb5-3453-458f-8c9e-d52340962407","block_type":"box","text":"participation in the TOB Trust.","page_number":101,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"38a991fa-272a-445e-b050-39d287e20921","block_type":"box","text":"II-58","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"18ed7bf4-99e2-4bb4-bfe4-62d082005162","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e97f0df4-f98c-45b0-ac08-aa4ee72f3c32","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain cases, when","page_number":102,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"9f971fad-02b2-4dfa-a714-912b4b3f0dcc","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":102,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"74027af0-45df-4f8e-9640-3e9dc2b15898","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":102,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"84cacd57-5ab3-47ca-8c25-e70b8b2e5a8f","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":102,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"fdbb19bd-a22a-4265-82a1-fdb7289f5b5e","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":102,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"df1d5914-7ee0-48b2-8f45-95ce1eaad2db","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":102,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"5a51a597-ee9b-4396-9758-937172250b5e","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a proportional","page_number":102,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"0d76b80e-edca-487d-8100-cc2845215cdc","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":102,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"e605c226-9254-4615-a5a0-06b234b278fe","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":102,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"65616c51-625c-4373-ab5a-a98212f1d058","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":102,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"c7f56d4d-00f4-4f81-8126-56c98831274e","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":102,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"89a297cf-08aa-4b40-acfe-950b59922ce9","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":102,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"b3c4d98b-501b-4d7b-ba3c-012653fe3fe9","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":102,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"5ec1f585-997b-4159-9ff7-ce58766125e4","block_type":"box","text":"issues.","page_number":102,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"e876a881-bdbd-4707-b6f4-3638f0d37541","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":102,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"8dfd5f4b-aca0-4148-b5a2-ac595fcf4f96","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":102,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"95b7fc03-f129-4113-b010-8f2a76612a75","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":102,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"3d2b0381-1e97-400c-8f91-b415bfb8962a","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":102,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"38e3d1d1-d1d3-46cc-8e6b-c2063a305ee5","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":102,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"d099789f-9bad-47f7-9d95-e850c2d63574","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":102,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"8614e070-19d3-497e-bb47-4cadd204f740","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":102,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"5465f7b1-95ec-4c5b-a23f-a75cee765dcc","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":102,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"a3337f60-0b10-41bb-b456-c4b05ac57e2b","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":102,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"c81c8792-3e4a-45ea-ae41-56558e411a28","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity support agreement, and a substantial decline in the market","page_number":102,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"93ab2e0e-5ccb-4a42-ad6d-5c783270d665","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":102,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"0651177a-6691-4436-9fe2-e93828140671","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":102,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"bdf5e44c-bd51-4d96-bda6-3871e7ec5b3a","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":102,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"ebf223f6-b110-4a4a-8803-3d8dd2d65317","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":102,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"e9e2cb35-e509-4df5-a07f-e76914286ee5","block_type":"box","text":"i.e.","page_number":102,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"01a46570-ec74-442e-9f78-30852bfc5777","block_type":"box","text":", the Fund). In contrast, in the","page_number":102,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"911f13b4-6299-4bfa-b777-c75acbb85f14","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":102,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"15fc3714-e05e-4667-aa0d-1182fba2aca0","block_type":"box","text":"rata in proportion to the respective face values of their certificates.","page_number":102,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"bd562bfc-a824-4728-8045-43bdfad13102","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically supported","page_number":102,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"2aa87e84-bfeb-4987-8385-50b728164b7c","block_type":"box","text":"by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity Provider”) that allows","page_number":102,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"8bb09e84-9686-413f-9713-58154aa6e608","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":102,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"72ff2dca-4af6-41bf-a02a-6432170dd36f","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":102,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"538388d0-16fb-484a-9057-fcb92baa5453","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":102,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"387645f4-205f-48a4-8d11-0b6ffdd50e70","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":102,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"c9c9d01c-ab9a-4d17-9f05-14d9ca53867a","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":102,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"95352108-a7d7-49ce-988b-6843c3c62de8","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion of the Municipal Bonds","page_number":102,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"cc5cd5fb-8b9a-4afb-98b7-805ba3f543ad","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":102,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"97fbc264-d052-4edd-820a-c0ed97139bb5","block_type":"box","text":"liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":102,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"adefde5f-df45-44c7-9189-aeb125cb2da5","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":102,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"7abbe1fc-52ef-4a62-970a-b1b82b6efd2f","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shortfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":102,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"ae6e03bc-bfaa-4b14-b122-1006cda57186","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised funds","page_number":102,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"064c21af-f54c-41ab-bb12-54754396c4a7","block_type":"box","text":"participate in any such TOB Trust, these losses will be shared ratably, in proportion to their participation in the TOB","page_number":102,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"1632a6c3-baf2-412c-aa83-f336c9ce7587","block_type":"box","text":"Trust.","page_number":102,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"2ef661b6-e450-4e2e-b7bb-0f7c213ae911","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":102,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"db1ff8bb-996a-4f45-bf05-ececa1ad85e5","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":102,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"af89acd1-232c-4d90-825d-035579b191cb","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":102,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"dd371b5d-75fa-48c0-8918-8b893378825d","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":102,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"c99a93b5-7dc8-4340-9808-543b524b6411","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are reported as expenses","page_number":102,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"38b6a333-bc4c-4c91-8d9d-4c13896db8f5","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":102,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"74456ddb-38bb-4998-96ce-ab56d72671e3","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":102,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"5b9f6ad4-f3c4-4ee1-9849-f4b334f627de","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":102,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"687ee6e8-bd2c-4153-9882-cb251413877c","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":102,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"c83325e0-4f7b-49b3-a4d2-7d96d7002796","block_type":"box","text":"II-59","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f1acb7ba-55be-45e6-b9f5-932cfdfd6ef9","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"feddce50-b021-42d8-9f86-00cb7d652117","block_type":"box","text":"Since the tender option feature has a shorter term than the final maturity or first call date of the underlying Municipal","page_number":103,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"ee137fd2-c42a-4b81-ab77-db63297610ad","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":103,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"02e78844-8163-4972-ae10-760ff3632e83","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":103,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"b565137e-0cfe-4760-ac0a-29342919b1ab","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":103,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"186527d6-8720-43e6-8372-ad2083209ebd","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditworthiness, of many major financial institutions, some","page_number":103,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"08e3632d-4d3d-4378-8944-59aa566aafe7","block_type":"box","text":"of which sponsor and/or provide liquidity support to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":103,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"e5e87a8b-323b-44a7-955e-9a830c18de74","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":103,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"941cbbef-25e9-44f5-85a4-9767232c50d7","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":103,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"676e5815-e55f-40d9-af3a-f2e49e42b4c6","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":103,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"0ead5297-ffbe-448d-b3d0-2b7ee16cb679","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":103,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"54b4c851-5e60-4cd2-b62c-684a9d84d34e","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":103,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"caa94f93-ec3c-423a-9936-db5bf2bacba2","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":103,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"e12f84ed-0094-4a84-acee-4a7f6561598b","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":103,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"4d7533a9-4cd0-4320-abd7-2745fea75827","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":103,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"eb14fdfe-c4c3-4617-93dc-07e26eaffb3a","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":103,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"b3496e86-23b2-41bd-ac74-73b4b4ec315d","block_type":"box","text":"Protection Act (the “Volcker Rule”), market participants have developed a structure for TOB Trusts designed to","page_number":103,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"effa4991-8721-4f9d-bbfd-3a505daf1b33","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":103,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"62763780-1b22-445f-b30e-6e9f56734fc0","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain","page_number":103,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"be8de163-41a6-49a2-9481-19536823fafc","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be performed by, or on behalf of, a Fund. A Fund","page_number":103,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"27999c27-7283-44dd-9d02-180bfe3906ce","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":103,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"9d007655-9756-4614-82a8-7b6e5dc18b5e","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":103,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"bb336533-863c-467d-b86a-453576dd32a9","block_type":"box","text":"this TOB Trust structure, a Fund has certain additional duties and responsibilities, which may give rise to certain","page_number":103,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"cae00dd2-2ba9-4be0-ad06-12aada50584b","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":103,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"25d7e3b5-7b06-4471-8d3e-5e9cb9945cb5","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":103,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"f3caf31e-3dce-468c-bbb1-00270475f8b1","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":103,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"038a039a-d28f-4a5f-bda8-20fed5065e17","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":103,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"2a9338c9-a767-4628-a82b-da7ba22c4adb","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-party investors, and the proceeds of the sale of","page_number":103,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"224ae43e-1e63-49c0-b760-7a4a263250c9","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":103,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"348658e0-abb4-45e0-97b8-30655b4203cd","block_type":"box","text":"i.e.","page_number":103,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"add4e844-225b-4b44-b0dc-e62fa768da59","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":103,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"aed0157c-c146-4646-9f74-0004b9e66486","block_type":"box","text":"supported by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":103,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"53db309d-140e-4add-ac38-1a92ffd72767","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":103,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"7b82caed-a5d0-41ea-8e5a-7d12403c2543","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":103,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"7cdb36a6-e5d7-4eb0-95a7-414c2441aa1d","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":103,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"c55b415b-6649-4634-8579-0418da4053e7","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":103,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"ad35cd6a-5eea-467d-8f08-4a36da95e807","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":103,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"63f4cf8a-beb2-4f93-9106-e2affe2ddadb","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":103,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"e52a513c-87ea-4232-b840-7d282b413c3e","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":103,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"61a19b1c-2f25-4de2-8d58-faf740573645","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would generally be no","page_number":103,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"50172c08-11b8-4efe-9633-de69c14457b8","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":103,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"3f326bdb-b521-4708-bbd0-fe68e36896e5","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shortfall if it holds a recourse TOB Residual.","page_number":103,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"3e791ce2-5bbd-4a1d-a1d8-e92b1ab4572f","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":103,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"f4c41d79-cd59-45e4-bc5a-e8c57a46df36","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":103,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"31c119cd-b5f7-4541-b425-9682e2073a0a","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s Municipal","page_number":103,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"de9dbb7d-c2fc-444f-89e9-9756f0fb61d6","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":103,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"48ef5d83-3d05-4523-a177-9dfd5cc41723","block_type":"box","text":"increase the costs of such transactions in certain circumstances.","page_number":103,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"8aaa049d-a34f-4ea5-96d0-e650453a1761","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":103,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"a1fb533e-dda7-42dc-b614-082811d8b577","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":103,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"28b553c8-9d6d-4441-b503-a19e53a0bc1e","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":103,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"972fedb7-05d1-4975-8c5f-dbf16e1b28d8","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":103,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"c63468df-5b29-4644-a1c4-e23687ec28f2","block_type":"box","text":"market is not yet certain.","page_number":103,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"d60421ff-a0c2-47ba-99d5-dbed5d58fcfa","block_type":"box","text":"Yields.","page_number":103,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"2dc14b81-6de5-4570-b409-24a013cfb2f9","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":103,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"598df574-26b3-4455-975c-92115b38c010","block_type":"box","text":"money market and of the municipal bond market, the size of a particular offering, the financial condition of the","page_number":103,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"2a073f65-ce21-4f09-9075-0f9019fcab8e","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":103,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"a9b1d45b-6189-4bce-b4f7-1fa1d0711ad2","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":103,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"a4612c45-4260-4329-bad5-916047b7cdba","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":103,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"77815996-5b71-444a-894b-87b4d0426d42","block_type":"box","text":"II-60","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9787e3b7-1c75-40aa-84ac-566551484835","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"300644bd-ba0b-4130-833d-e09b88afad40","block_type":"box","text":"holding Municipal Bonds, both within a particular classification and between classifications, depending on numerous","page_number":104,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"bd794d63-a54d-4259-a149-bffacd7be1fa","block_type":"box","text":"factors. Furthermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":104,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"dafe91e8-de03-4c2a-aa9b-b4b46e6e9570","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights","page_number":104,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"ac1195ec-240c-4894-a33e-ad4c3bbbe1a1","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of certain remedies.","page_number":104,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"04652242-d683-4442-8fde-d1a5ba41860d","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":104,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"34b1bb9b-8a93-4b1e-aef5-f242132b3c25","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":104,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"48bc0b4b-3d72-442f-9baa-2f6ce3149513","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the part of the holder thereof to receive payment","page_number":104,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"13227856-58f3-4589-8def-3e96223a9a87","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a short notice period not to exceed seven days.","page_number":104,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"5d71b459-c6a2-4437-87ed-3c64f4e1a755","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":104,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"be6ff5e2-217b-4275-9998-5e8b123f9f56","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":104,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"37877ce5-f8c3-4ca1-ae42-0cfb4e5f37fc","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":104,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"0955321d-08ca-40ec-9542-315b2e8ae67b","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":104,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"659a8f37-aeef-4942-9c6b-1ce64467f97b","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":104,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"65e274d1-4940-45df-a876-b98e0a854d7b","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":104,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"5fa7159f-99dc-4b00-8a56-55251708de77","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":104,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"5a17177f-c2bb-46a7-a015-d864afb4c2e1","block_type":"box","text":"opportunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":104,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"ce9a97f7-8146-4e3a-8788-4a788feb0c1f","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":104,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"b2c49c7e-a99f-4ad1-bf25-8a59438ccb17","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":104,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"2722d238-03ca-407b-966e-e74f2b4c54af","block_type":"box","text":"The Municipal Funds and certain other funds","page_number":104,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"a06ab5d9-5bb8-4b08-ac76-f8ebb0fe8bf6","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":104,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"9bf6bed9-10f1-4bd7-8858-780ef1d94069","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":104,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"4a7fdc1e-ebc1-4c3d-8c10-904cb7904b79","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":104,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"aa0e833b-bf04-4677-b7b0-b5718a7dd00e","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":104,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"89dfb060-8f9c-4b8d-80ab-48888b1c2f44","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":104,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"1c89d6b6-1bc3-4395-aba2-ed22700223e6","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":104,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"3407f0fc-4cc2-4a8c-acf8-ccc4c8aee764","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":104,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"9845d1e3-a2f6-4103-ba3b-b39cec8d4eb9","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":104,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"b401ac63-40e0-4921-ba79-5e9dd96d2448","block_type":"box","text":"assures performance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":104,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"734f307a-7e8a-41ba-9100-a17f3d78dd72","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":104,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"ee2ded64-733e-4f72-b1ab-b09a03b13075","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":104,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"b5697aff-5809-4a75-a261-19d1619f8280","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":104,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"551a9ff4-e511-4f99-bf18-f1b78c786d21","block_type":"box","text":"effectively all or a portion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":104,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"c8d86d86-f8b1-4587-a085-3f8812f7954b","block_type":"box","text":"depend in part on the degree to which price movements in the index underlying the financial futures contract","page_number":104,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"fba8afac-263e-484f-a5ca-c6cfcacc76aa","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":104,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"a3f81dde-f4ec-4383-a48a-ddd7114800c5","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":104,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"65a0e10e-a11c-4301-8cb2-16bc4d761dca","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":104,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"e8a5297e-7ff6-4572-84e8-f2537917d495","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":104,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"04355301-24d7-4500-98a0-2e86c851d15b","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":104,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"c506bccc-2d11-4905-9efc-90bef5d897c7","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":104,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"0d1c6cc7-f144-4feb-98ef-209746934c51","block_type":"box","text":"affected by similar factors and the risk of imperfect correlation between movements in the prices of such futures","page_number":104,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"34130b9a-c30f-4404-86f4-e26d4ce4e48b","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":104,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"f95d826c-cd76-425e-a520-dce09d395953","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":104,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"99e48819-8b15-4196-9fcc-0898452d6545","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to certain market risks, such as inadequate","page_number":104,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"aa2eda11-a205-4012-8a15-6fcd4db6c4ae","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":104,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"56ae1da3-e252-4a4c-97d4-4b5983a8babf","block_type":"box","text":"Call Rights.","page_number":104,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"d330a5c2-a423-43e6-90a2-4cbd0fe4b2b8","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a portion of such Municipal Bond","page_number":104,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"d8afeb74-bbe4-4615-abd2-f88b1bd52ade","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":104,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"4237a451-8976-4215-ab9b-3a861320671d","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to certain conditions. A Call Right that is not","page_number":104,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"5df4ecb4-310b-4a6a-957e-a49b55fcdc6a","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":104,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"05ae3f3b-d29b-431c-b76d-370bc0fd9aeb","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":104,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"37007276-ff92-4be3-b8f3-c6337c454d02","block_type":"box","text":"Certain investments in such obligations may be illiquid.","page_number":104,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"7e5d2848-bb30-4a54-b3ba-e839409f6fae","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":104,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"e7466d8e-2463-4e45-9cdd-0c8ff805f693","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":104,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"81d4f7b5-2ea3-419c-ac82-de0bc1563657","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":104,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"e0270a39-9a7d-49e2-a1ff-5a13e482b124","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":104,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"bd605dbe-b94d-4d1d-8d93-52b55d4a9ff0","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":104,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"c33bd6df-451b-4d3c-a7b9-a3d7e749695c","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a particular investment or portion of its portfolio or to","page_number":104,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"b707632f-0503-407f-bb3f-759b76507976","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":104,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"085dbe73-b0a8-4472-846d-1fb1597e1e03","block_type":"box","text":"II-61","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dfba1d3e-1b07-426d-a40a-e7c646c28ccb","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4911562f-3469-4df2-b592-6098ff3121e8","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":105,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"cf99d8f6-1669-4413-80d5-127b97da5bd9","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":105,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"1e6bfecb-7cdb-4892-9abd-6686b4161de6","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":105,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"987bed57-a4dc-41a4-b8a7-1d20e1608ec2","block_type":"box","text":"i.e.","page_number":105,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"d9657b82-b545-4715-a659-1f2aea0566a3","block_type":"box","text":", wide differences between short-term and long-term interest","page_number":105,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"5b24da37-7c08-4126-818a-e108a7e25c3a","block_type":"box","text":"rates).","page_number":105,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"3c6b535c-fb4f-4aba-b04f-8cc5d90614a4","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":105,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"a3982ad4-3f51-4ef6-be46-93d41dcbab41","block_type":"box","text":"another party their respective commitments to pay or receive interest (","page_number":105,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"8ffc065b-8d25-4489-870f-b254bf70c121","block_type":"box","text":"e.g.","page_number":105,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"58200f57-758f-4dc7-8efa-b18849a82c87","block_type":"box","text":", an exchange of fixed rate payments for","page_number":105,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"ac3b5ea6-ee41-4d9d-b2b3-e029fc5316c0","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":105,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"1651d01c-a9b1-45d7-8c6c-3f5d0e3f13b9","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":105,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"dc431841-8e31-41ce-a280-b2032752efc8","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":105,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"545768c8-9a46-4ee6-a92f-ce09ce7ffee7","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":105,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"9dbc5099-d38d-4738-8708-a445f6fcc6d1","block_type":"box","text":"with the same attributes as the swap (","page_number":105,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"81c37826-bc90-4227-8428-e8b08eafa1c6","block_type":"box","text":"e.g.","page_number":105,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"786adb8b-06d1-46f1-9b2e-f00c7652fe0a","block_type":"box","text":", coupon, maturity, call feature).","page_number":105,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"9452d0d3-3c16-4511-984a-2356ab378990","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":105,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"f4452f79-5df3-4fc9-bc44-30edb6177e47","block_type":"box","text":"to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular","page_number":105,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"a6c49122-3c95-4d8d-bc91-53a968485caa","block_type":"box","text":"investment or a portion of its portfolio as a duration management technique or to protect against any increase in the","page_number":105,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"514cbe81-e4b5-4053-ac3c-60eefbdd55fa","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":105,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"c416aeae-bd04-466b-8063-a0251945086c","block_type":"box","text":"short position, allowing the Fund to select the most attractive part of the yield curve. An MMD Swap is a contract","page_number":105,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"84bfe5e5-3944-4565-b1e8-5325a8933c7d","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the parties agree to make payments to each other on","page_number":105,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"daf96d59-d8a0-48c8-b824-f75d0ce492e2","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":105,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"ea90551d-3a45-45be-b244-f7721605002c","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":105,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"9b0e7e62-df15-4dc7-8b4f-0e7b9f615e32","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":105,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"063e86ad-6d9b-4739-8369-c3f122ada406","block_type":"box","text":"counterparty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":105,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"8333b029-27da-46d9-a02d-d9d6e6d1809c","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":105,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"b352ca39-0f23-4bab-8471-be823ad02730","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterparty equal to the actual level","page_number":105,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"be8729f4-51e8-4797-bd91-5342f0c1d27b","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":105,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"85bc7e5a-fb98-48a0-8478-9681837c447d","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":105,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"dd513ee8-fdac-4876-af48-c0e1bd52ed7e","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterparty in","page_number":105,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"ff9fc151-89fa-4f08-a20b-0aac616ee124","block_type":"box","text":"the transaction that could adversely affect the Fund’s performance.","page_number":105,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"c32692b9-f59a-488e-85de-9cf87fac2420","block_type":"box","text":"Insured Municipal Bonds.","page_number":105,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"11b5da44-d982-4794-8047-bf0db836f62c","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":105,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"010fadc5-f051-444f-9291-e59ed753c7aa","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":105,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"98e988a0-2758-422f-90e2-3e36bb8650cc","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":105,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"01b459e6-e97c-476c-9b65-226e7e10b907","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":105,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"4b927b18-2bde-46e9-8e1b-18e066c863a9","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be certain that any","page_number":105,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"d89c0fd9-6246-4599-aa73-9b407ccd2487","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":105,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"1f4128ee-fb45-46b1-99e7-cf66db046fea","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":105,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"86fc87a5-d8aa-4bed-9af3-586a6efb7722","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":105,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"e38211e5-6fc6-4cce-a2fc-3cc082e33646","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":105,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"df0c72e6-7c7d-434d-8f39-fa7aad4e1cdc","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":105,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"857d04a4-2346-44c3-80dd-21b1589aef29","block_type":"box","text":"bond could drop.","page_number":105,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"bb66395c-3a0c-4516-94ec-5e2163c2cb75","block_type":"box","text":"Build America Bonds.","page_number":105,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"3647d409-44e4-410e-936b-29037c2c9021","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":105,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"a181bf6e-8187-43c8-bce5-af236e7baa21","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":105,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"7f224d98-2b9a-4df9-a87e-24fd4a706afd","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":105,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"4dc7ffe6-453f-4bdd-9da4-5fb67e57f4d2","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":105,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"3bdaf871-91c7-4d79-88b1-259191e8d799","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":105,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"7f84f817-d6d4-4bfe-addc-a3ed0a71b234","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":105,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"2462eb1c-be12-45dd-b954-e608c2322d62","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":105,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"709b1a3b-2126-47fa-a787-54043e80a1bf","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":105,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"123f01fa-c2f1-40a8-9bfe-c045be1bb971","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":105,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"2ba9a142-458c-4f3a-b2c5-2f979b00eb23","block_type":"box","text":"must meet certain requirements specified in the Code), a “Build America Bond” (which includes certain qualified","page_number":105,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"420df20f-6e34-43ab-9b0b-2357bcd87c9b","block_type":"box","text":"bonds issued before January 1, 2011) or certain other specified bonds. If the Fund were to so elect, a shareholder","page_number":105,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"638a2368-9598-4841-8361-65d5b092e3f2","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":105,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"428e6c89-d618-4824-b6a2-8184bb26d303","block_type":"box","text":"proportionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":105,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"75d8d340-c001-43a4-9b2f-7b009696174d","block_type":"box","text":"Certain limitations may apply on the extent to which the credit may be claimed.","page_number":105,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"0b3b72a7-cf35-4581-a545-993ae7c7c97e","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":105,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"eea0ad92-971a-4548-959d-ed0da19afd69","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which may be in","page_number":105,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"98b21d50-475f-4940-83cb-e65502387d33","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, participations, beneficial interests in a trust,","page_number":105,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"abb44111-431d-4170-8323-850f37636e53","block_type":"box","text":"partnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":105,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"0790904d-2fe6-4267-afe2-ab4552154070","block_type":"box","text":"II-62","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c8550842-9331-421a-bb6a-69bb7db7560c","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"93dac1d3-a557-487a-9800-066c7ffccb6e","block_type":"box","text":"of the structures used by certain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":106,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"6a06a3a1-7b3c-4e80-96fa-0b7665b04a5e","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":106,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"efaa5b7b-4bd4-40c3-b642-fc6452ac0eb2","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":106,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"172df188-21b4-44ea-b3a5-803d3bd2ab79","block_type":"box","text":"municipal debt obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":106,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"f05b9a89-7715-469d-8820-e0f81cfe62af","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":106,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"8ecc729d-7161-40d2-a2b9-f2babd21543a","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":106,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"c152a72b-13c1-425c-b583-fb8487b71797","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":106,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"7c7b474e-d950-44dc-93a6-c7b721e746b7","block_type":"box","text":"their face value to the sponsor (","page_number":106,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"4017869f-91f3-456f-9244-45c99f307f29","block_type":"box","text":"e.g.","page_number":106,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"8171ebc8-1d5d-49b6-bc2f-a39df833e669","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":106,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"a258dc3b-9b14-4056-b383-0ff347316cf3","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":106,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"c0a3d2b0-0f06-4abb-a93d-850bd4e4f434","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":106,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"2af34578-2e47-4911-8606-b76d51a8c99a","block_type":"box","text":"A participation interest gives the Fund an undivided interest in a Municipal Bond in the proportion the Fund’s","page_number":106,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"3a705554-7b8d-4401-a375-e65980069475","block_type":"box","text":"participation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":106,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"48dc906a-3b80-43cc-9d4e-b9cdbe1b1c1d","block_type":"box","text":"feature for all or any part of the full principal amount of the participation interest, plus accrued interest. Trusts and","page_number":106,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"c7b1c556-29c3-4a05-bb70-97c561357015","block_type":"box","text":"partnerships are typically used to convert long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":106,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"bad1ae79-0327-44b4-b4b2-d09bc516f677","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":106,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"5957872f-66d1-4ed3-b6fb-c2d3fb3af113","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt obligations","page_number":106,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"06e1dacd-7a4d-408f-9e4a-0b0550909eaa","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":106,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"f432ce7f-5ad9-4e9b-92b6-2f84e8192b18","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of participation interests","page_number":106,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"ed6344e5-3908-4af4-972b-40c4ec077036","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":106,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"6f9a73e0-cfaa-4399-9112-6f7768b4b131","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":106,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"df199e58-21f9-4785-827a-e400094888b5","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":106,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"8e9fcc4b-921a-4af8-8ce8-e44650a70a0a","block_type":"box","text":"such opinions.","page_number":106,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"4b967bc6-6846-4872-945a-2902c6644837","block_type":"box","text":"Operational and Technology Risks.","page_number":106,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"011a1dc7-2bae-458f-8da9-9fea74296cd4","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":106,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"cf0b12d4-dda8-4d42-987f-268398c285d2","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":106,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"2f7f4c75-ea7f-41e3-a621-86812fb95017","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of artificial intelligence and machine","page_number":106,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"7efffc42-c563-4c85-8e2b-df5e776353ca","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":106,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"b6fb046f-88a4-4349-abeb-091dbf8d3238","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":106,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"9ad16bdb-b2ae-4fae-8acb-674520d3eea9","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":106,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"2f912a53-b266-45bb-9e96-318ccbb3d8f2","block_type":"box","text":"counterparties, market makers, Authorized Participants, listing exchanges, other financial market operators, and","page_number":106,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"a5d779aa-72b5-47d9-b0ef-e335a75f3a27","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":106,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"6e18a347-3d89-4b4d-aeeb-03ced870ae9f","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":106,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"6db44aab-511b-4f54-bf9c-e29d26f1ad0f","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":106,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"e302e412-9a82-461a-8007-905c73b5a7ed","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":106,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"6d715f0f-55d9-444b-9fa8-601e8f70cdc1","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":106,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"e92d2d9b-a113-409c-8e21-8a4122bdab1e","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":106,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"a61d293f-1d9f-4d54-90fa-21f852647766","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":106,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"aedbe6a2-f638-433e-a62a-98cbe358c54f","block_type":"box","text":"particularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":106,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"c53178ac-5c5d-4155-9cc7-469700be5b1a","block_type":"box","text":"any of the following: financial losses; interference with the Fund’s ability to calculate its NAV; disclosure of","page_number":106,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"d1635996-5e9f-424d-9ce7-3b63612a0e58","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":106,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"3f0e0fd1-9577-4b35-9496-b272451b172a","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":106,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"31b9446d-9aeb-4b44-99f6-7824b5237fa9","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":106,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"250a453c-5c61-43d7-9bf1-d0e5e63e4a5d","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":106,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"cd6d39ed-5efe-4af0-b36e-c6e9db99eefe","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":106,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"a9239ee3-1248-487b-a0cc-085dfce51bc7","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":106,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"cc5e202d-f540-4c14-bc0b-777c135fca2f","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":106,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"d7eecee0-2983-4f57-beab-8e274885085c","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":106,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"0deb13d5-1b76-4d81-bf20-84513d7965d8","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":106,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"8d5a66fb-25b8-4e79-843e-33212e298378","block_type":"box","text":"to the Fund and its portfolio investments. These advancements could harm the Fund and its portfolio investments by","page_number":106,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"505b515d-893c-4e85-aca1-ee0d95b63073","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s portfolio investments. Additionally,","page_number":106,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"4f524b90-0436-4e10-a92a-03e590fb9429","block_type":"box","text":"these advancements could significantly disrupt the Fund’s portfolio investments and subject them to increased","page_number":106,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"5622c555-9a22-4254-9e8c-18f3435e2695","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":106,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"4c8973ba-5215-43aa-a4c5-af4d0796f0da","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":106,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"2c2a31d6-ab22-42c1-9337-541d645f0610","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":106,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"033d905a-aec6-41d3-a0ad-6b7bd4b35b31","block_type":"box","text":"infrastructure assets.","page_number":106,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"12109802-76d7-46aa-9740-9acc626cd23f","block_type":"box","text":"II-63","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0d34897b-41e5-462f-8d24-06a61c955bd1","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eea8335f-ee87-48ba-9c4b-36aa0dfe2d84","block_type":"box","text":"The Fund and its portfolio investments could be exposed to the risks of AI technology if third-party service","page_number":107,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"3efb9ac6-2bda-4944-84da-ee1c56a666fd","block_type":"box","text":"providers or any counterparties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":107,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"5fa9f4b1-0611-4ad4-9024-fe548d898057","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-party products","page_number":107,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"5795703e-e63d-4276-813a-0ec58c70bb27","block_type":"box","text":"or services.","page_number":107,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"d247ca7a-b986-49a4-a2ac-a712c1b0dc98","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":107,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"509d32df-988b-440d-b9ba-878caff9778b","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":107,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"63abfbe7-ee36-4860-b37b-4faa1ba1b519","block_type":"box","text":"other third-party AI technology applications and users.","page_number":107,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"84a884b0-bb6d-468a-8c9f-f8662b7bc088","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":107,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"5ab3f524-9e66-4534-a5cd-404314e87816","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":107,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"02e9a20d-8602-4883-83a0-93bcc0f2d4e2","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Certain data in such models will inevitably","page_number":107,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"4db87ef9-6e62-453a-8aca-fe5c8eadd7d7","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":107,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"991f4076-f0cc-4b34-a2d2-3913ab9783fb","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":107,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"554adf7d-6c1f-49bc-a453-00e0e4557e27","block_type":"box","text":"incomplete, erroneous, distorted, or misleading. Further, AI tools may lack transparency as to how data is utilized","page_number":107,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"6ea2c061-3eb5-4e23-9ed4-55241734663e","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":107,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"21e8cea3-292b-4488-847e-f34824a917e0","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its portfolio investments are exposed to the risks of","page_number":107,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"439dff0f-d360-46f5-9fda-a084a7667736","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":107,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"988d6183-9069-4962-a069-bec01584f2b6","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to monitoring and","page_number":107,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"6e2b35db-5c71-46d7-b803-83af198cc386","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Department of Justice, Consumer","page_number":107,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"bda1662a-a39f-4065-8844-d25e76109e1d","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission released a joint statement on","page_number":107,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"75ad9f97-18d4-4983-8fe1-8e9c0c95d84c","block_type":"box","text":"artificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":107,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"2bd30967-7b3e-49ba-92d1-255359eb64b6","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":107,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"f6713585-cea0-45c9-bf89-595541d5b50c","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Artificial","page_number":107,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"4c6bbf95-3a3f-4dcc-bc0f-c57437d6965b","block_type":"box","text":"Intelligence Act, which applies to certain AI technology and the data used to train, test, and deploy them, which may","page_number":107,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"5ba8b88b-896e-4f0d-bbab-30f9062ba58b","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":107,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"00565ff5-bb71-427b-b991-6f50a62c973e","block_type":"box","text":"adviser, or the Fund’s portfolio investments fail to comply.","page_number":107,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"51106226-7f3c-411a-82b2-106dd3badf3a","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":107,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"1a4bcc20-10cf-4783-a9f0-675a6cfdfffa","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":107,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"0c94f683-c4a4-4780-9d28-69dbac5ee6a9","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":107,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"f5705417-109c-4d9d-9e44-30b528855560","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":107,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"c48219d0-8e28-42ed-9114-d938c909f7a9","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":107,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"1827e6b5-0bf7-47ad-a55f-631ca3e1e195","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":107,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"cecbed60-2680-4e8f-9e58-a884c8192bd5","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":107,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"cd56bb5b-e099-46d9-986f-8242ce2c71ee","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":107,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"964858c8-4031-4309-84eb-ba079b6d92bd","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":107,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"872890a5-5cda-41a9-8e41-2100c3ca5aa3","block_type":"box","text":"plans and systems, including the possibility that certain risks that may affect the Fund have not been identified or","page_number":107,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"41d7d97e-60d5-4453-ac22-f9a7cb7ce7bf","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":107,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"721dcfae-97ed-4124-8c36-1957d2401be9","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":107,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"4c171256-c8d8-49e1-a17c-a6ebffcaffe0","block_type":"box","text":"and remediation efforts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":107,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"3cb7e103-4616-48c7-8f52-ad8b44cf9856","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":107,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"6e69d584-7607-4dbb-9f25-361992ab501a","block_type":"box","text":"counterparties, and other third parties whose activities affect the Fund.","page_number":107,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"f2dc8499-0406-4f3c-8eb9-3e521a6c0808","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":107,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"0a01ad28-c814-4e18-87bb-643e6a119c09","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":107,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"8d39fdb9-1975-4947-9310-47ca86aa0b1f","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":107,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"c05828f9-dcbd-41db-8421-1089ca1edcd5","block_type":"box","text":"resources to monitor and implement required changes.","page_number":107,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"97079c20-d143-45bd-9dc6-9a1e34b06398","block_type":"box","text":"Participation Notes.","page_number":107,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"f184f0ca-4e83-48ae-a6ce-230a278c67dc","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":107,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"f8bcf649-72a3-4070-be47-8aec103be379","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":107,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"83cc2a78-c1e1-4ce2-9fed-454c04c7b855","block_type":"box","text":"(collectively, the “underlying security”). Participation notes are typically used when a direct investment in the","page_number":107,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"51a86ac7-e862-49fd-93fc-01fa2eaef222","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":107,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"ed46609d-8efd-4ca3-b1d8-293965b04493","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note is not","page_number":107,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"aa395e79-72bb-4fbd-ae0a-8b99f3410aae","block_type":"box","text":"the same as investment in the constituent shares of the company. A participation note represents only an obligation","page_number":107,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"173a2b77-1e0c-4d08-b73e-0b917004b20a","block_type":"box","text":"of the issuer to provide the Fund the economic performance equivalent to holding shares of an underlying security. A","page_number":107,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"d585e97f-efd2-4b00-a79c-0d777056a71b","block_type":"box","text":"participation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":107,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"f0abc7f6-483f-4ba0-b31d-e070821adad8","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":107,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"27987505-e07d-4a95-afbb-768f00c2404c","block_type":"box","text":"participation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":107,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"93847800-cece-4a02-83a5-b8ca2890f52b","block_type":"box","text":"II-64","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"acecfd88-f0b1-47f2-90d8-965dc0fa48ec","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6dd6e898-213f-41f0-9a39-cdd6a0d61778","block_type":"box","text":"a participation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":108,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"d207b06f-b30b-4b33-95db-90ca4ae69f99","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the participation note if the issuer fails to perform its","page_number":108,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"c9318f36-0119-4d59-91ff-d794244b8044","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditworthy.","page_number":108,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"b56a7c3a-9a4e-4a82-9ca1-eaf48a77b294","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":108,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"0ac20a8a-2ecb-45bb-bc16-e5e33730ddd0","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":108,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"e6fafd33-ef9f-49a6-9d66-947f2d82dd37","block_type":"box","text":"participation note expires or a Fund exercises the participation note and closes its position, the Fund receives a","page_number":108,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"16d99e97-f1f6-438f-85bf-a09b9d1ce841","block_type":"box","text":"payment that is based upon the then-current value of the underlying security converted into U.S. dollars (less","page_number":108,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"557aad49-aa5d-4482-b2b2-4328b22257ed","block_type":"box","text":"transaction costs). The price, performance and liquidity of a participation note are all linked directly to the underlying","page_number":108,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"385f4257-6b9e-46e6-a524-80626098724a","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a participation note generally is dependent on the liquidity in the local","page_number":108,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"9292cfd0-1685-4131-9918-9d1fd826c180","block_type":"box","text":"trading market for the security underlying the participation note.","page_number":108,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"5a3a39c2-565f-4567-87ff-13394b82771b","block_type":"box","text":"Portfolio Turnover Rates.","page_number":108,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"a75f1b27-bdb0-4500-aecc-4641085d9c97","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":108,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"15a5ced3-8b13-44b0-8d07-6f8830a168a1","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although certain","page_number":108,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"74875529-9b42-49c9-9c80-9b639f6b17de","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":108,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"0c67dd30-fc8f-4bdd-84ae-30071039fc07","block_type":"box","text":"substantial number of portfolio transactions. With respect to these Funds, the rate of portfolio turnover will be a","page_number":108,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"fcd94bb8-09ec-4bb7-9fd4-cbdf89bc0aa4","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":108,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"ec884efe-be11-40d2-a0c8-0f0027a569a3","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Portfolio turnover may vary","page_number":108,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"19a7c654-9e01-48bb-9b77-5437b76229ac","block_type":"box","text":"greatly from year to year as well as within a particular year. High portfolio turnover (","page_number":108,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"5bdba8a2-00a9-4647-8b25-b941795569de","block_type":"box","text":"i.e.","page_number":108,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"75966812-9bd9-43c6-bcd8-ff9e3ab49fcb","block_type":"box","text":", 100% or more) may result in","page_number":108,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"3991c1fc-5323-4814-9986-b59fcb499f8f","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":108,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"764e4b8b-c131-4795-8d5c-5d0cb2a26175","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":108,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"a2657599-e1db-4c30-8d2d-8ae9c870ee28","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be short-term capital","page_number":108,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"18aa2989-c701-4ab7-8e3f-c39ea595b7e1","block_type":"box","text":"gain or loss. These effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":108,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"cabd625e-089a-45bb-b71b-b1f30db5d581","block_type":"box","text":"Preferred Stock.","page_number":108,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"61046436-e525-4769-9254-df50eaea787a","block_type":"box","text":"Certain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":108,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"e8857721-0f92-4941-bfcd-ad394b06a679","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":108,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"b139103f-deb1-4d9c-b990-a155b31e0c11","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":108,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"d23d1b52-4d62-4fa3-bfea-0ef849afd0b9","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock","page_number":108,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"889b88e9-570a-4e23-9cd8-b83124858c1d","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":108,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"c709b7db-635f-485b-a6e8-3902d9ea767a","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":108,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"66ee33af-9e2d-4fb4-b6ff-e9dca92db8eb","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":108,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"8030a065-bd29-4420-ae1a-6a8538461cb0","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":108,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"599a1107-b7b7-475c-a6eb-a0f8da29d284","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":108,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"57a3f59c-23fe-457c-b265-eae1bb2f4f76","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":108,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"86534e9f-1aae-4565-8941-75fa7f7cb45d","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment funds that pay","page_number":108,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"fffdfa80-e06c-4910-b5ad-23f715249ead","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":108,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"7fb8725e-b021-438c-8a8e-763b5473294f","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":108,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"2c6ef2e5-0497-414c-bb9e-248d72498d34","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":108,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"ad33540f-e3c5-4790-a7db-c7e9eb1c1872","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":108,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"58e9713b-e2e8-4326-b7a3-25c5d5eb7eb2","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":108,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"3e9c5500-ea28-4a56-a044-c7f7bd7438aa","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":108,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"36a8fdc5-849e-459e-9bf3-b820ee796739","block_type":"box","text":"and concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat investments","page_number":108,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"ea5a030e-e3c7-42a4-8ed8-fa62b86b2f78","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":108,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"a49f1b85-0a72-4da9-8247-4f4f79c4a21f","block_type":"box","text":"Trust Preferred Securities.","page_number":108,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"0e20373b-94f5-40f2-a7f6-57da8325346d","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":108,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"e6cacc74-aa58-41ea-a9da-c645d4fdaee5","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":108,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"9c3171e5-c134-4fc7-970a-61be54c77428","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":108,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"bb78f69c-1186-49aa-95c3-708b68118b4b","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":108,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"7f9afb2c-f076-4148-b293-638df9e4070a","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":108,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"9dc0d2c3-6907-4c72-9ee2-b7acfc467ab9","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":108,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"d525aa68-9915-4261-8ac6-ed4e762f5769","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":108,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"9f066eda-f39a-4e84-9a5c-c4ed396edf5b","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":108,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"0761a788-77cb-4edd-b477-25d3f5b56d63","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":108,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"4bb90fe8-af52-43c1-b886-1f6207641f08","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and certain other features (such as","page_number":108,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"a86463b6-7a6f-4781-888b-b4d849590631","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":108,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"e701f3cf-e4f5-4629-b1c1-31f2679cdd10","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":108,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"81ddab73-7e2a-478e-be96-03f472e11fe7","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":108,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"2cf8d7a9-07fe-43f5-8111-bda26a4afa4d","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":108,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"71cc54e1-80b1-4322-b1cf-7ba269d6bd5f","block_type":"box","text":"®","page_number":108,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"32e4ec32-f84f-4343-a998-cf1e0ed77410","block_type":"box","text":"”); monthly","page_number":108,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"f40a7e2d-656e-4b59-b51b-151b9f862972","block_type":"box","text":"income preferred securities (“MIPS","page_number":108,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"7417cee5-f8e4-4973-9822-73e9e6ed6de1","block_type":"box","text":"®","page_number":108,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"939fd879-fdc5-4441-acb3-e3f53a66c24a","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":108,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"3eff5533-b128-47a7-860a-446aaef535c0","block_type":"box","text":"®","page_number":108,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"f4e660a6-ed5e-408f-8d7e-5a4f7a81c195","block_type":"box","text":"” ); quarterly income debt securities","page_number":108,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"883e1be8-f998-4122-acc3-6a37256c4200","block_type":"box","text":"II-65","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fc5c5860-9002-46a5-b6a0-4954802110c7","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"155cb4b8-ba2b-4946-99ac-fa63dc1a41ff","block_type":"box","text":"(“QUIDS","page_number":109,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"46a96dd0-f8d4-4b3c-a8d8-fc074dcf8608","block_type":"box","text":"®","page_number":109,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"7ba70b9e-0879-46f8-b488-a56360b6dac8","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":109,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"88e33e3e-9f90-4f90-b850-f050596036e7","block_type":"box","text":"SM","page_number":109,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"76d18ec2-cba8-492f-99ab-8e898de55911","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":109,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"7e9c18b1-e4cd-434c-ba21-88fb856c0e31","block_type":"box","text":"®","page_number":109,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"76b20510-b75a-477f-9024-d6aa142ea4c7","block_type":"box","text":"”); public income","page_number":109,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"a4890b33-f9da-4ea3-81bf-33d20d030903","block_type":"box","text":"notes (“PINES","page_number":109,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"be905ff3-5e9a-4855-9366-ad925cf759ad","block_type":"box","text":"®","page_number":109,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"0f908505-d410-4b6d-8119-245f48010bfe","block_type":"box","text":"”); and other trust preferred securities.","page_number":109,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"8b835e96-c001-4291-98e0-12dacd398969","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":109,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"010bdc64-6fd4-445b-860c-c15b6aadc65c","block_type":"box","text":"In certain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":109,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"bc196f0a-44dc-4cc5-bd98-5107f12b3d5c","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":109,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"b85ea6ef-9e57-4051-ba66-efc41073f658","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":109,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"828a20f9-b45d-48c7-8fbb-61aba8cf53c1","block_type":"box","text":"regard to whether all payments have been paid.","page_number":109,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"08237a37-4f10-416f-8ba5-9f02f71757d9","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":109,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"4cb2d1db-da1f-440e-88b2-4881d4ab39a7","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":109,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"cee9ca69-8e63-4cbc-b912-4338cd91a7dd","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":109,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"9d49dacb-97c1-40dc-9455-04fce26cfeb8","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":109,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"6fdf114e-d1b4-4c74-87de-6f365f7d33d6","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":109,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"e80f8c11-096a-4a1a-ba96-bf77eb1f88d5","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":109,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"3a9490cf-7786-4953-8c2a-bf562b42bedd","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":109,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"ee75224a-d278-4df0-9240-fadded6723aa","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":109,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"c1da3cd9-fd6a-4d79-afa2-5f45e548086f","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":109,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"fa08e55e-270e-47e7-ad7c-2ac8c4def8ee","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":109,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"e73b7156-93d0-4135-9040-5f7c881d220a","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":109,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"81be07ff-3544-4572-b6fc-c6ce493f4271","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":109,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"5b20b8af-e3d3-4b40-8786-df34e446a977","block_type":"box","text":"debt securities.","page_number":109,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"c30c3cf3-9838-408e-a884-cf6250944ff2","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":109,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"9098e8b7-1632-4700-8453-39d7e9dd3da7","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":109,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"aca7d4cc-bbfb-4bc8-b4b8-555fc41aac5f","block_type":"box","text":"REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":109,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"14de7bf9-93ee-4a77-a3d4-e429490ac884","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":109,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"9e33792d-bc1f-4b6a-9159-8720be4c56d6","block_type":"box","text":"geographic areas or in specific property types,","page_number":109,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"a77d32d6-70fc-41f9-befe-d2160316ffc2","block_type":"box","text":"i.e.","page_number":109,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"ba8a5f92-7ec0-4d42-bfb6-7315818075cf","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":109,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"a88d48c5-ec9d-43d4-8b1c-f29e81b3f57d","block_type":"box","text":"buildings.","page_number":109,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"164bd6eb-283a-4ea8-8051-af5b82e0e56b","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":109,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"1a061372-9485-43bb-bcdc-ef9e01fb9eeb","block_type":"box","text":"proportionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":109,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"24a15bcc-33c4-489b-a282-98bb1137195b","block_type":"box","text":"Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":109,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"a43e85e4-0c47-4f67-8e26-86d5835f4965","block_type":"box","text":"property, which derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate,","page_number":109,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"cb1faf9e-b721-4ffe-bf19-3676c258e4bd","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mortgage","page_number":109,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"87d354f0-3e7c-4dad-a6a5-593cabebc1e5","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":109,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"e41b486c-c324-446f-87f1-95a33950bdfe","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real","page_number":109,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"52d73739-e656-4bb2-b1b0-d21d6d7c4e31","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":109,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"db55c3f5-927c-4a9e-9485-366688826315","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":109,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"2e198579-f4bd-40c5-bd8f-1d471a39ff7e","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":109,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"1918cf45-f223-467a-af57-23fedb9b4ddf","block_type":"box","text":"safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management,","page_number":109,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"4be5b167-3255-4f0c-aa40-75f714b0a4c1","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":109,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"e74c4125-f766-460b-8a85-d83bb6be9435","block_type":"box","text":"from new properties, the impact of present or future environmental legislation and compliance with environmental","page_number":109,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"7b3a3461-46c3-4645-aac6-6ee640cd0e62","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":109,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"78c7d2b5-ee4e-4d8e-a8b3-aebd5b8c2a54","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":109,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"0da1de07-31f1-40bb-8336-de790925925e","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":109,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"20101c66-8b2b-49c1-9616-4517f2bd65d8","block_type":"box","text":"REIT are concentrated geographically, by property type, or in certain other respects, these risks may be heightened.","page_number":109,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"d5a93fe9-a162-436c-9512-890fbf5de3b9","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":109,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"2323875b-668d-4261-83e9-1ef6a85358d0","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":109,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"eeed7b2a-6bbd-467d-9f5e-54289e00efe6","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":109,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"104775b2-f40a-4bfb-8e7a-103f2154f963","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s portfolio which is","page_number":109,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"0f8078f5-e803-423f-8df9-d51878d96649","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":109,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"22028d37-c817-4762-83b4-919cf79917f7","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":109,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"cc33de7d-2cc7-4915-b9dc-24f88b80f2d2","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":109,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"5f8a0243-70d5-41bb-86ac-6feded97b202","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may report dividends as eligible for this deduction to","page_number":109,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"07c73496-a9d2-4e79-8c23-4166b8592560","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":109,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"0b2e8a12-c294-467f-9b87-e5d700458152","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":109,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"b3d9b22c-0f07-4af2-994a-0f739201bcd1","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":109,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"45932fde-b76e-4723-a966-e84e7eafcd6b","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":109,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"646fa86f-7b71-4012-9464-52442cee408e","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":109,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"78ee45db-5b48-4a3d-8997-8da4f13595cd","block_type":"box","text":"II-66","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5d30478e-61e5-4c38-b461-fcb3053cf78b","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ba258c95-a6b2-4c3f-914b-34a281ee1455","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":110,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"5c24c37c-e16a-486c-be62-98a641cb57f9","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mortgages","page_number":110,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"e80b1820-b639-442c-a4af-aa4a6dbf1396","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mortgage REITs. In addition, since REITs","page_number":110,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"c1b5f783-3de7-42a5-91df-7a7663809203","block_type":"box","text":"depend on payment under their mortgage loans and leases to generate cash to make distributions to their","page_number":110,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"f450f5ab-1367-418e-9b6a-60a536dab096","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":110,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"a5f9beaf-0feb-4f7a-ac78-a4f2f24ae5d1","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":110,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"d35c5cb8-4a02-4fcd-8f50-5d477c271270","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":110,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"f5de1525-6405-4320-8437-f89ac241fb23","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":110,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"f4e6ce42-8899-41fb-8dad-ab01f513c3e7","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":110,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"45fffe52-b83b-49b9-8eae-eea3d638420e","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":110,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"aa1860e6-b930-4ba5-a230-a6b8e100010b","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":110,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"599f6820-6025-4dcc-9178-6151f448eeb5","block_type":"box","text":"activities competitive with the REIT. REITs may own properties through joint ventures or in other circumstances in","page_number":110,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"d603520d-e7ed-44ba-973b-ca5748dc6545","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":110,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"a4a85b32-ebd2-4b66-b9d4-bb800ae842d3","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":110,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"f977c43b-36ec-4ac5-871c-0c262ae7ff2d","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":110,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"255ad9fa-ac51-43e8-a463-031bf69b5da2","block_type":"box","text":"markets generally or particular industries represented in the markets. The value of a security may decline due to","page_number":110,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"827cb8d1-3b3e-448c-bdbd-4fb99e5ef236","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":110,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"7d6be4b5-d50b-4582-9140-f31cf5b45569","block_type":"box","text":"affect a particular industry or industries, or factors that affect a particular issuer or issuers, exchange, country,","page_number":110,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"41929ba3-8247-4aea-8042-e3d34d176d06","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":110,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"4ac658f5-6073-48a8-a168-c56c1286c859","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in","page_number":110,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"d8a59b52-813b-4eb7-bc21-d39d963f81b1","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":110,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"e4ff6419-af75-4826-951a-9871d6ff6450","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":110,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"d2d82578-412b-4a84-9174-9e6548542f66","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":110,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"1c569488-1d29-445b-af45-91dbceae7c72","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":110,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"708ebebf-8463-438a-947e-a6ed328a25ef","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":110,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"13d2788a-7cc5-40dd-b608-2d2610cedd32","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":110,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"52c37f1c-4c98-4a11-85a9-b9dc76732543","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":110,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"2d31af31-dcce-4a7b-890e-2854f02a5f00","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced opportunities to find suitable investments to","page_number":110,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"e3723c53-ddf3-45c4-8539-96bb63a55d99","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is important to","page_number":110,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"c5f238f8-a1cd-48cb-9a2d-17c6d6d36efd","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":110,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"ef7547b2-6ee2-45d0-829a-78a7d2e5661f","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":110,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"70054292-36ee-4fde-98b4-b449235e9f4c","block_type":"box","text":"conditions.","page_number":110,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"d0ca6410-ff20-4429-9993-531b15022b38","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":110,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"280d75b6-90fb-4610-b5e6-7dfb0179e64b","block_type":"box","text":"a particular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":110,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"254e60f0-5444-4078-8f18-82c270328269","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":110,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"8a39df91-8ccf-4366-ab0c-21f9f03b3783","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":110,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"c95df8ab-666e-46c8-a3f2-1841200a8ebc","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":110,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"35790b93-9360-4d5b-ad62-7325903022fe","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":110,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"21f3f53e-98eb-4acf-a2fd-4fed2bfca0b0","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":110,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"c2503293-260d-4eb1-9e99-22b92bcad889","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":110,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"a40c8dc7-e257-4909-9b0e-4d4c8f97be23","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":110,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"f1198f79-dd4f-400d-b17f-ad4a802507ad","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":110,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"252b426c-2181-4fb4-ae24-0a0f004a033e","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":110,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"5eb2e59c-dc7f-4cde-997d-27a6b47cbdf3","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":110,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"db7fdd8c-cdb2-415b-8436-4e8508e789af","block_type":"box","text":"affected by such events.","page_number":110,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"817bbbd7-098d-4728-a60c-07ba636da339","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":110,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"a743b598-3be8-4507-a644-0e21066bbfa7","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":110,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"6e5e3909-f2fc-4f96-9255-90d5f775c5cb","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":110,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"828ba232-0564-4eb2-8ec9-05a9d8ee1b2e","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives undertaken by the U.S. government","page_number":110,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"0b64d65a-c40d-486d-8169-63284c32a38a","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":110,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"8745cf6f-a07e-4901-9657-bd23f39751a2","block_type":"box","text":"that could create uncertainty and instability in domestic and global markets and could adversely affect the","page_number":110,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"239c7fb8-d82a-42c0-ad20-b448419e7b6b","block_type":"box","text":"investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international","page_number":110,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"468de930-5ffb-46a9-801a-e8c9de29fbf9","block_type":"box","text":"trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":110,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"db2e4c55-255d-47fc-a9c9-3933040132a5","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":110,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"bb097543-453f-4d70-8583-502c190f1a53","block_type":"box","text":"States, including a contentious domestic political environment, changes in political party control of one or more","page_number":110,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"fe9923a7-dd70-4142-9789-a7c9f899d9d6","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":110,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"7783a9c9-1134-47a6-87bf-39ea576d45af","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":110,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"2c1e5abf-c0dd-485c-b860-8ec2ed3e4bb1","block_type":"box","text":"II-67","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0b26ce21-6d54-48e5-abe4-120a38dc4745","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b063d27a-c68a-4cd4-9143-d4d2cf06e1dc","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":111,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"122a75ac-1528-45d7-8947-257558d624f1","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":111,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"f151202e-6c3c-40c3-9001-0d10d6c28d89","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":111,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"c7a34abe-f60a-4c4d-a6e6-40b278487c58","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":111,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"6340fe16-13ad-46ce-a837-83913416a518","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":111,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"6c6b9b5b-7228-404e-b419-7cdc671395b7","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":111,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"32a7eb80-9c09-437b-a78d-21227be18266","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":111,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"e74a8b22-e188-499a-a6d1-996085180690","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":111,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"dfff778d-fc0d-4a3d-9791-e3bd8882fa4e","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":111,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"a0078689-9031-44fd-b7b9-f669d821c2dc","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":111,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"cc708f1f-b5c9-4797-9104-8632dec6247b","block_type":"box","text":"investments.","page_number":111,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"0fc4b688-250f-480a-9dc6-11dedea742c3","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":111,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"a4503e5c-5635-4890-b28b-a5aa238f1dd9","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":111,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"8fab67df-a801-420c-9ca6-7160f4a3876e","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":111,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"59991634-8893-4990-a16c-c090f4a2e78c","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":111,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"d13dc17d-6a13-4189-8157-08d9b9926bdf","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be short term or long term, and","page_number":111,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"9b049e3a-4205-43ca-aed1-a7aac79aef77","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":111,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"c55ca4d5-7e8e-400f-a1c4-1da9f140c6ba","block_type":"box","text":"operations, and negatively impact performance. In addition, the impact of infectious diseases in emerging developing","page_number":111,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"522fc13e-d2e7-4f5f-8b31-1816f4d868fd","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":111,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"1c228839-ff67-4d26-8eef-4c9baf0d451a","block_type":"box","text":"Legal and Regulatory Risks.","page_number":111,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"036c8a7c-d93b-4426-8dbc-07c58f71f24c","block_type":"box","text":"The Manager is part of a larger firm with multiple business lines active in multiple","page_number":111,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"a3079f7b-176c-40a5-bba8-b58fa7f56f76","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":111,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"36ab0cd8-ba27-425c-8013-1d4014ce8ffc","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":111,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"1a441399-958c-4c96-940b-61a58657f34f","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":111,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"4d30b55f-c588-40de-b64b-d5ded7fb87c1","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":111,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"489a511d-0b03-4769-ade9-255118d8a126","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":111,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"cc64e883-4034-4c56-a0c4-50b301fd40f7","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":111,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"25f8209d-0ace-4715-a661-1c88fb4e264d","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":111,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"8d53946e-011c-4058-83df-15729fe7949c","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":111,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"db6eb6a2-0474-44f8-ad8d-9f841a60d71d","block_type":"box","text":"reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":111,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"777c97f7-f4de-4130-9031-d01b1d52c753","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":111,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"e480a7cb-a773-44e5-8561-a6b018fdbcc9","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":111,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"220521ef-7d2c-4b28-9698-3a5a9857ae9e","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":111,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"0a320451-8820-4fd5-ae69-1feb5d21dc01","block_type":"box","text":"international trade relations, certain tax and immigration policies, and other aspects of the national and international","page_number":111,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"fe241047-9d7f-404e-92fb-ea05b583c8d6","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":111,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"fce8a08a-8537-472c-b93e-136e4ec92295","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":111,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"df0223c1-48d8-4a44-a149-1c43ab88007e","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":111,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"9dc7049d-7fa2-430c-a076-772edd4cf82b","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":111,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"083f9152-1420-4ec4-9fe4-2d23af0d81e7","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":111,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"a87311fa-381c-4e0b-827e-daf4f92c6da3","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial performance of a","page_number":111,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"22d21e3d-13c1-4f69-a4a0-c98dc5b1a9d9","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":111,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"44e8e21b-2d0e-41e6-acc5-f3418400163e","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":111,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"7e92e686-1f46-4f5c-9943-6872c99ad5bb","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":111,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"4c229ba4-59ae-4403-9702-27a4623ffc63","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":111,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"fbcb37fe-7a6c-4803-85d1-5bccb326b122","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":111,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"4600209b-9b05-4ab9-bee8-2e2b2c7cb8fd","block_type":"box","text":"Geographic Risks","page_number":111,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"8866b107-26a8-435b-90cb-24e716a5ac9b","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":111,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"974f6770-a4e7-420f-8a1d-60110efecfe9","block_type":"box","text":"to, parts of the world affected by natural disasters such as severe heat, earthquakes, tornadoes, volcanic eruptions,","page_number":111,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"aab2aaf0-c7b6-43b7-b692-3f8c69188ee3","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":111,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"2c34cdfd-a482-41ca-94e4-34eda676918a","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":111,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"89b1ea06-d3a6-4688-923d-4535166dbcf8","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":111,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"ad1f97d7-654a-4736-a66f-9d2195f25777","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":111,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"e38e3a49-bc48-46b0-aa02-366d6e73474a","block_type":"box","text":"Fund.","page_number":111,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"e264d3dc-2367-4336-aca7-25ff70a20bda","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":111,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"c092e312-8742-4d8a-ac61-6e30857afcb6","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":111,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"f3caece8-9cf8-46dd-8720-ef098c9d20b6","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":111,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"b511fff1-2abb-4f60-9c66-b38bb653f6c2","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":111,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"f3751835-4a98-444f-8332-544e0cca3dbb","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":111,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"90968ac4-c39d-4a6a-afd8-cf722f1095a0","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and certain derivative instruments)","page_number":111,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"d6a80d14-de7e-4bd9-bdca-40bbeeba91c4","block_type":"box","text":"II-68","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"95bcdf20-339c-4cc2-a141-3d551de64fe0","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4e226820-1022-44f0-8b55-1192748c320d","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":112,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"467a59fe-5f90-430c-9a3d-fd36afc9f54e","block_type":"box","text":"imposed by a regulator or by counterparties or otherwise may adversely affect a Fund’s performance and/or net","page_number":112,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"f94d4db5-1e73-4e68-8940-fc3f46e12610","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":112,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"71bcc3b6-06be-4c16-a535-e8769cc0544e","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":112,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"0a0e8a1e-b63f-4527-a83f-6989e05267d2","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other","page_number":112,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"1eefedf3-6445-4c86-a19c-a8adb4f03820","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":112,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"3053a304-6009-4607-ad91-836ddc4c0606","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":112,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"30f77138-63b6-4760-b78e-6e40a3aed669","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":112,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"f62f1323-55fb-4549-9ec9-5bd16ddf8c36","block_type":"box","text":"transition away from LIBOR led by regulators and market participants as a result of benchmark reforms, LIBOR was","page_number":112,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"3f2866c7-f536-46cc-ac35-b814a554f766","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":112,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"abf4a0d0-1e02-437d-9be7-5df5144cf735","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":112,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"176e87bf-872d-46dc-954a-0d8808a85574","block_type":"box","text":"e.g.","page_number":112,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"f6153a30-d6ea-48af-abe4-f2a4c992fcee","block_type":"box","text":", SOFR for","page_number":112,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"021df73b-f9ae-4637-a8fa-d22551412f9b","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":112,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"e40c9108-3bae-431d-9af9-ed1dd173d8bb","block_type":"box","text":"associated with the transition may remain that may impact markets or particular investments and, as such, the full","page_number":112,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"d0e12fbb-c4be-4791-a381-5c43566a8023","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":112,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"3a50cf63-9782-4c0d-bf5d-0e6d401bfa00","block_type":"box","text":"determined.","page_number":112,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"e6282ece-bd11-420f-a6ae-dea544ffd0bb","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":112,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"cf34e6c4-e06c-49f8-a504-e5c53f929919","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":112,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"362b5693-864b-44cd-aebb-099c1f98b6b5","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":112,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"c3884871-84a8-43a3-a85b-1e66ea6678f7","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":112,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"e9360fa2-4500-455f-9841-aa8e55b9b775","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different short-term","page_number":112,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"5f004150-7326-4e73-9152-e6e41eae8de0","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":112,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"c35d4725-2b6c-4477-81ad-1fd1088bd3e9","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in certain respects, to bank credit risk and to term interest rate risk.","page_number":112,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"e65f5c84-11dc-4c7f-92b8-601db85f6f91","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":112,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"9cb28838-b013-4f23-8ac5-f4a5e2643053","block_type":"box","text":"largely insensitive to credit-risk considerations and to short-term interest rate risks. SOFR is a transaction-based rate,","page_number":112,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"b596cb50-7349-4fa5-8333-17b26b360f75","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during certain","page_number":112,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"fa705557-083f-4c4d-a01e-f3cce2ea0f56","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will perform","page_number":112,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"a0192fa8-79af-45f8-b68f-00944f04df9a","block_type":"box","text":"in the same or similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based","page_number":112,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"b8816c17-1aa5-462a-a62c-68708ab3b52c","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":112,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"5d15fb7f-2dfb-4c00-92c3-baea621aeeac","block_type":"box","text":"2018. The future performance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":112,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"1156c5e1-1b08-468d-b11d-97fb601a3e00","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":112,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"eed40159-74cc-4faa-b828-c6a5f58ce9ad","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":112,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"51525f51-d913-4749-9c2a-b08c50287da2","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":112,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"b171cb6a-18df-4b7e-a7b0-44dd5e45ea53","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":112,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"0572e1f8-5547-4352-a0fd-632133c01bba","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":112,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"67d620ad-4fe4-4d23-b085-981db0fef66f","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":112,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"d0c53675-7453-4353-a2a4-e6fcce226279","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by virtue","page_number":112,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"362b1c34-e5ba-470a-a13b-5e7d10e92fe5","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":112,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"c45b85db-f905-4c14-8543-cb39db0d87c5","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":112,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"2fede1c9-45e3-40dd-a282-4b2610148407","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may further change","page_number":112,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"b8aa32e6-d904-4ab5-9c89-8040fceae2cc","block_type":"box","text":"in the future, with the result that relevant benchmarks may perform differently than in the past, the use of","page_number":112,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"789d8be4-0134-4f8e-a39a-5e3a1e07cd01","block_type":"box","text":"benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and","page_number":112,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"2b3a0e47-4081-425f-a4fa-6054b42249d3","block_type":"box","text":"certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":112,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"bcc8fbc6-83fd-4be5-8dda-835bc615600a","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":112,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"48223287-c3e1-423e-bec7-2ad4e1070e2b","block_type":"box","text":"consequences which cannot be predicted.","page_number":112,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"f84abf5a-19c0-4342-9b9e-687c34b28375","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":112,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"c0ad002b-1a81-4c6c-9f99-8432973c247c","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":112,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"3548dbc8-face-44d9-9139-155685290510","block_type":"box","text":"sale contracts, the other party agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":112,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"e29ae30e-7448-4c01-9a4d-713ed44fabd6","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":112,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"e88bde51-7e90-42d1-92c1-c31453399345","block_type":"box","text":"term of the agreement.","page_number":112,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"4ee593df-a181-4b7a-9664-324c3898b386","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":112,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"174a24ef-0552-4861-ab7a-e88b63aaf590","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":112,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"bc726bc8-0bb3-46cc-9ef9-1e7aa55c4e8c","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":112,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"c1d9cff5-d91e-4ea0-9db0-1a904410cca6","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":112,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"a3a2ef61-bcea-4092-97ae-23c43e0b98ab","block_type":"box","text":"accrued interest. A Fund may enter into “tri-party” repurchase agreements. In “tri-party” repurchase agreements, an","page_number":112,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"88031202-e334-431a-9725-c1fe1797c681","block_type":"box","text":"unaffiliated third-party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":112,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"c5918d42-11d7-4412-ae34-09c523822b19","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":112,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"040ccd2f-205a-4df9-a8c8-b73f2b93ed8d","block_type":"box","text":"II-69","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a42a771a-80f1-446f-afa6-8092634a5eec","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"51e4b40b-6e0f-4b37-b03f-1a825e582d54","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":113,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"3891a9c3-58b9-4d39-b77f-e2bea36f0b82","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":113,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"2bdc88c6-0808-4b7d-a5e8-ea1a953240f7","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":113,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"1b73c796-5b94-42de-a652-fe4cb0869e3d","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":113,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"13b956bc-f531-46d7-883c-26fd38c5f9e3","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":113,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"82d5e17a-1d06-4078-9007-dcc4b3b5fad7","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":113,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"823ea3fd-a051-48a7-b508-60833c76080a","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":113,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"cf551d1f-38eb-45d8-b53a-ef069cbd74c5","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may have","page_number":113,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"18d63852-e9ff-4ec7-818f-ab31c67b7485","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":113,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"318e40aa-76cd-466c-af53-01788260790d","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":113,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"224672bc-c2d8-4655-8d80-3c48eb0139cb","block_type":"box","text":"sub-adviser will monitor the creditworthiness of the seller, and a Fund will require the seller to provide additional","page_number":113,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"5595f720-6b91-454d-8a7e-b1ea623da140","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":113,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"cb1de4f9-3191-424f-89ec-97b4c5ebb22d","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":113,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"b6d06c06-c998-491d-b405-3effd7bcfb8e","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":113,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"38ecc1ca-8e78-4068-aff2-f973350c67cd","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":113,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"83b824f7-6cd6-4097-b0de-139285b66405","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":113,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"0bc1d51d-9629-41e1-96ca-be7a48c40a5b","block_type":"box","text":"or by another authorized securities depository.","page_number":113,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"5e2da261-cf29-430b-9b4a-e039dab0c77a","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":113,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"3ec1836c-0d1c-43df-bb25-d8b700eb45e1","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":113,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"926c0505-7500-4ddb-aa3d-7003b4ef2d03","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":113,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"e8dd2d6d-f84d-4dd2-8891-1fa8e16891ac","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":113,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"376e7e66-3ea7-40ca-8a0f-1f930bacb30f","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":113,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"ee95b788-feef-4a4f-8424-77a85b42498f","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":113,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"de3c0e18-0c6a-4640-bca3-fcbf4e2fa389","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":113,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"d5206417-c9bb-4bad-a115-6d5f4cc73423","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":113,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"d9ffb7c7-e10b-49da-bb5c-33a1eaecb573","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":113,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"3d22039f-08b1-48e2-ad68-64d8d5ea0459","block_type":"box","text":"the repurchase price.","page_number":113,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"2da01cc8-bcd1-4dc8-a197-e9e2eb0c5308","block_type":"box","text":"In any repurchase transaction to which a Fund is a party, collateral for a repurchase agreement may include cash","page_number":113,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"cc1fd03e-3f3a-4de9-ac3f-4c70d63d81a6","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For certain Funds, however,","page_number":113,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"98133696-52f8-4a4c-a89c-2b4b3349bccd","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":113,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"8a5c855b-9188-4d73-8a45-0a55f23b11cc","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":113,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"da78dd1c-78be-4f7d-99e6-052e1262967e","block_type":"box","text":"strategies without the repurchase obligation.","page_number":113,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"487d7174-154c-47a6-a2f5-bfb0b5a0acb4","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower quality","page_number":113,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"c490cf19-ee2e-4639-ae51-65a379d2bd8b","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":113,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"ee3f442b-9224-4fb3-a183-97363bd9811d","block_type":"box","text":"collateral and collateral with shorter maturities. If the repurchase agreement counterparty were to default, lower","page_number":113,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"be467e63-192c-4f3b-ba2e-46ea32126d01","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterparty default and","page_number":113,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"dad00948-4568-4f48-8d06-4ef98f3d043a","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterparty’s repurchase obligation, a Fund would retain the","page_number":113,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"b7677719-58d1-411b-85ba-c05ddb26169a","block_type":"box","text":"status of an unsecured creditor of the counterparty (","page_number":113,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"54e673b9-8e62-4420-9d14-345cf7d14ace","block_type":"box","text":"i.e.","page_number":113,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"d8f7c702-2e4c-41f5-a132-3a3eb3da086a","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":113,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"5341a57c-6a81-41f3-97ed-0b0db5f0c485","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterparty) with respect to","page_number":113,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"afff2035-7a9d-4749-b872-a57bb3ed2754","block_type":"box","text":"the amount of the shortfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":113,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"5c4bff81-f377-4efe-a232-cb4523ae9707","block_type":"box","text":"and income involved in the transaction.","page_number":113,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"e7ac4b53-4170-4744-a4ce-9f4749ce605d","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":113,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"70db6826-e0ce-45df-a8ad-cb59ab50bb9c","block_type":"box","text":"their affiliates to include in certain financial contracts, including many repurchase agreements and purchase and sale","page_number":113,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"7563c6a1-01f0-4c06-a372-5a4c9b382844","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements,","page_number":113,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"0b8fc24f-1644-4b5e-98ea-e9761fd1d64c","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":113,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"26ee35c9-08be-4ae8-aab3-252b11dd853d","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":113,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"f661d02a-6963-4280-8abc-dcc8923c60ea","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":113,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"5cde4b8d-7a15-49ad-87d4-6e7f2c05ec97","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":113,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"4048aec7-7ee5-48e7-a25d-ce65aa960874","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":113,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"d9e90e8e-8de7-41fb-93dd-8076ee708929","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":113,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"1af5b977-a3a5-4eb7-8aeb-cc2bdc338044","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":113,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"081b25a4-f206-4645-97c7-c52d90d36ba8","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":113,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"9830586b-8788-4543-a015-c46dc1949691","block_type":"box","text":"adversely affect a Fund’s performance.","page_number":113,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"7c675371-0638-40de-bf32-9b36de4a325f","block_type":"box","text":"Restricted Securities.","page_number":113,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"7890ac0e-5d90-42bb-b6ab-8fed9987190b","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":113,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"d8dd1cd3-e1d5-4240-98ec-007aaa4e6ff7","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":113,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"b503d505-bd35-46af-9380-041086a19e59","block_type":"box","text":"II-70","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"22bd9b12-14e0-49a8-ada0-f30b024afabf","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cbbdf960-f60b-4b58-bae5-725277503372","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":114,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"9fdc56ef-08a5-49d7-909f-15e7d9a59179","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":114,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"a5c842be-e852-4005-9ee7-b7378d6f5683","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":114,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"da283b8c-70a3-48c5-951d-5bf81e5bbf5b","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":114,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"baf9bbcb-5ae6-4c34-ae02-01c84554a375","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":114,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"4fcad97a-085a-4250-87ac-92b0d5faaf13","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":114,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"fe0dfcdb-010e-4f99-b1b9-27afa1f48535","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":114,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"80704e56-56f8-4940-9f3f-390d935d9a30","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":114,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"709ce2c4-50ec-44c4-8c6f-269db746eabc","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":114,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"c3129cd5-45c7-46f9-bdda-9b02826087b1","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on certain transactions,","page_number":114,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"b5074901-0b07-4b37-8430-e3f8ed337d34","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":114,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"e9d3999b-8cc2-49bd-8b3e-1bedf81fb8fb","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":114,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"d0875682-4691-4eb1-8034-f9e8bdc87e10","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":114,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"4e1fe45e-10de-4dd0-b114-4be0733c9e39","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":114,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"a74e94e3-6fff-42fc-926a-0eb5060330bb","block_type":"box","text":"character of the issuer, which party (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":114,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"787b952c-a2e7-446e-8a3f-0bebe5602bad","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":114,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"2aa16de4-dafb-48d2-9268-2747f65445db","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":114,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"d059e44c-e7e1-4939-b72d-86eaebbc3056","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":114,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"703481f1-9b4b-41b1-b7c9-55bc960b6e0c","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":114,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"a1e0f2b8-390d-4c34-9754-31ca816aad93","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":114,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"a131cfc5-39a7-4fac-a970-ea3969e8f338","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":114,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"e2681884-8ca4-4e3c-bb0e-edacd46fb4d3","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":114,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"3fcc546a-9050-4b4a-b93e-d2bd832934a4","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":114,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"c300714c-9328-4709-94b7-ca98348595f6","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":114,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"20897ba2-04c1-4ba3-ba4c-b3aa659e0915","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":114,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"2b8a64be-ba50-442e-8ea2-9f313bc49112","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":114,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"e74d676c-9623-4d13-9031-f8bd4af1480b","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Certain of the Fund’s investments in","page_number":114,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"65c2a8ad-ab92-42d0-95fe-352a2d70708e","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":114,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"4422123f-d44b-4e0d-8bd0-4c0e4d8f15aa","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC reporting","page_number":114,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"2c808651-0ae7-41ef-9d71-a37b33133442","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":114,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"e01b9f73-870c-48c3-8e12-031bd89a8b9d","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial reporting. As a","page_number":114,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"9143a0df-6c60-494b-93df-7baea2d32621","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":114,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"f1c17189-c658-43dc-94e1-5009d95a7661","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":114,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"7e758b81-d371-41e6-8676-001ecb6c5898","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":114,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"25927562-e944-4947-b256-6edb44a64393","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":114,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"00d54173-8def-4811-a1ed-799a817afff3","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":114,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"d67850bf-ddb9-4fdc-819e-efe82b8db161","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced proportionately as the","page_number":114,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"9afebfb7-d42f-4db5-9563-b6711afc3645","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":114,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"025b8c68-dcdf-4974-bf17-035ee08479e5","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":114,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"c2d78aa1-14ca-4191-a521-2b8c5e25f6af","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":114,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"243a0621-5577-46d1-b5b4-29183dd9d339","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":114,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"a3665723-61e0-4e2c-b7c6-af73f1cfd145","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":114,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"18634bac-e65f-4e24-b23f-df47c42aa797","block_type":"box","text":"offer other liquidity opportunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":114,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"1a33ae52-fe56-4ac3-9fc6-dd56f78ad7cb","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":114,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"398d6eba-227a-4668-8676-37a4a110eb79","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":114,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"f5c8ee7a-66e1-44f0-a3c6-4475e4ef7b10","block_type":"box","text":"conduct portfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":114,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"744afd1b-c74e-4503-a3a9-9e48b62880df","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncertainty. A Fund will be","page_number":114,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"577f77a6-beb6-4f25-94f2-e37e3b1fd2cd","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":114,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"f5d31c36-d811-4f03-bd64-1d6ea28025da","block_type":"box","text":"investment opportunities may increase, thus potentially reducing the number of investment opportunities available to","page_number":114,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"e404e9b6-a67e-4a02-87ac-7e8a38014b16","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":114,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"4fbdb33a-a987-4fa1-bdbf-6ca87bc56e1b","block_type":"box","text":"investment opportunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":114,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"72a36217-bf71-459d-8a37-5f7f90c5ceb5","block_type":"box","text":"especially as that Fund grows in size.","page_number":114,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"e5958dfc-fd91-46c2-a09a-9a7bd2d64036","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular, restricted","page_number":114,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"4d6b7111-177b-4688-95bc-ce1313154020","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":114,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"b9d42746-1b84-4118-b8f2-122c976c3321","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":114,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"c068bd3a-92cd-4e1b-bdf5-686f5b51878b","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncertainty and subjectivity of","page_number":114,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"bf3bfe69-7124-4b33-be44-91ab2227c365","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":114,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"59724947-f38c-47bb-847b-44109442d03b","block_type":"box","text":"II-71","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"45ddb5ed-7ea5-4080-a0ed-8938778aa070","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b91c4cb7-f323-48f8-a4d1-0478317764f3","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":115,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"d0804bba-a801-44da-bbd9-336bee56b07c","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":115,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"2769d441-c3ef-4432-9544-79cc7b856830","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":115,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"008a76d6-a8de-438c-940b-d6cfc20a9ee2","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":115,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"82d0597c-fb83-49a1-b744-5f7812aee6d9","block_type":"box","text":"Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing opportunities for","page_number":115,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"34c6559e-be68-42e0-bbda-2b27da385a0c","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":115,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"30565b52-fc04-4d8c-bbb1-3ec62837ec9f","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":115,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"a0e2f8dd-20b8-4f34-b626-4ab0f395be76","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":115,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"3a177e0d-0f5a-481b-893b-5d070a3667f4","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":115,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"d15a8855-3677-42f0-b7c0-a91f3ea40901","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":115,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"a35f866d-8257-49d1-a7cd-9c36f807857b","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":115,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"9b6e2e4b-7b93-46c0-8ec6-d7c758c713b6","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":115,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"136c37e1-f7a3-4be3-9de2-4b0f2f4742c7","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":115,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"1bfe0a8b-dcf4-4c14-8d42-cac64295fe7b","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":115,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"2f7bb72e-c92c-4068-be5c-913ee2edcc6d","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties","page_number":115,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"3dc866d4-6eff-4894-9578-23dbbff3d326","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":115,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"d011c95e-a894-4e7e-a4d5-e6d4f8c3e906","block_type":"box","text":"to another party and agrees to repurchase them at a particular date and price. A Fund may enter into a reverse","page_number":115,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"4f3d04c4-826e-4443-bd62-321fde3c6119","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":115,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"4cf89493-a5d9-423f-88ed-82254ba4d22f","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":115,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"3e980b09-f723-4480-b13c-68412da30311","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":115,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"161e7ffc-3bb9-472e-ba54-a921a5ca882c","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":115,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"f4e6c25a-9a8d-44f7-92e8-1e0d5a413505","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":115,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"093bd8fa-2a6a-446d-b3ea-459340c176de","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":115,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"f859a2c8-eddb-4062-b4a3-d4ae6e307697","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":115,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"3b86d093-d2a8-4907-8037-8aad680d85b2","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":115,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"ce7bccf9-278c-4d79-97ef-5eea5baf2126","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":115,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"fd7f4693-ee24-42b8-99d7-ef33db751136","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":115,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"4501897f-8eb2-46cf-b09a-22f95a35ac15","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":115,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"b66a83ea-fdf2-4cf0-b96d-7328325b15f7","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":115,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"92a79b02-2161-45b6-b6cd-b29cfecff0fc","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":115,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"c2a993b9-c23f-4fd5-8298-946ac4d2c008","block_type":"box","text":"similar financing transactions (","page_number":115,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"4a30fd3d-f8a9-44b4-aa5b-f08ec27f8ba4","block_type":"box","text":"e.g.","page_number":115,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"08977fcd-0369-41ae-9303-cfa7e52574dc","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":115,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"2d91a6ba-9500-46cf-93fa-138047f291d5","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":115,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"eb5f6405-f651-4f2d-bc40-021a4e5a5d5f","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":115,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"532c5b15-2050-4f6b-b5f0-d26392bfc5a0","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":115,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"095f8706-71f7-49c7-aa3c-3b5f91d6f396","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":115,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"bf24ea92-f813-4f83-a2c6-bc6e515ccda4","block_type":"box","text":"finalized rules that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":115,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"e4f3c67c-8296-4989-9c0f-5cb421ac22c4","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":115,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"781ec151-eedb-4c99-a708-a2da5724ab3c","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":115,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"09f20771-8926-4871-a7ad-d6325593610d","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":115,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"e620d115-8ed5-4c52-aabe-6af443386bf3","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated counterparties","page_number":115,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"25e2e746-592f-4545-b969-ad3260c7eeed","block_type":"box","text":"and certain of their affiliates to include in certain financial contracts, including many reverse repurchase agreements,","page_number":115,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"02d17cea-5b09-478d-917c-284c37da9b4f","block_type":"box","text":"terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements, take","page_number":115,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"c57bc3d3-3a5a-4fc4-8de4-a6ddc8e48b23","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":115,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"4bb78a97-b439-4d44-aa67-810323c9bc4a","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":115,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"b5628de7-eec4-4265-a6be-041deac45de3","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":115,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"d91703cc-2a75-4ce5-94b2-b5e1d8daa53e","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":115,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"fbb627d9-e4e1-4fec-9e74-52c2ca66b452","block_type":"box","text":"amounts to be received under such agreements.","page_number":115,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"c37d2551-27a0-442b-ae05-350fb94c8ece","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":115,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"6772b55a-e575-4168-b5e5-50c515bd84a1","block_type":"box","text":"Certain Funds may participate in rights offerings and may purchase","page_number":115,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"3c1e8c22-3225-4eb2-bd8e-9d0b5b4b8339","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":115,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"14fe677c-4824-4142-9111-05e6f9c3d17a","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":115,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"2838b7ee-d181-4899-b935-a7acb1cb3d8f","block_type":"box","text":"normally have a short life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":115,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"74e1dabf-65bc-4a7e-9d96-496732f05ce7","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":115,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"65fb038b-683d-4a90-b831-441e7c12eda7","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":115,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"4818d453-60ed-430a-9c3e-b962501645fe","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":115,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"920b3a52-6893-4415-8ef4-1dec88abf7f6","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":115,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"86093c69-69ab-40ae-8e9e-f9de6cda53c5","block_type":"box","text":"II-72","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1ef52851-0a6e-4919-8ec2-751bc0edc389","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eda69971-7138-46be-b555-e5264d867d14","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":116,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"2d7efdf8-af72-4bdd-a9f2-8ec9b2e69946","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":116,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"fd39e5f0-af4c-45a3-bede-a593639a1643","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":116,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"826422f5-c941-4518-8ad6-382e5b588436","block_type":"box","text":"Rule 144A Securities.","page_number":116,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"2e959695-fde4-4a3c-8d05-9360dd07f94d","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":116,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"7d925680-409b-4e9e-9f46-bc9ef1965f56","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":116,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"42aa1c07-e600-4acd-9138-f672275d5982","block_type":"box","text":"Securities Lending.","page_number":116,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"306bed07-56d0-453f-9f56-75f94099bb5a","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock determines to","page_number":116,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"9b8620cc-bbf8-420e-9905-f54803eb24ff","block_type":"box","text":"be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":116,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"9be2bb77-b70e-44e9-84a5-0f1e8c53f99f","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":116,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"783ef405-ce38-4ddd-bdc5-d9ac5de84d28","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the particular Fund exceeds one-third of","page_number":116,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"e231f8d9-095c-4531-8ed4-f22b3a16900a","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":116,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"566e8341-a15a-4ec9-ba39-b007657ac9be","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":116,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"7bec48f4-d7fa-4332-990a-6be0cf38e784","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":116,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"63ca2b3d-17a8-4adb-b217-d81e603ec04b","block_type":"box","text":"the securities were not on loan.","page_number":116,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"e460f1e4-836e-4192-b6fb-fcd53806f88e","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":116,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"7aad2d2b-fd43-4f14-8813-791f0731f9e8","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":116,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"fd26b00d-9377-4fd4-924c-e3c42bc61eb0","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":116,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"cb26df6a-d82d-4699-a0b6-e0e10b19d0b2","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":116,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"5145ad06-8985-4fe9-a443-8dd774fc51cc","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in certain short-term","page_number":116,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"01fb846f-1722-40d2-997a-7d8f2cf87809","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":116,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"6af871c5-2896-44a3-87a8-797831d4bcdd","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":116,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"2c116280-a164-47ac-b930-147a460d4b3c","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (","page_number":116,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"a01d008d-6e5b-4bde-9caa-a0395374d4b7","block_type":"box","text":"i.e.","page_number":116,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"d1ef2c24-0956-4953-b84b-7da91908d679","block_type":"box","text":", the risk of losses resulting","page_number":116,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"0b56ef95-dca4-49c0-88ee-7c2486ca24c4","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":116,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"1b8532c5-fe78-4e4f-85d7-54fe5da7c699","block_type":"box","text":"i.e.","page_number":116,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"1bac6fff-7433-478c-bbe2-e56fda1a7b9b","block_type":"box","text":", the risk of a mismatch between the return","page_number":116,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"0800a5ec-d775-494d-8a63-d8319c057cab","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":116,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"78ca2f23-b3d9-4a5f-9a23-adc876e7eb45","block_type":"box","text":"i.e.","page_number":116,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"783e4081-631f-4e75-9236-4e10f96f9e36","block_type":"box","text":",","page_number":116,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"db76ed59-fb47-46d9-acd7-6c1014eca8d7","block_type":"box","text":"the risk of a shortfall at default when a cash collateral investment is denominated in a currency other than the","page_number":116,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"a6b78d14-6175-4f12-a85b-c9cc5beff9c3","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterparty and","page_number":116,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"afd28bb1-dc17-4241-b0d7-dfc6406f5da3","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":116,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"b7e57c2c-e6dd-4eef-9596-ce7ddbdfcd13","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":116,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"7cd72591-4d85-4447-a99c-152d98bf578b","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":116,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"f53e3105-42c3-4406-9df9-64c6f64dbc7c","block_type":"box","text":"are subject to a corporate action and commit to the borrower a particular election as determined by the Fund’s","page_number":116,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"b86a612d-bc5d-4d88-9cac-698d0d548212","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":116,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"393678d0-2018-42bc-bd1a-7eb306936944","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":116,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"afed2376-09b5-4a4c-b302-993abfa27495","block_type":"box","text":"securities lending counterparty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":116,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"c5efd142-58b6-4472-a3bb-f49418cfac01","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":116,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"52a00289-3263-4891-971b-e101e057aae8","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to participate in a corporate action event","page_number":116,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"10bf50ac-4c9a-4f32-8064-c30c17d56754","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":116,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"b922df45-e183-4594-808f-7a19616e3c9c","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":116,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"bb348de1-2d94-492c-9b2d-289fd7eceec8","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":116,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"52295403-6e08-4b29-9a68-cabe27823505","block_type":"box","text":"could lose money if its short-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":116,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"bcf93b60-578c-4222-91c5-6a7758d83f25","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":116,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"414fec7d-10d2-42d0-b2ba-3c7ab2937903","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":116,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"3980b111-9ee0-4d77-98d4-bb45abb68a60","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":116,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"0fcd74a5-79d2-4793-bd90-f9fd4d111b9c","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":116,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"c33b2001-f0c7-458e-9dbc-41724030b936","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":116,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"d0c3d1f4-b041-4a0e-aa72-919794818210","block_type":"box","text":"paid to non-corporate shareholders provided certain other requirements are satisfied. The securities lending agent","page_number":116,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"dd9f097c-b7dd-4877-bf2e-7d9527e32414","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":116,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"e33a7f78-9b0f-472d-9342-6ea8c7421b1b","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":116,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"fc5fc924-47f3-4d7b-83dc-ba61a0dae3e0","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":116,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"bb963d07-eb58-4ff5-afd9-c92aa97fb8cb","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":116,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"7cbd3d83-6409-4dad-a45e-04bf52ca426a","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":116,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"fbb2dad2-ecab-4a84-ad33-836e1291202b","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":116,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"eda4cdc3-d3c9-423d-bbbe-febfd33918b6","block_type":"box","text":"their affiliates to include in certain financial contracts, including many securities lending agreements, terms that","page_number":116,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"1959d773-80bf-4903-ae32-fb3dab7fce6c","block_type":"box","text":"delay or restrict the rights of counterparties, such as the Fund, to terminate such agreements, foreclose upon","page_number":116,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"73e90083-81cd-42c9-97f4-b4e1faaecc0a","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit support in the event that the counterparty and/or","page_number":116,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"502f1aba-eb3e-4ac5-8b09-c740de5c417a","block_type":"box","text":"its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these","page_number":116,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"705ce3e9-61cc-439a-819b-7ad640636e8a","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":116,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"4fd92449-ff4d-44d2-bc66-8278c6d59a08","block_type":"box","text":"II-73","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"16f2bff2-abef-41e6-969d-2d31d8dc3a19","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9a292a40-3dbe-44f3-aaac-43ed84340e1f","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":117,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"5533ec75-8dc5-4d03-bdfe-ba3373a80cb8","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":117,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"dbfd5dd5-3740-433c-aecd-0a52a350508e","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Certain Funds expect to provide","page_number":117,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"065ad785-45e8-47ed-9531-aeb0021dfa28","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":117,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"669c0790-fabd-4c90-afc0-063d0e11ce22","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":117,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"b7d06ca0-c837-46ae-b088-535e11e7a39e","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction","page_number":117,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"720a63f3-831b-4401-94e6-de31df932b34","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information about securities loans","page_number":117,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"d03e35eb-96f4-4ee7-aab8-d27e20a09bfa","block_type":"box","text":"entered into in connection with short sales. Compliance with this rule is expected to be required in late 2028,","page_number":117,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"b0ab0924-0adc-4e57-9592-27eda5759a2e","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":117,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"2e52a3d7-251b-403f-8fc5-8e447e70644c","block_type":"box","text":"the current expected compliance date.","page_number":117,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"e5071cfb-0e53-4325-91f3-295b291c7b84","block_type":"box","text":"Short Sales.","page_number":117,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"e73beae1-cfbb-4892-90d0-75be9beae43f","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential declines in","page_number":117,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"7cf69355-b984-4594-96b4-7e5f4cf2b365","block_type":"box","text":"value of a portfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":117,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"5a708f42-d2fd-462b-9a57-2760daf125e3","block_type":"box","text":"Certain Funds have a fundamental investment restriction prohibiting short sales of securities unless they are","page_number":117,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"b2c86ad5-40d0-4cd9-9fea-4f5df017b24c","block_type":"box","text":"“against-the-box.” In a short sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":117,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"101f628b-7206-4a68-9c2e-24368ea9f863","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a short sale, it borrows","page_number":117,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"ccaeb82c-725d-4f41-aabb-bde1ce6e857d","block_type":"box","text":"the security sold short and delivers it to the broker-dealer through which it made the short sale. A Fund may have to","page_number":117,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"a3f671ae-3472-4ff2-95cd-2ea4860b2986","block_type":"box","text":"pay a fee to borrow particular securities and is often obligated to turn over any payments received on such borrowed","page_number":117,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"8259d55f-e85b-49d7-80db-b65738cad25d","block_type":"box","text":"securities to the lender of the securities.","page_number":117,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"9277e27f-2fef-40ae-bd4a-d0dc3f36a20b","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":117,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"8acfd124-1cc5-47e1-aa0e-52ea4c513f90","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":117,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"53af9934-6788-45fe-bbc3-d07ccd42f41c","block_type":"box","text":"uncovered short positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":117,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"39e806fe-a736-4c62-912f-3eac8baa7051","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":117,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"a9795fe2-b29d-453f-a72a-7d8e4353de21","block_type":"box","text":"market value of the security sold short. Depending on arrangements made with the broker-dealer from which the Fund","page_number":117,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"ef30add2-39cf-4b05-887f-f81300b5c07a","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":117,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"760948a2-b91e-4f38-acf3-8370bf92c4d6","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":117,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"c386ceb4-faab-459f-ad36-2c4d16bd8166","block_type":"box","text":"Because making short sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":117,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"fe8b06cd-5e9d-4ce2-af22-2bb6842dd0df","block_type":"box","text":"securities, such short sales involve speculative exposure risk. A Fund will incur a loss as a result of a short sale if","page_number":117,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"bd48f19c-d526-478a-a6ee-285f3e90e65b","block_type":"box","text":"the price of the security increases between the date of the short sale and the date on which the Fund replaces the","page_number":117,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"51884bf2-320d-4bcb-acb9-5518c4feb95c","block_type":"box","text":"borrowed security. As a result, if a Fund makes short sales in securities that increase in value, it will likely","page_number":117,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"ca63321a-bfca-4ac3-98d0-bbace41dde40","block_type":"box","text":"underperform similar mutual funds that do not make short sales in securities. A Fund will realize a gain on a short","page_number":117,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"44a52155-a7a6-4e55-8a27-d002fdaeed94","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":117,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"fa6f57a8-c3c2-4dd3-9cb4-0516b838eddd","block_type":"box","text":"close out a short sale position at any particular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":117,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"ebb6c4c2-7cb1-4723-b648-26a64a354721","block_type":"box","text":"the price at which it sold the security short, its potential loss is limited only by the maximum attainable price of the","page_number":117,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"36a31f2e-280c-4068-b052-bd74320c87f3","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":117,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"dc0f72f9-6558-4029-8958-9ce164f17fff","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":117,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"3a382678-d964-4830-8d19-0dc0a21cf518","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its short sale","page_number":117,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"5c5bcf1e-62c1-485f-be6a-a9169ca95a51","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":117,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"63c493f4-f6d4-4d91-838b-5bca07287b46","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":117,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"484ef124-ea7f-4deb-ae2e-b58b16d6017d","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United Kingdom","page_number":117,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"a86a575e-88db-4e50-bc11-0f1d559a92f5","block_type":"box","text":"regulations (under which there are restrictions on net short sales in certain securities). If the SEC or regulatory","page_number":117,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"70e26289-e591-4c24-957c-f5fd475cdf2e","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding short sales, they could restrict a","page_number":117,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"9b9b35bb-9cc9-48ad-9c2a-4d75cc1c079a","block_type":"box","text":"Fund’s ability to engage in short sales in certain circumstances, and the Fund may be unable to execute its","page_number":117,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"8854bd9a-e2e5-4030-a8f0-5091898fa831","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":117,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"407a9fc5-5bcd-42e1-9b89-71ea65e0a25c","block_type":"box","text":"jurisdictions may adopt (and in certain cases, have adopted) bans or other restrictions on short sales of certain","page_number":117,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"488b34b8-0587-49a8-af5b-791e045c9996","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":117,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"d9b99e85-d1e7-4c52-8e65-828bbda84b38","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute certain investment strategies and may have a","page_number":117,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"272146b8-47c2-471e-a4ca-4b0b784b0bdd","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":117,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"29bee0be-8dc9-4138-8127-597494b64bd9","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":117,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"9b2ff74c-9bd8-4528-b031-14bee1afb504","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":117,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"3b7299a1-1eb7-4cf3-ab15-42592aa1b498","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":117,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"d2370249-8468-4a3a-93c4-18b295d4dab8","block_type":"box","text":"potential acquisition opportunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":117,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"162eea1f-a741-44d8-a8d0-d1a78d61b616","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":117,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"3bc711d7-6ce6-483c-b741-d91b8dc1a032","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":117,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"d25f19da-7a5d-4d6a-9ee1-2fd4f99aa746","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":117,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"e4573aa6-349b-4c1e-a173-35f1d01d2641","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":117,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"24ffc7c1-c419-40c0-87a5-d822b675d87d","block_type":"box","text":"II-74","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"aeb192c7-de88-48ae-9f1c-2aa1e0783851","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ba667b85-a7a3-4010-b0ac-d358b61509f6","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition opportunity.","page_number":118,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"f330cd9d-fc11-41c8-9199-5c6d9e9edba2","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":118,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"593c2429-40d2-41a1-917a-36d6cd3b0be1","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":118,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"396996e2-2186-4b4d-8c24-08bfdd6ba5a5","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":118,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"479446cb-4c50-4ed7-b372-04f726b5fd55","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become worthless. Because SPACs and similar","page_number":118,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"f23750aa-5f25-41df-9a49-c301a449415d","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":118,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"fb34710f-eda4-4cf4-8d84-9746c1e94376","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":118,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"33f67c50-cdaf-4402-b0f1-c2794bd346b1","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":118,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"4299e50a-c3c4-4bed-ad97-6be8d1c6d4d5","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":118,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"9e426f82-421d-4b1b-b406-cbf97cc3ed89","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":118,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"edb6ddf0-7d47-4767-88ec-6ae33785cb63","block_type":"box","text":"certain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":118,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"ac7e729d-2d5e-4d57-a84a-0c62fd289209","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":118,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"5e245bce-21fa-4fbe-afa6-6f68a1583ec1","block_type":"box","text":"Standby Commitment Agreements.","page_number":118,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"3e281e4d-7d75-4360-b396-9acac8ac985b","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":118,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"0fd01b83-1274-4900-a1cc-4cea418eac49","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":118,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"376e6d9f-b343-4501-baa0-e55fbb37d143","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":118,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"c86dd973-1556-4e53-bbdf-bb2e1962afcb","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":118,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"a9bfee79-c0fc-458c-a021-0c66e7e6c7ec","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":118,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"7a61a931-d243-4e81-98f2-7794bc49e4d4","block_type":"box","text":"advantageous to the Fund.","page_number":118,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"c9303f2b-4ced-4dbe-b751-ecce0f77864c","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":118,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"9e3e4dde-b46b-4a7b-8ead-12f49f305125","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":118,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"952695ce-a9d9-414c-b186-f1746a9c835a","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":118,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"48ea7d44-bb21-4093-9f43-8dc95e174916","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":118,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"f38ec57e-891a-4173-8ee3-630da284601d","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":118,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"9ec9b50f-ca30-40a3-a192-b81443ca32c1","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":118,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"d3e87f88-72b2-4a35-a593-0e4aa09f30f6","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":118,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"0c18c985-942b-4dff-b5e4-c84affad58dc","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":118,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"cb759dc5-fa1e-495e-8fef-c7fd7c22fff0","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":118,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"916ec5f7-06aa-40d9-aa34-5cddefcfa1f7","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":118,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"467c5ec5-ec97-4830-962e-42150f70c03a","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":118,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"7c6a7b6a-e357-41cf-a3cc-21955bf86f00","block_type":"box","text":"portfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":118,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"ac1a3cca-fa7a-40dc-ad8f-8534944d1215","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":118,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"e81817a8-4f05-4636-aea6-68394cf9e233","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":118,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"281d1b1d-d904-4ea8-b5d7-87b6ea7c63ab","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":118,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"32d35832-d2dc-436b-a10b-1b4f9d9a1b79","block_type":"box","text":"Stripped Securities.","page_number":118,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"9230d0e8-89b8-40e4-8986-35a4033175eb","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":118,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"787af8d6-77a4-432b-9e14-e703e5c2f7f9","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":118,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"cd877fb9-33f5-4d8b-9270-fbcb2b592b2c","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":118,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"a3ac572f-4d66-42f7-9fba-3f3113e05af9","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":118,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"2dcc0a4f-2541-413e-9bd3-53d7a305969a","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":118,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"058324ee-c04c-41a6-937e-43d1dc8e0d39","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":118,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"d3cb67a7-14c1-4754-9f72-d2927463bb60","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":118,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"9201bfcb-1ca8-4d26-b67a-c7066ff463aa","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":118,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"023f0ede-3512-4549-8c64-0bf1f618794b","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":118,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"4c30d0a7-9cea-4fcc-b40a-dfa488355318","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":118,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"062b3f6d-1ba7-40ac-a82f-666a7a54d39b","block_type":"box","text":"Structured Notes.","page_number":118,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"241e2a19-b2d3-4e82-8f98-b6f6dd6c52bf","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":118,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"b16f7f6e-37ce-465f-9a9d-326fbe7e5cfa","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a","page_number":118,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"f07e04d5-63bb-425a-9da6-207e68a629e7","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":118,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"76ffaf94-7b42-468c-9694-6b14feaada88","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":118,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"1ea98c65-725d-4927-b0c2-0937f6695822","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":118,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"7e17e62f-46ec-4586-b4f0-45a84e5af5bb","block_type":"box","text":"may provide that, in certain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":118,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"c77b041d-434e-4229-b2e7-5cf61616696c","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":118,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"5a578b4e-f939-475b-b78d-445453b64011","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":118,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"756a4438-2664-4df5-980a-1000d8095c60","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":118,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"737ed7cc-dff0-4ac4-bcac-204ce4b2fec5","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":118,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"10fd13c0-004a-4df7-8937-7fc28b4bf397","block_type":"box","text":"II-75","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"152c832c-2745-43d8-a2f4-9dbb3b6bc56d","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"15bdc2fb-6321-46eb-a2fa-933a4ddb186c","block_type":"box","text":"structured notes may be determined by applying a multiplier to the performance or differential performance of","page_number":119,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"a7b8599a-99d9-4976-9361-98a08e3076f4","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":119,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"e25855a4-4900-40b6-97dd-994066337719","block_type":"box","text":"the risk of loss.","page_number":119,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"d1a35590-0abc-46e4-a568-7b2f5c3401f3","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":119,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"11fcd934-6c8e-4306-aa99-29ade7ce42a0","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":119,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"d07acec7-6eff-4a62-b82d-95803d1d7a72","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":119,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"dbd88c0a-2d29-45a7-ab2c-c6f325336795","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":119,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"04732d54-e1f9-4e87-b834-55a80f4a9d20","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":119,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"0922585a-bf28-4c21-a054-06337aa15f39","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":119,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"7737a224-c102-49cd-a028-07341baad723","block_type":"box","text":"Taxability Risk.","page_number":119,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"472d727e-723b-4c4d-80a4-415985aa1230","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":119,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"f04c9dfc-d431-41c2-9d87-4f2311773ae7","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":119,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"83188c35-a1ac-4a0d-b205-a252c240ece2","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":119,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"ed5a56af-1b6b-437a-9bea-89191ba86060","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":119,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"c88907c7-bdbe-45da-82bb-2a5473cb28c5","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":119,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"0df06cb1-1d1c-476e-aca2-56205b720075","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":119,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"2f0c60e2-0940-4137-a835-f5dee74b08a6","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":119,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"f09d1a4b-34d8-4083-b5de-98b971d9afb9","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":119,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"c58147e1-34f6-49ac-830a-974dfd55b35c","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":119,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"9ec9a932-0bcf-4cef-8ec9-596c34f406fa","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":119,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"2035e367-dd64-418c-b44f-50c3fc585c33","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal","page_number":119,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"a3d78de3-316c-4996-8135-29a501f7dac8","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":119,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"892032a9-72b9-47d8-950a-d973ede7e4b4","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":119,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"312497d5-46d4-4ff5-abb5-acd3448b112e","block_type":"box","text":"local intangible personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":119,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"83dbf651-75d1-44a1-a598-c7678e1c1de4","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":119,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"f0d87411-3262-4931-be27-3df767246ee9","block_type":"box","text":"the value of an investment in the Fund.","page_number":119,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"db47daac-633f-4c44-87ce-630ad87dbebb","block_type":"box","text":"Temporary Defensive Measures.","page_number":119,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"c9358687-2b09-40c1-b959-4f3b63350ddb","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":119,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"c53e9de4-31f3-4045-bf7e-24ae79ea6a67","block_type":"box","text":"economic, political or other conditions, a Fund may depart from its principal investment strategies and may invest","page_number":119,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"85e4d145-de88-47b5-b188-341e02204bb9","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other short term investments. Certain Funds","page_number":119,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"538ca890-d9d8-44ee-81d7-38749d5924e5","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":119,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"25209d4e-aa43-4f0b-9f57-cca07778f65a","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":119,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"2960c711-6394-443e-a3a2-80a8f7645a71","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":119,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"05d8c7f8-6a30-42ac-9bac-3aa980d99162","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":119,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"d6c0153a-6833-43a8-a76a-acc2b67ae359","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":119,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"c055e06e-6aac-42e1-b389-b2975eba680f","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":119,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"b2672278-7f98-414f-8507-5fd279c4870c","block_type":"box","text":"its investment objective.","page_number":119,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"877e523a-bbc0-4b7e-a7fe-8a2d289678c5","block_type":"box","text":"U.S. Government Obligations.","page_number":119,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"b7cf3535-5655-4ecd-b450-81175de14cbd","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":119,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"41649df1-122c-42a5-a44b-b297e6e1f8c3","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of certain agencies and instrumentalities of the","page_number":119,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"6d27f943-28ae-4fd3-b81e-ed35b7e390b4","block_type":"box","text":"U.S. Government are supported by the full faith and credit of the U.S. Treasury. Others are supported by the right of","page_number":119,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"d7fea73d-96b8-4915-a7e7-7ce4f59c9e38","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are supported only by the credit of the agency or","page_number":119,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"803cea24-a36b-4809-b832-d8f29ffc266a","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":119,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"cf650fc3-418a-443f-ab38-271a30a6fee3","block_type":"box","text":"support to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Certain U.S. Treasury","page_number":119,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"65965be5-4492-4c99-af30-2f41f0999dfb","block_type":"box","text":"and agency securities may be held by trusts that issue participation certificates (such as Treasury income growth","page_number":119,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"58947074-025e-43ab-9f8b-f0699bd8e674","block_type":"box","text":"receipts and certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":119,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"a813af67-d991-4f11-8660-846359d3ce87","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":119,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"10ce44cd-9dc0-41eb-b11c-d2755bf6f74f","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":119,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"eb992fcd-c03c-43ab-97df-c55f6e7a7396","block_type":"box","text":"and may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary","page_number":119,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"d833c096-dcf5-493e-ac3f-f3aeec9dd9ab","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":119,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"5dc57f02-4c06-4e8d-abf3-688a4788d6d6","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":119,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"aabdb073-d5ad-4042-80e2-e7fdd7f8380f","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":119,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"2fb76911-5a99-4100-9bae-4d3e0e3a109d","block_type":"box","text":"Administration, Export-Import Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":119,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"87cdc191-a061-47a5-962b-c943840f2de3","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":119,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"4c488f36-0b29-4e89-b123-808c89a9bc4f","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":119,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"06da14c7-bf1f-45e5-b40f-eb32f50c6ae2","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":119,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"55c8343c-0a4d-4b0c-b7a5-fabccf36461a","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":119,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"34f0de83-6b0b-4831-bf23-c6f006918028","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":119,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"8ee22227-3797-4f4a-9938-75a42e924431","block_type":"box","text":"II-76","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0da27668-acc6-4cc5-9dae-60f53252d85d","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bc32d1d3-b02b-49f3-a2c1-4d79b502e59d","block_type":"box","text":"U.S. Treasury Obligations.","page_number":120,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"deaeaf63-adbd-4bb5-b622-0fb62e1020d5","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":120,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"366cea9c-8c6d-4acd-8063-5a52d341f60b","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees","page_number":120,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"f20c4c32-b169-4f0a-af1a-2a6baa0646ed","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":120,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"65b0609a-ff40-42b9-9944-f03106a7313e","block_type":"box","text":"that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to","page_number":120,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"fc372b31-264a-4787-b669-79bfb009ed63","block_type":"box","text":"do so.","page_number":120,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"31022470-b946-47c9-9ae4-f2447fd58c57","block_type":"box","text":"U.S. Treasury Rolls","page_number":120,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"0574d1b5-d46a-4307-8a9f-ef9b2bd3ea91","block_type":"box","text":".","page_number":120,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"591ccb72-ce4b-4c74-90ad-6edfacbd03d3","block_type":"box","text":"Certain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":120,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"ea33ebf2-11c3-4ccb-ba83-b01e38477f8a","block_type":"box","text":"sells a treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an","page_number":120,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"d95bc869-ce32-4fe7-b582-acd568054927","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":120,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"2c4e8024-5c43-46dd-85bb-ddf3b335df01","block_type":"box","text":"maturity of a Fund’s portfolio and increase the interest yield on the Fund’s portfolio by extending the average maturity","page_number":120,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"04d058fe-029e-4fc1-8595-478799ddc33d","block_type":"box","text":"of the portfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":120,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"f7f7fc1c-9455-4528-9f45-83da0efc9dd4","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":120,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"d5f69884-810d-421d-8aac-e8b88963e794","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an opportunity loss if the counterparty","page_number":120,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"0f82de42-3036-4534-bd3f-892b0168a081","block_type":"box","text":"to the U.S. Treasury roll transaction failed to perform its obligations on the settlement date.","page_number":120,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"6f0350d7-8609-4a95-9ae1-e807b9d2fc4c","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":120,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"895530f5-9ef0-4ae8-bdd0-b88d66d4d842","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":120,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"c5237ee6-8f70-4968-a3d7-c4d6d9c807aa","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":120,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"89dde0d2-eea7-48c2-9c63-412585a00f0a","block_type":"box","text":"Utility Industries.","page_number":120,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"e6ba3d91-6141-4fe2-8972-ee3f696f761d","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":120,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"cd0f7ccd-298d-4954-8333-ffa140c8ad1c","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":120,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"d6c59bc6-2ba2-4204-aa5f-dfba0d974694","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":120,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"0f6ceb25-acaa-4559-aa4a-6d0a23e48cfb","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":120,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"38dbcd2d-96b6-4fcd-ab5c-88477c5f2c4d","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":120,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"318faa4d-3a81-4766-ba77-7bbcdb94177d","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of certain types of fuel, occasional reduced","page_number":120,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"0efa630c-b0cd-437c-8278-9304d5061d13","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":120,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"a7a1778d-adfd-4a9a-9fe9-6353bc710850","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":120,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"0a45743a-2214-441d-8dcd-084b42c5bb1c","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":120,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"b3d73aec-199a-4ebb-96e9-6a473ee17575","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":120,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"7effad7f-da73-4a91-aadc-f1ab7719522c","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":120,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"1a53125a-0c59-45d8-921d-f8a992912337","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":120,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"95198d9e-151f-40d5-ae7b-00d6abc9cd93","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":120,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"a4b662ef-a9f1-41dc-bfc8-9137a75087b4","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":120,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"fba5eb44-2d4d-4aa4-b3c4-a1791ec15961","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Certain of the issuers of securities","page_number":120,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"3f830f3b-c2ff-4245-8d13-bfe33d9e726f","block_type":"box","text":"held in the Fund’s portfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":120,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"37160a95-8cef-42c9-b159-71462b9a1574","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":120,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"eb61e9bb-2ddf-45cb-8eea-cd0ceb9ac294","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":120,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"ec95429d-aca4-4467-b646-b15892919e25","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, particularly a hydro-based electric","page_number":120,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"a96e6dbc-56fa-4c78-a03b-6b5b830179ca","block_type":"box","text":"utility.","page_number":120,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"a9061377-1c6c-45f0-b7bb-d064d68d15b4","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":120,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"58756ff2-d090-43fd-bf3d-ce21a5ba5ba1","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":120,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"cf5fd791-8ba2-4ca5-91bd-2e85bd18001a","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":120,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"96bf1521-92a5-4203-88d8-bbd01e24479e","block_type":"box","text":"interest rates and therefore may lead to volatility in performance.","page_number":120,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"26eb63c1-4064-4052-a5e3-39d470d20768","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":120,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"79bb0dab-9ef3-462b-896c-c3f477349bb2","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":120,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"d355ee8c-3bbf-4ada-8ae9-862784d51b54","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":120,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"87f92624-7273-4df1-a53e-b7ee79561691","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":120,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"9fe09e90-5b38-414e-87c4-0e64a3d50d32","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":120,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"c0fec033-1634-4950-aee0-f61e6a7d46e9","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":120,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"324e0c66-bb95-4389-bb9b-a941d8d69e63","block_type":"box","text":"continue in the future.","page_number":120,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"29dd0633-7718-48b2-bfdf-40e984ff106b","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":120,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"e53633db-70dd-4b8e-8152-762ce745253c","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":120,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"95c79d61-98ae-4630-a157-756bad24ca42","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":120,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"be32a781-ac92-4398-ab3c-12cea04fa179","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":120,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"968126ca-1298-4fdf-8a18-fd6e31cb70bc","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":120,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"81e84bcf-afa6-42a0-af6b-900b17144c54","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant part of their","page_number":120,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"ed587476-b6fe-44a0-8a1c-7597d49ad5d0","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in certain","page_number":120,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"74cc8b73-8c81-4337-83bf-68e15ad9ca15","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":120,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"83afb041-5db1-42a9-ab4e-8d0a32144c73","block_type":"box","text":"II-77","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"794434fb-33dd-4870-aea8-18e36198ef29","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fe736696-7f02-4a18-bb3b-c7c713dbdb70","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":121,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"017e0f18-d12a-4c9d-a2f5-cf3ac79257de","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":121,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"65593274-f1b8-44d9-967e-22574f417362","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":121,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"df8b987a-b783-4a52-bb89-321af0e62aca","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":121,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"4c34109a-698b-465e-a670-9e3a826e4db2","block_type":"box","text":"restrictions on the maximum level of profits of certain utility companies, but may also subject these companies to","page_number":121,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"3126fd02-f771-40bf-a318-827a302d4da4","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment opportunities that may arise from","page_number":121,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"cb281b74-81a2-4930-8b10-5a8264ca336d","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":121,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"6207af9a-6979-41fe-83b8-d7202dc9e5c8","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":121,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"9b64f818-36a6-4290-ba0a-8bee6a787897","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":121,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"b27e3b3d-36c8-4ac2-992e-258924e55c00","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":121,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"6fd8b8c5-21d4-4c04-b6b4-e0d1c5b24d3c","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":121,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"44c5d957-2178-4846-84a8-752b106f06c7","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":121,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"50b458a7-9f91-4b4c-8a77-83eac6690c1c","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":121,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"8c32e345-ae00-4a9c-9397-dd45970ac7ce","block_type":"box","text":"ways different from regulation in the United States.","page_number":121,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"ca2d5c77-07f0-4451-b4af-6e66245656b8","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":121,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"75329b2b-d197-49a2-bc72-06e68897637d","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate expansion of","page_number":121,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"671d6169-a07e-40f2-8fc1-4bfb607630ee","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":121,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"fbaa0b6f-8dcc-417d-bbb2-276e87041aa9","block_type":"box","text":"owned, thereby limiting current investment opportunities for a Fund, the Manager believes that, in order to attract","page_number":121,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"3da66454-ac4a-4d05-b746-e0446b93bf4a","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":121,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"98525af9-a637-4252-8508-6d8659900dc5","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":121,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"8ecbea66-015b-4d91-942d-99ee64daf116","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":121,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"2fe4e317-a5e7-466d-8514-9801e2a757d0","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign markets will","page_number":121,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"75b9ee7f-64dd-48c8-b518-98d044a52ba5","block_type":"box","text":"increase.","page_number":121,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"9576d366-0d8a-41db-8a8f-ddd59f523c49","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":121,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"995883da-3c7d-43b0-bf04-840f9e727a1c","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":121,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"8a4a6fff-0305-445a-ae09-b5de064dea58","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":121,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"03238579-272e-44ff-a189-4eace072a33f","block_type":"box","text":"Electric.","page_number":121,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"70b2ec05-4adf-4401-9ee4-a8c2cb2ed98d","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":121,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"29148223-6b22-4180-91f9-c0cdea092f98","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":121,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"79e7b0eb-d51b-48f1-8543-a445710ff780","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":121,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"552f609b-8799-4602-8a79-4d383c1b392f","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":121,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"f7015c8d-69ee-46c9-9f20-b706e12c8463","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":121,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"6951b0a8-8097-4a49-9d4b-bbd3b2724b92","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":121,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"53f5d97e-b333-40e0-8e4f-cf824c6f98b3","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":121,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"93e91c66-64eb-4e5b-ad91-7dd6fb133b85","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":121,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"51b1aa5a-889f-4eaa-bcf6-3bb351fc465b","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":121,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"003f252a-9227-4096-919d-b1dc05ac4580","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":121,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"55cf5864-1f19-4c7f-ac45-dcd56aa22dcd","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":121,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"a6821c10-08b1-47a2-98e7-f294d443ee65","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in part with customers. In a period of rising interest","page_number":121,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"35635954-3cc9-4b2a-b8bb-8b6fd4345f67","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":121,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"335f10ee-eaba-4bfd-b92d-ffc11b5b2308","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":121,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"853e388f-04d1-456f-ae43-b363772ca2f2","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":121,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"e3d2ce0b-358e-49ef-8934-2bd5bb0904cb","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":121,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"94aca678-6d46-4b75-812b-a30988f54f8b","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":121,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"86f67083-98f8-40e6-9a1f-802cd70c0fa8","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":121,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"4c6367d0-6372-4a4d-8fbd-0cf1257bc2d1","block_type":"box","text":"and for decommissioning such plants.","page_number":121,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"5852f806-7bdf-4222-9828-ca4739021b4e","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":121,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"afbe7c6a-6c4b-428e-9a96-52b5a42e97f0","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":121,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"090e1100-090c-4cf2-8ccb-3eb19385abae","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":121,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"04d40060-c0f4-41f1-88c3-0ce1cd79d863","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":121,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"fe539e54-6d02-409d-b6e4-ff06a2c0e66a","block_type":"box","text":"is expected to be the least competitive and the more regulated part of the business, may see higher ratings given the","page_number":121,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"3b9dcefc-5557-4d28-97fb-7502a7d73bbe","block_type":"box","text":"greater predictability of cash flow.","page_number":121,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"4151a439-dee1-42b5-90b9-9cec799de080","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":121,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"8628895e-799a-4cb1-b63e-88ddfcf3b9c2","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":121,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"c1408b78-282d-4402-80aa-26b636006950","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":121,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"670ff971-d30c-445e-898e-4e595d9042da","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":121,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"70be1fdd-1b94-4313-b024-4f860562af76","block_type":"box","text":"II-78","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a1ed9d47-67bc-4abc-b4d5-ea40cfc622a3","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":121,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e26ace30-680a-44c1-90b5-7fee09794026","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":122,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"f9645134-1282-401e-9fe1-66f1f18ea203","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":122,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"6fa06900-fc7c-4e62-bf41-506df13c601c","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":122,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"7d3b5887-46ab-4710-a4e0-ca5d745a92f1","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":122,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"c3c797a4-41cd-45d0-bb2f-d86c9a8e92ce","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":122,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"a96f2538-318f-425a-b4ba-616c0fcd57c1","block_type":"box","text":"Telecommunications.","page_number":122,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"96bb3474-ff77-411b-893f-75adceb9b230","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":122,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"b38916b0-0cc5-4972-b5af-34386c5ff76c","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":122,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"a1b338cd-0742-4b1b-a943-28f448c0202c","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":122,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"c689be13-4f0c-4c5c-a66b-69df3fa76d66","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":122,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"16027fff-4a28-4cd3-abe7-e62bf3a76c46","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":122,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"c2146831-a097-47ba-8d86-0fe5216b46b7","block_type":"box","text":"networks still comprise the greatest portion of this segment, but non-regulated activities such as wireless telephone","page_number":122,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"0bca542f-5c5e-4d93-9865-3d0868c9eb53","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":122,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"ea137005-12ba-4a15-9e14-ff4daf0d2b5f","block_type":"box","text":"internet services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":122,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"c051ac85-b870-4eca-8c87-f346f0b874eb","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":122,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"17c05ee6-f727-4c04-8ab8-12488bb51e42","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":122,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"110c2b80-e1eb-463e-9a2c-2349e3b976d5","block_type":"box","text":"regulated businesses provide significant investment opportunities with companies that may increase their earnings","page_number":122,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"dcbc4428-cb0e-4cd5-b6fb-9a244f091e90","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":122,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"b798d0f0-807f-40bc-bd66-a0e652652fef","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":122,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"0253d3eb-dcdb-4df4-a7b1-f8e65cbc98db","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":122,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"a5b9593a-eb24-4a5f-ae96-e4eabca82d1b","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":122,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"476281fa-ff22-4e2e-b10b-fdc7f919c8ce","block_type":"box","text":"residential, corporate and governmental customers.","page_number":122,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"35758e3e-9ab8-421b-86ae-8e7b68591b5b","block_type":"box","text":"Gas.","page_number":122,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"f48e7be3-1bc2-41c9-a594-33b32065d3b8","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":122,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"fbe20627-62ba-41ce-bfe0-ea1d45d3390b","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":122,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"1d8e02ac-6ae4-4f1d-9d17-5d5fcc21e60b","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":122,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"9eaa613d-b571-49f6-9b45-dbe479aeef63","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":122,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"5cdaca18-2642-4f6b-a733-99cd0c21adda","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":122,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"ba958b99-3b52-4687-bbed-188a6447f938","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":122,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"11e45abc-1807-4789-b3db-55383f7ff95d","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":122,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"f1335e3e-677d-4122-99aa-df46b45aacaf","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":122,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"2e40aa9d-32a1-46ef-9156-624b1e8fe240","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":122,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"67478024-8fcb-464e-98ec-c68871b0e57d","block_type":"box","text":"Water.","page_number":122,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"82a76a43-5f48-4d19-b5f2-488e6de69032","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":122,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"ce1aaf5b-7c35-46f1-bc41-4f8dc7dc48d2","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":122,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"8edd576d-f0ec-4d7e-8031-47124b9f2599","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":122,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"5bb4c9aa-5290-4636-a71f-33b54f4d0d38","block_type":"box","text":"opinion of the Manager, there may be opportunities for certain companies to acquire other water utility companies","page_number":122,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"230a054e-4b23-4b7d-ab05-6a03fb53e864","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment opportunities","page_number":122,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"ffd49b79-d790-48d0-862d-54b36ffd8611","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":122,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"e5119c0b-f1dd-4fe3-81b3-4b0b1cf631e6","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":122,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"de834fab-9c96-4d96-9e9c-54ad320dff89","block_type":"box","text":"Utility Industries Generally.","page_number":122,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"df0291ce-29b1-4740-80b1-75e7ffbcd41a","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":122,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"04fe553b-da32-4d1f-8169-a269a3ad327f","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":122,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"3b741180-760f-41e3-b517-b3d52ec30779","block_type":"box","text":"not develop in the future.","page_number":122,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"5f4055c0-4866-49d7-8eb2-7455afaf5481","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":122,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"91dfb19f-2c9a-4ebb-bd1c-4deafd83acac","block_type":"box","text":"A Fund may purchase or sell","page_number":122,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"e35b31a2-ebe8-4055-83fe-5401760e8a20","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":122,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"d3c81b44-fcf7-4cd7-bf82-69b30f91b6b5","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":122,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"a43fde6b-8f0f-4893-97d5-2d4c7db236b8","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":122,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"6a9869f2-1ad9-4d54-9db5-b743c351cbbc","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":122,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"78151862-36ab-486a-800a-351b7e2bf28d","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":122,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"1ec204f2-ad2f-44e1-bd74-84ba39b4870b","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":122,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"15e9b87a-aa4e-4d21-a9e1-d0a61472f63d","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterparty generally will be required to post collateral when entering into","page_number":122,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"e59f4fce-8e3a-48fb-94b9-bf12a2c540ae","block_type":"box","text":"certain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":122,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"3cbecdd9-4c14-4f32-a82d-604b97593d1e","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":122,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"3e628e2e-878f-4cc2-bff9-4b796a0c28e2","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterparty credit risk between trade and settlement, but","page_number":122,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"3a1bdd8b-da8d-4f3b-96af-0452d1054688","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":122,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"a11fd4c3-9948-4fa8-8e22-98de717a5e2c","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":122,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"735ed04f-38c0-4bc6-9f56-a45a8733259e","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":122,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"7165727e-5e3b-4b17-b707-1e263f5cde24","block_type":"box","text":"II-79","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7f63c305-2892-4696-9778-b13a082945bf","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":122,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0eeb10f4-54b8-45ae-9379-fdaafad8e898","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":123,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"5077accf-7ef2-4aea-8ba1-8b3e0536abb9","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":123,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"02e75c4d-9ba6-49fd-98cf-213ff73f537a","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":123,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"497dc64e-a35c-40b4-b397-cee2a23534ef","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":123,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"e1b81a40-5f0a-481b-b325-ff40db1eb0e3","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":123,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"dfa60327-d2fe-4e64-b698-68ac45048f95","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":123,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"c03c90f8-bce1-42d6-877c-e48491818c21","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other party to","page_number":123,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"3a0b5947-462e-4ec8-a9e1-f2b8ad08f998","block_type":"box","text":"consummate the trade. Failure of such party to do so may result in the Fund’s incurring a loss or missing an","page_number":123,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"8f25cb16-23a8-42fb-9eca-827be764c3ae","block_type":"box","text":"opportunity to obtain a price considered to be advantageous.","page_number":123,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"34333c53-df73-4f08-985f-0bbb88b11774","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":123,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"a1963824-c22d-47f4-a79f-4c1adea9af2b","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund starting on the","page_number":123,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"a258c3f4-6d5e-41e2-82eb-3ade53b69154","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":123,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"bc8466d5-5883-46c0-bb08-aef4145f0253","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":123,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"385be2f4-970c-4c65-9e26-e573476beaaa","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":123,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"90bf2e9e-f19a-4ffd-ba0e-35e1c709be3c","block_type":"box","text":"securities (","page_number":123,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"0a5f9433-bd1b-4080-a71f-0514d885b97e","block_type":"box","text":"e.g.","page_number":123,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"133caec3-fe96-461e-acfe-2acb196f4059","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":123,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"770cfefa-4243-4a2b-b74d-8922dc648d18","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":123,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"a6fffc0a-f861-4acf-82f3-ba691b2b827f","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":123,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"541cd6e2-759b-4bc1-b882-80cbbe26b206","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":123,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"3144290b-c6f9-471f-adde-d147cf2b25ea","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":123,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"ac2154b5-3445-4070-94cc-077fd1c30344","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":123,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"72713122-a183-499d-a653-47014d21c663","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":123,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"0afb964f-c0c7-4019-91f8-2bfb080608aa","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":123,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"627f7e05-9d00-4562-8128-bc19c6dcbd6a","block_type":"box","text":"their affiliates to include in certain financial contracts, including many agreements with respect to when-issued, TBA","page_number":123,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"3bc4de33-bf91-457b-8258-80c028a7257e","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterparties, such as a Fund, to","page_number":123,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"310f0794-aaa9-4d0a-a6b9-6b40d67b2c7c","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":123,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"b6cd2b3c-55e5-4294-a66d-5814287bf433","block_type":"box","text":"support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or insolvency","page_number":123,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"649edff6-f7f0-4f15-af40-2bc353667449","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":123,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"051c56ac-14c9-4985-a019-f9d193954b78","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":123,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"8641a09a-fa43-41b8-8af8-d21bcdf616f5","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":123,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"5b9205c5-a4c4-49f5-907e-ea2584e7e91c","block_type":"box","text":"Yields and Ratings.","page_number":123,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"2befcd15-081a-4779-8a6d-800c8bdb6786","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including general","page_number":123,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"0bf12b07-5a81-462c-81ae-d8d2d6a11ad9","block_type":"box","text":"market conditions, conditions in the particular market for the obligation, the financial condition of the issuer, the size","page_number":123,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"00472311-17f1-4005-b3df-8650206dbb8c","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":123,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"4510c430-607a-4c59-a63c-61716cf8d1a6","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they undertake to rate. Ratings, however, are","page_number":123,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"119b4a91-878a-40d5-b9e7-f4a4d9f07bcb","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":123,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"5113bc6c-320c-4e9c-afdb-098be384124d","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":123,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"2ff12d49-60af-400a-96bd-f60fb4576641","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":123,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"3628a0d4-4ea6-4a45-80cd-25bcd8b02fc3","block_type":"box","text":"continue to hold the security.","page_number":123,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"4d9738b4-41a7-4b95-87f8-4f389281ac4b","block_type":"box","text":"Zero Coupon Securities.","page_number":123,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"5d91f3b1-4f5a-434c-9104-bdf6690515b8","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":123,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"7b890f98-3add-4309-bfc2-d35745027fb3","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":123,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"e9457ce5-12f7-4206-a636-31c3b905aef5","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":123,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"8dd2c5c4-3b0c-498e-a083-f73c86cb48bb","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":123,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"e2ea5c98-34d8-428d-b9fb-e642ecefc599","block_type":"box","text":"security.","page_number":123,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"2e18b5f3-6cea-4a1b-bbc3-9d1b46f38629","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":123,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"7d1336b5-304b-4f45-a148-185736ea3dba","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":123,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"9e86fbaf-5327-4c0f-8179-afa443cbc776","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":123,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"b71e13a8-863e-4dc6-89cd-8d8056ca768c","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":123,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"c9dccfaa-78e4-4205-9991-4aee5870d393","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":123,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"2636bc53-0a49-41a2-8de2-eeabdf7681ad","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":123,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"1a5feae9-2c9f-4d82-b7aa-59e345adf485","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":123,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"77158a10-e0a6-4a4f-b2ea-738793b8124a","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":123,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"8d032ef5-33e2-4650-9491-c5f4a8bd99ae","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These investments","page_number":123,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"48632d33-a9bf-4457-9a1c-9d69db07e977","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":123,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"9c2c0915-efec-4d7c-a229-b0bc0c3162bf","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":123,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"fa08d41a-eaf7-48df-9a48-892f64bbdfc7","block_type":"box","text":"II-80","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"29009d8f-ae9f-4e24-bf0a-7e3bff88e8c6","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":123,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cd8118f8-216d-4a84-926d-87dcd2249675","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":124,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"813356d8-a688-46a0-9086-e835f2686dd3","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":124,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"f1620a8f-8342-4a37-af90-523c7e906d5f","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":124,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"6683ff85-76b8-4561-86f8-8f7c5614ac1c","block_type":"box","text":"intervals.","page_number":124,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"b7aba2db-0b52-4a0b-b2a8-7533b2225e6f","block_type":"box","text":"Further, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":124,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"f8b0b160-dcd1-40d0-8c34-12b76222d413","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":124,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"c45d329f-782b-47e6-b6c5-22f23fb4fe12","block_type":"box","text":"portfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":124,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"f376e739-4a85-42ed-a212-0fd47b050e12","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":124,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"11ad4f67-665b-4632-b4c7-3fe198cf37b5","block_type":"box","text":"exposure to zero coupon securities.","page_number":124,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"48d9ae11-5c00-4945-a2fc-59812054a7f1","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero coupon","page_number":124,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"42934fc4-0f48-4982-8eb1-b3dc92cc304f","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":124,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"7e14ab40-f4b3-40b9-aeaf-c39b27b2b78c","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":124,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"ea887d84-e314-4875-9608-1f5d5d0f3a7f","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s portfolio.","page_number":124,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"617c516a-299e-4f2d-83cc-6b7ddbd00d6a","block_type":"box","text":"Suitability. (All Funds)","page_number":124,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"0bddcf22-bb0d-4c33-8d02-30c2b00929e1","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":124,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"54b02203-f53a-41cc-bf12-f736a0c6d017","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":124,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"7df6af32-bbe8-42e2-af4f-2c1625582d3a","block_type":"box","text":"investment program. The suitability for any particular investor of a purchase of shares in a Fund will depend upon,","page_number":124,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"7ddce767-64b6-4480-89b5-fb8788359f9b","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":124,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"00731af7-3b7f-486f-9a3b-8a977540c70e","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":124,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"e3bac91e-2c82-49d6-af23-bd5c5778f958","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":124,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"0adea66c-1d30-42f5-bbf5-901ddd58d44f","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":124,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"e700cb81-59eb-42fc-b574-f8989324823f","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":124,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"6b28838c-8766-4aa5-b483-e9bf9b808477","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":124,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"e780b102-114d-4494-8f6e-94e2fac59aec","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":124,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"6db441d9-c84d-4217-a78a-08e36ddbf927","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":124,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"51d812b8-b296-47d2-b2ab-0a79f36ce794","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quarter of the taxable year, (i) at least","page_number":124,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"69cb38a6-ad38-4cc2-96b4-d820ea42cb0c","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":124,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"7fb85aef-452f-402b-9e8f-0aea60d275f1","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":124,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"5c74c8e5-72d2-40de-b3ff-aecb0f329cd4","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":124,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"2a8a30fb-cadb-4d9a-85d4-b6325a3873de","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":124,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"83730c70-41f2-4607-9b5d-6fc4d5362fba","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":124,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"5bbb0a48-8e38-4a8d-af5f-8b9f77980d77","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":124,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"014817f4-1c49-4c33-8b10-4d3c69985a04","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships","page_number":124,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"5ac983ee-912a-4e42-9f42-c5a664300381","block_type":"box","text":"(","page_number":124,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"ad7df78f-2185-48b9-ac00-56206ed6babb","block_type":"box","text":"i.e.","page_number":124,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"dfa2d5f5-4066-4d2d-8928-a02c08703b9c","block_type":"box","text":", partnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":124,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"c59b27d0-4db0-46b5-b9c6-2171d559a641","block_type":"box","text":"partnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":124,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"68ce5d84-91ab-4bb3-abac-56308a747e21","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":124,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"7144a8fe-317e-4c5c-8a39-4cc746b61a4f","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":124,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"a6b6428b-4568-4420-bbd9-91f586a02f71","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":124,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"98484fb6-c4f8-4942-8883-9f9a6346a89c","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":124,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"6f288ef0-df00-41c7-8fa3-07341f1122a3","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":124,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"5875ed1c-63aa-4cfc-85ec-966c7f2e6cde","block_type":"box","text":"regarded as the sole issuer.","page_number":124,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"f8ca200b-91da-4fdc-8180-927a7fc45541","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":124,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"540e3a9e-4c6a-40fc-9a1a-0e76c46a92f1","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":124,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"9ed22c6a-57a9-422a-9374-b51169ea15a9","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":124,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"6289f659-d234-450a-8663-3aa7a2b57ca7","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":124,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"08e70e3e-a0eb-4f5c-a5df-2b5734db3d5d","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":124,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"ab32d3fa-59e9-4c1f-b5a2-bae9ff44ad15","block_type":"box","text":"75% of its total assets.","page_number":124,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"a7555075-3061-455f-86e0-0c989f85da48","block_type":"box","text":"II-81","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3fafffac-05ef-4282-9290-33c2ec4c22a7","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":124,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"309928bb-acc4-4163-8808-5f235abb1c06","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":125,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"c9011635-9c12-4da6-b311-e7eb47be16c2","block_type":"box","text":"Directors and Officers","page_number":125,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"452a8255-0c5e-415f-972c-899c32ec8593","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":125,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"a8b550a2-9c56-4f20-b4a6-d41a05c5ad27","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":125,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"e7618851-ffc3-4b3e-b7e8-9af1fbea7be8","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Part I of each Fund’s SAI for biographical and","page_number":125,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"e28c40c7-dcc8-4797-b5bd-ed99bd4ff1c9","block_type":"box","text":"certain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":125,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"98bcb15a-5801-4e09-a2f7-bfe195646ba6","block_type":"box","text":"Management Arrangements","page_number":125,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"a1a56e77-ca15-4af3-a783-5c24916ac927","block_type":"box","text":"Management Services.","page_number":125,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"adee186f-22be-4c23-9de2-5004eae36389","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":125,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"b1694370-a345-4aa7-89d2-af34d15e24fb","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":125,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"b6d17f87-c035-4fca-bfd5-0e15680186e0","block_type":"box","text":"portfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":125,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"9653c217-e443-4a12-9cb5-ad48d455448e","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a particular security rests with the Manager. 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Certain accounting services are provided to each Fund","page_number":125,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"3a9f1b08-7741-4bf5-8bdd-8b484fe05b9e","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”)","page_number":125,"box":{"x":69,"y":612,"width":830,"height":11}},{"id":"fe4847a9-e366-4d16-b8a9-cd42b1a45094","block_type":"box","text":"or JPMorgan Chase Bank, N.A. (“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as","page_number":125,"box":{"x":69,"y":627,"width":794,"height":12}},{"id":"e617b95c-ac09-434d-9532-c5529e264552","block_type":"box","text":"applicable, and each Fund. Each Fund pays a fee for these services. 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Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":125,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"02043990-ee2a-4b57-aea0-71ae83ecd933","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":125,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"baf5f77b-ac39-4984-8adc-3955cb242310","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":125,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"07f7892d-827e-4273-8ca6-fc41f48eaa48","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":125,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"2a323cc3-f0b4-428d-8a70-519431732734","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":125,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"71efc184-07a8-46e6-b460-2bda14bdb720","block_type":"box","text":"Duration and Termination.","page_number":125,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"cb15508a-ba43-4cca-a165-2df55a5f507d","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":125,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"85e47164-a9cf-4daf-aea5-47854bfc7be4","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":125,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"de7e1029-e6f6-44d3-af98-99828f85f4c2","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":125,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"dac71ef4-3845-437f-a9dd-de5dd633132f","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not parties to such agreement or interested persons (as defined","page_number":125,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"ae51a171-26a7-4cbb-89d3-83fd341f49a0","block_type":"box","text":"II-82","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"99ea98f3-4719-4634-8b8c-7f804591b4de","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":125,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3b92c3bc-c3d0-4b29-bbb3-824757589e83","block_type":"box","text":"in the Investment Company Act) of any such party. 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(in this capacity, the “Transfer Agent”), a","page_number":126,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"368bde95-2141-4f8f-82d3-0709607cbc70","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":126,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"ca81dddc-49b3-48da-86ac-f7b7ebbd047e","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":126,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"c8300a40-b4e3-405c-bc4b-a0b1fc806133","block_type":"box","text":"with the Funds. 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Please see the inside back cover page of your Fund’s Prospectus and Part I","page_number":126,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"430e0d54-0244-4caa-bad4-0f20b9777e07","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":126,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"4f2ef96e-c106-40f9-a1b2-157ea3112f65","block_type":"box","text":"Custodian Services.","page_number":126,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"b0689c47-70c7-44c3-a2bc-d75f1375e38b","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":126,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"f8fd880e-b1d6-4d51-af74-354b83a1c994","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. 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State Street, BNY Mellon or JPM provides similar accounting services to the","page_number":127,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"60746b2c-0990-4574-84aa-8892ee97b0f6","block_type":"box","text":"Master LLCs.","page_number":127,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"8031ba80-88f0-489b-bc9c-f58210029a5a","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":127,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"b0774bf1-710f-4e18-87cd-3d4abb9da5cd","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Part I of each Fund’s SAI for information on the","page_number":127,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"580f3ef3-edb5-487b-bbc9-a441c07a7e0c","block_type":"box","text":"amounts paid by your Fund and, if applicable, Master LLC to State Street, BNY Mellon or JPM and the Manager or, if","page_number":127,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"3f208dcf-26ea-49eb-b04d-6c6ea526ea05","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":127,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"9e78221d-b17b-45eb-a4a0-770dc01c529f","block_type":"box","text":"Distribution Expenses.","page_number":127,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"fa67ab3d-2eb8-438a-a2cb-8a70bfff647c","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":127,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"f8ad15fd-f4cb-49dc-a77a-fd60d11c09db","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). The Distribution","page_number":127,"box":{"x":68,"y":196,"width":807,"height":11}},{"id":"b66fc2c0-a100-403d-bd10-28554b92e6aa","block_type":"box","text":"Agreements obligate the Distributor to pay certain expenses in connection with the offering of each class of shares of","page_number":127,"box":{"x":68,"y":211,"width":842,"height":11}},{"id":"05768403-9203-46ae-8d09-3b5626364381","block_type":"box","text":"the Funds. After the prospectuses, statements of additional information and periodic reports have been prepared,","page_number":127,"box":{"x":68,"y":226,"width":813,"height":11}},{"id":"681c0034-5390-4f10-b4e1-ba00c5d4848e","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":127,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"c1b5e587-0941-4a5a-a003-05f0e93f390e","block_type":"box","text":"in connection with the offering to dealers and investors. The Distributor also pays for other supplementary sales","page_number":127,"box":{"x":70,"y":256,"width":799,"height":12}},{"id":"fd7cc210-7071-42ef-9b14-af0e299278a5","block_type":"box","text":"literature and advertising costs. Each Distribution Agreement is subject to the same renewal requirements and","page_number":127,"box":{"x":70,"y":272,"width":788,"height":11}},{"id":"9e8b814f-6e78-4b7b-b8d6-00f8e2f1a4dd","block_type":"box","text":"termination provisions as the Management Agreement described above.","page_number":127,"box":{"x":68,"y":287,"width":513,"height":11}},{"id":"7c41644a-d9df-402b-9de5-5c0571bfd27e","block_type":"box","text":"Code of Ethics","page_number":127,"box":{"x":69,"y":317,"width":105,"height":9}},{"id":"ce4dd6c7-6017-432a-98e3-be6221f17589","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":127,"box":{"x":102,"y":339,"width":780,"height":12}},{"id":"62b10974-c9b0-41bc-bf42-a03295ea5f53","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":127,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"e6c7e210-2a80-4541-9dcf-f613c26055a4","block_type":"box","text":"investment accounts, including securities that may be purchased or held by a Fund.","page_number":127,"box":{"x":70,"y":385,"width":593,"height":11}},{"id":"3202e68b-6cdb-4956-9358-4735667dd0b2","block_type":"box","text":"SELECTIVE DISCLOSURE OF PORTFOLIO HOLDINGS","page_number":127,"box":{"x":282,"y":414,"width":413,"height":10}},{"id":"4f3c00c1-3b91-4a82-814e-eb6bf5854a67","block_type":"box","text":"The Board of Directors of each Fund and the Board of Directors of the Manager have each approved Portfolio","page_number":127,"box":{"x":101,"y":437,"width":777,"height":11}},{"id":"7a7dda18-1f3f-4edf-8aed-3c7a8ad48454","block_type":"box","text":"Holdings and Related Information Distribution Guidelines (the “Policy”) regarding the disclosure of each Fund’s","page_number":127,"box":{"x":70,"y":452,"width":788,"height":11}},{"id":"5ae3382d-a452-4065-b881-33c651678712","block_type":"box","text":"portfolio securities, as applicable, and other portfolio information. 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BlackRock may have a potentially conflicting division of","page_number":133,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"28e6e93b-a848-49c6-b832-b23badef2671","block_type":"box","text":"loyalties and responsibilities to the parties in such transactions.","page_number":133,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"26ebafeb-bf52-401d-a029-bccdb0a3ac80","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":133,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"ae252fe9-cc43-406d-8777-a90f7ccf2e5d","block_type":"box","text":"and those activities may have an adverse effect on the Fund. 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It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":133,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"14bfa6d0-50ef-4bdf-9c03-51dca4222bd0","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":133,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"e587d96a-07ad-45ce-ae68-9b4a159dbd0d","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":133,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"cf40873f-f5d6-4145-bbed-9516066e1d06","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":133,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"8e7e4ec8-ecf2-42d4-961d-a5f3f453ab6a","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":133,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"66565283-bcf8-49c9-a720-8e0bc221464f","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":133,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"26b07ef0-39a1-473f-bd7e-71acac5674ad","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":133,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"96ba06e6-e299-4c2e-8e77-ce88395969e5","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend certain","page_number":133,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"0e9de2c1-f66b-4b92-9b66-c0e2e9bac128","block_type":"box","text":"II-90","page_number":133,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"238e910b-f72f-4686-b6fd-0ae3defc06cf","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":133,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"743197e1-c914-43f7-b7ad-d943f9dc90b3","block_type":"box","text":"types of transactions in certain securities or instruments with respect to which BlackRock is performing services or","page_number":134,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"e1734ec9-7300-44a9-9d7a-87908ce0ffb6","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":134,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"078b104c-ac88-4f18-b870-ed0d8b884adb","block_type":"box","text":"accounts and accounts under its management may limit the investment opportunities for a Fund in certain emerging","page_number":134,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"64307dbb-6b9d-4b52-8fcb-a0be0ebce5fc","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":134,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"28405e80-fbcd-45b4-bac4-b1b248e6322e","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":134,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"938d5ff1-d8ce-480b-ad6c-c237feb19c51","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to certain fundamental analysis and","page_number":134,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"684b5fe7-37e7-407d-a256-2f2347fa7050","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":134,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"337e0484-8179-4692-be32-0aad0f484542","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":134,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"9f12a5a0-762f-443b-a9df-a252e5f79c6a","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":134,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"c4ae3034-3bc7-422a-8165-e17c8101fdb9","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":134,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"3a78c274-5871-4d2c-97fd-034ad2463b8a","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":134,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"17042f97-fbf9-4286-a5f3-80fcec4a93ce","block_type":"box","text":"proprietary activities or portfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":134,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"1e85eeb6-388b-419c-a35d-3c9226367e67","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":134,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"b3f9b34c-0cbb-47a0-8e34-00b7c93ac0f4","block_type":"box","text":"managing a Fund.","page_number":134,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"388eb3c8-6f6c-433b-99c7-8420a1b6b085","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":134,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"2bceb4d5-216f-408e-8310-21756514de07","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":134,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"194d7e8d-4be8-4c76-9628-4c325bc5994b","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":134,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"b7e71249-3e71-42a5-8fcf-99ccc59f00ad","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":134,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"5838c64f-d7d5-4328-a2d5-c278b696a572","block_type":"box","text":"portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":134,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"c159c99f-1082-4700-a618-fd9afa8eaaca","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals or","page_number":134,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"0d734270-ef27-4419-ad12-7e8aab6b8092","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":134,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"952df3c3-0582-46f7-9d7a-3f483f5b9ad0","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":134,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"8847a650-96c7-4208-91d9-11150cb3c0b4","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":134,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"e0a5b88e-4f67-4b30-af4e-94af57509f92","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":134,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"9eefe0a8-3f3c-4939-8829-b162511d73be","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":134,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"56fba2ea-5db8-4f62-811a-7378c1c917ad","block_type":"box","text":"as the counterparty, principal or issuer. In such cases, such party’s interests in the transaction will be adverse to the","page_number":134,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"66a9b834-21a4-4a2d-9464-635b665c6bd1","block_type":"box","text":"interests of the Fund, and such party may have no incentive to assure that the Fund obtains the best possible prices","page_number":134,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"f3f84601-1aee-4203-a3c0-6303b75065b1","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":134,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"154107e6-ec57-4c9f-bb68-f6984771689d","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":134,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"b00c5f1b-95ad-42f2-b014-fc29c9c7c7cd","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":134,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"bf7e228f-ece9-4e3b-8ee9-9901c22c2f5a","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the performance of the Fund.","page_number":134,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"05ebf494-9b3f-45df-b001-c1cd89df5dbd","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the performance of","page_number":134,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"a66bc90b-a49f-4f91-83cd-90c9a0afc597","block_type":"box","text":"certain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":134,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"85787e5a-0106-4a5a-a4b0-86810fac4fbe","block_type":"box","text":"underlying fixed-income indexes used by certain iShares ETFs, related to derivative fixed-income products that are","page_number":134,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"460c070d-d1a0-47d8-a866-a169faae777a","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":134,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"f4799d69-1927-4f88-be66-e0815d6e1c92","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":134,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"585e5c6b-9a4a-4d93-86db-ae44245a44c6","block_type":"box","text":"under management for BlackRock.","page_number":134,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"b93b2820-d67b-4908-911e-b1c9d61bb8dd","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":134,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"1b533d81-ec87-485e-85ab-08122527b9aa","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":134,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"7ed1eb23-ef4c-4065-9701-744f57ad8503","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":134,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"8570a813-a6fc-4b71-8a62-ead99c20f7bf","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":134,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"2f55cebf-4b0d-41ff-813f-83a642c1ca73","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":134,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"2b78cb43-33ea-4724-b449-f0ffbed9af2c","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":134,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"60b07bf7-6a78-4aeb-898f-1e153f395fb0","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":134,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"839e21ca-aa8d-4267-b71f-e0ab291e5dbb","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":134,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"9090bed0-17f3-4fe5-8ebc-a241885218ec","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":134,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"cc23e13e-31c1-4162-b9cf-62c2126abae9","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":134,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"ca23e06b-6611-4973-8b6b-2ab3efe8f71a","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":134,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"be06a451-caf9-4dee-97f4-8d9ab67bf854","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":134,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"4dffefe1-b4ba-4e6c-b26e-e3ea18f3ea71","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":134,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"bdb52cdd-534e-4b72-876a-5020dad5073e","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":134,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"b2069245-a613-431a-a616-22aeb0c6d756","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":134,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"23244a2d-6587-4d8c-bc77-01778c005aaa","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":134,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"6e3961d8-9922-439d-b939-b9c70983a767","block_type":"box","text":"II-91","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bb443690-e783-400f-a5b5-4c7843918286","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":134,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"72684453-aa3c-4f2b-8a3f-d825e7060abf","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":135,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"c5099d9a-96f0-47ec-a851-c2561464e8cb","block_type":"box","text":"any such fees or other amounts.","page_number":135,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"8b71d615-945f-4a49-8411-54e01a8af5c4","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":135,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"ccb521af-37c1-4e85-881c-14218db4a1a6","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":135,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"088be1ae-a488-4bd9-8990-a34b8428a71e","block_type":"box","text":"A Fund will be required to establish business relationships with its counterparties based on the Fund’s own","page_number":135,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"d2c71274-a402-410c-8e47-f97eaa08db65","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":135,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"37b6970a-3a53-419a-9052-326c4d53ffeb","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterparties will rely on the credit of","page_number":135,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"918769ed-0f97-4486-b6f0-e2fc68f7f245","block_type":"box","text":"BlackRock in evaluating the Fund’s creditworthiness.","page_number":135,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"e175f4d5-afd4-4533-8c9c-a4a9cdeb0cdf","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":135,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"957edfdc-02f9-4258-97f5-a5c1172729a6","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":135,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"887dfe99-8446-4b0f-99b5-10865b9f7270","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":135,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"5506273c-4a53-4a4b-9c27-388fedd54206","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":135,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"e76955d1-2504-4fab-9c3c-9a0c17ca7e3c","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":135,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"df7c4f62-154e-4a61-9422-7da357b404e5","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend particular","page_number":135,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"a86a55ad-71a2-47c3-8bfe-d74f53d2df98","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":135,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"d9c7dfdd-c283-4fc0-a4d0-ae68e39d9f26","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":135,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"7cc52d97-4099-4fbe-8f3c-623ed33fe19d","block_type":"box","text":"BlackRock. As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":135,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"fc65196d-c5b1-4e76-8ac3-e19c68faffff","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":135,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"09ffd8a4-8fa2-4998-a7ac-8b279bdb1409","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients and/or","page_number":135,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"cd5dc6f2-9560-4e95-97fd-4b8a79754dfe","block_type":"box","text":"funds against a shortfall in collateral in the event of borrower default. 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BlackRock oversees the risk model that calculates projected collateral shortfall values using","page_number":135,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"8c4943cd-7659-477b-b14c-69623ec0bbbc","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":135,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"f2a6e3e5-36f5-4551-90f4-26b8f8e005c1","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":135,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"764cbbad-5cd7-4819-9ae7-26625bb5d943","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":135,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"92e42826-e112-459d-8c67-e9fd2ac4a7f5","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":135,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"7095b44d-2086-49c5-912e-8339af0f3b95","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending opportunities for certain loans (including by","page_number":135,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"6a3efd71-a661-442c-aedd-5c88446674d5","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":135,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"9e47b56d-ff5a-48a8-b26b-ea7807f20eb4","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":135,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"0d04b0fc-bbbd-4965-9bfb-c43255b3c44b","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":135,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"ca4d14f6-bcbf-4856-91fd-470df668924b","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":135,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"890c2094-1284-4962-a702-9df90e2214c9","block_type":"box","text":"eliminating the volume of lending opportunities for certain types of loans, loans in particular markets, loans of","page_number":135,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"cd2f7970-77f7-4b6b-8017-f971eec8edcc","block_type":"box","text":"particular securities or types of securities, or for loans overall. In addition, some borrowers may prefer certain","page_number":135,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"0dbe13bc-6e20-42fa-9506-0e792e74409a","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":135,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"17e73e5e-8a83-4b4d-81e4-bcce8519e7ac","block_type":"box","text":"regulation.","page_number":135,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"9f7d0b9f-594c-4b61-aaa9-c5ef96857411","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":135,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"380dac4a-5bbb-4e85-b863-b9ecbf171b1e","block_type":"box","text":"order to allocate a loan to a portfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":135,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"aab31814-1436-49cd-96ff-83ecf8ddbdc2","block_type":"box","text":"various program limits (","page_number":135,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"aa6c30b8-2abe-4d79-a977-118bb8fb258e","block_type":"box","text":"i.e.","page_number":135,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"f57b032b-50a7-43ce-99ec-a0f9997ab2ee","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending portfolio must","page_number":135,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"7e8fabfe-de46-4cde-a245-cfda75d3a8fc","block_type":"box","text":"hold the asset at the time a loan opportunity arrives; and (iii) the lending portfolio must also have enough inventory,","page_number":135,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"fa63f647-42eb-43c9-a630-cab2e2cc75ae","block_type":"box","text":"either on its own or when aggregated with other portfolios into one single market delivery, to satisfy the loan request.","page_number":135,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"d15289e7-1b78-4c01-a755-7e0da9edb0aa","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending opportunities for all portfolios, independent of whether","page_number":135,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"547bb817-c516-4cf4-b44f-079e054321ee","block_type":"box","text":"BlackRock indemnifies the portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes.","page_number":135,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"6c507f16-a612-4b5b-94d6-f7f60ff840c1","block_type":"box","text":"Specifically, short and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":135,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"2e6e9245-606a-4cdc-b752-85956f31b9a8","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":135,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"245a5d9d-f667-4ee5-b26b-9962d03b43a8","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":135,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"5bad6b48-7f67-41c1-82cd-102685430b64","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":135,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"29eb3511-1f77-4ef3-8e82-63874d2c721a","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if portfolio","page_number":135,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"5d6a5186-7124-4a34-92fd-3054f2120a6b","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":135,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"8128eae5-dea4-461a-9960-852f4709653b","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":135,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"70c653aa-7090-4de6-bd2d-a95547aa4d1c","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":135,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"55972fbe-b4ca-4f53-b956-173bfba0ffcf","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":135,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"f1a8f4a6-0133-4e65-9028-df0e4c6e72f6","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":135,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"820b0c30-6a95-44fb-a0ba-97d10c28f1c1","block_type":"box","text":"II-92","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7250e400-7c69-477d-81f2-6634bd10cebc","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2eead65d-04c8-4ea3-83b8-fe1be27586bb","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under certain circumstances, the Funds will not be charged","page_number":136,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"21078a92-bd0f-4345-8498-04d8fca5bb88","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":136,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"4d73b3be-021e-46cd-9a20-71ca6559397f","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage—Transactions in Portfolio","page_number":136,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"ec531d80-d055-4961-848f-61f4f0e4871d","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":136,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"9774293f-8b01-42ca-8412-9469c167836d","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":136,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"1114bd8b-962b-4f56-89bc-fc523f993c35","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":136,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"813e202c-df25-4642-aea0-d6fcfd83b86e","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":136,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"cf1b244b-b063-41da-b8b0-de89be685bc3","block_type":"box","text":"sub-adviser to certain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":136,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"27e5c63d-43c6-49c9-ba76-c12c4aa5d667","block_type":"box","text":"than through client commissions.","page_number":136,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"819d50a4-68c9-4ac2-8069-5e1023352689","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":136,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"2e17f74a-8a0c-43cb-872f-4d2a6faab2fa","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":136,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"4d5649ec-e83f-4b80-a09b-0107cde33f06","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":136,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"4987126f-6b8d-42d1-a120-cad61c6e01d4","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":136,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"ac0cb81d-95b9-4a65-9415-421147fa6c5b","block_type":"box","text":"services may include, to the extent permitted by law, research reports on companies, industries and securities;","page_number":136,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"d57ab3d1-c616-4c56-8a96-9b82a18c7792","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":136,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"5a975019-afc5-4f2e-939b-13b3322bea1c","block_type":"box","text":"research-oriented software and other services and products.","page_number":136,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"e9d007a4-075d-47d1-b7ab-d067d1ae5add","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":136,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"f683bbc1-cd91-4f83-baf1-2aab5cf5163d","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":136,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"b55e7547-fd0c-4f70-85df-1c8d12a8c4c8","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":136,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"f19c5cff-2fa3-4ceb-900d-a58e985e48ac","block_type":"box","text":"disproportionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":136,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"3f0f2073-1fed-4904-a119-d8128b6b0c9f","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":136,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"f6faa707-97fa-4ff9-944a-026b9e127445","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":136,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"8c3d4a1d-8bfb-4ca7-afa5-c1693de85e4d","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including disproportionate benefits, of economies of scale","page_number":136,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"755bfee9-1139-4c4c-bc9c-963ada19cb58","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":136,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"ccd6f3cb-98e5-4654-bb5e-68524b2615e7","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":136,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"8cf6a3f5-0f64-499d-8432-8c6e25b697f8","block_type":"box","text":"and services itself.","page_number":136,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"539dda81-f708-4fac-9ace-fc6f03be596a","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":136,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"5b9c6966-1760-4065-b232-8a5a556ea21d","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":136,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"b5ce60a2-623e-467e-90d7-a0aaecaa7972","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":136,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"eb12f974-5754-4991-9362-cf817d45314a","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":136,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"876f01ab-9451-4d23-ab04-9e4d3908aab9","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":136,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"9388ad28-4988-41d0-8f64-a237b2df5caf","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a portion of the commissions or","page_number":136,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"3bc5a212-b5e8-4512-838c-d75fb15420ea","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":136,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"35164b56-6fdf-4187-b393-1df59c935cc3","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":136,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"186a1184-6812-4e52-8e36-6f245865bc36","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":136,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"c243da5e-8630-421f-943d-18893a513f34","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":136,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"2dc5d67a-c238-40bf-8586-b0692cae008f","block_type":"box","text":"securities transactions for certain types of securities. These ECNs may charge fees for their services, including","page_number":136,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"c745ff97-3f68-44d2-aba4-849e82cedaa8","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":136,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"42dc8985-ef31-4081-9cb9-53df5133cd6d","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":136,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"a55f0b41-130c-4205-9ced-de2d27a062ee","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":136,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"11a0c189-72ab-4d31-8ed3-ccb592f4c1b5","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer volume","page_number":136,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"ba543638-6c02-4469-8b9a-2dd4c9bfaec5","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":136,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"e753b71e-a85e-42e6-966d-ea5813ab9ec6","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":136,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"4da7f6a1-7dae-4d03-a590-3c263ee3d2ec","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":136,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"8e61ca5c-b9a4-468d-939b-95665a723d3e","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third party brokers select MEMX as the","page_number":136,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"c9287d38-1b42-4d12-a3a8-33295d034c3b","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client portfolios.","page_number":136,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"55b808c1-23b2-42f4-9d52-bcef19da003e","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":136,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"d5ae8672-bf08-4a35-8a53-cd8fc96d7310","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":136,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"e75f9b46-688e-4116-8f21-92718af9c36e","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Nevertheless, notwithstanding","page_number":136,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"b23df732-2691-4dd1-8116-6dab2b0fe39f","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":136,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"e19d09d6-9e5c-4b87-ab56-2a9f36489263","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":136,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"708a549b-1ae8-4b7e-8758-d95d06416051","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":136,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"487b705c-636b-409a-819e-91a369f465f3","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":136,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"e8b6c8e0-20c9-4e31-b65e-7886a9f50114","block_type":"box","text":"II-93","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f3ceb2a4-0a2d-473e-9698-2a3405de10c8","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b95603ca-b72d-41cc-83f1-410f286f96a9","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":137,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"e2a18fd7-4ea4-4351-96e7-f0f162554154","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":137,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"91b3f3c1-ad32-418d-9f0e-6e69574c6da6","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":137,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"38c28ca4-9f86-46fa-9b73-331aa93e7c13","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":137,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"ef03e9af-a5f0-417e-b0ba-b675bedfb98b","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":137,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"1fbf6695-1ca0-4052-ae0a-215d4f205f79","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":137,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"dfcce018-f44e-4e86-9b1b-bb58f6976040","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, portfolio diversification and expense ratio. BlackRock seeks to","page_number":137,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"e7016331-52f6-4963-bca7-b5558ae56b23","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":137,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"5a7a64a0-2224-4789-b23e-ded6ace146f0","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":137,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"f5b6e1e8-fdc2-451b-be8f-57f1e785f3ab","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":137,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"3f4845af-bfb2-41d9-8227-55673c7f79e5","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. 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With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":137,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"ae3695d3-671c-4511-94c7-2bf0feb27bd8","block_type":"box","text":"sales of the Funds or other products may be greater than remuneration and profitability relating to services to and","page_number":137,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"7568fdb6-e006-4a77-b620-9ac62b329dd0","block_type":"box","text":"sales of certain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":137,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"fad2d64d-557e-4c5b-b736-19aeac33a563","block_type":"box","text":"directly or indirectly receive a portion of the fees and commissions charged to the Funds or their shareholders.","page_number":137,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"6788180a-e9dc-4d35-a0dc-c1689f4d012c","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":137,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"0080def7-0919-4175-9bba-5109900d850f","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":137,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"d2de9182-0049-49e5-bf83-c4374616588b","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":137,"box":{"x":69,"y":423,"width":801,"height":11}},{"id":"a44f415e-0aee-4a00-a3e1-d213159e32c6","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":137,"box":{"x":70,"y":438,"width":711,"height":11}},{"id":"8904f953-86bf-415c-bb3d-8ec7d064d6b7","block_type":"box","text":"BlackRock may provide valuation assistance to certain clients with respect to certain securities or other","page_number":137,"box":{"x":102,"y":461,"width":741,"height":11}},{"id":"6074070d-eb1d-47c2-b9ec-1a45f1bc76d8","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":137,"box":{"x":70,"y":475,"width":823,"height":12}},{"id":"1a0c123d-2dfd-476d-b669-a301fd518dac","block_type":"box","text":"the same securities or investments assigned by a Fund’s pricing vendors, especially if such valuations are based on","page_number":137,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"ddb40af6-14ab-4572-9369-055748468151","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":137,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"808393ec-828d-4885-9aa4-488fce29eaee","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":137,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"fc8b4e78-dfed-4b1c-b575-867e5c3080f2","block_type":"box","text":"may be instances where the Fund’s pricing vendors or fund accountants assign a different valuation to a security or","page_number":137,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"46aa2c6f-7081-4d71-909b-e1ddb004e0e6","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":137,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"33bb8f9d-1045-41e0-8324-be997ab694b7","block_type":"box","text":"As disclosed in more detail in “Pricing of Shares—Determination of Net Asset Value” in this SAI, when market","page_number":137,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"fa1c2301-2fe1-49b7-b64f-0592c54bb377","block_type":"box","text":"quotations are not readily available or are believed by BlackRock to be unreliable, a Fund’s investments are valued at","page_number":137,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"8b4ed1da-a0b5-427b-832b-7ee467a0c20c","block_type":"box","text":"fair value by BlackRock. BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":137,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"50b25100-e8d5-43a5-8c96-f8397c648388","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":137,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"0a1fbe82-97cd-48e9-8159-a19b2d302a6f","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":137,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"729a0018-a738-4456-9b7c-08fb3a30ee5e","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":137,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"b55c1f56-7ba8-4920-ab65-f42b278bfc57","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":137,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"eb1bb2f7-c23b-4ccf-b3de-03be1289438e","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":137,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"0dd1e89a-5775-4309-8807-10049cf47f5d","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. While fair value determinations","page_number":137,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"14a534ae-bd36-4d4c-8b2c-b9340efe4de3","block_type":"box","text":"will be based upon all available factors that BlackRock deems relevant at the time of the determination, and may be","page_number":137,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"8505f669-a51e-49b5-9ff9-066d509d5888","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third party valuation models, fair value","page_number":137,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"b3ae5162-889c-4734-b189-878636476ca4","block_type":"box","text":"represents only a good faith approximation of the value of an asset or liability. The fair value of one or more assets or","page_number":137,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"20df680c-2cb0-4153-9dbd-c492e7a58ec0","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":137,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"e7ef8338-1d51-4560-a8fe-6c28406d604b","block_type":"box","text":"period in which the particular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":137,"box":{"x":70,"y":770,"width":779,"height":12}},{"id":"00cc3384-9c93-45c4-a1a3-841caf9e9d9e","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":137,"box":{"x":69,"y":785,"width":834,"height":12}},{"id":"45f308c5-a581-454c-8c62-81f81c6d10d2","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":137,"box":{"x":69,"y":801,"width":788,"height":11}},{"id":"47229fcd-2d4b-4d67-9cc9-5c9e3fdfd32a","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":137,"box":{"x":69,"y":816,"width":765,"height":11}},{"id":"219132ab-15fd-426a-8ca5-3cd76e041d8a","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its short term cash investments in","page_number":137,"box":{"x":101,"y":838,"width":784,"height":11}},{"id":"d87bb956-ebe3-4dab-925e-c0dda73006b9","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":137,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"60be0d11-f327-4b28-b16e-37008847e304","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":137,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"c9ed3eac-3970-4fab-b750-6eb79ef90a7b","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":137,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"f15471ca-dc3c-480f-895c-32ade90e51e5","block_type":"box","text":"some additional expenses.","page_number":137,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"09b7aea0-5dc4-4879-b743-c4fb9d786550","block_type":"box","text":"II-94","page_number":137,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f3347e6a-b79f-407c-9801-b4882b87a9f8","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d6901cbd-e2db-412d-a3bb-56cba7fb6629","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":138,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"77e84e0e-cf33-4f9b-9387-fafb9b796e8f","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. As a result of","page_number":138,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"cf18d40e-66ac-433e-9e4b-d40f1ce36fa1","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":138,"box":{"x":69,"y":75,"width":764,"height":11}},{"id":"eb2e4b50-6b96-46bc-840b-075b5dee61c6","block_type":"box","text":"employees of BlackRock that are the same, different from or made at different times than positions taken for the","page_number":138,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"0233c91d-8bb0-4e31-980b-ec23eb7421a9","block_type":"box","text":"Fund. To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":138,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"7cdad350-6993-4233-8056-673798e45818","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":138,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"d3b131a9-1de2-4ccb-b51a-0d208fc174a2","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":138,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"c2e866f7-d45e-4019-b0e7-79429d710d17","block_type":"box","text":"possession of information regarding the Fund’s portfolio transactions. Each Code of Ethics is also available on the","page_number":138,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"e04899e3-14c8-401e-a336-7979bf9b1e6e","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":138,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"d863e114-16b9-495e-b8af-01e5774dffd2","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":138,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"e19953ef-0350-4ea6-a106-87f49ac7d59c","block_type":"box","text":"BlackRock will not purchase securities or other property from, or sell securities or other property to, a Fund,","page_number":138,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"aa522c7b-5610-42c3-8190-55e6439bb8fd","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":138,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"419e8219-57de-4b3d-be09-0a63404940ec","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":138,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"9366e380-b358-4bd5-b72f-164f4c1e9343","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":138,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"e7e575f6-ca8c-4fc9-8714-8e70db5262b6","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":138,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"e81cf292-24ab-4599-a814-b106127c512f","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":138,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"0f34526e-5c72-4fc7-8b4e-bb0670e43978","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":138,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"ac0b3f27-dea0-43bc-9eb9-277e2d8f0117","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":138,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"71280d83-5657-4d00-9186-de2724a40692","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":138,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"b827cca4-7acb-4afc-902e-093063f0d1d5","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":138,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"759b0955-8770-4a47-b5db-03bdbd57494d","block_type":"box","text":"initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":138,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"cf1bdccb-bf9d-44ba-9aa9-2569e8736d64","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is performing advisory or other","page_number":138,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"4d4a9475-0411-4a57-9eaf-29155af4f546","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":138,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"7600ed8c-293d-46fd-954d-74e774fdfe55","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":138,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"1615d80a-7729-42a6-a75f-1d2db8f0705a","block_type":"box","text":"of that company on behalf of a Fund, particularly where such services result in BlackRock obtaining material non","page_number":138,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"9333e393-9f3a-4e8d-91a4-21acb7050bfe","block_type":"box","text":"public information about the company (","page_number":138,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"013bdf31-fc9a-4206-b6a7-0b466ce29aec","block_type":"box","text":"e.g.","page_number":138,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"3840e9c1-0ffc-475d-8d33-3804ba79e331","block_type":"box","text":", in connection with participation in a creditors’ committee). Moreover,","page_number":138,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"5d5e992d-afc3-4a9d-9238-1e3480466aa3","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":138,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"ed944afc-bc26-41da-8881-440098f3cb1e","block_type":"box","text":"BlackRock from effecting certain portfolio transactions or taking other actions in respect of an investment on behalf","page_number":138,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"39367718-9d12-4615-ae44-af2753e06de8","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":138,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"1553f1ed-5738-4a29-a310-0f95f61b9e66","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":138,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"0115081d-3587-4528-b51c-db7f76d9ea68","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":138,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"545445e8-fae8-4653-a052-bddb5b3db5c6","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":138,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"a0337e1c-1f0b-447e-a98d-09f05ddee816","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":138,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"82077642-4717-4737-bd40-965752f88e3a","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":138,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"67bff788-c0d7-44f5-90ba-0f731c8a2f02","block_type":"box","text":"of the issuer.","page_number":138,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"0f00a115-5588-4820-bced-01fa709d64eb","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":138,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"44212210-02fa-4bca-a93c-265b1b40e757","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Certain","page_number":138,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"6bbe46bc-fa24-464f-a1af-cb39daa050da","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":138,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"1a96249b-416e-4330-b93d-e294642420e7","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Certain portfolio management teams within BlackRock may","page_number":138,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"6b8e2ab1-ec78-47c0-a66a-a1e0d7ca20a9","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":138,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"c4d0cfcc-fa90-496c-b5c1-ba0ec70fee17","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ portfolio management teams. The","page_number":138,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"4153e934-1198-4de0-bc92-941749fbe926","block_type":"box","text":"various portfolio management teams may not share information with each other, including as a result of certain","page_number":138,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"0b1b6083-2a7f-46cf-966f-701956aec622","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":138,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"6b5f00f3-b119-4844-b18c-56a4274aa1e8","block_type":"box","text":"BlackRock has established certain information barriers and other policies to address the sharing of information","page_number":138,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"7982cdd6-a100-47bd-af57-2e1f20d6673c","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":138,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"0cf18d49-ad94-48fb-af8d-bff93bd49df5","block_type":"box","text":"portfolios and voting proxies with respect to certain index equity portfolios versus those responsible for managing","page_number":138,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"07a3caab-d55c-4c79-b6f1-9defc1f4973b","block_type":"box","text":"portfolios and voting proxies with respect to all other portfolios. As a result of information barriers, certain units of","page_number":138,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"29b446bf-96e6-4cae-90dc-09874c937a32","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to certain information and personnel, including","page_number":138,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"b7e5704e-f486-4f10-991f-ddddde98869e","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":138,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"cfc0b291-8f82-4351-8cbd-0a3d52077af0","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":138,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"875856b9-2abf-45ce-91e1-1ac2f6999a66","block_type":"box","text":"with the benefit of information held by certain areas of BlackRock.","page_number":138,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"b419f41c-c1a1-4bcf-9454-a21261470dad","block_type":"box","text":"BlackRock may determine to move certain personnel, businesses, or business units from one side of an","page_number":138,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"f71eca3f-f62c-42fe-9fa7-13375e066555","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":138,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"1e0302f2-b0e9-4fe5-85bb-107289079433","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":138,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"cc7fe71d-4352-44cd-a17c-3400877294e0","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":138,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"ac4638b2-9da2-439c-8714-f99313196bbd","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":138,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"504bc6d1-4845-44bd-939f-618b661b34d6","block_type":"box","text":"II-95","page_number":138,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"10728165-d601-4fc0-8959-e857bc57ba92","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3141193f-fa9a-4936-854d-7dd38458af37","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":139,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"29bd1591-8663-49e0-b6a3-28395b7622ab","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":139,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"60031d70-6e49-4277-9abd-82de49cbb38e","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadvertent crossings of the barriers,","page_number":139,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"fef2b4e0-a2c3-459d-8fe0-0a3b90361a33","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":139,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"20dc6606-2a69-4591-968c-dea288761cd5","block_type":"box","text":"a barrier.","page_number":139,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"748e053b-7f8f-4964-b221-4106455b1422","block_type":"box","text":"Although the information barriers are intended to allow for independent portfolio management decision-making","page_number":139,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"009f1901-8121-40a0-86ee-907550d27d9d","block_type":"box","text":"and proxy voting among certain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":139,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"f9add55a-c6d8-457b-9453-1448203dd009","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":139,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"44fababe-0409-4af0-9b2c-18c3eb966647","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":139,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"f2afd8b6-e7e6-4ebc-8b2f-be78bd977cb3","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":139,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"afbd8213-0e22-4fe5-899e-6079b46c31d1","block_type":"box","text":"issuers. For example, in certain circumstances where a BlackRock client invests in securities issued by companies","page_number":139,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"6a731144-531f-4844-9de7-42053f9f65e3","block_type":"box","text":"that operate in certain industries (","page_number":139,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"89983de5-a07b-4bcf-8ba5-0d08de8f3528","block_type":"box","text":"e.g.","page_number":139,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"39bf1cbe-dbd5-40f5-94a4-0d7afbe535b9","block_type":"box","text":", banking, insurance, and utilities) or in certain emerging or international","page_number":139,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"4a635f38-e1ff-445b-973b-4ed5077b6da8","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":139,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"2b2c5279-9359-408e-936b-32553326a835","block_type":"box","text":"e.g.","page_number":139,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"40742de1-8a8d-4a10-aa7e-5d82ad391bad","block_type":"box","text":", with mechanisms such as poison pills","page_number":139,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"6de0c391-41d8-4297-906e-ce4c1867f850","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in certain futures and derivatives, there may be","page_number":139,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"3154407a-a6b2-4bce-a082-55c56e62f337","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":139,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"76f7631e-9a46-4724-ab86-901d1f99e332","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":139,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"f21f51e5-73a3-4784-8911-f832ed58eb08","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":139,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"b088140f-d6e0-4a23-befd-b6f2d7d5855a","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance reporting, increased","page_number":139,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"a7ad9443-48f0-4896-9ffd-d711c2e93e7a","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of certain restrictions, BlackRock may also","page_number":139,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"5fc4b82a-2aea-4d6d-b39d-c77e67930221","block_type":"box","text":"seek to make indirect investments (","page_number":139,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"5e5078a2-1962-4183-b553-a44ac79f3216","block_type":"box","text":"e.g.","page_number":139,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"2035f844-40a8-4d77-b465-85d4054dcff0","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to certain","page_number":139,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"583dc32f-4bae-4059-8a74-abdacfe9ff9d","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":139,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"fcae3a2a-e1b6-44b7-9b5a-cfac1f48de44","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":139,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"cb169254-40a3-4680-9e66-ae98d417724e","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":139,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"1959a1d8-6569-44ed-abcf-b5c44b57255e","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":139,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"a703fd3a-62bb-4268-9f5a-8fd1c8ea261b","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Certain clients or shareholders may have their","page_number":139,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"3a6b31ef-9a68-4d29-815a-65959565e32d","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":139,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"b68a7ebe-42d3-471d-995f-d21be2a81e8f","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":139,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"0a704a34-a4fe-4b81-b6bb-e8ee15d47751","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":139,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"209eaf66-4837-483d-b06c-ccd94e2ec0e8","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or undertake business transactions, may be restricted by","page_number":139,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"b8cc6298-2119-459b-8278-e1eda9f9d435","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":139,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"23f4bf38-2295-4f85-a3b9-837c9430794a","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":139,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"2bf0a633-09e4-492e-a6ec-e0870fc3980f","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":139,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"2cb00e13-976f-4a99-aac6-929958f2b3c6","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":139,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"dca83f7d-7ef5-42e5-8895-d3276ecfce42","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":139,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"2e9620f1-e515-4ea5-8f4e-fd5b1baaea2a","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":139,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"6e0ccef4-2c0b-4467-9f0d-4a6f5f46abf9","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":139,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"2ba6e9a6-5938-4989-aa9e-3549bcca39aa","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":139,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"2dd59d27-5039-4438-b57a-c940e919ecc0","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":139,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"845ddb1c-77ed-44e1-a7cb-e4038644c6f6","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":139,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"0fd3099c-cb8f-4500-9dfd-2c3619c7222a","block_type":"box","text":"restrictions could negatively impact a client’s performance or ability to meet its investment objective.","page_number":139,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"6bd69010-af39-42f9-8717-4762c9ffe853","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":139,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"b39f81da-2b43-4bd6-b894-7040ef8801c6","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":139,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"5caf08fe-35e5-47ed-a888-5dd7d79097e6","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":139,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"67a30649-4b36-46d7-ae5f-c52d31104ab4","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":139,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"bb2cc1ba-3fc8-421c-b6d9-506a25d7252e","block_type":"box","text":"from taking certain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":139,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"a0194565-9709-4734-93fe-5cf83901ecad","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":139,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"79f1cabc-8b7c-4454-a270-524c9e40445b","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":139,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"0a1cf7e1-7984-496c-ad0d-ef58008ce1dd","block_type":"box","text":"BlackRock seeks to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":139,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"09b8491a-70f4-4310-be23-5e1f1dd54c68","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent the","page_number":139,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"aabe3958-2b79-46ff-96d5-69ca088d9734","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":139,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"bd06c8b8-1a83-407d-8a93-451656bc5cc6","block_type":"box","text":"certain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":139,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"0aa588bb-cdeb-4407-98c8-39ca4968a494","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":139,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"40cd1713-db8f-4a5d-bdc5-64da02bd5d5b","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":139,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"1eb7e8ae-f5af-41b8-9399-f227024a1f8d","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":139,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"9b1b4fe1-9e12-4ad5-85ed-cbba436800f5","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":139,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"ae0bb4e2-9ee0-433f-9b81-72230815fffa","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":139,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"f78badd4-ef4b-41d3-a3a5-73c49c78c8a9","block_type":"box","text":"II-96","page_number":139,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b02fe2f0-9af3-4699-920b-1e5c15e03b01","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"56f53f51-a430-4182-b82f-44e1800e427d","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":140,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"423dc839-acae-4987-bc0b-3377c7a597d7","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadvertently breach a limit or violate the corporate or","page_number":140,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"9e5e4cf1-40b4-4fe1-83ed-f29d82082ced","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":140,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"a0d076c4-4708-4e2c-8dce-da7b43538506","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger reporting requirements to governmental and","page_number":140,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"84cd9720-253c-4c27-a339-5b6e8cd425a2","block_type":"box","text":"regulatory authorities, and such reports may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":140,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"e471f3d3-69a7-4c23-8a01-e7806b9ee6ab","block_type":"box","text":"strategy with respect to such security or asset.","page_number":140,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"a3a550ee-c5a2-4522-b21e-478817964496","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":140,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"8d993363-252d-407b-b73e-f2b2f3da21ca","block_type":"box","text":"license and use such indices as part of their investment strategy. Index based funds that seek to track the","page_number":140,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"77b2d052-7efa-4d71-be18-a58a7c6e92fa","block_type":"box","text":"performance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":140,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"fcc0cf17-2d5c-4d1a-9710-349a3ae75298","block_type":"box","text":"providers, including BlackRock (to the extent permitted by applicable law), may be paid licensing fees for use of their","page_number":140,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"cdb5b0a7-df3c-4a20-8b99-3ec65c89528d","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":140,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"365e37bc-a81b-4662-862a-1cc720384d9a","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third party index. BlackRock may","page_number":140,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"13f3a198-c19f-40a8-b903-c58bdf29cc9a","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":140,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"5f992cc9-aefe-4049-a0c8-0c8abc221d76","block_type":"box","text":"indices. BlackRock is not obligated to license its indices to a Fund and the Funds are under no obligation to use","page_number":140,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"2e7cd56f-f1a9-445b-b6a1-d470b26b5f8a","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":140,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"1d89ea89-5763-4cc2-9c14-9ad2d6be551f","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":140,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"7b7105d9-d9a8-44a4-8e19-f73a94d167d7","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-party service providers to a Fund (","page_number":140,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"fa1f8c62-be77-4cfb-83f4-77222e318d2e","block_type":"box","text":"e.g.","page_number":140,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"14a2b67b-37a9-4aba-96b1-180c729989d3","block_type":"box","text":", custodians,","page_number":140,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"549f1329-77c1-4372-8c91-0f1092e88988","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":140,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"02e3bdb5-84f2-4b39-bbb8-9c2d0d05bded","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":140,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"3fe0f9aa-67fa-4acb-b3ab-e20cca19ece8","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":140,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"54033b8f-32c1-4bbd-8cec-60ba2d1ef583","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":140,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"3572aca4-0866-4ace-b600-62592a2d906a","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":140,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"f1390f7e-ee5d-4a02-bea1-8c637d34ef57","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in part, to BlackRock, which could result","page_number":140,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"2a651f4d-a0cb-4eb3-a412-c8376e706c72","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":140,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"ac7e71e0-cbd9-40e0-9ef0-547229a5b7d1","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-party service providers to a Fund, or the","page_number":140,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"566eaaf7-1851-4018-9a7c-7132fafc985a","block_type":"box","text":"selection of such providers, particularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":140,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"bc6020f5-cbc8-4dd7-8ded-1d8f7e39de9d","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":140,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"ef5ab403-9499-4f2b-ad6f-92cf72e5ed79","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":140,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"6a5bcd88-3245-4a06-8ca3-e4bea77158b3","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":140,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"102565e5-b837-40a1-a94d-9f3900ffbcfb","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":140,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"ee9c3a5c-bc88-4347-bf86-7900baefc76a","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":140,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"d9923a8f-e21a-463b-b591-8430cc0828c7","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/or","page_number":140,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"3de4f242-8a06-432d-a71e-37a881be7228","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":140,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"14fed9cb-5293-48a4-80b5-47e4705c590c","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":140,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"2fc5d95d-f062-4569-9aa3-bd16967e5b8e","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":140,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"49f4f835-912b-4da7-8d49-f9e1350c62ad","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":140,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"e2e842b7-f0fe-4a4e-abc1-5c459969cd40","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":140,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"491a3aa5-5722-4dea-be1d-010b2d6f9c0f","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":140,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"f6c58886-0a12-4592-9b9f-f7adf371ba71","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":140,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"5a0b0a88-264a-4c0f-ab00-bba0c427fef8","block_type":"box","text":"provider.","page_number":140,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"6d716f17-4363-4243-a634-1c740a118626","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":140,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"c8fa7524-a95a-4a69-b97c-650e02c3553e","block_type":"box","text":"arrangements for certain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":140,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"e26e1e79-b972-4c79-be5d-13ac092592d5","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":140,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"88212c31-eacf-4d63-8abb-b0d0ed0a7688","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":140,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"93748d9f-d039-4e9c-81fa-f64fc9613218","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":140,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"1ee8ad43-3883-4eaa-be37-40134a9858c5","block_type":"box","text":"PURCHASE OF SHARES","page_number":140,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"52c97963-6bcb-4843-af24-3740a0d72bba","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":140,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"f6aed9c2-1fac-4761-9cac-63206dccd7ae","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":140,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"841410d1-bea5-4a7b-b2c8-567290658576","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Short Obligations Fund are","page_number":140,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"98ab97a0-96f5-41c1-8762-a1059fca5e8b","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":140,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"ceaa8c67-4cb1-413e-a396-3e999fa54a10","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to certain investors purchasing shares of Funds","page_number":140,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"7bd3cb3d-3fbf-4aff-904a-48b5331b5ab0","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":140,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"a616f834-96cb-458e-94ec-382e0240e7f9","block_type":"box","text":"II-97","page_number":140,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dde8cd7b-9fc5-4eab-a57d-4b86a6958653","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3aa50df9-015e-4587-8c09-8f263b39ebdb","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":141,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"6dfda085-c491-41e8-af0a-8131125fc38e","block_type":"box","text":"Certain Funds offer Class R Shares, which are available only to certain employer-sponsored retirement plans and are","page_number":141,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"1d180b1f-eefa-4e65-b895-3ab5dc0f45e6","block_type":"box","text":"sold without a sales charge. Certain Funds offer Class G Shares, which are available only to investors on eligible","page_number":141,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"1f5a7bab-ae66-4df3-9493-3eba5bbf4ab5","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":141,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"2cdbd001-f54a-4432-b2df-2dad19a8d62d","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, certain Funds offer Service","page_number":141,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"a5dfeca3-43c6-4c39-9a77-1e082d87d62c","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to certain eligible investors. Please see the","page_number":141,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"7f1e4397-e201-42f8-8f36-d2a559f9fb3d","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":141,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"666b05e4-75ee-4c6a-82db-58a57fef0d5e","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":141,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"a7e8a25e-f959-4b04-9647-5de16bd15ee3","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":141,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"98f461eb-8aa4-43a4-932d-cba8d20fd674","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":141,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"ec9cbbd2-dd50-4bb5-95de-0c15b1ed8805","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":141,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"ea6594bb-134f-4cb0-bb14-8c0a9b43c014","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":141,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"3c04d82b-e70e-4561-a4ac-d4dff95d5f99","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":141,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"c37ce7fc-76f0-4475-bfce-aba4af186cf5","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":141,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"fd57dc47-53ef-4b11-a6ee-41cf34cfe247","block_type":"box","text":"Target Date Funds that allocate a portion of such purchase order to such affiliated underlying fund. As to purchase","page_number":141,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"a313dff7-3aca-4987-bf37-770e840f8fdc","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":141,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"e1d5a5aa-6206-4b6a-88b7-441e681f4ba9","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":141,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"53261df4-bf9b-4fb3-a1d4-659bc3875a13","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":141,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"41e6df54-39d8-4afa-8842-a9adfd7da3ab","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":141,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"f92f2b03-368b-4b76-a7b4-cbfcc33c0bf6","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":141,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"848822ce-aec1-4efa-b849-e4cde1595f34","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":141,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"831fb248-0c2b-4586-bd73-daef09807648","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":141,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"088c5bc6-da7f-4a2b-bf64-b0c0821f8b82","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":141,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"ad538dc6-e2c2-4473-92b6-561ae47897d9","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":141,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"12fe7e96-c3af-49b2-a028-e49229427d34","block_type":"box","text":"The minimum investment for the initial purchase of shares is set forth in the Prospectus for each Fund. The","page_number":141,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"a77580c4-94b0-4504-b204-1116c9c832d4","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":141,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"8f71a91a-98af-417b-b8e5-b12cabb08fc7","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":141,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"7ad0b750-a779-421f-9906-a07d0bc6e832","block_type":"box","text":"investment is $25.","page_number":141,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"c31631e0-4001-4700-a4af-c410cb8862ee","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":141,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"83eea172-f62f-4c4d-929f-c46d941ce3ce","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for certain investors","page_number":141,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"4f1cc12a-efa9-49ff-bb4f-05b39126def7","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":141,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"09531a02-48fa-42fe-9845-fd920eac5ebf","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":141,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"237634dc-2e3c-4047-b9a7-fc6b41c16aae","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":141,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"50eef34b-37a6-4c4b-aaab-b5a23b33598c","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":141,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"ac810b3f-d74b-4934-b98e-1112d9075cf6","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":141,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"f9ceaeed-3ab9-49ca-89cf-7a330a4c4e5a","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":141,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"4d75de3e-270e-4bf2-b42b-b5ce2618019c","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":141,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"2058f512-5a35-4fbd-838f-3669b4cd025f","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":141,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"63ec6f28-4331-494a-a7d3-6fdf605d3079","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":141,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"b702f6fd-3a1c-41f9-9f64-47f5ea0b4ef1","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":141,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"ee929692-a309-4ecb-b758-3cf1ddec5ded","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":141,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"d1772d00-22f6-4c79-9add-dc43d3f6f163","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":141,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"ca46564f-c2ec-4713-b305-8750ce26b2cd","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":141,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"da141738-be7f-4311-a359-71d0917b320a","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":141,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"5216c236-21f9-403a-a039-27bae9f3735e","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":141,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"05c91043-0b11-4497-99f1-a4ee3a4ee5ab","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":141,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"10ac23d1-e7a2-4b05-893b-b6f803b3ff0b","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":141,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"e3e78f61-1314-421a-8f5c-b773066ef0f8","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":141,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"36f4f96a-d4b0-4abe-8aa7-55c75aeaa990","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":141,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"96cd9aa5-869b-4162-9224-2e2990da7a8c","block_type":"box","text":"group of individuals whose sole organizational nexus is that its participants are credit cardholders of a company,","page_number":141,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"60aecc74-585d-4d11-8a98-e52fae97f7c9","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":141,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"0c5ae464-8809-4627-85a3-759e18a76da9","block_type":"box","text":"adviser.","page_number":141,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"8b6b4b18-14a0-4739-934f-8e688b1b97cf","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":141,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"ad68a6c1-dadb-4444-840a-6b10b67251be","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":141,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"691d255b-5e41-4001-be96-bd0a2c486f27","block_type":"box","text":"II-98","page_number":141,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f9505743-aaf8-47ef-8ea9-a512f8029906","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"16937dc6-021a-41f9-a520-e4c14715a14a","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":142,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"8fc651f4-3dd8-4ca2-8f8c-dce6fa76e104","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":142,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"548e3e3e-c531-48a7-a4cb-21d7b7d09f54","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":142,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"5fbdb62e-5657-4fdf-a9a2-fa232fce4b4a","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":142,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"2ee544b0-9cd2-4d38-ba04-48d8b19b6084","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":142,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"874d3c12-eaa4-4951-b240-ccc46d7afc2e","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":142,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"5e04c4ac-3476-4241-b0c4-feb1390f7195","block_type":"box","text":"also be restricted from making additional investments.","page_number":142,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"d2ec9db5-3625-4937-bf9d-8871bf6ae7d1","block_type":"box","text":"In-Kind Purchases","page_number":142,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"dd3283fe-db7a-462a-8baa-66220befefe5","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":142,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"45bf5b02-0708-46bf-a1eb-4c194d5300cb","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":142,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"ae59e4e0-3d26-47e0-b327-74cff8ea96b4","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":142,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"ffc2a25a-4d02-4eea-ab71-9c731ccb8309","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":142,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"fe2c5aac-02d6-4adb-9048-c832f0961ef0","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":142,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"3f865b60-823c-4096-aa99-9ce764f836c2","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":142,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"725bc37e-1527-4759-a31f-698522214c77","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":142,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"39703fa3-db0c-4f52-9535-a16f5e95d6f5","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become the property","page_number":142,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"1a7ce717-6fdd-4f1e-8949-9bff9251a568","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":142,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"b6eb4d70-8b66-45b6-b523-ff0921265c6b","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":142,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"000939b4-6b41-4b7e-836d-5e024b6aecfb","block_type":"box","text":"has settled.","page_number":142,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"e8eb454b-fab0-4dbb-a316-e7528d71d85c","block_type":"box","text":"Institutional Shares","page_number":142,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"20a5848a-9350-41be-9b20-9f3176bb6f46","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are eligible to","page_number":142,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"58a04778-8cdb-4da6-8aa8-7324d4d98f0d","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":142,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"a2f4b4dc-f82a-4928-8941-e52159cc71ed","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":142,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"952424a8-ebfa-43ad-90b2-c3bd8462dc24","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":142,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"8717856e-fa3b-4c5e-b836-830b4b005062","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":142,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"d9a926ad-65bb-4a5f-801e-5b1f9f0c71ae","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":142,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"d2286ea0-a78a-4af0-89a8-329ba154759b","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":142,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"e0f2231a-3d6a-42eb-99f0-e5f0be28680b","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":142,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"37856da4-4806-431b-a414-5a91ebffabba","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":142,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"95cc163f-6cf6-4963-bb68-745b74a5ccca","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":142,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"cf27723a-b5fe-4190-9410-75abdd52ee2d","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":142,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"c5a0d80f-b958-4cdd-862c-1a1fb4b5c6f4","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":142,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"bc73b8b7-4d31-47e9-9e4c-c3437b1d2f1a","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":142,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"98db5150-a017-4294-9163-dacb571c9d7c","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":142,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"cf530d7f-0968-41a7-8a51-41a88978ba1a","block_type":"box","text":"these fees and conditions.","page_number":142,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"fa024553-8368-46b9-9cd2-f3eab6f5f954","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":142,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"20407e45-f7ed-4f0a-8298-243ff1a1bea8","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":142,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"5ed4f982-0197-47f3-96e8-04962ea3bdd7","block_type":"box","text":"certain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":142,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"7ce8280d-69da-4247-8a17-4179543720dd","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":142,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"894ea253-e1b9-4ae6-8946-ea1c899ad35a","block_type":"box","text":"incurred by the Fund.","page_number":142,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"c3cd2abd-372c-4c89-b17f-a1b200c42e0e","block_type":"box","text":"Certain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":142,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"3403f1e6-90a1-4c16-941b-f0b0fcc8b486","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":142,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"2b246ac7-ce71-4f61-ae00-1fa046230717","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":142,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"67621d53-99bb-426c-bdef-7f7f2816642f","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":142,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"a8f99b41-8e88-4b37-bdef-d6d2ebbd3957","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":142,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"4c415eea-3368-4390-b291-eb913fe460a7","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":142,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"cefe4595-ac88-4b2c-86d9-9c48ba5e2f54","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":142,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"1f26c53d-86b0-402d-9970-5d8fd8ec6aca","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":142,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"b14d711a-faa6-42c9-bdec-9ed1a3c537f1","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":142,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"59f9899b-ba1f-4407-92fb-7487b20a7784","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":142,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"8c3cf0f6-0d45-4cf9-b1b9-1bcf94281c09","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":142,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"e849bc57-60ec-4e86-b40c-0e6d38813a44","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":142,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"0c2eb8de-526d-487c-b05a-b9fc3de38206","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":142,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"3a2ab94c-6b29-4c29-ad15-92c98fbd74b7","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":142,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"b0bf7a13-2c8f-4c1b-b918-6307e6123493","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":142,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"d3a2ecf9-21b2-45b1-aba9-5278fa56b895","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":142,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"1ddd8be6-2346-4356-bd18-a094abbbb153","block_type":"box","text":"II-99","page_number":142,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"86bf195b-0d4c-4b9f-aeea-e530ac5cb76c","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3bd48c52-a22d-44b7-af12-3268f8440538","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":143,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"6bb11a7d-edc7-4912-8716-803ea1875fec","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":143,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"ca2ccd13-ec1a-4407-af02-387a75a5b114","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":143,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"5cab353f-e075-4ea0-87a1-a117a2a2987c","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":143,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"d5808c6e-83d4-4add-8f96-21f1ff3947dc","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":143,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"9163d5a3-43a2-4f3a-942d-1cb3d3115692","block_type":"box","text":"minimum initial investment of $1,000; trust department clients of Bank of America, N.A. and its affiliates for whom","page_number":143,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"98a1b520-a0f5-4af9-86af-4b442a2eb0ca","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise have","page_number":143,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"d8a34ef4-482e-4579-bfd5-5322de95f331","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of certain BofA Corp.","page_number":143,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"ad764214-b9aa-47e0-936e-54d81bc812f4","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":143,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"b529e4da-cb75-4054-90b1-f16f23be2d70","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":143,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"cd61a335-1f7a-4739-b268-ff533285eaf8","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":143,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"ddae4464-9338-494a-a1ad-9d3af3bb65d0","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":143,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"20d119a6-800a-41f1-835f-9eccdc51e30a","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":143,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"d20abe3b-680e-4d63-bb38-8fbc389af5ae","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by virtue of the familiarity of these persons","page_number":143,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"c9f23ec1-6797-41b4-a131-3c703eff8387","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":143,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"19992c70-8270-4299-9586-f7bcd5128922","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":143,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"7e436def-4d0e-4e32-8782-571aed5ed9af","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":143,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"e00ae746-dd44-478d-818c-0d48a8832d94","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":143,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"081d37b3-1f92-4ce4-958e-fb3e941df95f","block_type":"box","text":"Shares are offered only (i) for purchase by certain employer-sponsored retirement plans and fee-based programs that","page_number":143,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"1f5a2641-593f-4d86-893b-7d5ca28a2ec5","block_type":"box","text":"have been previously approved by certain Funds, and (ii) to certain investors who currently hold Investor A1 Shares","page_number":143,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"4a1f3746-5d76-4fc8-8848-cef02a511aab","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":143,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"ffbca57c-21a9-46d7-ae78-7e8a6abc38f7","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":143,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"2ec846d9-cd85-4045-8546-6ae5aac919fd","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":143,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"5bcbc87c-77da-49dd-a456-bc95dde0b8ae","block_type":"box","text":"BlackRock Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":143,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"03c1046e-5b08-40cf-9026-810410827e16","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":143,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"d211997c-4c5c-4fac-9094-c320f4492662","block_type":"box","text":"particularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":143,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"b28e1f49-14c8-4a9f-b06e-762b868ebd58","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":143,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"2599ab6b-eee3-49d5-98a5-d0428c9399c2","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":143,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"1113bd83-f8fa-4936-8bbe-390f10efb705","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":143,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"5cb4066b-faf6-414b-9c55-337dce3b6856","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":143,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"14512481-e1bf-4ccd-b097-f8713bca10a0","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":143,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"3fa18588-0769-486c-9256-4ddd09835e3d","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":143,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"87cb3ccf-06ab-4264-a326-069aa40911be","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":143,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"4ae65c60-d00a-4412-9635-fbf6aad786f6","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":143,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"fafd6a9a-abf5-4661-89b8-489f4743b996","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":143,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"a75fa24f-a81a-41eb-8c18-c15dcde87268","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":143,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"0a27f75c-0ac1-4eb3-8106-b3e9bf93c2a2","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":143,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"348877f2-d497-4077-b979-7d3cae8bb7ac","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":143,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"3c09638f-c4b2-44b8-8441-2e9a040c8f3c","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":143,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"6e9cfce7-a21e-4173-a32e-947f6d1ccd16","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":143,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"7fce4db2-2a93-4063-b39e-946675dd091b","block_type":"box","text":"periods indicated.","page_number":143,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"ab6d76c9-535d-4cd2-b18a-94a6aafd188a","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":143,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"fe7f97cb-4e3c-4b2d-ac7e-ea90c5ab68d1","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":143,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"02a366a9-65f0-49bf-b973-dc79c6fb6d96","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":143,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"a16e564a-18df-4c70-b30d-e2d182041214","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":143,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"f20b9b6e-0c33-460c-bf22-a579c7f1bbaf","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":143,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"5918fc1c-a2e8-45e5-be84-4eea6d290a2f","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":143,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"a1b44692-8e8f-4031-9cb4-9f2db988cee6","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":143,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"8524b0c8-1b67-4df2-8e91-9f34cef7c3a2","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":143,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"2df4afec-377f-4860-b244-abe75ce96a3b","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":143,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"9af6b171-16f1-4794-bcb4-1e36e45f427e","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":143,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"98c7220e-956e-455a-807d-8595ae4777d7","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":143,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"1c3230ad-fd70-443d-92e8-6b4dde764dbc","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":143,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"f71c5665-ca9a-4458-8f95-c33f6e24d787","block_type":"box","text":"II-100","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6f6c6b1e-dae8-4adf-beef-905864a75b74","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"80cbf2f8-cfbc-4720-9565-550a4023b821","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":144,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"bcda1173-1a3a-419e-b860-71608697c931","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":144,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"e0a070e9-882b-48b0-8b87-b7a8ab2fc685","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":144,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"e05b7da4-a0f9-4846-9336-ba221f4ba738","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":144,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"a36837cf-2245-4db2-b089-8c788edf1087","block_type":"box","text":"Reduced Initial Sales Charges","page_number":144,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"03571024-5e41-4a46-9d06-232cb07c122d","block_type":"box","text":"Certain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":144,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"a6f44201-50b7-4146-8562-39d0c5bb5448","block_type":"box","text":"and/or the reduced sales efforts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":144,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"ef51dba2-5bef-4c66-afbf-71dff34a3431","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":144,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"a50bf334-ca87-4a16-8a67-99779a9bc144","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":144,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"db76cf72-a5fc-473d-9a18-a6549d903c36","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":144,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"6800b758-1aa9-4e5d-b561-d75da211d8df","block_type":"box","text":"requirements of the new share class. Certain sales load reductions and waivers may be available to customers of","page_number":144,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"4f96010a-bcdc-433f-8335-ae4f14907fb9","block_type":"box","text":"certain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":144,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"1f4cadfc-7834-420e-8c77-321eca96292e","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":144,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"32e91637-efcd-49f5-a7e5-771526fb9f27","block_type":"box","text":"Reinvested Dividends.","page_number":144,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"9548d9c1-b1d1-44fc-af59-8f14eb333ff9","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":144,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"90f64291-9e0e-4145-83b9-f25b247d6cc1","block_type":"box","text":"reinvestment of dividends.","page_number":144,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"8f2deb87-49d1-493b-b470-abe5fdbd6d1c","block_type":"box","text":"Right of Accumulation.","page_number":144,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"47b66874-9412-4b44-be33-79c18e743de8","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":144,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"a0ce36cc-a69a-4b05-82d0-e215749d923c","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":144,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"f3020de8-3113-4cad-a51a-9c394817cddf","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":144,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"d1777b7b-371d-4b4e-831d-1d88323a5433","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":144,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"3265a0fa-07cb-4a48-a8f8-a8feb458a86a","block_type":"box","text":"existing shares of certain unlisted closed-end management investment companies sponsored and advised by","page_number":144,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"61125ed1-b940-46d9-b0ce-0ce997388bd1","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":144,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"28de3245-8121-42aa-814f-36e60311979f","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":144,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"396df113-4b0c-4245-8ddc-ea41b0a43570","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":144,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"4a440cb2-6c0a-433b-b789-b1dcfdd94a3f","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":144,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"6b0dcae8-73d2-49c7-b2a9-d970cb9e67a7","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must alert BlackRock to the existence of","page_number":144,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"f6bf5e62-3011-4536-a890-0676c745e388","block_type":"box","text":"any previously purchased shares. Certain funds employ a “passive” management approach and attempt to match the","page_number":144,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"f0352417-26a4-4dfb-b52e-844925f9c780","block_type":"box","text":"performance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":144,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"1f87e8f9-5857-4021-a399-34a0318a227e","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Short Obligations Fund generally are not subject to a sales","page_number":144,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"c2ef2f5b-e6ee-45bc-acda-e903baaf03b0","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":144,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"e0715b52-0a07-4678-af8a-92557eded5d2","block_type":"box","text":"in the Index Funds and BlackRock Short Obligations Fund may be combined with the amount of an investor’s current","page_number":144,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"e31da931-4321-4908-bf11-c8919032af0e","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":144,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"ce060edb-464a-4df7-b359-3c5f5ee501d3","block_type":"box","text":"Letter of Intent.","page_number":144,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"d1bcf8a8-68b2-45c7-8227-25faecaada0b","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":144,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"d04a52b5-5ecd-4f81-8168-571758ae51a3","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":144,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"3d1c6862-0ae4-4e82-8a3f-ec944c75c8ae","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":144,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"f0afe1a4-8673-4ac8-a196-35360a5e00a2","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":144,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"e5bfa0ec-ccc9-42b8-826c-292e99b2914e","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":144,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"7040ad8a-fab5-4316-a957-045e93530676","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":144,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"1fa9a3d3-c6db-4530-a8a0-76d76f32590c","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":144,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"59f82598-90c2-4ccf-9902-d5671c35e462","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":144,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"07be4014-8865-490e-ac76-f02dbf290a33","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":144,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"ea4116d7-6cc8-4a2e-9e96-fc66517330b6","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":144,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"7a61cf07-ceae-42ae-b846-1d01e64c14df","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":144,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"a28afebb-4316-491a-9a54-a60cc539d715","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":144,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"7ff33819-a609-4ee7-a64a-86d9dbdc33c7","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":144,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"406fa35c-56a9-490c-8f6c-8f14afdaa133","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":144,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"cd65938a-d57d-406a-aee1-c13a19d4e00d","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":144,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"1ab15994-7948-407d-86b1-2c8376fe69f9","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":144,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"937150ed-e595-477a-afee-5b0d21a1d647","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":144,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"7e754f9e-cf2b-4f26-aea0-f1946a8ed7da","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":144,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"9a633903-d1e7-4dca-af9a-a973ad8b63d1","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":144,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"c12d0c9b-c2ba-4e83-b966-62f7f93fad56","block_type":"box","text":"Placement Fees.","page_number":144,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"43a2865d-a7ba-4206-ae85-f6c8a8db02e2","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":144,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"eaf40f86-9565-452d-85a2-861504ffa139","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":144,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"5473b02f-cff1-4da0-a4a9-40f45b52b45c","block_type":"box","text":"II-101","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"86361093-b435-459a-9e93-34b81586f22a","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c082419b-ad65-4794-bcdc-fba44d0544af","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":145,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"c866ff73-bc33-4158-8271-4209ead53abd","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"91ee7aa2-057a-40f4-b9ef-f5acb5425afe","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":145,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"5666d7ed-9252-4583-96b4-c189c3dbddc8","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"4af649d2-1030-42e3-b09a-9f7c01cdde55","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"03a06eaa-3a00-4aab-9b0e-54dad97232ec","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"c4d51482-c772-4b43-96a9-4ce05430f2ee","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"7400db7a-d7d6-4591-823e-df5b056132a7","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":145,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"d6de4843-1dfe-4205-aaaa-5aa27983e244","block_type":"box","text":"Portfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares","page_number":145,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"5eff4f71-fb90-43ce-a5c3-257fd02655f6","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":145,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"84409c2f-558e-48b1-ae57-273a7284ed8c","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":145,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"5d853104-e3c4-418e-8f3f-dc8ba3dd5504","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"481bdda6-9fec-4787-a441-e2887ba6628c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":145,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"65aa2ff1-753f-49a0-8760-dd156d5ae9c1","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"cdb6d6b4-7074-44ca-92fa-6202f3f46a94","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"991ea614-9929-4cfe-8666-ba78775548ed","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"1cb933e9-94e2-44a2-9a8a-042dfd9e8034","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"a8a9557c-6622-4d71-bb8d-07967932cdb7","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":145,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"65257d40-7c9d-4cce-aeda-2d75690e6b1d","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Opportunities Fund of BlackRock Funds","page_number":145,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"de2b7473-508c-43f7-8cfb-90b74f288994","block_type":"box","text":"SM","page_number":145,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"0b1e3518-eb22-41bc-9bca-d48fde5b79cd","block_type":"box","text":",","page_number":145,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"12cea5b3-6c12-4094-8688-3f1f9ac276e8","block_type":"box","text":"BlackRock High Yield Portfolio, BlackRock Core Bond Portfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":145,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"b7e9e144-66a6-4b46-8a03-aa784a598bc3","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":145,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"7e6a8108-f335-41bc-a7f5-aaa2e85296bc","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":145,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"40593ef4-122b-4559-aa04-197abce96dfd","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"caa43ff3-0859-4043-aee1-f58071940fad","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":145,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"613a20b6-8377-4a56-90b0-185a62176321","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"7e9abbce-cdab-4056-bec2-1b168c24a2b7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"8f14b09c-878e-4be2-8b3b-0be56cfed547","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"fd792f74-c9e2-42b8-9f1b-1eedacfea58b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"665865eb-916a-4d7d-9091-8482433af9d2","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mortgage-Backed Securities Fund and BlackRock Impact","page_number":145,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"cb91c76b-d94d-49a7-a711-a95843682547","block_type":"box","text":"Mortgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":145,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"8edb98e0-fda1-4e31-b052-7f5b99124c5d","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"c337bed2-f85a-4907-9eec-e84237a1e00d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"c107f45d-c4be-41c3-bd3c-057b88af7b5c","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"e6cdb21c-9fec-4fbe-82f4-dc86853c163e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"b15300c1-0066-4807-9955-4f5d00dcad62","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"ff33f847-491c-497f-a06b-f70c80f19d10","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":145,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"e22cd6ad-8c4a-4a25-9d0a-55b8994a74f3","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":145,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"5bd3985b-313b-4194-aa90-e3d0d7bf060d","block_type":"box","text":"may be up to the following amounts:","page_number":145,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"95b46d10-7861-44ee-b868-3e10eef87c02","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"8c97521a-ca78-47be-9ebf-b70b5e8b4107","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"cd6a12dc-6d8a-45a5-802f-d2884bcc49f6","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"39025488-c27b-456c-9d18-579c4ebc3556","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"3b4a4bd4-a305-4ca3-8252-b0cb3f672cb6","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"a1f0b235-980a-4579-a7bc-a59fa8eb005f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":145,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"f50f2a45-7f9e-48e7-b15a-e0951644b35d","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Portfolio of BlackRock Funds V, the","page_number":145,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"b204499b-29a9-4fa1-8998-762700423b9a","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":145,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"f703c3cd-0aed-4bb4-b776-d8293c06151c","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"334b1a85-5107-4fef-9005-4ab50806caf0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":145,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"e5995c6f-074a-4e3c-908f-752b05f889f9","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"5dc8e79a-db31-4d09-8bfb-6dd1afdaabd9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":145,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"f181449c-d179-4843-9b6d-c0f9f8669583","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"899f1dfe-95df-4486-b0f5-ba731e6d74a1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":145,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"0860f913-e1f5-413b-b6e2-1f58a70af55f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income","page_number":145,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"75a9b28e-870a-48e0-b977-e640aef17722","block_type":"box","text":"Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V, the","page_number":145,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"d4c53187-106f-4f11-b4a1-cba3abeaaf8e","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":145,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"8cc27fa1-8da7-4d5f-b839-2406a7a9e58c","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"0d95979e-f9f6-462b-a0f1-e3ce0039d105","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":145,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"56f153e5-e039-407f-b295-c1a584ac213f","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"db858984-fd41-49c0-8ea6-f22559eb2ba9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"23a7d11d-a50c-4409-8997-a3d2a5cbe07b","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"efa7703a-0261-4ab8-b79b-538784e7a985","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"2ebfdd40-140c-4e1b-8c99-7751ea1b288e","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":145,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"99c2daa6-bdd4-4989-ac29-0f49768ffc7f","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":145,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"214dd1c7-180a-4a17-9af2-3967416be39d","block_type":"box","text":"$250,000 and above . . . .","page_number":145,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"58b7bf28-ba70-4fda-9e01-68d15050afd7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"feed7599-4581-42b7-96bd-b11c6d90e273","block_type":"box","text":"II-102","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"efa2f65d-b8ed-4ed9-b07c-5d62b67342a0","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"30f0b227-a289-4c35-a801-6eb4bb47301c","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":146,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"3c859225-f178-403b-a709-5279ff519268","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":146,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"78b82279-3f15-4493-80fa-e287fef75b34","block_type":"box","text":"the following amounts:","page_number":146,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"1d6215e9-9a00-4a36-9bfa-aaaacaff50eb","block_type":"box","text":"$100,000 and above . . . .","page_number":146,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"e627abd0-6590-4b69-b933-4b9c0c2f584c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":146,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"79825424-aee2-4c18-a35c-17e1dabd5175","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":146,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"ae8d9589-9a18-43fb-b03f-8c05c198df5b","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":146,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"c6c1079e-e0f0-455c-87dc-aadc9e736b89","block_type":"box","text":"$250,000 and above . . . .","page_number":146,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"15f0006d-492f-4ba1-a428-6421a097db54","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":146,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"f664a807-bee1-460c-9242-08fe206d397f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal","page_number":146,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"c899ee84-ec7e-45cc-b18a-a28125c0b14a","block_type":"box","text":"Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":146,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"46b674c2-7d2a-4a38-89f9-3b889348f959","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":146,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"8b28debc-a01b-436e-a1d7-bc46b9d81aea","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":146,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"70ed446c-7ca4-41ec-9f14-874bd0fc674b","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":146,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"4eca9028-e0e9-4ccf-8ab1-b9c63b381f55","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"02ec48f0-4770-432e-8729-cd95b6c52d34","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":146,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"51428d95-7823-47e0-8731-5612a237ea22","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"a67c40a1-8ec6-4296-8606-db4ffefabea3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":146,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"97f570e8-f818-4039-8bce-710555e3bf7d","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"8a29bc5b-1979-4023-abf1-a8f33d54a69a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":146,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"50574c85-fff1-4753-9e4e-6847c2877873","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Portfolio (for shares purchased on or after","page_number":146,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"6573bdbd-79a3-4712-9a01-a3ee6024bfdf","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares purchased on or after July 1, 2020) of","page_number":146,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"378bf405-2ed4-4875-b095-6c006b9540e2","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":146,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"9a83cd7e-f73f-4d7b-a2ec-c24f84e0ede4","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":146,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"477ce258-f9e7-4254-9143-b7bf5089a7bc","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"65e88c75-b174-4300-a615-0507b04a463b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":146,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"f6cfdacf-4e71-4a4f-a7e1-69e0779963fb","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"810748c3-a51d-4a0a-85ec-1b76ad35f47e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":146,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"0e01fe34-c0f6-4e2d-add0-87eb5a34b974","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"5268bd23-1fca-4b04-9b7b-44d8af914fdf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":146,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"aaeacfaa-a9a0-4881-a848-01f416948cba","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":146,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"6e7fb05a-c9e9-41ad-934d-f7a92c4d3e57","block_type":"box","text":"®","page_number":146,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"37e7aa54-3331-4daf-bca7-7dbc2b8f9f6f","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":146,"box":{"x":513,"y":463,"width":264,"height":10}},{"id":"3a3da2d9-c8f1-4c3c-9950-2bb273bef361","block_type":"box","text":"®","page_number":146,"box":{"x":778,"y":463,"width":6,"height":5}},{"id":"c9905043-32b7-488d-919e-7e839da0450b","block_type":"box","text":"Index 2035","page_number":146,"box":{"x":791,"y":463,"width":79,"height":9}},{"id":"90854169-f06f-4692-9a04-c88a0d11eae3","block_type":"box","text":"Fund, BlackRock LifePath","page_number":146,"box":{"x":70,"y":478,"width":177,"height":11}},{"id":"6ebf7ff8-bf42-4cbf-8bba-88583b4545bf","block_type":"box","text":"®","page_number":146,"box":{"x":249,"y":478,"width":6,"height":5}},{"id":"aa378d17-0761-4509-926b-a821cb72861a","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":146,"box":{"x":261,"y":478,"width":265,"height":11}},{"id":"b688bd9b-4829-41dd-bb27-3309190341df","block_type":"box","text":"®","page_number":146,"box":{"x":527,"y":478,"width":6,"height":5}},{"id":"770e1dc6-ae37-4494-ac1f-214c4bf1ef68","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":146,"box":{"x":539,"y":478,"width":265,"height":11}},{"id":"1e2b8d5c-ab97-43ca-9902-697441ceef3a","block_type":"box","text":"®","page_number":146,"box":{"x":805,"y":478,"width":6,"height":5}},{"id":"7653f7af-10fb-48ea-baf7-472c2cba465c","block_type":"box","text":"Index 2050","page_number":146,"box":{"x":817,"y":478,"width":80,"height":9}},{"id":"44763be2-8383-4ad7-8d4c-c74f82d5f9e6","block_type":"box","text":"Fund, BlackRock LifePath","page_number":146,"box":{"x":70,"y":493,"width":177,"height":11}},{"id":"d7e19442-2a89-43f4-b50d-4aedcc149476","block_type":"box","text":"®","page_number":146,"box":{"x":248,"y":494,"width":6,"height":4}},{"id":"080b6c77-8d65-45f9-83fd-605b0a59027b","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":146,"box":{"x":261,"y":493,"width":263,"height":11}},{"id":"e6d2252c-baf1-4b37-b50e-db5e24b027f3","block_type":"box","text":"®","page_number":146,"box":{"x":526,"y":494,"width":6,"height":4}},{"id":"a0b81e0d-6417-4864-88d0-9162b00f3b9b","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":146,"box":{"x":538,"y":493,"width":264,"height":11}},{"id":"96783550-3a94-4105-ab13-ae1f71e2e404","block_type":"box","text":"®","page_number":146,"box":{"x":803,"y":494,"width":6,"height":4}},{"id":"95cde3c7-05b8-4811-b72b-2b024dc6ba70","block_type":"box","text":"Index 2065","page_number":146,"box":{"x":815,"y":493,"width":80,"height":9}},{"id":"63ddef34-ce53-43a3-87f1-366962af8e4a","block_type":"box","text":"Fund, BlackRock LifePath","page_number":146,"box":{"x":70,"y":508,"width":177,"height":11}},{"id":"786c7350-762f-42b9-bfc9-b413501bc734","block_type":"box","text":"®","page_number":146,"box":{"x":248,"y":509,"width":6,"height":4}},{"id":"f2b8727b-c64d-480e-bc76-88ee5bec4488","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":146,"box":{"x":261,"y":508,"width":290,"height":9}},{"id":"72ba42e0-ec36-43a2-90f4-d0e7911cdb39","block_type":"box","text":"®","page_number":146,"box":{"x":552,"y":509,"width":6,"height":4}},{"id":"72672987-3889-4d95-989d-a79e1b402abc","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":146,"box":{"x":564,"y":508,"width":324,"height":11}},{"id":"01dea62b-50cc-408e-b1c9-ae0ee8cd00b9","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":146,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"cca2c0dd-6a07-47c2-8a37-662211ab0265","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":146,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"e81f234f-8ccc-45df-a718-b60ee6520480","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":146,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"c3f0ce8d-6cec-44be-b4b4-ca3838d3446e","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":146,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"77706825-3405-4da3-9402-4ca66dfafab7","block_type":"box","text":"SM","page_number":146,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"62e5e9be-4a4d-4f3e-a741-e20bdbecbda8","block_type":"box","text":", the placement","page_number":146,"box":{"x":773,"y":575,"width":110,"height":11}},{"id":"4da0dd6f-e879-4e93-883b-cdd46379ad67","block_type":"box","text":"fees may be up to the following amounts:","page_number":146,"box":{"x":68,"y":590,"width":294,"height":11}},{"id":"52d87676-8a64-4b00-ae1b-50656bd94bc9","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":146,"box":{"x":167,"y":617,"width":206,"height":11}},{"id":"a66b7560-c71a-4477-bf81-4e47b6797de2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":146,"box":{"x":380,"y":618,"width":443,"height":9}},{"id":"e6188546-f94b-4f5f-a2f6-d5018c950386","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":146,"box":{"x":101,"y":642,"width":787,"height":11}},{"id":"4dfcce4d-24c6-4f2d-9886-3c329e852bc0","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":146,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"a21d7f2f-05a3-42db-9efb-f3f48ab4816b","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":146,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"b2f93c12-cae4-4141-9ed6-8ec8030f2465","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":146,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"f8e4b3c9-050a-41ea-b9f0-25f458318e21","block_type":"box","text":"example, a sale of $4 million worth of Investor A Shares of BlackRock Impact Mortgage Fund of BlackRock Funds V","page_number":146,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"8a7cf79a-f83b-4f57-a96b-15f553ab9dc9","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":146,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"1a3a4363-3b85-4670-ac2f-90a583b7e62f","block_type":"box","text":"$1 million).","page_number":146,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"853bd59b-26b1-4f20-8c14-323c889b0fb0","block_type":"box","text":"Other.","page_number":146,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"6bdb9f36-fdfa-461f-8c54-aa06d66fd6cc","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":146,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"c8275e97-2543-4519-aaeb-119b2db5ad7f","block_type":"box","text":"(a) certain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":146,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"1e1873b4-71ef-4388-a056-9ee39babe29f","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through certain employer","page_number":146,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"0d849dd0-87c9-4daa-b48e-b34d84f55694","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":146,"box":{"x":69,"y":808,"width":825,"height":11}},{"id":"8671a594-0ff5-4af4-8dc1-1270d39a591a","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":146,"box":{"x":68,"y":823,"width":773,"height":11}},{"id":"60554235-8f11-4244-825a-bd5d6aa40af7","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":146,"box":{"x":70,"y":839,"width":838,"height":11}},{"id":"7371599f-5e21-4552-9266-5c9c1e50e651","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":146,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"d40b8110-cb78-46bc-a110-d0b07cdb242c","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":146,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"725b3e7f-f845-4d5c-8bac-17db9fd9cb0d","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust departments exercising","page_number":146,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"a3e74311-420a-42ae-abbb-69c84767fe22","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons participating in a","page_number":146,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"05739673-cccc-4971-bf9d-cbdf06fc749b","block_type":"box","text":"II-103","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7f93f7b5-38bf-4517-a6d1-908a4d295cb4","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c25f0c68-0a2f-45c7-b527-d2fc3891b63f","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":147,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"0e1d6812-162c-410b-95f1-58183b917b77","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":147,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"f577bc22-ddde-430b-b5ee-96621dbcb3a2","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":147,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"88bf5e5f-e3af-4554-a8bd-9ca56dc7d16e","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":147,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"a9c3d913-f1ef-425d-bb98-972b859b524f","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":147,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"dd9619f2-5463-4186-b752-a2c7a77c89f9","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":147,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"d054b7bc-8e1c-4b4f-a628-54684bcdacf1","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":147,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"8203b2f2-3093-4479-92d8-1ce9b7af4210","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":147,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"5a581da3-4c91-4aa9-af76-30c2d9204be8","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":147,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"683f41d6-1ef3-4a1e-baee-a3e05a960125","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":147,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"2bf96c6f-343e-40ce-983b-422f65a48937","block_type":"box","text":"including: (a) officers, directors and partners; (b) employees and retirees; (c) employees or registered representatives","page_number":147,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"790ae0e2-6f6f-4477-8856-773f49b838b9","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":147,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"195c01c4-ac82-47fa-a950-b6d794171939","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":147,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"92e2d136-534f-462a-9dac-7467d5f945e7","block_type":"box","text":"spouse or domestic partner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":147,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"e8ea9301-3327-4f69-b858-2728cf6942f8","block_type":"box","text":"plan for any of the persons set forth in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":147,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"83181927-1d20-4169-99a4-2c8029774bc0","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":147,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"1f15ae01-0ff9-4f46-8db6-669f3cc8d274","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":147,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"34de434b-da3c-483f-8b97-af1e4b0dabe9","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":147,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"4307e7d9-7ee1-4f92-aa35-6f3988513f56","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":147,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"ed5934a2-fa52-41eb-91dc-15b7dfb98746","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":147,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"18ae06af-5b6b-44e2-8299-0c6c7fc6460e","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":147,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"e16812f5-14e8-4d2b-a60d-8705ec76259b","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset","page_number":147,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"a6560490-ec29-4d67-b6d4-9cd99040576b","block_type":"box","text":"Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":147,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"d09ed16c-91cf-47df-8c2f-a2f5e0a19311","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":147,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"7ecd5d4b-d5bc-443d-b47c-f6b676b67aee","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni","page_number":147,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"c2bb900c-04f5-4f47-a4ca-08c0c8831e5d","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock","page_number":147,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"769ce23c-7502-47e9-8e1f-fdb5f578f0d3","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series","page_number":147,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"8303300b-f9ed-47c4-8003-e08824c639a7","block_type":"box","text":"Trust, BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":147,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"f9549d8d-61d0-42f1-86a9-7ca3d48b6455","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":147,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"889fa23a-b7c3-4bc7-9d60-def730a5a4b0","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock","page_number":147,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"405a1b3d-48ce-4dd8-a2ec-83c3425444bb","block_type":"box","text":"Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of","page_number":147,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"73971790-07ed-4e15-85f5-d2cd2ecc4487","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":147,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"748fa7b6-fdde-419d-9adb-5b46f7ddf62d","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":147,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"d3264a84-d11d-4040-8364-bba2b45d13eb","block_type":"box","text":"shorter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":147,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"5e789965-e1a2-438e-a40e-04596db7600b","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to certain redemptions of Investor A Shares of the Index","page_number":147,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"1f3f1d7a-5253-49a1-a9bd-917755c495ea","block_type":"box","text":"Funds and BlackRock Short Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":147,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"defdd824-14a8-489f-ad61-5d1573c3005b","block_type":"box","text":"portfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":147,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"dce40621-7124-49df-9431-8c0b581c56b2","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Portfolio”) as part of an investment of $1,000,000 (lesser amounts may","page_number":147,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"8cf088ae-023d-4cda-bd75-8c637df8a07a","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Portfolio) or more. The Investor A Shares deferred sales","page_number":147,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"5bee2bc3-18eb-4559-8e85-fcf5141e87c5","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":147,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"35110377-a3ae-467a-8fc9-68c0fd0fe354","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply depending","page_number":147,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"99c31ada-db13-4181-b994-637b2fdf586e","block_type":"box","text":"on the Investor A Load-Waived BlackRock Portfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":147,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"255cb303-da60-408f-9546-2896ecf78cea","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shorter holding","page_number":147,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"3cad692c-171c-43ef-a0a3-97143e0aa102","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":147,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"0fe6a2d1-a2fc-471d-8ab3-f8efa6f7e0a4","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Short Obligations Fund).","page_number":147,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"1fd9d670-12cc-429c-ba94-82f2fb418392","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":147,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"26819670-a62f-46af-a071-fbb4ffadcad2","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored retirement plans","page_number":147,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"8c6bf8ff-d08a-423a-af39-f74dd0ba3a3a","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":147,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"dc39d6ad-7c56-4570-b589-e3a7c1c261bb","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":147,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"36652acf-63eb-4cd8-9cb3-1136077a249b","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":147,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"b4c8ea26-3527-4ac5-b659-b1cfc04bd914","block_type":"box","text":"certain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":147,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"5c0c8438-ea7d-4037-9de2-dc6329999d97","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the","page_number":147,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"579e4f05-6d12-4b86-964e-9b91c5fbd0d3","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":147,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"205abbfe-b657-4426-80d8-6d443902c9fa","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":147,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"c309aae8-72a6-4b1d-b2df-b3d08e208271","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":147,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"d728c599-fca0-4a64-88fe-4268de381128","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":147,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"9c6bd958-f9c9-4478-8b80-3b0d467eed9f","block_type":"box","text":"II-104","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1eb70529-5b6e-4bf4-beaf-4a9b8a7562c8","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f0ba05a2-8fb1-4476-ada8-f4b2f250e437","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":148,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"ef4b41bf-a795-4fe0-9c89-de4b223cf6a8","block_type":"box","text":"the absolute discretion of a Fund.","page_number":148,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"6350a1a5-187a-42e4-a6c8-aff7d1ac0560","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":148,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"afa865d1-167b-4836-b8f7-46581dfcc0c1","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":148,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"6d8fb5dd-d838-458e-b3db-398bc92a8d2e","block_type":"box","text":"BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income Portfolio and BlackRock Managed Income","page_number":148,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"ed087067-df73-4a8d-85c6-f7e201433a4e","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":148,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"cc5ed732-fefd-43f6-82a5-d73dcc9384b2","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":148,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"b0861213-eaae-42b4-9243-75f34caf0543","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":148,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"dd125496-0e0d-48e7-aa7a-ecdb330b8489","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":148,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"cf7681e0-02c6-48bc-9e5c-06a6603a3f2d","block_type":"box","text":"Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":148,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"c4876c7f-f839-4911-a4af-c7b0c6e824f9","block_type":"box","text":"Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":148,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"c42c0138-6e0c-42ca-a15b-a0526bebeb08","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":148,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"a1f3926a-88aa-4bb4-9185-33bb2004b7b6","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock","page_number":148,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"a2e28aaf-605c-4630-9183-f8c9b514bd10","block_type":"box","text":"Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or","page_number":148,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"835df16e-7beb-4c98-9d45-b417f0e2fc95","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":148,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"f8e35231-0a3e-4744-b9b8-c5c264b09d07","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":148,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"d2f19925-e389-4a7f-a5b3-3c928c73bc19","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":148,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"00fb2120-5fd0-4500-94a5-eaec992fb2a9","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":148,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"07ab33fd-7a18-4a08-97c7-8162a89988fb","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":148,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"d7e76904-8af3-45b0-aed3-a16f64c04e20","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":148,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"f5c09613-af51-4e29-bdab-07df005fab5b","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":148,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"6a22a87e-c44a-4b50-ba28-492df03ffdb2","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":148,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"59ff0b6f-9445-4155-8e7a-72633fcdf5f0","block_type":"box","text":"public or private investment company.","page_number":148,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"1c1d368f-9ab0-4b7f-8f4c-f645764354c3","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":148,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"a93eb187-3136-49cd-ab32-f9578ee5652b","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":148,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"ec87d27d-18fc-448a-a6ed-1a01f3c08fe3","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers, selected securities dealers","page_number":148,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"2f0c53a2-a12a-4d4b-a4a7-64db5c27dccd","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":148,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"ff33272c-17ac-4a59-a77d-c998f2cd550a","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":148,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"44604799-8b4e-4de8-9f6d-ceeb11dbae10","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncertain","page_number":148,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"a87ee418-ea3a-4af0-aec3-d4286c767c1e","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":148,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"c355a457-683e-4189-ab4b-454bdc14ce4f","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":148,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"8d323f86-678f-4e85-a0fd-b37c8c9df418","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":148,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"5a65e139-ea02-47b8-8762-21833fa96ee5","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":148,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"82b1a3b0-6805-4512-8a9f-60258c6a1d38","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":148,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"61861a36-708f-4cf8-838d-03ba4c52df7b","block_type":"box","text":"intermediary associated with the account.","page_number":148,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"29f0240f-ac6f-4b3a-90dd-35de8ae19cee","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":148,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"78368f55-6d7e-4ef8-bf73-986828a123c7","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for the","page_number":148,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"cc36209d-7f9b-4d2f-bd81-bacfd16dd035","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":148,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"25493853-4c8a-407e-888b-f8bf8c0a6765","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":148,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"21ef60f8-9265-470e-8e54-e8bd4ebd2fd7","block_type":"box","text":"CDSC shares.","page_number":148,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"851a77d9-6f5f-45ed-88fe-b114c823b4d7","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":148,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"b29699c4-3c3a-4798-8f7f-43d3817c87e7","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":148,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"3897af60-79a4-45d8-b485-0d1d69998346","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":148,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"e1efc060-ad4e-41e2-b97a-e542bd2e5055","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":148,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"a421dbbf-6769-4b2a-b5eb-ccea6dfa1825","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":148,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"2d840917-4e50-4d5a-bdd9-a47e23641737","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":148,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"ed9d52a4-b5ad-4ec9-94df-e52416ae5a01","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":148,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"5842f66b-6618-4d7f-8944-f28f1e305555","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":148,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"18cbda31-0c3a-4fc0-8515-d59d27e873ff","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":148,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"8a6a6248-efa0-40ae-884a-2611ddcd9672","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":148,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"ab4fdad7-e130-41c0-a0fd-f8244ff54c00","block_type":"box","text":"connection with sales of Investor C Shares to certain employer-sponsored retirement plans sponsored by the Fund,","page_number":148,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"4c9ddc18-3b61-41f5-856a-fbb4cdd2d37a","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":148,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"a5a24b26-1471-4cd3-8db6-b32770498d80","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":148,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"30f922f5-79e7-422f-bd6b-3355be5bcdf9","block_type":"box","text":"II-105","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"64cf570f-29b2-44a4-999c-74e45e41f7f9","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":148,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"950fb402-22ea-4035-bdb3-8d35b912cff5","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":149,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"0c097100-1e9f-4526-9242-ad1e7d31ca3f","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":149,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"947532be-b89b-46c0-b9bb-e268a528a7a0","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":149,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"a6f51951-5b98-43b1-9244-dd693078a81e","block_type":"box","text":"Investor C Shares held for approximately eight years will be converted into Investor A Shares, as set forth in each","page_number":149,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"67cb47a8-c388-455c-b126-100f97dd8b73","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":149,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"23faa638-6c1f-4b08-86d4-9afed4bef60d","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted to","page_number":149,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"3b0cb9f4-4474-4d77-baa3-700a5634c7cc","block_type":"box","text":"Investor A Shares.","page_number":149,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"1baa9dea-cc86-44c7-858f-8fb46c2c325d","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":149,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"ea655a47-7e65-4d29-9123-4c79e2f798a2","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":149,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"7bcb9889-78da-447d-8c69-c5d1479fbe9b","block_type":"box","text":"of each Fund will convert automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":149,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"c2133f39-0659-434d-9600-a755e085da20","block_type":"box","text":"Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":149,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"8be92cc4-ea50-47e6-8162-b27cab7ad1d7","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":149,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"10b3e337-bcf3-40b7-ac1f-627fd7077796","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":149,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"fc69826a-037f-4a28-a1a3-f2dfd8c36668","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":149,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"1f87f80d-7443-4aca-b45d-c7aca28deae0","block_type":"box","text":"certain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":149,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"ffe13d9b-55a0-44c0-915b-efa6f91fa532","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":149,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"0f13eb3f-e0a9-47eb-9074-aa3bb1435f77","block_type":"box","text":"Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after","page_number":149,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"052f953c-9cbf-4d7e-a417-09b7616520c6","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":149,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"764e33ff-5bcd-47cc-a7ad-64bb4336f00c","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":149,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"4cbfdf3a-99ae-4acb-a13f-682aa6ec190c","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":149,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"a7b453c0-8b54-41d5-8cf9-a7dd84b1a4fc","block_type":"box","text":"any such shares will convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":149,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"3f91393b-72df-48f0-b71d-750675b53868","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":149,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"4446c1ba-e574-41ef-a776-95f720d16394","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted into Investor A","page_number":149,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"74d25597-0a27-4fed-9296-65d0ea50fd2b","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":149,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"04979a53-d36e-47a3-b7b1-f7bf8f5c2d1d","block_type":"box","text":"“Investor C Conversions”).","page_number":149,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"10cc5e40-cf30-4952-bd1d-b0b0b201ddbd","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":149,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"ab24a266-cd45-4195-b484-3ecd4991df49","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":149,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"eb7623f6-2cf1-49c9-b7fc-53be953433b0","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":149,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"72afa853-35b5-40a7-a340-9e61c067d5af","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":149,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"746e2ad3-7dd2-4647-a1f6-9555c3fa5960","block_type":"box","text":"Shares will also convert automatically to Investor A Shares, as set forth in each Fund’s Prospectus. The Investor C","page_number":149,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"055eb051-1e7b-4021-ac06-aab7e98411d7","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":149,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"e791894f-0da2-45e5-8378-d51021a9541b","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":149,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"3b6ff644-6f0f-4bc2-ae74-95103932e8a5","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":149,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"50d941ba-fa70-4e00-b9e7-9d4ce12b7d2c","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":149,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"3b307a49-fadd-469f-aea1-3123faa09ff2","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":149,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"528ae15f-dcef-4f4b-91fe-e3bc18194539","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":149,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"d4b95b95-8416-4563-87cd-997fc5cf338d","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":149,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"24100be9-b3e8-40d3-9d71-af56b7bf390b","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":149,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"583649c7-1a88-4b2a-b4b3-afc89a981108","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":149,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"dcf1fc61-867a-481e-8968-71f888405186","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":149,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"54b202bf-a1be-44f1-8ca6-8f6bbab99c9f","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":149,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"e09bd7dc-7ffb-427e-8df4-70a2bc7956f1","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":149,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"280dabe6-119b-4ccf-9cbc-1b70ad971922","block_type":"box","text":"redemption.","page_number":149,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"5eb8a151-c320-40c3-b4cf-5abe646ff28e","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":149,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"23109587-c834-400f-a17e-cc2235de2479","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":149,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"02a8a2da-04ea-4e86-84b8-b7475ec2591c","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":149,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"dddf25cf-598e-4d75-9158-46d0e7b06ebf","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":149,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"c52bf415-daa4-4e1a-87da-bf19aa86e0ea","block_type":"box","text":"purchased through certain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":149,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"55e869be-44c9-47c7-9825-8ddb16ee5b85","block_type":"box","text":"certain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":149,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"3c07993d-942a-4651-a8ed-099666b9ac6f","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":149,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"f6d75bcc-c3f2-4b78-90cc-8154f2b03ab8","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain","page_number":149,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"6de662a1-bed0-4ac9-9ed1-fc3f18ca9e0b","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":149,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"c96cfd7b-febb-43d0-855e-1c486b8f3031","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":149,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"4736ce21-a37c-411f-b97e-d09750439a97","block_type":"box","text":"II-106","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"50dfee39-f8d4-40ac-aefb-2e7b067eda55","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":149,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5787ba54-ab31-44ea-8138-7d5d372df350","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":150,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"5744a6ca-a61a-4505-a05c-760277755a59","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":150,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"eebe3a3a-f572-4da0-8a9a-a7156d14ca7b","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":150,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"942fba13-9a64-471c-a909-b6643e9e796d","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":150,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"192e15d4-76be-4fe2-8ac0-7203414743ac","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":150,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"2036aefb-a455-47ad-9c1f-bd3662f069cc","block_type":"box","text":"limitations set forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":150,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"44b9e407-095c-4a81-b868-096b12a5b5ba","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":150,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"5b1cf382-7a58-47bf-a1f3-6288e4c8ab70","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":150,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"68dbaaaa-d471-4ddf-a137-c2444090b912","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":150,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"cd751ace-6076-43c1-94e8-86d42ded9732","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain financial","page_number":150,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"5018549a-53c9-4cb8-a124-0a9b2e0cf9ef","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":150,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"5090dcd6-1852-4da0-9643-feb2e42e394e","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":150,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"3b65fd01-971c-42c2-ac13-81885f98543a","block_type":"box","text":"Class R Shares","page_number":150,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"22565fde-a9d2-49a7-8527-6e9f687c57c9","block_type":"box","text":"Certain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":150,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"7b9dac49-e55b-4d4d-ae04-5b98b84189cd","block_type":"box","text":"available only to certain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":150,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"55e5c521-de57-43a3-8998-4ef6960d08f5","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":150,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"86d44b81-da66-4d67-aef6-0590f9bc8a0a","block_type":"box","text":"0.25% per year. Distribution fees are used to support the Fund’s marketing and distribution efforts, such as","page_number":150,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"e93ab91f-6a55-4b99-b163-485a577bfeb4","block_type":"box","text":"compensating financial advisers and other financial intermediaries, advertising and promotion. Service fees are used","page_number":150,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"aa61c9da-796d-492b-8969-e49b1409309d","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":150,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"6907e0da-e4a8-4fce-88ee-c8675ddd7677","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":150,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"dddb8462-c3d1-4785-a26c-f958a66f28e1","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":150,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"96a8edce-8cc7-4f97-b3bb-2db59bc8ee69","block_type":"box","text":"Class K Shares","page_number":150,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"4e945aae-3dd6-47c1-9a08-6b0fc59f60e7","block_type":"box","text":"Certain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":150,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"c0ab4fbe-a7f2-4cc7-aa5e-dbb7df75efbe","block_type":"box","text":"only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored","page_number":150,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"ef2ed89f-589f-46fa-a7db-a649e1e18e81","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":150,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"b4a3584f-a11f-452b-aa05-5eb1d123dbfa","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":150,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"5bf1724c-cc6b-49b2-8ab7-5ad332678965","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":150,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"19657c3b-cb5a-4aa4-8e83-a9762da19bbf","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":150,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"69020125-1316-4b58-bda3-4570b53c10ef","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":150,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"dec769e5-91e1-4c12-8eb6-2f3d9378bd5b","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":150,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"82fbfe75-277e-495b-a0aa-51a58331a65b","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":150,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"acade5ed-3724-41e9-a135-6e299fb6f627","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":150,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"2a8f696d-0295-4936-b495-925e1092132f","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":150,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"a6796a88-65cd-4dd2-b2c2-d2ea7e888820","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":150,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"fe8cf97a-a172-4d90-b00f-40cbebdf2d78","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":150,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"74d54b61-3025-4ce9-b0d5-e79f9672d4f8","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":150,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"bb2a44f2-4fd3-4574-bb2e-d3f65893a508","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":150,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"6b984feb-aefd-44f5-bd82-ba571cfd8742","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":150,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"4837d5ab-11d9-4f20-b946-6414f2afe02d","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":150,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"5be47100-5173-46f7-b928-be43b40d0082","block_type":"box","text":"distribution and marketing agreement.","page_number":150,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"982cbb54-cd40-44d2-bdf8-07de495c6b55","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":150,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"d785804e-e1f1-4a40-9c25-1ba3369804b0","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":150,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"070592b0-af9d-4ec8-8252-affb259cbc20","block_type":"box","text":"Eligible individuals who would like to convert existing holdings to Class K Shares must contact BlackRock.","page_number":150,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"e7ad389a-80ab-458b-aea5-b80ce0979336","block_type":"box","text":"Class G Shares","page_number":150,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"f151758a-6894-4eba-9cbb-4c83064426bf","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":150,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"6f75c56c-4a48-4475-ab36-a590ca5ffdbf","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":150,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"a2b9025a-3abe-4df3-baeb-eea3722cd6ce","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":150,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"e6f7460f-fc01-4839-afc5-edd520c20c3b","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":150,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"5f70e8ed-88e5-4b31-a99d-0c8b15956934","block_type":"box","text":"eligibility requirements.","page_number":150,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"ed9460f0-8b9c-4b11-8db4-0628985bf53f","block_type":"box","text":"II-107","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3910b907-f4dd-47e7-828a-2efcf5809e2b","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":150,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e019fb13-7083-4d21-a5ff-563b5d60cca8","block_type":"box","text":"Service Shares","page_number":151,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"6028b3fb-e276-4ed8-9158-5171d85a0867","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain financial","page_number":151,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"fbe017ad-1b46-445b-9c0a-ba4646976c3d","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain persons who were","page_number":151,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"6eb00bd4-d326-4091-847a-c8696016de5e","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":151,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"3feeb408-bbab-48cb-92f7-2f380aa13f45","block_type":"box","text":"®","page_number":151,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"5765241b-8afa-4fd7-bfb0-d16115e8ebb4","block_type":"box","text":"Fund in 1996; and","page_number":151,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"01e82d02-8349-4f8c-989f-e119547fd677","block_type":"box","text":"(iii) participants in the Capital Directions","page_number":151,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"8d39545e-3a7f-40c6-9f28-d11c4feba427","block_type":"box","text":"SM","page_number":151,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"ad7a5f8f-f8a8-4b49-a25f-7534ad751983","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":151,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"24fed6e1-7166-436d-bcc9-1639a4506476","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set forth in the applicable Fund’s Prospectus.","page_number":151,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"4543732b-8a16-4561-a010-3f4a238a5fe2","block_type":"box","text":"BlackRock Shares","page_number":151,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"9ecb1c1b-bca2-41fd-90d9-d67f416b10ff","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares are","page_number":151,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"2d51e582-ae07-4fe9-81c0-ca08c6fe2394","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and certain","page_number":151,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"c1ff696e-ff03-47ec-923e-257acd0928ac","block_type":"box","text":"fee-based programs.","page_number":151,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"114ee0a5-6f68-4333-9356-c18a69e23a7a","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":151,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"54015f82-b6c0-4f9e-a6e5-bbfc3509a269","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":151,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"4fa00f8d-f732-4afa-a81c-b3d60a58e5b0","block_type":"box","text":"respect to certain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":151,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"7dff39ff-2463-4c19-819f-f59470e523fb","block_type":"box","text":"shareholder servicing fees for certain services provided to its shareholders.","page_number":151,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"d5dd72e1-7e0c-434f-ba2a-57aa2f46a26c","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":151,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"daf26a53-c359-45e2-8704-c4a206bfc2ae","block_type":"box","text":"BlackRock, fees for distribution and sales support services with respect to Investor A, Investor A1, Investor C,","page_number":151,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"0eda0103-cf8f-45eb-921e-ad966c5a0685","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described further below, only Investor C and Class R Shares","page_number":151,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"3a3f6266-fa51-4130-bc83-2e1f52e2f9e5","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":151,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"372f7d3a-1549-4a6a-9b72-260e39822420","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":151,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"526b9dd6-2fc3-4411-a22a-e24bfa6116e1","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate efforts to effect sales of the shares, but it is","page_number":151,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"f3a83b49-42e5-4c04-a7ec-5b12e31da7cd","block_type":"box","text":"not obligated to sell any particular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":151,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"7f4ffc4f-aea2-48a6-beef-e17abf87ed4d","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":151,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"949e805a-85ac-47a5-9081-fdcff2538231","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":151,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"38e9b9d0-f75a-4df5-b718-c53af16f36f8","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":151,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"93594ae6-fc84-41fb-a2dd-8db1cfe853d6","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":151,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"f5184832-7ce8-4750-a883-8a9cfd474f6d","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for certain support services rendered by Service Organizations to","page_number":151,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"16ebfa78-7456-446b-876f-218ee7f9a420","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":151,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"e07d761b-0991-4d07-9d56-9e09b22c3084","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":151,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"46ebfdb7-fad3-436d-81ea-b502c34ce0ac","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":151,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"3759449d-aae5-41c8-b1c4-bf5f01660319","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services, which include,","page_number":151,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"428bbe55-1ef5-4a29-a813-4e90665ecfa2","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":151,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"0a23b094-bf86-4ebf-b88e-ef2f39cd6200","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and certain other matters","page_number":151,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"5997203e-0b94-4c15-b880-ffbd3c2f6728","block_type":"box","text":"pertaining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":151,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"888be372-9945-4dc4-8358-6d57d8884b2e","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":151,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"6a8c53ab-2a2c-4f4f-af0d-8e32bdcc2172","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":151,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"34fb5300-7e09-4d97-a3b7-5c3c6c65c62f","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":151,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"7000b759-ecf9-4011-8139-d22486ad482b","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":151,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"06dac3b3-a75b-464a-b4d7-6445ed45eb07","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":151,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"50f49f55-38a5-4142-8d63-95a6812753d1","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":151,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"575e422c-2583-440f-bdf0-e5fd61322044","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":151,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"72ba999c-beaf-40b4-bdba-a5ad596c0675","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quarterly.","page_number":151,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"87cb0b22-baff-40d4-8551-8cd77d1f9fb0","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":151,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"9a900eba-018b-43cd-87cc-237cc1de6d0e","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":151,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"211a8f63-d9f4-4694-9d47-781f247202f5","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":151,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"caf886d5-928e-48e2-bd22-b10c27dd1c65","block_type":"box","text":"expenses, advertising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":151,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"45b3a3e6-c07b-46a2-b2ea-4ca1f4cb9086","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":151,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"82044e10-3338-44f9-ad46-837a7fd1b95c","block_type":"box","text":"compensation for selling different classes of shares.","page_number":151,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"0eb2be4e-52d7-493d-96b3-be5a63113298","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":151,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"77a03117-a70b-4cc8-ad43-da25a6286e8f","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":151,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"280325aa-c272-4a28-88a3-d95e95ec13c3","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":151,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"09d0ba96-e824-454c-bd9f-cbc339faa4b3","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":151,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"33b4c1f2-de6c-4722-9756-3b72394f9199","block_type":"box","text":"II-108","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d8174ef3-d9c8-44bc-a993-dc1dde454a13","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":151,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e442a857-75c5-4320-b63b-22cdc6d4cefc","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quarterly","page_number":152,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"27d6726a-b154-45a6-8b8f-53929fa6ecc5","block_type":"box","text":"reports regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":152,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"04cf2054-92c3-4f1a-8053-0bf08ed8124d","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":152,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"26c947d5-4af0-43ad-b9f3-dfee791c784c","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":152,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"866fef93-d3bc-455d-8df7-5f172968bf31","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":152,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"61cd48c7-1a51-4381-9249-0e89b9d0a1e6","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":152,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"b8c128c4-e22e-4970-94d5-f3a8366fb2c7","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":152,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"cf1c7b1e-e0b0-4149-a2c9-446bed4db7b3","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":152,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"25e5d421-b045-422d-8d3f-eaf7db40332c","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":152,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"32595e73-df68-40c9-b3c5-b6bf9c3f5f32","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":152,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"4b9d78be-f803-49d5-a8a7-9b74752c4212","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":152,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"7339e99f-493d-44cb-b811-7c65d4be89e9","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":152,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"47b00501-761e-460d-bd96-e0ba45f0a691","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":152,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"5a0a953a-9de2-403d-b778-8457d4f36592","block_type":"box","text":"Directors. Rule 12b-1 further requires that each Fund preserve copies of each Plan and any report made pursuant to","page_number":152,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"50e4f2ba-465b-4e28-82b8-b4474f950b8e","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such report, the first two years in an","page_number":152,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"a020f4d5-a964-4590-b1a7-b14a3760b8cb","block_type":"box","text":"easily accessible place.","page_number":152,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"5e57eddd-c7c6-468b-91ed-49c248b6b54a","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":152,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"9179a841-2070-4c53-92b0-50adcd546268","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":152,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"4e1600aa-dc49-418b-a8dc-9fc46e7412cc","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":152,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"20efca6a-1e40-4939-99e2-b614fb34c5f0","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":152,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"46137959-4d13-4500-b6dc-0625c454c751","block_type":"box","text":"fiscal year.","page_number":152,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"c047ebb9-f496-427b-bdb3-72034c95d94d","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":152,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"855fc058-fb6d-45e7-8163-57d14aaa61ef","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":152,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"77e2bb3a-70d7-4b51-9045-cce0bd473dfd","block_type":"box","text":"imposes a limitation on certain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":152,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"4a92eaee-b01b-4dd2-9b40-c8d0f499e8b9","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":152,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"ca74f4db-403c-4278-9336-e94be933e56f","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":152,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"7d9f95fd-d5b9-4f9c-a9d4-dfa3b1e02166","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":152,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"c636334f-a6e9-4e3b-ae51-1d6f68db6fdd","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":152,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"ade358ad-b556-47af-be62-dbd99553e6ab","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":152,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"da5b08ab-09e4-4c0c-9069-8e505d6fb457","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":152,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"0c5dd048-e992-4ac2-b00d-ef365bf93200","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI","page_number":152,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"fe39bf34-0ff0-4066-b54d-76ada3bf0028","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":152,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"315f7356-6833-4861-97d4-cc7362e48869","block_type":"box","text":"and Class R Shares of your Fund.","page_number":152,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"5aaa6b65-156c-4ab4-b397-eebd64796435","block_type":"box","text":"Other Payments by the Fund","page_number":152,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"e20f8890-f8ab-4bc8-8685-2a2eb44e8dd2","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":152,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"d8794d96-96f5-4b00-9f27-009b493fa1ab","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":152,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"eafc970e-2c11-4a46-b5bd-34f6de5af7c5","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":152,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"2990de5e-f057-4071-a4ee-33f7b724f602","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":152,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"41af35fc-018d-4177-98c5-a10c746889c7","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":152,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"cc21999b-36a4-4d97-9217-1cd1a9c3475b","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":152,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"0765f6d1-daec-45d1-938c-9e7efba1ac13","block_type":"box","text":"of these payments may be substantial.","page_number":152,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"095b1603-f143-46d8-b958-b6af19817b60","block_type":"box","text":"Additional Payments by BlackRock","page_number":152,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"5375a036-8d66-463f-b777-374de1dfb27b","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":152,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"a5479b34-04a6-46e0-a495-4118ee1b758c","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":152,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"dcdc7881-d2b7-45d1-8d07-4ca9f5c3d087","block_type":"box","text":"its shareholders and/or for data provision or technology support. A Service Organization may perform these","page_number":152,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"724da1bf-908a-4b85-997e-2cebf6622c3f","block_type":"box","text":"obligations itself or may arrange for a third party to perform them. These payments, which are not made pursuant to","page_number":152,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"c164f3cd-f664-4570-b285-4c04c7af203b","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":152,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"9cc96bda-47e8-45db-9224-cb9b6cb09684","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":152,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"9ffe3088-8f88-4421-b661-533d12393eb8","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":152,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"cf843d62-d2a6-4423-b20d-85f88ff5452d","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":152,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"0ce85e23-f69f-4216-9698-59a1570070d3","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":152,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"29abac47-924c-4aba-9163-5b17b22ac5bc","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":152,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"654bdf7f-3dd4-43ac-bf2d-e8687d55ce82","block_type":"box","text":"II-109","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"25d34a13-ce9d-4b3a-a736-e891b32b4f46","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0cc1c44b-0366-44b4-88c4-c08a8c9621e3","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":153,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"b4a4265f-3deb-4e92-aee1-a888ba83fe66","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":153,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"362356a4-5e12-4b06-9fb8-98a063c262b3","block_type":"box","text":"applicable FINRA regulations, the details of certain of these payments, including the Service Organizations receiving","page_number":153,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"8f4eab02-467a-41c2-9a69-d4461c93d95c","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":153,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"08c94619-34d0-45ae-9352-b33ef2ed304a","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":153,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"908b21e9-bc83-43cf-820b-49d38dd64b60","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":153,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"056fc9c0-5a00-4cd3-9cc8-f9eadd6eeee9","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":153,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"450cb9ac-db6f-4bf9-ad57-e4f1396b8313","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":153,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"2fbfbe42-4725-48fd-a514-10f1e367ec0d","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":153,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"bd5f2173-456b-4cf3-85e5-2d2e2c03415a","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":153,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"8e08557c-a1b6-4bf0-8753-47a66528d94e","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":153,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"aafad298-8a56-41dd-9207-d11508193f76","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":153,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"a36ba97e-a3ec-4419-bb56-e7c5fd4afbd4","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":153,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"7a5e85f6-1cf6-41de-9e05-0993ccfb524d","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":153,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"cfca2cc8-112f-4e7f-957b-41a93292c17a","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In certain","page_number":153,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"119e0c98-e294-42d3-9fb3-f5f35baee5c4","block_type":"box","text":"cases, these payments may be subject to certain minimum payment levels.","page_number":153,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"52e4ad83-c2e5-4b06-a5a8-9566d9c4d7ed","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":153,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"e589a8cc-dd34-432d-b0c4-1803b3bcca39","block_type":"box","text":"certain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":153,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"edbc31ce-f57e-43e5-a822-e8eb0687bbd1","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":153,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"c77ce581-48be-465d-bddf-0f12686c5073","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":153,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"7da23f14-aa17-47a8-b580-d0b1a62d0213","block_type":"box","text":"Funds.","page_number":153,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"53a3ff4b-03d8-457b-8c29-058165f13b74","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":153,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"b9c00495-e5e9-468b-81cd-dc6e76dc5888","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing support activities. 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These payments","page_number":153,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"4b3a9987-7066-45aa-b3aa-1cfd3bcf8df1","block_type":"box","text":"normally will not exceed the sum of (a) 0.25% of such year’s Fund sales by that Service Organization, and (b) 0.21%","page_number":153,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"eb4e3147-bc6b-484e-9b77-93961143f66b","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":153,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"80a25e11-6c46-4fa0-910d-9cd2c189a28a","block_type":"box","text":"B. Shareholder Services","page_number":153,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"15e3fb72-4934-468a-89b8-250d21ed59e2","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. 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Service Organizations Receiving Additional Payments","page_number":153,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"f8bb08a8-8f52-411d-a88c-6087914758ef","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, certain of the Service","page_number":153,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"ff211f1f-3d00-4d9e-89a8-8d5e16fefdbb","block_type":"box","text":"Organization’s affiliates, may be receiving one or more types of Additional Payments. This list may change over time,","page_number":153,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"2153c297-2998-44e2-b34d-f4e9217a2a0c","block_type":"box","text":"II-110","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7087644f-c249-4d75-9aca-4f82a596c254","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f15faf4a-08d3-49a7-9b57-715401c659a7","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":154,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"68f429c3-e4b0-47af-b4d7-ccd97c51e6c9","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":154,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"323d615d-351f-4379-b6b3-dbbf5c659685","block_type":"box","text":"payments 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BlackRock","page_number":157,"box":{"x":70,"y":341,"width":833,"height":11}},{"id":"b4f47e9d-6671-4527-a1eb-e2e173d161fa","block_type":"box","text":"configures these tools and calculators and localizes the content for Service Organizations as part of its customary","page_number":157,"box":{"x":69,"y":356,"width":817,"height":11}},{"id":"bb10a65c-f82e-4c96-afcd-4bf7836570be","block_type":"box","text":"digital marketing support and promotion of the Funds or other BlackRock funds, iShares ETFs and other exchange","page_number":157,"box":{"x":69,"y":371,"width":815,"height":11}},{"id":"9d89127a-8915-4e59-b557-5262c8c837b7","block_type":"box","text":"traded products.","page_number":157,"box":{"x":68,"y":386,"width":116,"height":11}},{"id":"791b7b32-6434-4e09-8a5c-d4aed02e0f62","block_type":"box","text":"F. Conflicts","page_number":157,"box":{"x":102,"y":409,"width":78,"height":9}},{"id":"984e8dde-2b05-4ccd-91bb-a3a3dda219cb","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":157,"box":{"x":101,"y":431,"width":710,"height":12}},{"id":"3ee7c4b3-c1e9-45e5-a4dd-5f7db379d240","block_type":"box","text":"arrangements may be an important factor in the Service Organization’s willingness to support the sale of a Fund","page_number":157,"box":{"x":69,"y":446,"width":803,"height":12}},{"id":"309ede25-f3e2-44c4-a35c-18e1327e1c6a","block_type":"box","text":"and/or particular share class through its distribution system or to perform services with respect to such Fund.","page_number":157,"box":{"x":69,"y":462,"width":788,"height":11}},{"id":"93127200-bc24-4acd-9c3b-439ce0e22625","block_type":"box","text":"Additional Payments and other incentive arrangements may also be important factors in the Service Organization’s","page_number":157,"box":{"x":68,"y":477,"width":819,"height":11}},{"id":"4047da0f-30d8-461b-b783-94b69fa43d62","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":157,"box":{"x":68,"y":492,"width":473,"height":11}},{"id":"cdccc9fc-3b91-4013-891d-e52cd4d96aad","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":157,"box":{"x":102,"y":515,"width":793,"height":11}},{"id":"b5e5807a-91bf-42eb-bbae-5bf70888a6c8","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":157,"box":{"x":69,"y":530,"width":835,"height":11}},{"id":"72c08b5f-7b47-4dc1-83f0-8c0aa4341239","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":157,"box":{"x":68,"y":545,"width":833,"height":11}},{"id":"399cde1d-389b-439b-9822-249a4f765547","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":157,"box":{"x":70,"y":560,"width":830,"height":11}},{"id":"4b5a7dbb-99b9-4f1c-ac4b-f6145b0ba50d","block_type":"box","text":"Service Organizations may have financial incentives for recommending a particular Fund, share class or fund","page_number":157,"box":{"x":102,"y":583,"width":774,"height":11}},{"id":"27109cfd-4036-4391-b1aa-b6600b7ef09c","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":157,"box":{"x":69,"y":598,"width":794,"height":11}},{"id":"a2a6ee30-e875-4554-b182-cf9952411bba","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":157,"box":{"x":70,"y":613,"width":818,"height":11}},{"id":"64e44523-f8b7-4a0e-b607-be2cc3c873b3","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":157,"box":{"x":69,"y":628,"width":836,"height":11}},{"id":"36a0dfe4-a493-4a5a-aef1-adc50589af2b","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":157,"box":{"x":69,"y":643,"width":723,"height":11}},{"id":"ae90328b-0184-449c-b54e-6b75bfbd9032","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":157,"box":{"x":102,"y":666,"width":759,"height":11}},{"id":"27cbe8ad-3dd2-4332-adf8-925d666f5395","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":157,"box":{"x":69,"y":681,"width":760,"height":11}},{"id":"b49cad2b-4ff4-41ee-905b-1ce9e3a6364d","block_type":"box","text":"appropriate.","page_number":157,"box":{"x":69,"y":696,"width":84,"height":11}},{"id":"097f6afd-8fe8-4139-9617-b5ecefdde066","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":157,"box":{"x":160,"y":696,"width":738,"height":11}},{"id":"97148f16-0e17-4778-92da-3325ebd397bc","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":157,"box":{"x":69,"y":711,"width":795,"height":11}},{"id":"2284008f-be01-4344-a3fc-0989eb71b88d","block_type":"box","text":"described above.","page_number":157,"box":{"x":69,"y":726,"width":122,"height":9}},{"id":"eac4ef77-1e2b-41ed-a22c-04b92b35e306","block_type":"box","text":"REDEMPTION OF SHARES","page_number":157,"box":{"x":385,"y":756,"width":208,"height":9}},{"id":"79f44f15-f672-4c88-9ac5-992d79202eb2","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":157,"box":{"x":102,"y":778,"width":798,"height":12}},{"id":"98e76210-3d94-445a-8a27-d885c45d75ff","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":157,"box":{"x":68,"y":794,"width":836,"height":11}},{"id":"929dc843-a4e0-41c9-abd8-0e4c543e8424","block_type":"box","text":"computing a Fund’s NAV), by delivery of securities and other assets selected from the Fund’s portfolio holdings at the","page_number":157,"box":{"x":69,"y":809,"width":840,"height":11}},{"id":"736593c4-fb80-4d91-a618-ac1aacddff69","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in portfolio securities and other assets rather","page_number":157,"box":{"x":70,"y":824,"width":814,"height":11}},{"id":"e22022fe-c526-4df8-b653-7f80dcc72d0b","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":157,"box":{"x":68,"y":839,"width":809,"height":11}},{"id":"e64d46cd-73e2-499a-96f5-8978264a46ad","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":157,"box":{"x":69,"y":854,"width":827,"height":11}},{"id":"f974cdb5-6aa9-48bd-a7c3-bbb265250597","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to convert the securities and other assets to cash. Each","page_number":157,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"1c1cae71-009a-462d-9a83-6551019dfa28","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":157,"box":{"x":70,"y":884,"width":797,"height":12}},{"id":"8bd6fc1f-8172-4a43-bd90-6de73d3aedce","block_type":"box","text":"II-114","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4b7141b1-a4a0-489c-aa54-5aaf6bcbee64","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":157,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ea7b55ff-979f-4e9a-afd2-cda7ccbb3246","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":158,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"221efcea-7839-40be-8de9-661945c05335","block_type":"box","text":"for any shareholder of the Fund.","page_number":158,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"19fd3fa2-c328-4335-993f-5d995f32384e","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":158,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"1e51de5b-f6f8-4fbd-9213-1b36e24fe973","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":158,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"5ec2fe38-36d9-4261-8846-c1cbc77cf0f3","block_type":"box","text":"time of purchase, depending in part on the market value of the securities held by the Fund at such time. Except for","page_number":158,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"206f95a1-b81f-4eac-85f5-66b4a35b3d27","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":158,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"24c44c98-2829-4866-b0fd-ae97a28c977a","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":158,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"10014a9c-2088-46cf-ab10-b8d3e72703a0","block_type":"box","text":"redemption.","page_number":158,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"15b32149-cf97-4e78-84e7-c02551619e0a","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":158,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"7b4edc1d-9b85-4516-905a-466fdb316e46","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":158,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"d7218bd6-8d9a-423e-abc8-1a5abc6d12a4","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":158,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"12cf4e9c-a0d2-499e-a7fb-ec88dea67a7a","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of portfolio securities or","page_number":158,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"54769710-dcad-418e-87a5-57f52927bb74","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":158,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"641b12fe-391f-4092-9457-8afb1958cc54","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":158,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"a2495deb-b9d5-4e2a-b95a-3836b6f13750","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":158,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"80c05651-c3e3-496f-af97-7f96db095d89","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":158,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"a59e4c7f-66d8-4922-a2f2-479d25f7a118","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":158,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"8a6e3b28-2387-4744-ac39-ab90945d99a4","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":158,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"442d9b33-e2c9-482e-b87b-8d90ef36d8e5","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":158,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"c6aa7ebf-0052-40a5-9c1f-61c67029b4e6","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":158,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"0350e74f-52fb-427b-bc7a-310cb215fa37","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":158,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"23b842e6-4a27-44d9-9642-ab14e67ccd0b","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":158,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"66f50937-4b39-4043-895f-7a338b549f5d","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":158,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"5cef0e81-bcb4-4341-a72b-841e43f94e5a","block_type":"box","text":"so redeemed shall have no further right with respect thereto other than to receive payment of the redemption price.","page_number":158,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"f5d6fbe7-2825-4062-ae25-bd10633e4b03","block_type":"box","text":"Redemption","page_number":158,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"5f1afd3e-7dec-41f1-b1c8-4b8e8f373518","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":158,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"78827bd2-de6d-4783-915d-f55f8fab9a4f","block_type":"box","text":"Redeem by Telephone:","page_number":158,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"0ff2545b-edc8-4ead-bbe4-5e41130c7fa3","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":158,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"dcf2ae7e-b75a-4726-add5-bf98bb7a6b30","block_type":"box","text":"telephone request if certain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":158,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"a0513bd6-aea9-4e68-a0a0-8bbe77c86569","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":158,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"6b6fd7ba-3a17-46f6-aeaf-f9f42274baf1","block_type":"box","text":"Certain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":158,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"c7a2eb66-d734-485a-a6d4-98362a4f0742","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":158,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"f4ac0325-4098-4bd4-bc18-a5ab5442e969","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":158,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"d00c4b9f-6285-41e5-b04e-7b7fd0f6393c","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":158,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"89addfc4-bea8-46ae-9dc4-815293c233c0","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, certain redemption","page_number":158,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"392eeeb2-e4fe-468c-8eae-a6d8920dbb43","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":158,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"814ee681-dce9-4600-8aae-929260c66ec3","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":158,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"d4a3af5d-5709-459c-977b-61a3b8a73bc2","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":158,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"70ce778c-e649-4212-90e2-7465bf7e516a","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":158,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"f8a8a440-67e4-437a-8f6c-ba9a43fabb57","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of these programs","page_number":158,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"2a42c52f-d76e-419d-8716-6e58ee717776","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":158,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"b88023b1-8d4b-4182-9b2c-30c460c037da","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":158,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"80bc9487-a4d0-49aa-b8fc-f864ddca15af","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":158,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"14061c3c-54b3-4f80-845e-907ac5ded00d","block_type":"box","text":"is requested by a corporation, partnership, trust, fiduciary, executor or administrator.","page_number":158,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"68960c56-7228-4acb-a9f9-a06a118f3340","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":158,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"919167fc-3a5a-47cd-a116-8c41ad2102e8","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":158,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"62db5938-f3e2-4497-b1c1-6517c08e20b8","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":158,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"e9174c23-5a62-4c97-9975-7303bf185f2d","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":158,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"3c7fe58a-18ee-4038-938c-1b0201da7e92","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":158,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"9d7d21bb-b15b-433d-8cd6-99b484348905","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":158,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"87928045-4426-4c8c-bb4c-6fecc17c679b","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share certificates have been issued","page_number":158,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"e9e595ec-c2dd-421f-adfa-12e3d57f8a03","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":158,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"1fc86efd-55db-4620-aed0-704a1f1c6dee","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":158,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"24be2d9d-4511-488b-b498-aa4eb715dd20","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":158,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"a7a381bd-21ce-4af9-8b38-7646c2e532e1","block_type":"box","text":"II-115","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ad22a2fb-8607-406f-99b5-cf09d7955e86","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2796b44d-cbec-4cf1-9fba-3333c25a0d48","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":159,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"af3ba9d4-abc5-471d-b592-95a19756d644","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":159,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"3ade53ec-98b4-428d-9209-b9bc17c97f0e","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":159,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"a965111f-9c32-4549-9152-53c6047ba9fa","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":159,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"b3f1a53d-30a7-4903-9c5a-8abb716a2d5b","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":159,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"f97d81ac-4e81-4489-8fa5-91ff62ccfd38","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":159,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"b6a7c380-b8b3-4ed9-924e-6746409b3204","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":159,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"9f61ce01-27ae-4cf1-8f9d-730ccac73606","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":159,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"6e0ede23-a68b-43f7-a050-420583b3a7b6","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":159,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"82fe67bb-fc12-4551-8b12-331747f93095","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":159,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"c5910dbc-a5f7-4c4d-a90e-887c78e1b645","block_type":"box","text":"Redeem by VRU:","page_number":159,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"4ff41e2a-f5fc-48c3-8af5-27069a227da2","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":159,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"07b16d89-97a6-473d-95c0-b3a95c7809f1","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":159,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"35047f59-d288-49ce-8c05-36f0e771fa07","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":159,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"c3dc0719-a171-4702-8ed0-d7a802810f1a","block_type":"box","text":"Redeem by Internet:","page_number":159,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"eba8bcba-7c71-46a3-ba5e-80648b696824","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":159,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"d5bfd23a-a8b8-4cff-b41b-1d7437bf5069","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":159,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"fae9130a-5ae1-4d6c-9d06-21c63e4defe6","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":159,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"5bfe28a3-4a6b-482d-8ef2-2e65e3be5471","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to certain","page_number":159,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"875b8ffb-d2da-462b-9b9d-2f2c121244b5","block_type":"box","text":"institutional investors.","page_number":159,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"9375c465-e7e8-4c20-8f4c-a8862f1c9611","block_type":"box","text":"Redeem in Writing:","page_number":159,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"9bcc72dd-6f66-4161-965e-2758b75a2540","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":159,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"a8899948-9ecf-48e3-93f9-327b13d89c8d","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":159,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"1510371d-6f0f-4541-b80c-4f983dc411f6","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":159,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"48dc4eab-e8ba-4ea6-9daa-ac983bb2049f","block_type":"box","text":"Pennsylvania 15222. If you hold share certificates issued by your Fund, the letter must be accompanied by","page_number":159,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"c10be30f-356f-435b-b84f-4db6f9f5532d","block_type":"box","text":"certificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":159,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"e3070718-7ad3-4cec-a7f7-0e10ae8679af","block_type":"box","text":"generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature","page_number":159,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"6bd322a4-4776-4580-873e-15d5b227c698","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":159,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"c3f7bb74-c771-4b06-91f3-2a2f48405919","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":159,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"ad8f7ea2-1fe4-4715-af14-2c71a46d8a8e","block_type":"box","text":"hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":159,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"cbd28b0e-ba9a-46a2-992c-52d6e8874bcd","block_type":"box","text":"or wire to the bank account of record.","page_number":159,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"543dacec-69f0-4a95-8bf0-48e80b70d85b","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":159,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"52ea9c7c-d6da-4e7d-b7b1-4685a46432d6","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":159,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"e30d223e-539b-42f7-9c26-5401e936119a","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":159,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"e0de7107-4245-40ee-9c33-b709cd92c5bf","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":159,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"5546b6bd-f9c9-48db-b757-dca5d53b7ddc","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":159,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"91a680d4-1857-4182-8dc1-028cd9d14ad9","block_type":"box","text":"(that is, cash, Federal funds or certified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":159,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"e8c74ab5-78fe-421f-85a7-bc859ca88789","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":159,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"f6efb533-41fa-4690-8309-6eec61dac1a5","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":159,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"50775d13-dc82-4508-bfa0-f0583d592463","block_type":"box","text":"redeemed by the Fund.","page_number":159,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"4161ae51-4ba8-4942-ad7d-7951f0d9b78d","block_type":"box","text":"Note on Low Balance Accounts.","page_number":159,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"24ba299d-f32d-4792-ad6b-31737f81444b","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":159,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"c12c119c-ceee-462e-bde4-e9b52d7d26f9","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":159,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"759cd407-75e8-474e-9b70-865acc021529","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":159,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"f52b87bd-4b2a-4b0a-ad24-620fa9edac6d","block_type":"box","text":"for any reason, including market fluctuation.","page_number":159,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"387ab768-a21a-4999-a49b-9ca099f69980","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":159,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"d62bd199-678c-41cd-bed1-183e94f137f9","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":159,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"8fe7a25f-b920-4104-9d40-4035dc6f1740","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":159,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"99f3981f-3428-43d0-acdf-d99cb13e197d","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":159,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"f42053e5-f32b-409c-8087-da30b77c1438","block_type":"box","text":"certain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":159,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"c90197ad-a899-4ffa-86ef-3da25ded7aab","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":159,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"c54a6186-6a3f-4888-9721-7e3057eef31a","block_type":"box","text":"Redemptions in Kind:","page_number":159,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"9ebfd8dc-3214-4b6e-8632-07fc82f27d6c","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":159,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"d146f5f9-cfa4-4f10-9e9a-f1d6fe9d9b17","block_type":"box","text":"whole or in part by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":159,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"d29dab48-e873-45d7-842d-9d92a0390362","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":159,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"2a605113-84d3-4bbd-bf49-4effec07aba5","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":159,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"1d55d5fd-1a90-4613-9770-8e92d41b467a","block_type":"box","text":"normally be paid in cash but may be paid wholly or partly by a distribution in kind of securities.","page_number":159,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"4837fef2-847e-4866-993b-ff51d6c056d8","block_type":"box","text":"II-116","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2a4256e8-141d-4840-9d2d-69326731d245","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b01fd614-7027-43d7-a5c5-4b429bd4bb07","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":160,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"02ab7dfc-50b2-4975-a2ba-fd6cde06daff","block_type":"box","text":"rata representation of the Fund’s portfolio or a non-pro-rata representation of the Fund’s portfolio depending upon","page_number":160,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"381a3d1e-5c31-45ba-8f16-22653b36ef3a","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":160,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"809e9876-f4db-4ba3-9d90-feeef3ba84b2","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":160,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"c11c13ee-624d-4c87-88e7-02c8e58dd50d","block_type":"box","text":"considering certain factors, including, without limitation, the portfolio management team’s model or optimal portfolio,","page_number":160,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"c8d52ed3-0bfe-4204-ae25-0b040441d0b6","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":160,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"9598a25e-170e-4938-a174-adf28016c008","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":160,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"a1bbdd3f-e314-4ece-8ade-0f3b69f6e0c1","block_type":"box","text":"retain those securities that will perform the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":160,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"271573b5-5b7c-42ef-988d-dbb23aa9eead","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of portfolio holdings","page_number":160,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"03013d96-41b1-4796-ad31-4dd314ddbc42","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":160,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"747c081b-4fcb-47df-826e-257520a2ba95","block_type":"box","text":"The Funds may effect redemptions in kind in an effort to, among other considerations: (a) manage the portfolio","page_number":160,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"a1ce3342-a8c8-4d25-a34b-e41fb023fc1a","block_type":"box","text":"efficiently or for any other portfolio management purpose, and (b) externalize certain transaction costs that would","page_number":160,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"ef8fa85e-c554-46d2-b36e-4a9954946960","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or portfolio turnover. Redemptions in kind may","page_number":160,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"414fd477-32a3-467f-8349-bef0409702cf","block_type":"box","text":"reduce the need for the Fund to maintain short-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":160,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"1ba69e0f-b989-4db8-9b8a-6b9fe3bccc8d","block_type":"box","text":"for the Fund to sell its investments at inopportune times, and lower Fund capital gain recognition, all of which may be","page_number":160,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"fc4b29d5-14c6-4933-a4e8-bb4195947826","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":160,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"64525161-bdd0-4d88-b7f4-5a9b0c806934","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":160,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"b364f990-ad18-4b6d-8b35-800729e0fb87","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":160,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"52d6c228-f724-4bf5-bf3a-3c19947ceaeb","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":160,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"82b37401-402a-42f4-be4c-7882920ac0e6","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s portfolio, or a","page_number":160,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"01710abb-d545-4e9c-a76e-4d3c9d7544c8","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":160,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"0cb3094e-e8f5-437d-9fcc-ac06cc7d860c","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":160,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"5f3f95b0-7beb-4e20-8834-a924c7126f4a","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":160,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"19d3514d-8d64-4b92-9dbf-78354492989f","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":160,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"f4b58fe6-8b58-4d1d-8b36-708efb152720","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":160,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"3a84b9d2-c786-434c-9008-74ac3f9c3f67","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":160,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"0637965d-6a43-4177-aa1c-c97c4743a660","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":160,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"29ea7d31-f4a7-4def-b20a-7dbee242a3f2","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":160,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"9a0a3598-6d49-444c-bff3-326ecf74f0e9","block_type":"box","text":"institutions that participate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":160,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"0ea2af66-236c-402b-b424-d66429074283","block_type":"box","text":"doing so. The Funds’ short-term trading policy shall not apply to the transactions described in this sub-section.","page_number":160,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"ca436cc8-3688-4411-858b-77499b2a7018","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to convert them to cash, you may pay taxes","page_number":160,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"c735a4d9-b1de-43b0-b0a1-9b9b62360653","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":160,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"a33de4af-cbcb-41c1-892f-355b09b38ebb","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":160,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"b10fcd21-faa5-436f-ae1f-24870be63d69","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":160,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"dba2fd95-0762-48f5-9fe8-4e37de989f63","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":160,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"2f7895b1-9dce-432f-9495-96c0f6e838e9","block_type":"box","text":"Repurchase","page_number":160,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"ff00fb0d-d382-42e4-8c0d-bad94778c66b","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":160,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"83f4d668-d81a-4ee7-a5b4-c8f074d5069b","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":160,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"890dd81d-aa49-4f8c-8740-3f534de4e9a3","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":160,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"e9ba9c49-6169-433a-8769-b4690557f6c3","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":160,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"392a58ba-0aac-4a99-b369-fd9c74babcba","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":160,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"30239d89-0fa7-452d-9b98-e38cf9ff2712","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":160,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"71944436-d69b-4f29-97f5-5d803e674e94","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":160,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"a5621f0d-2019-46c6-a540-84e5dd314654","block_type":"box","text":"next business day.","page_number":160,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"0adc9602-48e1-43ab-8620-464ff9e414b0","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":160,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"32143f8a-8b85-4dd7-a281-7dbca05afa89","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":160,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"93dcdb2e-650e-420d-b8ea-c4c83f68f281","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":160,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"0009a6c6-2411-41ed-959c-49ca00ac1d9f","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":160,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"ba531952-6637-4ca3-ad0b-65ed5982836b","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":160,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"484417fa-8703-49f6-a5ab-8412f6334cc7","block_type":"box","text":"redeem shares as set out above.","page_number":160,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"70f95a00-80f9-4333-acc6-ad83b8dd2058","block_type":"box","text":"II-117","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6085d799-0399-468d-8230-0d00f5c7da4f","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b676f96c-383c-454f-9631-912d3f9ced58","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":161,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"65248b91-da01-447a-b363-e0f52ac2712f","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":161,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"8a878210-0d17-4c44-a697-40ddc81432d5","block_type":"box","text":"reinvest all or a portion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":161,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"bbc6b675-0edf-4abb-b9b0-3c865dd7627c","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":161,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"f99da8ec-4a12-4c3a-af46-f56c50592353","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":161,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"ff5b278c-3b7d-493a-ac4b-051e9f10325f","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":161,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"d4854fe0-25cf-4499-b123-0f48a91d1d8a","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":161,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"8f7e256c-647b-4386-8bf3-44709c4695ab","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":161,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"0c01e5ab-33a9-4ad8-8f50-64577b75c3c4","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":161,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"adf7c68a-cad5-494c-bb31-eca1dbb371f6","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":161,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"aa3b41a6-dd93-4ccc-9f17-d4f497fe48f8","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":161,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"28f2354e-8ad8-4aa9-9afc-e04f2d072194","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":161,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"5b788216-3a85-4540-827e-384e329e7a7c","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":161,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"59aaac7c-1a94-4700-a74f-c1cc07d34773","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":161,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"6c2ea83a-fa2a-4d0d-9d09-113c29b2930d","block_type":"box","text":"other financial intermediary. Certain of these services are available only to U.S. investors.","page_number":161,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"49c8fe77-af73-426d-8da1-75b41e1f3228","block_type":"box","text":"Investment Account","page_number":161,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"3b438e28-b5af-4377-995b-5516528626ac","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":161,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"e9c020fd-5799-4a24-927b-16573d7db7ed","block_type":"box","text":"least quarterly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":161,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"991d627c-2213-4c4b-b3f1-878aba6ea5f7","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":161,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"cb8daee5-ef3c-4d71-a819-194b67c351ba","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":161,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"83107f9a-f1a9-4cd3-ae75-fc311f963100","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":161,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"fb533486-94b6-441e-9dd8-d1b3ee6e9c51","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":161,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"2f0536cc-4d1e-4611-a027-453e2d06cb7b","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":161,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"fad49788-d65f-4fa3-bf9e-f4898ad61f51","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":161,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"03746a81-606e-4218-82f2-716af71e7b4c","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":161,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"6c02daa5-0c35-4841-9407-4af70272535c","block_type":"box","text":"automatically at the Transfer Agent.","page_number":161,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"644184ea-4a70-48d0-8add-d93a4b1a1382","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":161,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"64b69079-661b-40e4-80bb-5f103733dbe3","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Certain","page_number":161,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"c5ccb60a-9113-445d-8c1d-5a2a72a802b2","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":161,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"2a8ff952-ce83-4056-8319-283b4a4ee6b9","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":161,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"7264c8a3-aa7d-4582-9e63-abf1e8df78cf","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":161,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"e53a4516-122a-4ba4-bdba-b2734ae4bc54","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":161,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"4afafce1-5ff1-4d0e-a06a-315b25c14040","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":161,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"9835a86e-6204-48cf-96c9-4d9148f82c7f","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":161,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"26bb9c49-5b14-43a9-ba9d-15a3b1605985","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":161,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"020e444d-18ac-4b83-b9ce-6d3ccd4187f3","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share certificates will","page_number":161,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"9e7d29ce-4750-4258-8b7d-3282d508dbd5","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":161,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"7a1a4aa5-c512-4380-9ec2-31ca1ce03f50","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if certificates had been","page_number":161,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"ba549a37-7b61-457d-b544-38684e21a319","block_type":"box","text":"issued.","page_number":161,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"4704e216-2044-4381-9688-64e5ca041a29","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":161,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"9a251819-3f10-41a0-9c44-4a868c7fb2fc","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":161,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"6c6d48ae-3fd4-4dbe-91c3-bbd4cc4c1c2e","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":161,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"91f985d9-7788-4013-a488-c8a028db93eb","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":161,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"0fcdaa11-c171-4292-a624-012bb65a6b4d","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":161,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"e9d9b56c-b062-4a1e-a8c4-673e3fb78b8b","block_type":"box","text":"Exchange Privilege","page_number":161,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"ef9b5468-8d08-43af-afe3-c52156b74955","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":161,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"38f0f8bd-833c-4667-88d2-7395a6cb0dac","block_type":"box","text":"each Fund have an exchange privilege with certain other Funds. However, Investor A1 Shares may only exchange out.","page_number":161,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"edd52a13-d60a-4f54-a8d1-7875dc13b982","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":161,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"bb8fbdaf-6531-4565-8ed7-711a20eb966b","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":161,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"4c565d0c-86c6-447b-a375-618938798ab0","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":161,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"0e9f95a7-89cc-4886-ab4f-9474032ed5c6","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":161,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"681364ed-861f-4e50-9ca8-d8b20f4b7405","block_type":"box","text":"II-118","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8851099b-1998-4457-a38b-c2181a86b39e","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e7b49eaa-ee04-4112-8f1a-a221be4bd3ac","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":162,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"367f13a5-f9b9-4607-93c1-b0fa6fed2eb9","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":162,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"c63d594f-6b2e-489e-83b7-187f2c5e839e","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":162,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"53804455-b591-45a6-948d-2288680e1c19","block_type":"box","text":"Institutional Shares","page_number":162,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"ff097522-08f2-4636-b0f1-43ce4452887c","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":162,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"472a6db3-ea9c-4903-8454-78fafcc94766","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":162,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"c0682046-a62f-45ad-917a-07f3c3536f82","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":162,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"649d5fb7-81a8-4f56-8053-7e79dcc72ef0","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":162,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"d4938eea-13cd-495d-af90-8fb0e451474b","block_type":"box","text":"for Class G Shares of other Funds.","page_number":162,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"e1b8f593-eb75-4b73-875f-12cb267971c1","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":162,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"5edfd87e-ae46-4486-9ac0-55808bccb6d5","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":162,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"4070985f-5bed-47c5-8865-5560790ac55d","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":162,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"a6278dcb-895d-42ba-9ed3-162adc303ce3","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":162,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"a91725d7-8799-44cc-b4a9-9d5838d35d14","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":162,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"e2cd1297-6721-4407-85c2-43cd8c7a88f4","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":162,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"70d4a581-ddd5-4a47-9621-a9dc54a03b06","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":162,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"a7605a7d-4c67-48a9-ac03-903b0ed771f2","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":162,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"c410f686-ce4f-45aa-94c1-4ad762807712","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":162,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"13f9fa9d-048e-42c5-bd44-b8c65a01aedd","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding (“outstanding","page_number":162,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"1f6670e1-4b63-45d6-b0e6-93376346ba97","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":162,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"b0e431d6-2da6-4289-9d12-563fe23fcc78","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":162,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"c9ea7cd9-e649-48d9-868c-21a06cb7c13a","block_type":"box","text":"the payment of any CDSC. Certain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":162,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"d311179c-2a13-4c90-a7b4-bec8db868652","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":162,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"98fc2612-296f-4e0d-9eb9-6423052263cf","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":162,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"b2322c24-06fa-48a1-9dda-19a8bed0a23a","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":162,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"d309af72-8982-445d-8ca6-e2c40266dc89","block_type":"box","text":"Exchanges of Service Shares.","page_number":162,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"24b83e17-b28c-47ce-8ed3-26da38e323a9","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":162,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"aa903edf-1ed4-4187-9bee-1de5052ee14c","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":162,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"19622718-9511-43a0-9621-fb816fcf3810","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":162,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"c0f00da0-fd5e-455f-b970-2b9ffbac4348","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":162,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"666dc9b5-0e64-44c2-bc84-6575a0d8af69","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":162,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"b2478adc-cd6d-49ac-87d2-7c04bd3175ae","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":162,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"7b7c5da1-7bdb-4af9-86cd-555d1b6de02c","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":162,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"99d8ca1b-c0a8-476b-9e7a-bcc88ff9469e","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":162,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"00a765f3-160b-46c7-acf8-c620c52016b9","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":162,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"46b7c775-9b15-4820-9fe9-9511cd4b2549","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":162,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"5575b9dd-4a4b-4feb-9745-7b192ccadcf9","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":162,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"c061c7b9-2181-4cb4-a523-2db4f5ba3dfb","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":162,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"4fdfd407-19cc-4c07-9754-ffa7ef3fd66f","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":162,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"d875dc56-1794-4b21-ad92-9adbd5ee9633","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":162,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"636378a1-dd0a-4aed-8803-e18db512ec2b","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":162,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"261563cf-b901-419f-8a77-413cc2f9edf8","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":162,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"d81737e9-b048-49d8-b5f3-73e72f5a4eaf","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":162,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"8db421f9-4801-4648-9306-5d3055aa89f1","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":162,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"fff655ef-6053-4c22-b097-b044fd0fe9fa","block_type":"box","text":"exchange.","page_number":162,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"7086a92a-5dc8-423b-b04c-261a7b6739d2","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":162,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"a3b627e6-b6fd-4884-adb6-58fd85b2379f","block_type":"box","text":"The exchange privilege may be modified with respect to certain","page_number":162,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"345a79ed-ade9-4397-b616-4c4eef7e9447","block_type":"box","text":"participants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":162,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"0f216c63-bb9a-4199-a651-dbbebcdcd0f6","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":162,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"fb9b0d08-3976-4715-a7e7-2d5178abeb1e","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":162,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"7cb0b204-35bb-4a77-8483-407c3a6aff37","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":162,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"026a4091-426d-43d1-bdd9-2edd645d32d0","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":162,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"53cf4c86-8997-46d9-9d38-1babff8e3a8c","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share certificates, you may","page_number":162,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"8051e0d9-a403-46b1-b394-38357f934dc6","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":162,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"feafcd8f-f4d1-4b1b-a015-8721b306fdea","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":162,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"2edb4721-03d5-4e13-85e3-5f04131b7b26","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":162,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"60775fb6-3809-449d-9648-3392b2f6bc8c","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":162,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"a7352f8d-a14e-4a80-996d-f7bfac769cd2","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":162,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"70f6d4e2-3ed6-4a15-b995-12dc90f429da","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":162,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"20adb8e5-b274-4c46-a884-a7f009dbf9e1","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":162,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"2d0451d1-579d-4b2f-ac88-6185edc2d368","block_type":"box","text":"II-119","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6d000402-9e68-45f4-bcc4-c934e280f5b5","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3f38302d-c769-4c56-b96c-9c173422657b","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":163,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"b2c6cc18-91b4-495a-9c05-0497846b9319","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":163,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"a34921d6-7720-48bb-b8a3-5a559a842f63","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":163,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"8dd4517f-3e28-491e-b5af-2078c9b4797e","block_type":"box","text":"Transfer Agent in writing.","page_number":163,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"181b5c67-922a-46c3-bcb6-ad7495c05550","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being","page_number":163,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"fd0cd1ca-fbe0-41d8-855d-69f6d8a1d5d2","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":163,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"06537d68-44ab-4005-b2d7-db599a4e0ba7","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":163,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"2bc0d302-f0f9-49b7-9123-96229d1cad46","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to participate in the","page_number":163,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"bbc3e1d5-b377-4471-96b0-6a6809bf52d6","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":163,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"62b1c46e-8075-47a1-8dae-36051377b087","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":163,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"5384cc3e-df7a-4ccc-98ba-2ad0b4bafe63","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":163,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"6b9e3fef-e95a-434b-884e-178dafb10c20","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":163,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"05ccbe25-74db-4579-84f5-622a1256b0e7","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":163,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"a4ba3522-4d49-498c-bd00-59181209e9c9","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":163,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"be9b21c1-8ff5-46e3-a5c8-a177b9a40643","block_type":"box","text":"objective, policies and restrictions of the investment portfolio into which the shareholder is making an exchange.","page_number":163,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"aaaf28e0-e709-4976-98e9-6b99828b6471","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":163,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"f9f71c3a-a137-4d8a-b96d-8d29320df08c","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":163,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"a9836afa-1650-4c17-bb95-9c490db562c2","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":163,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"ac8a48db-49c5-4a29-a13d-a55e807bb1a1","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":163,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"eccceeed-d61a-45b3-a560-d1db91e21727","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":163,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"20aa8234-80d3-4ce9-b213-d4a5bd0a6bb1","block_type":"box","text":"do not operate to the disadvantage of any portfolio or its shareholders.","page_number":163,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"66b28686-655e-49bd-995d-b10708de8610","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":163,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"d7e8b3dd-efc0-420b-996e-1fd8155474a8","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":163,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"e71ba135-99b7-4046-b71a-67f64f88c82d","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":163,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"b0bc83a7-00e8-439b-9d04-1061beb07771","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":163,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"53ec3416-9b1e-4bba-a270-291858f9a9bb","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":163,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"87df355d-7661-4821-81ec-70ea35711afd","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent pertaining to such instructions are","page_number":163,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"29921b16-2c6c-4aca-892f-5e349fe3f87a","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":163,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"e5b4a712-ea43-4477-bec3-d503b8af5472","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":163,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"eab8bc00-1dab-4ceb-bf85-b2bfb8433206","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":163,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"216b9d1b-9b7b-4787-93b7-7d477c81ae6e","block_type":"box","text":"Certain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":163,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"dcdad0d8-d4ea-4155-975d-8d988e8403f9","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":163,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"49f4eb0d-a632-4026-9496-44a36e75e9ed","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":163,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"27db8056-f91c-4ada-bb0f-c086b0ebbc03","block_type":"box","text":"may be distributed by the Distributor.","page_number":163,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"154344f8-a93f-42a5-a2cd-e392ec92ea85","block_type":"box","text":"Participation in Fee-Based Programs","page_number":163,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"709327ff-e6b7-4efa-897d-c0bb36f42a74","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":163,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"52829f0f-43c0-4dc9-855e-ea75399f5385","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in certain fee-based","page_number":163,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"3f4b0559-2c39-4c99-969e-3e674191b4ed","block_type":"box","text":"programs in which BlackRock participates, you may be able to buy Institutional Shares, including by exchanges from","page_number":163,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"8056ee24-e1aa-4185-8ccd-3b1fb8cd3c59","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under certain","page_number":163,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"a10535bd-b297-40fe-827a-45f4b6720ed2","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":163,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"e4e3e292-9a57-4dc9-8268-ebb15eb9fb5c","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":163,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"d698eda3-0ba7-4093-a9c3-2e1efa3b4940","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":163,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"42ca5ecf-4d8d-44c7-ad9d-eed402f37305","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":163,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"58f6ba3a-bdc6-409d-b3a6-f4e188adfc10","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":163,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"ab20fae5-5dba-407c-a28e-52c0ee9a7167","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":163,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"13a5e547-02b4-482c-8a1c-9af2dd2360f9","block_type":"box","text":"an account. In certain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":163,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"8a8f2341-ad61-4938-a403-9c1fc7a9b11a","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":163,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"77975d0c-3b0d-407a-95e1-9c402b413a68","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":163,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"4341ee11-d7f6-4e04-af25-b68c5b15385e","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":163,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"e6fee6f3-32cd-48eb-baf4-a3e38bfc0e2f","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":163,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"ded29b9c-f3bc-4bc3-a580-283795e189ea","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":163,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"53f4715a-2c15-453e-8820-2bea89bc7630","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":163,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"d6e5275c-9810-40f8-94b6-5b098317c6ba","block_type":"box","text":"II-120","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5f6e02e6-877b-405d-9765-0e213792fcd8","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"286cacc5-19af-477e-bda0-d7a90ec6f42f","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":164,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"8114abdc-ef40-4073-9ded-bd2236280e73","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":164,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"7e627e9a-4ba5-426e-a0f3-3f92622da7a7","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":164,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"667b0847-869d-4be2-bbda-42c1e4037e7d","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":164,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"a8a5249e-3c75-4c17-a779-a2eb1def793b","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":164,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"7d0eb0a1-bcd0-40a8-b548-a30e2e01efd5","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":164,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"432ba4bb-5898-4791-b553-017a1e35358a","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":164,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"a191ea6b-4c09-4af7-bc11-0c0f3f3b795e","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":164,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"27229968-2702-443a-8b18-d0f64411df89","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":164,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"04b6347c-869c-4831-b37c-edde4909bbcf","block_type":"box","text":"information.","page_number":164,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"7bebbee8-e881-4647-b810-4b351fad91ec","block_type":"box","text":"Retirement and Education Savings Plans","page_number":164,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"dae1e54a-baa7-484f-b50c-88ba34028dba","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":164,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"033ec033-ac66-48bd-a537-e75a73f81df8","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and certain of","page_number":164,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"a20a3c47-cdf1-4c55-bf77-cbb85b8e9844","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":164,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"9bbb6544-3313-42bf-aaad-74cce2d90643","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":164,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"828bbce4-e31d-4a6f-bb88-c782d9e76c02","block_type":"box","text":"your financial intermediary.","page_number":164,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"49201df1-2e0b-40b7-9f0f-6c984e5b14ec","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":164,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"4a8aa208-0599-4938-80f5-a72b596139ad","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":164,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"38b6b27e-a2bd-4d2f-8dfa-15cbc92f4cce","block_type":"box","text":"distributed as well. Investors considering participation in any retirement or education savings plan should review","page_number":164,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"ab74217d-a2ce-44ad-9439-73c627c09a23","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":164,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"3986ad88-6e27-4fbc-b56f-f3402bd7e9b3","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":164,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"76572308-b082-4fd4-8040-72519fc8f6e7","block_type":"box","text":"Automatic Investment Plans","page_number":164,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"8d1705e5-d79e-46bb-8a39-02ee83eba6db","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the Compass","page_number":164,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"eab71a58-7407-4caa-936c-20dafeb526ac","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":164,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"d5896478-9c53-475b-98b7-110f8fc5de71","block_type":"box","text":"®","page_number":164,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"ea49d01a-5093-4840-ab2e-98c75afc286f","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":164,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"17516199-0c4c-4eee-b706-3d9536468927","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":164,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"6f0a1101-f265-444d-aeb4-bc31c014a571","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through certain accounts, no minimum charge to","page_number":164,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"1b275800-f9f9-4a6e-a3de-5efdc5908939","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":164,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"83d52e34-3b37-40d2-8fc2-6b4f778165c5","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":164,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"d9185794-3152-4c13-900a-91ae4cc2acb3","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":164,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"65d37c07-343d-49b4-81ca-c6bfebfc4573","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":164,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"d4504418-a8ef-4cfd-b6bf-364acb57d5c7","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set forth in a","page_number":164,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"24efe6de-0e4f-4368-b424-9e491b7f44f2","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":164,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"6680a2b1-22ee-4b6e-ad35-4fc1d9d81977","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":164,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"4eddc919-42fd-4ac2-842f-018c0c125574","block_type":"box","text":"Systematic Withdrawal Plans","page_number":164,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"a03c1d20-d00e-45ab-a994-4bf357c016b5","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":164,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"84b0c481-df0f-4dbf-ba2a-5a8ae3015672","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":164,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"f5783ee3-2002-4fc9-99db-c0cb31dfcd77","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":164,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"f8e3df4c-0579-4f3c-a100-1a1e4263d317","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":164,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"d15977df-9132-4068-b7c6-caed568dba39","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":164,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"78c27400-4ca7-4c4f-a1f0-09bbc21a64c4","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":164,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"f4cf3bba-e251-43dc-8a7a-e15cc02427ea","block_type":"box","text":"www.blackrock.com.","page_number":164,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"c76172bd-91eb-4ce1-801c-1e0abe7844de","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":164,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"c647a7dc-1500-43b2-9f04-c666ff7730a0","block_type":"box","text":"will be depleted. To participate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":164,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"f32b82e0-6185-4d6e-9409-0864ab6c2c13","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":164,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"3c256f44-02f4-4f52-8cae-fb5166415490","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":164,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"0997df83-b927-44e4-bb4e-88bba1ff4e6a","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":164,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"0089fe7a-21e3-4409-95d8-b72a88fcaa31","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":164,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"a9d7c5e7-29bc-4408-8541-9b2a6e2fb455","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP redemptions of","page_number":164,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"71b077ad-0e36-416c-93f5-2de824de9de7","block_type":"box","text":"II-121","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"05ecd00d-705e-41b3-9ce2-4c059668a2c8","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6e4a427a-a50d-4996-9449-45071426d457","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quarterly) and 6% (semi","page_number":165,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"699def67-185c-4981-bccf-690ee8d4ba9b","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":165,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"51132a3f-c7b7-4d72-b941-ba66bdfa0513","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":165,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"b03132d1-d2cd-4563-85cd-48c324832289","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above (see “How","page_number":165,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"5b054e3f-0183-45eb-87ab-76dba12984e9","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":165,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"ba327888-543f-4aab-a454-0238a11d1cff","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":165,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"d8c2449f-6951-4b73-8f18-818423001a59","block_type":"box","text":"Dividend Allocation Plan","page_number":165,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"13e1b95b-af7a-452c-856d-d42057d0c9e8","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":165,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"059252bd-b36e-43b1-9e60-c66d978b0b6d","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":165,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"7035dff7-4fb7-4126-a5de-8ff5658998ff","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":165,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"e0325918-c364-4b6f-bcdc-197448fd4f79","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":165,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"962e09d5-ccdf-4b20-b6d2-7eb6bb463a01","block_type":"box","text":"PRICING OF SHARES","page_number":165,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"2a61dfd3-0d8f-4f28-a3b2-9763cfeb5d3c","block_type":"box","text":"Determination of Net Asset Value","page_number":165,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"40bf2f06-5122-46a6-8f60-92d49c4a39a6","block_type":"box","text":"Valuation of Shares.","page_number":165,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"8b3ef36b-830f-4256-af0c-5c97ed71af9f","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":165,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"ca6488ea-288c-4da5-a274-e7819c39dcce","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":165,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"bcc26e55-350c-4fb8-9bf4-edbae55ea89f","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":165,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"326e9ec4-5292-47ae-8cbd-88938597997e","block_type":"box","text":"Equity Investments.","page_number":165,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"7626ac69-a4cd-432f-97a7-7aaa42a6faa9","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":165,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"5bd6a50d-59e8-43d6-bc96-9712024477ee","block_type":"box","text":"e.g.","page_number":165,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"fd10f23f-c7e8-405f-8c41-8176631a8ba0","block_type":"box","text":", NYSE), on separate","page_number":165,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"5a8fb557-5356-41c5-9e85-ecd32aabdd87","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":165,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"db9ef281-f9a9-40f4-8ed3-6c7389834811","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":165,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"975f7b1d-767e-489e-81e6-f41b2d003571","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":165,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"393b20fb-aaf7-4283-9eb7-0a0bb32aa94f","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under certain circumstances,","page_number":165,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"94c4eb89-6c22-4438-9954-f9d191b9c5df","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":165,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"890474d7-787c-4ef3-ba03-5d5c61d8f50f","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":165,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"dfceb497-9660-4a2a-bf0f-045737f317a4","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":165,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"89cb8de9-5228-448e-b16a-aecaeff0808f","block_type":"box","text":"last bid (long positions) or ask (short positions) price, if available, will be used as the value of such security. If a Fund","page_number":165,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"70513cf2-18a0-4037-9f15-7ec9e7e06441","block_type":"box","text":"holds both long and short positions in the same security, the last bid price will be applied to securities held long and","page_number":165,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"0a7f4e05-6825-4e9f-a801-7407e64bbcea","block_type":"box","text":"the last ask price will be applied to securities sold short. If no bid or ask price is available on a day on which a Fund","page_number":165,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"840ec57e-6297-40a5-8cb9-ad0063397a11","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":165,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"01fee51d-bbed-4ff8-91c0-6d5029cc205d","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":165,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"0757a2ee-ffb8-44f7-879e-6fa412fcce97","block_type":"box","text":"defined below).","page_number":165,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"2b604482-008f-4c8e-92db-db034d8c8135","block_type":"box","text":"Fixed-Income Investments.","page_number":165,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"44b25606-03d2-4617-90bf-ea712dffae91","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":165,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"7f4e6df9-f226-4b8c-b371-938910ee23b8","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services, each in","page_number":165,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"7bd8edc9-474a-4dae-b6a2-65b8a74f5ff3","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize certain inputs","page_number":165,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"51862c61-e634-4d85-ae76-d01faa8187a4","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":165,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"4014a576-afb1-4f09-8f5c-12d3b883d6a4","block_type":"box","text":"e.g.","page_number":165,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"b3b04787-7504-4ff6-8d7b-18b6ca74e338","block_type":"box","text":", recent representative bids and offers), credit","page_number":165,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"43990fed-5aa6-4c2f-a390-9bb6bc504cf2","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":165,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"88065fa9-6a07-470c-8046-b4fd51c4b156","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":165,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"78123680-6438-47f0-a9ba-ecbcf4ac93bb","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":165,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"e46a47fe-c451-4b5e-9829-32042d93e611","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":165,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"69ef2cdb-2ab8-4380-bc1c-87eb33994f97","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain asset","page_number":165,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"1fa68010-f990-4f08-b5a3-b87fe57051d4","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":165,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"0009d345-5683-4660-8cf5-9eece1cfaf70","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amortized cost method of valuation may be used with","page_number":165,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"7282120e-42b4-4fcd-8af9-65928765ed21","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":165,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"e551e631-e1b2-4445-b670-dc59ec3ac59c","block_type":"box","text":"value. Certain fixed-income investments, including asset-backed and mortgage related securities, may be valued","page_number":165,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"b7c8fa3c-7749-47ca-ad2d-07f5ebf65cf4","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":165,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"15f62679-995e-4820-8154-c47329646e76","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":165,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"8a0920be-f654-4738-93a6-a60c70770557","block_type":"box","text":"attributes of the tranche.","page_number":165,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"1bc42896-8eaa-4c4e-8365-4b9f16ebf2de","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":165,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"4aff103e-9282-48ef-9e97-446785cac865","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":165,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"3cba26cd-99f8-42cb-bbd1-d9d0fa4c1f81","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":165,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"a9b561a4-c8a5-4c0f-97ca-8b9bcfe0bb0c","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":165,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"f045d226-c460-4147-9854-ebdbbca9ec86","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":165,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"fa8481a2-596a-49cf-9d47-ea5bcf61a6e1","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (short positions) price, if available, will be used as","page_number":165,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"e79e4a62-0bf6-4921-a60a-86c69fdb64aa","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":165,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"9a558da6-0936-43a6-a449-4f66ab9d2bb9","block_type":"box","text":"II-122","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"46734dc2-7189-412f-b168-6a35b34b46ca","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"168ac721-185b-4835-ba5e-14819146fdec","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":166,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"7484b244-ddc8-448f-b5c5-d4f268956e7b","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":166,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"a69386b5-ee07-475d-828c-caefdec3c588","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":166,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"a673835a-e78c-4542-9d9a-0938d7346073","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":166,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"b8c54462-37db-44d0-b3c2-2bfb82587d44","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":166,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"d51a084e-542a-4e8f-8ab4-9c0b96ce1bb0","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":166,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"ff90dba8-75a3-4aa2-9be7-c638aa0402c2","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":166,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"80efc86e-9702-47df-8a9f-6ec23fed1883","block_type":"box","text":"Underlying Funds.","page_number":166,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"0e16fc29-573c-4f80-952e-ec9969a42905","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":166,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"924318d7-1fae-4773-b956-c74bf1dd5fdc","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":166,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"e1160b37-beab-4140-b1b0-ac6a4b2fe248","block_type":"box","text":"at their most recent closing price.","page_number":166,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"ec321c73-ca03-4688-9b33-d71fbe04cb4f","block_type":"box","text":"General Valuation Information.","page_number":166,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"df8a6bb1-b15a-42d4-8459-b8d292bcc2f1","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker-dealers or","page_number":166,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"fe3067df-ddc1-435a-a9a2-9587ebb356dd","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":166,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"6f9f6868-a488-4b18-a740-e8a6b481ad0b","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":166,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"581aa236-c46e-4b2b-bb9c-ee43d4f49ee3","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":166,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"d8ebf990-3461-445d-9687-8a9138472d74","block_type":"box","text":"applied prospectively. Such determination will be made considering pertinent facts and circumstances surrounding","page_number":166,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"cbba858d-6355-451c-8b40-df83d5cfa511","block_type":"box","text":"the revision.","page_number":166,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"8bdb9f34-dd25-4a88-824b-f7ffbb3a55c7","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third-party pricing","page_number":166,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"f38ee630-c997-493a-9306-f6b2055b75d0","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":166,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"55c8073d-30df-4efc-9cbc-d4e62af9451c","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":166,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"58b1569d-45b8-4ba3-855f-c85edca4596f","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":166,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"0ca6e156-3548-492d-8378-0ac2e8672edb","block_type":"box","text":"price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation","page_number":166,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"d12047fb-25a0-4be6-a9a8-c1804934ae96","block_type":"box","text":"of the investment, particularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":166,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"3de081ef-4b00-4c05-b5ee-093c350f48cc","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":166,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"b32f3c56-a649-4945-93e8-89a4949a6214","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":166,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"bd7de9ff-58ce-428d-a21d-0820c5c3b597","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":166,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"d07e5323-d17f-410b-ada0-ee89c496eb21","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-party service providers.","page_number":166,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"8423fc3f-9124-43dd-908a-e78c4a14aa8c","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":166,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"011010ef-0750-4a71-ae8d-3ea7b06391e0","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":166,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"6f6051e2-c5f4-4326-9f68-46934b19a4e6","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":166,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"c3115b0f-984a-4df9-8ec1-7cfa2323c43e","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":166,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"e95b7014-7114-4a56-ae01-3fe91b5688cc","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":166,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"3fac0aa9-095d-4cbe-a0ba-3b9ec18d74f1","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":166,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"a6bb3a41-8c4f-467c-ae04-da6db75758f7","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":166,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"441f107f-5cc5-43e2-a106-2f63573628e1","block_type":"box","text":"Certain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":166,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"f271e821-a066-478f-bbb0-98c4b36b08f7","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":166,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"1cbcd6e8-ce15-4cbc-9955-d8dde9ff4174","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":166,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"0b33a679-1513-4922-ac17-5446db766f6a","block_type":"box","text":"Fair Value.","page_number":166,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"d913f2e3-e26f-46ca-9712-071bc2ac4f75","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":166,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"2ff1d30a-fb65-438f-95fc-570495bc22ab","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":166,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"802a5bec-6c52-4d24-a163-f94c0cabd6b4","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":166,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"de234004-7d33-4e74-abca-34f599bdf14f","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":166,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"ecf6b1b0-b6c7-48d8-a177-ff434ef17a02","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":166,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"c689f7f2-af7b-44ec-b72b-ddd1de88e3a4","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":166,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"0b30d964-47b6-49d2-b98b-a8816826a8e3","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":166,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"d109a648-c0d6-4ffd-ba7d-b3a78a4651e7","block_type":"box","text":"(","page_number":166,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"123ee3c7-626f-4ebd-9c42-ef6877b0e4ea","block_type":"box","text":"e.g.","page_number":166,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"b2e94d74-179e-4ced-b389-2b2a362515d3","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":166,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"a685a0dd-4da9-4aa9-b2f1-b3b760ee74d2","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":166,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"1419944c-55a9-4f92-9b6e-4fcbc823b0a9","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":166,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"9dfe9910-295e-40a5-913c-a36145c78e0d","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":166,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"73742090-4483-4170-b328-d4b81556efb4","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":166,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"9eaa1eb2-a6c9-42b9-9330-42d9b6fa72c5","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":166,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"292a69c0-27f0-4e41-98be-3ade914d7b9a","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":166,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"99dcff57-0f86-43ba-8646-b81c4b5ea53c","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":166,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"8d5c24e3-154c-4e11-9e83-a383ecb6784c","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":166,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"af2171e7-e1d4-428b-8244-f9cd7d2198f4","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":166,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"9ec0e4a6-ec0f-4ddc-a5df-5d600e4a50e5","block_type":"box","text":"be treated as a Fair Value Asset. For certain foreign assets, a third-party vendor supplies evaluated, systematic fair","page_number":166,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"4f2a2526-a59f-49b5-be4a-45f85c2345c2","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":166,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"d22da2ef-f5b9-4697-ab3d-ef4e31503a69","block_type":"box","text":"II-123","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f83372df-a5ff-4a4e-ba90-5c89d9159d9e","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a94d578f-9350-442e-99f4-a59eb6640f82","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":167,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"5764addb-24dd-42df-9c57-0cde5a3df14d","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":167,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"70df05ae-0e6b-422a-957f-8cb9fb1508b5","block_type":"box","text":"pricing time.","page_number":167,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"8f43517d-f95a-4cd9-8b21-8cd29cacc033","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":167,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"8b586adb-1137-4af9-bdcd-27c6b867ee38","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":167,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"c63ca1fe-3ba8-41d3-9ba0-5b6a56c4a4e0","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-party pricing services,","page_number":167,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"de715aa4-8b73-446e-a557-ac59e384dac4","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":167,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"29f48246-2a1c-45ca-b71e-c70c28c55ff9","block_type":"box","text":"assets and liabilities of the Funds.","page_number":167,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"f8332a54-7f81-4161-815b-45bead2d4a46","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":167,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"0c6063f0-4591-4f54-8f5e-ab04383da655","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":167,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"c533991b-c441-407e-b5a5-c777044442b9","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":167,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"cb1545f5-ec4a-4945-9a8a-c8da4191e7f8","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":167,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"56bc94a2-670a-470d-b070-368db74df429","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":167,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"6aa40668-24bd-4ff9-96e3-349ccd7778ea","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-party","page_number":167,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"2041c8a8-60ce-4a2e-b90e-c07d9f00ef53","block_type":"box","text":"valuation models.","page_number":167,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"b72a6068-fc09-40fe-87ec-177816ff4ea3","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":167,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"cedb613e-55a0-4499-8ec9-86d210a6965a","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on certain factors, including","page_number":167,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"e7805998-9df5-426f-bb64-faddfe2934b6","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":167,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"52126207-9762-4706-888f-9088a4845349","block_type":"box","text":"alternatively, using proprietary or third-party models that may rely upon one or more unobservable inputs. Prices of","page_number":167,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"914751df-222f-45fe-a8c0-02ef23b77f97","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":167,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"7a19dc4e-e4a3-4467-be48-fc146787ac0b","block_type":"box","text":"appropriate, an appraisal by a third-party experienced in the valuation of similar instruments, may also be used as a","page_number":167,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"0825b4fb-a260-439b-b888-bb62fca5bc88","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":167,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"bbd8b61f-1218-4c8c-af2c-5040f6ddea74","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":167,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"ccb63550-8f4e-458d-89ca-d2901674e8ef","block_type":"box","text":"liabilities could have been sold during the period in which the particular fair values were used in determining a Fund’s","page_number":167,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"b4bf0e11-5827-49d2-a82d-723a666f76c0","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":167,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"8b1fb9c7-30f2-4715-ba76-21be2e9666eb","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":167,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"a6b94d7c-4bc0-4d71-ba6e-24decedb14d8","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":167,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"76e7ec7d-fb05-4b29-aa97-dd3691851a93","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set forth in","page_number":167,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"a2241418-3ba5-43e1-a878-8807fa139afa","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":167,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"63bfa195-6855-47b8-89e0-40d01a0e4bb3","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":167,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"a5c193e4-6232-4102-b722-6cbb979a80be","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":167,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"85cfc519-3461-4bad-b5c5-24b0778a4dd8","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":167,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"1c6a8de5-739e-4cdd-988e-d2318c7bccf5","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":167,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"e57251b4-4cba-4558-b13c-4184174199eb","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":167,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"aa6c36fd-414e-4571-bbbd-4a4d9ba1756a","block_type":"box","text":"increase the cost and/or reduce the availability of third-party determinations of fair market value. This may in turn","page_number":167,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"61140042-92fa-4991-8c44-1e9964ae8c52","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":167,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"27ec71ee-74ae-43df-8796-5cf30c23a5e6","block_type":"box","text":"party determination of fair market value.","page_number":167,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"987be19a-bd91-4a7c-b855-b8771315d4f2","block_type":"box","text":"Computation of Offering Price Per Share","page_number":167,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"4f1105f5-0436-464a-aadd-934764bf78be","block_type":"box","text":"See “Computation of Offering Price Per Share” in Part I of a Fund’s SAI for an illustration of the computation of","page_number":167,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"16b1bc52-b663-4435-b0ff-9190d2fc94a6","block_type":"box","text":"the offering price for shares of your Fund.","page_number":167,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"e144baf0-28e7-4243-85e1-4afb48373c0a","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":167,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"bedf921d-0fae-4c3e-ac4e-df97e730d5b6","block_type":"box","text":"Transactions in Portfolio Securities","page_number":167,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"f96c5cf4-3c8c-41e4-9495-de86b2410cb5","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":167,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"f3395d65-e589-4294-af60-2184c5f11fa7","block_type":"box","text":"a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":167,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"7b93df8f-04de-493c-9ab3-f2bcb89038be","block_type":"box","text":"particular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account certain factors","page_number":167,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"24dbed1d-52b4-4108-99c8-6477d5c212c6","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":167,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"e7807bde-a7f0-46dd-8c51-f504817023b0","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":167,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"fb9aa057-290d-4c93-a0eb-e783a2fb6767","block_type":"box","text":"consistent with obtaining the best price and execution in particular transactions. Subject to applicable legal","page_number":167,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"b9bfeaee-f3d0-47dd-8da9-da31355be9ca","block_type":"box","text":"requirements, BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":167,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"613e2356-5c92-4afb-8a21-a7255a0c9b61","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":167,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"4dd49146-f3c4-4142-879a-069b96dcad31","block_type":"box","text":"II-124","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"29623150-43d8-4ff3-8455-6072e0ece723","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2152ab92-1972-4330-9ab8-55d82c49bf78","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":168,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"1070ab40-3ba3-4c33-8d59-2dbb51831fcc","block_type":"box","text":"reasonable in relation to the services provided.","page_number":168,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"d34cf503-eba0-4816-8000-dadd018dd091","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":168,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"4b98bdae-5cc8-4b58-9989-b8c039712c0f","block_type":"box","text":"Master Portfolio, it is expected that all transactions in portfolio securities will be entered into by the Master Portfolio.","page_number":168,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"41b91056-65c6-4cfc-9625-a3cc0da26192","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to obtain","page_number":168,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"e0a4bb96-0397-467e-bdec-a3f898f57426","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":168,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"a22273c0-b538-417c-839b-649ee6745c94","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":168,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"e4a740d0-77b8-4470-bb04-497dac5eeb34","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":168,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"4949de46-4fb9-4622-97dc-885563407089","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the particular security or instrument,","page_number":168,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"10e153b4-7747-4ed3-93c4-c43c37c405d4","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":168,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"be71d620-88bd-4d19-af35-9290a15bccf2","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":168,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"03962a59-fd2d-42f9-980d-dfb60fd1f8d5","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":168,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"138f7f2a-97b8-4853-bec4-4e0dec283694","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":168,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"731f50fa-5a95-434f-94d8-6eebcc5bcd09","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain circumstances","page_number":168,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"e5d0d875-6211-4393-a63b-a617d04fa3c0","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":168,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"74627e6a-0e32-491d-a3d4-9e72eeb6fbd2","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":168,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"7a6e0030-183f-4f77-a686-a3c36f836ed6","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":168,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"77e016dc-96c5-4926-9582-fb6b883135f7","block_type":"box","text":"principal transactions under certain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":168,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"eb1e9c9a-2143-422c-b476-55bb30f2f959","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":168,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"7255b0fb-fa57-45c0-b898-c3766781c0ce","block_type":"box","text":"performance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":168,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"809ab541-37b7-4313-a95e-045d773e2014","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers,","page_number":168,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"341b58b1-fa13-49e0-81eb-37c1b211a547","block_type":"box","text":"industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and","page_number":168,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"9acce2d3-3cbb-47d0-b83c-208269ed2e9f","block_type":"box","text":"(3) effecting securities transactions and performing functions incidental to securities transactions (such as","page_number":168,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"26da8d7b-e7b3-4021-b2f4-daf4dc7c74d9","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":168,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"2fa9f49d-7cac-48b2-bc75-4bc6b544442f","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":168,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"c76f75ac-a40f-48ba-93d2-28e8132944a8","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements under which","page_number":168,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"067b3d44-0310-4794-a154-cfaf3a829f8a","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a portion of","page_number":168,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"401d09eb-ed46-4b36-af72-70614934a873","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":168,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"3bad06a6-87e9-48e1-8cfa-3b1e025d17ab","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":168,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"9247a854-01c7-48a1-b12a-55acdce9865f","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":168,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"868431a6-7431-48de-9d33-adfd2502f21a","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":168,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"bf9ac99b-53c7-41c9-8d26-f5e326c34b4c","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":168,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"c85ea961-22b3-45fe-82c4-21e23a535c6e","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":168,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"05b2c4a1-98fc-4e17-b189-47a753682ee0","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":168,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"07c0103a-7c4b-4b95-b794-91a72e16076e","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":168,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"f7180fe8-a2ae-4625-92a4-a9decca884c2","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":168,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"fd3eb5c1-a7f6-4b0e-9014-e93915a5038f","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":168,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"5ebe3f6c-e8f4-47a8-a29c-55f96696231d","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":168,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"77875069-d1ee-408c-be74-b17a727ba33b","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-party and provided to BlackRock by the broker-dealer)","page_number":168,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"465056e5-0592-41db-838f-c5270f2190c5","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":168,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"cde308e4-fed4-4b8e-804f-aea8f01c59f7","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":168,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"ea307948-ac64-4327-81d8-cd67385b8a57","block_type":"box","text":"portfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":168,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"8a243627-4e6f-4912-a172-07905203623b","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":168,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"a009eeaf-5285-4a7f-b5e3-849b6c3a6736","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":168,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"173160bf-4eed-4d81-8081-fd33ab86b9e5","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":168,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"0f26733e-9ce8-43b3-bea5-2591a1796b6b","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":168,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"de843c4b-a19f-4432-a23e-9e0652deab56","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-party related research and","page_number":168,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"6c41207f-6849-490a-b10b-1963937bcfb9","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":168,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"9780d448-d168-48e1-9d38-8c6214876cf6","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":168,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"886e4ec2-a7e5-43cc-8b2a-8119d200112d","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":168,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"611aa61c-6cf9-4cad-813e-5d5c8654aebe","block_type":"box","text":"particular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":168,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"e530b740-0189-42fc-8970-c95f760424f2","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":168,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"8ab0521a-bfcc-44b8-ba38-78bf3c6601e0","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":168,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"0f0ec14d-eb91-4076-b72f-abf487e103a6","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":168,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"28ea5166-4c3b-4281-8aaa-52c8dbd62513","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":168,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"93c3c261-c262-48f8-b26c-6451d8feedcc","block_type":"box","text":"II-125","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"af1d0103-da25-44ca-a246-cd38d96eca2a","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e3583604-c35b-45d4-8ead-8e4abcba9576","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":169,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"2d513abb-7c69-4b01-bcea-6a7f827a260c","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":169,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"dc96d0f4-d7d2-463d-83f0-601c67663060","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":169,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"93bdd376-1953-49fa-89a5-c5d6990a6132","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":169,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"6cbc2516-6cbd-4ee8-8fcd-042e1875153e","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":169,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"bc6117aa-1ff5-451e-b001-fb3c334cc796","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":169,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"a229d240-7d93-4bf2-803e-024143342ffa","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":169,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"9d83d446-e55e-484f-8d97-a738e9206692","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":169,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"c4e29a90-33cf-4c3b-93a8-acf7e68cb6ef","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":169,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"e222521c-9519-4ce9-8780-b3eedfdaec47","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":169,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"bed2face-7558-4717-b992-721063894d5d","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":169,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"318966e1-08fc-4d64-9d5d-621686b84a46","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":169,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"c25f2e42-6e97-48aa-8588-5470e6757697","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":169,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"b4147fb3-ef7d-497a-97ee-cac59dfe0b8f","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":169,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"b5597ce5-b32e-4422-a079-a8b5037d6750","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":169,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"9b1bb6dc-ade9-47a6-9a43-533e3ef8531c","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":169,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"2e70fe92-3f89-4693-b450-4ad5f67f2bbe","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio with respect","page_number":169,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"0f69e1bc-0aa5-4dcb-b450-d2387a20b22b","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":169,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"41d1ef0f-f46c-4c62-9105-8caf70292058","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Portfolio, BlackRock","page_number":169,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"62eb1aa2-aea7-4b02-884d-6a5213d5cbed","block_type":"box","text":"is primarily responsible for the execution of the Master Portfolio’s portfolio transactions and the allocation of","page_number":169,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"d85559c9-4b4b-4b30-934b-1406715ed848","block_type":"box","text":"brokerage.","page_number":169,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"f6fd0d2a-9afc-4eb0-b3c7-16fd4abbd002","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":169,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"4386732c-4e78-440a-a864-ca2abff51fe7","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":169,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"6fe32b74-3118-400f-a7d2-6ad5d6210a2f","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under certain","page_number":169,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"39da9257-e440-42a8-8a4d-e72e59c81ca3","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":169,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"a989a586-8d81-4f76-8024-41d4f777002f","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":169,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"614e854d-3d14-48ed-a093-4c3493baf7a5","block_type":"box","text":"Section 28(e).","page_number":169,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"5102b96a-8583-40c8-ab1b-eb35f1fd2276","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":169,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"cdc321fe-cdf8-40e6-b951-ebc5aa1ff5af","block_type":"box","text":"brokers or dealers to execute portfolio transactions for a Fund; however, whether or not a particular broker or dealer","page_number":169,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"4e4f7875-12af-4c1a-8ae6-05d73f5862d9","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":169,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"4beca792-ddb0-480f-b898-eb5f018f5918","block_type":"box","text":"execute transactions for those mutual funds.","page_number":169,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"714d8059-ee21-4ebb-9fe8-05e9e67821ff","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":169,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"d2d43303-b151-427a-9546-8f53db1da08a","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":169,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"fbcf56ee-345c-4eab-b0e7-cae4b8c81bf8","block_type":"box","text":"in the form of depositary receipts, or other securities convertible into foreign equity securities. Depositary receipts","page_number":169,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"e8fa083d-05d9-4641-aa7e-83108358e569","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":169,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"a5efd382-4f1c-4977-9c63-db89f1bbfcb7","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":169,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"aa2c8be5-a4f6-47f6-bef9-6fa85eab0632","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":169,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"9eb399e0-ec75-4b1f-a9da-69d1f8219096","block_type":"box","text":"intends to manage its portfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":169,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"b3be5402-cbf3-4d20-91c3-a09c452c928c","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":169,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"30b1a9fc-b89b-428a-a5d7-d3710a5c6285","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":169,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"d88ec5d7-189a-49c0-9cd2-c6c88964149d","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":169,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"919d3a79-f996-49f6-a8df-0c02f71c505a","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":169,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"9fdc0be1-93a1-49cf-907d-c4d06badf184","block_type":"box","text":"Each Fund may invest in certain securities traded in the OTC market and intends to deal directly with the dealers","page_number":169,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"93b8e26c-2205-41fd-af89-704c997bee8d","block_type":"box","text":"who make a market in the particular securities, except in those circumstances in which better prices and execution","page_number":169,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"77cfbb84-6370-400c-aa42-0fc7c8b6c6af","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":169,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"a3b36c2f-af27-4a94-8ddd-6aae5897c40a","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":169,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"6fb139b8-31d2-46a6-b9ff-a6310d7472d0","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":169,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"2efba338-2db2-4af6-a1ca-b77f4836552a","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":169,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"1b8a4382-0f11-4936-a329-03d1cd3d9aa4","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":169,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"c34a736d-f645-4dc1-9284-603d34d2f5ff","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":169,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"f4e65182-d372-4f21-99f1-98e79d51af05","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":169,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"003a288a-0380-49d0-8ecf-163fe2401f88","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":169,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"664a67db-2f7e-4d3d-8a32-d231b6cb7cf0","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":169,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"0c06eea1-bdd8-40cf-946b-fa3b07d811af","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":169,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"746a76f9-7cf5-4ad9-8dcf-5afb99852ff6","block_type":"box","text":"II-126","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"233fd02e-cb7d-4027-a07d-f33ad2ae2159","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"134d1a28-7dca-4398-a051-526f83030357","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":170,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"d1b9ef0d-7331-4bbd-857c-fe78d72fd70f","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":170,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"59ab8f11-cb75-493d-97f2-72420aaefeb4","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":170,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"2ee3a958-973b-4840-a5a8-0482cbc71dac","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":170,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"d5ed58fa-ea44-46fb-8390-4d9497d1e5ad","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":170,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"ccd9aedd-0a76-41f8-8116-850924725b12","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":170,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"2d64e619-bb73-42da-8ff7-575621b0053b","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":170,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"3b200f62-75b4-46ee-af86-dfd7ec620ace","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":170,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"88ea3efd-d28e-4229-8c57-3f6d99bad3cd","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":170,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"7d5f48d3-48b7-4f54-890e-fb2674654ea3","block_type":"box","text":"with the rules of the Commission. As a result, the portfolio turnover rates of a money market fund will be relatively","page_number":170,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"aa77d8a7-fab1-4a79-adb7-2a7cd08b4f7f","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":170,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"51a20fdc-6f7e-472a-8962-9fcb47ecb4e9","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":170,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"d0cbd75b-5e96-456c-96c7-97abaf5b55eb","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":170,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"69343c01-420c-47bd-907e-3d76e3730b07","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":170,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"3a85ca40-6d84-46bd-91e9-d2ed3997869c","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":170,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"93043d8f-46b9-454d-968a-1626f06e6492","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers","page_number":170,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"eb78c405-d469-4a37-8389-a8e80536f084","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":170,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"b212c0a3-2db3-45ea-a57c-0bbdd3368ece","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":170,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"2b4320da-ceb7-4ed5-8fc7-8ff643fe07d6","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":170,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"689b9c2b-a0be-48e0-8871-07b27f9f5043","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":170,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"071e76ee-31a6-44ed-92eb-7790958c45c8","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":170,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"c0bfd8f7-93ce-4bbe-9f3d-21304456a45e","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":170,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"172d5232-b998-4d76-9bc8-cd985c0e9c53","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":170,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"a4a3888d-4b53-414b-b8ab-4b55cc477119","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":170,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"6779c2a8-cc77-42bb-ba62-1dfb3414fdf2","block_type":"box","text":"These factors include: (i) investment objectives or strategies for particular accounts, including sector, industry,","page_number":170,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"817a196c-feed-4dbf-8961-ac7201fd37ee","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":170,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"c687bc6c-1979-477f-85a3-3b0beb1a1b9f","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":170,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"0756d477-07e5-4e09-8486-078f8c54dbb7","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":170,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"3a21c3dd-2acc-4ed6-add6-63283c53600e","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":170,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"9662d60b-0443-4ac1-80cc-ba68d0e38f83","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":170,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"cb43805d-7c0d-41e1-b24b-b87181301453","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":170,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"d06442c6-8002-4897-b8ec-72047a4d066b","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater performance compensation to","page_number":170,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"f83ce3cb-dfce-4396-bfb5-89ac3f0820cb","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":170,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"0c2cce6c-28ca-45e1-a45d-fbaf919f39bd","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":170,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"f45ed98a-cb13-4a2f-aa32-5db55a92d107","block_type":"box","text":"or (v) to manage or equalize investment performance among different client accounts.","page_number":170,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"270835cf-3ca3-4c14-84d4-315521892660","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":170,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"b8fef2f6-9870-472a-b25f-a826d9ede99a","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":170,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"815e7ec7-d5c5-4a16-8e8d-7dba63beb37e","block_type":"box","text":"accounts and compliance constraints.","page_number":170,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"0ef0b570-986c-475e-a5d9-72c37b7a0881","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":170,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"991a1d6b-f0a4-4f5f-84aa-fa2ad59dd3b6","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":170,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"0834b6e4-b65a-478c-a01c-d1c97b55acc7","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":170,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"af6af155-17fe-4b83-9b2e-360016ed3b3e","block_type":"box","text":"among client accounts over time, each portfolio manager or a member of his or her respective investment team will","page_number":170,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"497f5f45-8f5d-4268-96ca-3b73a16d66d3","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a particular offering with respect to eligible client","page_number":170,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"6415bf42-2b65-485b-adce-748805e84c23","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":170,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"dbb35793-6bec-4931-8eb3-5efa38e07268","block_type":"box","text":"eligible for particular client accounts that are managed by portfolio teams who have indicated interest in the offering","page_number":170,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"6516d33a-b2ba-48ad-998a-5e24bf58a629","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":170,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"f4f972dd-bca5-4191-97af-c8849b88493e","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":170,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"29f6fa45-1bab-4cf8-86ce-21cc7f2b9141","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among participating","page_number":170,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"e0d042d4-7a7c-4e9b-84fd-0fb2c1b81fb2","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":170,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"d35d388a-bad6-4bb9-a2a3-a9fc774eeffe","block_type":"box","text":"allocated among all accounts for which the investment is eligible, portfolio managers may rotate such investment","page_number":170,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"c169f381-84a6-4fa3-9a5e-6dce727e4e7d","block_type":"box","text":"opportunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":170,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"aaba14b7-d6df-41b6-a12c-0944e052c53f","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":170,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"1b8488dd-a3b5-47e8-aaab-3be9f6285b21","block_type":"box","text":"clients may be used as well.","page_number":170,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"7a7d8083-cc47-496d-a22a-7fd29ba1ea7b","block_type":"box","text":"II-127","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"77f4a951-fdaf-4b8d-8840-88ef810a67c9","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e389604d-9077-4b6b-9282-af8c9bb25da8","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":171,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"7d98bc23-f731-4105-8bff-3f29da32547f","block_type":"box","text":"the same securities at the same time for different clients based on the particular investment objective, guidelines","page_number":171,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"bbf4ff3d-d5da-455e-abd9-2fb3bc6dfc1b","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":171,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"a280c256-73a3-4915-8de2-15ccfaff135d","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":171,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"f325e489-a7e7-444d-a446-0b1cba60b8c5","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":171,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"f6589295-f896-4c34-8af0-0720cee90dbb","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":171,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"d557fc7b-f8d7-4b4d-b09b-f30738aad7b4","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":171,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"81781897-7395-4fbf-a348-a6c1c0928829","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":171,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"b2ab7f81-f5a8-4e94-a4ad-9532a06e2fa2","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":171,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"e4a68abd-ab94-47bc-9a79-18c784493a77","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":171,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"96363660-d953-42df-aa9b-7cf0d4b01cb3","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":171,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"ad780abf-07a0-459c-befc-754d1b94d1af","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":171,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"c0f58915-f4e1-4780-b36f-5361b5e036f0","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":171,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"974b6920-7216-4e08-a94a-a804a701d2ab","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or investment team","page_number":171,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"ec4af786-ea07-4cb3-ad8b-708654a29f58","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":171,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"ca0e5aaf-2c1e-4b77-a3a6-934fa66e0793","block_type":"box","text":"opportunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":171,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"d750e088-d6aa-4a1b-93c9-1eeb9b5d0d04","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":171,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"5ec29adf-91a0-465f-af37-b22645fc5ef8","block_type":"box","text":"particular portfolio manager or management team is filled at several different prices through multiple trades, all","page_number":171,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"03c9c529-cafb-4dea-9a46-c7b2587b4af4","block_type":"box","text":"accounts participating in the order will receive the average price except in the case of certain international markets","page_number":171,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"d42f8ce7-a25a-44cb-b597-15010c4412b9","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":171,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"5ed48fd3-7891-4129-8da4-ddba1d69a1b8","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":171,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"0929e8e7-80af-4000-9658-179330b50c79","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":171,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"0c8f2144-09a0-4f84-b298-210a11d3d0fd","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":171,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"3336061b-89e4-4b4e-b055-5f6a14d7bdcf","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":171,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"c31d40ee-a41c-4839-b905-7fcf79c1f7db","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":171,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"43d77887-57bb-4278-b762-9482af972ae1","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":171,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"130d056f-079c-413c-a328-2633318deda7","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":171,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"da1cb4c4-fc64-474d-876c-01af3dad550a","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":171,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"b788feb8-94b8-4fb4-b59a-587556f76696","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":171,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"47fa9c95-a654-419e-a382-f39ad922e3f4","block_type":"box","text":"Investment Company Act. In no instance will portfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":171,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"7b642dec-9289-4458-aae4-cf823a89bfaf","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":171,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"3864f57c-9c62-4e9c-a3e6-ab1119fdfb20","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":171,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"a0704dac-3891-4e0e-b86b-2060832b7af8","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of portfolio securities of a Fund and","page_number":171,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"69c58bd2-e43e-45e4-8323-af3be455be87","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":171,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"a8179831-565b-4ea6-8869-70be0d2c6614","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":171,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"56f0d78b-36fb-4fe2-91dd-be1ce8b03ae0","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":171,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"9d9a3638-4bfa-43cb-a593-552fb247809d","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to participate in volume","page_number":171,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"9279d88a-1e43-4467-9e64-891544c1c4a5","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":171,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"795b7ddb-1393-49e4-bdc2-3eefbd4b132f","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":171,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"e6dac51d-aa9c-4ba8-9915-9d99e0c551a7","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":171,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"5845f5ce-7a77-483b-915b-a29a99fe68e4","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":171,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"8e30d6d8-4636-40d9-bee0-b40492c1de19","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":171,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"c82c8914-7a3e-4fb6-accb-075dbd21cd68","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":171,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"043338b9-1b0d-4b0c-8966-3b2503be1fed","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":171,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"9710d2bf-29f1-441f-a62e-f944d5da2545","block_type":"box","text":"Portfolio Turnover","page_number":171,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"a1bfab3e-1d6b-481d-b107-5044f61e8c09","block_type":"box","text":"The portfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of portfolio","page_number":171,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"411c1b20-a69a-42b0-8ce1-fac38be16c1f","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":171,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"135bfdd9-b8fe-4967-9164-227b38c47ede","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the portfolio during","page_number":171,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"102a3438-e5e0-4f2c-aa08-c341dbecfec7","block_type":"box","text":"the year. A high rate of portfolio turnover results in certain tax consequences, such as increased capital gain","page_number":171,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"08d50787-8135-4d70-92ce-16fca701e4c0","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":171,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"86848560-1ee4-4e51-baa2-2c69c3d8a7df","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":171,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"031205d3-cabf-4f0f-b9b5-25b08879a92a","block_type":"box","text":"II-128","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"018e4ad2-a253-4fe6-9171-071f992ee355","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"435a7fcf-6b92-4f8c-ac10-1c8b8f02cd1c","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":172,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"44ba0392-85b0-4aff-8397-06961331e5d4","block_type":"box","text":"Dividends","page_number":172,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"ceaf3419-7eb1-45af-8d65-215843776069","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":172,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"082e67f4-edd7-434d-a8ec-f2bbecb0f0ae","block_type":"box","text":"investment income are paid as set forth in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":172,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"18cd7499-6de8-47af-a01c-7c2140a0b6b5","block_type":"box","text":"realized capital gains, if any, as set forth in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":172,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"3d419e31-2360-400f-8305-7c9d4032b101","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that certain","page_number":172,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"450128ed-4574-44d5-8595-39500dd63196","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":172,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"fa302c1a-571a-4824-9ac0-fde5367583c0","block_type":"box","text":"net income from certain foreign currency transactions, such income will be distributed at least annually.","page_number":172,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"3a2643cf-8e7f-4dcc-8411-4b6ee699b6f4","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":172,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"1d1686bd-77dc-485f-bb8b-a9368e48d601","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":172,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"6d7cee74-36d4-4788-9953-4072697cacaf","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":172,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"d8a43da6-997a-4735-9377-d756a447fc6a","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":172,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"f915ae1a-ff98-4224-9c50-3190921aae75","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":172,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"c62ef04a-fce0-4813-8745-0f30a3094e5e","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":172,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"ed58d370-ce86-4b9f-8e73-b456c24f71bc","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":172,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"b115029b-aa32-484e-a6e9-64eca3a7037f","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":172,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"e4b7f462-d914-40be-876d-b5a8a0725f45","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":172,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"449e9512-32c2-447e-9643-c7b581a56b5f","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":172,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"960491a8-2763-4bee-8a79-02e19dbc5443","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":172,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"a8580c7c-4970-41aa-b70c-d7e225104a41","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":172,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"c54a800d-2814-4c31-b76d-b7de98979e44","block_type":"box","text":"Taxes","page_number":172,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"51c64ad4-0bfc-472a-8186-8afdf33117a8","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":172,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"9a02e614-1262-4b09-9bca-a2632bae3220","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":172,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"6116aeaf-8e9e-401b-ad32-c941f5726255","block_type":"box","text":"U.S. federal income tax on the part of its investment company taxable income and net realized capital gains that it","page_number":172,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"8cd8ab8e-45f3-4c6f-a240-42acdb8f932d","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":172,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"5d8c1a8e-8db1-4d5b-9e2e-54495b6c4680","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":172,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"66929a33-73fb-4d0c-bea9-f951a06a1c14","block_type":"box","text":"company, a Fund must meet certain requirements regarding the source of its income and the composition and","page_number":172,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"30dd176b-d574-4254-aadc-a050aa50c807","block_type":"box","text":"diversification of its assets. See Part II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":172,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"2b89723d-40fa-4de5-91fe-3b126c285fb6","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":172,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"9814a20d-886a-45e3-94e8-5a5a71443bd1","block_type":"box","text":"underlying assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":172,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"c470ffba-2236-48ff-a8fb-74318d66dba3","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":172,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"406df56c-5ea5-4e67-ba36-5378ea9845ff","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":172,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"caaea3ab-2477-4ce9-8b03-2cbc73460b20","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of certain assets, or by","page_number":172,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"93f8a869-149c-4928-9c0a-1cbe0f303b4c","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":172,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"6466b747-427f-4b14-b471-9a7ee055d01b","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":172,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"03af26fc-f7ae-4134-99d7-2c518cd65916","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":172,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"8ebc268a-3457-4f5c-b4b2-f989a5a17756","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":172,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"162d0104-3a46-40c3-8a67-8a758c6e7914","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s","page_number":172,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"ab4475c1-7da8-41fd-8560-3a7d2b055032","block_type":"box","text":"investments in partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject","page_number":172,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"4f421ef1-6609-426b-ba59-51c92d46038e","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":172,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"ea119dd7-6f4c-4bd0-a56e-3161c93eba60","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":172,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"bb5cb1d3-3f55-4ce8-a851-487de4b59743","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of certain relief","page_number":172,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"d31db3b6-d509-4fb6-aa4e-294b5110f53e","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":172,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"a261174f-c9b6-4281-b93b-2d1809241642","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":172,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"df2607c4-290f-40bb-8d3f-bd72b45ecc80","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":172,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"ab3c6361-a94b-4f94-9203-ee8267cea209","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":172,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"96d3aa39-bdf7-4696-8c9d-375e04441eae","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":172,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"2b2507b0-1961-4c34-9cb5-6050c62c7ac6","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":172,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"2c0c0338-f39d-4f95-af20-416f6bd2fa26","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":172,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"3ee9111a-9411-49eb-89cf-300ff9e15a8d","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":172,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"a890d60c-b135-4a28-96ac-697ee5e62277","block_type":"box","text":"offset gains in another, and the requirements (other than certain organizational requirements) for qualifying for","page_number":172,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"8566259b-cda4-4578-95ce-af7ec90ff1f1","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":172,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"5b4a2270-bc3b-45d6-8615-51307fd31eae","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":172,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"d018925e-03d4-442b-8c4e-f1fce0722b47","block_type":"box","text":"II-129","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5b18d2d7-ca82-4097-b145-d3564115c7a9","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c04e4fc7-1262-45b5-b6e0-bdc132e4cd3f","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":173,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"81a7c224-ecb6-42d9-babc-e59dfc48ee98","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":173,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"f3500b21-e9d0-45c5-8ec1-396bcf269f8f","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":173,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"eb946029-cd63-4310-88e0-b5c045cc2142","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus certain undistributed amounts from the","page_number":173,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"9bb2f54e-3f4e-4235-8075-78462edb4c32","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":173,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"84c89769-45f2-4a31-b366-f4a52b201fdc","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":173,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"5cedd434-61dd-4ba4-8ab9-6c38e55097b7","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":173,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"0daa5fb7-6704-42ca-92dc-9cb9532480ed","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":173,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"87b3e8a2-7847-4170-aec6-49c156cacc10","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":173,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"431acf6f-de51-47fd-9c52-98602fe74b68","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":173,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"9bdd5a31-f669-4b20-8d8b-895e3a9d3215","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":173,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"5837f12b-c12d-4efe-baea-1716b8160093","block_type":"box","text":"limitation.","page_number":173,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"46314fcb-963b-4c7b-a405-69f6f30adf65","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net short-term capital gain over net long","page_number":173,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"421d59d6-f876-465b-8643-c3d02d75722d","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":173,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"0b21e2ed-36e6-409c-ac35-0adb9c899b2f","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net short-term capital loss (including","page_number":173,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"ca4a831c-b3b9-43d9-8297-36ea14560648","block_type":"box","text":"gains or losses from certain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":173,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"7b8e4c29-b82b-4f71-be8c-d75305037435","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":173,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"8e123879-5572-484b-805d-398677697c82","block_type":"box","text":"Distributions paid by a Fund that are reported as exempt-interest dividends will not be subject to regular U.S. federal","page_number":173,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"e8bb4bb2-09b2-45fb-bdc6-f9e5d0d5cafb","block_type":"box","text":"income tax. Certain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":173,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"b8974284-d788-48ff-883a-ff74786cc29e","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":173,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"582faff2-1ea7-4844-9968-f39d23fd100b","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":173,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"390b63f0-1d0d-4022-b702-f2313cb4e064","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":173,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"4975ee18-02ea-4dd3-881d-e8456fab9272","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":173,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"52297cce-1ec8-484d-a8cc-f1d67ed3acc1","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of certain","page_number":173,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"2c18cf14-af03-41ed-8c76-a63c7069e76d","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":173,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"36b3f8cb-6fb5-4a8d-9209-edf7400426f9","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":173,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"b2c3b264-6f30-484f-b01c-4c3a34c9897a","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":173,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"a62254c0-8e3e-403e-bf32-cb2bd94f02ad","block_type":"box","text":"are derived from income on debt securities, certain types of preferred stock treated as debt for U.S. federal income","page_number":173,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"78fbd7ab-3270-4189-aa30-602e73f50ed6","block_type":"box","text":"tax purposes and short-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":173,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"b8964257-fa60-438d-a672-97688c887442","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":173,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"7579d28b-738c-42b2-a922-3b6a6d248f75","block_type":"box","text":"constitute “qualified dividend income.”","page_number":173,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"6cf701c4-475a-428d-81a6-ac801c1a5aeb","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":173,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"1520b186-3aa9-4dba-aac8-2bbf82afcb69","block_type":"box","text":"proceeds) of certain individuals, trusts and estates.","page_number":173,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"0310a431-d5fe-4764-8bc3-1d18327f8215","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net short-term capital losses) is not","page_number":173,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"ed42c12d-d35d-4833-b0f5-ccd794d89e38","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":173,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"b29af5d5-4e38-43ab-a04c-b6a97b2d5594","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":173,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"9cd714fe-733a-4593-9529-14c2d6848e8f","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":173,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"23fff930-e586-44a9-9f15-64cfd9889b18","block_type":"box","text":"income, as long-term capital gain, their proportionate shares of such undistributed net capital gain, will be deemed to","page_number":173,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"61d3ca43-b76c-4a35-a698-564e7180e7df","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":173,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"b6f66ea4-1790-4dcb-ba8b-24b4c2530820","block_type":"box","text":"exceeds that liability) their proportionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":173,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"9a4bf6d2-f436-4069-938b-e2f73d346c5f","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":173,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"aa295ba9-e735-42bf-823f-494635976750","block_type":"box","text":"against their taxes.","page_number":173,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"f40f576a-bac2-466c-8c9d-13fbbc615116","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":173,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"488c7ee7-c7be-4046-961c-a4c5333b715e","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":173,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"1a9d1c8a-255a-409d-a008-6b546363a689","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":173,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"4aa955bf-f2fe-48e1-8f04-d14eb9d120c7","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":173,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"6331ad47-f577-47c5-8a91-cbafc29fe398","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":173,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"c4c3a329-8682-4a43-8c2c-618d6f0478e6","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":173,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"1266355a-921c-478d-95f8-538701a285fd","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":173,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"f592a1c9-ccef-46d1-8407-a4f5edcd1c7d","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":173,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"c2d9be53-65a6-427f-ae37-1eccd4c63454","block_type":"box","text":"dividends received by the shareholder.","page_number":173,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"97ad7ca9-082d-429a-9ba5-00d85a5b41c6","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":173,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"ac9bc975-a3fe-4324-86ff-1d4f794b3eff","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":173,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"b8e69feb-17e7-42f1-a10b-21e7a07889f1","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":173,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"df523ced-12c1-45ba-9981-ab9e4c0ed3de","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":173,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"e7455873-58cb-463f-9b7b-d1feae07f0b7","block_type":"box","text":"II-130","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"39e6c77f-c818-49ee-8c07-7fd4f62f3a3b","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a39ea6a6-3f6a-4581-a0f8-b3021f145306","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":174,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"a8120ef1-583f-4601-88c0-d4c456943f5a","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":174,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"ffa43700-5b37-4fbe-bf8e-42a3b7a45dcc","block_type":"box","text":"calendar taxable year, if the Fund reports more capital gain dividends than it earns in such taxable year, then the","page_number":174,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"a29d747a-2335-414e-9dbf-c5c0b212ce68","block_type":"box","text":"Fund will reduce the amounts reported as capital gains. Where possible, such reduction will first be allocated to","page_number":174,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"930832a0-0148-47c0-b31a-6e728389ef1d","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":174,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"3660c44b-0ef6-4b33-98ee-9bc893dcd6a0","block_type":"box","text":"taxable year, certain net capital losses arising after October 31 of the current taxable year, and certain net ordinary","page_number":174,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"2ef5e7d5-f885-41e9-9045-2111e79783b4","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":174,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"9c78b179-d215-44ea-97b7-5ce44679ea6c","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":174,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"aea94d93-3ce1-4a2f-a63f-14ceba64b746","block_type":"box","text":"taxable year.","page_number":174,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"22b03d21-5039-4609-b708-50a2cceae06f","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":174,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"98bda400-720a-41ad-982f-4ce614f82b61","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":174,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"9bcc5243-3865-452e-bf31-389a43be6fe7","block_type":"box","text":"basis in the converted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":174,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"9a89b049-d0f3-4644-bbfb-b676055d35c8","block_type":"box","text":"holding period for the converted Investor C Shares.","page_number":174,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"863f0fe8-4fc7-4330-a19f-a051be2de525","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":174,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"8e2377f0-4c43-44f3-8b0d-26abae423540","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":174,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"92fb32f9-5b14-4ae2-8924-d10c6fc32dff","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":174,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"f667dd18-3988-44e9-89fb-b2891ffe7f65","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":174,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"f8d9b243-86ae-4f01-8746-39d1d76ba714","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":174,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"9c46dbc7-f124-43b5-bc1c-7108ac3b01a4","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":174,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"359396a6-3204-42eb-83a8-bca49ade5a57","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":174,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"030ef3f9-a83a-451f-b9de-161707266352","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":174,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"d83c8780-f74c-4780-a8df-0ed6997ff6f3","block_type":"box","text":"generally be treated as short-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":174,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"36ff82d6-1355-46c5-8493-6a1198355b6e","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than short-term capital loss, to the extent of any","page_number":174,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"6764de4d-daf7-4954-b323-bcd005488f6f","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":174,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"6195b4df-94fb-4a2b-88ab-07b79647b4ff","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":174,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"1f24a589-0ea7-4c3a-8ccc-672c45c33475","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":174,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"59ed4038-0910-4660-a605-8208dd8bb189","block_type":"box","text":"special tax rules that apply to their investments.","page_number":174,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"6dcfb548-3814-46ec-b314-c36819df05a6","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":174,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"ce9c920c-ef45-434d-97bb-42c224de2fdb","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":174,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"2f725956-e7e3-4524-89e8-2fd39ad7f76b","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":174,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"cb286f0e-4177-4152-9ca8-5607a740e000","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":174,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"6317011b-fcc2-4863-8c6c-1c34fcc52250","block_type":"box","text":"A Fund is also generally required by law to report to each shareholder and to the IRS cost basis information for","page_number":174,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"65534da8-3cce-47d3-87e1-3b0d99b3f445","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":174,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"dd6fa7d6-8c43-4736-b0f0-b9c575eaad77","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":174,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"3b887bec-7d83-4a2a-bb3c-a72b7c4fefb8","block_type":"box","text":"long-term or short-term. The adjusted cost basis of shares will be based on the default cost basis reporting method","page_number":174,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"17c899e1-318f-4c05-a662-29214bc0a514","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":174,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"29e45ac0-2817-4a7a-b85a-c5c73c6f1467","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":174,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"8cda792a-8c79-4b7a-a86d-ec045decdb5e","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":174,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"ca8e6856-8385-4f6d-810c-6a8c5edfc7f8","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis reporting","page_number":174,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"5152a1e3-a11b-456b-b8cd-97ec9bf11ebd","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":174,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"0cc43d93-f569-4436-9d99-41502c7186f9","block_type":"box","text":"apply, but the Fund will continue to report to the IRS the gross proceeds received by a shareholder from the sale or","page_number":174,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"6bed9a96-d966-47ae-92bf-90c365f7d37a","block_type":"box","text":"redemption of such shares.","page_number":174,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"542415a2-7e0a-47d5-97d3-a2db4726b916","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute portfolio securities in kind for the","page_number":174,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"793dcaf3-b695-451a-a382-2a11feaabb13","block_type":"box","text":"purposes of portfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":174,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"6e3c17d9-3f0e-46c1-8f16-601a30735e91","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the portfolio securities it distributes to the redeeming","page_number":174,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"859c295f-07a6-4534-99b7-3cfb23f40d19","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":174,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"6e4a8f48-f121-41ea-a436-cb0d0698243b","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":174,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"3c24da34-8958-43a6-b4d3-e79f925acd94","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":174,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"e5fe86c2-1988-4cd7-89ff-5f147f8e8015","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":174,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"7a7e3a8d-e1af-4e4b-8939-758e6d7b7958","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":174,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"d9ace2c0-319d-4291-a674-9319c1e1d575","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":174,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"78876f4a-33c3-4119-bb2c-8946da26a569","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":174,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"a40a2e0f-19f0-4bc3-8201-3cfa2a81bc0a","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":174,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"64911028-0b55-4db5-9f00-83cf4813d505","block_type":"box","text":"realizes from its investments. As a result, a larger portion of the Fund’s distributions may be treated as ordinary","page_number":174,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"12361c34-3741-42da-bfac-d23fac6adb05","block_type":"box","text":"II-131","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"61cf8229-572b-4869-8dd2-9d21e79db22d","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"47b0a301-8b20-4e63-920a-be73b3fc6993","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":175,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"0e5dc154-c239-4e61-a99a-e607004bf266","block_type":"box","text":"(and, for purposes of the 4% excise tax, certain other dates as prescribed under the Code) are generally “marked-to","page_number":175,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"17c6629e-e3be-4813-9eff-1e01e7cb2e9c","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":175,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"095377e3-85f3-4cf6-9433-f57b97f93bce","block_type":"box","text":"considered 60% long-term and 40% short-term capital gain or loss), which may increase the amount that must be","page_number":175,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"a6fe9deb-6f29-4ec8-9956-f653280bc3e4","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of certain","page_number":175,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"17c43d62-a8a9-4bb6-a526-67f2ca8741ac","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":175,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"e6458ca8-5f43-4053-9cb7-b83b7b2bc955","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":175,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"60e6208c-f3a0-4b1d-94d2-e0d4630de7bd","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":175,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"c4965d17-1969-4e50-871c-a70e9e40f583","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":175,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"e2b82085-84a4-4e39-956a-c62052046f2d","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":175,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"d9f714cc-9df4-4ca6-b44f-9ff60b0662d7","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":175,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"b174f6f0-a83f-4e5b-8c12-4fdd9ea84df3","block_type":"box","text":"on a section 1256 contract is treated as short-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":175,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"a8d41d1e-4ce2-4cf9-8244-71e4112e3d54","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":175,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"1c336fa1-2806-4084-9a1d-a6e9a4751e7c","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":175,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"d75fb248-b614-45a9-a6cb-4aecc44da07d","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":175,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"fa004a87-fbe3-41c0-959d-c975ba9411a2","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":175,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"3a8729e5-4fed-4f33-a5c0-56604d33a1b6","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":175,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"74f65402-21f1-422f-a5af-9c0e81c368b7","block_type":"box","text":"Certain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":175,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"a74fec5a-174c-4aae-b5c0-9523bfa0ae08","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":175,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"1236f155-e0cd-4bc5-8310-e0112054724d","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a portion of the excess of the stated redemption","page_number":175,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"4d52caa4-633c-437d-b16b-e24e5e7eccf7","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":175,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"288897d7-76e3-4cbd-bcc7-49ed214156ca","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":175,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"d70fc6fc-4886-40b3-8ec3-5139e86bf579","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":175,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"506641bd-892e-415f-a62b-9991cb67a079","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":175,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"1887f873-757d-48b8-a59f-06e93359af93","block_type":"box","text":"currency denominated or referenced debt securities, certain asset-backed securities and contingent payment and","page_number":175,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"4570d00f-9e96-4c24-8e70-06662c08b44f","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":175,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"e58ae741-e1cf-4a92-9166-78e427510ba1","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":175,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"0e6b3104-a211-4408-9426-8fd0d2e96330","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or certain foreign currency options, futures","page_number":175,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"fe2e5a23-be39-4f24-b0d6-74b4e3b01249","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":175,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"d0f9185f-6845-4ca5-8ccb-c85f4adc2877","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":175,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"bfe18bd5-8582-4b73-873f-6100b8368603","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":175,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"dc5a9426-f2bb-4a6b-8c59-4ace8686f4db","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":175,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"57f41eb9-2cac-4036-a295-7774ad18df1a","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":175,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"2f22ff7c-f284-44f0-ab45-f1eb81b3d378","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":175,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"3c0c505b-50ee-4a48-b7a4-e356a50b34a9","block_type":"box","text":"in subsequent taxable years.","page_number":175,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"8291d56e-223a-4a02-a148-3261d9203c0a","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":175,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"dcc4b3e5-8691-4a7a-87c7-c9f5ff5d8351","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":175,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"3f9461ef-42c6-41fc-ab35-d9a27cf99144","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":175,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"efef1567-9d5e-4be8-9049-1ea46bfc932f","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":175,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"3ca6ea09-894e-4c30-806a-375fcc3b1f35","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly reported as capital gain dividends, generally will","page_number":175,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"fda1c2be-0839-4a5f-b34c-74239ab99e9f","block_type":"box","text":"not be subject to a 30% withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":175,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"3fcb90e4-5d2d-473f-a33e-14dbead1041f","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original issue","page_number":175,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"aaf3cdc8-b311-4677-86cb-00a32ecbf9e3","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":175,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"da5e0913-2746-473e-9a2a-0c30622cd57b","block_type":"box","text":"extent properly reported as “short-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":175,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"70805045-9f85-4bb6-b38a-07caa2c2e530","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to report such dividends as interest","page_number":175,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"3450e66f-b72f-47dc-b97d-0c1a38967856","block_type":"box","text":"related dividends or short-term capital gain dividends. However, depending on its circumstances, a Fund may report","page_number":175,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"bc514cf6-e59b-4d90-97e4-21e2d15c9849","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as short-term capital gain dividends, and/","page_number":175,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"2f7a4585-c5d7-4202-a494-e8244e0ca9ba","block_type":"box","text":"or treat such dividends, in whole or in part, as ineligible for this exemption from withholding. In order to qualify for","page_number":175,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"1e0b9d9e-343f-4918-bdfc-e78bee6c33a8","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification requirements","page_number":175,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"2bd4151f-5740-4e91-a519-e40a4aef63a1","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":175,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"fe81676b-28b1-4b6e-a1eb-a60443c647b3","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund reports the","page_number":175,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"e83f41a1-ed06-4fb2-8f65-cd04d5d772ab","block_type":"box","text":"payment as an interest-related or short-term capital gain dividend. Foreign shareholders should contact their","page_number":175,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"a0eb27b1-361e-4f19-aded-7f64d6e3cc64","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":175,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"2efd0f5d-4c97-462f-9dfe-0b319e76926b","block_type":"box","text":"portion, if any, of a Fund’s distributions will be reported as interest-related dividends or short-term capital gain","page_number":175,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"6700b584-02af-4126-a5af-76d0138bab47","block_type":"box","text":"dividends under these rules.","page_number":175,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"b92cf89d-0097-4d79-84d2-06831e640590","block_type":"box","text":"II-132","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6c241c30-726b-4ac4-b34a-44caa696b54a","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0499f6fd-74aa-46fa-a833-801e1dad0613","block_type":"box","text":"Distributions to certain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":176,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"e82a7b8a-a1b4-49e1-87af-253e1011786d","block_type":"box","text":"property interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":176,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"d06b0d5b-7e41-46fe-bc13-bd0d3ded7ac3","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":176,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"aa8ba366-8008-4ede-8ecd-6998392ce8ea","block_type":"box","text":"real property interests (including shares in certain “U.S. real property holding corporations” such as certain REITs,","page_number":176,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"52e8fe18-b4a6-46fe-92c7-460758a9091c","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":176,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"a3a05bc0-16cf-46e0-ad45-88edc1ee3689","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":176,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"dee10885-5319-40cf-bdb8-9f70a779be86","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":176,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"b99746c7-1a6f-4947-b4ac-aa2f9629523b","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":176,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"815e822b-9338-4875-8931-f04939da8dbc","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":176,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"6cdfc8a0-94e8-4ca5-84bb-c71507fee812","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":176,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"8363ccf7-a7b0-4757-b72d-17266bfb42e6","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":176,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"cbf7b977-6a86-480d-9dbd-48db5cf711d6","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":176,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"ea1d723d-a668-44c4-9dfa-8ecc3b2042fb","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":176,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"d78044d9-d001-4bee-9fa6-0ebeb2b68cd2","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":176,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"a3b15644-b093-4e41-876d-e8ffc60078ea","block_type":"box","text":"sales or redemptions of shares held by certain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":176,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"58d346d9-c152-49fd-a08c-d6afdf12902f","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":176,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"f3be8bbc-2346-49a4-adce-5c26475ff504","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":176,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"2ce0063e-6197-448b-9013-049e2b141815","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":176,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"867d629f-63b6-4c4e-8857-5df9225f2e98","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":176,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"8eb39496-8fdb-46f7-a2c7-4182da74f42b","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":176,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"3b2fa1aa-3258-46c5-a1c3-08752e106760","block_type":"box","text":"distributions made in the form of U.S. real property interests (including shares in certain “U.S. real property holding","page_number":176,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"63df5b44-b85f-4ce1-9ff2-66b3d2c9b4b7","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":176,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"4926b675-1adc-43ef-bf47-a10e747de2e7","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":176,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"59ad6943-def9-4f16-8557-c85ee754dba7","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a portion of any","page_number":176,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"058d5f7e-0d26-4d47-ad9e-0b03614c1c0a","block_type":"box","text":"unrecognized gain in the U.S. real property interests equal to the product of (i) the excess of fair market value of","page_number":176,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"dbcd32ae-b3af-438b-922d-24e4724e2269","block_type":"box","text":"such U.S. real property interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":176,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"bc957066-90c3-4039-bbbb-cbda5f7c79b0","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":176,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"99b0be4f-fb7f-4416-a48a-07aa850ec562","block_type":"box","text":"A foreign shareholder may also be subject to certain “wash sale” rules to prevent the avoidance of the tax filing","page_number":176,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"2551612c-bf90-4e09-a64e-ef7268f0b752","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":176,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"7c1395a7-e0b8-46fa-baa4-e456aecf2daf","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":176,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"b910c072-334f-44a7-8f23-54c3f94d871f","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":176,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"dcfbe2b5-c97e-42f0-89ab-9195124a13b1","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":176,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"ee2971ff-4d39-4d32-aa1d-d8ca836765df","block_type":"box","text":"items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other foreign entities. To","page_number":176,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"886fe6d5-9769-4bc0-badb-362bd957427e","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":176,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"5ceebe35-c5f3-43fe-ae18-bc09be632f7f","block_type":"box","text":"report to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":176,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"983e5193-1add-4499-b581-a0afa0bc6e04","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on certain payments made to noncomplying","page_number":176,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"e39905b0-e854-4dab-800b-79eb02847222","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":176,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"84c45a34-e86f-48d5-af84-14a3bc4b15a6","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":176,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"ecd0cf06-208e-43b9-a619-94badb8fb596","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or certify there are no such owners.","page_number":176,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"44380c28-d0cd-4a30-a177-e03a5a40c81e","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":176,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"775ccf91-57ad-4621-aeb5-36c3f614cde3","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":176,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"747a7974-7c62-4095-9a71-509cead07dfe","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no certified taxpayer identification number","page_number":176,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"036cbafa-3dca-44ce-a09e-ec651a56ecfd","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":176,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"f75b83b6-b301-4c5b-b699-7eb5f39c02d7","block_type":"box","text":"account, an investor must certify under penalty of perjury that such number is correct and that such investor is not","page_number":176,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"61ce8c91-a4f5-497f-9fb3-9284f3f91519","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":176,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"fa69dad9-2559-404a-bc2d-1a9efd7868fc","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":176,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"4f1b9e9b-8622-446c-8192-fe1a7fc62162","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":176,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"3950e15e-87c2-41a1-b164-13ecef5d9c2a","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":176,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"2e1dedb2-20b2-44b1-a321-37aa93775133","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":176,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"f5ed013e-225b-4a24-8118-87523d59b197","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":176,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"1daaa714-fafd-40e0-a3f7-cf74a7a06f47","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of portfolio","page_number":176,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"d465b884-bea6-4d46-8003-47e9788e928c","block_type":"box","text":"securities are in many cases exempted. That a loss is reportable under these regulations does not affect the legal","page_number":176,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"82b651a3-b6fd-439c-868e-e82f2ece9a12","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":176,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"ceacbaef-27ff-4b02-b651-cfd8bc0e3b8c","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":176,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"ff40833f-bd40-4cb1-b789-50b56f50eeff","block_type":"box","text":"II-133","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f680eb9c-3a4f-453e-a849-f4992c18fe43","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7f1d6c86-00e5-448d-a599-7a10c4aeaa17","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits, taxable","page_number":177,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"a7f57b0c-fd24-4ee2-a9ba-543985763100","block_type":"box","text":"mortgage pools or other investments may cause the Fund to report some or all of its distributions as “excess","page_number":177,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"33ecc04a-696d-40e6-906b-39dab6318c93","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":177,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"37adb8d9-eb91-44ca-aa1c-eeaa1690fb1e","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":177,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"dd352da7-8fb6-49dc-b8e4-0bc5ecb2c54b","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable entities; (ii) not","page_number":177,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"d1dc1b97-2e98-41f4-aa3f-b264e0bcc46f","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":177,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"2f059b50-5165-4246-8751-90193a7f49f8","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if certain “disqualified","page_number":177,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"37b1f50d-ed31-4ef0-8019-b85d423888af","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":177,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"d3af3bdb-9c22-4ede-9186-a85de9127d93","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":177,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"0e5dd29c-43dc-460c-a62c-6c1d5c8b7c2e","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":177,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"97dec978-20ad-4f4e-a870-26340bcc54ca","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":177,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"3dbe12d1-ab65-4f66-adee-cae7798447db","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":177,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"5ee2d904-538d-47df-b951-eedd26a39d63","block_type":"box","text":"investment opportunities.","page_number":177,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"5807a984-ed44-4f3a-b828-aad33ed05aa0","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":177,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"859bbb6a-7e0c-4e00-b6a5-149db8d317ab","block_type":"box","text":"imposed by foreign countries. Tax conventions between certain foreign countries and the United States may reduce or","page_number":177,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"449b1b15-906b-42e3-a016-5facfc9b1ccb","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":177,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"c0d71e0a-5552-42c2-9d7f-2a5f447ed16c","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":177,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"b29fdd8e-31e2-4065-9f2d-6f355e04084a","block_type":"box","text":"Fund, subject to certain requirements and limitations contained in the Code. For example, certain retirement","page_number":177,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"82d93a3b-9449-488c-8710-ddd104afacbd","block_type":"box","text":"accounts and certain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":177,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"a26ebf7c-6f51-49ed-93ef-e6a881703c0d","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":177,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"2c0c4165-d7c5-43d4-985d-11db6ea700f8","block_type":"box","text":"respect to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":177,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"a519360d-650f-4e8c-8b9c-167c0e0b26bc","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":177,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"6b213035-bd17-4a80-b653-73b35940e7c3","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":177,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"e51f1448-c160-46b6-88cf-5c49cdcaa359","block_type":"box","text":"the Fund. Further, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":177,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"5c72b6f9-6e51-4f50-8af6-b90cec392683","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":177,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"f2db9e60-18ef-4e7d-95ce-3bb624e12ff1","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":177,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"3bcef23c-8386-40e1-a104-2afb13b5efeb","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their proportionate shares of such foreign","page_number":177,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"ba64fbfa-85bd-476f-b168-3acfa1945830","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such proportionate shares as taxes paid by them, and","page_number":177,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"b4a11455-c5d2-4a98-b018-33c44221bbca","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":177,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"919498dc-284e-4d76-abab-67619190e76f","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":177,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"b85dc803-e351-47ca-ad49-2ea4b48329c9","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":177,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"b7c07a08-3707-49d6-a2a5-48b068ba6b26","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":177,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"1dfbc935-694e-4adc-a1b3-2c91b706b942","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":177,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"80ff069e-563b-42cb-87e8-b11f19811c2b","block_type":"box","text":"having been paid by such shareholder. A Fund will report annually to its shareholders the amount per share of such","page_number":177,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"6bd9c3d7-1e28-4b92-a96d-6c67f7977dd0","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":177,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"9cdbfea8-2f4d-465c-990e-151d36e29655","block_type":"box","text":"Certain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":177,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"29ce9f83-8b22-4a73-bcd2-f099917f2a91","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":177,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"b39004d9-f298-45ce-8d15-33f45c2f2bfa","block_type":"box","text":"allowance of certain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":177,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"c48c0fa5-7189-4082-b5e8-462f1a3c414e","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":177,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"49f96c74-eaf7-43f2-bf51-521b83e7bdce","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":177,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"22d9fb8d-3e09-4a59-8df1-37ee4c0cf5a0","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market certain types of","page_number":177,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"e30e838b-009b-4003-b220-6c6148c7d4e6","block_type":"box","text":"positions in its portfolio (","page_number":177,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"4f1bdc3c-1ff2-4b59-9512-700cbf5a55a6","block_type":"box","text":"i.e.","page_number":177,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"e91b92fe-ef02-42ce-a6eb-e1a87319c7b6","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":177,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"3bc63efe-52d5-42c5-baf8-696f4aac06d8","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":177,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"be2f3469-5bc9-423c-a495-da6c32509ab3","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":177,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"5b56297d-a252-45d7-b05b-3a78883c8f30","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":177,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"bc390ad1-8bd5-444d-8970-90ca0f7ed232","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":177,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"bb1b90f2-bea6-43b4-9796-3bd3739557f2","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":177,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"4bf4aa29-c3b3-4ed9-9ca9-0262c13839d7","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":177,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"2ec1e80a-c972-4d43-af95-2c4e8184f157","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":177,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"aeedcae3-ddd7-458b-8b5e-69cd79022bc8","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":177,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"a307978b-4c76-4be5-91c0-ac9c4181b9a4","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":177,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"521f181d-b3bb-4a39-a76c-c8baffd1ed69","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":177,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"04ef83df-7569-4635-896d-a22cf2269be9","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":177,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"3bb80f7a-559c-4576-abdb-89b75577f576","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":177,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"82836fe3-20aa-44d9-b9e2-a93c8fac4b66","block_type":"box","text":"II-134","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d2beb746-c075-4b0f-84fb-7cd450c11128","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ae03d355-332e-4b05-b6c0-60adc2956beb","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":178,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"b514bb2d-7ad6-412f-af7b-45d814f058c3","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":178,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"ac68b41d-3a5e-4f4d-9c94-c7a9aa971b56","block_type":"box","text":"capital asset.","page_number":178,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"13986bdb-403b-4a03-a47d-53903918410c","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":178,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"07c0a2d8-a5e5-46ed-8637-6c9e94bb3cd5","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains by underlying funds will","page_number":178,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"54ff3b8f-6b48-4b78-8da1-5421e969025b","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":178,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"964ec72c-00ef-4b58-9d33-b51d105428d8","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":178,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"b7768bd2-90aa-4ec0-975f-415ca375911b","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":178,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"2c5824cc-e3bc-4e6b-a733-f4aad58d6e83","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":178,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"9dc8920e-e36b-450d-aaea-82e747bf621b","block_type":"box","text":"Fund were to invest otherwise.","page_number":178,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"0c690675-20da-4aa8-adb1-26a3a6d97b89","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":178,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"3b39ad90-91e7-4ea0-9c93-8e4f20fcc72e","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":178,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"569fc483-87dd-4df9-ad9d-10862a5b270e","block_type":"box","text":"income will be “subpart F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":178,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"44bce7d5-8b78-4171-8701-8bbf35e19a63","block_type":"box","text":"to report all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":178,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"45a4a36c-60ce-4dfb-8178-e0034b268578","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":178,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"a5aabe11-6eda-402a-adec-0321f7f2fca3","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":178,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"8eefb5c5-6531-4363-97e0-eca62949fb8e","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":178,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"db9cd694-7bac-4ba3-bb03-a70992c90d7e","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":178,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"44b96248-7302-4e7c-a4f7-f14780297746","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":178,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"cd169bfc-893c-4af0-a359-b78dd195b586","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":178,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"ce49b026-18f9-40be-9945-475c82d0a685","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":178,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"4770e7a6-1759-4bbd-aaf5-fa71f3c9ba29","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to certain distributions from such","page_number":178,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"e38b2dd6-9b9a-4cf6-ad38-0d59c55552fd","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":178,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"836b4046-a7ca-46c1-862e-871227cb9105","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":178,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"22b87a36-7a6e-4253-afe1-3e669abedb2d","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":178,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"a1ee8b28-0e4a-4ea4-9838-8e11b6bb48da","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":178,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"2c06bf95-35b0-4451-b6f6-3b1cedd03283","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":178,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"77a4dd63-0a17-463d-82ce-431ad353fbc1","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":178,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"0e0bedc0-13b2-436c-82dd-afa935eb597f","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":178,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"fafa4227-05c7-4288-91ec-23d553d2e656","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":178,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"33a12ca1-2d74-46de-9593-e967fedc223f","block_type":"box","text":"PFICs, but in any particular year might be required to recognize income in excess of the distributions it received from","page_number":178,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"f9abcb93-15bf-4894-a89b-0f8fbcdd1028","block_type":"box","text":"PFICs.","page_number":178,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"08739fb8-6bb0-4393-9b0b-8cab0bb4c278","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":178,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"657490a8-7b70-472d-a9aa-08f3850e808c","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a portion of the ordinary","page_number":178,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"8722b6c3-1cf2-4bf6-8d42-602a5507d3fc","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":178,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"5354668b-ebc0-4450-b9b4-c1c44822239b","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":178,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"ac5ce557-0827-4cba-9f5a-9d1bf558bf81","block_type":"box","text":"the Fund would be required to obtain certain annual information from the PFICs in which it invests, which may be","page_number":178,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"642fbc18-0296-495d-813a-eca3bc047a56","block_type":"box","text":"difficult or impossible to obtain.","page_number":178,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"4e80c5ec-c59c-4abb-b7a6-1a28bf4e1acd","block_type":"box","text":"In certain situations, a Fund may, for a taxable year, defer all or a portion of its net capital loss (or if there is no","page_number":178,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"e61b2f86-ab3c-4166-a19e-37d20157839e","block_type":"box","text":"net capital loss, any net long-term or short-term capital loss) realized after October and its late-year ordinary loss","page_number":178,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"1ec02ec9-b8e0-4c34-ab7a-92f23214b6d0","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":178,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"8e954648-dc64-452d-b4a6-3d1a29739a83","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":178,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"de9ede14-84d5-4b0b-ae98-058acbf23566","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":178,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"b8c10558-ab19-4c82-82d5-22d87e26ca1d","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":178,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"acec78b7-f7e4-47c4-8a07-5c2de89da522","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":178,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"6b3778ea-ae8a-4d3b-981a-80dab1d01b9b","block_type":"box","text":"Municipal Funds","page_number":178,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"8515805a-0d4a-48af-95fc-d7bfa950b124","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":178,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"57aa9a06-4f3c-4ad2-83c3-e583379a60de","block_type":"box","text":"Code. Under such section if, at the close of each quarter of a Fund’s taxable year, at least 50% of the value of the","page_number":178,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"79f07cb2-0aeb-4d45-913b-f50d406aa9eb","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":178,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"78245d5c-ffa7-453a-9dbf-767d4ffc5adc","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":178,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"69ddef7f-a0fc-4ee8-aac1-043ed2a0822e","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":178,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"272d24a7-23af-44be-b8de-34eec4d681d8","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any part thereof paid by a Fund that are attributable to","page_number":178,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"dac271ea-9fd7-4c66-ada4-4230637fe3e3","block_type":"box","text":"interest on tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":178,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"e1167e4a-6c99-4e16-9086-03d465e15d29","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":178,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"131529f5-4b83-421e-97c3-9fc964d493c7","block_type":"box","text":"II-135","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5ee6e8c1-31f8-41fb-91dd-73d65d7bc3fa","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0f451492-c763-4489-8fb5-597751197696","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":179,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"9b5cddfb-cf82-4f58-9596-4d77986b0a55","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":179,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"14f6a023-cab0-406d-aeca-130b71e3fe25","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":179,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"30bda803-5e43-4aef-bd7e-47ce8a25e144","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":179,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"3d4a8d40-6ded-4c29-9ede-e35564649884","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the portion, if any, of a person’s social","page_number":179,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"d7bd45c1-d741-4f13-bd43-0fc07cc7177c","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":179,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"5995e4a4-302e-4e83-97f5-b80f6ce09abc","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":179,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"cbc12499-1e11-4b0a-8b01-20db2d2ceab6","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":179,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"bbd69a44-758a-4a96-916c-3625013c39cb","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":179,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"7d4088a4-03d1-446f-8065-b069784f54c8","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":179,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"8725e1f9-d87e-42bf-84f7-b247abcf7a88","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to property financed with the proceeds of an issue","page_number":179,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"3a9c5e16-b835-490a-a754-5c5f39007285","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":179,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"4f26e1ce-250f-4bfd-8b61-81f6624b519d","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":179,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"7f7c161a-f0e6-48d5-8a32-08a6589f734c","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":179,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"3d5fdc43-c89b-47b2-84fa-2ff5a44d62f6","block_type":"box","text":"constitute exempt-interest dividends.","page_number":179,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"5c12599f-0461-4caa-bb8b-2332c3c1fa17","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":179,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"7e00dd4a-bcd3-4e60-8dce-1d62d8dcf580","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":179,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"b9cd14b8-2181-4b45-b827-5691048d0867","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":179,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"6de0ae92-48a2-4420-bd8b-4527be93b248","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":179,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"386ddabb-a28e-493c-8f2e-3f8ea0d5cba1","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":179,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"2c4f4857-e7fb-4c44-8d80-4b90b7d80a47","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":179,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"aa6a9a0b-29fa-4b4b-9727-8dcd3ebd07b6","block_type":"box","text":"All or a portion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":179,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"7400dca5-c126-4099-92b4-93c7f470502b","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":179,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"f1c39a36-95c1-4571-8fab-fd61d6dc2e13","block_type":"box","text":"income dividends received by shareholders.","page_number":179,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"5dc0da2f-71a6-4bf0-a7cf-01c4591934b1","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":179,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"52ff0d76-544c-45c5-85ad-6b11cacf0c51","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":179,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"820e871e-078a-40fe-ba06-be954a379414","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":179,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"1a527060-ec1a-460e-8ce0-fd32334e1ec4","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":179,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"0d3f5313-fe42-4f57-bcc1-abcfe878c701","block_type":"box","text":"the accrued market discount.","page_number":179,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"83270d07-d107-40d1-966f-0babc7446b8e","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative minimum","page_number":179,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"42567483-d1d1-4c43-8da0-7f6b3574f089","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on certain “PABs” issued after August 7, 1986. PABs","page_number":179,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"830c919d-2ecb-423f-be9d-599aac091f34","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally performed by governmental","page_number":179,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"bf12ef44-12a3-4b4a-b7ae-f05ea518ca93","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":179,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"6c9bb5fa-de09-4587-acc7-5941c8df4e3f","block_type":"box","text":"e.g.","page_number":179,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"94b39fc4-6b5c-46ec-b8b1-cccf009c6116","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":179,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"10a9e76d-0660-45f9-809c-c3ffbca72451","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject certain investors in","page_number":179,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"64855063-874c-417d-943f-04ad5dff2ef4","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":179,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"85cd4bdf-6d99-4c1a-8797-516117933c2a","block_type":"box","text":"“PABs” and will report to shareholders after the close of the calendar year the portion of the Fund’s dividends","page_number":179,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"11f4fbaa-1cee-4edb-a5fb-386a0de66b3c","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":179,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"fb7c5f72-0ff4-4370-addf-5b8f94e2c1b9","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":179,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"66260012-9897-4b21-9c32-bca3cef2489d","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":179,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"d40817a3-272e-4577-8d9e-b24b34375090","block_type":"box","text":"such arrangements as ordinary income and to amortize payments made under certain circumstances. Because","page_number":179,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"9673a472-0425-4b6a-8458-457ae4195b57","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":179,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"50899bdf-0fa5-4d63-b792-ad3bf710a852","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income proportionately, they","page_number":179,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"fe7c179f-6678-4bf5-aea4-907dd522a511","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":179,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"dbb65521-528a-48dd-96a9-a7062340931b","block_type":"box","text":"Please see Part I of your Fund’s SAI for certain state tax information relevant to an investment in BlackRock","page_number":179,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"7f080959-fb68-490c-b109-bb37c89a7442","block_type":"box","text":"California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":179,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"fcecb161-0815-4e02-9d43-33e3efe4c354","block_type":"box","text":"Opportunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":179,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"ac51a605-1c9c-4450-ad99-dfe6ce78c165","block_type":"box","text":"within each applicable state.","page_number":179,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"a1e2498d-4f07-44ff-bbe5-20cfadb88855","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Portfolio in","page_number":179,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"991e23f8-13a1-4b97-bf11-715d16115c9c","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":179,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"f817dff9-8cf8-4416-9980-6846c38a6e0a","block_type":"box","text":"investment companies. Each Master Portfolio is classified either as a partnership or a separate disregarded entity","page_number":179,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"381274fa-f8f3-45e8-8515-44ea9d37678b","block_type":"box","text":"(depending on the particular Master Portfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":179,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"c96b3390-98a4-4d55-a02a-811f6d35671b","block_type":"box","text":"to change the classification of a Master Portfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":179,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"e0a32b68-e3a5-4212-85c3-4396447206d1","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":179,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"82775691-83ab-4761-8ba6-6e827faf0ad4","block_type":"box","text":"II-136","page_number":179,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"875254ea-32ff-4da6-bb7b-f66968c86b87","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a8ba0021-f576-462c-b1e1-39b8fd942ec1","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to manage","page_number":180,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"848e0bff-0797-4b8b-8e2d-23dd8afa2873","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":180,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"68d22d69-9440-45a1-82fe-13c0e2e61155","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states exempt","page_number":180,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"60d0eb06-0bbe-4681-8b17-04ff5efafaf8","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":180,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"aa56127b-f06e-4c1c-8adb-d5c5f502953a","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":180,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"0310e762-460a-4c7c-a8e5-f933d7eb1d02","block_type":"box","text":"exempt from state income tax.","page_number":180,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"e0e16f0d-ad7f-4d51-b302-057ac08bf118","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":180,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"0edb1a53-7109-4b91-98d5-d61ba4a29c27","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":180,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"9ec68553-a421-40c7-b5c7-aaaec5396a91","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":180,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"c2fa2c7d-8df6-4811-b89d-f856afe60ed3","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":180,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"0aa03e5f-b2fa-4727-890f-31b80a4c844b","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":180,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"cb6bb61c-5132-488f-afe1-04d1874e3d5c","block_type":"box","text":"court decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":180,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"d7e616c0-17e2-4bfa-ac9b-5f35f016eaaa","block_type":"box","text":"decisions may have a retroactive effect.","page_number":180,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"85975a5b-f6a7-48fa-9819-9830870b17f6","block_type":"box","text":"PERFORMANCE DATA","page_number":180,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"0ac6ea47-c946-46c8-9f87-6f5e29bb9269","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":180,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"ae7c2e30-be49-4365-b498-6011e95609b6","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or prospective","page_number":180,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"44c81974-2557-4ec7-9b23-f1ae9a13cbe8","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical performance and is not","page_number":180,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"e752f098-c9ca-42db-b046-06c4b5fc1077","block_type":"box","text":"intended to indicate future performance. Average annual total return is determined separately for each class of","page_number":180,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"3f908be3-bfa1-413e-954d-895e0025c71b","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":180,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"f6eaf6f7-8178-4eb8-ad14-7c50a8372f97","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":180,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"8eefd609-9a0d-4291-9ee0-400f4d678d00","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":180,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"7ebd5d29-53bd-4dd7-b336-74c662693d3a","block_type":"box","text":"gains or losses on portfolio investments over such periods) that would equate the initial amount invested to the","page_number":180,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"0852e6de-9127-493c-884f-39f2e4857404","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":180,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"ec711249-2eaa-4617-b9c2-8254bdec3a5a","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":180,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"7256eed0-3a18-4ebf-8978-6bcaf7e15c48","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":180,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"9ae44ff7-05f9-4329-8e17-b2fc317ad94f","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":180,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"efb227d3-bf36-4ea8-b689-17b5b731b26b","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":180,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"efce24b5-5831-49fc-b125-328ee3373de1","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":180,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"4b4077f3-ae5d-422d-be46-0a4442b19432","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":180,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"7f81332f-6666-433a-b732-c9729b3958db","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":180,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"c9094269-6bc3-4bf7-be7c-df4d40fe44a8","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":180,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"859f7681-adfc-434f-af16-10ac740a52ff","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":180,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"7f616538-b588-41fc-abd9-7db5c455afe7","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":180,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"00c758af-e1da-461e-89a5-b3b715e53d5f","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":180,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"aeb36a80-1ded-44d3-9544-0f1501982017","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":180,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"947fa691-0a47-4efa-b98c-bf41ddfd1347","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":180,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"c98111c2-a5f6-4d66-9e33-a786707e4cbb","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":180,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"aff5e636-d0a3-4cc6-8260-c4203c61ce55","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":180,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"df6acd0e-1b7f-4e00-8dbc-4d66957f5e38","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":180,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"9baf7add-1a10-4afe-9284-d81b3923e35c","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":180,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"17999249-1bfb-4482-a522-3622ad107143","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":180,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"a19f7c8e-883b-44c5-bf28-1b13a50c9700","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":180,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"94b73e00-9ac9-4b3a-92ff-72fb77c78a99","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":180,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"4f1eab37-58cd-438c-b488-471a031786e4","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":180,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"6afe22b9-b140-44ac-ad5c-79501a3a30af","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":180,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"80e08e7a-dc55-406f-a5ff-e3117f51725e","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":180,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"06ce4b66-6aa6-40a5-894e-93763efbaa80","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":180,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"fa740960-e73d-42bc-a16a-af0c01a44fc4","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":180,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"5e942c04-b53b-410e-a8d1-0cf939363b53","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":180,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"72fb6f8a-16c5-4c2b-ae74-ae6f1f15c122","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":180,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"64f06cd6-516b-49bb-8f62-fd3c75d144c7","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":180,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"02a1e148-c5b1-469b-846a-19562f0863f1","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":180,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"ad484ed0-3de1-472d-acff-fca4a0fa5e2f","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":180,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"5d9e4c82-855e-48ae-90d7-04c0bf521a55","block_type":"box","text":"II-137","page_number":180,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"42e40e1b-289d-42e3-b1a6-d023a249ff0e","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"934fd64a-d636-40f9-8c79-153dbe7a8eaa","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":181,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"cb462eed-db49-4a5d-bd6c-e6d9085d6437","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":181,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"64363970-2b0c-4819-9eb9-ca4f8a3c301f","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":181,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"d1ccbb14-dd16-470b-b61d-1652259d3a36","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":181,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"89f6f124-a6ae-4cb6-8d32-0d83b85bd89c","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":181,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"7830a05a-02a0-4dd2-8230-b4623d785d7a","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":181,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"6821fe6c-5e20-4923-986f-30a6b6635a34","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":181,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"429943fd-8d56-4e3a-8a86-62d89250b749","block_type":"box","text":"performance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":181,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"119570f7-5824-4909-ba64-8b013f4d4e51","block_type":"box","text":"some other amount, for various periods other than those noted in Part I of each Fund’s SAI. Such data will be","page_number":181,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"fa25504b-beb4-4515-8f35-76c693242862","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":181,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"954272b0-9c25-4fff-b89b-3cc75d185cd9","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":181,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"1de067dc-3e23-4867-973a-45fffc04c91c","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":181,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"79246b10-7b8f-413d-95c9-740b199eb418","block_type":"box","text":"performance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":181,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"514c6c16-7251-42a8-9a70-8e91dae0f295","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":181,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"165c5733-b42d-4ad0-a6c0-cb3518e39103","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":181,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"eb094e96-3991-40ba-952e-3a4c32a267eb","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":181,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"56824cf1-258c-4382-8660-fa31070ff882","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":181,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"1dab2478-a4bb-4397-8480-b6d428471acd","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":181,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"a97e692b-a21f-43fc-b020-c2258002509b","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":181,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"481b970f-8c68-4d0c-b4e8-c9844be19844","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the part of a Fund’s yield that is tax-exempt by (b) one","page_number":181,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"3dd2d272-4c8d-424e-b025-53eae39be1cb","block_type":"box","text":"minus a stated tax rate and adding the result to that part, if any, of the Fund’s yield that is not tax-exempt.","page_number":181,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"51fc8386-52bc-4145-9cd1-b9d85675999d","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s portfolio, a","page_number":181,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"c75bad0c-fd48-476c-b8b2-f5e97b40afee","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":181,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"d3641d64-81f8-4a15-8c75-e84e69859f7b","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be worth more or","page_number":181,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"673ddc59-1e46-4084-96f6-2c0973cb80f6","block_type":"box","text":"less than their original cost.","page_number":181,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"f4bae87d-7508-4f60-9630-21c4061e3f70","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":181,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"1edef1ff-3dfc-4fe2-a47e-ec86550a122c","block_type":"box","text":"the case of CDSC shares applicable to certain investors, as described under “Purchase of Shares” and “Redemption","page_number":181,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"69bc290f-d291-4b55-b696-617058c488f1","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in advertisements directed to such investors may","page_number":181,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"de60aa21-1fdd-4257-b7e6-8cdb0af63068","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":181,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"1259f870-e251-413e-a3ff-5a545409efae","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":181,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"27c42df7-b55a-4ed2-bddf-d4ad41d46add","block_type":"box","text":"lower amount of expenses is deducted.","page_number":181,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"496e6443-dfa7-4ed0-ab09-4c5b71838fe2","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark index","page_number":181,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"f81d7dc4-821e-4f06-9061-30dea57eab6d","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":181,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"2597a19b-66dc-47a7-aecc-1f9ad6b56c0a","block_type":"box","text":"indices, or to performance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":181,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"3b4d8a1d-f4ce-49f5-8734-e28bc85abfab","block_type":"box","text":"Money Magazine, U.S.","page_number":181,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"de3c76ea-b5fe-4370-9112-58b9a71c6194","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":181,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"3ac57853-7c91-4b6f-848e-3b1d28f2549b","block_type":"box","text":"or other industry publications. When","page_number":181,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"c62a3650-c1f9-4b83-83d4-e75e0704be0a","block_type":"box","text":"comparing its performance to a market index, a Fund may refer to various statistical measures derived from the","page_number":181,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"6d86388c-7ef5-425b-88ba-fd65b5167428","block_type":"box","text":"historical performance of a Fund and the index, such as standard deviation and beta. As with other performance","page_number":181,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"37446352-570c-4e41-9ff0-a79b0fbd51a2","block_type":"box","text":"data, performance comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":181,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"774702df-afd8-4457-97be-a741bf26cf28","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted performance ratings","page_number":181,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"bccad7db-58d4-40cb-a1b3-6b3eea09633c","block_type":"box","text":"assigned by Morningstar in advertising or supplemental sales literature. From time to time a Fund may quote in","page_number":181,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"1b0c199f-caca-483f-92a6-da8e3578e351","block_type":"box","text":"advertisements or other materials other applicable measures of Fund performance and may also make reference to","page_number":181,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"3425ca76-168a-4c0c-a7c8-176f16112465","block_type":"box","text":"awards that may be given to the Manager. Certain Funds may also compare their performance to composite indices","page_number":181,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"1c54ff77-0f06-4d06-b9eb-8b1e6d7cc411","block_type":"box","text":"developed by Fund management.","page_number":181,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"15902db1-39ff-4db2-bc6a-d6febbaf320d","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":181,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"3e4d5321-f337-4d1c-998d-b0ca098328b0","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":181,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"feb8b844-fc10-497a-b0d0-1b2a57f26fac","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":181,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"c3625cda-f712-497d-b672-bfe1970f74e4","block_type":"box","text":"and risk tolerance, discussion of a Fund’s portfolio composition, investment philosophy, strategy or investment","page_number":181,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"acc00baf-2ce2-4abe-a023-dc64d7c04ab4","block_type":"box","text":"techniques, comparisons of the Fund’s performance or portfolio composition to that of other funds or types of","page_number":181,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"9d274fe4-6fbb-49c0-a93b-d43ef0d1ebf9","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model portfolio. A Fund may also","page_number":181,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"2d56db10-e580-4863-927a-de00aa913037","block_type":"box","text":"quote various measures of volatility and benchmark correlation in advertising and other materials, and may compare","page_number":181,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"6c011497-84ed-42b0-b93d-25332a6ca531","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":181,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"cb06672a-80f0-4d1a-9104-26e900ffa5d6","block_type":"box","text":"II-138","page_number":181,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"999196e6-1bd2-4cab-9e29-fc2d6b1a0bfb","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"78e388f0-ed6e-475c-bd76-b59215141c71","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":182,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"f2bcc241-b21e-4b17-9204-6191cb2fd1ec","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":182,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"292a1880-ad0f-4da8-b8a2-bafac4603dc6","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":182,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"d413099b-6389-4c95-8d43-862f9792c020","block_type":"box","text":"Policy”), with respect to certain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to certain other","page_number":182,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"253b07d9-ab54-440b-8dbb-2f2e03e9152d","block_type":"box","text":"Funds, as applicable. Please refer to Part I of this SAI, which discloses the policy applicable to each Fund.","page_number":182,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"735dbefa-415c-4e8e-93da-17c305f2521d","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":182,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"1a720b7a-24c7-4a6e-8009-5e80b69cfa8c","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Certain of such","page_number":182,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"fd8b383f-531b-4646-a901-2e391bde8933","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Part I of this SAI, follow supplemental","page_number":182,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"6635050f-18a0-4d34-bfc8-722a7c649f5e","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to certain climate and decarbonization issues (the “BAIS","page_number":182,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"e781e3a0-7a52-42dd-abb0-2b068a44e88b","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":182,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"81704a10-f49f-4245-bfb1-999752dc2870","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":182,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"22ee1bc9-5ce5-4e37-8e77-ae4c4b5bbf15","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":182,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"85f1106a-5cc3-43dd-969a-5f77399983ce","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":182,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"9056ee28-9fff-45e3-a9f8-78b651f07bc2","block_type":"box","text":"addition, certain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Part I of","page_number":182,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"6f49dbc5-9eb2-4c00-b412-139fad82091a","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to certain climate and decarbonization issues (the “BIS","page_number":182,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"66fc3d4c-8729-483b-8920-26c5d72e146b","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":182,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"ca1c30ba-c9c4-4157-91d5-8117aaff1222","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":182,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"8600cfd5-3487-42ac-8d04-dcca53cd284f","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":182,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"700dd525-79d3-4916-b140-bfda82f1bc36","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":182,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"4cdfea44-3e8b-4e32-882d-cb7a2da70f29","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":182,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"61166632-1972-4920-9004-85bd71925ec3","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":182,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"e594869b-0d45-49a8-839e-854c5ef16106","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":182,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"f5db55a3-2021-4482-8e42-51b58e54bd18","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a particular Fund pursuant to the","page_number":182,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"decb2438-308c-494b-b054-ea1317f47584","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a part of the","page_number":182,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"e9530d73-ee2b-40e4-84fb-5c3461bb7283","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to portfolio securities during the most recent 12-","page_number":182,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"15c1f9b8-c29c-4092-bbb5-b6d6f1218731","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":182,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"953b1695-5503-45e7-afaf-cca971543cba","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":182,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"262fbab0-e906-401d-9cd2-a6be3043c31c","block_type":"box","text":"GENERAL INFORMATION","page_number":182,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"912e91a1-9a26-4c51-9c65-ef6f5f71a1d6","block_type":"box","text":"Description of Shares","page_number":182,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"142a4d88-1042-481d-9992-17ea401363ac","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":182,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"037db18c-a7fa-4e8d-b24c-093c11b1e723","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":182,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"299a6d3c-ff35-4197-95ec-fa2e968b0660","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":182,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"1efc6ae2-27a1-4b37-8397-38ddc880fb8d","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":182,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"216746f1-306f-49ff-9863-9e63b6a39930","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":182,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"aec78bf3-d1d0-429c-886f-10365c0ebc64","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":182,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"14c061c3-a78c-4065-9dbd-9415405a9742","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":182,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"648730c9-c5f3-4d8a-859d-6a6871a31b6d","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":182,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"f4f93126-9cd3-4c45-a9b7-6fb1dcd4d110","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":182,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"36cbcedb-2c42-457f-aa4d-844b7f6440b5","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":182,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"c67a66f9-2844-430a-b1e9-5c3318d862ad","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":182,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"bacdb5c5-b3f8-44e2-8eef-a339a52e1081","block_type":"box","text":"Common Stock is entitled to participate equally in dividends and distributions declared by a Fund and in the net","page_number":182,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"218c32f5-75cb-41ab-8644-0d8cc65d8c49","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":182,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"9747d9d4-2b84-44e3-9912-271978ff0185","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":182,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"4bf9cfe1-824d-4b27-97bf-a9fb0ee48dba","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":182,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"83f9c143-6767-4ced-ba60-1cc91feb7d5b","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":182,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"9cf8be99-200e-48f5-9d90-24d573841a6a","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":182,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"59b4936f-43b3-4ab9-9d92-5484914b1bf5","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for its","page_number":182,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"d1768cf1-5dcb-49cc-b774-9018ee73a27d","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":182,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"288373cc-7ec6-4d5b-ac40-a34db8e2e936","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":182,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"d8a00ec4-fc64-416c-b47e-742bb426ffce","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":182,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"5f2d039c-9b5f-4694-b632-da64c9366a23","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust property for any","page_number":182,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"b6018cb8-9bbf-444b-b9a4-f2599e3eeca8","block_type":"box","text":"II-139","page_number":182,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"28783f0c-4fa4-42ce-b608-e4bd68aa7072","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fda2716a-6678-416e-b892-ce0825e60ca1","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":183,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"b5ef2673-ed38-4a65-a487-444775e9d131","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":183,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"ce10fce1-50fe-416b-8523-fde7142a180c","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":183,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"d1c1692c-e1b5-4b22-8519-50d22672bd6c","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":183,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"a5daf04d-9943-47f0-bf66-010c909f7dbe","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":183,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"bc8c5ecb-70a0-40b2-b0f1-6d41be509c8d","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":183,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"e1da2a8f-9ffd-45be-ac63-89e9cad15a85","block_type":"box","text":"Additional Information","page_number":183,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"9ccd8eaa-d1e3-488c-a847-51ce0c6b4aae","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock” name and","page_number":183,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"a4f912c4-bd4a-44bb-a94a-e8b5c92026a4","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":183,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"85301298-953f-462e-933a-54a347768797","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":183,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"67a13f5b-d7ea-4812-aa49-f7a636fb75cb","block_type":"box","text":"such name to any other company.","page_number":183,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"47d0811c-e4f8-4f2c-8d9d-718e6b8d635d","block_type":"box","text":"II-140","page_number":183,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"42af3fa5-fd48-48c9-afa0-4637b968574f","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6e8d161d-e4cf-4fee-9692-82f6ecc351de","block_type":"box","text":"APPENDIX A","page_number":184,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"f78377d5-3506-45ea-97cd-b5cfaf99305d","block_type":"box","text":"Description of Bond Ratings","page_number":184,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"919abd4e-945b-4d96-8f0a-e6a8a0e2f2d4","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":184,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"78ac900a-cd92-44b6-9905-a306ce04edaf","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":184,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"295405fe-0a65-45f2-ac0a-e13d1ea3eb5d","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they undertake no obligation to do","page_number":184,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"9465a55b-5576-46f3-919d-2fe9ccae220d","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":184,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"e420f371-d447-409a-9cda-3e70ddaa6cfb","block_type":"box","text":"securities on a particular subsequent date.","page_number":184,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"11e63ca3-dd63-49c8-929a-9c0e307210f7","block_type":"box","text":"NRSROs may rate specific investments (","page_number":184,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"aec44e01-2b40-4de3-9967-76ad5275dbd7","block_type":"box","text":"e.g.","page_number":184,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"1bbb9bcc-7242-4665-88c5-74049949b8c5","block_type":"box","text":", bonds), issuers (","page_number":184,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"5da1a617-3d60-43c3-823b-ef8c28ef4073","block_type":"box","text":"e.g.","page_number":184,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"aef58c62-a1d9-47d5-a82c-41504fea09e0","block_type":"box","text":", corporations, governments and financial","page_number":184,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"b974cc55-0503-490a-9ae1-92154d777e52","block_type":"box","text":"institutions) and/or programs (","page_number":184,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"2e661546-84a6-44ad-9160-84a75c1fe1ff","block_type":"box","text":"e.g.","page_number":184,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"5dfd56bd-704c-4889-94d1-115328ab9444","block_type":"box","text":", commercial paper programs). However, certain types of investments may not be","page_number":184,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"9722f2c8-8d30-47cf-922b-e14c878b01c3","block_type":"box","text":"rated by NRSROs, such as certain government/sovereign obligations, US agency securities, commercial paper, time","page_number":184,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"0e46c2f2-dc52-4f06-a603-68d5f30aa05f","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":184,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"9dc85642-71b2-443f-a1c4-7868a0a21a60","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":184,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"18a9a67e-2865-46be-a9bf-dacd2eceb2f0","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":184,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"e51ea20d-8cb3-4b4d-afd5-2ed2e90e98ee","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":184,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"e28d14f9-faec-4f1f-97bb-d961f32e40cc","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":184,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"aaffdb01-6bbe-4ddd-b2bb-71795a1d43a6","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":184,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"f34c6151-9879-443a-823a-fe683371d6e9","block_type":"box","text":"security (","page_number":184,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"3a66acc4-b148-4719-aec7-5ca808c12794","block_type":"box","text":"e.g.","page_number":184,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"7d4bad32-d60a-4371-8ca9-5da4bfbfc684","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":184,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"a04f38dc-c382-42a6-8717-6f6c75fca53b","block_type":"box","text":"highest of the multiple ratings.","page_number":184,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"aa342dc3-0e15-4731-b39f-e23f952d4081","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":184,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"555244c8-5c50-41a2-8081-e59c4a5cf6f0","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":184,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"7500a83a-6d28-4430-a335-9f7d7881c5eb","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":184,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"6212e78d-54ee-4f64-9b6e-9241dd9664ad","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":184,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"b462ac8b-0f64-483e-b1ee-024625edcbca","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set forth in the","page_number":184,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"060a82a3-7af0-4164-9eea-5bf699cbf34b","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set forth in","page_number":184,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"b265b7a9-3b0a-4be5-b9af-4fbd2507c10a","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":184,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"a6fe8581-80dd-438e-888f-dee5798b718c","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":184,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"0c57ed57-df68-4f23-a576-f6e97cd3f320","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit ratings","page_number":184,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"cee48668-5c9f-4c52-8c00-cf18bcf2db23","block_type":"box","text":"eligibility criteria as part of its index methodology, the fund may purchase any security within the index, such security","page_number":184,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"1529fe16-9891-4108-9425-7aee64acdfa7","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":184,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"b6ac5400-2437-4fa1-8614-49d7fa7a9af7","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Further, the fund may","page_number":184,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"6485d4d1-fd30-4470-ae7c-c555c18983bf","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":184,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"f51101c4-f9e2-498f-8b8a-81a63ffb0711","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":184,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"d14922b0-d80a-421d-a4c7-b57b7921bcc2","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":184,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"88afc215-ac75-4551-9237-39820758c8aa","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":184,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"4856a261-aac2-43ce-805c-e08d78f61542","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":184,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"576d4e43-cc47-4dcc-b70e-4cf879f357fc","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":184,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"0679663c-dafe-4a3b-8508-a56003084739","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":184,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"e251a743-211f-49e5-88d7-d9a1a7e84264","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":184,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"c11c6cd0-fd81-40f8-8e20-befc93cf0e9d","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":184,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"5cc16dae-1669-4d63-b3d0-4e23d24b5309","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":184,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"2de888ae-6016-4aaf-a6b5-0c91af4292fa","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":184,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"200c6567-997a-4366-9b15-02dceeca8200","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":184,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"4b5a07e9-aff7-47c8-811a-3f33a20695ea","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":184,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"9f00dad7-1b02-49e0-9f9c-e88a5c076e63","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":184,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"61725162-abf9-4533-8b3f-f5aa9ff9401f","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":184,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"31f41cb1-db16-440b-ad54-289f661ea8a9","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and short-term rating scales and are forward-looking","page_number":184,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"a538b14d-8359-436c-b389-502098ad243d","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":184,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"cd9eb21d-063e-4e83-9914-1df5985cdfe4","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":184,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"bf2ee0d8-12b1-410a-b0c1-5839819c58a1","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":184,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"cba870e1-3d54-4a15-9358-47eb3bc1ea4c","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":184,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"7775aadc-c057-478a-9696-40a0385fc17e","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascertainable amount, which may vary based","page_number":184,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"888ef382-619b-49fd-adad-b0389a59c9f3","block_type":"box","text":"upon standard sources of variation (","page_number":184,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"fd987b88-623b-4043-80b7-0a5d479bfd95","block_type":"box","text":"e.g.","page_number":184,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"571cb05b-a4d1-45f8-ba1c-0a9c1e780c1b","block_type":"box","text":", floating interest rates), by an ascertainable date. Moody’s rating addresses","page_number":184,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"2bba6921-3a69-451e-9ebb-1b99acea94d0","block_type":"box","text":"A-1","page_number":184,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"0435db28-1005-445b-9155-0958363ad1b9","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"40540c8a-7d7b-417a-ba5a-72b8d87a13c8","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":185,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"678d948a-d097-4004-b54e-6d5b9aa16b72","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":185,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"c6d75b5b-aca3-451a-b5eb-3f9d1cf126ae","block_type":"box","text":"e.g.","page_number":185,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"f7114a65-f30d-47f2-b41f-e015d38b745a","block_type":"box","text":", equity indexed), absent","page_number":185,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"3aef8b89-5de9-481c-a3bb-0bbdf9f95a39","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":185,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"5720660d-6c3f-489a-9dde-114bed686810","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":185,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"1b860f30-37d6-4298-a937-a751f3b88d3e","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":185,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"8f5e2b18-ec9f-415a-9cb7-0a94a6940b14","block_type":"box","text":"the event of default or impairment. Short-term ratings are assigned for obligations with an original maturity of thirteen","page_number":185,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"ab963251-a6dd-4404-8024-19bd4d101592","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":185,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"556f1b7f-314e-4270-80b3-f9d9c2b8b1e5","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":185,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"27011c2d-354d-4411-9bc1-27579ca06c73","block_type":"box","text":"and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made publicly","page_number":185,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"d4fa6103-4cbc-4221-b311-230c4e2015ba","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":185,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"b2dd27f1-7af8-4769-8e9f-bfff4cc9dffd","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":185,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"fd9f3abe-9a47-400f-8fc6-8ad26768c42d","block_type":"box","text":"i.e.","page_number":185,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"2e62bb6c-88cb-4a2a-a1a3-ad174c22230f","block_type":"box","text":", ratings on nonfinancial","page_number":185,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"344c69e4-3549-4c2b-87dd-3d7e14178aed","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":185,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"ad598a5c-ba05-4d8b-b306-9ebf9e7b15eb","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":185,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"9a8a5c6a-3acd-40dc-9539-b37bfa2cbddf","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":185,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"82ab8df8-b5d7-47e8-93c6-941c9690d50e","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":185,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"c452358c-036b-4434-86a5-99829b3b7069","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":185,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"7403f81e-68b3-4bdf-92c5-d7637eb4d9b0","block_type":"box","text":"expected equivalence in structured finance and fundamental rating performance when measured over a long period","page_number":185,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"35ed696c-867f-46ff-919d-67a0bfc732e3","block_type":"box","text":"of time.","page_number":185,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"4b2ff3cd-1695-4e71-ae71-5389e4b7055e","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":185,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"1732c175-770b-415e-b8ed-15b75d0c6daf","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":185,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"0523d115-84b0-4283-b934-0d452241605a","block_type":"box","text":"risk.","page_number":185,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"5ef91b0e-2024-4723-a157-b2538f04de02","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":185,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"856aac9d-cb5e-4cb1-a5e9-c6d280e1fb96","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":185,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"c04a83f1-f4cf-40df-8405-8cab5922a00f","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":185,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"646d3aa6-c5d5-40f4-bb96-6d4e565ca987","block_type":"box","text":"such may possess certain speculative characteristics.","page_number":185,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"4ed7cb50-8ae3-4b3b-b83b-64cc4d3347fc","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":185,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"4ad02d8c-3d3b-4627-a0f5-82404635f661","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":185,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"52fc1e00-e79d-40a7-bd40-26d381c24110","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":185,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"154482a3-7081-4bf4-8a78-d49ab2cc08ca","block_type":"box","text":"credit risk.","page_number":185,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"b63f8e9d-9672-4ee1-abd1-3c68ad0e98f6","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":185,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"190d0d55-dc7c-4c15-a0cf-76b5c48dfc72","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":185,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"a968d5e1-96c3-41c3-89fb-adcc58c11af9","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":185,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"65f66f92-9e3c-4592-99d3-4d3186f9b75e","block_type":"box","text":"of principal or interest.","page_number":185,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"d1538596-5d69-4e2b-9438-1a0008554a67","block_type":"box","text":"Note:","page_number":185,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"31a0db31-4cb1-4d19-a003-a5a443f14d6c","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":185,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"58d3600e-2d0e-453a-8620-060a50b74d90","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":185,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"504f5b4e-7914-41ab-8b79-b4c8ff795812","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":185,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"29283f87-5573-432a-8019-f1840b44cd94","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":185,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"b04c4126-7609-4a6c-909b-9e8518a66bcd","block_type":"box","text":"companies, and securities firms.","page_number":185,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"de3f398b-50b1-4e87-bc47-d1508a3ba760","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":185,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"de662b12-fadb-4b7f-9df4-5205cadce84b","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":185,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"43a0dbe9-6dd5-4325-8213-c32856f7a87b","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":185,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"d4d37c48-c96e-4b3e-89cd-72d42bab7fd0","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":185,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"265c746b-6b23-42a7-bb0b-0b9e4f730d3f","block_type":"box","text":"that security.","page_number":185,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"3cee74f3-da50-4014-8899-94e68a305295","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":185,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"582163b7-a68b-4b65-9387-90a10619ad1b","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":185,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"b2229690-9807-4c83-a3e9-e562dadad634","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":185,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"a69e15f1-e9b7-4c54-bcdc-3d44b350569e","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":185,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"47119114-e750-4e2e-b904-50e53f1251b6","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":185,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"66910086-d606-4dc4-9f93-9aa8582209d0","block_type":"box","text":"categories.","page_number":185,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"c364d8e9-fb2d-4901-84fa-a36900d3c3f6","block_type":"box","text":"A-2","page_number":185,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"17570923-898d-4fe1-b872-041c2ba669ca","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0ab7bf60-1090-46a8-bbfa-9cc99988ae82","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":186,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"e5bbc73a-93b5-4a73-b9b4-a92a5822ac92","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":186,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"bea843b7-4dff-438e-8024-12f728a41ade","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":186,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"988df761-51d9-4a94-8ddc-1260ee709025","block_type":"box","text":"an issuer’s self-liquidity.","page_number":186,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"a5d6a81e-b9d6-461a-be2b-b66a454d9e79","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":186,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"5799e9b0-ffd8-4677-a939-7171b5f582c7","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":186,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"ea497597-51b4-447c-9ce5-83d3e651d2ac","block_type":"box","text":"MIG Ratings","page_number":186,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"558a84a0-31aa-4ddd-bc6b-764d2f87ab80","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain other short","page_number":186,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"9e023e78-220e-425a-bd84-0812d5dc2ffb","block_type":"box","text":"term obligations, which typically mature in three years or less. Under certain circumstances, Moody’s uses the MIG","page_number":186,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"a890ed71-5308-461f-922b-e3ba238f199f","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":186,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"5a5f3766-71f2-42fd-8090-c649f36609c5","block_type":"box","text":"MIG Scale","page_number":186,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"f8bfeaee-9460-4aba-aa1d-3c64f5301d7e","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":186,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"9c474e92-b37a-4f6f-93f7-43a6749bad84","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":186,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"2f8265cc-caa9-48d6-ac14-0b444d737064","block_type":"box","text":"refinancing.","page_number":186,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"2634fd18-af3c-49b8-a7ff-6c92b05198b2","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":186,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"579703e4-7de8-4643-a940-a87867736cfa","block_type":"box","text":"large as in the preceding group.","page_number":186,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"ba3148fc-21ea-4183-8bca-cd4264d514bb","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":186,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"ddef527d-7209-437d-beb3-2f1072bbec9d","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":186,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"22e30c18-dc9b-4892-9a0f-cc0a7ef78ac9","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":186,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"7f4d1cb2-afc9-423a-a62b-37b3cb6fdc75","block_type":"box","text":"lack sufficient margins of protection.","page_number":186,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"b73fb525-9526-4d99-9244-50a9142230b8","block_type":"box","text":"VMIG Ratings","page_number":186,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"7d0062a3-20ae-4d0d-9929-7bc2a1bf050c","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":186,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"fde7025d-50bd-4007-89c2-e28093bb43de","block_type":"box","text":"are a long-term rating and a short-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":186,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"e40fff18-cbab-40b4-b5dc-01cc7759575c","block_type":"box","text":"to meet scheduled principal and interest payments. The short-term payment obligation rating addresses the ability of","page_number":186,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"65da78f1-044c-468d-adbe-884d3065f593","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":186,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"9a975eed-d28e-4578-b023-478ab25c2a56","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The short-term demand obligation rating uses the VMIG scale.","page_number":186,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"333a470d-6461-4933-93e0-73a79b0d2fec","block_type":"box","text":"VMIG ratings with liquidity support use as an input the short-term Counterparty Risk Assessment of the support","page_number":186,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"189d9978-b684-4c76-bf7d-14a252d58f72","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third party liquidity support. Transitions of","page_number":186,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"60e5a072-e9e3-4ba0-8c88-bf0cb8f37d52","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity support differ from transitions on the Prime scale to","page_number":186,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"a1fd21c6-b717-4408-9c33-08fb39b4f797","block_type":"box","text":"reflect the risk that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":186,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"4570da24-01a8-4bcb-82d5-9aa7693325f0","block_type":"box","text":"grade.","page_number":186,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"f17cb6d6-fbb4-4479-88c7-1154b4d864bc","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand feature is","page_number":186,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"8dd60acd-fb86-4a17-9c64-5dc1024d4677","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":186,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"4b2bdea2-f84c-4591-9c9e-73c835c4f62e","block_type":"box","text":"payable only with remarketing proceeds, the short-term demand obligation rating is “NR”.","page_number":186,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"9eb4baee-e841-43b6-9bb0-6f38425537f7","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":186,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"3862d3ad-55cf-49f5-a094-ecc8d9a2486f","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":186,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"ad89e60f-a4db-4f46-8619-e43eef11c9c3","block_type":"box","text":"liquidity of the corporate obligor.","page_number":186,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"9b2b0d5a-9f0a-420a-905a-1d9c98a12978","block_type":"box","text":"VMIG Scale","page_number":186,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"0ed48db7-ee8f-469e-8606-cc755ccc9486","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":186,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"8ad66484-9dad-4692-af20-00c795aa7179","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections.","page_number":186,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"6e21e6fc-db50-4a9a-89ff-9c9abdc67479","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":186,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"9f796696-cb6d-4890-addb-6cbdae711692","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":186,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"6735861d-ccb3-4b7d-a046-569749ca796c","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":186,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"a23ec4c1-f7b6-4ee2-94e6-72cbbaa28ed0","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal protections.","page_number":186,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"5bdb6592-9131-4bac-8133-00ac3c966b96","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":186,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"0aaf1982-78bd-459f-82a3-fdc2bb53ad7d","block_type":"box","text":"may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or","page_number":186,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"36c46045-55df-4cb0-98e6-6360ace16a8e","block_type":"box","text":"may lack the structural or legal protections.","page_number":186,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"835e3bd8-88bf-4959-b2be-5e89c75abd99","block_type":"box","text":"A-3","page_number":186,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"34b501e9-d8bf-4e31-a448-213536d51fec","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":186,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"40cdad8c-803b-40cf-960e-08e3eca15831","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":187,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"074d0c51-9b52-4cfb-9896-78b5c989a208","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with respect to a","page_number":187,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"fa4152a7-857c-46b4-bfed-f82ec9c3e43a","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":187,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"76be568f-64bf-48cb-a462-3406234e8e6f","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of","page_number":187,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"3dee7a9e-f4a4-4ec5-a425-817ada14245d","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":187,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"27c7e850-7016-4097-ba1a-8a18f4c1342b","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":187,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"e8884882-9152-4746-b0b1-def31184a131","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":187,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"c3febc75-67bf-4dd2-a8a3-943692cfec93","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":187,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"883abc10-ffc0-4e6c-9474-64420422aeb7","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally assigned","page_number":187,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"6409a423-4a76-4aa7-ab44-33943109bf0d","block_type":"box","text":"to those obligations considered short-term in the relevant market, typically with an original maturity of no more than","page_number":187,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"a439f490-169b-4c5c-9f2c-fa606518195c","block_type":"box","text":"365 days. Short-term issue credit ratings are also used to indicate the creditworthiness of an obligor with respect to","page_number":187,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"2fcfc2b8-aa41-4dc3-a99b-5b07cc4f1989","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":187,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"7ec6e3be-9622-49e7-9fe3-38a3d05b6aae","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to certain instruments may diverge","page_number":187,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"d954cd32-bfc9-406a-9614-e38312a3c4fa","block_type":"box","text":"from these guidelines based on market practices.","page_number":187,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"e7014f50-dbf8-443a-be32-ac155476fc6d","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":187,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"e2b3e18e-4bef-447e-bcb3-324f061ef0d6","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"7edf4656-8115-4d0c-b6c4-b2608ecf83da","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":187,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"cf94dfcc-21f5-4554-8987-ed63f836728c","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":187,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"0040f472-b234-4855-a216-922b499638ac","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"d27d23bd-d459-4600-bb2d-640420253cca","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":187,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"07df35c9-79dc-4084-a790-4e17e6d1b655","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"6cf96d3e-4ebe-4b83-bc9e-c439683226ce","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":187,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"f0027381-734e-45f8-8036-7c83cba30197","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":187,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"aa8f46c7-867e-406e-8256-53624bd3df64","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":187,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"5ef7ff47-0de4-481b-a7f2-ecb0a1dd32f7","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":187,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"e063a90b-e151-472a-ac66-6fbe9957ae29","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":187,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"0e6e4b13-708e-4ae6-a04e-1193dfe2e372","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":187,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"8eb577ab-d7c5-45b9-90c7-1cef55a523c3","block_type":"box","text":"obligations.)","page_number":187,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"dfb86242-15c1-457b-8621-1b93a52b2c49","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":187,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"e935bd5f-3a2d-432e-9d0a-b4bf80a289ac","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":187,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"dae73195-6cce-4450-b2b0-60cf8772c812","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":187,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"2833dedc-80e9-4cce-b4af-b90ad22d7724","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":187,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"bbbb8ffa-c75c-49d1-8804-5ca60e792f98","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":187,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"f7e6799e-3ec8-42a2-a561-515c6ebf65d2","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":187,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"f5700ff4-adb7-4011-8d05-b76a4b5417e0","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":187,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"89e6abad-234c-487e-b206-0a6fa1b84a2f","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":187,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"ec1c11d6-d411-4d98-af85-166904b5c08b","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":187,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"187e4b98-bae0-44d9-b75d-768cbca65108","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":187,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"72241c80-44ba-4b11-9c77-8602c2a2f308","block_type":"box","text":"financial commitments on the obligation.","page_number":187,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"9fb38a45-4233-4ad3-a7ed-cfb6d5deea22","block_type":"box","text":"BB,","page_number":187,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"f038d95d-d6bf-41e4-8a30-6ab0f6b96236","block_type":"box","text":"B,","page_number":187,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"195bb5d9-8cf2-420d-b29f-5ed32cc5d307","block_type":"box","text":"CCC,","page_number":187,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"a99bcdf2-30be-4538-ab64-2054e3d3c6ac","block_type":"box","text":"CC,","page_number":187,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"9aa8fdb4-dab3-4ab8-9756-0f68e98a9637","block_type":"box","text":"and C","page_number":187,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"e9448676-5585-45e0-be6b-deb58297e4ed","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":187,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"1ebf427f-b1a9-4fab-8eaa-f596ce4166c3","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":187,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"85c1481d-642c-4dfe-9be3-001d9d170618","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":187,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"f497ff55-aead-4660-840e-bd51acfc85ec","block_type":"box","text":"large uncertainties or major exposure to adverse conditions.","page_number":187,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"6e919317-0bbd-4bd5-aabd-e5ae281b95db","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":187,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"6206bd72-6953-4958-9ab0-9b9f8b6b0de7","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic","page_number":187,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"87962d94-ebe2-485f-bc17-60731cbda1dd","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":187,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"21cfabfe-46cc-457c-9dd5-d8287cf21d87","block_type":"box","text":"on the obligation.","page_number":187,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"d3326dc0-9f81-4eb4-8d33-736daa9dde8e","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":187,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"298bcf63-5a10-46ec-9272-36faa9822c3f","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":187,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"881b7905-0989-469e-a1f7-0a58ad728722","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":187,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"43832f2b-eb8e-4f0f-9c95-c67376ad1ce4","block_type":"box","text":"financial commitments on the obligation.","page_number":187,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"7a1b9d4e-ee99-47f0-a455-96d1cb0a8f48","block_type":"box","text":"A-4","page_number":187,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"e52fd887-a581-4258-85e2-c2f6d91a97cb","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":187,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a24a02c8-a8b3-4b57-926f-079691f12c26","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":188,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"da7cbc8d-e87b-42cf-9cf0-b010b30070e8","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":188,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"0e78b028-1d7e-4023-9610-140503524fe7","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":188,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"1430eefd-7e3b-4525-9a58-bfcfc5cad7d5","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":188,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"c8d3f5ac-a60f-4e09-be1c-45233e14281d","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":188,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"8c1d93f3-9c2e-460a-a395-8eb1f9d4a2d4","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a virtual certainty, regardless of the","page_number":188,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"70877446-bf44-4a6d-9295-d91a68b550d9","block_type":"box","text":"anticipated time to default.","page_number":188,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"49c49594-ecff-49e5-b149-7f9f429bfba6","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":188,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"0a5cc663-a9d7-40cb-8644-424177f1d4ad","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":188,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"95cddbe4-dbec-47cb-a224-4baa6b2b7e42","block_type":"box","text":"higher.","page_number":188,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"fce61f7c-7005-4781-91de-aabd9a893044","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":188,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"661ab063-4794-48ea-9fc7-a7e78efc0911","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":188,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"ce6fba46-8d7a-4617-a5ab-d3ec7c2871cc","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":188,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"0aefbebc-56b9-4ce7-a446-3762c025850b","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":188,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"a6bc336e-9f9b-41a7-8f56-27e5e2b79a48","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":188,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"15df6f57-ab80-4d37-82df-da456764e67b","block_type":"box","text":"action and where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":188,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"86b739a6-9fe6-4965-9a9a-051029848ba2","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":188,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"9181774e-775e-40b9-a68e-66f91f0f9082","block_type":"box","text":"restructuring.","page_number":188,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"d3e4a2f8-f542-4454-ae87-89e6d824382d","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":188,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"e03ff7e4-1288-425f-8988-0d4e9ccb27e4","block_type":"box","text":"standing within the rating categories.","page_number":188,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"2f54b23f-db7a-40b8-ad31-36ae22e55ce1","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":188,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"4cbbbdbf-9ce1-44cd-9f55-cc98b65a1709","block_type":"box","text":"A-1 A short-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":188,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"1b4245fb-dca5-49e5-a143-5e1c60d35daf","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations","page_number":188,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"68d6838b-2330-4e79-8d58-8366dd90c142","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":188,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"21d80221-4930-4b95-b029-3ad804847cf2","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":188,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"88c7f596-8fef-4d18-9793-242b50f9b72b","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":188,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"ea0311db-0895-4d03-a617-1dae89724841","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":188,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"28e6a7e0-23c6-4b1b-9ef6-d24b95910767","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":188,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"e0e11522-6317-4969-a0ae-5b05862236d7","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":188,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"88c513ef-70bc-4c5a-885e-396075023267","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":188,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"1f5925e4-2a01-4225-8939-175680d27b46","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":188,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"f7792a7f-2c01-4f30-90e8-31f8cc4a3800","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":188,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"d4276351-fe7d-4022-966c-85b154d3b3f1","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":188,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"bda8dda2-efa0-4876-95c4-e2af230214b1","block_type":"box","text":"it faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":188,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"7fc15545-8679-4df1-8665-2d256652ae4f","block_type":"box","text":"financial commitments.","page_number":188,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"66e8c2b6-6857-45e0-9311-6026fdb8fbf8","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":188,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"de39d150-48c7-4bdc-9c2e-31adf31e8e48","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":188,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"9b83634e-16b1-446b-9e44-6d3fcc1465eb","block_type":"box","text":"commitments on the obligation.","page_number":188,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"e6832b2c-15a8-4db3-a730-785350f869e9","block_type":"box","text":"D A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":188,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"dd4c32f4-09d0-4a7b-a780-ba32ec5636ea","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":188,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"2e48ec74-1cb4-4552-b7ef-f6bbf6951ed9","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":188,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"4ed89382-38f9-429b-8f34-3e265abf9401","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":188,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"a95e47a2-7d91-44b1-bc0a-595559b5b097","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":188,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"c4a3ee35-fff4-438a-b127-edfc764d73ab","block_type":"box","text":"of a similar action and where default on an obligation is a virtual certainty, for example due to","page_number":188,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"328f161f-dff3-4f91-9365-9bbbbfcb841f","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":188,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"0c4ca706-82b4-4110-874c-fca224b2a38e","block_type":"box","text":"debt restructuring.","page_number":188,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"1eac7761-8d91-4b45-b97c-de062ea33a1b","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":188,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"f07cffc8-b186-4b59-bf3f-dbbe63d55d34","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":188,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"1ab48613-7b52-4144-8656-0cad4aac0d2c","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":188,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"48f9b65f-9b94-42d0-a3a1-953dd992c9ae","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":188,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"0f7cc582-28cb-4b1b-bb4d-a21d139848ea","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":188,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"63c42ab6-0965-4dd5-b55f-88a5c7eac25d","block_type":"box","text":"A-5","page_number":188,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"4ade2479-196e-4569-9384-78654c1219b5","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":188,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bc0c8e8c-2968-4731-978a-eb071ff65b6c","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"1a94cd8c-8288-4d57-935f-1a868b0c545a","block_type":"box","text":"Amortization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":189,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"dd8cfdc1-f00e-42e5-b868-9c55916ef683","block_type":"box","text":"as a note; and","page_number":189,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"e3bae285-9625-464f-9d4a-4587389340c4","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"8f4fd0e3-24bd-4aed-a0ed-5d13afd8d814","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":189,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"11439ad6-abe6-4094-a19c-b573fa19abcc","block_type":"box","text":"treated as a note.","page_number":189,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"82a27fd0-13ef-44db-b25d-517a880dd41c","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":189,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"77caba93-4461-47e7-a3fa-5016438462ca","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":189,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"cd3dcb64-7f4c-4b25-aada-b8a9d531fa6f","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":189,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"a4d1d10a-16f9-49d9-9e2f-61996d83d994","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":189,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"9ede20c3-f431-4e0f-b47d-621087d427c4","block_type":"box","text":"economic changes over the term of the notes.","page_number":189,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"2761cac2-d81d-4885-b430-bb03246ecb62","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":189,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"5e71ab93-e1ca-460c-b8ef-2a56db6966d5","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":189,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"030fcd74-fcbc-4d0f-a8b3-cffab96c2e86","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":189,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"912c28e6-a76c-4681-a52d-8a14c1183248","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":189,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"d31e02ab-1ce7-473a-b637-0a7e16bc3c2f","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":189,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"5d314fa0-ccb9-4832-8a73-5397e3b6a598","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":189,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"d5f8e078-422c-4b92-9bf9-1d3825460afb","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":189,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"4382dd2c-c960-4f55-9332-586e3c9989fe","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":189,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"b74e72d7-f2d9-4c61-9fac-c67e2aae4b6c","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":189,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"9506c32f-28a2-4c74-a7e6-38c3590b58f3","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":189,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"c75cf08e-cdf5-4993-a432-d2112050ca27","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":189,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"5a91e536-318f-4a58-bb98-e28cede4ccbb","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":189,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"1cbc9556-dbc2-4830-8498-6e23c4befc49","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":189,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"77316d04-ce51-4bd3-821c-0a457e698ebf","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty","page_number":189,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"7b4aed0a-c925-4752-a0e2-06f56cf5c501","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":189,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"dd589e20-26cc-4014-a147-622776df3551","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":189,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"d171e0a3-61ac-4ec8-a15e-a50b873ec9a2","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":189,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"3556f1f6-cec3-4044-94fc-6b7de2a54dd9","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":189,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"0954e014-34a2-4a43-a079-3a6195c5295a","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":189,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"ba612f27-e805-425b-873c-657f2552cc9f","block_type":"box","text":"receivables or other financial assets.","page_number":189,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"0f790bbd-8d8d-42fb-91db-4416bf539606","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to","page_number":189,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"737426f4-e705-4362-862d-681f7af97985","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":189,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"412373f6-916f-432c-84bd-0f222dd6858a","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":189,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"0fd0f5e4-95a4-4974-bc4c-d8cee8d977eb","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":189,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"55aef99d-7d7b-44a2-bfdd-ca9506a62fbb","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":189,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"3bbb1b01-5b82-4180-b9cc-b1284102ce23","block_type":"box","text":"occurred.","page_number":189,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"11703227-f9e4-48bc-8ef8-88a29f1c9c21","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":189,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"6fafd249-717b-436a-b03c-bee57663d1f3","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":189,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"44bf7469-6d6e-4263-ae40-684bb0ae47ea","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":189,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"5a680afb-50de-4a78-9a76-d144425bdbf8","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":189,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"4808ddad-882a-475f-b2f0-3890a9a45b81","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not deal with","page_number":189,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"43dad9e2-113d-4335-a06e-46d62d0f467a","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":189,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"55eecd33-ed69-46a1-b149-a37448fd22cf","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":189,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"2cf8b8a4-d1d6-441b-8b74-c7e4fa0fb4a8","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":189,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"3a35577f-6490-49fa-94e0-c1b1976aad7b","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":189,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"8815613e-6e73-4458-bb0f-3c0375c72957","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":189,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"88b80855-f7bc-4fc8-b89e-9e6640851fe1","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":189,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"7df225b4-811c-427b-bc9a-385e192f3614","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":189,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"3f7b00eb-464c-473e-ac7a-7d449c8b2ce6","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":189,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"37f6cdf7-1d7c-465f-b99e-57ac6c0ef135","block_type":"box","text":"i.e.","page_number":189,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"b92f6ade-5215-44d8-884e-5947617cf2e1","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":189,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"107e181c-3256-4022-a963-51fb54b52dc6","block_type":"box","text":"the obligation’s documentation).","page_number":189,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"e1c6cd3c-fc4c-43aa-963e-1d47f3d88615","block_type":"box","text":"A-6","page_number":189,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"3442f070-5467-4a11-9607-b1294f002395","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":189,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cd14b61b-d9f7-42ef-ba99-db1010614f4b","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or certain note","page_number":190,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"2da27e43-490e-4e86-af91-0a4d355454b7","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":190,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"25b27a1f-0137-4c0b-9ed9-18fd7d75d3b1","block_type":"box","text":"agents in the form of a rating letter.","page_number":190,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"ddd1d597-2b0f-4024-ae52-bad2880b6c16","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":190,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"6f87e040-cc30-4eec-80e7-0be53d92e3f7","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":190,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"10399c8f-7d4a-4a52-948f-f82e8ad2610b","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":190,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"60fb9b00-071b-4947-a4b7-3fd30c56af72","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":190,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"4ec8e4c4-9a66-4625-94d7-fe5e59f12d22","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":190,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"deb8b24c-3a0f-4d15-91b7-feb224641550","block_type":"box","text":"e.g.","page_number":190,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"e586c753-26c0-45ba-a138-e8b25c77970a","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":190,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"7b9b1ca2-a9d4-4140-a138-6e9dd8d0bb26","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":190,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"fd5ee3c4-0fc8-4242-a39f-b3355bdd83e4","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":190,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"7ffc65ac-4620-4faf-bdba-5af3e6134f49","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":190,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"360ca8a0-fae0-454c-b407-c0ab9d470b63","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":190,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"f0051c9d-95a3-431c-93b7-0bdca10b0ab9","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":190,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"ad519012-6b6c-4a08-8885-a7327cfbeb10","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":190,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"726b12f6-5b0a-4b25-8ed3-f0835346a1b4","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":190,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"f12e6fd3-35fe-4124-9b7e-62ee01092f3d","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":190,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"efb7b5e2-36ae-42a3-a334-f3ebef3281ab","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":190,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"61ececac-8552-437c-b4e0-6b75a5b0f66e","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":190,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"6b2465c3-b214-4746-9e4a-1a394023c8d9","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":190,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"56667ba5-7779-4974-83b2-176d1b0b8e20","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":190,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"574ee713-6216-40fb-807f-90005c3cd8c7","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":190,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"b9574eeb-d1ca-4a62-ab30-4b15119e5dd2","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":190,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"1330c40b-66ad-4cff-87c2-ac0ba3e1029c","block_type":"box","text":"Ratings.","page_number":190,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"1f96084d-4397-4741-ae38-accb7b0c2f85","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":190,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"8416d5b0-579b-424f-8e21-8966cfa7cf58","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":190,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"dce4f86e-e843-46f1-9b14-a8ad2dee9e45","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":190,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"575fcec1-90de-40b1-be73-ff0bf5e57d35","block_type":"box","text":"obligation ratings.","page_number":190,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"eab6a1d8-dad7-4008-951a-617e1724611d","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":190,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"86702224-4408-458f-a4f3-48947494e0ea","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":190,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"a36e57f5-a100-4199-a7d8-e4965294830d","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":190,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"69793d61-9388-400e-8d03-9f7446173363","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":190,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"7a4019be-7056-436c-8f61-07211af80773","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":190,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"08746a44-b15e-4a70-8d9a-5f098f27a63d","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":190,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"6a68fbdc-2d50-46aa-b30e-bbb0eb96bfd8","block_type":"box","text":"to foreseeable events.","page_number":190,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"146c8b10-539f-421f-875d-0191c8e14123","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":190,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"3fcd7191-ac70-4e46-87d7-213ae43bd5f2","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable","page_number":190,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"14b3692f-5072-4dd2-97e5-80579c20d27e","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":190,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"9d8eb225-d5c5-46b1-9843-caa76b0d2591","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":190,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"55649267-916f-45f5-aa0d-f166e1c02c35","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":190,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"300d4087-6bb7-4651-9e21-4cfed9401876","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":190,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"11264edb-29ef-45fa-89f0-e44fdebb9591","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of","page_number":190,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"db9611b4-70bc-4c55-99f1-57d05204494c","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":190,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"e5bc9f82-f37b-466d-aa77-3263ba926624","block_type":"box","text":"flexibility exists that supports the servicing of financial commitments.","page_number":190,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"65910d27-7d53-44a9-8dc4-58fae696c78a","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":190,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"6b4af04c-0afb-451d-b10e-39f64e02f6cc","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":190,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"940c1ce2-9056-4c6a-a707-d6cfdd06b7ba","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":190,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"535c4b95-678b-4aee-b11f-5429c654cc30","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":190,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"8495fc77-c62f-4d3f-a77a-f45bfc1f55e2","block_type":"box","text":"possibility.","page_number":190,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"e80116d4-5275-4cb5-8c12-e3d6d1aae98b","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":190,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"e02519ef-64ab-490b-b5c2-53dd51e2bcdb","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":190,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"d4d83528-fde6-49ae-8752-f99771b66cf1","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":190,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"e0f83964-140c-43ca-a928-f09182921c93","block_type":"box","text":"A-7","page_number":190,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"fab7209f-d9d1-4892-967d-0dece8f27382","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":190,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"18ca641f-be75-488a-8b17-4626561783f6","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":191,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"4e3d51ba-c2b1-4217-90e8-29cff1b9ac7f","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":191,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"e58fae53-1f04-439d-9e0b-c69c1a059161","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":191,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"51259534-3e39-45bc-9410-75a09bd96efb","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":191,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"c842d0a0-941c-45fa-ab44-ef0b0e5e700e","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":191,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"7047dcf7-0edd-47cc-8001-c6a8820b55ca","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":191,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"44ef7ddc-0bf1-4e0f-8242-f5dd637b42db","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":191,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"84696975-6512-49b4-a238-ba5a506bc9d4","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":191,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"4a4e4a0b-a94b-494a-87a5-4647f1401d7d","block_type":"box","text":"relative status within major rating categories.","page_number":191,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"daccd62c-9add-4488-b4c0-ad4b5ec7abdc","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":191,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"725310d5-4997-4963-8439-8e98c525a5dc","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the short-term rating","page_number":191,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"252ce5ae-2512-49ac-95f7-ea73bd6bd168","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":191,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"6956dab9-7452-4f13-ae35-11f6662ec238","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":191,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"b8799c02-6ed7-43b6-abb8-86cf7cc5788e","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated","page_number":191,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"ba6a66a2-5405-4818-93ae-692d813b3278","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":191,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"867dd1db-5a5d-4537-811a-67d1bee558e5","block_type":"box","text":"relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to","page_number":191,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"b4361800-c45b-4e44-8e10-2f0b1c894aa5","block_type":"box","text":"obligations whose initial maturity is viewed as “short term” based on market convention. Typically, this means up to","page_number":191,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"5e49cc78-5309-4d91-a052-74a15d290623","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":191,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"2abee0e5-7995-4dd0-a274-a3c434d12d64","block_type":"box","text":"finance markets.","page_number":191,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"67ce697d-6e23-4aa0-b487-0944a94b7402","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":191,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"72755b59-17ad-4708-a18e-e3f8cd246c1e","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":191,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"28304f8b-ecc8-48a0-9dbb-fcd29d0a2d5b","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":191,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"4c33ad93-af3f-4959-a1bf-91d0875bc28f","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":191,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"b887ce13-3927-4609-9869-f71976fe6d1e","block_type":"box","text":"commitments.","page_number":191,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"6b73f9e9-fbba-4590-bb12-9e178efd5703","block_type":"box","text":"F3 Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":191,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"8dc56c3c-ac01-4171-a867-5c4d474280f9","block_type":"box","text":"adequate.","page_number":191,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"696de7a4-4b4d-445f-a2c2-03a8f210a00f","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":191,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"2702e641-b27d-4647-abbe-202794b43efe","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":191,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"020886df-b954-4be1-b9ba-70f1f2d9ace8","block_type":"box","text":"economic conditions.","page_number":191,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"83bac07d-bbb5-4871-b86d-87bbd3e2ab44","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":191,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"7dacf4be-4e89-48b8-8183-e5f53e98418f","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":191,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"eddd6334-2488-48a1-9a22-d3d5ec75b9c3","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":191,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"a9975be0-81eb-4f97-88cb-933b11441a5d","block_type":"box","text":"ratings only.","page_number":191,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"3b5979d1-8c98-45f6-a160-038bef80dcb4","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a short-term","page_number":191,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"aeebd9d4-8235-4ea2-b979-b0ef1bfac3cf","block_type":"box","text":"obligation.","page_number":191,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"e9ecc804-6095-406a-9c04-7f3b8c7c8548","block_type":"box","text":"A-8","page_number":191,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"1f9cb97a-c077-4523-af97-d6ebc6fb8f21","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":191,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e71db616-21c0-400c-8f1c-332f051e362f","block_type":"box","text":"APPENDIX B","page_number":192,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"0f0afe7c-b456-4c0a-871b-06c3b86706ac","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":196,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"ba035135-8dec-461c-bf5a-cf32e127206a","block_type":"box","text":"makes to BlackRock’s active portfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":196,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"157ba53c-80f1-4de7-bf0c-3d8c76c1630c","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":196,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"b8e08b8d-0191-4af2-bea5-c1e46a39a464","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":196,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"ce933580-d810-4f59-8376-cf2a3d5e1ffe","block_type":"box","text":"The guidelines are not prescriptive as active portfolio managers have discretion as to how they integrate these","page_number":196,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"f49fffd3-c1d0-40a2-9e4f-4d7efbad103f","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":196,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"6e6e5463-ad02-46e5-993d-898c8c496497","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":196,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"84bce74a-16cd-4ac5-a312-ed44de7e93a5","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":196,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"99dd2253-726e-4308-a550-e80de6cf85ae","block_type":"box","text":"1","page_number":196,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"06f88f75-3ae2-4901-8736-286acb46aa87","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":196,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"167e818f-2032-47bf-8c19-a44b2f9156bd","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":196,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"6fed0cf5-d720-48a4-9ab0-4a36175f5aec","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":196,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"938d810c-f4dc-4c90-8c6f-92c5003661e8","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":196,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"36807db3-0eb6-42f5-a1e0-11afe6e7bcef","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":196,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"4b91ccac-8cb0-4129-bff1-86764a524b90","block_type":"box","text":"2","page_number":196,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"9ec35ca9-b9f4-437c-acc1-d6e08b665f0f","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part","page_number":196,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"6f1b7b98-b03b-4a50-a1ca-b1162903aa97","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":196,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"cd4a3e41-dbc9-458d-b55b-7d54bc350a1f","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":196,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"f0398a6e-e29b-4d92-a467-6fe32fd70b94","block_type":"box","text":"policies.","page_number":196,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"a72094c9-7349-43b8-a35c-087e5071ffca","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"bd2bf480-de40-42e5-9b95-72e8e7032f83","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":196,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"8d59aeb9-121b-46a2-b1e9-f7f87cf7c4f5","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":196,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"267c12c3-3a3c-4dbc-b252-cf2211ac313f","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":197,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"b703f3ec-8a62-499c-a111-8afd5d49381a","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":197,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"b4a87b42-bfaf-4014-a593-f8860fcbc668","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio construction decisions.","page_number":197,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"6fea84c6-611b-4fb7-95e3-e3f9e0293a7f","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":197,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"d00df4d9-6eea-4d39-87f2-7a453545cbae","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":197,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"6ff97eb1-1aae-45de-a46e-1e44a2e264d8","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":197,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"4060f455-c822-4a44-bd15-b186bdd6b688","block_type":"box","text":"this work with research, data and analytics.","page_number":197,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"f03fc7e0-782b-4335-be58-ad487d011f76","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":197,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"0ce741f7-ae60-4139-a8cd-2ae3d2515264","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":197,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"86988981-8c9b-4b54-ac40-a4136109b7a5","block_type":"box","text":"practices that, in our experience, support companies in delivering durable, risk-adjusted financial returns over time.","page_number":197,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"8d99c89d-1e86-46aa-a4c7-e16910dae725","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":197,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"fb70facd-f4d2-4d39-9376-b27b10f999df","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":197,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"f2bf18d6-1493-4146-ba11-83dff6152708","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":197,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"b7316e50-104d-417d-b578-31296c6545ce","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management Group and","page_number":197,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"651c84c7-ac2d-49c5-91cc-44d71b02b3f5","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":197,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"e133f821-9322-4301-8983-b731f0461249","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":197,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"d700f7f5-fb4a-4167-b1bb-7ff1df21fe00","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":197,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"0fbc13fc-bf6d-4a36-8c17-e50130f81910","block_type":"box","text":"investment analysts and portfolio managers, with whom we work closely in engaging companies and voting at","page_number":197,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"cf7b0330-d7ae-4702-81ec-cb41bee86a99","block_type":"box","text":"shareholder meetings.","page_number":197,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"f4cb7f6d-e796-459a-bd67-3c7c1a8dab21","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":197,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"ee28be05-dff6-4b5d-9161-0139e86b9bc2","block_type":"box","text":"investing.","page_number":197,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"81bb02a5-a8ba-48bd-bd9b-b6d6b1e2bb0c","block_type":"box","text":"3","page_number":197,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"c1086fc7-8c08-4ef1-b8c9-411a0d74b352","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":197,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"e975c5fd-e8d5-4edf-be6d-58357349bfa1","block_type":"box","text":"manage risks and opportunities to deliver durable, risk-adjusted financial returns. Portfolio managers and","page_number":197,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"d60a1f7a-adbf-4761-9840-c42cbb886f38","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":197,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"fe858af4-37d3-47df-ac30-e3122309012e","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":197,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"e76109c5-3c52-46a1-8ace-dea3907d1dae","block_type":"box","text":"corporate strategy, capital structure and financial performance, operations and material sustainability-related risks,","page_number":197,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"285af077-35ac-4d87-8b32-6cc64a39e1f2","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":197,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"c00dccc9-4e2e-405b-9a62-c7f52f65083b","block_type":"box","text":"supportive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":197,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"646f5dd2-5c12-4c4e-bebd-0104b856a005","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":197,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"d0fb9af2-9270-4550-8315-144990b20183","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":197,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"210af787-3928-4dbf-ab8f-cfda0ed71642","block_type":"box","text":"each portfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":197,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"ffcc1e81-7ba5-4b2d-85c5-7dd3da7a8b9d","block_type":"box","text":"vote the holdings in Systematic Active Equity portfolios in accordance with these guidelines. We provide voting","page_number":197,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"c2ab7bdf-2f6d-4a1f-97d4-46fb576d895b","block_type":"box","text":"recommendations to fundamental equity portfolio managers, who may determine to vote differently based on each","page_number":197,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"da341d55-f7ae-4f0b-829a-8184cde1647d","block_type":"box","text":"portfolio’s investment objectives and strategy.","page_number":197,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"17244512-ade1-48ba-b22a-6deff812f2e6","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":197,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"18e81ca0-2b77-4e45-82d2-cf0bcfd71536","block_type":"box","text":"management teams and board directors","page_number":197,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"07a29fe1-19c2-40a1-a004-b7bebe998eff","block_type":"box","text":"4","page_number":197,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"ab1de95a-6841-44e7-8304-7d9abd796c16","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":197,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"46762915-4abd-48a1-88e4-04575c9bf94d","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":197,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"627f5ab1-8996-484f-86ae-677e1b87c858","block_type":"box","text":"applicable elements of governance that support a company’s ability to manage material risks and opportunities and","page_number":197,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"ed7618c5-81e6-430f-ac3a-bf5e2d26d9c9","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":197,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"bc084a01-2b0e-4d28-8842-583e62a702d2","block_type":"box","text":"norms within their local markets or, particularly in markets without well-established norms, aspire to widely","page_number":197,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"5b43b9da-aadc-4c50-b8e4-29d53bf0d609","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":197,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"4ec6b82f-6695-4824-a803-2c782b14b3a6","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":197,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"eeb3a516-7b85-480f-b0bd-1a394c29aa46","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":197,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"f7a63e0c-01b5-4aa5-bc8a-0a2e1d8d257f","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":197,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"706515ef-867e-4757-824e-8eff2ef09f85","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":197,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"7e6429c5-63f4-4900-ae90-18a1e71232f2","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an important mechanism for investors to express","page_number":197,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"a01c8a85-d9a1-4c45-99e1-ec73b23466e7","block_type":"box","text":"support for, or concern about, a company’s performance. As a fiduciary, BlackRock is legally required to make proxy","page_number":197,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"fc56bdad-da26-4421-bb88-029e934687ae","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":197,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"938efce0-8cfd-4d4f-a25e-a4da071ba55b","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":197,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"c02c0d91-a3d5-483f-af92-39a2898c40de","block_type":"box","text":"3","page_number":197,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"5366d3a1-cd91-4dcb-bd9e-e0ba91937045","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":197,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"ea21a159-3475-42cc-8e2f-2d650617f156","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":197,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"e7f74342-81bf-4853-97cb-c4d90d4e2cf2","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":197,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"b83d5737-6843-43a1-b962-271daa6b87e2","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":197,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"90007d68-68ed-4454-aa2c-54a0004f0191","block_type":"box","text":"4","page_number":197,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"89b38369-5ad6-4e7b-9cfa-8a3603e41550","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":197,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"94f0a8e1-648c-4457-ae85-039b5753a4ca","block_type":"box","text":"boards and their members, where relevant.","page_number":197,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"dc3e6217-61a5-4555-bd44-bcb95fac3dbc","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"6dbed050-3140-4523-9172-d18414d815df","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":197,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"bad957fd-1533-486d-a9ef-870376ffa08d","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2aecc3e0-dc7e-418f-b48d-a2f614ee13e9","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As indicated","page_number":198,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"8fd65099-9ae3-4742-bc3d-5ed14d885f32","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":198,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"cb8b4806-c07e-4f9e-86fc-e665fefeb366","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":198,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"2cb43e14-7bbc-4b8b-8574-ced8301b7d56","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":198,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"da6b7757-ca70-4e41-b7d2-7a3f050b5ddf","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":198,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"b27cbc35-eb06-4fc8-b0e3-1126b30e32f2","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":198,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"79522d04-592a-4194-99f9-4e91763d8d13","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":198,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"91b2516c-1db0-455a-aefc-e62a82c9b777","block_type":"box","text":"5","page_number":198,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"f8baff73-3a0b-46cd-b97d-05ffeb2b72dd","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":198,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"bda6b532-7b35-4c26-ad1d-c1480ef28327","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":198,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"0bfe9f75-cfa4-4886-aa50-73bb91e10882","block_type":"box","text":"component of fixed income investment strategies at BlackRock, particularly for those with sustainability objectives in","page_number":198,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"3b775148-9977-4c07-9fe4-a56a46135465","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are undertaken in","page_number":198,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"d6442eb0-8bbe-492b-ba12-1aaa16778408","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":198,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"dab795fe-282b-4304-af50-0db9cba2dc68","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":198,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"0056edab-227c-47d9-952e-df6f1fe9fae2","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":198,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"4c1b5630-42af-4743-ad74-a8374c18ace3","block_type":"box","text":"5","page_number":198,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"90d5b1f9-2aea-4f72-a8a6-224d9a0716bb","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":198,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"bad72d20-5bc6-4145-a2a8-1176dd62da8e","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":198,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"6593fcf4-46ac-46a8-a3d1-18834c5add54","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":198,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"dfe0e72c-9927-47b9-9c5f-b400c8df1deb","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"68ff2dd9-0556-46b9-9a2c-9dc771db7aef","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":198,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"66c1daae-c649-4dd4-b2cc-d018bf3fdc3f","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0ab4a819-90db-44c2-b26f-041e06e61b9d","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":199,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"4157f943-d7a4-44b7-97a3-ee5181d4061d","block_type":"box","text":"Roles and responsibilities","page_number":199,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"b999b32d-90da-45f7-9ad9-92a0361f2a11","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":199,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"6badafd9-601b-4a82-be3c-fbc1ca411833","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":199,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"8d83383e-e8ea-4edf-a553-2a7f07940b34","block_type":"box","text":"6","page_number":199,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"62c9db0a-fd0f-43cd-aa14-1e0dfc4b8ab6","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":199,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"6020673c-ef0e-47bf-ad1c-50b93fea7c9e","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":199,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"7ce45be0-adab-478d-9a81-be8fb5df0e38","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":199,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"355a117d-376b-4320-9038-db6ad4bb04dd","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":199,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"0ae1216d-3ee9-420f-b8eb-b67a9f4edbc5","block_type":"box","text":"performance over time.","page_number":199,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"ebbc4b41-34d7-4821-a8bd-8b1578687860","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":199,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"9d6889da-98ff-4878-93f2-02b91eacd208","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":199,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"0274805d-f31e-4c42-80d4-fd7907f9d5e0","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":199,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"711bc210-1f30-47cc-9b13-ee3c283886bb","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the performance of the CEO","page_number":199,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"2e3aced9-c98a-48ac-93a7-2b9093857bba","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":199,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"cab6ea31-f8df-4b65-9c9d-24ba8ee2076c","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":199,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"4a0e3311-149e-446f-8fbf-d3cef7f13498","block_type":"box","text":"Composition and effectiveness","page_number":199,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"87259c8e-3712-4a0c-9454-44c06f319017","block_type":"box","text":"Appointment process","page_number":199,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"f206c1aa-9711-4916-89e0-d93462e17dad","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":199,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"5ba4cb75-f564-4095-95f3-927abb90067e","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":199,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"b51f47dd-6b74-4d07-bc8f-614956654ba8","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":199,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"6e4500a4-7d2f-449d-af45-2fa835eefce7","block_type":"box","text":"e.g.","page_number":199,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"8eb45528-48b8-4df1-9c2b-02559bafbce2","block_type":"box","text":", sector, maturity, geographic","page_number":199,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"68f2c7e3-8245-46bf-9556-b9c2f63d8bd8","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":199,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"32578373-4896-43da-80c6-c0ef3b2fe918","block_type":"box","text":"e.g.","page_number":199,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"489ccbab-8dc4-4e31-9b6b-75307c2eb82c","block_type":"box","text":", financial expertise, industry track record). To","page_number":199,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"d0a20f17-3d66-4c2b-84e4-dc48127d4f61","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":199,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"baf336fc-2dfa-4f7a-83b5-ee540005836c","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":199,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"f429e819-71e3-4102-a98a-b655b13f43d9","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":199,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"c1c9f3a3-dbae-4f78-8766-a065a5c97d97","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":199,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"9ad6021f-c1b5-4379-8db3-89e88b74cfbc","block_type":"box","text":"and local market requirements.","page_number":199,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"560bcff5-e002-429d-bf3a-2a065636b407","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any particular board","page_number":199,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"1c79ecfb-a734-4921-a476-c6b47654c5ed","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":199,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"ff98c932-b0f9-4c37-b3a7-22b1a619055d","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":199,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"9bd31c94-16a2-43ad-906e-a4f39709496c","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":199,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"92801713-e2d1-49a5-8e9d-bed971766a9a","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to support strong financial","page_number":199,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"ea1ee3e5-ea8c-42ea-9df5-683988def279","block_type":"box","text":"performance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":199,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"00805e1d-e6c2-49cd-8492-a4ae17f9661a","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":199,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"fbd2e708-b080-49a5-811b-7507abd59162","block_type":"box","text":"Independence","page_number":199,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"58333b69-6ca5-4ac1-8f2a-a2d261cec45f","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":199,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"e580798d-3c30-4037-a4e0-e7a1713bcdc1","block_type":"box","text":"e.g.","page_number":199,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"992100fc-2902-4963-b15b-4480450b9a67","block_type":"box","text":", government or","page_number":199,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"b8f869a6-4eb2-4983-beca-13e859ab2178","block_type":"box","text":"employees) is of paramount importance to the protection of the interests of minority shareholders such as","page_number":199,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"154579f3-8389-4e33-9f21-eaf9476c30b4","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":199,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"26a9ba00-5b4b-42bf-8aa6-670c6f1540fd","block_type":"box","text":"conflicts of interest or undue influence.","page_number":199,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"bd8282d1-d4ee-4524-8b74-c8213b68803c","block_type":"box","text":"7","page_number":199,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"1908bc9e-3296-419b-8558-a8796432b86a","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":199,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"a707218d-01bd-426e-8477-8b8c9993d500","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":199,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"a76d85c5-322a-47bf-bd71-122475b95150","block_type":"box","text":"independence should meet those local requirements.","page_number":199,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"130b3d08-8a2b-450e-9ba6-88c24011ea4e","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":199,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"47c78dbb-a884-4ff7-884f-2646715ca8e7","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":199,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"f92a1382-bdc4-49f9-ae77-61f0fad70be8","block_type":"box","text":"composition if this is a perennial issue.","page_number":199,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"120e93bf-2830-45f7-916e-1319cde7fe8c","block_type":"box","text":"6","page_number":199,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"98edbf09-ef33-4fac-bfcb-2895b511c411","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":199,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"128d025e-2d10-4642-9f3f-2a4b322b6c3e","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":199,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"4593d285-5d91-4bba-984d-0158ab1a32c1","block_type":"box","text":"7","page_number":199,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"53ea7fc8-5ace-406c-8223-5b12cf0fb5ab","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":199,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"adbc8b58-f2b2-417d-95d3-664ca989c458","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":199,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"7a322dbb-0b43-4dc8-8960-822ec3119b8f","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":199,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"c9b4973b-d728-47c2-a3de-de3f17c3bebe","block_type":"box","text":"could, or could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests","page_number":199,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"740a741d-8a9b-4ba2-833b-27827656f774","block_type":"box","text":"of the company and shareholders.","page_number":199,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"4bdf5b36-ea9a-4624-9e68-608da48a72f6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"dcd19b94-8ed3-4839-9557-a4dc2d23c198","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":199,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"56744d90-0f79-4882-a706-db3916481df9","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b3710ea8-001a-4149-9647-a5f7cd162b7c","block_type":"box","text":"Independent board leadership","page_number":200,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"65bdc731-f6b1-4212-ba0d-16eb4c15447d","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":200,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"986d9bf9-1fed-4a36-9fea-6af5810e1301","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":200,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"40de9a04-ee52-46ab-bb63-671be14bda40","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":200,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"bf207216-bd31-427b-b2d8-48eeccb12457","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":200,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"dcd7d297-05b1-4462-a993-e1b093ddcdf7","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":200,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"89c8bc3c-2e20-4aef-a83d-a39cbf2d6c7f","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":200,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"d0af8c66-5431-4f9c-813e-89ad199a5cb8","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":200,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"cbcc5156-5fe8-4d34-aeea-35e1ec812c58","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board leadership model and","page_number":200,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"0fdfd842-78c5-44f5-bf5f-6d88f62260b9","block_type":"box","text":"how it serves the interests of shareholders.","page_number":200,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"32ce5ffa-f56c-4579-bdef-1ff8ebc30f37","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":200,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"202a260e-ddc4-4fe5-ae9f-ccb0c6845677","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board performance. We may vote against","page_number":200,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"95c1256b-0d22-4ea0-ae61-de7a0cd9dc0c","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":200,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"787f1176-d73d-4d32-9a59-c7ff5bf9fd94","block_type":"box","text":"Tenure and succession","page_number":200,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"9276db79-5103-463e-8039-07fbb396b142","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":200,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"591cd541-0237-4745-8514-772fd9e371bf","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":200,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"b1f16536-90b4-4ac0-8b73-4755c08d4fd1","block_type":"box","text":"director tenure particularly around the contributions of directors who have served for longer periods than typically","page_number":200,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"11f99c38-241c-40a1-9551-47894f06e1dd","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":200,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"793db271-9263-4dee-949f-d43b3cb5beef","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":200,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"a077bef3-e1f3-4198-b2da-26f25c3b7a82","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":200,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"d321a73a-89af-48d3-b619-8f964678ccb2","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and expertise with continuity through the","page_number":200,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"4a508d69-b820-4d6d-bdb2-2f6b2e4c1b13","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":200,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"8af68b07-ed53-4998-92e8-69365d2b19c5","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":200,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"f604ce81-c34a-4cb1-af33-29e1fa0da1d8","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":200,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"1d088e60-8380-4b6c-9b54-9bc6ca8e7084","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":200,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"2dde30ef-4a7c-424b-a24c-c2a197940233","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":200,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"597c93d6-6bea-4621-aaed-cae8dab0ed6f","block_type":"box","text":"for their continued service is not evident.","page_number":200,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"eeeefa81-5568-4fac-b5cd-e5d0a357bdcb","block_type":"box","text":"Capacity","page_number":200,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"50b402bb-ee59-4da3-92f0-767731c94297","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":200,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"cd5b25fb-bdbb-4a78-a781-33435ed86adc","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":200,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"0a2afae8-8cab-40ee-af1d-9a621b963779","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":200,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"a3f5f801-038a-4a75-a3c9-2c58842d2a16","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":200,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"583e626f-334e-4ced-88e6-0911100074d3","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":200,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"59ff37fc-912d-4d77-b0ee-5b1fbe51d45c","block_type":"box","text":"determinations across markets.","page_number":200,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"2874a8da-4089-41a7-a48d-9b6505d5d771","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":200,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"0108eae0-fa9d-4ad4-95e1-f6cbe8afe628","block_type":"box","text":"their duties to the board and company.","page_number":200,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"96faa316-f559-4fd7-9452-a143bc0abd8b","block_type":"box","text":"Director elections","page_number":200,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"c29fc564-5eae-4a15-b176-76a56f7d88ec","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A classified board","page_number":200,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"ebcc6372-98b9-4989-a658-db5e406a9385","block_type":"box","text":"structure","page_number":200,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"49aa45d7-a490-426e-b868-36c964c167d3","block_type":"box","text":"8","page_number":200,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"d6a6bfe1-dc37-4be8-b5f9-ddea9b226126","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":200,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"a4068031-60e1-429f-ade9-64f6bac220d2","block_type":"box","text":"basis of its business model (","page_number":200,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"293936eb-c76f-495f-a872-afee31dab936","block_type":"box","text":"e.g.","page_number":200,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"ea26d233-f9c0-41cb-b9ec-c421fd45b9ae","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":200,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"3cbe108f-33fd-4d0a-aab3-2ff2aef60893","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in bundled","page_number":200,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"106f70dc-f18a-4115-9089-b83fff7863b9","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":200,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"cbcb834e-d254-4055-b6b4-bf23787684d9","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not support the election of directors","page_number":200,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"bef90e02-f90f-4d63-b2ef-6aabcf6f1fe0","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":200,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"2c143b5f-2598-4ba3-9499-dd13640a2fd5","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":200,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"da67216f-f86b-4fc9-bec0-ca68c1e36d91","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":200,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"99f78685-d11e-4178-9524-874497d03b56","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":200,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"1d3a902b-ea5d-4594-ab31-e88bf97aa260","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":200,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"41b4ab62-2760-4f30-a1e7-c2226955fc85","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":200,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"794ad8c9-876c-43d9-828e-2cfe22d33064","block_type":"box","text":"part of a single slate if we have concerns about the profile or performance of an individual director.","page_number":200,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"a2395688-95f1-49cf-9a8b-01cb40a975a9","block_type":"box","text":"8","page_number":200,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"80d3299c-3eb6-4b88-be0c-c1f223ba47ab","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":200,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"f76bf12c-7194-467b-8f9a-745c90ab6fae","block_type":"box","text":"directors stands for election in any one year.","page_number":200,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"a1413349-2ae3-4208-94da-389b617f0c93","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"3501992d-adf2-4835-834f-2c02203925e5","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":200,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"9f5fd3bc-9ca4-461e-a23d-25abdf72b26d","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c9036d21-c5f2-4da7-b9ec-2b236a4cb66e","block_type":"box","text":"Committees","page_number":201,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"fddbb385-b87d-4fc0-bd93-7438f3b46d30","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":201,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"90bc00be-0006-4715-a446-7da3f592ea05","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":201,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"3047aae9-49e9-4ce4-a019-65bac4d0ae1d","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":201,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"49a1c233-5ea6-41c5-9b21-16d9be7bc4ac","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":201,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"2e62cbc9-11f1-4722-a22c-5c3156773b4d","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":201,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"fab1b49f-a8cf-4934-957c-2b437dc584a1","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":201,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"e5a9879a-b536-4465-ab59-d558a375ea49","block_type":"box","text":"the board discloses the structure, membership, proportion of independent directors, and responsibilities of each","page_number":201,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"7169c26f-0956-448f-8b0d-f60a3f5ac3be","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":201,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"fa2e753b-7a45-41fe-9444-524f297cff30","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"64b048bd-eb54-4185-b5ae-b87edeeeb4f2","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management and","page_number":201,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"4cda32e2-2e5e-4f88-8064-2791bbd7bf5b","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":201,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"efb9e0c5-5ca2-4d0e-8b3a-c2788ba00928","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":201,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"8d041b8e-07cf-4656-84e2-136eb11c3a02","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"04ef9596-f2bf-43f7-9655-804d3dfec648","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":201,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"a9f25fbd-8ad3-4fce-ba34-9ecd73a7b38d","block_type":"box","text":"practices of the company, including the periodic review of board performance; responsibility for succession","page_number":201,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"17712bab-3b1f-48d7-8f67-c1b9a91fa211","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":201,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"8e94ba47-40e2-404a-93ce-d07e130391b7","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":201,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"b3cb658d-9d19-46d9-8510-0a8d7a7ca034","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"262b3df5-e0da-4af7-a1ac-6371e62e8234","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":201,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"649ac9a3-a7aa-479b-a44a-0881197725cd","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":201,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"6ee134ce-7a78-466a-bca8-0abcf9e1f1ce","block_type":"box","text":"firm-wide compensation policies.","page_number":201,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"ef83d604-e9d4-4cad-a24d-30ea7f159477","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":201,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"eca30eea-c208-4150-8fe4-686b7d7d1c9e","block_type":"box","text":"to convey concerns about how a committee has undertaken its responsibilities. We may vote against the election of","page_number":201,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"40456237-66ff-48ed-a940-ab86afd0a50f","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":201,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"3781ff69-4a07-4c0c-a5a9-5a0f243c5e0e","block_type":"box","text":"Board and director evaluation","page_number":201,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"3ed0c17b-2e55-4de2-a21e-4c05ba1dfc03","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the board, the","page_number":201,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"c64668db-43ac-4292-92bf-283f12e0109c","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be undertaken by an independent third","page_number":201,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"97362438-ca1b-4f41-9b55-cb02d8e2d96b","block_type":"box","text":"party able to bring objective perspectives to the board on governance and performance. We encourage companies to","page_number":201,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"163e7345-a760-428d-a825-2a4ab47c79b1","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":201,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"fb5a1a9f-55c1-48fd-aa38-e0136fa7ee16","block_type":"box","text":"a result.","page_number":201,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"394bbbf1-9c5e-452d-bc97-030daf0dd47b","block_type":"box","text":"Access to independent advice","page_number":201,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"7640fe78-944c-42b7-979e-91852b9e84d3","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":201,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"5f3f0a83-683f-4311-a347-cdbc9fdfa4e2","block_type":"box","text":"access to independent advice. In certain circumstances, it may be helpful to boards to retain independent third","page_number":201,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"d0416e7b-827c-4c56-8aca-be809e42a679","block_type":"box","text":"parties to advise on critical matters. These might include new industry developments such as emergent and","page_number":201,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"07f9fd05-f877-4414-8e6c-32ba5f2113a7","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":201,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"1927b95d-3f92-4b17-b3c3-b7f7557b091c","block_type":"box","text":"performance, or significant transactions. Board committees may similarly retain third parties to advise them on","page_number":201,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"b2eb246e-0f85-46a3-8eb4-3c520905b76d","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":201,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"0efe3f7e-3dff-45e7-bcf7-afb4f939a4fb","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":201,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"8b783352-5c12-43a2-890a-1590ee543a18","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to recruit,","page_number":201,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"870a1088-6ab9-4fc7-aafd-b247d672eaf0","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":201,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"5056e2d8-acc0-4201-9e7f-0c5517d64107","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":201,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"325e47ef-2642-4dfb-85da-564f45a85701","block_type":"box","text":"performance.","page_number":201,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"231a3720-7f1a-4b22-938c-ea2fc3c0202c","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":201,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"ee305ccf-3af8-4dea-9dbe-5d23df3a9339","block_type":"box","text":"performance against short-term metrics, incentives – most often share-based that reward performance against long","page_number":201,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"bff4dabd-8144-4b29-bd0e-4be7cac3bbaf","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":201,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"aaa8f2ad-27c2-42d3-aed6-03c90d0d2442","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":201,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"1ad0a568-5fa2-40db-bf82-0a26d6989c06","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":201,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"4e3fc8dc-88b3-4e53-a738-0d6d3e48a6a8","block_type":"box","text":"recruit and motivate.","page_number":201,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"bd17978d-183d-4b9f-9289-cfebbfe4b2d4","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a company’s","page_number":201,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"211b150c-a9d8-4a7b-a1f6-162fac81b87a","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":201,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"298b3b63-fba0-40c5-9f9f-840c38ddda53","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":201,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"5f461473-53d9-47fa-ab77-6a21f2972ee4","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":201,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"d8d8a030-829d-49b6-95ef-06986fa0851c","block_type":"box","text":"arrangements include:","page_number":201,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"182e13ac-93d3-4788-b387-92bd426fd4b0","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"42f00eb9-6be4-4714-9288-174c0d547aaf","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":201,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"a4664213-d00a-49a9-ae02-1c9923b01d79","block_type":"box","text":"the company’s size, sector and market.","page_number":201,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"ffe96434-4603-44f9-ada7-ce92ae106cbb","block_type":"box","text":"BlackRock Active Investment 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objectives.","page_number":202,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"e46dcf91-e097-4653-a29d-10e65a3d1959","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"da75df99-90d2-4633-aca9-549a827b992f","block_type":"box","text":"Long-term incentives that motivate sustained performance across a multi-year period.","page_number":202,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"3caa2715-cad8-44a2-bf56-eeda0c9dbced","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"2974b2d1-542f-430d-92ec-d9a05074c8c9","block_type":"box","text":"A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and","page_number":202,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"b88bc868-af25-4c29-a36e-aef941d536dc","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":202,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"a2d4c1b8-fe49-454f-b1c8-e36027ea4c5b","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"53111263-664b-4eb5-bc34-5598d81de14a","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":202,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"9ac25db7-8f71-4621-990b-d564ae46cf1b","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"a6956d14-e7ca-4b03-aae4-db7621f52f91","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":202,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"7edae0ab-9e62-44c1-9dc4-81a478f466f2","block_type":"box","text":"transparently.","page_number":202,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"25c81a2e-3fe3-40a9-bcf0-c84a32c3f7c2","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"2e725b21-af47-42e6-b791-b4f20629148e","block_type":"box","text":"A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":202,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"cf903ee3-0de4-4e2b-82f5-c7ab300ad8a1","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":202,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"a9e0005f-1890-4456-8bc6-817e4d7f4475","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"60605fa2-a464-4403-8b79-70b052ca461c","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":202,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"66f91976-4941-41b3-9fc4-a156c7afafe6","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"0702297a-af7b-46c0-abbf-0d601cf9537e","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":202,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"014ff2ae-1fd1-4be3-bd03-153ba64d9d5b","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial reports, or executive","page_number":202,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"d8e9e7f3-e80b-4d78-9fac-98f457d53707","block_type":"box","text":"misconduct.","page_number":202,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"b4da15fb-4a7f-478e-8414-2d13d3b48595","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"952eeb59-fd7a-47ef-b41f-17d02248fd00","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":202,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"459eb690-7519-43d9-9c99-4370bd8839d6","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":202,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"474c2450-d74c-4ea6-a020-6e93cb5bcfea","block_type":"box","text":"approve the compensation report where we do not see alignment between executive compensation arrangements","page_number":202,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"89952d1c-e7c0-4a76-baa2-c25ab0ff50e5","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":202,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"cf9e9294-bb5b-4278-938b-3d212fe02692","block_type":"box","text":"compensation misaligned with performance, we may vote against the election of the chair of the responsible","page_number":202,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"34fbccca-9d90-4c20-bee5-64f876b984ef","block_type":"box","text":"committee, or the most senior independent director.","page_number":202,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"3a281093-dc77-498d-be40-62ed46322296","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":202,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"099e947a-eac3-400f-9ccc-e9a6de4bc3aa","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":202,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"3419632d-b141-4b06-8b91-d36380cd59c3","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":202,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"538086f7-d80a-400f-950d-6aa95858decb","block_type":"box","text":"do not support non-executive directors participating in performance-based incentive plans as doing so may create a","page_number":202,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"73bc28fd-c465-4ce0-91ae-2f2a7c949623","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":202,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"ce5c1546-9b8d-4dae-bd9a-eadae83e8cae","block_type":"box","text":"CAPITAL STRUCTURE","page_number":202,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"9d054291-09e8-4f98-9bac-1124dfc7ab78","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":202,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"29114ede-f996-4ac8-a453-2937715fc012","block_type":"box","text":"appropriate capital allocation in support of long-term financial resilience.","page_number":202,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"8a319361-86f7-4e86-a9ac-8e08319ad664","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":202,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"59f4011b-7ac8-4367-a2ca-2a5d077eb372","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":202,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"521c7f3a-35f8-4405-852b-949fe5a0a49d","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":202,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"20b4b0f2-6737-4130-b589-659dd049d42a","block_type":"box","text":"company’s approach. We may also support a shareholder proposal seeking conversion of shares with differentiated","page_number":202,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"c3be96b9-35d3-451d-bffb-d01233016f0c","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":202,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"74fe7873-04c0-4afa-bea5-ee314f385ce4","block_type":"box","text":"Share issuance","page_number":202,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"dd406cd9-37f0-4b0e-90b9-dfd50939ff8b","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will generally","page_number":202,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"fbe478d1-f776-4a7b-ba02-4669aa85a668","block_type":"box","text":"support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":202,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"59742713-d01e-4cc0-a80b-b2f79b50cd85","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":202,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"06901f0c-e63c-4927-a4b2-7da593907cc8","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":202,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"69fa595c-a3c6-4913-9b4a-54f16579034a","block_type":"box","text":"market environment.","page_number":202,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"f1c9b618-a35e-4bb1-85e5-0c56b08747f2","block_type":"box","text":"Share buybacks","page_number":202,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"d5e3de44-528e-4b68-8125-b00b257a6ef3","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":202,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"0074957f-6300-47b9-a334-4e382c656507","block_type":"box","text":"management’s determination of the appropriate balance between investment that supports the long-term growth of","page_number":202,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"7abe9260-c1c3-4c3c-b960-7d69a9cd4895","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":202,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"aeee2c10-ee61-442f-9c3e-ff9cc1ee0f2c","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":202,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"1e832195-cde1-4de7-8874-c5012079c2d8","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":202,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"b2cd8ec3-e07c-4032-8200-2721e3531f81","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":202,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"a23d284c-a2d4-4f0c-a6eb-726a388ad310","block_type":"box","text":"of the company and the market environment.","page_number":202,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"6f743439-3ecc-4d53-abe4-d1032137d62f","block_type":"box","text":"Dividends","page_number":202,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"982a1dd1-98e2-4db0-a90e-70b8aeb81f04","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further clarification","page_number":202,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"11a6c6e1-c7a2-4836-a19f-262ae99fd5f0","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":202,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"3b4c2945-1efe-4ea0-aca5-3490b376b3fc","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"502af614-73b4-4478-b42d-4eff2a118219","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":202,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"11d9d8e9-5937-4596-a919-a4a223d35c41","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2066dbb6-904f-47a2-b20b-eaee31dc9e43","block_type":"box","text":"Differentiated voting rights","page_number":203,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"ab3aaba9-8653-4ab5-b1ee-85590e633d03","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":203,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"2edf8291-2038-495f-ba00-f7abc795dc16","block_type":"box","text":"exposure. Certain companies, particularly those new to public markets, could make the case to adopt a","page_number":203,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"ce2a8272-8cc4-4347-8b55-7c5938190882","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":203,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"1a308f6e-6246-470d-b854-7b957fbfebde","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":203,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"671f089a-ff75-412c-a0cc-6b44b1661f3c","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":203,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"2ef9f834-43db-4d24-a086-d9fbec4b3f1f","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own detailed","page_number":203,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"82fb05bb-a51c-4cce-bff1-d1e461281ca5","block_type":"box","text":"analyses of proposals.","page_number":203,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"03228d02-dbc2-4bd9-bf94-d33527770238","block_type":"box","text":"Mergers and acquisitions","page_number":203,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"b1ca9fe0-c78b-4b73-a362-3e84ed6f119d","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":203,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"967c6fff-2af2-40b8-9adc-47d7e75a97e3","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":203,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"c81c187a-b199-4776-bacb-bf4283fd9865","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":203,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"65bd61a3-2a97-41e6-befa-445f041a1ec5","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":203,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"5600ce1e-c35b-47aa-9a24-41714fd0ba51","block_type":"box","text":"an ad hoc transaction committee to undertake an independent assessment of a significant merger or acquisition, in","page_number":203,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"22490725-d045-43ee-a491-296deb91e7cb","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":203,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"b9516ed3-9044-4075-84a3-450543bcb45b","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":203,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"7ee64ba3-a309-4bcb-847f-fb939f5d1f42","block_type":"box","text":"Anti-takeover defenses","page_number":203,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"bf446d8b-64fd-43d6-9b86-f519fc2e2869","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":203,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"e12c4b1b-ca4d-46c4-b692-476da12f3a02","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":203,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"e5399976-e03f-4acb-bd94-c71face0e036","block_type":"box","text":"shareholder value. By exception, a poison pill may be supported if its purpose is to delay a takeover that is","page_number":203,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"12eb90a7-9251-420e-98d1-d3f217d9ccea","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":203,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"81d13450-4ca5-40f4-b32a-f5c1717cb56c","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":203,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"f56f73b2-b887-412f-866a-0a410f643de6","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":203,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"532d9108-7883-486d-ab82-c6448dba1499","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":203,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"0abb1568-923a-40de-8de5-5eb5b1e72b7f","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":203,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"8ac27aa8-4568-4c0f-bd3e-ba07dbed7b95","block_type":"box","text":"Shareholder activism","page_number":203,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"94548925-945f-4b25-8c54-8fe29b228056","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":203,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"01c1f4b3-f0b1-42ca-9c74-49240fc4573a","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":203,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"8e3bfb7f-6578-4243-ae43-6b8dd66e9fa2","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":203,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"a78609df-81ce-44ff-aa7f-d29b7c4ee820","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":203,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"03019df1-0bf0-4379-a46b-d2cc5f5721c0","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each party’s candidates. We evaluate","page_number":203,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"eb7b1573-6917-46ab-a101-891980501137","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":203,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"79b35c06-82d0-482b-ad3c-88670cb8e44e","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":203,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"cc346b65-98a3-4116-af19-ae9e31401204","block_type":"box","text":"the relevant portfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":203,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"e92d3def-a671-479e-ab9a-71f0855a6e62","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and expertise or have a poor track record of","page_number":203,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"1dcee922-f924-429d-a9d2-0416e8334aae","block_type":"box","text":"protecting shareholders’ interests.","page_number":203,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"e54b593b-0d5e-4ebf-999b-48550bd8d929","block_type":"box","text":"Significant shareholders and related party transactions","page_number":203,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"e6286b34-1a6e-4116-90e2-06fd6a0e97f6","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":203,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"b74e68e8-39f3-4424-838c-652926d223fd","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":203,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"2f00e490-f092-47ce-9455-50b056792838","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or companies","page_number":203,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"46795191-42d7-4243-8371-5415328266d9","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":203,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"56ace23f-b63f-4c0a-a0dc-b157f2b3b849","block_type":"box","text":"have been agreed with a non-related party. In our view, such transactions should be reviewed and approved by the","page_number":203,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"53ab507e-8525-4c8d-a5c2-870ddcd1c8c8","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":203,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"ceab8d44-9fd0-4803-b819-151ec4ace5a7","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":203,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"cfc225f9-a406-479d-af8e-1e2b23f40cd3","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":203,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"22cac84e-8240-48c5-be4a-438f3ba18dee","block_type":"box","text":"implementation and financial performance, as well as to assess the quality of management and operations and","page_number":203,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"a7a181a2-081f-43a4-b734-c096307b6615","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":203,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"477dcf1b-9a29-42a3-b1bb-ee4083b0ad75","block_type":"box","text":"oversee corporate reporting and the policies and procedures underpinning the internal audit function and external","page_number":203,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"dd96b049-7ff9-4d35-86a6-e6a114373a07","block_type":"box","text":"audit.","page_number":203,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"4d69fd3e-3c0a-49eb-8aef-0f4d93468781","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other stakeholders,","page_number":203,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"5c903b9b-68a1-4353-a9f2-ee84a41e2af3","block_type":"box","text":"on its financial performance and position. It should provide an accurate and balanced assessment of the risks and","page_number":203,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"e5fa2a75-ed81-479e-badf-e79f4e016af8","block_type":"box","text":"opportunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":203,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"99cdf8b1-7a63-43e9-a0c4-4b294f046493","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"aebb1e58-2410-4e18-bb82-e93acc9e10b6","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"822232a6-585e-4ed4-9d58-5c84acab3b56","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fb53865e-f6be-479a-8b19-c1529379690b","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":204,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"f6469821-c512-477f-9dde-b108425f05b7","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed reporting standards and any","page_number":204,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"603e5ffa-1336-4333-baa1-6dcaf0683546","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":204,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"89d0e1b4-32d7-475e-88c7-485a7e9e8e8e","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":204,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"a1bfa757-33c5-4870-8a3d-8569c37e90e6","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":204,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"896e0ab5-244d-429d-8206-8d49fcefbf7f","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":204,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"ba7c61d2-9ba4-40d6-94a3-deafd6aa8f0e","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":204,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"2bcdd687-e90c-427c-b268-1de818de0528","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":204,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"71a63ffb-5d13-4c16-8bba-ddd059e32f0f","block_type":"box","text":"important level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":204,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"38c12762-3f7b-4c7c-bf80-ebe329c315bd","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":204,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"82fe739d-d495-4390-87c8-03d6bbfe8bce","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":204,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"1d6f6aa4-f8a1-46e1-a7f0-ce5220601fa1","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":204,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"58a665c7-c420-494a-a723-0639d44b5165","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and opportunities. The International","page_number":204,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"76d207fd-5f6d-4cab-bbdb-18424b8b438e","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its reporting standards,","page_number":204,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"9d2252c8-d5e7-4304-89cd-1e17383fa37e","block_type":"box","text":"which may be helpful to companies in preparing such reports.","page_number":204,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"c8cfb39f-c1ea-45a1-a63c-eddc6ea50046","block_type":"box","text":"9","page_number":204,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"719a3814-1d77-42bd-b126-1fbb7d38656f","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":204,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"2cd39861-1da1-4641-8656-b41725ee39b7","block_type":"box","text":"framework, and note that companies in certain jurisdictions are subject to mandatory reporting requirements under","page_number":204,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"725e22f5-cba1-4290-be1d-c1e849929e10","block_type":"box","text":"standards specified by policy makers.","page_number":204,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"8276cc85-237d-4102-a989-cac39d7c867b","block_type":"box","text":"10","page_number":204,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"232bbe0c-859a-4d34-88f7-9809b387e688","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":204,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"782505c6-f0b3-41ec-bbf9-760f5afa030e","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":204,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"82dcb594-82c5-4cfb-bcb3-ede54245f834","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":204,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"ec10cc50-dff2-4ab1-9adf-0575872e8b5f","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":204,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"1f8d5736-888e-4a03-8324-1396d3801dae","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":204,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"cf1e0616-178d-4ee2-bc93-7a79c8cc0efd","block_type":"box","text":"of corporate reporting. It is helpful when the audit report gives some insight into the scope and focus of the audit, as","page_number":204,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"714f99a2-65a9-465c-8cdf-df6b8b03ce1c","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":204,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"028b4b64-f0ce-4bd2-ac5e-ff5998108183","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":204,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"55586cd6-6e58-45ab-a2c2-bd70c83dd3ca","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":204,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"b8709c23-6f09-4e9b-9310-73339e57f47e","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":204,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"c9928bf8-a89e-4d29-bf5a-ab1de41205f3","block_type":"box","text":"remained independent.","page_number":204,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"6bbd3ac6-99a8-448b-8a28-053f047c977b","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or there are","page_number":204,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"262168c3-c091-48f4-95aa-8d5dae8d776b","block_type":"box","text":"material misstatements in financial reports. In markets where relevant, we may vote against a proposal to approve","page_number":204,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"0603be81-7f2f-4afc-8eab-c6cce866fef6","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":204,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"b1027b1f-b033-4692-8a58-dea700f2733f","block_type":"box","text":"reporting or the audit. We may vote against proposals to appoint the auditor, ratify the audit report, or approve the","page_number":204,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"9ca1ccf8-6825-4cd7-b7bf-e532529b38b7","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":204,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"e60180a2-9fdb-40a7-9ff8-4c4eb67613f4","block_type":"box","text":"misstatements in financial reports and the board has not established reasonable remediation plans.","page_number":204,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"4e6985f6-c883-4d02-b1ea-c56b3f1180df","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":204,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"84e80681-f7c5-4cd5-b370-7607db001387","block_type":"box","text":"General shareholder meetings","page_number":204,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"7febed0d-479c-410d-b4ea-71196529a141","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":204,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"ee8fedcb-29c2-419c-a2f8-3e5e75711f00","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":204,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"1669a79b-c3af-44c2-b25e-62e490b56b26","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":204,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"dcb895dc-2d62-4b0e-a2f0-5705c5d14390","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of participating in the","page_number":204,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"176b8c2f-17eb-4807-ad2c-e91ebd911ab2","block_type":"box","text":"meeting virtually which, whilst welcome, should not limit the rights of shareholders to participate as they would during","page_number":204,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"65a3fda6-98c6-4f8c-a9d3-265f276e4969","block_type":"box","text":"an in-person meeting.","page_number":204,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"802a493d-093d-4048-ab82-f86e1c969599","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":204,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"663bacea-3d5b-4df5-9e0e-628bb6f523ff","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":204,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"4df0cf6d-cc1b-4ae2-8c4c-35495650181e","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":204,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"15ccd950-706e-4a47-b3b6-fa02c1453643","block_type":"box","text":"participation.","page_number":204,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"280fa19d-59fa-418b-8111-dcd755b51e77","block_type":"box","text":"9","page_number":204,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"a6f012a9-8dd3-45c6-9685-3db86a690cd7","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":204,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"f037af5f-5623-4114-b024-0d60d4901827","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":204,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"e0a4ef35-3dd5-4222-9810-44c648df6be8","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":204,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"4f02b299-9bbb-413b-9655-1faa44550b45","block_type":"box","text":"Disclosures.”","page_number":204,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"da9612ce-9f78-4fbb-a81c-cd29623f746a","block_type":"box","text":"10","page_number":204,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"c7afcdf5-6c82-45fd-8acf-4a9ae667da1c","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":204,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"0e6ea231-c87d-4946-a3ca-f7bb1176662e","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyreporting\r\nandaditing/companreporting/corporatesstainabilitreportingen","page_number":204,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"7a643253-1fe8-48bb-963d-26d89211d14d","block_type":"box","text":"p/ p//p/p\r\nreporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.","page_number":204,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"ab39037c-c7b6-4eb5-b5c0-399b0d05331c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"f09ccad2-4ee8-40b9-8d7b-99cd0546e413","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":204,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"9753d3ed-7654-4c8d-8ce7-8f215e17b249","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":204,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0d077d6a-525c-4fd8-b090-64e14dc04cd8","block_type":"box","text":"Bylaw amendments","page_number":205,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"fa2f2e92-49d0-41b6-afd5-1089efab407c","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally support","page_number":205,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"23adbb30-a550-4edc-84f0-29c83ec3eae2","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":205,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"ba9e7ecc-37ec-4009-863d-e40212626bcd","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":205,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"c73eccad-7262-4ddc-bf8b-83f0ce262c0d","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":205,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"4d2e958c-2bbe-4ae5-9353-34196f6e14c2","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":205,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"95758b74-203b-4ef7-b439-1d4f4bdfa26f","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":205,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"8690f7d2-d558-4b07-9404-b03525b3e594","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":205,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"7b9d7935-0dfe-4935-bde4-306891e895bb","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":205,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"aedf942b-8360-49a7-8733-4ad1d76f0696","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":205,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"bb85eaae-dfad-4f30-9f43-97a1dd3f85bd","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":205,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"86585219-30cd-4529-a2e7-17480d4b1ec1","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":205,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"3e865223-88aa-43b5-90de-76b3e6f7ee97","block_type":"box","text":"nomination process.","page_number":205,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"97f9e691-6bf4-49ad-84d9-41da536d2036","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability mechanisms.","page_number":205,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"51b78c6d-7065-4731-b26f-81039396e01e","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":205,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"fd9d6fa0-a0b5-4b31-8711-4e9473cd864f","block_type":"box","text":"Change of domicile","page_number":205,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"17d24fad-11df-494e-8841-825ba48bae00","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":205,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"4b8328d1-0905-46ac-9009-d265b4cb8105","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":205,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"3c6f4e45-ec28-450f-aa14-afe56f10c5c6","block_type":"box","text":"immaterial.","page_number":205,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"d8065f9e-7e91-438d-a136-62ef410aa9b5","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":205,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"4da5ff87-49b0-4981-9e96-f077e313acfa","block_type":"box","text":"with our clients’ financial interests.","page_number":205,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"0cab64ff-c2a3-4272-8812-1b16ed0867f9","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":205,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"ebd9a6c3-3989-4e41-852d-20767e607a5c","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":205,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"c43b253c-82cd-40f5-97d3-14a2d99bdbab","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":205,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"24a20a3c-0706-45a0-8db3-fbe9e486c778","block_type":"box","text":"on the suitability of a company for their investment strategy or portfolio.","page_number":205,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"76900325-f842-4aa3-82e0-279c045f550b","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":205,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"67d56902-434f-4122-9e78-d0e3e4d33e3f","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":205,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"f40e8430-38d0-4a1d-b7a3-9d664d52abf4","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":205,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"d2c8513d-b4c3-47e7-9d87-e72f7c2f6112","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals to the","page_number":205,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"8f026b50-5424-494c-b27d-ed085ce861f8","block_type":"box","text":"general shareholder meeting asking a company to take a particular course of action subject to the proposal being","page_number":205,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"062682dc-3e45-4ed2-82ee-c94d77eb6abc","block_type":"box","text":"supported by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":205,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"1435e48a-4d98-48da-b10d-02586d22fd49","block_type":"box","text":"relevant to a company’s business.","page_number":205,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"61c8da3d-8e4e-48b2-b31f-6cd57a3b4ca5","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":205,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"94805ba0-4a93-49a6-adb1-a6ffca1f8f2c","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":205,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"ab79b8ff-2c37-4f3a-bf45-65a05b6cfbd6","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial performance.","page_number":205,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"e9c0832d-913e-47d9-b09d-d000067701a2","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or performance is to","page_number":205,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"02983f72-f6bc-43ac-92e6-5d3838276327","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":205,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"354ef9ed-2399-41bc-9412-beeee227f6f5","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may support a relevant","page_number":205,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"06f485db-4317-46d0-b231-ec5f9708a7b4","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not support","page_number":205,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"e3fb674f-0df0-4fb1-8901-ee90cb77135a","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":205,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"1bd7403f-7c44-4b24-9f85-486a08a64162","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":205,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"437a11d9-88ee-4aad-b481-547cc7587cb5","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":205,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"0be799ca-5753-45a9-ab70-c40f4efa062c","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":205,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"45f6c473-1cfd-4252-9f1b-af05de08dcd9","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":205,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"dcabd3e2-cc0b-4923-988a-aea9c030010a","block_type":"box","text":"who authorize us to do so, on proposals put forth by others.","page_number":205,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"4f67fcfc-34ed-44d2-a133-2cc51339c724","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":205,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"5db9a701-fa42-42a6-9ee6-9054a3a0cb52","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":205,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"a3d927a0-915a-4baa-844b-a51221513939","block_type":"box","text":"in which they engage. When a corporation reports material financial risk related to policy and or regulatory changes,","page_number":205,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"cc258ced-9b57-42ba-86f1-389513f8ecbf","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":205,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"66f2f95d-74a9-497a-81ca-1524a9c78e2d","block_type":"box","text":"companies engage in corporate political activities and ensure that their participation is consistent with their public","page_number":205,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"32a4a6a6-c8a6-4b00-ba15-bc6a801266db","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":205,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"16c64ddc-1d7d-482d-b9e3-52b11204224d","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":205,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"b51c99f3-fd2d-42ea-80e7-7ec790cf0013","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"d5d373a3-436b-418c-978b-1e5116a89938","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":205,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"98730a51-3e38-46c7-aa4a-e81442c1777e","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":205,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"380efbbf-d020-4ed2-9ff7-1be76aef01d6","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":206,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"306545e3-6baa-4d84-b9d2-d786eddf88be","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":206,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"97389232-f3e7-4d5d-96fd-23a9c60ae540","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":206,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"3d9c5abb-85f7-404d-83d4-91f18b600639","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":206,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"f87ddc21-497f-4f69-bcb9-067d499571b3","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":206,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"f9aa81ce-d42b-4686-81be-49c54c9d9900","block_type":"box","text":"undertaken by trade associations on behalf of members.","page_number":206,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"67e2e1b2-31b2-43bd-a5c9-be70800c8f4e","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":206,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"5c7e00cc-4b2d-451a-bda6-26083426c0a6","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":206,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"c97c6752-4690-4a68-87f1-9b98e2a4be6b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"fd598197-990f-4a06-a91a-f9d5f4b5feb6","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":206,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"f45a9ca5-bc6c-4703-92a5-625af13e255c","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":206,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ce5045b6-5dc5-4e35-b6f6-830f92f0a12f","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":207,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"78e78c86-ce42-4756-8c21-1f2414d2c285","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their business","page_number":207,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"a043ed6d-54b3-429e-a90d-2e4740cdfa1a","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":207,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"c357801b-bcf0-4350-8f48-6fdb4fc9df91","block_type":"box","text":"11","page_number":207,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"96ccd2ca-71fa-4bfa-bf02-a853fa0b9b03","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":207,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"f0fff2d7-3b43-4a34-a316-0e5ff6f830cc","block_type":"box","text":"its financial performance, are generally operational considerations embedded into day-to-day management systems.","page_number":207,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"fa7137f2-6c6c-41f3-9d38-e813bb887730","block_type":"box","text":"Certain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":207,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"b5379999-b9e5-4c71-9bf8-351592c6cd25","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":207,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"1f3c7afa-91cb-4bae-9983-b49f3ced07c4","block_type":"box","text":"regulatory requirements.","page_number":207,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"55065ea7-0927-4aed-998c-190ce6f6b7fa","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":207,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"60c3a86d-1e32-439f-939d-286b91b551e8","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":207,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"ec5098e4-6af2-4a18-869c-f176d3101979","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":207,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"23299a04-09c0-4434-9e07-d9a630f6a449","block_type":"box","text":"integrating material sustainability-related risks and opportunities into their business decision-making and practices.","page_number":207,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"402053fd-28ef-48eb-a48c-f0fa0adcee6b","block_type":"box","text":"Doing so helps us undertake a more holistic assessment of a company’s potential financial performance and the","page_number":207,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"62182805-f40c-4e15-9c03-847bd8ea16f8","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":207,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"eef12189-6de3-40b6-b797-1999d21d1245","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about how a","page_number":207,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"8530fbbb-8c22-4981-b24c-3692c4e5f133","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":207,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"033c7629-9497-4c71-be97-ecbb3b68964a","block_type":"box","text":"returns.","page_number":207,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"74606c0d-e5ec-4457-b86e-fde14145dce2","block_type":"box","text":"KEY STAKEHOLDERS","page_number":207,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"2f3d589a-b8ea-4432-974a-a7e89aa2df5a","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various parties on","page_number":207,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"74fab2ca-6aae-4be7-b4f1-ddd8ee26d4ba","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":207,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"9f02b315-1121-4ea9-9ae5-36a8b2fb7bc6","block_type":"box","text":"what is material to their business and long-term financial performance. For many companies, key stakeholders","page_number":207,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"d605c127-4fe3-4b00-9fa5-80ff8e08f7b6","block_type":"box","text":"include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":207,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"266a6ace-bd31-404d-9bfb-1671f9a62c3e","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":207,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"99140fb4-760a-42e6-8ca8-ca47a7043851","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":207,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"893f0840-fea8-4986-ba83-0a994877f188","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":207,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"db2888fd-93c1-45cf-b1e1-4b04788e6a02","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":207,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"d22f7896-b474-451a-9c79-2c9a49127e89","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":207,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"1a40bb49-3179-4bfe-bacd-63ecbb6d2f14","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":207,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"b064b6d0-35b2-46d7-8749-ea2ee927d093","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":207,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"1a46372d-3ebd-4634-a8af-b0ee4c624242","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":207,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"2b1cd0e7-0e0b-4dee-b646-474fe15fb0d9","block_type":"box","text":"i.e.","page_number":207,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"2590ef59-af4b-4826-a6d5-379a3fb2e92d","block_type":"box","text":", one in which global","page_number":207,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"54413e08-131d-47cb-8020-1ffb57646296","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":207,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"f7594379-407d-459c-b9b6-dd2915159e40","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":207,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"36f954ab-705d-4232-b2f5-ba17b4c395a4","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":207,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"1a0a7753-709f-4440-8cae-c31fc0906850","block_type":"box","text":"client.","page_number":207,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"4fd21ea9-f267-4fac-853a-e1cadec07dc3","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":207,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"6fb54250-fabf-4acc-9461-9a095539395a","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":207,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"8019da66-fc15-4acb-858c-8c08f84ffd7c","block_type":"box","text":"the low carbon transition, based on reported and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":207,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"c67680b2-1733-472e-ac7d-3929b5a9420e","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":207,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"94d19383-6275-4304-96ff-f5981ba47f9d","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":207,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"dad43f3b-e312-4d6a-a0a2-512de87a55f9","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":207,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"55392a34-64a5-4347-a08e-82ead66473bf","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":207,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"bfac0212-4bb2-4469-8b24-1d67d18cd67f","block_type":"box","text":"1 and 2 emissions.","page_number":207,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"8de44b86-b09f-40e4-bd00-f2b902a4817d","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":207,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"37fc94df-c921-4865-8ee6-de6367bda842","block_type":"box","text":"support for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":207,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"10ccdacf-1608-4af0-a2d7-7905b768b809","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":207,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"fa865310-6e70-4444-ab48-51a184cff100","block_type":"box","text":"specific guidelines. We may recommend supporting shareholder proposals seeking information relevant to a","page_number":207,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"9c9568c1-ee5f-409f-af06-336a6aa2b2e6","block_type":"box","text":"11","page_number":207,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"64224821-49f3-40a6-a682-02a228ccd545","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":207,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"864cd076-e25c-4697-b473-f05c3743c594","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":207,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"80f90fd3-2dc0-4e64-9a25-2a40cdb17ce9","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":207,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"b97c2977-e8e9-41b3-bf40-532486b2fa22","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":207,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"cb7e1d3d-b394-4ccf-8662-4cf02580d2ad","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":207,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"e52ea31a-100e-4f22-8be7-1e138ac2ba10","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses.","page_number":207,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"9f377b36-e256-43c0-846e-84009486a654","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":207,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"5a1c5804-0854-416e-b55a-b6a515818748","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":207,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"4c78e9df-e1d6-4b56-bcda-3faa27cec642","block_type":"box","text":"sound governance framework.","page_number":207,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"7f578743-2c2b-4672-8cc3-153478d1362a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"d20d1ef6-ab88-4f24-942b-05924c6694ef","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":207,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"671658a1-99d6-4d04-8ade-2ed870a22bf1","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":207,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5e3c795d-5c73-4728-98de-d78be439669d","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":208,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"4e2c4f31-3b12-4123-8779-bfa99ba68f06","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend support for shareholder proposals that","page_number":208,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"de30105d-6919-419c-b428-d1441c20590a","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":208,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"945ef7d1-014f-4edb-9751-c52ba0c509f7","block_type":"box","text":"the BAIS benchmark approach, the active portfolio managers are ultimately responsible for voting consistent with","page_number":208,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"17f0fe28-5239-4cb9-a75e-e872bbc0b00a","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":208,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"dd9773b1-ce18-494d-8116-8d6d4ffb86eb","block_type":"box","text":"climate risk and the energy transition is undertaken in line with BAIS’ benchmark guidelines.","page_number":208,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"e7ee67e7-94f7-417f-9b2c-780bea26581b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"7f4d90d7-e605-4486-bf9e-56e8f44ee678","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":208,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"95cc1bed-17ad-4ec7-8c0e-461d49bcb707","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":208,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7a68afbe-2562-48ee-88e5-4eda04cfbeb7","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":209,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"880945d9-b1b7-4f22-8c13-ab1f1e94b0e7","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":209,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"419b9a9a-7172-4e0e-a5d2-e511c56d4782","block_type":"box","text":"Oversight","page_number":209,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"07d28bb1-5d8b-49d9-b153-a35c456cd6c8","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":209,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"55d291b9-96be-40d0-8675-26cbaf2fb804","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":209,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"125f2033-623b-410a-91ac-32535a1a0dee","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":209,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"04e49029-421e-469b-9079-9f21c8804fab","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":209,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"e51e7df6-7a03-412a-bf49-a51b65d06bd6","block_type":"box","text":"in our engagement and voting activities, reporting lines, and oversight.","page_number":209,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"bff1b164-e83d-4926-9757-4742f713f611","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":209,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"9b3ab535-23fe-4f43-bdde-ba5d9618b00c","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":209,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"831fa1ac-37f6-407c-b160-1bdd34294969","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":209,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"f0201097-0310-41a0-814a-de470db6f357","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":209,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"477f5f59-7ee3-497f-8f1d-5ad3d9c0abec","block_type":"box","text":"relevant active equity investors.","page_number":209,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"f3d9047b-02b0-4c6a-882f-9f205a788f2f","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":209,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"ecb410b9-10ea-41dc-83e8-bc54ac1aedf8","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":209,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"503fb9c4-dc68-4c7f-adbe-a5b572eb0da5","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and participates in industry discussions to","page_number":209,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"db589949-7114-43a1-a572-24d0e90eac48","block_type":"box","text":"contribute to and keep abreast of important developments in the corporate governance field. BAIS may use third","page_number":209,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"c108625b-7a6c-41c4-844a-4649e62152a8","block_type":"box","text":"parties for certain of the foregoing activities and performs oversight of those third parties (see “Use and oversight of","page_number":209,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"f651cef8-1e71-49bc-b5ee-15c9682eaba0","block_type":"box","text":"third-party vote services providers” below).","page_number":209,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"3ee8746d-785b-4de5-aa43-f3edfba121dc","block_type":"box","text":"Voting guidelines and vote execution","page_number":209,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"ce27939b-e94a-4498-9dbc-7e1dbe1be724","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":209,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"aac5beb7-1638-442f-9f33-5c5473d77ed3","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":209,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"f9ee5ed8-eab7-422b-950c-319a1820751f","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":209,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"3380f6df-8a6c-42d0-a171-e187ff114ab9","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":209,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"446a9eb8-ab30-4dd9-a75b-1f741670c6cc","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":209,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"68bc4f55-29dd-49dd-ad1c-34d05aedac0f","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":209,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"176e9fe1-4f04-41b1-a92c-ff445eb0f000","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":209,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"ee96613d-8fd1-4290-ba65-5f28850606b8","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":209,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"55e02ebe-e790-484e-a4dc-b3729ceb5509","block_type":"box","text":"although portfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":209,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"72c25dc6-63d4-4416-b410-d1da8f1f8d9a","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":209,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"eca015e6-9888-4706-9525-198a8e457068","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":209,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"6137ec8e-23d9-45c0-913f-2497f682ee34","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":209,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"41f29bd4-9080-4d6e-9a6e-4f889fdb3581","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":209,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"55803e54-4346-4024-b2be-a9e093331081","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":209,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"197546d0-89b8-4394-ab81-e5aa2603f88f","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":209,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"6d45d7fe-ddfc-4cbb-afcb-a6ffc527fc06","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":209,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"9c828d57-1dae-4c70-957e-0f40ee5be4a1","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":209,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"d98f777c-fd78-4644-bde5-58840ca5c515","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":209,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"d1500c8b-b00f-486e-b448-c035d0d0e9af","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":209,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"0c31bc49-7126-444f-8bed-99f9eb2eef48","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":209,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"4432629c-62ab-4537-8447-ceccab19d16e","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":209,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"5ec320c4-2483-4f4f-8ca0-993f78c60422","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":209,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"5227d07c-ce9e-4042-91b7-646291bde9f5","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":209,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"42a1c529-067f-494c-b32a-640050092d1a","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":209,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"2fa80d4a-11f5-4ac4-85f7-a2f92815d908","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":209,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"7f44ebda-14e1-485a-8caf-cb54a9645011","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine that it is","page_number":209,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"f00fb5a4-9853-4b14-a471-671635dacc87","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":209,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"787d856e-d44b-4616-b168-4d4666b4fc0a","block_type":"box","text":"(including but not limited to opportunity costs associated with share-blocking constraints) associated with exercising","page_number":209,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"7c336983-6fe6-44e2-a738-54edbc9ad9fe","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":209,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"7afa07d5-96bf-4628-823d-b820010d041f","block_type":"box","text":"Voting Choice","page_number":209,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"27c85477-203c-45c7-8bc8-d540fdfc3835","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":209,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"0c402136-3997-40dd-94ee-8f7d807e276c","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":209,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"07705626-3d2b-42f9-8647-f14e6c13e11c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"4d8e0616-6b1b-4e6b-88e6-b72132c38f50","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":209,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"694e40c7-b869-42cd-87bf-bb81eddcad3d","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":209,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aded8a2d-2b5f-42a9-b0f3-e1037f0a5a12","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":210,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"5fc844d0-db39-49f2-bcb4-54e16afa3ce2","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":210,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"e945c170-8a88-4b38-977d-c8a5b8a11449","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":210,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"8d6f90ea-8b98-40b2-b0be-9506ba38aacf","block_type":"box","text":"strategies.","page_number":210,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"1d09119d-fcff-453a-8d89-03d442ebb05b","block_type":"box","text":"12","page_number":210,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"e9f27cff-a919-4b05-afd6-ac62a49dc414","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":210,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"a6a1c477-d31b-4b81-83ee-be0101443064","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":210,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"b7586ae7-89ec-437e-bc42-f7167b1b935e","block_type":"box","text":"with a third-party policy, or have elected to vote shares in accordance with their own policy. 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Reliance upon this information is","page_number":212,"box":{"x":68,"y":822,"width":823,"height":11}},{"id":"513f2db6-35cf-4cd0-9f1a-640371a1595c","block_type":"box","text":"at the sole discretion of the reader.","page_number":212,"box":{"x":69,"y":837,"width":250,"height":9}},{"id":"614f830e-2a98-4691-a04e-59c4764b0460","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":212,"box":{"x":69,"y":868,"width":196,"height":10}},{"id":"f83591ea-521a-4f0e-8a19-7660f3d6ea57","block_type":"box","text":"©","page_number":212,"box":{"x":68,"y":898,"width":6,"height":4}},{"id":"85abd3b6-b282-4780-9dca-00f640ea6eaa","block_type":"box","text":"2025 BlackRock, Inc. All rights reserved. BLACKROCK is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":212,"box":{"x":75,"y":898,"width":809,"height":11}},{"id":"0382da14-71c8-49ff-ad1e-e63e5a07833f","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":212,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"a9648f1d-e414-4c1d-9a82-20328f41c1e0","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"9157495b-8c1e-4a1b-ba4f-3411ed2b8080","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":212,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"de16f336-d891-428b-919b-7c6534443377","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":212,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"67c78f41-55a6-403c-9a40-00dbd20c41aa","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":213,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"e807ad8b-b738-4f1c-acdf-21f9d76350a6","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund 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Funds","page_number":213,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"fe104e16-0a8f-45f0-b140-4118cd7e4099","block_type":"box","text":"□","page_number":213,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"e8e464f4-fddb-493f-b367-b98597c9748c","block_type":"box","text":"Other","page_number":213,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"1e30d993-af27-4287-9967-85d87732e1e0","block_type":"box","text":"Objective and Scope","page_number":213,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"400ddd87-72ca-4536-9774-1982bba78f16","block_type":"box","text":"Set forth below is the Index Equity Fund Proxy Voting Policy.","page_number":213,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"c8b7baf9-0ed0-437c-ac5f-099e7e34ae54","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":213,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"e5bf1f40-0f5a-465f-a05e-41639aae6922","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":213,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"6ed886db-0462-42fb-bbd4-6d4e1b6ddd16","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":213,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"a9968963-49ae-42b9-b747-626deb212f70","block_type":"box","text":"voting proxies relating to portfolio securities of the Funds, and have determined that it is in the best interests of","page_number":213,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"7d8decc0-8fbf-49c0-8864-1646315b63ea","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":213,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"82834abe-eab0-406b-bd98-ec87a540f198","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":213,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"25a13062-89c9-4905-85fa-75e49c1ae7e0","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":213,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"e5cdbe66-d1d8-4a0f-a907-f14fb483c84a","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":213,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"172d8a47-537a-4086-8bde-f640e79b2e8c","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":213,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"84e83b70-c94a-4720-983e-25211c20c4f3","block_type":"box","text":"the iShares Core S&P 500 ETF. In addition, BlackRock has adopted guidelines and procedures (as from time to","page_number":213,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"7e6e2f90-a402-463d-96dc-e0754d9c3719","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":213,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"cd834c06-68b7-4d31-abfc-fa612396f734","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":213,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"26ab0e42-cb84-40a7-b40e-c182a2774c7b","block_type":"box","text":"Appendix A.","page_number":213,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"a67151d2-f660-40c3-9f09-6b2e55f07bd0","block_type":"box","text":"BlackRock will cast votes on behalf of each of the Funds covered by this policy on specific proxy issues in","page_number":213,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"f35e5ddb-05bb-4a79-b6ab-62bc83797b79","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines and","page_number":213,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"f59f4ec6-b498-425d-a652-c52508083747","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":213,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"136dc85c-6e16-4656-8287-d05c6dc0b0d5","block_type":"box","text":"Conflicts Management","page_number":213,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"e8fe357d-a39d-48f9-91fc-28ca520f4a30","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":213,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"6e9e03ef-a932-4a96-a9f4-85990a8095bf","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":213,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"4fdcad37-df8d-480e-93e1-d2ce14fe0ee9","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":213,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"3b373680-b886-4120-8f47-465bbcbaf01b","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":213,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"13402e68-54c7-444d-9d74-26013e83cbf7","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":213,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"250d0069-e678-4a42-ad61-3317fac53bf9","block_type":"box","text":"certain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. 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The Guidelines set forth BlackRock’s approach to recalling securities on loan in","page_number":213,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"95fb8dda-396e-4357-8092-fe053e7aab06","block_type":"box","text":"connection with proxy voting.","page_number":213,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"3ca3b969-441d-445b-8fbe-728b646276a5","block_type":"box","text":"Reports to the Board","page_number":213,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"25c9f2ef-1007-4750-b011-cc201fb0295e","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":213,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"ca120562-7be5-49ec-a4f6-f8dd7c757d4a","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all 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Through stewardship, we assess how companies are creating long-term financial","page_number":217,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"2910ac1c-7f7b-4190-835c-84040e0f769d","block_type":"box","text":"value to serve our clients, many of whom are saving for long-term goals, such as retirement. Our stewardship","page_number":217,"box":{"x":68,"y":654,"width":780,"height":12}},{"id":"59fe38e6-0c8e-4c8a-8501-c81bc8d11e9b","block_type":"box","text":"program - including when engaging with companies and voting at shareholder meetings on behalf of clients - is","page_number":217,"box":{"x":70,"y":669,"width":784,"height":12}},{"id":"8c01e199-7209-4519-adf9-299aeaae9342","block_type":"box","text":"conducted from a long-term investor perspective and takes a financial materiality-based approach, focused solely on","page_number":217,"box":{"x":69,"y":685,"width":828,"height":11}},{"id":"d2f4d575-9b32-4778-abd2-e7ebb423456c","block_type":"box","text":"advancing clients’ long-term financial interests.","page_number":217,"box":{"x":69,"y":700,"width":334,"height":11}},{"id":"54898c56-7e3c-4447-94ca-443cd2d4b14c","block_type":"box","text":"BIS engages with the boards and management of companies in which clients are invested to deepen our","page_number":217,"box":{"x":102,"y":722,"width":745,"height":12}},{"id":"4a6ff0b8-664a-4102-b1af-cad68da0e41d","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":217,"box":{"x":69,"y":738,"width":785,"height":11}},{"id":"4c4a2512-507e-489b-b92a-6fcc743cf375","block_type":"box","text":"opportunities over time, and to help inform our voting on behalf of clients. 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As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":218,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"cdc3f848-b52b-486b-a084-d77b5371c846","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":218,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"35991c83-98be-4ca3-bf27-fbca257581ce","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":218,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"9b47f449-d495-4c6c-b19d-b3e64b8fb7c4","block_type":"box","text":"judgment of what is in the long-term financial interests of clients. 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These are topics that shareholders may have","page_number":218,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"3e28fcfc-0ea6-4b29-8dd7-b3c32dd8f085","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":218,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"50dfe14a-c5c9-4193-9d32-c38cd3f2884c","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":218,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"bce3689a-7d50-4d75-a95b-4d44bba51cb6","block_type":"box","text":"4","page_number":218,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"97a6f2d4-3ea1-44e9-a7cc-5223cdb3c9a3","block_type":"box","text":"3","page_number":218,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"57fd566b-5ce0-4753-a65f-36864fc43dcd","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":218,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"d5602017-aa1d-4eb0-a7ea-7def3386aef3","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":218,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"74c73a40-e1b1-49ae-951a-eac54210a002","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":218,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"c6c7222c-39c6-4f15-82d1-f796c272a9a4","block_type":"box","text":"4","page_number":218,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"bb388c6e-bdc3-40ab-863a-aa5a91e906c8","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":218,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"51584de4-7c39-4d84-aaf3-6cef28104d75","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":218,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"fa2892b4-79cc-42a7-8f16-540840dd3254","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":218,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"b2d7a588-ed60-4d39-bbce-224d8f6d54f2","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":218,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"76d64ac7-496d-4793-942f-d0e6e39bb84c","block_type":"box","text":"guidelines.","page_number":218,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"6dafba59-4ebd-4638-bd66-7dcd9d57a7c4","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"456ec8bd-8756-48ac-8a36-9c67fe188249","block_type":"box","text":"Global Principles | 4","page_number":218,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"2f594735-d619-4377-af71-971f28f2030e","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"19d1222b-9946-4eaa-8e65-1a76bff90ae8","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":219,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"dd76bcd7-bb59-4d75-bb22-1380023afbd8","block_type":"box","text":"Oversight role of the board","page_number":219,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"454978a4-225a-4b10-a8ee-01d89eabbcdd","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":219,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"f3c77cf6-1aa6-4270-8190-c096559f46e2","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":219,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"72e2d361-cdaf-456c-a4ce-0de70669c005","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":219,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"3c92fbdf-891b-4c63-bbd1-6129088f6e3f","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most important management decisions that support","page_number":219,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"f63f2407-bdb1-4197-b3f7-f133b5e36427","block_type":"box","text":"long-term financial performance.","page_number":219,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"f1e4f11d-2909-412b-9512-2f82436bcc0a","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors. We","page_number":219,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"08f942e7-88e8-43a1-ba18-894f9f31d17f","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":219,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"a2e2cd4b-c2ca-48a2-8b4d-7fbc7a586de3","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":219,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"b9a6ca0b-7edf-4a06-aeda-d08abb07c777","block_type":"box","text":"the business environment in which a company is operating.","page_number":219,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"ed4a4ccc-5863-40f2-89fa-a554ffbf9e1a","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":219,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"58987a9d-10f5-4fca-bad4-a2d78a998fa3","block_type":"box","text":"governance mechanisms that supports its oversight of the company’s strategy and operations, consistent with the","page_number":219,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"2c337edf-61eb-4fda-9501-aed3e5487e50","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":219,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"9309c21c-10f7-4353-bf6d-ee9c6e73eb40","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":219,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"d6c0f3a8-bfd9-42a8-a12c-0565e0ee2363","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":219,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"8fd87a93-88e1-44e9-8a38-5d60c2fa8b19","block_type":"box","text":"mitigating such risks.","page_number":219,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"02174d6f-9259-487b-aef2-ba349c513934","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":219,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"9034327c-1d62-4854-9d08-a4c5cc5572fc","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":219,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"4cc7dc68-8750-4172-bb71-5d4809daa38b","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":219,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"74f4da75-533b-4a41-aa7d-1b7fb7e64025","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to articulate the effectiveness of these","page_number":219,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"03978c94-5b3e-4595-8d25-11b225ddf4ed","block_type":"box","text":"mechanisms in overseeing the management of business risks and opportunities and the fulfillment of the company’s","page_number":219,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"da383542-cfd2-4295-a391-3c98bae95b2b","block_type":"box","text":"strategy.","page_number":219,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"67207b64-7a3c-464d-b84e-b4980d22c492","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":219,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"85452f98-fa09-4834-9400-ab8bc6f3a675","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not supporting the election of directors who, in our","page_number":219,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"4bd86a03-e134-49b6-ba8d-96e0ff04b14c","block_type":"box","text":"assessment, have particular responsibility for the issues.","page_number":219,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"845f71c8-3b43-4220-8e43-933b9e433f5f","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":219,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"d36b6eed-103a-4287-8145-fe452a7eb569","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":219,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"b80d2e00-04c6-4293-b1fb-f799f11945b1","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":219,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"4deed66a-7736-4e11-8780-4ec56177f516","block_type":"box","text":"performance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":219,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"ace8fd66-5698-4fea-ad12-db1251b5c37e","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":219,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"31f20e21-4400-4e67-ac33-c91a7bf1cf44","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":219,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"f3549394-636f-4e44-bb62-aec92e122134","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":219,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"96c340a3-cdd1-4fb9-9f74-53feeb27c1e1","block_type":"box","text":"Regular accountability through director elections","page_number":219,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"fd5d96b4-34c0-47b8-905a-a81f2eab0018","block_type":"box","text":"The election of directors to the board is a right of shareholders and an important signal of support for, or","page_number":219,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"a6a0b839-901f-4fff-8bdb-2080df091fe8","block_type":"box","text":"concern about, the performance of the board in overseeing and advising management. To ensure accountability for","page_number":219,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"8f8c386e-0c30-47cf-89de-4f2352a1210c","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":219,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"6527f5db-ffa9-4c7c-afcd-32553e821bfa","block_type":"box","text":"5","page_number":219,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"c1403500-9f58-4262-972a-0d566972ae88","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support for, or concerns about, board members’","page_number":219,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"87508164-7d5c-4d21-8747-eee19a8e6954","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":219,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"3ee4f4b0-ec86-40b8-8782-72c468d0f7f3","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":219,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"361441a4-577e-40cf-a0c6-d10219d64cb5","block_type":"box","text":"with a proportion of directors being put forward for election at each shareholder meeting.","page_number":219,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"d7dc680c-4f93-4d8d-ba9b-b364814bd500","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":219,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"84a19a24-28ec-4dff-bcbc-d4edc888bca9","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way to reflect","page_number":219,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"e7b3946d-05a8-4557-a6e3-de92bb6edba0","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":219,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"3c78a3d0-8478-4cf2-9258-e09ed3d05611","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while supporting both continuity and","page_number":219,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"002ada90-27c9-4c1d-9243-d6bcda94658f","block_type":"box","text":"5","page_number":219,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"374fe18f-9715-4db2-9300-4a6a3474f716","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":219,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"2f924edf-38f6-4351-b84f-0d4b7c3293f3","block_type":"box","text":"market regulation or voluntary best practice.","page_number":219,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"d505b536-c1e4-44b9-9111-d6bbd1dfaeec","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"75909c8b-377c-4710-b41b-933444474c64","block_type":"box","text":"Global Principles | 5","page_number":219,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"d8440d61-4813-4e9e-9e35-0f4bb78f52ba","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a3927524-b514-4830-9c12-ecdad49e7e1b","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":220,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"0d31f1c9-927b-429d-a2e5-eadbca013b51","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":220,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"eae2fd82-816b-449f-b94c-fdb46bf5208f","block_type":"box","text":"recently.","page_number":220,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"1400f4a9-d5dd-48cf-8c96-d4bf50b46f39","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":220,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"7741a93f-672d-40fc-a69f-3a2d8378b4ad","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":220,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"3bc8d764-a1d5-4da8-b9ff-4cf36ab9f3aa","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":220,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"98f0a471-0113-4f3c-ad2c-650441d1b5eb","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":220,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"88a93dec-8f96-473f-b0c3-ac5c9e37d2e1","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":220,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"131cd8e9-9231-4754-8e4b-ac05f2127c45","block_type":"box","text":"Director independence","page_number":220,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"6d547cd0-fe06-4ffb-9235-143c43727e74","block_type":"box","text":"Director independence — from management, significant shareholders, or other related parties — is a central","page_number":220,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"b731890a-4c61-448a-97af-3c4978648be8","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":220,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"cfa89f17-6af5-493a-a750-adf8cd432021","block_type":"box","text":"6","page_number":220,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"9923f914-57f0-440d-9519-5924de93e94c","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":220,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"ae1e07a8-42de-493d-965b-0e06041027da","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":220,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"c2522426-26d9-43d5-ad01-19722316c312","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":220,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"152dbca3-3416-46d7-ac77-ccc26ab5dc35","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":220,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"5295dbcb-82a1-4f20-b89c-310c0a3f6398","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":220,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"8274d6c2-b4e0-44a6-8041-f7fb22218f33","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"0a84bcdf-4827-436f-9b23-5bf87407819e","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":220,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"ada5febb-6907-49a1-a49c-e13da92bb54c","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"2a28e1b6-b99c-465b-9257-a208c3e0328f","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":220,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"813d71d9-1f11-4bb1-9853-df6a2e7385d3","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"ea2c3c6f-3a6b-4864-93a7-c22386fc45b7","block_type":"box","text":"Interlocking directorates","page_number":220,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"fe86be60-c508-4f09-8dfb-e37c198abf76","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"2ee0b4a7-5657-4136-b0af-7b3521a34ba9","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":220,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"9c0c0b53-0cd8-424b-8dd9-c363a34a4ce8","block_type":"box","text":"materially interfere with a director’s ability to act in the best interests of the company and shareholders","page_number":220,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"641f41fa-101f-4568-af65-12fc56f57a0d","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":220,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"644e3cf1-383d-447d-9d5b-389107c5794f","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":220,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"62c4d3c9-64a2-4adb-b962-c2bc94f38714","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to support independent board","page_number":220,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"c133d5ba-4d4b-4cd1-9871-881ff8cd308e","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":220,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"9c7e9107-77b9-433a-b088-91356caa78de","block_type":"box","text":"is provided to the board, and encouraging independent director participation in board deliberations. We appreciate","page_number":220,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"3ee8e264-9c8d-496e-8478-9755649d7277","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":220,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"162f9106-3c42-4fc8-bcea-7795ab6aca64","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":220,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"531a042d-b371-4b21-8d5f-6d3de2f1cb21","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":220,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"27b9b4e8-e607-454d-b99b-76389a05e6e0","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":220,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"31177110-2d9d-4495-8eb6-5a94c274e446","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":220,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"9627f5c4-b148-4b4f-b653-83440d561183","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":220,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"0791f2f2-c08c-44dd-88aa-2e9ae37b7423","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":220,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"e9d9699c-5dd7-4797-bce1-e58a58c05d0c","block_type":"box","text":"particularly one involving a related party, or to investigate a significant adverse event.","page_number":220,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"b891d373-c1f0-42bc-9cf1-7201c5553ebb","block_type":"box","text":"Sufficient capacity","page_number":220,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"43384f06-de9a-4e77-a7c8-2630e3fd3b44","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":220,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"7f1faeb7-473b-4df8-a0b2-ff6fb0ab6709","block_type":"box","text":"appropriate amount of time to board and committee matters. It is important that directors have the capacity to meet","page_number":220,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"9a480013-167d-485d-85f6-106f62447885","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":220,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"05423bca-abd3-467c-93df-86a3b87bb099","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":220,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"95657b4e-4ba0-4d10-842b-7a0ec897f4b4","block_type":"box","text":"Board composition","page_number":220,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"95da27de-3e27-4b5a-99c2-c82ac6f6f186","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":220,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"10069f71-8de4-426f-842e-1f9f8a5e8a2e","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":220,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"53e14c2d-354e-4209-b941-637e0c19e954","block_type":"box","text":"companies explain how their approach to board composition supports the company’s governance practices.","page_number":220,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"28a013e0-1371-4b2f-b70b-65ac88f14e41","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":220,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"50e18aa2-b65d-4ee9-830c-70bac2022412","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":220,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"f9b00ca2-42f5-4cae-9adb-b135c3114459","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and expertise of the","page_number":220,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"25f6a93a-d970-4101-b309-ab2773abf097","block_type":"box","text":"board, as well as the particular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":220,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"683ce22a-76a3-47e0-94a3-f87a64334e9e","block_type":"box","text":"6","page_number":220,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"110822e9-c981-4410-b097-e3008874c22c","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":220,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"54a93e4d-b18c-4a57-8334-3d6562f35a55","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":220,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"b4e64e61-d387-471b-af1b-be53ca426c8b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"079263ab-75bb-49cc-bde3-cd215f60081c","block_type":"box","text":"Global Principles | 6","page_number":220,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"634610d5-159a-47ed-9e3a-812d3f18f782","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8905db7e-441a-4e73-96cf-cb7d97ccf07f","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":221,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"97750d99-7e03-4605-877c-bce7f6ecfc5f","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":221,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"c20dfa7c-aebc-4ab3-a11f-c7637360b282","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":221,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"f4371952-b998-4902-8e73-253ce75d50a1","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":221,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"f99f1233-60c3-4947-924d-febace005d9f","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":221,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"3311daab-513b-4c26-b751-def0fedcd16c","block_type":"box","text":"may discuss with companies, particularly if there is a risk their board composition may be misaligned.","page_number":221,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"ece181b2-5cc5-49df-bb18-711b404e8ec7","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":221,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"3195ce93-592c-4f87-b371-5956b84154e0","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate portrayal of a","page_number":221,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"97242fa4-8762-4415-a4d9-9fbc46921c44","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":221,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"8a53c7df-eba1-4d4b-a6ae-8c82044d8246","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":221,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"b8269d00-4cba-436d-a3f7-70e082b41df7","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":221,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"9e4431a3-34c2-42b3-a8f7-957df2b98c35","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important role in a","page_number":221,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"fcd4c82c-9da5-4aa1-a641-3ac3205e4399","block_type":"box","text":"company’s financial reporting system by providing independent oversight of the accounts, material financial, and,","page_number":221,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"120f5711-b613-41e7-b5ff-ad4b18961161","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":221,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"389f57a3-656d-4dbc-8d50-2e7d80518bc0","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":221,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"e9f8a854-dc8c-4a67-8abc-2ae573e36cff","block_type":"box","text":"systems.","page_number":221,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"6c99aef3-799b-4829-b57e-cad38dd058c5","block_type":"box","text":"7","page_number":221,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"9047d6ca-6b8c-4ea8-8166-3fc6b8713c1e","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":221,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"eb2eec59-5106-4263-ab43-7dc36ebbd630","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders.","page_number":221,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"a2828101-3ce8-45af-9347-16a2fdff6c7b","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":221,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"34935925-b2cc-4b80-910c-acdcb8b0afc4","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":221,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"f6483cf5-4fe9-44c5-a51f-e44c7f044fd0","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":221,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"da713096-c84a-4a1c-b2c1-35f7f0b378bf","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":221,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"50a0e6a4-8ef1-4459-8e79-c9e658d01f42","block_type":"box","text":"expertise to monitor and oversee the audit process and related activities.","page_number":221,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"059e517a-ff72-4fd2-a223-c3ccc29f79bf","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant financial","page_number":221,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"1d7d6813-7db7-4f5a-8594-c929401ed548","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":221,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"93ca6978-afc8-435b-82c0-43c5da025948","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":221,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"f85be5aa-07a7-4c62-8dc0-87a6380a1ab4","block_type":"box","text":"or internal audit function.","page_number":221,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"bbec3962-ee2a-47ca-9ee8-ff7619965c29","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":221,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"d852e730-6776-42da-b241-6d40a0a9991f","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is important that auditors are,","page_number":221,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"82f92f1f-f11e-4a7a-b198-5ffa5d5276dc","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":221,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"fc26bfec-9297-4eaf-89f4-45303cb84afd","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":221,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"4e87dc28-6bca-4dee-8963-750052e7d475","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":221,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"544f78b8-fed1-4125-a94d-0fc3824ec596","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":221,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"5f9aef2a-9792-4af3-b52c-b528417f5f2b","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":221,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"74dd83f0-3114-4bba-87aa-1cf5019f436c","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":221,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"0120c474-e1f8-45a3-8843-e971bd08275e","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":221,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"96d76af3-4481-481b-911f-da5e13f42aaa","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":221,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"87eecb09-c478-4aee-8835-71fffbd1c734","block_type":"box","text":"risk.","page_number":221,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"3fa98b3f-c3d5-43b2-9d43-170360ceb0ea","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":221,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"0c88e014-160e-4bd5-b288-ed6f1685724d","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":221,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"f348faa2-dd99-4e34-bfad-878a819a432d","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":221,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"0d8064c4-beda-4819-9a9f-5bdec65b6506","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":221,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"52572078-4f05-49cb-bb3e-8af749471845","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":221,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"3954d465-e81a-46c5-a02e-bcfb4d69bf65","block_type":"box","text":"differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce the adoption of","page_number":221,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"c8a51705-6803-4529-b5b3-95add9643ae4","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":221,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"608cf1a0-4361-4a98-aa07-9ed2744c0570","block_type":"box","text":"7","page_number":221,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"9ea46323-41ef-45ac-b766-077f45a325a9","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":221,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"d0544f83-3b65-4046-8203-41674055eee5","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":221,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"3e788830-8391-4197-8e9d-31468bd7db8c","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":221,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"ba81fecb-115b-4e3d-a5ad-f7f6a3b28ce8","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":221,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"16516d65-771b-41f0-8ee1-575875985e8e","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":221,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"99d78d20-b97d-494d-8429-775c8ad9533c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"2622eb32-6a77-4b5b-b052-03145c6dc350","block_type":"box","text":"Global Principles | 7","page_number":221,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"ceb5e849-685b-427f-aca3-8618f58daa3f","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"78849ba6-7d16-4146-a0c4-0044444d2eb6","block_type":"box","text":"However, we recognize that in certain markets, at least for a period of time, companies may have a valid reason","page_number":222,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"f31b13c0-574b-4f1a-8236-8d3c7bcee501","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":222,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"df6bfa21-3976-4c44-97e8-af764dfdeacb","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":222,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"0b24960d-f885-4c71-9e62-048b60db6c87","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":222,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"c98cb9af-308d-41da-a23f-137b36ff5336","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the opportunity to affirm the current","page_number":222,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"34e7c685-8f5b-4144-a53b-6a491dd90fa0","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":222,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"3a07a57d-4920-4431-bdac-417fd8ccf688","block_type":"box","text":"minimizing costs to shareholders.","page_number":222,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"2f3fa25d-6d81-4ea2-934d-bdc2bafcafc4","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":222,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"11452157-193d-40ec-9d95-6f4a71a52c1f","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":222,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"36cdcb56-6784-4b84-8c2c-3e155c0ae9a5","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous support of the","page_number":222,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"02ad0c50-c2e6-4847-a2cb-b4d57fdf779c","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":222,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"3e1302de-5197-4070-be24-ab0bddcb6c71","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":222,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"14130a09-f901-45eb-a1d4-6f523ba846ed","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":222,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"32c72789-2054-4b6c-a3c4-020439d49af8","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related parties, the recommendation to","page_number":222,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"a14099b5-13ae-4558-84f8-92b86f5e164f","block_type":"box","text":"support should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":222,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"c4d6014d-6bc9-4d98-9abc-f06a926e5b2e","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":222,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"6aacbb1e-78f3-4a35-80e1-d18b887f7060","block_type":"box","text":"a separate vote of the non-conflicted parties.","page_number":222,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"d1985496-1009-4b72-8baa-72fe0ed00140","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":222,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"d83f1bf3-4c52-4fb6-a5d1-4d2384f19900","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":222,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"b120b1c7-e514-4ff7-8480-1460f4c732d0","block_type":"box","text":"ability to sell their shares are contrary to basic property rights. Such mechanisms can serve to protect and entrench","page_number":222,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"87d41fd8-c500-4ff1-9f19-7ba531282f8c","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":222,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"0296212b-2ccf-49d1-ae6d-85836d1b0b0b","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":222,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"7080dc89-fcb0-426a-85c5-06713d2ccbeb","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":222,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"e5b7e323-78b6-4ba9-b338-e342afb9ff27","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":222,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"212603d1-c118-4391-b5aa-f6fedceea52b","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value creation. A","page_number":222,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"9f67e182-63f0-44cf-adfa-0b0edad8740d","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":222,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"40a6a999-9bee-4ee3-89a1-e3e4dbef94ff","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":222,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"13476724-c83d-40b1-9e29-cbe3d82f7f2b","block_type":"box","text":"ownership.","page_number":222,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"852f2b0e-ec91-4353-98a3-61e0bf2dc73d","block_type":"box","text":"8","page_number":222,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"87ecda93-4fa5-4362-8dfa-56d3eb999ee6","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support sustained","page_number":222,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"bb06d7fc-2387-40ab-bb56-c7ef63229d33","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when performance targets incorporate","page_number":222,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"657c04be-5185-4e95-9620-d62811df07b6","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":222,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"af3189d9-a4b3-4e1f-a306-5f00783d9b4e","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":222,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"a1a8d450-2cc9-4a36-a4ff-09f5985eca7d","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":222,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"bc6932e4-f97d-419b-a0b0-59b1ab3744aa","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":222,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"0b8bc7e8-9f79-4dcd-8b41-adf4f6804f15","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":222,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"d08aa368-155e-4c50-8a65-6751c318b6aa","block_type":"box","text":"results over a period of years.","page_number":222,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"9bc61da5-1b9d-46b5-93e1-e351226d9fac","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":222,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"52374292-91f0-44dd-ad52-c659c29dcb4d","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":222,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"00897cd8-4e3f-4d5e-84e0-ed637de681ee","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":222,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"c49a9434-a2cb-454d-b433-980bad6ec302","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":222,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"c3880579-a92d-4883-9e95-7031ea06674d","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":222,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"77e9b968-2387-4d42-a155-85a830c63556","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":222,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"13ef356b-0b9d-46a2-9c32-8de2f9957eba","block_type":"box","text":"executive compensation strategies.","page_number":222,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"8bb413b0-2923-48b6-afa5-a10b719c5a77","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance. Where","page_number":222,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"07a69705-ed7d-4079-9d08-8eeb49f4fd0b","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":222,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"e3bd487b-c480-4514-8f79-2463d3107154","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":222,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"7ad53d6e-708a-483d-a495-75491b311ca7","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":222,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"9d3cab26-1ca6-4df5-80f9-983eeb7258d6","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":222,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"8dc39bc7-be3e-4b59-bf4b-2b918f7d6c5e","block_type":"box","text":"performance rather than solely base increases in total compensation on peer benchmarking.","page_number":222,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"edcaf112-92e2-4bbf-91ac-511563f8f5a5","block_type":"box","text":"8","page_number":222,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"a514e043-d28e-4f9c-a3ce-1500e69e6c56","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":222,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"d637f400-ac87-4aef-b0bb-92912e320ece","block_type":"box","text":"different markets.","page_number":222,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"51e2f7fa-a5ef-466d-a346-a5389fb04940","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"b7943517-5968-420f-98b6-17f59171ff9a","block_type":"box","text":"Global Principles | 8","page_number":222,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"2d26eb9a-57d3-4fa6-a870-34f1e7ec06f9","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5158e4d1-9750-4122-9e5d-249c1a62d21b","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":223,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"b5817b73-01e8-4c12-bf87-8601af14a57e","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":223,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"cf453597-89ad-4293-b846-ee97d4d9567f","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":223,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"b8212cd5-2c17-4a6f-b9c4-f3977414db7d","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":223,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"1ffe0955-811b-443d-96e3-c3969a2cfcab","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":223,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"f5eb3896-d008-4b59-9873-239c62f08717","block_type":"box","text":"effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":223,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"6214cf04-f623-4f67-9bdf-ce6fe357a939","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":223,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"5b30d291-1aed-44f0-9cc3-f2d8af8f3608","block_type":"box","text":"whom they are charged with overseeing.","page_number":223,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"fb244734-b262-41f9-91bd-902efa9726da","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":223,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"71d16c09-8aea-48eb-967e-78aad4e53a5e","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":223,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"7ae1f53d-58b9-4a90-829c-82c4f000861d","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":223,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"731b12e0-ae73-4516-ba0d-ac1df0e443d8","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance, BIS may not","page_number":223,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"e1e4ce62-7e54-4442-8eca-060ab86b8c02","block_type":"box","text":"support management’s proposals to approve compensation, where they are on the agenda. We may also not support","page_number":223,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"d284699c-94cf-45c0-af36-df23b6f74c42","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":223,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"08adb154-d19b-47af-a5e6-826971abe541","block_type":"box","text":"structures.","page_number":223,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"530cc372-40be-499b-a195-b358852ae1e2","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":223,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"982b0930-a063-439f-84cb-d4dcbed95d72","block_type":"box","text":"Corporate form","page_number":223,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"af75b394-ce18-4fb5-983e-13fb9dfdd2ec","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":223,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"2ca144bc-b0cb-4f7f-a17a-1b31d3258daf","block_type":"box","text":"the company’s purpose and business model.","page_number":223,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"f9593ecb-b5bc-4da7-adc0-0283b14b5864","block_type":"box","text":"9","page_number":223,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"a2184d27-d40b-4dc6-a6f7-2561dfaed33a","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":223,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"235e6f12-e412-4725-9cba-03f69083bf3c","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":223,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"93db5163-da75-4d33-b6ff-becb0264a05d","block_type":"box","text":"applicable law. We appreciate when supporting documentation from companies or shareholders proposing to alter the","page_number":223,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"6bf1f436-3a8e-43da-aff1-639792776670","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":223,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"c5d530d0-ae59-4a8f-9d36-1ef9ea49b6d1","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally support","page_number":223,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"fa29eb02-d383-4b8c-a88f-2060325a042a","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":223,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"b72e7717-a80f-4ecf-8742-a34c8bee0773","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":223,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"a0827b4d-2a3f-4e31-8615-2488d8815ffa","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":223,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"16c4e8da-dccc-4cc0-9669-c07c6a9746ee","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":223,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"d33d3e79-0c89-42af-84dd-faa3be5c8153","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":223,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"2c2a98f8-8909-4c35-b88a-5e637f50c025","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":223,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"f0cc690c-e2bc-46ab-883e-7c6102d38555","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":223,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"5c955215-754c-4ab6-b2a6-5bf51d3aeb89","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":223,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"65dfe8fc-6ae1-4bdc-9a2d-0c1c203815bd","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":223,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"a1b34818-0baa-4760-9def-fff1b8ab5b09","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial performance. BIS","page_number":223,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"76e33b56-90aa-4165-a8bb-09b0ec795528","block_type":"box","text":"may support shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":223,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"8293e997-0a9e-4ead-97c5-ac6cfed845b7","block_type":"box","text":"clients, better understand the material risks and opportunities companies face and how they are managing them,","page_number":223,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"013e86d2-93fe-4f8f-8fb2-1c38ec2ee507","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":223,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"8e9d281e-f6ed-43ed-a8f4-10e9c35ae137","block_type":"box","text":"between the specific request formally made in the proposal, the supporting documentation, and the proponents’","page_number":223,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"5e1ff3aa-ebdd-4ad3-a24c-8673cb4d3212","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":223,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"79f2cfb5-80a5-4014-8c8c-034af95037f7","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":223,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"fa06358c-d4a3-44c1-adca-c5942246238d","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":223,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"03b963e5-fd64-4654-b50a-6691f605f6cd","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":223,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"e4255c15-e5dd-4d75-bc65-bd6956ba1e6e","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":223,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"9530bf24-c62c-4e30-a0f7-3ccaa1265833","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":223,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"964d24f6-9bef-4861-a898-325321111dbc","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":223,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"f2f7b81f-fba5-47a7-b275-d675b3c5a8a7","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":223,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"206bc6f0-b72b-4850-861e-66ae30525a25","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":223,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"b5e39ea1-8341-45f7-b9ca-53ff9ff37a92","block_type":"box","text":"requests. Further, the proponent’s supporting statement may refer to topics that are not directly related to the","page_number":223,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"842c77c7-8dd8-48a7-b044-8c0935ec33a2","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":223,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"65f71a1a-07e0-4e12-bdde-ead27eeb22e6","block_type":"box","text":"the proponent. Therefore, when we vote in support of a proposal, we are not necessarily endorsing every element of","page_number":223,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"0a795109-057b-4a39-9bd1-6e63e7940169","block_type":"box","text":"9","page_number":223,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"5ff6b607-13a9-4282-817f-fab23aba3d5b","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":223,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"7aa6f9c4-ca97-4c51-bd22-19ed32f334c1","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"9ff79dc0-9a8c-4dd5-a87a-3a21d89f82c2","block_type":"box","text":"Global Principles | 9","page_number":223,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"943678d2-8822-4934-b6bc-521afb890dff","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":223,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f4220913-7012-4c83-b14c-9f7bdc194c47","block_type":"box","text":"the proposal or the reasoning, objectives, or supporting statement of the proponent. We may support a proposal for","page_number":224,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"af738558-0152-4ce3-82d6-cb113f6b2df9","block_type":"box","text":"different reasons than those put forth by the proponent, when we believe that overall it may advance our clients’","page_number":224,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"713f588a-6699-455b-beaa-b9f9c437dc28","block_type":"box","text":"long-term financial interests.","page_number":224,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"8607f917-86f9-4e89-bd70-0d87eef8437b","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that place","page_number":224,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"6f58105e-57b4-4a0b-a411-176de841ed97","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":224,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"6330c4d5-9876-4498-8684-c72ddec27255","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":224,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"6a389b56-c169-405d-8e31-c4e06d31c279","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":224,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"65c00c0d-8492-4286-a97d-fad7435b6de4","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":224,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"9d9cb74c-a7a7-4b56-a823-79298416ff9f","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks and","page_number":224,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"52d0946c-c80f-481b-aafc-f2a4e2518b1e","block_type":"box","text":"opportunities, is an important component of having an effective governance framework that supports durable, long","page_number":224,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"1e1292ae-e35c-48a4-899f-fb1584bf531d","block_type":"box","text":"term financial value creation.","page_number":224,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"f8c83b4b-4460-446a-83b7-d45f00340651","block_type":"box","text":"10","page_number":224,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"bce34de4-1e98-497c-8c02-6f11275bf99d","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":224,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"d7cefc42-4f34-404c-99db-52833cece902","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and opportunities. We find it helpful","page_number":224,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"c649ed61-0f02-404f-9e29-bab1c6560621","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":224,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"f4162459-2d84-497f-96f3-198aee5e4dfd","block_type":"box","text":"sustainability-related risks and opportunities into their strategy, risk management, and metrics and targets, including","page_number":224,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"a39d8d92-1007-4c87-98c6-80563a40b067","block_type":"box","text":"industry-specific metrics.","page_number":224,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"4a91a150-11b1-457b-b3d1-7adb845feab5","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions. The","page_number":224,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"7a6d86cd-577c-44ee-b08c-f1107a6c8072","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":224,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"02b89c9c-5f9b-4a41-9be2-3d2c0b7fd3b9","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":224,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"34121c8a-8522-4900-b597-3ad39ff1b45b","block_type":"box","text":"11","page_number":224,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"3f29e85a-33c8-4430-b29b-907fd7b1a706","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":224,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"4f11ce77-07d3-4bef-b5a5-6f32b4900470","block_type":"box","text":"companies should use, and recognize that companies may report using different standards, some of which may be","page_number":224,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"110f8e43-6488-4262-aace-fb3da63cc026","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":224,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"42f60f12-1a76-457a-8fb5-a70c13dff44e","block_type":"box","text":"specific.","page_number":224,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"a9b4a664-78f7-4407-a046-f57b1006a27f","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not prescribe timelines","page_number":224,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"3598e7bb-ab86-4714-8264-e672f3e132c8","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":224,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"d94a4dff-4783-4a0c-a0a6-59ead3218f2e","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":224,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"6603aa3b-31f6-4003-b26f-2c94b670f519","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":224,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"64ee82fa-7b41-4abe-8ea0-1ac7e8393c12","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":224,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"68be0eaf-bc2d-4cc7-a8b6-d553c74abea0","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":224,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"3469486c-0445-4694-b71e-375753e381fe","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":224,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"a20788a7-639c-4e28-a62e-1747a1224ee6","block_type":"box","text":"which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors","page_number":224,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"e3b89d2c-07fe-4e83-8560-0d337403dee4","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":224,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"c5de5371-872c-45f0-85c3-0a2e92c9ed1e","block_type":"box","text":"10","page_number":224,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"ad532249-b2e3-410a-b9ad-bf800718e243","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":224,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"f25eb283-3604-464d-b3d8-edd1b3d4e9dc","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":224,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"0f7d4c3c-45c9-4b71-99df-dc719a3e379d","block_type":"box","text":"issues include, but are not limited to, water use, land use, waste management, and climate risk. 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The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":224,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"baf45eab-6cc1-4f61-9d93-58519e39bb57","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":224,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"1af6d218-851b-4c75-bb41-316d10cfd1d5","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":224,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"7a27a200-8684-47a4-8f77-a43a733f6d9b","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":224,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"ac80c4a7-847a-441c-a97e-1e908b7578a6","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":224,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"cb927038-8ad6-44ca-8b75-4109d33baaa6","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"fd4217dd-9267-4def-8831-6bfe8d4d720e","block_type":"box","text":"Global Principles | 10","page_number":224,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"5bd32a38-c6db-44c9-9a3b-7d793cd55ed3","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d6a007d6-9fdd-4c04-89c7-f2bef5e9a80f","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":225,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"49286976-cf4d-4133-a755-34b635f3454e","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":225,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"8f452f35-ae6f-484c-84e8-3ee2db47936e","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":225,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"f3274a14-549f-442d-ad0b-ed727015ea84","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial performance through","page_number":225,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"fd1a4504-5b0d-42ec-ae66-186cc6fb6e69","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":225,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"548fab58-be62-4ac6-b44f-30be7a919ebd","block_type":"box","text":"12, 13","page_number":225,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"0026208a-3b1c-42b4-be00-ce26aa92fb0b","block_type":"box","text":"From company disclosures and","page_number":225,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"6d3949e7-b5bf-4100-8a58-33375eb24ba5","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":225,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"9fdaf754-949e-4f0f-9e85-1ed2dad7129c","block_type":"box","text":"opportunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":225,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"ee13c28b-6204-4337-b760-5941c7f577d7","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate large","page_number":225,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"6612ab8c-24f0-44fb-a622-59d0c237befa","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":225,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"db4d5789-1c3c-456b-815b-6980490c6212","block_type":"box","text":"viewed as best practice in the market.","page_number":225,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"2b21afc5-7098-4aa8-8505-a738eb4b658b","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":225,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"f8941978-577d-49af-9d37-3e77ada5583c","block_type":"box","text":"climate-related risks and opportunities, and informing investment decisions. Such disclosures also provide investors","page_number":225,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"e0037623-eba0-4c27-9cbd-bedfe3b45d90","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":225,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"2e9bbea6-1114-40ab-b1ab-49e65592e6bb","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":225,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"4bade0ed-a58a-471a-862a-63fe4835ba18","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-, medium- and","page_number":225,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"65aa3ca7-60f9-40dd-b6f7-b8d3e1f28572","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":225,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"c0a2733e-7ff1-4925-831d-488a135914fe","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":225,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"83d23233-7ef1-4fd4-9b90-a4e9d7e439fb","block_type":"box","text":"interests of their investors.","page_number":225,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"6d135511-ee9f-49d8-88c7-47b58ad0859a","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this stage,","page_number":225,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"f9b8004f-fda3-48d5-84a2-519bd3a5699d","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncertainty,","page_number":225,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"fe19118d-50e1-463e-a048-f86482c13e86","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":225,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"e312682b-6b15-491f-b9b3-b06c413cbfae","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":225,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"0c555252-40ff-475c-a941-270001afebe1","block_type":"box","text":"good-faith basis as methodology develops.","page_number":225,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"11a34789-7464-4a34-831f-04a9e042b027","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or supply","page_number":225,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"1718518b-1338-4244-9c87-15a682bdf70a","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and opportunities may affect their ability to","page_number":225,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"3d4b90dd-feb0-4312-a460-f013d0b6e1da","block_type":"box","text":"generate long-term financial returns.","page_number":225,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"5c52108c-e4c1-4f7a-a1e8-d6899dd1725f","block_type":"box","text":"14","page_number":225,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"71877170-bacc-4f47-9800-bd40bf9ee674","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":225,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"ec8dc8ee-aa3a-4655-9aba-e1ea8a944d7c","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":225,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"2f45b252-51cf-4ce1-8ec5-a6084cecdc34","block_type":"box","text":"15","page_number":225,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"7c326b9b-380e-4412-8f72-61dc7d0b7c85","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":225,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"ca043a8c-9b14-476f-b900-7387954bc276","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":225,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"d6c1f099-3772-4cd5-b13c-d3069d8cde30","block_type":"box","text":"performance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":225,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"3440cb76-3534-48e4-869d-75784103080a","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":225,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"832a64f0-f96d-432b-b26b-1ceaeb2b7ebe","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":225,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"81f9a96a-41df-4bf6-a9f3-b5e4e99b9416","block_type":"box","text":"more likely to deliver durable, long-term financial performance. By contrast, we have found that poor relationships","page_number":225,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"e7ccec8e-6b78-4e38-8293-3f4d284fdc87","block_type":"box","text":"12","page_number":225,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"5034e8a8-c05a-474f-8fc5-b129d6939d70","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":225,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"31baa209-7dc6-49b5-b042-7f157a93ab96","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":225,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"29c3667d-e7c3-4ba0-ac41-dd338ad5264d","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":225,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"1d31eb8b-8684-41ae-b386-a97d0db9cb01","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":225,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"3b204edf-9092-4c8e-9df0-dcbc5a6a72eb","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":225,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"fd45814c-055a-4b6a-9f03-ae80d029c22c","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":225,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"112a6084-ea0e-414f-826b-7bb583c7f22a","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":225,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"c6e68efa-80cc-425e-9f46-1c263be3c2cb","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":225,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"a1a49c7b-8043-41fa-a57c-6601aba39aa2","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":225,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"4d16d5ed-0725-46d0-92b9-2508f40ca461","block_type":"box","text":"13","page_number":225,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"e85618f1-7f1d-4337-af31-98cf4344bec2","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":225,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"8c567977-de8a-45e7-9254-c4d3d8183e22","block_type":"box","text":"2025.","page_number":225,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"394a39d2-6dff-4109-b900-066dc2196467","block_type":"box","text":"14","page_number":225,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"aaee96d8-7f26-4844-bb92-71acb71c0687","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":225,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"a86b73aa-db5a-4e13-af63-660d979b117a","block_type":"box","text":"2025.","page_number":225,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"4a41a038-d9fc-4304-aa92-77a093d69d61","block_type":"box","text":"15","page_number":225,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"92595c5a-b1d8-4b17-9584-ac41f320b0e6","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":225,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"8ffb9486-c789-47e9-9d32-722c548e213e","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":225,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"3eb08b47-10e0-46d2-9472-dd2388a10b7c","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":225,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"5799adc2-1e37-470e-8a37-9cc45dd73957","block_type":"box","text":"some companies may report using different standards, which may be required by regulation, or one of a number of","page_number":225,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"6eb8f67c-8232-42be-b5c4-03b690b0e43d","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":225,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"90836354-0e5b-4a41-a34e-eaad328bb6f7","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"16670f27-f5a9-4c4f-8546-7df0a5f5a23b","block_type":"box","text":"Global Principles | 11","page_number":225,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"4a1e833b-8dd5-439c-9c89-d5f55009a8f4","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":225,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1e7f6a8e-f865-459f-9fb9-7dc2caf9c7ca","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":226,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"1462ff7a-bfdd-4933-8fb3-6dfff5a404be","block_type":"box","text":"This is particularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":226,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"c4e90546-336e-4e7f-a0a0-073d76892d44","block_type":"box","text":"16","page_number":226,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"86b6533d-b9ce-44bf-a159-6fe915e3a2ac","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":226,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"dace2bf8-0f02-498d-8916-3cf0ed431702","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":226,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"1237ac61-8844-48e0-af6d-509c411e8424","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":226,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"02e0c844-5db0-470d-86d6-5c88c0f24815","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":226,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"776655eb-dd6a-4e9f-9936-ee2aa9ab4888","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":226,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"591aecc0-9c45-439b-8732-9a265a9556b2","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":226,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"580eec8d-003b-45ae-a9fd-65f06059eff0","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":226,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"7b73767c-b18f-4cd6-995a-62d3f3660b9b","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":226,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"b6dc9501-32e3-4d09-8c47-911d13b8c6b8","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":226,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"2a7896bd-966c-44aa-bba4-5c1fac9ffd12","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":226,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"34a618bd-1273-4ed6-8e0d-79e56ad22485","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":226,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"b6642a78-d68e-4799-b39b-ba6f7877af53","block_type":"box","text":"impacts.","page_number":226,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"01f54635-a6dc-46b8-ab0b-34563581e6b8","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":226,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"ee3c11b5-7001-4372-9b97-0dc8fb558f8a","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or supporting a business relevant","page_number":226,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"edd1cb7d-0b22-4ab9-b7db-38569972c037","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":226,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"e1bc49c4-323e-4fea-90d8-1a604a1a2dbe","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":226,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"9f01630e-3c24-4c7e-86b4-93b080998eac","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on behalf of","page_number":226,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"1ccdc6c8-ab75-4a4a-aa68-814039148169","block_type":"box","text":"clients at the global and regional level.","page_number":226,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"bfd82606-ca48-4218-9740-827172d70a96","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":226,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"290261e4-6c19-44ee-bb82-a8f6a0c9fe0c","block_type":"box","text":"supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":226,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"5d270084-c3c9-4ac8-803f-5835a9ffbc64","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":226,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"271e15fc-d815-40b0-9708-f314c232db70","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic reports regarding the votes cast by","page_number":226,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"5ad0105c-ab45-48ec-96a5-25ebfb617409","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":226,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"c7c57c3a-069d-4e80-9f4c-57674048c57a","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":226,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"e60032c8-fccc-4c3c-bdf3-14b3af8ecf06","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":226,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"a9b6cc83-ee79-4ee1-80df-68359748b39f","block_type":"box","text":"are independent from the investment stewardship function.","page_number":226,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"863777ec-2a83-4026-b1f0-d2190a8045a8","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":226,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"f47c7763-0f58-4220-a717-403011e63cc5","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":226,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"3ee168cd-bd46-4244-be96-97e7a9575bfe","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":226,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"37948cf3-e8c0-45ce-a84b-9e30d9425666","block_type":"box","text":"VOTE EXECUTION","page_number":226,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"3300a7f7-5cd3-4568-ac7f-c500de65ea6c","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":226,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"7a31fd50-1c46-4f9a-a47a-89d7588c1245","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":226,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"0750d05e-791c-431c-8e77-4a34bd967012","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":226,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"81c423ad-4139-4a8a-915b-1dfa6dca9849","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":226,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"81a55fed-81f3-418c-87f2-26334c7d1cfd","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":226,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"995a39af-6b2b-466f-82be-2232f1ec0e0d","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":226,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"58784194-16ab-4938-982d-7ba5e2d1feae","block_type":"box","text":"management policies and procedures,” below).","page_number":226,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"b4408965-898e-47d4-8ba5-edc3b9bf7195","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":226,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"6873ca2d-0ebe-4722-880e-fea4790081ba","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":226,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"ccefface-94c3-40e5-9099-83f811121aa1","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":226,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"90c26400-c26d-40b3-a3ab-7bd64022f674","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":226,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"83c9fd7e-aff4-48b2-a3dd-4d5e03feaa3f","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":226,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"a8a94059-061d-447a-b5f7-d1b3807e36a3","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":226,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"d7fb1f4e-20c2-48b9-8733-b4b23b243387","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to","page_number":226,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"3f6c9253-6990-4346-9808-053d77362f5d","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":226,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"c68cdf1d-2c92-43f8-9bd2-9f30bdc643b7","block_type":"box","text":"16","page_number":226,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"400bc260-bc44-4b52-8adf-33f3a36ab71d","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":226,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"03b13812-299e-487c-9de3-adf27fae9651","block_type":"box","text":"December 2025.","page_number":226,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"f3dc432e-fc7f-48a8-ab31-6b9a4eaf24ff","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"5e6bca85-bee4-4598-87aa-1e176673655d","block_type":"box","text":"Global Principles | 12","page_number":226,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"b7e5b86a-93a7-4c04-937e-e6e2c426da07","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":226,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e227b4cd-01f1-4761-b6ef-83fe0cedc75c","block_type":"box","text":"BIS votes proxies in these situations on a “best-efforts” basis. In addition, BIS may determine that it is generally","page_number":227,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"5df81d77-8756-47cd-8055-f00b69f8c36b","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":227,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"969e1ad7-a8ec-48a9-b744-b22c558321af","block_type":"box","text":"not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":227,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"bd8f7f8c-4254-41c3-9f12-a9339efb2304","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":227,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"3b031f6e-9e03-42be-879c-4090feb02944","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":227,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"89f6c383-afe1-4fca-aa65-033ecccc0a53","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business partnership or","page_number":227,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"87397d0b-227c-432b-b536-4a8c0ce2a2d2","block_type":"box","text":"enterprise-level vendor management activities.","page_number":227,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"aa1ad0a0-1c44-4bda-b4fb-882c056e1895","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":227,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"a15c0e54-152c-43fb-8506-4de142152c67","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":227,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"96490c26-43f3-4b63-8609-8312c29da10f","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":227,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"3adb4bc1-605b-49fb-adcb-7d8afc25f563","block_type":"box","text":"BlackRock employees.","page_number":227,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"4e978b49-d6b9-446c-a36b-94c737a211d8","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":227,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"cc7e6500-8842-4e98-9856-b77742af66ed","block_type":"box","text":"SECURITIES LENDING","page_number":227,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"c0de380c-f33b-49bc-9bfd-caf2725d270e","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":227,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"508ed526-cc5d-4faa-afbf-b3f0788c5ee5","block_type":"box","text":"enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending agreements allow it to","page_number":227,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"2dbc15d8-1c71-48f1-81c2-5e49d1c42b62","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":227,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"393f7c53-176c-4990-8661-757694ae4c0c","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":227,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"2720a120-d985-4ca9-aac6-47f8c66b70ff","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":227,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"6dfd4a81-05bc-47dc-997d-0ce98c9445ed","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":227,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"362c794f-e56a-4b2b-9604-cc7446daa864","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":227,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"bb0c9e92-6728-4c02-bbd2-c65483625466","block_type":"box","text":"in helping them achieve their investment goals. While this has occurred in a limited number of cases, the decision to","page_number":227,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"a9528952-5d06-4045-8be2-df2e81a3c8d7","block_type":"box","text":"recall securities on loan as part of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":227,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"ca4d4f22-3397-4f37-9f90-51979c5609b9","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":227,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"b38c77d4-0a76-4e12-acf4-f0fe15348697","block_type":"box","text":"potential long-term financial value to clients of voting those securities (based on the information available at the time","page_number":227,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"8a84080a-3b88-4e42-a49b-416393178b67","block_type":"box","text":"of recall consideration).","page_number":227,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"d76d33d7-7c1c-460a-84c2-744602715f73","block_type":"box","text":"17","page_number":227,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"268dd60d-8d9d-4d8e-963c-f7c1537ab66e","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":227,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"dd526008-105f-4ff3-aeca-7830a5100cda","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":227,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"783609ac-1d80-4a4a-9e66-31acdda39aad","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":227,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"afd35d6f-f858-433c-be08-42f8631ece66","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in certain instances,","page_number":227,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"541669f4-d05d-49c8-b88b-28b7ef8d72f3","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":227,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"89d2074e-8f03-4b50-8ceb-f523cc19910d","block_type":"box","text":"the securities lending revenue loss to clients and would therefore recall shares to be voted in those instances. It is","page_number":227,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"f1e30018-c422-4d54-ba74-e08c2fa51300","block_type":"box","text":"important to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":227,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"67c3bac8-6d0f-468e-8197-9d51029bb28b","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":227,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"6526edb2-4df4-4248-ace6-7929ae507ba5","block_type":"box","text":"and may modify it as necessary.","page_number":227,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"02b956de-4840-45f1-8301-709bf0d23f54","block_type":"box","text":"VOTING CHOICE","page_number":227,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"4daff9ee-2c01-4d89-922c-d7140fd40a33","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":227,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"a19057dc-ccfb-4731-9f75-53b5b2cd39f4","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":227,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"5e549871-204d-43a7-b9ea-5a1ce1c51e1b","block_type":"box","text":"18","page_number":227,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"8e117949-9fc9-4e2e-a4cc-047473d34cc6","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":227,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"eaffd9e6-4f9b-427e-8f84-cf4bf93252a0","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":227,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"01539fa0-d69d-4b61-b03b-a19a537e8102","block_type":"box","text":"17","page_number":227,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"6200f0b7-41d2-4ec9-ac5d-472b041e7d25","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. In the U.S., for example, the record","page_number":227,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"7902a081-d27b-4ba0-aaad-b2f405d6e844","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":227,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"9ae35ec8-cabd-4da6-9226-6681e1b2ba71","block_type":"box","text":"practicable to evaluate a proxy statement, determine that a vote has a material impact on a fund and recall any","page_number":227,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"18f868bb-9370-4423-9bbe-01e878cd6d0b","block_type":"box","text":"shares on loan in advance of the record date for the annual meeting. As a result, managers must weigh independent","page_number":227,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"64f3d0b6-2780-421c-929f-b7fb925430dc","block_type":"box","text":"business judgement as a fiduciary, the benefit to a fund’s shareholders of recalling loaned shares in advance of an","page_number":227,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"2500cf2f-4989-4007-a8a1-e0b66610589e","block_type":"box","text":"estimated record date without knowing whether there will be a vote on matters which have a material impact on the","page_number":227,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"70b16357-cfae-436b-81bf-a5a9b8f0dc3e","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":227,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"7518d3f9-2b79-43f4-ab03-a6f890feeb26","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the opportunity to vote).","page_number":227,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"bfed3996-9702-4b21-a5a6-a9afff527a7b","block_type":"box","text":"18","page_number":227,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"41951d71-5b2b-4945-bfb4-74d412b9ee23","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":227,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"7709d1ed-6f21-48e6-93fe-ebc3cd4e6524","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":227,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"840a35e5-b93a-48c8-9a74-9ab7ec7fa471","block_type":"box","text":"including the decision to lend securities.","page_number":227,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"2a939203-57d9-4fc5-9cae-ea9baa83ac27","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"df17e5b6-7ad9-4b44-9eac-2c6c6fb9d2f4","block_type":"box","text":"Global Principles | 13","page_number":227,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"b1ee1e36-bb73-4571-ab24-6e3068a0a0ba","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":227,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7e57a30e-0a25-4c32-ad23-5c47b1b57cb0","block_type":"box","text":"certain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":228,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"b01681c8-f302-4e8d-bb0f-51de80d892bd","block_type":"box","text":"(SAE) strategies. In addition, institutional clients in separately managed accounts (SMAs) continue to be eligible for","page_number":228,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"47c0d8ae-aae0-4154-b716-f6892cf0ffe8","block_type":"box","text":"BlackRock Voting Choice regardless of their investment strategies.","page_number":228,"box":{"x":70,"y":75,"width":471,"height":11}},{"id":"71bd70e4-9bbd-4ddb-9341-803671f240b9","block_type":"box","text":"19","page_number":228,"box":{"x":543,"y":75,"width":9,"height":5}},{"id":"fbf63ae8-df4b-4a87-8b9d-faf1956096dd","block_type":"box","text":"Voting Choice is also available for eligible U.S.","page_number":228,"box":{"x":558,"y":75,"width":328,"height":11}},{"id":"cfa230f3-d13c-4ac8-966b-181a8c0888b6","block_type":"box","text":"retail shareholder accounts invested in BlackRock’s largest U.S. exchange-traded fund.","page_number":228,"box":{"x":69,"y":90,"width":619,"height":11}},{"id":"0c2c2758-13e1-416b-a94b-ac71d750c701","block_type":"box","text":"20","page_number":228,"box":{"x":690,"y":90,"width":9,"height":5}},{"id":"3a142539-3270-4746-bbb8-20bdd0183766","block_type":"box","text":"As a result, the shares attributed to BlackRock portfolios in company share registers may be voted differently","page_number":228,"box":{"x":101,"y":113,"width":782,"height":11}},{"id":"6da5ee95-d19e-4a9e-8c78-d39df9beb1fa","block_type":"box","text":"depending on whether our clients have authorized BIS to vote on their behalf, have authorized BIS to vote in","page_number":228,"box":{"x":69,"y":128,"width":767,"height":11}},{"id":"2ab2e1ec-a4fa-48e3-8cc3-2042dfe83b32","block_type":"box","text":"accordance with a third-party policy, or have elected to vote shares in accordance with their own policy. Our clients","page_number":228,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"a6ab56a2-6e0d-4c92-8a54-b01bc63efa1e","block_type":"box","text":"have greater control over proxy voting because of Voting Choice.","page_number":228,"box":{"x":69,"y":158,"width":454,"height":11}},{"id":"3b8d1c37-d4e2-42c4-a294-ccf43cc0de25","block_type":"box","text":"21","page_number":228,"box":{"x":525,"y":158,"width":9,"height":5}},{"id":"d0326c88-208f-4338-9165-44a59502e9eb","block_type":"box","text":"REPORTING AND VOTE TRANSPARENCY","page_number":228,"box":{"x":343,"y":188,"width":293,"height":9}},{"id":"33dd0e84-195f-48f1-8370-e2e8e28a4b45","block_type":"box","text":"We are committed to transparency of the stewardship work we do on behalf of clients. We inform clients about","page_number":228,"box":{"x":101,"y":211,"width":789,"height":11}},{"id":"9a882ad5-4de4-47af-be6c-a6c6d98af96d","block_type":"box","text":"our engagement and voting policies and activities through direct communication and through disclosure on our","page_number":228,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"9e230ffe-2088-414f-8965-7e4a07f64737","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":228,"box":{"x":68,"y":241,"width":795,"height":11}},{"id":"30be9407-d6b4-4f94-92c5-4973dc6ba2d1","block_type":"box","text":"invest on their behalf. We also publish commentaries to share our approach to engagement on our five engagement","page_number":228,"box":{"x":70,"y":256,"width":825,"height":12}},{"id":"72f71976-57db-45e6-aac6-344775c51175","block_type":"box","text":"priorities, as well as quarterly reports detailing our proxy voting and engagement activities.","page_number":228,"box":{"x":70,"y":272,"width":644,"height":11}},{"id":"3dfb4e30-fc3f-485d-a195-65d6182fc0b5","block_type":"box","text":"19","page_number":228,"box":{"x":69,"y":324,"width":9,"height":4}},{"id":"1af1f4ab-4ea0-426b-93ee-71df7f11e088","block_type":"box","text":"With Voting Choice, SMA clients have the ability to select the policy that best aligns with their views and","page_number":228,"box":{"x":83,"y":323,"width":739,"height":12}},{"id":"eb96d1d0-c77e-4de5-80b8-b5bd6b0395b6","block_type":"box","text":"preferences from a set of voting policies from third-party proxy advisers. BlackRock can then use its proxy voting","page_number":228,"box":{"x":70,"y":338,"width":800,"height":12}},{"id":"5211a13d-53ec-4beb-8f4c-6e58fd2b33d7","block_type":"box","text":"infrastructure to cast votes for the SMA based on the client’s selected voting policy.","page_number":228,"box":{"x":70,"y":354,"width":596,"height":11}},{"id":"6e3a09e2-902c-439c-b0db-d2ed0a403eec","block_type":"box","text":"20","page_number":228,"box":{"x":69,"y":372,"width":9,"height":4}},{"id":"853c6d90-a515-49dd-8c3c-ae02bb1cffd9","block_type":"box","text":"Read more about BlackRock Voting Choice on our website.","page_number":228,"box":{"x":84,"y":371,"width":415,"height":11}},{"id":"6e91661c-d551-4ea9-a884-0fe858bcc1bc","block_type":"box","text":"21","page_number":228,"box":{"x":69,"y":389,"width":9,"height":5}},{"id":"ea7eaf4d-4e2a-423c-9e13-14661eb57f2f","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":228,"box":{"x":84,"y":389,"width":820,"height":11}},{"id":"cef11c69-692f-4749-9b7f-30afb4a1eedd","block_type":"box","text":"BlackRock Investment Stewardship","page_number":228,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"b5111c59-c372-44d1-bb0a-000309b978d8","block_type":"box","text":"Global Principles | 14","page_number":228,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"701aae01-c7eb-48ea-a615-7ea56a28701b","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":228,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"41d446ca-a940-4b94-b02b-f81c37810f66","block_type":"box","text":"Want to know more?","page_number":229,"box":{"x":68,"y":731,"width":152,"height":9}},{"id":"b3432ee4-457d-4793-b6fb-acbe33545845","block_type":"box","text":"blackrock.com/stewardship | contactstewardship@blackrock.com","page_number":229,"box":{"x":69,"y":761,"width":464,"height":13}},{"id":"5212446e-0139-42f1-ac44-1006feb5c494","block_type":"box","text":"This document is provided for information and educational purposes only. 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They also incorporate the more ambitious","page_number":232,"box":{"x":69,"y":594,"width":834,"height":11}},{"id":"aa0b6417-9343-4d11-92e3-37f4cbfccbda","block_type":"box","text":"goal of the Paris Agreement - namely to limit average global temperature rise to 1.5°C above pre-industrial levels.","page_number":232,"box":{"x":68,"y":609,"width":806,"height":11}},{"id":"29f036fc-3113-46f3-a661-0f3ce2c644e0","block_type":"box","text":"6","page_number":232,"box":{"x":876,"y":609,"width":4,"height":5}},{"id":"f8780ddc-eb3e-44c6-907e-a040e1bb87a3","block_type":"box","text":"The Guidelines apply primarily to companies in sectors that play an important role in the transition to a low","page_number":232,"box":{"x":101,"y":632,"width":766,"height":11}},{"id":"466fe7fd-4e57-4340-b406-1cd75940dcc6","block_type":"box","text":"carbon economy. 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Under the Guidelines, the dedicated team","page_number":234,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"29394b09-01e6-4647-a40b-4cf0e76405f5","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":234,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"cd60f55e-99e9-4d49-8ece-fad2f9f1af16","block_type":"box","text":"judgment of the priorities and outcomes most aligned with participating clients’ investment objectives.","page_number":234,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"5e6431ff-ef0e-42da-b3ca-b9e97e4fd5d4","block_type":"box","text":"Voting approach under the Guidelines","page_number":234,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"ff1cd1fe-4c7e-493d-913d-63104c456a43","block_type":"box","text":"12","page_number":234,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"f9fa7fb5-7221-4897-95e3-f71e981be93f","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":234,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"7d3790e1-542e-4199-89f1-532a6ce8fe96","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":234,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"7e19fc01-cf47-4277-8ebb-3b3ead3772a7","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":234,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"29192a23-7638-4096-9811-5f93ca2bbb0f","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":234,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"b3cd5741-8c32-4fe1-8cd3-ab8cc6b5ec45","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":234,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"cb17380a-6a83-4ac3-9e43-2feeb1a5b25a","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":234,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"7a218e9d-5982-43a8-8902-21ac53a35ba3","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":234,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"bd3cb3ab-12c6-4ea5-9fc8-351c9772f9e1","block_type":"box","text":"Corporate Disclosures","page_number":234,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"54ab61d0-4f2d-4740-afc9-50ba4e46e050","block_type":"box","text":"13","page_number":234,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"eaa51805-41ea-4431-8fea-d810aa5c231d","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":234,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"eb84e62f-d3e0-4b39-83c0-70f3664e021d","block_type":"box","text":"assess whether the company’s strategy is aligned with the low-carbon transition. 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This would typically include a long-term strategy to achieve","page_number":234,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"a56af753-dba2-4931-8fe6-585d13b3fcc8","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":234,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"7cbbc4ae-ec14-47b9-ae47-4002b878fba6","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data supports investors","page_number":234,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"e419a042-8644-4151-8b98-5c621f17c02e","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":234,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"d1f413e2-5e2d-4475-b7b5-b1a3ee19382c","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":234,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"3346f588-b858-43ac-879c-1fedf921d87d","block_type":"box","text":"14, 15","page_number":234,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"e6bc5922-6634-4ffc-98ae-68346c95c29f","block_type":"box","text":"IFRS","page_number":234,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"d969db6e-588f-4b97-bd68-733659f2d8ca","block_type":"box","text":"S1 addresses the general requirements of sustainability reporting and IFRS S2 sets out the disclosures that","page_number":234,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"8dd3c4c6-e24a-41fc-8e9e-336cc53af906","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":234,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"8eec812d-e17f-45eb-8349-9a0fe23e8663","block_type":"box","text":"transition-related risks and opportunities. This includes receiving independent, third-party assurances, as audit","page_number":234,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"07f711f4-931f-474b-810d-e73b3a39ca9f","block_type":"box","text":"and assurance standards are developed.","page_number":234,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"cfaac998-ca96-42bc-901a-fd163b4c8589","block_type":"box","text":"12","page_number":234,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"0b60e748-9ac8-4f7f-80f0-dce7a04cb673","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":234,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"216b5ed7-4e15-4538-b2ed-bf232f321bea","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":234,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"c5d11311-886f-4da5-ac22-3f0aa4a786e5","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":234,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"44dd2f19-898c-42d5-a5ba-f14037d6da0b","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":234,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"710bb5cb-b51a-43d8-8c77-ffb85300fa98","block_type":"box","text":"13","page_number":234,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"9dca6b5f-719a-4e25-a9f1-a560d153d733","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":234,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"32b39455-9aea-4677-9609-a7923a868265","block_type":"box","text":"reporting methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their","page_number":234,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"dc77d899-ed9e-49c1-a957-75d1c494170e","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":234,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"536ae2c6-2df8-4b54-b29a-88952676dc8d","block_type":"box","text":"14","page_number":234,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"1bf6bf42-6fb6-4b18-80a9-54a372f1ec5e","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":234,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"a5e6ec3c-acfb-4508-8b5b-5d0214d94787","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":234,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"c637a33a-0f2d-4673-8d99-d73021a1da84","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":234,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"2410da33-ea5b-482f-90dd-820e039cc2db","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":234,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"12b2f0e8-c2ef-4a32-9133-e8ddbc167721","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":234,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"424c20cc-1a0e-4f9e-923a-ca18a3ff92aa","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":234,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"fbe684cf-482e-46af-9b29-44fa62cd123c","block_type":"box","text":"15","page_number":234,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"6164b8f8-2da7-45a6-8f5e-52de81d2e836","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":234,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"511eae56-5ce6-4dca-ae87-d3214efc4891","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":234,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"33a967c4-44ef-4111-8b03-778fad51eb8b","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we","page_number":234,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"4a0e8337-fd7a-4ffb-9d7a-5f8d91993ba8","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":234,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"a099c6e5-d78b-417a-87cf-f1d0138035d9","block_type":"box","text":"may be phasing in reporting over several years. We do not prescribe timelines regarding when companies should","page_number":234,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"2a676720-af85-472b-b2ba-b19022cf9d6c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":234,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"7e46067b-9b00-4f0d-9cb9-be57fec460e2","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":234,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"49852e20-17ce-44f5-a935-c710f40a254c","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":234,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"524e1e59-ec6a-438d-abda-d0d90083e130","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":235,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"cff3990b-47e4-4721-b2f6-4ac918fda070","block_type":"box","text":"16, 17","page_number":235,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"36a14ff4-092a-4e95-beba-9519c35bfeeb","block_type":"box","text":"In addition, the dedicated team looks to","page_number":235,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"966bff2b-01d9-4250-950d-8d8989e4ad09","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":235,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"9ba2ef5a-97a4-438c-95ae-896ea5b1bac7","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":235,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"9d1728ba-60d3-450c-860e-0993907f6af1","block_type":"box","text":"scope 3 emissions reductions. 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For some companies that play an important role in the low-carbon transition, scope","page_number":235,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"849bceeb-aa03-4613-a025-8b7b5609cdde","block_type":"box","text":"3 may represent their only significant source of GHG emissions in the value chain. While we do not believe","page_number":235,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"43abb04e-d536-42c6-9189-2ff3fd4ef171","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":235,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"fc0bcae7-2d2b-4107-a4f4-cf0a596a808d","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":235,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"1fbcbb34-3e31-4cf1-9991-077cb305a38d","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":235,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"2739a44d-5078-4c94-9ae3-5377a287bd4d","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":235,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"ae63456c-2e49-4b8c-81fc-dc5e3137a111","block_type":"box","text":"transition risks.","page_number":235,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"00d98106-a202-4a77-9a5f-7806e95b4457","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":235,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"935df8cf-9ef0-4cb6-a60f-8279915ed076","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":235,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"19f6df4f-16a0-4ba3-b399-f4fa40eeff25","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":235,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"6499e15a-a804-4d0a-af01-b09f8936a546","block_type":"box","text":"Transition plans","page_number":235,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"ef4cf082-8a45-4622-9ced-6179f7a4c08a","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":235,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"944b938f-d0b0-438f-b144-ce410c198d02","block_type":"box","text":"transition strategies. As defined by the ISSB, a transition plan “lays out the entity’s targets, actions or resources for","page_number":235,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"7594439d-1f16-4ee1-9443-21443478f178","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":235,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"ec83d2ad-9351-40b9-8fa5-6131c4f3eb91","block_type":"box","text":"(see Appendix 1).","page_number":235,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"6a77e33d-14c3-4f2d-9187-4c61b0126089","block_type":"box","text":"19","page_number":235,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"6cc40f57-87b0-4d13-8da6-073eed9ab123","block_type":"box","text":"Work is also underway in a number of jurisdictions on establishing a common approach in a market to corporate","page_number":235,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"3c542607-532a-4362-b785-abf22e8fb21c","block_type":"box","text":"transition plans.","page_number":235,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"f6bc4504-e75b-4583-95e7-5b0fc92bcef3","block_type":"box","text":"20","page_number":235,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"3a7f6421-3606-455e-b17c-f4c329c44b51","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":235,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"08b59ead-7b07-4ac7-bd14-442efb0b10bf","block_type":"box","text":"reporting approaches.","page_number":235,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"2d31a458-7969-41f4-9f7b-4b4fa6297d49","block_type":"box","text":"While the preparation of a transition plan, or lack thereof, is not, in itself, a voting issue, these disclosures","page_number":235,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"b9ef157b-703b-4140-9490-28dd8711ec1b","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":235,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"68be51b8-1118-4941-b7ea-3ebc426f4fc8","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":235,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"d3e8f6a0-a290-44ac-a071-d47796a91572","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":235,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"001e1283-a60c-4d5f-b8bc-98fe67a2f2a0","block_type":"box","text":"their shareholder meeting, to the best of their abilities, to provide investors with time to assess the data and make","page_number":235,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"857803f7-29fd-47d6-a3ec-9109dbc84b13","block_type":"box","text":"informed voting decisions.","page_number":235,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"387c4de8-fa34-4209-8e4e-bc0636762880","block_type":"box","text":"16","page_number":235,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"82b39c8b-8917-42b6-9c6e-1ae51326ac84","block_type":"box","text":"FTSE Russell address the materiality of different categories of scope 3 GHG emissions by sector in a January 2024","page_number":235,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"10251ce1-1570-4b88-9ead-3d961c7f645c","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":235,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"4ae2061a-61b4-41cd-b071-d433d8df9daf","block_type":"box","text":"December 2025.","page_number":235,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"8af3f4cd-53f3-4757-9564-6df4828d52a6","block_type":"box","text":"17","page_number":235,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"636253fc-a909-4b26-8b64-094c1b63bcf1","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":235,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"0f6fa343-5ed4-4ac8-8464-ba3137ef3646","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":235,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"3b0fd895-feba-4a48-a930-54b0e4526cc3","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":235,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"401d8fec-dd35-40ce-84b6-ddcfe322194e","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":235,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"9dc73989-f089-4988-8369-d3d236959bea","block_type":"box","text":"18","page_number":235,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"8673da0a-8402-431f-8ce5-257806100d8a","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":235,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"c1fe7484-bd56-4314-985d-0c2efe89c82b","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":235,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"342da63c-af95-4426-b1ef-80ad9a7444b5","block_type":"box","text":"complexity for scope 3 emissions and the lack of direct control by companies over the requisite data, we find it most","page_number":235,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"cd1306bf-7f3d-4f59-a372-40420be976f9","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":235,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"67c60ea8-0348-4461-a425-a793e04c6170","block_type":"box","text":"material to their business models.","page_number":235,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"176a94fa-7979-4391-a08a-ea5d8a5c57a8","block_type":"box","text":"19","page_number":235,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"d17d8c84-96fa-400e-982a-125b406f78bc","block_type":"box","text":"International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":235,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"a0a42760-b233-40d1-a2a0-447bd0b025a7","block_type":"box","text":"December 2025.","page_number":235,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"161b1e9a-bc0c-4c81-b97b-5e80c7316602","block_type":"box","text":"20","page_number":235,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"bef3957f-9140-4274-a920-6f85f4cc1545","block_type":"box","text":"More companies are developing such plans, and public policymakers in certain markets are signaling their","page_number":235,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"26941605-a8e5-49ce-8317-d3ef502f39eb","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":235,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"82b1cf89-1957-42fe-8ac3-6b2e2313aeca","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":235,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"b381bfc9-d65f-4c67-8413-5fd7e9b8e3ec","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":235,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"4da8ccf4-7a19-46fd-86c1-f753a12c97c7","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":235,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"33f0c76b-e2f0-4f25-ac57-5c383faf6a23","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Where the dedicated team","page_number":236,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"44d7b4e8-670c-4921-bd12-f1c387bdecec","block_type":"box","text":"determines this is not the case, it may vote against the election of one or more directors who the team identifies as","page_number":236,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"3bb73355-03d4-487d-8ed3-0c85c13a5e37","block_type":"box","text":"having the most responsibility for the issue. 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The Guidelines consider these","page_number":237,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"f2756c4a-5991-4eec-9f40-75d704002908","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":237,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"b6074032-36ec-4991-9cf0-ecaa4342a86e","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally supports management’s climate","page_number":237,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"7d228010-1bcd-447a-9bd9-baad2544b9bd","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":237,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"8c5ebcb5-aba0-4d4a-a620-fad47356f3ad","block_type":"box","text":"transition. Similarly, the dedicated team generally supports management’s proposal on a progress report if the","page_number":237,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"4750dc94-b5bd-41f3-9182-4e09e971d283","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":237,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"ce83d569-239e-4f17-bf89-866cd4fe4bcb","block_type":"box","text":"transition plan and targets.","page_number":237,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"be76148f-6297-4105-b39a-70d7c6bca6c2","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":237,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"5c5e43e3-7eb8-4533-964a-0b30b0639459","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":237,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"50214c3d-82f1-4a1b-9137-f6c1b98517fc","block_type":"box","text":"long as certain requirements are met. 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The dedicated team assesses the implications for, and the relevance to, the","page_number":237,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"69dbde99-a689-4730-be89-453be0562fd4","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may support","page_number":237,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"6ab5f97d-89ee-4b71-bb4b-32d91ce19412","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":237,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"7b999b53-a5b2-42ec-94de-4762ace34637","block_type":"box","text":"•","page_number":237,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"59d0e30d-31aa-4ad3-90c8-59e4e5c65053","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":237,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"2c2957c6-83bf-471c-a524-ab5291f6384d","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":237,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"634c2242-cf3c-4dd7-8f03-89ebe85cc64b","block_type":"box","text":"•","page_number":237,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"9137b557-30a5-4be1-809f-4d3976b498a5","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":237,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"76cf32a2-cacd-4068-a5e3-ea3bb380f309","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":237,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"f1e54a0c-bc4b-457f-a4f1-603dc1ebe080","block_type":"box","text":"•","page_number":237,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"c012ca6f-4413-402c-abf0-5f079628f41a","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":237,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"6ef2ae35-55ff-44d9-accb-351084ec785f","block_type":"box","text":"•","page_number":237,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"9e41ac2a-5da2-4e1a-85aa-07c9bca86f06","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":237,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"1960fd6a-90dd-4a55-93bc-2c686559e339","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":237,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"c70edffe-9edf-4099-8ccf-d9a365884266","block_type":"box","text":"25","page_number":237,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"2b0df44f-063b-458a-a3d5-8321e196b709","block_type":"box","text":"The dedicated team does not support shareholder proposals that seek to constrain board or management","page_number":237,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"1decbabd-deff-45cf-b442-4b041bf56599","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":237,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"af03348c-29cf-4a5f-9d97-40f55a40985c","block_type":"box","text":"RELATED MATTERS","page_number":237,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"828b8e90-685d-4c7a-ad03-d8271ab8319f","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":237,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"26b663ba-a1fe-41b6-8171-7f9867e57bdf","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. 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Some companies, in light of their long-term strategy, may decide to include relevant","page_number":237,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"874da096-7a4c-43fd-867b-40e4a44509e4","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":237,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"d25a4a39-8c47-43f2-bde1-9a06e12ab8e3","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":237,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"980342a8-53fe-41da-b3dd-9a28e4b70f12","block_type":"box","text":"24","page_number":237,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"882c7f6b-bd14-420c-a51d-da135b38d562","block_type":"box","text":"While the dedicated team may escalate voting by not supporting additional management proposals, principally","page_number":237,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"470000f7-c9fa-40f3-8aab-61a8d0365d67","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":237,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"37585dc3-d883-41ed-8a14-db621fee573b","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. 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Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":238,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"e261977d-86ea-4f0f-908e-308f98b88ffd","block_type":"box","text":"strategy and risk management.","page_number":238,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"a6cc23e6-d223-4c89-a59e-50f48d69d570","block_type":"box","text":"Auditors and audit-related issues","page_number":238,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"ad7cf141-2780-471f-bd25-bfb0bd2c38dc","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the dedicated","page_number":238,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"d8c5d7c0-0587-4da9-97bc-1f7982e1ac3f","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":238,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"1ec69fb6-76a4-462b-86cc-5e2dd543a731","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":238,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"08b75cb2-f90a-4365-ad1e-f8c712d3502a","block_type":"box","text":"context of its audit report. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":238,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"aa5edc69-90ce-450e-a43b-d78ab48ddcde","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":238,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"9661fcac-c604-44f6-a0c2-8ea6e9c4407d","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":238,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"174e90cc-cc49-4407-a155-873ee1b865b1","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":238,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"cb3085a4-8240-42bb-b92c-50bd903affc7","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":238,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"97d1514d-3e2c-4e1f-8e4d-9620715b324c","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":238,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"dc421e82-a5be-4fbc-b8b8-301b25e09de5","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":238,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"98abf264-aad9-4fc4-bf87-f0a0a1531127","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":238,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"d59b489c-bac7-454e-bcdc-d81aba199018","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":238,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"ef59593e-24c1-4a89-8d58-e326a8cb942d","block_type":"box","text":"sustainability-related risks and opportunities that may be relevant to a company’s business model and long-term","page_number":238,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"1520c0c8-b0c7-4894-901f-9766350989e4","block_type":"box","text":"financial performance. These include a company’s impacts or dependencies on natural capital and key","page_number":238,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"0872fa34-84dc-4a51-a65c-f626bb25b953","block_type":"box","text":"stakeholders.","page_number":238,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"7a6de2cb-fa0a-4469-a95a-39966abc7cda","block_type":"box","text":"26","page_number":238,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"9c4bdc30-b130-4c92-86b0-c9b3c726bd01","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":238,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"0b9a17fe-8f1f-4a5d-8668-cbe277342273","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":238,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"2b2bf078-3cdb-46e0-bde7-b0c53f52775a","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. Similarly, the","page_number":238,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"1cc66fcf-df93-4357-bd94-c541d54cec0f","block_type":"box","text":"team may engage companies that face risks and opportunities related to land use and deforestation, access to fresh","page_number":238,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"fd471bd8-12a7-438c-a236-1117efc53d04","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":238,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"d5d8d52b-55c8-4a13-a23c-2cd2f5fead75","block_type":"box","text":"26","page_number":238,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"8e9ec463-9e1d-40dd-b10d-4ec592e805b0","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":238,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"eabc8181-12ed-4c1c-bd24-6fa2918c7286","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":238,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"39f91be3-5414-428b-ad3c-4646fa32d9e5","block_type":"box","text":"BlackRock Investment Stewardship","page_number":238,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"b2c62e2e-dc4b-4e32-b0fc-efb859334eb9","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":238,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"3aba856a-bbf4-4c2f-8bd2-eaa52e6dfc68","block_type":"box","text":"BNM1026U-6032383-19202707","page_number":238,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"301856d0-da36-4e9a-9079-edfa651bb9ab","block_type":"box","text":"Appendix 1","page_number":239,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"5f352dcd-6737-4165-b233-dfe8a6977a6a","block_type":"box","text":"Terminology","page_number":239,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"bcb28b9b-baa8-4847-9a2a-a76cec91fe68","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":239,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"c884a4d7-d3ec-433d-ade4-f627fcbce2bb","block_type":"box","text":"Climate risk:","page_number":239,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"f2bb3969-f379-4ac9-90ac-cef545fab747","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":239,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"e7c9fa74-762f-484e-8d5b-fc732daf7c8a","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":239,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"55087cd6-3e8b-4ce7-8da0-4e58069456c9","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":239,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"efea05eb-f642-431c-b25c-5a17c80239fc","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":239,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"9c2e4559-4417-4a92-a41d-5e26ec909507","block_type":"box","text":"The global economic shift toward lower","page_number":239,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"415dd2c7-be6a-4354-9726-caca01e84f96","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":239,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"956af3ed-3e78-4bd2-a714-65f6da499ec8","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":239,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"c0787ba9-02c9-463f-b959-92d3fe77f9d6","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and portfolios.","page_number":239,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"25180297-dd26-4516-ad42-2636b3629ff0","block_type":"box","text":"Decarbonization:","page_number":239,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"865b3c20-bcaf-47be-90be-fb10cc27f3aa","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":239,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"410502e2-5f4c-4902-864f-99e272c1aab8","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":239,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"69d61523-acad-4244-b866-683ebb562712","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":239,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"a7b3d408-da74-471c-be17-7005bb316a52","block_type":"box","text":"e.g., methane.","page_number":239,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"5ab93b69-4e03-40e7-ab3b-55b0d5b78b66","block_type":"box","text":"Climate-related risks and opportunities:","page_number":239,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"d5e71865-a4f9-4107-a27a-6086d4163902","block_type":"box","text":"The investment opportunities and risks associated with the transition","page_number":239,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"11e44110-0fa1-427e-8ee4-0ab2f8700907","block_type":"box","text":"to a low-carbon economy, including transition risks and opportunities and physical risks and opportunities in adapting","page_number":239,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"8d8bf2bf-7b67-4a7d-be13-b5f4c5149772","block_type":"box","text":"to physical climate change.","page_number":239,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"ec50e931-45b2-4960-ae03-25c3cb7c8890","block_type":"box","text":"Climate-related transition plan:","page_number":239,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"f2b8d160-83eb-483e-a9fa-ca11bec016ab","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":239,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"418780d3-4190-4c51-9a38-1bb831f57356","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":239,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"9ab3d76b-f530-407a-9901-16c2196d57b5","block_type":"box","text":"greenhouse gas emissions.”","page_number":239,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"145f5626-89e7-4b8b-85ae-f8dbb50e7735","block_type":"box","text":"27","page_number":239,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"5846de2f-a527-4920-9b82-2e223a56305e","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":239,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"dc5950bb-c9fc-400e-84f1-cb05e9bedb2b","block_type":"box","text":"Targets that “","page_number":239,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"4023404e-daf9-46b7-b7be-56f19d0c4d53","block_type":"box","text":"are in line with what the latest climate science","page_number":239,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"26e22c0e-0c1a-48e9-ae55-fe7b0bd9157f","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":239,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"0cd7573b-aa1e-4d2f-9ea2-95164a1ac54d","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":239,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"51dd782d-1af3-4251-a13c-0ab8dd40e477","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":239,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"980e7bdf-09f3-41fa-8492-3ec422e095f7","block_type":"box","text":"with the Paris Agreement goals.”","page_number":239,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"300bb987-5d66-45fa-875d-a8a9179b79e7","block_type":"box","text":"28","page_number":239,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"380f9425-8497-4595-ba36-8c85bb6bf056","block_type":"box","text":"Scope 1:","page_number":239,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"639ba02e-cf45-46bc-b55b-327a402aa468","block_type":"box","text":"Direct GHG emissions. Direct GHG emissions occur from sources that are owned or controlled by the","page_number":239,"box":{"x":172,"y":498,"width":718,"height":11}},{"id":"5ee03cef-fc3d-47c1-850a-9ff10da29a09","block_type":"box","text":"company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions","page_number":239,"box":{"x":69,"y":513,"width":836,"height":11}},{"id":"cd52f6a7-9c17-4dd2-b067-320283d420d8","block_type":"box","text":"from chemical production in owned or controlled process equipment.","page_number":239,"box":{"x":68,"y":528,"width":489,"height":11}},{"id":"411ac499-85ea-45c3-8333-6754581d8c97","block_type":"box","text":"29","page_number":239,"box":{"x":559,"y":529,"width":9,"height":4}},{"id":"1d26d564-4572-43e0-8ddc-6ee2f4ab10a2","block_type":"box","text":"Scope 2","page_number":239,"box":{"x":101,"y":551,"width":59,"height":11}},{"id":"0b68d2e2-6285-4c8b-ba15-18c0f8a3586f","block_type":"box","text":": Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of","page_number":239,"box":{"x":162,"y":551,"width":685,"height":11}},{"id":"9b4a6c25-1920-44af-8b5e-e391f0cdc24a","block_type":"box","text":"purchased electricity [steam, and heating/cooling] consumed by the company. [It] is defined as electricity [steam,","page_number":239,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"6fa63915-099d-48de-8cf9-00130fd964c3","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":239,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"a78bbe1d-920a-451d-9feb-6e7671252ffa","block_type":"box","text":"30","page_number":239,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"43a6e30d-4de0-4fce-a548-230a46c4c7a9","block_type":"box","text":"Scope 3:","page_number":239,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"c51cdb9d-0f13-4a37-9bb9-6b7a9a29e175","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional reporting category that allows for the treatment","page_number":239,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"f11ed040-f947-4f03-9370-a717a894b4a2","block_type":"box","text":"of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur","page_number":239,"box":{"x":69,"y":619,"width":803,"height":11}},{"id":"dc838d25-6792-40ae-89bb-2eca16b105fd","block_type":"box","text":"from sources not owned or controlled by the company.","page_number":239,"box":{"x":68,"y":634,"width":386,"height":11}},{"id":"19857487-4740-4cdf-9dc9-daf56406045f","block_type":"box","text":"31","page_number":239,"box":{"x":456,"y":635,"width":9,"height":4}},{"id":"a767c86e-ee47-414f-b434-b67fc8e59a96","block_type":"box","text":"27","page_number":239,"box":{"x":69,"y":679,"width":8,"height":4}},{"id":"407c0bfe-ffe7-42f9-89f1-885859c2dffc","block_type":"box","text":"As defined by the International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023..","page_number":239,"box":{"x":83,"y":679,"width":821,"height":11}},{"id":"6ed1ef57-920e-4b7b-8f37-b429b7d3a4e0","block_type":"box","text":"Several jurisdictions are basing their own transition plan disclosure frameworks on the IFRS S2 definition. We","page_number":239,"box":{"x":69,"y":694,"width":779,"height":11}},{"id":"2604f368-ea34-4cfb-9789-f15c839a0a7b","block_type":"box","text":"anticipate transition plan disclosure becoming mandatory in an increasing number of jurisdictions over the near term.","page_number":239,"box":{"x":69,"y":709,"width":836,"height":11}},{"id":"e32dbbce-02c2-4200-a989-d0c5b2d4d11d","block_type":"box","text":"28","page_number":239,"box":{"x":69,"y":727,"width":9,"height":4}},{"id":"4ac5c1d2-b24d-45f0-b57a-ee33521dfef7","block_type":"box","text":"As defined by the Science Based Targets initiative (SBTi). SBTi “is a corporate climate action organization that","page_number":239,"box":{"x":83,"y":726,"width":785,"height":12}},{"id":"d31ae891-ae19-4168-bedb-697936b557de","block_type":"box","text":"enables companies and financial institutions worldwide to play their part in combating the climate crisis. We develop","page_number":239,"box":{"x":69,"y":742,"width":831,"height":11}},{"id":"0f513734-b021-4e79-949c-2dcaf9e878c3","block_type":"box","text":"standards, tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in","page_number":239,"box":{"x":69,"y":757,"width":826,"height":11}},{"id":"764b3324-72aa-44a3-9c5b-e3fedbca2b04","block_type":"box","text":"line with what is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at latest.”","page_number":239,"box":{"x":70,"y":772,"width":795,"height":11}},{"id":"e691dd58-35b1-44b2-8769-e043f3504a9d","block_type":"box","text":"Source: Science Based Targets initiative, “About Us.” Websites accessed in December 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