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I-22","page_number":10,"box":{"x":545,"y":174,"width":364,"height":9}},{"id":"8104ea90-a63b-4a57-84dc-74cf86c3f14f","block_type":"box","text":"Computation of Offering Price Per Share . . . . . . . . . . . . . . . . . . . .","page_number":10,"box":{"x":69,"y":190,"width":446,"height":11}},{"id":"1f7107f9-7397-420b-a0f6-d62f60000edb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-22","page_number":10,"box":{"x":521,"y":190,"width":388,"height":9}},{"id":"a8f8f734-a182-4284-bdc6-c9533e0de1bd","block_type":"box","text":"Portfolio Transactions and Brokerage . .","page_number":10,"box":{"x":69,"y":206,"width":283,"height":12}},{"id":"3a673f33-0bf7-4e3d-aed5-1f6dde65ff3b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-22","page_number":10,"box":{"x":358,"y":207,"width":551,"height":8}},{"id":"f1c3b882-083c-453b-b003-034046db46d6","block_type":"box","text":"Additional Information. . . . . . . . . . . . . . . . . . .","page_number":10,"box":{"x":68,"y":223,"width":308,"height":9}},{"id":"6abff857-d2d6-4a74-9857-fa20390591ae","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-25","page_number":10,"box":{"x":382,"y":223,"width":527,"height":9}},{"id":"1610321a-cdab-40f5-9d2d-a0524cdb80d0","block_type":"box","text":"Financial Statements","page_number":10,"box":{"x":70,"y":239,"width":148,"height":9}},{"id":"7f7e88ed-7d87-4143-8ced-d23b365b49ae","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-27","page_number":10,"box":{"x":227,"y":239,"width":681,"height":9}},{"id":"eb499dd6-19a1-42f5-93f8-8d9ded4e0661","block_type":"box","text":"PART II","page_number":10,"box":{"x":69,"y":271,"width":52,"height":9}},{"id":"7c9d1836-921b-45d4-a631-1a1923acb789","block_type":"box","text":"Investment Risks and Considerations . . . . . . . .","page_number":10,"box":{"x":70,"y":287,"width":330,"height":9}},{"id":"2d7112c3-5bbe-4107-ab4a-2caac693b9ed","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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I","page_number":10,"box":{"x":195,"y":386,"width":676,"height":8}},{"id":"dd113aa0-2697-4cfb-9a09-ef4923783ddb","block_type":"box","text":"I-122","page_number":10,"box":{"x":874,"y":386,"width":35,"height":8}},{"id":"8e187018-b6e0-4095-82a1-e1ceaa3cd135","block_type":"box","text":"Portfolio Transactions and Brokerage . .","page_number":10,"box":{"x":69,"y":402,"width":283,"height":11}},{"id":"e290c13e-1216-4a90-bfe3-2a4e283a9a24","block_type":"box","text":".............................................................. 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A-1","page_number":10,"box":{"x":407,"y":484,"width":502,"height":9}},{"id":"cd42b0d4-f400-4d3a-8e73-1bb0d46b2cce","block_type":"box","text":"Appendix B — Proxy Voting Policies . . . . . .","page_number":10,"box":{"x":68,"y":500,"width":300,"height":11}},{"id":"146b6ae3-9b1e-47ef-a952-577e92352409","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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Unless otherwise","page_number":16,"box":{"x":102,"y":45,"width":767,"height":9}},{"id":"1b1ed8b4-1dbe-4731-9689-df6c79953dba","block_type":"box","text":"provided, all references below to the assets of the Fund are in terms of current market value.","page_number":16,"box":{"x":70,"y":60,"width":664,"height":11}},{"id":"bc396714-f673-4168-9f1d-e9015e02c26f","block_type":"box","text":"Under its fundamental investment restrictions, the Fund may not:","page_number":16,"box":{"x":102,"y":82,"width":463,"height":12}},{"id":"897cfb93-9d6d-485d-9894-2f609585e23c","block_type":"box","text":"(1) Make any investment inconsistent with the Fund’s classification as a diversified company under the","page_number":16,"box":{"x":134,"y":105,"width":734,"height":11}},{"id":"d0aef3ab-2409-489c-8d50-4ed6edfcc210","block_type":"box","text":"Investment Company Act.","page_number":16,"box":{"x":102,"y":120,"width":179,"height":11}},{"id":"bab177f8-314d-4dd4-b1d3-20766066a96c","block_type":"box","text":"(2) Invest more than 25% of its total assets, taken at market value at the time of each investment, in the","page_number":16,"box":{"x":134,"y":143,"width":750,"height":11}},{"id":"e82c3b0f-31e1-4773-b072-4517af956326","block_type":"box","text":"securities of issuers in any particular industry (excluding the U.S. Government and its agencies and","page_number":16,"box":{"x":102,"y":158,"width":709,"height":11}},{"id":"69a1cf24-dcae-4ee9-8c46-b2ff7c5e3035","block_type":"box","text":"instrumentalities).","page_number":16,"box":{"x":102,"y":173,"width":127,"height":11}},{"id":"943ce5c4-58a7-4f34-adac-a66e2bbe4899","block_type":"box","text":"(3) Make investments for the purpose of exercising control or management.","page_number":16,"box":{"x":134,"y":196,"width":538,"height":11}},{"id":"171b3f79-4431-4c46-b353-fef1f12da60b","block_type":"box","text":"(4) Purchase or sell real estate, except that, to the extent permitted by applicable law, the Fund may invest","page_number":16,"box":{"x":134,"y":219,"width":762,"height":11}},{"id":"f00ea8a0-1662-4849-bee5-f3ffe2608345","block_type":"box","text":"in securities directly or indirectly secured by real estate or interests therein or issued by companies that invest in","page_number":16,"box":{"x":102,"y":234,"width":806,"height":11}},{"id":"93e371dc-5f08-443a-b25d-875ad980503e","block_type":"box","text":"real estate or interests therein.","page_number":16,"box":{"x":102,"y":249,"width":221,"height":9}},{"id":"ccc51819-2958-4fb8-9c80-ae8e243aa134","block_type":"box","text":"(5) Make loans to other persons, except that the acquisition of bonds, debentures or other corporate debt","page_number":16,"box":{"x":134,"y":271,"width":756,"height":11}},{"id":"1d29878b-ac8a-4b88-a005-896f35135bf5","block_type":"box","text":"securities and investment in government obligations, commercial paper, pass-through instruments, certificates","page_number":16,"box":{"x":102,"y":286,"width":790,"height":12}},{"id":"0fc90b60-3647-4ac4-8884-d2c67f6675fd","block_type":"box","text":"of deposit, bankers’ acceptances, repurchase agreements or any similar instruments shall not be deemed to be","page_number":16,"box":{"x":102,"y":302,"width":800,"height":11}},{"id":"48168b02-0aeb-4268-8a77-09f2175199b8","block_type":"box","text":"the making of a loan, and except further that the Fund may lend its portfolio securities, provided that the lending","page_number":16,"box":{"x":101,"y":317,"width":805,"height":11}},{"id":"e63fe243-04f3-4149-a845-099b548f6e0b","block_type":"box","text":"of portfolio securities may be made only in accordance with applicable law and the guidelines set forth in its","page_number":16,"box":{"x":102,"y":332,"width":772,"height":11}},{"id":"be97510c-30bc-4c33-8bbf-63bc626af338","block_type":"box","text":"Prospectus and Statement of Additional Information, as they may be amended from time to time.","page_number":16,"box":{"x":102,"y":347,"width":690,"height":11}},{"id":"f084fff6-dfdf-4975-9744-6381a05662f5","block_type":"box","text":"(6) Issue senior securities to the extent such issuance would violate applicable law.","page_number":16,"box":{"x":134,"y":370,"width":595,"height":11}},{"id":"5fdba095-007a-474c-8a32-8a78a95913f2","block_type":"box","text":"(7) Borrow money, except that (i) the Fund may borrow from banks (as defined in the Investment Company","page_number":16,"box":{"x":134,"y":392,"width":756,"height":12}},{"id":"233dcdc8-2cdb-4cda-83bf-d31d45353815","block_type":"box","text":"Act) in amounts up to 33","page_number":16,"box":{"x":101,"y":408,"width":177,"height":10}},{"id":"1be4c302-7876-48f3-a969-323f05ffa760","block_type":"box","text":"1⁄","page_number":16,"box":{"x":280,"y":408,"width":5,"height":5}},{"id":"9476fce8-4cad-4a1c-a549-c91b79ef4af1","block_type":"box","text":"1⁄3","page_number":16,"box":{"x":283,"y":408,"width":8,"height":8}},{"id":"01922078-c58f-4545-b083-7780eca2c73e","block_type":"box","text":"⁄3","page_number":16,"box":{"x":289,"y":411,"width":6,"height":5}},{"id":"3f7ea618-ae2a-4f98-8d98-318a3f8fdb25","block_type":"box","text":"% of its total assets (including the amount borrowed), (ii) the Fund may, to the extent","page_number":16,"box":{"x":295,"y":407,"width":605,"height":12}},{"id":"572cf5ce-8cbc-4bb0-8f92-a397fe71a959","block_type":"box","text":"permitted by applicable law, borrow up to an additional 5% of its total assets for temporary purposes, (iii) the","page_number":16,"box":{"x":102,"y":423,"width":777,"height":11}},{"id":"4e7838b8-acbc-419d-adc5-dcc46b07e7be","block_type":"box","text":"Fund may obtain such short term credit as may be necessary for the clearance of purchases and sales of","page_number":16,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"5cdb6ffc-ed2e-4081-b1a3-175b2cfff369","block_type":"box","text":"portfolio securities and (iv) the Fund may purchase securities on margin to the extent permitted by applicable","page_number":16,"box":{"x":102,"y":453,"width":778,"height":11}},{"id":"7244caca-ca0b-4ba9-8e16-4063f66b991e","block_type":"box","text":"law. The Fund may not pledge its assets other than to secure such borrowings or, to the extent permitted by the","page_number":16,"box":{"x":102,"y":468,"width":797,"height":11}},{"id":"03f59466-0394-4934-90dc-77e2ffcefea2","block_type":"box","text":"Fund’s investment policies as set forth in its Prospectus and Statement of Additional Information, as they may","page_number":16,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"31434b80-c6f6-4369-b219-5f88e4f5f806","block_type":"box","text":"be amended from time to time, in connection with hedging transactions, short sales, when issued and forward","page_number":16,"box":{"x":102,"y":498,"width":788,"height":11}},{"id":"722ba3ce-2284-49fb-80d0-d0e2610ce71f","block_type":"box","text":"commitment transactions and similar investment strategies.","page_number":16,"box":{"x":101,"y":514,"width":428,"height":11}},{"id":"61fd504d-8841-48b4-9ffa-ae315bfb47b6","block_type":"box","text":"(8) Underwrite securities of other issuers, except insofar as the Fund technically may be deemed an","page_number":16,"box":{"x":134,"y":536,"width":712,"height":11}},{"id":"a7e42bc4-e537-4ead-ab7d-c4f4cdd66594","block_type":"box","text":"underwriter under the Securities Act of 1933, as amended (the “Securities Act”), in selling portfolio securities.","page_number":16,"box":{"x":102,"y":551,"width":788,"height":11}},{"id":"ee1d26b6-3090-46d8-852b-f220b045ba9f","block_type":"box","text":"(9) Purchase or sell commodities or contracts on commodities, except to the extent that the Fund may do so","page_number":16,"box":{"x":134,"y":574,"width":773,"height":11}},{"id":"d4f99e5e-25d5-49a7-b313-0c428e421ab3","block_type":"box","text":"in accordance with applicable law and the Fund’s Prospectus and Statement of Additional Information, as they","page_number":16,"box":{"x":102,"y":589,"width":786,"height":11}},{"id":"c18a4f31-0043-4a9b-88bf-b2179db601d8","block_type":"box","text":"may be amended from time to time, and without registering as a commodity pool operator under the Commodity","page_number":16,"box":{"x":102,"y":604,"width":797,"height":11}},{"id":"0593ac34-5567-4cc8-baed-4937a4e5da29","block_type":"box","text":"Exchange Act.","page_number":16,"box":{"x":102,"y":619,"width":97,"height":11}},{"id":"472c491f-d4e2-4e67-8585-f3b2e65331e8","block_type":"box","text":"Under its non-fundamental investment restrictions, the Fund may not:","page_number":16,"box":{"x":102,"y":642,"width":493,"height":11}},{"id":"1025d87e-20f0-44ae-bad1-2c620805ac5b","block_type":"box","text":"(a) Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":16,"box":{"x":134,"y":664,"width":747,"height":12}},{"id":"4b628623-4427-4c4d-975e-2936b4fdf6a0","block_type":"box","text":"Company Act. As a matter of policy, however, the Fund will not purchase shares of any registered open-end","page_number":16,"box":{"x":102,"y":680,"width":759,"height":11}},{"id":"77bd11c1-206c-4bce-a777-cf4d82c78460","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of","page_number":16,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"cab148be-1254-4b8b-9773-b2e290fcacc1","block_type":"box","text":"funds” provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are","page_number":16,"box":{"x":101,"y":710,"width":761,"height":11}},{"id":"020e2655-6986-4541-8aa8-0b337eee6e6f","block_type":"box","text":"purchased by another investment company investor in reliance on the provisions of subparagraph (G) of Section","page_number":16,"box":{"x":102,"y":725,"width":795,"height":11}},{"id":"2f66f147-d0a9-40a4-ac97-b5ef1a57df36","block_type":"box","text":"12(d)(1).","page_number":16,"box":{"x":102,"y":740,"width":60,"height":11}},{"id":"4b449ed3-4e88-407d-ae84-e6c07ddc3986","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":16,"box":{"x":134,"y":763,"width":770,"height":11}},{"id":"2974ee39-9802-4824-95b6-a9e2b7fdde27","block_type":"box","text":"Prospectus and Statement of Additional Information, as amended from time to time, and applicable law.","page_number":16,"box":{"x":102,"y":778,"width":740,"height":11}},{"id":"a5c89efe-8d6a-4409-a5c2-605c9b501afb","block_type":"box","text":"For purposes of investment restriction (2), with respect to the Fund’s industry classifications, the Fund currently","page_number":16,"box":{"x":102,"y":801,"width":798,"height":11}},{"id":"fe9a0f14-9a4f-4e16-a55b-0f7146200223","block_type":"box","text":"utilizes any one or more of the industry sub-classifications used by one or more widely recognized market indexes or","page_number":16,"box":{"x":69,"y":816,"width":829,"height":11}},{"id":"738d27a8-c5d0-400a-9c66-2429c38f6c93","block_type":"box","text":"rating group indexes, and/or as defined by Fund management. The policy also will be interpreted to give broad","page_number":16,"box":{"x":69,"y":831,"width":784,"height":11}},{"id":"4fe7cdad-2df4-4789-a8f7-155a757f92d9","block_type":"box","text":"authority to the Fund as to how to classify issuers within or among industries.","page_number":16,"box":{"x":69,"y":846,"width":552,"height":11}},{"id":"8e5da4d9-ff36-4ad2-a17a-aa5d64639667","block_type":"box","text":"Except with respect to restriction (7) above or with respect to policies adopted pursuant to Rule 35d-1 under the","page_number":16,"box":{"x":102,"y":869,"width":799,"height":11}},{"id":"b41ed064-b427-46b7-bf72-9bcda2eca3fc","block_type":"box","text":"Investment Company Act, all limitations under the Fund’s fundamental or non-fundamental investment restrictions","page_number":16,"box":{"x":70,"y":884,"width":810,"height":11}},{"id":"5c5f0977-80c8-432f-a04f-c50385301f52","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":16,"box":{"x":69,"y":899,"width":824,"height":11}},{"id":"bc2f1301-6b0e-46e2-b298-22ce74fe15ef","block_type":"box","text":"I-6","page_number":16,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"0e2697a0-bc4e-47a7-bacf-08ccfee5e5f6","block_type":"box","text":"NM1026U-5993100-16/236","page_number":16,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"40ac6702-07e2-4e1f-859e-c7c4ca1e2db1","block_type":"box","text":"in certain securities or other instruments resulting from market fluctuations or other changes in the Fund’s total","page_number":17,"box":{"x":70,"y":45,"width":797,"height":11}},{"id":"4bba2fb2-11ad-4b42-af09-d4b1bf40a4b0","block_type":"box","text":"assets will not require the Fund to dispose of any investment until BlackRock determines that it is practicable to sell","page_number":17,"box":{"x":69,"y":60,"width":830,"height":11}},{"id":"440f35e7-69aa-4ba2-9083-4305ed5e9f81","block_type":"box","text":"or close out the investment without undue market or tax consequences.","page_number":17,"box":{"x":69,"y":75,"width":511,"height":11}},{"id":"e27d994c-aac6-4602-bffb-a6325917013f","block_type":"box","text":"The Fund has also adopted an operating policy to structure the Fund’s portfolio, in the aggregate, in a manner","page_number":17,"box":{"x":101,"y":98,"width":786,"height":11}},{"id":"056a0ff5-5feb-4e77-ac32-9433b1b88b07","block_type":"box","text":"designed to produce potential long-term capital appreciation as well as a net portfolio yield in excess of the average","page_number":17,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"ee1e2dcf-6b6b-4a91-9db4-49a8b14003bc","block_type":"box","text":"of mutual funds invested primarily in U.S. equities. This non-fundamental policy may be changed by the Board of","page_number":17,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"8345cc6b-d969-431f-beb5-59451b855cd6","block_type":"box","text":"Trustees without a vote of the Fund’s shareholders.","page_number":17,"box":{"x":68,"y":143,"width":367,"height":9}},{"id":"797371b5-ce00-4d9e-8df7-4fa68d09b388","block_type":"box","text":"III. Information on Trustees and Officers","page_number":17,"box":{"x":69,"y":173,"width":290,"height":9}},{"id":"d8b983c4-e63a-46d1-9591-930d868e5c71","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Trustee”), thirteen of whom are not “interested persons” of","page_number":17,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"7dd5adfd-dc3b-4b8b-8cb2-c6a101cd24dc","block_type":"box","text":"the Fund as defined in the Investment Company Act (the “Independent Trustees”). The registered investment","page_number":17,"box":{"x":68,"y":211,"width":777,"height":11}},{"id":"bb872ccd-2446-41d0-a54d-bc96bdf73321","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":17,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"084a858b-58e5-4026-b9f4-9aea6dbcdc6b","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":17,"box":{"x":70,"y":241,"width":793,"height":11}},{"id":"bc86f0a5-c9c9-4282-9b98-b5de2d2fcfbc","block_type":"box","text":"Complex”). The Fund is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":17,"box":{"x":69,"y":256,"width":820,"height":11}},{"id":"f57dd49e-3c0f-4a21-9c16-a16d14f6a9e4","block_type":"box","text":"The Trustees also oversee as board members the operations of the other open-end registered investment companies","page_number":17,"box":{"x":68,"y":271,"width":837,"height":12}},{"id":"d92b4b0b-30aa-4966-8c33-d667007588fd","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":17,"box":{"x":70,"y":287,"width":335,"height":10}},{"id":"f9783ed8-e139-4583-825d-883e95059aa9","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":17,"box":{"x":101,"y":309,"width":764,"height":11}},{"id":"654b0462-df2e-435c-83df-e70b8db042fb","block_type":"box","text":"Trustee, and the Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The Board has","page_number":17,"box":{"x":68,"y":324,"width":813,"height":11}},{"id":"f50ebf9b-7607-44a7-886d-1c7c25aa946e","block_type":"box","text":"five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee,","page_number":17,"box":{"x":68,"y":339,"width":832,"height":12}},{"id":"729e7664-7d73-4eb2-8916-a9986d20ad1b","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":17,"box":{"x":69,"y":355,"width":784,"height":11}},{"id":"0c8d95e3-3537-4859-99f4-536901282ceb","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":17,"box":{"x":70,"y":370,"width":793,"height":11}},{"id":"16bd29b4-b102-4d0d-912e-4ed0af229b1c","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee performs a similar role with respect to the","page_number":17,"box":{"x":68,"y":385,"width":789,"height":11}},{"id":"b28297ed-947e-45b4-bb41-55acc10b2de7","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":17,"box":{"x":69,"y":400,"width":810,"height":11}},{"id":"f576ee95-e2e8-42f4-9bd3-e5bb0c276cd8","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":17,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"a305cd09-cf8a-49b9-8ad0-dbf1e1297c97","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":17,"box":{"x":70,"y":430,"width":794,"height":11}},{"id":"b5758b29-58b2-4d0d-bf7f-a345f7ae47fe","block_type":"box","text":"regular meetings five times a year, and may hold special meetings if required before its next regular meeting. Each","page_number":17,"box":{"x":69,"y":445,"width":816,"height":12}},{"id":"9bd9d789-9423-4bf9-b0a6-3270c81bbf67","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and reports","page_number":17,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"bad8b624-f49f-400b-8cb7-2c26376b6db0","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":17,"box":{"x":70,"y":475,"width":811,"height":12}},{"id":"886c2d86-b54b-4651-9a50-2411d61bf120","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":17,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"7aaf500b-0562-4601-a2a9-be739d0b4254","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":17,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"17cd4b42-cc5d-461b-9aba-ab30b27aeadb","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":17,"box":{"x":69,"y":521,"width":441,"height":11}},{"id":"62658e04-82ef-445e-b903-3247308b023d","block_type":"box","text":"The Board has engaged the Manager to manage the Fund on a day-to-day basis. The Board is responsible for","page_number":17,"box":{"x":101,"y":543,"width":777,"height":12}},{"id":"5a530ed6-0fb6-454b-83f5-f1cf00ce143b","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":17,"box":{"x":69,"y":559,"width":832,"height":11}},{"id":"8bf20eef-281a-45b1-97c5-877a99e8918f","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":17,"box":{"x":68,"y":574,"width":819,"height":11}},{"id":"aa864646-4e32-4c98-8ec1-ebe34c4c288e","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s performance, operations","page_number":17,"box":{"x":70,"y":589,"width":812,"height":11}},{"id":"e3fdffd8-aef2-4336-a2bb-d34dcb92f428","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":17,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"706e4fa1-8423-4e24-ae2d-e1b348c01b83","block_type":"box","text":"the operations of the Fund.","page_number":17,"box":{"x":68,"y":619,"width":192,"height":11}},{"id":"f5f1fe58-cc3d-49f7-9627-9f3d83ebf805","block_type":"box","text":"Day-to-day risk management with respect to the Fund is the responsibility of the Manager or of sub-advisers or","page_number":17,"box":{"x":102,"y":642,"width":785,"height":11}},{"id":"0ee39a7e-a453-4106-8f7a-057c2d6d0de3","block_type":"box","text":"other service providers (depending on the nature of the risk), subject to the supervision of the Manager. The Fund is","page_number":17,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"e9b301b4-eb6a-4a17-b1b5-07944f6afeae","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":17,"box":{"x":69,"y":672,"width":832,"height":11}},{"id":"24cab27c-d31f-4cb9-907c-dc67f60f0374","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":17,"box":{"x":68,"y":687,"width":820,"height":11}},{"id":"a2e30a3d-7e1b-40db-a280-a741427eef8d","block_type":"box","text":"providers, as applicable, it is not possible to eliminate all of the risks applicable to the Fund. Risk oversight forms","page_number":17,"box":{"x":70,"y":702,"width":811,"height":12}},{"id":"ca21e4d5-3911-41b2-ac77-e6bc5b430916","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":17,"box":{"x":70,"y":717,"width":767,"height":12}},{"id":"47debc91-4c1a-426b-88ea-2d21391633d3","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews reports from, among others, management, the","page_number":17,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"24971232-5626-4638-9f0b-eeef6b333a5d","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":17,"box":{"x":70,"y":748,"width":803,"height":11}},{"id":"88066622-e72f-4ef6-b10d-9a8008bc1524","block_type":"box","text":"adviser or its affiliates, as appropriate, regarding risks faced by the Fund and management’s or the service provider’s","page_number":17,"box":{"x":69,"y":763,"width":840,"height":11}},{"id":"a3680b57-bce4-4008-bbd4-86a4b0820bcf","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees,","page_number":17,"box":{"x":69,"y":778,"width":812,"height":11}},{"id":"68fda03c-0a8b-44d8-969f-e57e21b2bd84","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":17,"box":{"x":69,"y":793,"width":817,"height":11}},{"id":"29ed1858-8eda-47bd-be6c-46c2502cea1e","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":17,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"e41279e9-b1c2-4e67-a469-14324a9dc012","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":17,"box":{"x":68,"y":823,"width":840,"height":12}},{"id":"6f192316-9500-40e5-bd29-98eca87a687f","block_type":"box","text":"service providers. The Independent Trustees have engaged independent legal counsel to assist them in performing","page_number":17,"box":{"x":69,"y":838,"width":822,"height":12}},{"id":"cec8432c-ad13-4878-be81-98288d2bb518","block_type":"box","text":"their oversight responsibilities.","page_number":17,"box":{"x":68,"y":854,"width":218,"height":11}},{"id":"f8dc89a9-2b26-4a62-928c-b146332d6c9e","block_type":"box","text":"Audit Committee.","page_number":17,"box":{"x":101,"y":876,"width":122,"height":9}},{"id":"d9bb9bdb-04cd-42e3-a245-449163a4c6e0","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":17,"box":{"x":229,"y":876,"width":673,"height":11}},{"id":"a0e0e38d-a11c-43f9-b505-d8b2192f857d","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Trustees.","page_number":17,"box":{"x":68,"y":891,"width":831,"height":11}},{"id":"68fbc49e-1606-452e-8e45-8d92f8d81eca","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":17,"box":{"x":68,"y":906,"width":820,"height":11}},{"id":"306dcfac-181b-4a48-86a0-8b1199e3f2ca","block_type":"box","text":"I-7","page_number":17,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"54ef545c-aaf8-42a2-8c2f-ac59c5ae3f8b","block_type":"box","text":"NM1026U-5993100-17/236","page_number":17,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5b52be22-ab69-4681-90fd-bb3c4a2ca829","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":18,"box":{"x":68,"y":45,"width":823,"height":11}},{"id":"b6d18019-59cf-4fb4-9b43-ba9aa42b67c9","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":18,"box":{"x":69,"y":60,"width":830,"height":11}},{"id":"4fd72faf-8647-419f-a6a8-134bb98bd644","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":18,"box":{"x":70,"y":75,"width":825,"height":11}},{"id":"78cb5657-90ba-480d-b8de-f9b5a6c652b7","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":18,"box":{"x":70,"y":90,"width":807,"height":11}},{"id":"4bacc777-0f82-4c99-a584-c9739658ef44","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":18,"box":{"x":68,"y":105,"width":781,"height":11}},{"id":"88c490bb-c210-4d2c-95b4-38efeab58469","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":18,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"b08bfffc-afe9-46da-abeb-eec312110a38","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":18,"box":{"x":69,"y":135,"width":838,"height":12}},{"id":"5983d464-7e6f-41a5-9d6a-a7c02f2465db","block_type":"box","text":"and certain service providers; (5) oversee the performance of the Fund’s Independent Registered Public Accounting","page_number":18,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"bfc2be1c-eea0-4431-bb62-f2237eec86f5","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":18,"box":{"x":70,"y":166,"width":809,"height":11}},{"id":"8ac3db30-617a-4a33-a589-59d352f567dc","block_type":"box","text":"performance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":18,"box":{"x":70,"y":181,"width":815,"height":11}},{"id":"495214ec-4715-443e-a45b-e6ff2d5a61e6","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial reporting and controls;","page_number":18,"box":{"x":69,"y":196,"width":774,"height":11}},{"id":"f7221701-3510-4e5c-bc9f-87a4d8df147c","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":18,"box":{"x":69,"y":211,"width":815,"height":11}},{"id":"cf896be0-34ed-43cc-8cb1-dda83d25feec","block_type":"box","text":"regarding financial reporting; and (9) undertake such other duties and responsibilities as may from time to time be","page_number":18,"box":{"x":69,"y":226,"width":819,"height":11}},{"id":"5fc29310-98ce-49e1-a057-c70b3f8878c5","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":18,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"eb4132d5-3cb1-4e3f-bdfa-42948ea1c413","block_type":"box","text":"During the fiscal year ended April 30, 2026, the Audit Committee met four times.","page_number":18,"box":{"x":70,"y":256,"width":576,"height":12}},{"id":"0344ef4a-91bd-4a22-8541-7a5ec6d21232","block_type":"box","text":"Governance and Nominating Committee.","page_number":18,"box":{"x":102,"y":279,"width":286,"height":11}},{"id":"3ad9c45f-6756-4efc-a0fc-c50873b3a13d","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":18,"box":{"x":394,"y":279,"width":464,"height":11}},{"id":"d9a99109-8aca-4494-82da-b4519aa43380","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton,","page_number":18,"box":{"x":70,"y":294,"width":838,"height":11}},{"id":"19271165-0842-4fae-94ca-7209d1494478","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Trustees. The principal responsibilities of the","page_number":18,"box":{"x":70,"y":309,"width":784,"height":11}},{"id":"ee164145-7d2f-48c1-a8f9-55765f27bdc2","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Trustees of the Fund and","page_number":18,"box":{"x":69,"y":324,"width":801,"height":11}},{"id":"2ca96b73-7927-4931-b2c4-0211ef14dafd","block_type":"box","text":"recommend Independent Trustee nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":18,"box":{"x":69,"y":339,"width":829,"height":12}},{"id":"7a55e079-40c1-4888-8c3d-6f33c6728938","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":18,"box":{"x":70,"y":355,"width":828,"height":11}},{"id":"177de14f-45e2-4d36-8570-09929b17d9fd","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":18,"box":{"x":70,"y":370,"width":809,"height":11}},{"id":"cb24fbfe-cf18-4fbf-8a5d-6082d484e7a6","block_type":"box","text":"and make recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters","page_number":18,"box":{"x":69,"y":385,"width":838,"height":11}},{"id":"0cdc8bb1-5429-4ba1-b748-e625fb5375e6","block_type":"box","text":"and develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to","page_number":18,"box":{"x":69,"y":400,"width":800,"height":11}},{"id":"b11f478f-91ac-4181-9374-9dabf1adb40b","block_type":"box","text":"Board policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of","page_number":18,"box":{"x":70,"y":415,"width":813,"height":11}},{"id":"3834b3fc-2860-4e39-90d0-61d3c958a777","block_type":"box","text":"ethics as they relate to Independent Trustees; and (7) undertake such other duties and responsibilities as may from","page_number":18,"box":{"x":69,"y":430,"width":829,"height":11}},{"id":"f0c0843d-ef02-4210-bcd1-c4511c838200","block_type":"box","text":"time to time be delegated by the Board to the Governance Committee. The Governance Committee may consider","page_number":18,"box":{"x":68,"y":445,"width":804,"height":12}},{"id":"92842578-58a5-4883-b9cb-38b8247706b8","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":18,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"58dfacf0-713e-4bbb-8743-1191d66bd5fd","block_type":"box","text":"Restated Bylaws (“Bylaws”), shareholders must follow certain procedures to nominate a person for election as a","page_number":18,"box":{"x":70,"y":475,"width":802,"height":12}},{"id":"acdc978a-2f28-44a8-bd9e-264c414c6655","block_type":"box","text":"Trustee at a shareholder meeting at which Trustees are to be elected. Under these advance notice procedures,","page_number":18,"box":{"x":68,"y":491,"width":792,"height":11}},{"id":"0101eadf-3fb6-445c-bd49-4b3673c4e805","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":18,"box":{"x":69,"y":506,"width":797,"height":11}},{"id":"973b1bb2-ffd7-4f52-ba2a-47ed68f70e40","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":18,"box":{"x":70,"y":521,"width":831,"height":11}},{"id":"6453f36f-7545-4db7-af80-1bb62038bceb","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":18,"box":{"x":69,"y":536,"width":812,"height":11}},{"id":"0085de3b-1f5b-4343-9e11-8ec9c598d4bb","block_type":"box","text":"first occurs. The Fund’s Bylaws provide that notice of a proposed nomination must include certain information about","page_number":18,"box":{"x":68,"y":551,"width":830,"height":11}},{"id":"bfc4e611-cdd7-48c0-95d4-c617e5c26ec1","block_type":"box","text":"the shareholder and the nominee, as well as certain other information, including a written consent of the proposed","page_number":18,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"c20632db-db34-47ae-aa0b-bd6d68e469f0","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":18,"box":{"x":69,"y":581,"width":799,"height":11}},{"id":"0fb75604-417b-4254-a3ad-535ea1d0111c","block_type":"box","text":"written charter for the Governance Committee. During the fiscal year ended April 30, 2026, the Governance","page_number":18,"box":{"x":68,"y":596,"width":767,"height":12}},{"id":"acb80799-cd8f-4991-9cf8-b308d6938ace","block_type":"box","text":"Committee met eleven times.","page_number":18,"box":{"x":69,"y":612,"width":208,"height":9}},{"id":"42321adb-9bf7-4ef4-93e8-d8ee2366847b","block_type":"box","text":"Compliance Committee.","page_number":18,"box":{"x":102,"y":634,"width":168,"height":11}},{"id":"c63d95c0-cf68-4a52-bfb4-1d2bede044cb","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":18,"box":{"x":276,"y":634,"width":629,"height":11}},{"id":"ad300086-d019-47e0-9756-2ee9be13e197","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":18,"box":{"x":68,"y":649,"width":828,"height":12}},{"id":"59a9af08-6c2b-4ffe-b8f4-b259f436687b","block_type":"box","text":"whom are Independent Trustees. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":18,"box":{"x":68,"y":664,"width":771,"height":12}},{"id":"d7ad3ad3-7700-4fcb-bfd2-ff2210cd1422","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Fund, the fund-related activities of","page_number":18,"box":{"x":69,"y":680,"width":834,"height":11}},{"id":"7ba7f06e-3ece-4983-9080-f23fd097ab10","block_type":"box","text":"BlackRock and any sub-adviser and the Fund’s third-party service providers. The Compliance Committee’s","page_number":18,"box":{"x":70,"y":695,"width":753,"height":11}},{"id":"ebbb3682-cf3a-4ccf-b44f-cd861640a92d","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Fund and its","page_number":18,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"5700aac3-5ae5-42fb-a246-c7710ef5ff7e","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":18,"box":{"x":69,"y":725,"width":815,"height":11}},{"id":"0a9b2bac-3ba4-4aaf-9f67-5050cce8c0bf","block_type":"box","text":"and, where appropriate, recommend policies concerning the Fund’s compliance with applicable law; (3) review","page_number":18,"box":{"x":69,"y":740,"width":784,"height":11}},{"id":"2653b224-1450-492a-a403-9120bb31d441","block_type":"box","text":"reports from, oversee the annual performance review of, and make certain recommendations and determinations","page_number":18,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"8b63969c-5218-4927-b59c-981732c780d1","block_type":"box","text":"regarding the Fund’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":18,"box":{"x":69,"y":770,"width":811,"height":12}},{"id":"3fd4a7bf-b82a-4645-b717-d6256885d109","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":18,"box":{"x":69,"y":785,"width":812,"height":12}},{"id":"759da836-057d-49e3-8de1-ec4026f749bf","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":18,"box":{"x":69,"y":801,"width":825,"height":11}},{"id":"05a9c72e-abf8-43ac-b6ff-6d102bf87622","block_type":"box","text":"Compliance Committee. The Board has adopted a written charter for the Compliance Committee. During the fiscal","page_number":18,"box":{"x":69,"y":816,"width":811,"height":11}},{"id":"d4ed499f-47d2-4dac-a056-55f48133df9a","block_type":"box","text":"year ended April 30, 2026, the Compliance Committee met four times.","page_number":18,"box":{"x":68,"y":831,"width":504,"height":11}},{"id":"547547c4-3df3-422b-ae9e-4e376723d896","block_type":"box","text":"Per formance Oversight Committee.","page_number":18,"box":{"x":102,"y":853,"width":248,"height":12}},{"id":"035f2041-f77d-420e-b938-dc02c6a62a26","block_type":"box","text":"The members of the Performance Oversight Committee (the “Performance","page_number":18,"box":{"x":356,"y":853,"width":531,"height":12}},{"id":"d747e4ee-b8d9-4e87-88b4-7c8d5668a293","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton, Neil A.","page_number":18,"box":{"x":69,"y":869,"width":829,"height":11}},{"id":"8cb2009f-c81d-4308-a0f3-1e2b5ab7d8a7","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Trustees. The Performance Oversight Committee’s purpose is","page_number":18,"box":{"x":69,"y":884,"width":830,"height":11}},{"id":"8aab6b29-2e8b-4a47-afef-78878c48575b","block_type":"box","text":"I-8","page_number":18,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"47f027bd-595b-4ac3-83c4-8199cf7223fc","block_type":"box","text":"NM1026U-5993100-18/236","page_number":18,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e7c3afc2-4c72-4f88-a1e1-ffc92b03d321","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":19,"box":{"x":68,"y":45,"width":832,"height":11}},{"id":"36bdfcc3-8320-4acd-8432-1a91b2d22d58","block_type":"box","text":"upon performance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":19,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"bdd13bac-cf95-40df-b031-6eba88b72b1a","block_type":"box","text":"agreements. The Performance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":19,"box":{"x":69,"y":75,"width":782,"height":11}},{"id":"623c0992-45ab-457d-855a-47daa6145f4c","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":19,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"8eeef58f-a51b-43bc-b562-cfffdaaafdc9","block_type":"box","text":"and practices; (2) review information on the Fund’s investment performance; (3) review information on appropriate","page_number":19,"box":{"x":69,"y":105,"width":816,"height":11}},{"id":"68662e14-3656-47a9-8cb8-1d69369db429","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":19,"box":{"x":69,"y":120,"width":803,"height":11}},{"id":"d96c7c27-79d0-48c4-9c56-a661856ba4bc","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":19,"box":{"x":69,"y":135,"width":827,"height":12}},{"id":"51ba32da-a268-4fdd-b211-307afbeef7c7","block_type":"box","text":"the Performance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":19,"box":{"x":68,"y":150,"width":811,"height":12}},{"id":"8325f93a-8a6f-4952-b25c-5cf290b45c60","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":19,"box":{"x":69,"y":166,"width":757,"height":11}},{"id":"33c707ef-cda9-4834-a739-17564e29d785","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":19,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"dbf29782-5b9f-4c19-83a9-21de155150d9","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) undertake such other","page_number":19,"box":{"x":68,"y":196,"width":800,"height":11}},{"id":"b1128bb3-718b-4aea-8303-bab922ef103e","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Performance Oversight","page_number":19,"box":{"x":69,"y":211,"width":780,"height":11}},{"id":"4e543137-6d50-441d-b1b2-390d9ec810f1","block_type":"box","text":"Committee. The Board has adopted a written charter for the Performance Oversight Committee. During the fiscal year","page_number":19,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"43e8b089-2647-42a7-b325-55d0dfd3f5cd","block_type":"box","text":"ended April 30, 2026, the Performance Oversight Committee met five times.","page_number":19,"box":{"x":69,"y":241,"width":546,"height":11}},{"id":"c011662a-da32-4e7c-93cb-6f80fac17cae","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":19,"box":{"x":101,"y":264,"width":186,"height":11}},{"id":"03f817d7-6acf-439c-8314-ac97ab098635","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":19,"box":{"x":293,"y":264,"width":598,"height":11}},{"id":"eb72c697-f981-4afe-9786-bfb122ff1add","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":19,"box":{"x":70,"y":279,"width":817,"height":11}},{"id":"08f50648-0b4b-43c3-9b7f-c59309f1a01b","block_type":"box","text":"serves as an interested Trustee. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":19,"box":{"x":69,"y":294,"width":795,"height":11}},{"id":"325426ab-f12c-43a5-9953-478354a069d6","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":19,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"1a01afcb-a260-433e-8604-f5202fd9ef3c","block_type":"box","text":"meetings of the Board; and (3) exercise such other authority as may from time to time be delegated to the Ad Hoc","page_number":19,"box":{"x":69,"y":324,"width":813,"height":12}},{"id":"43c36319-0cb8-4604-94a0-331c05a7b8c8","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":19,"box":{"x":68,"y":339,"width":816,"height":12}},{"id":"63bcd4d8-39ac-4bc3-87d8-5c8fbeb5b0d1","block_type":"box","text":"the fiscal year ended April 30, 2026, the Ad Hoc Topics Committee did not meet.","page_number":19,"box":{"x":68,"y":355,"width":577,"height":11}},{"id":"1971c2a1-82f4-45ac-b666-538cd7131dfa","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":19,"box":{"x":101,"y":377,"width":771,"height":11}},{"id":"3174fc90-8a0a-4936-a3ac-f00a4172e70e","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":19,"box":{"x":69,"y":392,"width":827,"height":12}},{"id":"ac03b0e5-96e8-4f6b-baf5-64f67129821c","block_type":"box","text":"of Policy”). The Board believes that each Independent Trustee satisfied, at the time he or she was initially elected or","page_number":19,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"69189e94-1def-47fa-b385-6b31ff6f3003","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Furthermore,","page_number":19,"box":{"x":69,"y":423,"width":825,"height":11}},{"id":"57449d14-b11e-47ff-b6ad-4f7ff3521660","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":19,"box":{"x":70,"y":438,"width":807,"height":11}},{"id":"4bcbcd58-36df-4092-8a4e-e8822163c935","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":19,"box":{"x":70,"y":453,"width":787,"height":11}},{"id":"28810d1f-9271-4765-ac55-dd0854fade99","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":19,"box":{"x":69,"y":468,"width":805,"height":11}},{"id":"ba8bc932-adaf-488f-b256-4161dcff2cb1","block_type":"box","text":"which allow the Board to operate effectively in governing the Fund and protecting the interests of shareholders.","page_number":19,"box":{"x":68,"y":483,"width":792,"height":11}},{"id":"f8895426-1abc-46fc-a950-2328e53b5687","block_type":"box","text":"Among the attributes common to all Independent Trustees are their ability to review critically, evaluate, question and","page_number":19,"box":{"x":68,"y":498,"width":829,"height":11}},{"id":"0e90f187-be1d-4a37-b31d-56d46ae655d0","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":19,"box":{"x":69,"y":513,"width":823,"height":11}},{"id":"61f4fb60-9df4-4143-a70d-7631ed4e2257","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":19,"box":{"x":69,"y":528,"width":771,"height":12}},{"id":"426aa5ed-42ec-46c2-974e-54b4960d0c54","block_type":"box","text":"business judgment in the performance of their duties as Trustees.","page_number":19,"box":{"x":69,"y":543,"width":473,"height":12}},{"id":"516b6abc-4432-4009-9b04-355502a3fa1e","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":19,"box":{"x":102,"y":566,"width":792,"height":11}},{"id":"cdfd1def-9eae-4dc4-a9b1-4932a4ea495d","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":19,"box":{"x":69,"y":581,"width":807,"height":12}},{"id":"d79539dd-26d8-4b3f-bcbd-99ffd2fb6c56","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":19,"box":{"x":69,"y":596,"width":835,"height":12}},{"id":"171f3703-7492-4038-9f47-6489fcd21e0e","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":19,"box":{"x":70,"y":612,"width":759,"height":11}},{"id":"2083140f-65e8-4e78-b4d5-c31f368bd7c4","block_type":"box","text":"participation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":19,"box":{"x":70,"y":627,"width":685,"height":11}},{"id":"2a893a25-2127-4000-a5ba-79dfec39dd9f","block_type":"box","text":"ad hoc","page_number":19,"box":{"x":762,"y":627,"width":47,"height":9}},{"id":"ab78480e-e743-4fed-9b92-85d3608da58e","block_type":"box","text":"committees","page_number":19,"box":{"x":814,"y":627,"width":82,"height":9}},{"id":"55add558-17b5-470c-8243-bad630da8534","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":19,"box":{"x":68,"y":642,"width":395,"height":11}},{"id":"003ae71e-d69e-4cb3-8473-824aec232f2c","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":19,"box":{"x":101,"y":664,"width":751,"height":11}},{"id":"281e62db-66c0-45f8-a383-0ce9b32d7bd3","block_type":"box","text":"support the conclusion that each Trustee should serve on the Board.","page_number":19,"box":{"x":69,"y":680,"width":492,"height":11}},{"id":"fdd0fe66-38bf-4a1f-903b-4126c0966387","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":19,"box":{"x":68,"y":708,"width":409,"height":9}},{"id":"89126b7a-4584-4308-8f5f-bb12f00213b7","block_type":"box","text":"Independent Trustees","page_number":19,"box":{"x":70,"y":725,"width":154,"height":10}},{"id":"3ea4526b-8f83-4cd5-9a5d-5d4e16ed1876","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":19,"box":{"x":69,"y":739,"width":781,"height":12}},{"id":"c1712fc0-68bb-4f47-847d-0300b04053c7","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":19,"box":{"x":265,"y":755,"width":604,"height":11}},{"id":"b290beb5-36c1-4fad-a46f-bf629cb19b58","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":19,"box":{"x":265,"y":770,"width":623,"height":11}},{"id":"f3bcd47d-2dff-4207-9e63-faef4e090486","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":19,"box":{"x":265,"y":785,"width":637,"height":11}},{"id":"d478a417-2c7e-4cc4-85a7-12e92e08cd04","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":19,"box":{"x":265,"y":800,"width":631,"height":11}},{"id":"d1ff16f7-7dc5-4358-9f82-e6b496463877","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the North American","page_number":19,"box":{"x":264,"y":815,"width":626,"height":11}},{"id":"dc836d1f-48f3-4bba-9e21-127f86f839d7","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":19,"box":{"x":265,"y":830,"width":639,"height":11}},{"id":"ff4db9ac-088c-4028-a5cf-7a71ee7d789a","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":19,"box":{"x":264,"y":845,"width":637,"height":11}},{"id":"ec38ece3-fd8f-4c5e-9dbf-ec88b8bf788a","block_type":"box","text":"expertise across asset classes and strategies, and insight and perspective on the","page_number":19,"box":{"x":265,"y":861,"width":586,"height":11}},{"id":"a2f727f6-26fc-479a-8f35-8c5365955b8a","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":19,"box":{"x":265,"y":875,"width":640,"height":12}},{"id":"e549a99a-8dcc-4142-a212-b994bf6e9fc0","block_type":"box","text":"Committee and the Performance Oversight Committee.","page_number":19,"box":{"x":265,"y":891,"width":389,"height":11}},{"id":"487bf431-3df8-4e46-ab86-20c11b639dd4","block_type":"box","text":"I-9","page_number":19,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"f1aba63c-84a5-4a6b-a6e8-c13bec30b9b3","block_type":"box","text":"NM1026U-5993100-19/236","page_number":19,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a21d811a-951d-4f10-a068-c4ff60bfb18c","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":20,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"9905ed90-af72-4a5f-aa88-25adc77aa01e","block_type":"box","text":"Susan J. Carter Susan J. Carter has over 35 years of experience in investment management. She has","page_number":20,"box":{"x":69,"y":65,"width":806,"height":12}},{"id":"80d8d42e-060f-4118-8ddb-14a790ec07b6","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":20,"box":{"x":265,"y":81,"width":604,"height":11}},{"id":"60579806-4c2e-4f57-a1f7-df3eddd3dd80","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":20,"box":{"x":265,"y":96,"width":632,"height":11}},{"id":"f626f7cb-12df-458a-b83e-4db1849e050f","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":20,"box":{"x":265,"y":111,"width":562,"height":9}},{"id":"ee43881c-a653-4944-8aaa-4ca7af10b9dc","block_type":"box","text":"Ms. Carter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":20,"box":{"x":265,"y":126,"width":616,"height":10}},{"id":"d798c3fa-6fb9-41b4-a4b8-fa2737cb99e1","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":20,"box":{"x":264,"y":141,"width":591,"height":11}},{"id":"b9bc48b6-d45a-4d32-be5f-748206b9f0b3","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":20,"box":{"x":265,"y":156,"width":641,"height":11}},{"id":"4abc4ca6-3d0b-4ecd-bb9a-b6d2745c6202","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":20,"box":{"x":264,"y":171,"width":638,"height":12}},{"id":"db2e6994-c9a5-4a4a-8d82-33e6c4eeeda5","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":20,"box":{"x":265,"y":186,"width":584,"height":12}},{"id":"86660ca4-c241-4bc2-8b19-3c28403b7acc","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":20,"box":{"x":265,"y":201,"width":630,"height":12}},{"id":"631ab911-9ef0-4389-ae78-a7604547f003","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":20,"box":{"x":265,"y":217,"width":634,"height":11}},{"id":"6fbfee61-1ad5-4cdd-a01c-23539747a554","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":20,"box":{"x":265,"y":232,"width":599,"height":11}},{"id":"24cfe35c-ee6c-44d1-ae52-b9d85548c798","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":20,"box":{"x":265,"y":247,"width":407,"height":11}},{"id":"1fa15d1a-063d-49d0-b566-2b82d625ba20","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":20,"box":{"x":69,"y":269,"width":837,"height":12}},{"id":"445cb623-e9fc-476c-840b-7ea2060f7c61","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":20,"box":{"x":265,"y":285,"width":638,"height":11}},{"id":"a696fcbb-4885-4272-8e19-fcbe9c0d38ab","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":20,"box":{"x":265,"y":300,"width":642,"height":11}},{"id":"50fa750c-6a24-48a5-8486-7e46a7f403c5","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":20,"box":{"x":265,"y":314,"width":601,"height":12}},{"id":"450fe0a7-28e5-4795-a159-61fc21f3b268","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":20,"box":{"x":265,"y":330,"width":595,"height":11}},{"id":"baf8a9fb-8cc8-4670-b828-c41862c95b3b","block_type":"box","text":"perspective on the markets and the economy.","page_number":20,"box":{"x":265,"y":345,"width":323,"height":11}},{"id":"53d5143f-77b8-44f3-9e34-5e74e9167806","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":20,"box":{"x":70,"y":368,"width":798,"height":11}},{"id":"59636a44-9e0e-40ba-9b42-e11800600545","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":20,"box":{"x":265,"y":383,"width":631,"height":11}},{"id":"6e2c6000-ab97-4344-8c00-6a43f1de1d03","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":20,"box":{"x":265,"y":398,"width":633,"height":11}},{"id":"677cebac-d7b3-4d50-8170-decdfcd95ff3","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":20,"box":{"x":265,"y":413,"width":628,"height":11}},{"id":"330174eb-4e6a-47ae-bcc2-e40edd1dc741","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":20,"box":{"x":265,"y":428,"width":596,"height":12}},{"id":"fa677565-36c4-4e30-86cd-a2d968a6b833","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial expert, as such","page_number":20,"box":{"x":265,"y":443,"width":616,"height":12}},{"id":"e85098c3-4ab7-43a7-9edf-21c3647c4cde","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":20,"box":{"x":264,"y":458,"width":368,"height":11}},{"id":"b52b4943-feb0-4462-bdd6-6abac598efa8","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":20,"box":{"x":69,"y":481,"width":777,"height":11}},{"id":"762e6fcb-0296-4c0a-ade2-592a8fd08cb7","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":20,"box":{"x":265,"y":496,"width":613,"height":12}},{"id":"798d194b-12df-41fb-952f-0f584c9d8e93","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":20,"box":{"x":265,"y":511,"width":563,"height":12}},{"id":"2907a4b1-63f8-407e-bcca-3220eeb0c22d","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":20,"box":{"x":265,"y":527,"width":607,"height":11}},{"id":"7f573c92-9023-4d6c-b7f1-0d3f2aae2eda","block_type":"box","text":"partner at Deloitte and Arthur Andersen for approximately 17 years. These positions have","page_number":20,"box":{"x":265,"y":542,"width":638,"height":11}},{"id":"fe8b7a91-8573-4a84-a342-f18a4093cb96","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":20,"box":{"x":265,"y":557,"width":626,"height":11}},{"id":"2c944d2f-e8e6-447b-bef2-0c1bdb50082f","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":20,"box":{"x":265,"y":572,"width":563,"height":11}},{"id":"86e31798-940f-4df3-bd7a-6fcf278195bf","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Trustees prior to becoming an","page_number":20,"box":{"x":265,"y":587,"width":625,"height":11}},{"id":"86be74ae-fe4f-493e-ba3f-6b361f27bc4d","block_type":"box","text":"Independent Trustee.","page_number":20,"box":{"x":265,"y":602,"width":149,"height":11}},{"id":"3097b808-7504-4874-b7d8-140f30a19946","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":20,"box":{"x":70,"y":625,"width":806,"height":11}},{"id":"d08dd0b7-ad81-4653-9e49-63a4d1212669","block_type":"box","text":"global expertise gained through his 35 year career at KPMG, a global professional","page_number":20,"box":{"x":264,"y":640,"width":584,"height":11}},{"id":"72da20d5-391a-4896-8da4-7e458b157cf1","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":20,"box":{"x":265,"y":655,"width":622,"height":11}},{"id":"fe2be17c-8a36-48cd-bd12-e00431b49fd3","block_type":"box","text":"organizations. 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Mr. Keizer’s experience also includes service as an","page_number":20,"box":{"x":265,"y":700,"width":642,"height":12}},{"id":"3ef80264-9ba6-4e80-bbd8-d4305468e25f","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":20,"box":{"x":265,"y":716,"width":626,"height":11}},{"id":"42cca515-58ac-4ba8-9c25-15db039603d4","block_type":"box","text":"industries including professional services, property and casualty reinsurance, insurance,","page_number":20,"box":{"x":265,"y":731,"width":630,"height":11}},{"id":"9c4c2b0e-1c3c-4eb8-901b-347b0509d656","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":20,"box":{"x":265,"y":746,"width":602,"height":11}},{"id":"19e9ba6b-4312-4db2-9d0d-200d2863f9ef","block_type":"box","text":"technology. Mr. Keizer is a certified public accountant and also served on the board of the","page_number":20,"box":{"x":264,"y":761,"width":643,"height":11}},{"id":"a6cf2726-7342-46ac-8ed7-740e3170621f","block_type":"box","text":"American Institute of Certified Public Accountants. Mr. Keizer has been determined by the","page_number":20,"box":{"x":264,"y":776,"width":639,"height":11}},{"id":"9806974c-7429-4f16-8109-c694298d4f72","block_type":"box","text":"Audit Committee to be an audit committee financial expert, as such term is defined in the","page_number":20,"box":{"x":264,"y":791,"width":641,"height":11}},{"id":"11a3f020-aafc-41a6-bd54-9a8bedee9233","block_type":"box","text":"applicable Commission rules.","page_number":20,"box":{"x":265,"y":806,"width":208,"height":11}},{"id":"9d9b6dbe-dc98-4077-99a0-1d4edcb2177b","block_type":"box","text":"I-10","page_number":20,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"1f0eaa84-f487-4383-8f40-184c907603c9","block_type":"box","text":"NM1026U-5993100-20/236","page_number":20,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d3a5b62e-1016-417a-ae80-dc2202c0b1d3","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":21,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"bbb0c6fe-2778-4e08-8499-c44020f439b9","block_type":"box","text":"Cynthia A. 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The Board benefits from Ms. Montgomery’s more than 20","page_number":21,"box":{"x":265,"y":111,"width":641,"height":11}},{"id":"3125ae47-a36a-45b5-b6e6-8c13b0a842d7","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":21,"box":{"x":264,"y":126,"width":602,"height":11}},{"id":"09d2dfcc-547a-469a-846b-9a5d24d33b2d","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":21,"box":{"x":264,"y":141,"width":617,"height":11}},{"id":"11ddda29-08ab-4dbe-a840-f564f466a8ef","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":21,"box":{"x":265,"y":156,"width":629,"height":11}},{"id":"52bc8ad7-e172-4b83-bfad-41fc8d6cfa04","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":21,"box":{"x":264,"y":171,"width":628,"height":11}},{"id":"bf78eeee-56d8-4295-95dc-0c8469bbd21b","block_type":"box","text":"articles and books on these topics.","page_number":21,"box":{"x":265,"y":187,"width":251,"height":10}},{"id":"ee2e1ef3-a087-4ef6-8adc-187d9aae64e7","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":21,"box":{"x":70,"y":209,"width":764,"height":11}},{"id":"c879266b-e886-410a-945c-22fb2e552735","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":21,"box":{"x":265,"y":224,"width":642,"height":11}},{"id":"ab00e819-0cb0-4e9e-86ae-7902f69ab591","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a partner,","page_number":21,"box":{"x":264,"y":239,"width":593,"height":12}},{"id":"4e04e5d1-e170-42b2-8508-d2a76e48aa2e","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":21,"box":{"x":265,"y":254,"width":603,"height":12}},{"id":"4c6e8d81-9f20-4065-a064-4323801c9292","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":21,"box":{"x":265,"y":269,"width":629,"height":12}},{"id":"2034a59b-1677-432a-89f9-0345bccad3ba","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":21,"box":{"x":70,"y":292,"width":804,"height":11}},{"id":"dc2ad640-61f4-4d39-92d4-874c72378988","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":21,"box":{"x":265,"y":307,"width":552,"height":11}},{"id":"70c1c84a-18de-4109-a090-b5b8cce8efe3","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":21,"box":{"x":265,"y":322,"width":636,"height":12}},{"id":"a8a228ff-77bd-4d9d-b34a-99dd1b2c0164","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":21,"box":{"x":265,"y":338,"width":639,"height":11}},{"id":"47ab81bf-55f2-4d27-a65b-66c4b402ed96","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":21,"box":{"x":265,"y":353,"width":576,"height":11}},{"id":"5721fd9c-0df4-48ed-a49d-b7e8646d07f2","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":21,"box":{"x":265,"y":368,"width":626,"height":11}},{"id":"7734c43e-f65d-4769-ab33-71295f530042","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":21,"box":{"x":265,"y":383,"width":592,"height":11}},{"id":"d9b04b02-b257-4769-91c7-fe0d72497084","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Arthur","page_number":21,"box":{"x":265,"y":398,"width":629,"height":11}},{"id":"f4a2ed66-4a6f-45b1-9f54-3fcb851e8528","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":21,"box":{"x":265,"y":413,"width":626,"height":11}},{"id":"12f80f1a-ca33-4259-841c-a03663d3f2e0","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":21,"box":{"x":264,"y":428,"width":608,"height":12}},{"id":"0d215cb7-8d9f-43af-9242-764246fd6ad4","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":21,"box":{"x":265,"y":443,"width":575,"height":12}},{"id":"554f6b71-5d09-4e14-a2aa-a8c9665ad7c0","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":21,"box":{"x":264,"y":459,"width":591,"height":11}},{"id":"2f295218-4463-4ee0-b050-fe8a398b49aa","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":21,"box":{"x":265,"y":474,"width":627,"height":11}},{"id":"08106d58-b347-4270-b314-6bcc76697e3f","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":21,"box":{"x":265,"y":489,"width":578,"height":11}},{"id":"8b6e9407-be1a-4d01-a0c9-fe969bcfb615","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":21,"box":{"x":265,"y":504,"width":607,"height":11}},{"id":"841d55b7-a099-4dd7-b056-012274e8965a","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":21,"box":{"x":265,"y":519,"width":615,"height":11}},{"id":"1793f3bd-75c1-4e7e-9a7f-ed00edaaf3db","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":21,"box":{"x":265,"y":534,"width":638,"height":11}},{"id":"31cd74c8-8485-4017-a7ed-09df8e049abc","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":21,"box":{"x":265,"y":549,"width":635,"height":11}},{"id":"2e40b848-3f2a-46dd-898b-8560d2cd541b","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":21,"box":{"x":265,"y":564,"width":642,"height":12}},{"id":"93968a2d-efa8-40aa-b6ef-e3a4a8ec1484","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":21,"box":{"x":265,"y":580,"width":627,"height":11}},{"id":"1dc34d25-6d31-4450-9e82-570b9181b257","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":21,"box":{"x":265,"y":595,"width":628,"height":11}},{"id":"a4e89659-26d6-43fe-a136-3262180246ce","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":21,"box":{"x":265,"y":610,"width":460,"height":11}},{"id":"82c5bfe8-f9c7-44ea-9b32-734347942fb4","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":21,"box":{"x":70,"y":632,"width":818,"height":12}},{"id":"2700d4fb-dea1-4705-a29d-1f31d164274c","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":21,"box":{"x":264,"y":647,"width":603,"height":12}},{"id":"9a99dbce-3d02-405c-960a-d1bb23130d7a","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":21,"box":{"x":265,"y":663,"width":606,"height":11}},{"id":"16723b0c-e0cd-412d-921c-234c4bc62a38","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":21,"box":{"x":265,"y":678,"width":608,"height":9}},{"id":"b57e13d7-a145-4d02-8ea9-2f5b3354a5eb","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":21,"box":{"x":265,"y":693,"width":626,"height":11}},{"id":"2fc2556e-63f6-4619-b760-6be190fd3975","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":21,"box":{"x":265,"y":708,"width":591,"height":11}},{"id":"d8076b62-fa06-4444-b5f8-15574b505b3b","block_type":"box","text":"various private and non-profit boards.","page_number":21,"box":{"x":264,"y":723,"width":265,"height":11}},{"id":"1b815ae1-f340-49da-b999-c59f8cc77b51","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":21,"box":{"x":70,"y":746,"width":833,"height":11}},{"id":"d45dca81-2055-4147-b22e-63e49df2ecc2","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":21,"box":{"x":265,"y":761,"width":638,"height":11}},{"id":"456a2378-a22b-4c1e-b498-8ce8c41c36ce","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":21,"box":{"x":265,"y":776,"width":608,"height":11}},{"id":"5623c1c4-25ac-4203-9419-cd954c571210","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":21,"box":{"x":264,"y":791,"width":645,"height":11}},{"id":"51d15ab4-1e91-4772-8c6a-008c52ffc170","block_type":"box","text":"firm’s executive committee. He also served as Bessemer’s Chief Investment Officer for 8","page_number":21,"box":{"x":264,"y":806,"width":639,"height":9}},{"id":"36a4db8b-803c-4dfd-9bf6-ac85b0f1a0a7","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":21,"box":{"x":264,"y":821,"width":573,"height":12}},{"id":"d7e9bacd-f645-4289-9f18-2b2a49c7392b","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":21,"box":{"x":265,"y":836,"width":625,"height":12}},{"id":"ced5d7f8-726a-42dc-bea5-63f51f21ed00","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. These positions","page_number":21,"box":{"x":265,"y":852,"width":610,"height":11}},{"id":"c21fd226-2826-4e9e-9903-437255a9bd69","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":21,"box":{"x":265,"y":867,"width":642,"height":11}},{"id":"fd3ef6f9-69e5-48fc-a958-26a41b9e01a8","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as consultant to the Independent","page_number":21,"box":{"x":265,"y":882,"width":583,"height":11}},{"id":"032f5fdf-1521-46cb-b224-eb50f2f2ca16","block_type":"box","text":"Trustees prior to becoming an Independent Trustee.","page_number":21,"box":{"x":264,"y":897,"width":369,"height":11}},{"id":"e66fc856-77d7-47d2-8e9c-e238b56df492","block_type":"box","text":"I-11","page_number":21,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"1f4db47e-9b24-4ad9-9195-0480473aef41","block_type":"box","text":"NM1026U-5993100-21/236","page_number":21,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"67005390-1c9d-42d4-8aae-9cf177a525ea","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":22,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"c6750ee7-344e-4dbb-9a6a-4dd772669c5f","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":22,"box":{"x":70,"y":65,"width":807,"height":12}},{"id":"ea532bf7-e904-4013-8a4d-90c68f460b3f","block_type":"box","text":"companies, most recently as a member of the boards of certain BlackRock-advised Funds","page_number":22,"box":{"x":264,"y":81,"width":641,"height":11}},{"id":"8173d7a5-5e52-43b0-ae45-f8a05e02bc3e","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":22,"box":{"x":265,"y":96,"width":618,"height":11}},{"id":"1c90b5a1-3812-43a5-ba9a-0e97d6686a5e","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":22,"box":{"x":265,"y":111,"width":594,"height":11}},{"id":"7077b41a-48f7-4583-8562-1d3282bea66b","block_type":"box","text":"accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to","page_number":22,"box":{"x":265,"y":126,"width":639,"height":11}},{"id":"0d6e615d-492a-4621-81e7-35de1b207a0f","block_type":"box","text":"be an audit committee financial expert, as such term is defined in the applicable","page_number":22,"box":{"x":265,"y":141,"width":575,"height":11}},{"id":"ce30a3ff-943c-42ff-9791-c2402ef69c6a","block_type":"box","text":"Commission rules.","page_number":22,"box":{"x":265,"y":156,"width":131,"height":9}},{"id":"b3bb4086-8ac3-4de0-bddf-ae81063e549a","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":22,"box":{"x":69,"y":179,"width":808,"height":11}},{"id":"1757e081-016a-4d10-aebb-d506f11df6e0","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liberty Square Asset","page_number":22,"box":{"x":265,"y":194,"width":630,"height":11}},{"id":"a6b5f1c9-2fe3-44cd-a69f-6c7a6c2c5799","block_type":"box","text":"Management, LP / Steel Partners Japan Asset Management, LP from 1998 to 2015, an","page_number":22,"box":{"x":265,"y":209,"width":627,"height":11}},{"id":"cb409b05-1391-4123-ae9e-ea2c16e60218","block_type":"box","text":"investment manager that specialized in long/short non-U.S. equity investments, and was","page_number":22,"box":{"x":265,"y":224,"width":632,"height":11}},{"id":"8a832555-3998-4905-abd9-2958b2b627f2","block_type":"box","text":"an owner and General Partner of Neon Liberty Capital Management, LLC from 2003 to","page_number":22,"box":{"x":265,"y":239,"width":615,"height":12}},{"id":"70d7908a-2c79-4f71-a607-1fa405edfed0","block_type":"box","text":"2023, a firm focusing on long/short equities in global emerging and frontier markets.","page_number":22,"box":{"x":265,"y":254,"width":608,"height":12}},{"id":"f50a272f-1f8f-4fd5-bd25-9cac503b5e95","block_type":"box","text":"These positions have provided her with insight and perspective on the markets and the","page_number":22,"box":{"x":264,"y":270,"width":620,"height":11}},{"id":"c6c2af11-7902-4765-b893-6126b44e41e4","block_type":"box","text":"economy. 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Previously, each served as a consultant to the","page_number":26,"box":{"x":94,"y":108,"width":807,"height":9}},{"id":"1f8e4c74-700e-4cc3-bf9c-60354a9b5d2c","block_type":"box","text":"Independent Trustees from April 1, 2026 to July 1, 2026.","page_number":26,"box":{"x":94,"y":118,"width":326,"height":9}},{"id":"d89e30a0-0a4d-4c2e-982d-643571fa20c5","block_type":"box","text":"5","page_number":26,"box":{"x":69,"y":131,"width":3,"height":4}},{"id":"b31bdfab-91cc-4a4c-a285-dafb5f9af5ca","block_type":"box","text":"Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the Investment Company Act, of the Fund based on their positions","page_number":26,"box":{"x":94,"y":131,"width":813,"height":9}},{"id":"7fd7e93e-05ae-4872-bad3-5c1026affb7e","block_type":"box","text":"with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Fixed-Income Complex.","page_number":26,"box":{"x":93,"y":141,"width":772,"height":9}},{"id":"9c9dcea1-dfd2-4068-9600-54f9e8e8be4e","block_type":"box","text":"6","page_number":26,"box":{"x":69,"y":154,"width":3,"height":3}},{"id":"23837a09-a1f9-4b03-a5bb-58b488042a74","block_type":"box","text":"Mr. Perlowski is also a trustee of the BlackRock HPS Credit Strategies Fund and BlackRock Private Investments Fund.","page_number":26,"box":{"x":94,"y":153,"width":669,"height":10}},{"id":"43e8cc93-4997-49d4-b386-5a18c8fe06bb","block_type":"box","text":"Certain biographical and other information relating to the officers of the Fund who are not Trustees is set forth","page_number":26,"box":{"x":102,"y":174,"width":786,"height":12}},{"id":"956fdabf-3050-4a42-b7c3-e7fe77da9653","block_type":"box","text":"below, including their address and year of birth, principal occupations for at least the last five years and length of","page_number":26,"box":{"x":69,"y":189,"width":808,"height":12}},{"id":"d85fef53-54e8-4ca7-93ae-153a6f68cdc9","block_type":"box","text":"time served.","page_number":26,"box":{"x":68,"y":205,"width":89,"height":9}},{"id":"b802c323-df01-47dc-b66b-d1c979a0a8c4","block_type":"box","text":"Name","page_number":26,"box":{"x":160,"y":233,"width":32,"height":7}},{"id":"eca23785-8bda-4130-94eb-0e2806b39511","block_type":"box","text":"and Year of Birth","page_number":26,"box":{"x":122,"y":243,"width":97,"height":7}},{"id":"76c85909-f899-4cdf-b5f8-104c4906dfca","block_type":"box","text":"1,2","page_number":26,"box":{"x":220,"y":243,"width":10,"height":4}},{"id":"27880d5b-ef2c-4ccd-aaac-916e6bdc5624","block_type":"box","text":"Position(s) Held","page_number":26,"box":{"x":335,"y":233,"width":93,"height":9}},{"id":"2dfff512-f4ed-4042-a34b-dd57969d4a22","block_type":"box","text":"(Length of Service)","page_number":26,"box":{"x":326,"y":243,"width":110,"height":9}},{"id":"f03f076b-0ece-408f-91a6-98f654a829bd","block_type":"box","text":"Principal Occupation(s)","page_number":26,"box":{"x":626,"y":233,"width":136,"height":9}},{"id":"f0472c16-83b5-4765-87a7-410804d8861a","block_type":"box","text":"During Past Five Years","page_number":26,"box":{"x":629,"y":243,"width":131,"height":9}},{"id":"14071b73-e7a7-4095-a5a1-f372ef2fbf35","block_type":"box","text":"Officers Who Are Not Trustees","page_number":26,"box":{"x":69,"y":257,"width":194,"height":8}},{"id":"0c0cf5af-64f3-4309-aeab-2ebdc7de6cf6","block_type":"box","text":"Jennifer McGovern","page_number":26,"box":{"x":69,"y":275,"width":110,"height":8}},{"id":"38f5044c-0db3-4dce-8078-047a30e1fc3c","block_type":"box","text":"1977","page_number":26,"box":{"x":69,"y":291,"width":32,"height":8}},{"id":"4ef358a9-9a19-4c2d-a00f-f0aa26cddc1f","block_type":"box","text":"Vice President","page_number":26,"box":{"x":293,"y":275,"width":87,"height":8}},{"id":"bf4eb464-06d7-4dd0-8164-acb96ce38cc8","block_type":"box","text":"(Since 2014)","page_number":26,"box":{"x":294,"y":287,"width":78,"height":10}},{"id":"0135c01f-5450-43de-a454-ee6c7a956b5a","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2016.","page_number":26,"box":{"x":480,"y":275,"width":297,"height":10}},{"id":"4b272c7c-3601-4abd-9880-623cc26b51df","block_type":"box","text":"Trent Walker","page_number":26,"box":{"x":68,"y":308,"width":75,"height":8}},{"id":"1e76befa-f9d7-43a2-89f2-1f8139abec45","block_type":"box","text":"1974","page_number":26,"box":{"x":69,"y":324,"width":33,"height":8}},{"id":"4454b5f5-6659-43cb-9c9b-9657ff9b1fb3","block_type":"box","text":"Chief","page_number":26,"box":{"x":294,"y":308,"width":31,"height":8}},{"id":"a2c5de01-df7b-4803-aefb-85aa81ef21aa","block_type":"box","text":"Financial","page_number":26,"box":{"x":294,"y":320,"width":51,"height":8}},{"id":"9c8a9d87-4e89-49dc-bb1b-1f4bbfee64fb","block_type":"box","text":"Officer","page_number":26,"box":{"x":294,"y":332,"width":40,"height":8}},{"id":"e6cd15a0-e10e-4281-a94f-cc48bf2b7755","block_type":"box","text":"(Since 2021)","page_number":26,"box":{"x":294,"y":344,"width":78,"height":10}},{"id":"22395049-c4e8-4599-b4f5-1a0b7d1547b8","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2019.","page_number":26,"box":{"x":480,"y":308,"width":297,"height":10}},{"id":"6867b0c3-6602-4ab1-9378-c9fb5fe3fbbb","block_type":"box","text":"Jay M. 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(since 2006); Chief Compliance","page_number":26,"box":{"x":480,"y":395,"width":415,"height":10}},{"id":"c1521fac-67f3-4a5d-b222-2735649ad1db","block_type":"box","text":"Officer of BlackRock Advisors, LLC (since 2014) and BlackRock Fund","page_number":26,"box":{"x":480,"y":407,"width":414,"height":10}},{"id":"9145a77e-ff45-494b-8f2a-ec11ef98ad4c","block_type":"box","text":"Advisors (since 2006); Chief Compliance Officer of the iShares","page_number":26,"box":{"x":479,"y":419,"width":378,"height":10}},{"id":"a3d28321-dc67-418b-82c6-7ab306d38dc7","block_type":"box","text":"Complex (since 2026 and 2006-2023); Chief Compliance Officer of","page_number":26,"box":{"x":480,"y":431,"width":407,"height":10}},{"id":"46ab25a4-dfbb-4a56-90a2-6a49ff1e370c","block_type":"box","text":"the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income","page_number":26,"box":{"x":479,"y":443,"width":411,"height":10}},{"id":"f407afb2-8925-4345-ba01-0f0f56920f64","block_type":"box","text":"Complex (since 2026 and 2014-2023).","page_number":26,"box":{"x":480,"y":455,"width":236,"height":10}},{"id":"3a709d0e-2f86-484b-9f0c-07367aea5636","block_type":"box","text":"Lisa Belle","page_number":26,"box":{"x":69,"y":473,"width":58,"height":8}},{"id":"e0a1ab12-e96a-4b25-8474-0ed4fa66ed62","block_type":"box","text":"1968","page_number":26,"box":{"x":69,"y":488,"width":33,"height":8}},{"id":"934bd851-2ac1-4b39-b194-d132205409fe","block_type":"box","text":"Anti-Money Laundering","page_number":26,"box":{"x":293,"y":473,"width":136,"height":10}},{"id":"eef808d0-d59c-4a53-a5cd-756db5c36f54","block_type":"box","text":"Compliance Officer","page_number":26,"box":{"x":294,"y":485,"width":114,"height":9}},{"id":"fc5d97dd-3803-4ad2-b20f-ac3f060d78b9","block_type":"box","text":"(Since 2019)","page_number":26,"box":{"x":294,"y":497,"width":78,"height":9}},{"id":"b57d5f0b-cca4-4043-905e-6bda69298c97","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2019.","page_number":26,"box":{"x":480,"y":473,"width":297,"height":10}},{"id":"aa7bdc57-8acc-426b-993c-e24ca68ade50","block_type":"box","text":"Janey Ahn","page_number":26,"box":{"x":69,"y":514,"width":59,"height":10}},{"id":"d646caff-f685-4cf9-be36-df4467ba8eef","block_type":"box","text":"1975","page_number":26,"box":{"x":69,"y":530,"width":33,"height":8}},{"id":"1dd21c0e-10f7-4218-aa80-09424b48a289","block_type":"box","text":"Secretary","page_number":26,"box":{"x":294,"y":514,"width":58,"height":10}},{"id":"54c00207-e1e5-4bee-9ce2-17fec636295f","block_type":"box","text":"(Since 2019)","page_number":26,"box":{"x":294,"y":526,"width":78,"height":10}},{"id":"1196a42f-f507-4a44-8034-bba0ed9bd85e","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2018.","page_number":26,"box":{"x":480,"y":514,"width":297,"height":10}},{"id":"ee550227-aff7-4c0e-b0fb-16f4388be705","block_type":"box","text":"1","page_number":26,"box":{"x":69,"y":554,"width":3,"height":3}},{"id":"0f0ce71a-0e39-460c-b4d3-075433f54116","block_type":"box","text":"The address of each Officer is c/o BlackRock, Inc., 50 Hudson Yards, New York, New York 10001.","page_number":26,"box":{"x":93,"y":553,"width":559,"height":9}},{"id":"e3f345a5-62d9-43c2-a3e9-45a9bcac3e5f","block_type":"box","text":"2","page_number":26,"box":{"x":69,"y":566,"width":3,"height":4}},{"id":"e377b545-2a96-41db-8a8d-0384e61033a7","block_type":"box","text":"Officers of the Fund serve at the pleasure of the Board.","page_number":26,"box":{"x":93,"y":566,"width":317,"height":9}},{"id":"6595a68c-93c7-479c-8ce8-edd3e7669b16","block_type":"box","text":"3","page_number":26,"box":{"x":69,"y":579,"width":3,"height":3}},{"id":"058c4ca5-f37e-42d4-8498-3a1cca0147a0","block_type":"box","text":"Effective August 1, 2026, Charles Park succeeded Aaron Wasserman as Chief Compliance Officer.","page_number":26,"box":{"x":94,"y":579,"width":560,"height":9}},{"id":"16d9cc52-9f27-449f-8058-5a918d22f0fd","block_type":"box","text":"Share Ownership","page_number":26,"box":{"x":68,"y":607,"width":123,"height":11}},{"id":"ee4f2d18-f14e-4e25-bdd2-333e62d93a84","block_type":"box","text":"Information relating to each Trustee’s share ownership in the Fund and in all BlackRock-advised Funds that are","page_number":26,"box":{"x":102,"y":630,"width":790,"height":11}},{"id":"a0e59f51-0e5b-4034-a3eb-ed5d57de1ed9","block_type":"box","text":"currently overseen by the respective Trustee (“Supervised Funds”) as of December 31, 2025, except as otherwise","page_number":26,"box":{"x":69,"y":645,"width":817,"height":11}},{"id":"3e305293-1d1e-48ab-b7a2-cd528d1bec65","block_type":"box","text":"noted, is set forth in the chart below. Amounts shown may include shares as to which a Trustee has indirect","page_number":26,"box":{"x":69,"y":660,"width":774,"height":11}},{"id":"092f5517-882a-4910-919d-5d85f97ab3ea","block_type":"box","text":"beneficial ownership, such as through participation in certain family accounts, 529 college savings plan interests, or","page_number":26,"box":{"x":69,"y":675,"width":833,"height":11}},{"id":"8fb876c4-da12-4c97-8c03-5bc5e798296e","block_type":"box","text":"similar arrangements where the Trustee has beneficial economic interest but not a direct ownership interest.","page_number":26,"box":{"x":69,"y":690,"width":776,"height":12}},{"id":"54ec8eae-d044-48dc-b266-92dc94d14dcb","block_type":"box","text":"Name","page_number":26,"box":{"x":69,"y":749,"width":32,"height":7}},{"id":"6695752d-090f-4f19-ab14-15093c40828f","block_type":"box","text":"Dollar","page_number":26,"box":{"x":684,"y":719,"width":33,"height":7}},{"id":"f17c7824-24b8-428d-adb4-9def9640b21c","block_type":"box","text":"Range of Equity","page_number":26,"box":{"x":655,"y":729,"width":91,"height":9}},{"id":"97fe004d-00ac-4f7b-8f24-dacac3a14f34","block_type":"box","text":"Securities in the","page_number":26,"box":{"x":652,"y":739,"width":95,"height":7}},{"id":"5b026698-4ade-4621-8e70-4fdd21c9fccd","block_type":"box","text":"Fund","page_number":26,"box":{"x":686,"y":749,"width":27,"height":7}},{"id":"498195fd-9776-4657-89ee-77e434d492d7","block_type":"box","text":"Aggregate Dollar","page_number":26,"box":{"x":805,"y":719,"width":99,"height":8}},{"id":"95cc7010-c187-434c-bbb8-70cc983d709a","block_type":"box","text":"Range of Equity","page_number":26,"box":{"x":809,"y":729,"width":91,"height":9}},{"id":"8d531f96-142a-4c21-a697-3545907837ac","block_type":"box","text":"Securities in","page_number":26,"box":{"x":818,"y":739,"width":72,"height":7}},{"id":"f5987bd3-a0db-4432-bd65-52b183ec2348","block_type":"box","text":"Supervised Funds","page_number":26,"box":{"x":803,"y":749,"width":102,"height":9}},{"id":"42623cbb-0398-4aef-8ebe-c962c28cfd36","block_type":"box","text":"Independent Trustees","page_number":26,"box":{"x":70,"y":767,"width":154,"height":10}},{"id":"76aeb70c-41ee-4fa6-aad4-dac6d7775774","block_type":"box","text":"Christopher J. Ailman . . . . . .","page_number":26,"box":{"x":79,"y":782,"width":202,"height":11}},{"id":"6a239e77-25de-4884-a069-0f12833dea45","block_type":"box","text":".......................................","page_number":26,"box":{"x":287,"y":789,"width":312,"height":2}},{"id":"400c4fb1-8cc1-4e98-bd35-49696e607da1","block_type":"box","text":"None Over $100,000","page_number":26,"box":{"x":682,"y":781,"width":227,"height":11}},{"id":"d90471ea-8fad-4aea-9326-37e192e0928a","block_type":"box","text":"Susan J. Carter","page_number":26,"box":{"x":79,"y":797,"width":110,"height":9}},{"id":"790a50c8-d357-4650-8beb-07f8a9b0ba97","block_type":"box","text":"..................................................","page_number":26,"box":{"x":197,"y":804,"width":402,"height":2}},{"id":"60083909-7101-425d-9a2b-cc9042d55a70","block_type":"box","text":"None Over $100,000","page_number":26,"box":{"x":682,"y":796,"width":227,"height":11}},{"id":"63e981b0-5b2d-47ab-9237-6cbfe57cf3f8","block_type":"box","text":"Collette Chilton. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":79,"y":812,"width":520,"height":9}},{"id":"4048b63e-68fc-4d7c-a612-218bade95d18","block_type":"box","text":"None Over $100,000","page_number":26,"box":{"x":682,"y":811,"width":227,"height":11}},{"id":"023dfc9a-51e5-4788-9c47-78bd0b5fdddc","block_type":"box","text":"Neil A. Cotty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":79,"y":827,"width":520,"height":11}},{"id":"f697d5d5-4300-4097-bf06-7b02f928e19c","block_type":"box","text":"None Over $100,000","page_number":26,"box":{"x":682,"y":826,"width":227,"height":11}},{"id":"18da6cdc-8c44-42d6-8c84-69798dca0880","block_type":"box","text":"Jeffrey Jarczyk* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":78,"y":842,"width":521,"height":11}},{"id":"2db8c643-3bef-4f34-98b5-fa8eeaea62ac","block_type":"box","text":"None None","page_number":26,"box":{"x":682,"y":842,"width":190,"height":9}},{"id":"ccbb203f-ce33-43e1-95d1-16eb1a1a6e8b","block_type":"box","text":"Henry R. Keizer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":79,"y":857,"width":520,"height":11}},{"id":"a044a5ba-dd37-42c1-ace3-a59bb3fe04f8","block_type":"box","text":"$10,001 - $50,000 Over $100,000","page_number":26,"box":{"x":630,"y":857,"width":279,"height":11}},{"id":"82a98679-a073-4cd0-bcdd-593946c88a5c","block_type":"box","text":"Cynthia A. Montgomery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":79,"y":872,"width":520,"height":12}},{"id":"755f0ed4-8a21-4695-9fab-b8c2b5e319c8","block_type":"box","text":"None Over $100,000","page_number":26,"box":{"x":682,"y":872,"width":227,"height":11}},{"id":"fa0c4e4b-bcb1-476e-a473-4b17fb47a4b7","block_type":"box","text":"Donald C. 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Walton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":79,"y":142,"width":520,"height":9}},{"id":"abacb485-1abb-4a43-b593-995705d553d7","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":682,"y":142,"width":227,"height":11}},{"id":"06e06840-8769-485d-9ba7-2b59d393e210","block_type":"box","text":"Interested Trustees","page_number":27,"box":{"x":70,"y":158,"width":138,"height":8}},{"id":"77ee93b9-5d11-445e-8971-e12e64d967ce","block_type":"box","text":"Robert Fairbairn . .","page_number":27,"box":{"x":79,"y":173,"width":128,"height":9}},{"id":"9ffa89e3-43e0-44e4-b8bc-25b80b464603","block_type":"box","text":"................................................","page_number":27,"box":{"x":214,"y":180,"width":385,"height":1}},{"id":"9a0962cd-7d46-46d6-80cd-fec821bec95b","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":682,"y":172,"width":227,"height":11}},{"id":"2ad8a30f-3b25-418b-b83e-49652141f9d2","block_type":"box","text":"John M. 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As of December 31, 2025 (and,","page_number":27,"box":{"x":69,"y":248,"width":809,"height":11}},{"id":"ad5b7072-443f-46d4-8d79-baf011396538","block_type":"box","text":"with respect to Mr. Jarczyk and Mr. Stern, as of April 1, 2026), none of the Independent Trustees of the Fund or their","page_number":27,"box":{"x":68,"y":263,"width":834,"height":11}},{"id":"6aee6190-419a-454d-8210-bc3845f5a965","block_type":"box","text":"immediate family members owned beneficially or of record any securities of the Fund’s investment adviser, principal","page_number":27,"box":{"x":70,"y":278,"width":824,"height":11}},{"id":"5a836e64-fd65-418d-93ad-04e7af39ea82","block_type":"box","text":"underwriter, or any person directly or indirectly controlling, controlled by, or under common control with such entities.","page_number":27,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"46e7725a-e860-4b98-9244-296f26281960","block_type":"box","text":"Compensation of Trustees","page_number":27,"box":{"x":69,"y":324,"width":190,"height":11}},{"id":"e8091c41-718f-4c4a-b506-48ac064f1eed","block_type":"box","text":"Each Trustee who is an Independent Trustee is paid as compensation an annual retainer of $375,000 per year","page_number":27,"box":{"x":102,"y":346,"width":791,"height":12}},{"id":"d0e964c0-cbe6-4975-b924-b4739f69ca72","block_type":"box","text":"for his or her services as a board member of the BlackRock-advised Funds in the BlackRock Multi-Asset Complex,","page_number":27,"box":{"x":68,"y":361,"width":810,"height":11}},{"id":"a429a27c-948b-4545-870e-f1826a761678","block_type":"box","text":"including the Fund, and a $20,000 board meeting fee to be paid for each in-person board meeting attended (and may","page_number":27,"box":{"x":70,"y":376,"width":837,"height":12}},{"id":"993c9fdf-8a50-40bc-adf4-d38484e228b5","block_type":"box","text":"receive a board meeting fee for telephonic attendance at board meetings), for up to five board meetings held in a","page_number":27,"box":{"x":69,"y":392,"width":807,"height":11}},{"id":"5bab9e00-7de8-425c-9988-add654b16124","block_type":"box","text":"calendar year (compensation for meetings in excess of this number to be determined on a case-by-case basis),","page_number":27,"box":{"x":69,"y":407,"width":791,"height":11}},{"id":"7a2c1c2e-c677-43d0-8934-28582afaac24","block_type":"box","text":"together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":27,"box":{"x":68,"y":422,"width":786,"height":11}},{"id":"99215ac8-5114-4928-8e50-6522a9111fad","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":27,"box":{"x":69,"y":437,"width":769,"height":11}},{"id":"f4148847-8fc9-4dcd-869b-d5c8281d3bb6","block_type":"box","text":"Committee and Performance Oversight Committee are paid as compensation an additional annual retainer of","page_number":27,"box":{"x":69,"y":452,"width":778,"height":11}},{"id":"06dd0e2f-2a84-44ec-b7e4-6b7610ad2d48","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":27,"box":{"x":69,"y":467,"width":689,"height":11}},{"id":"da1ad169-9525-426e-bebb-1f61f4e67b88","block_type":"box","text":"The following table sets forth the compensation the Fund paid to the Trustees for the fiscal year ended","page_number":27,"box":{"x":101,"y":490,"width":733,"height":11}},{"id":"ffb57eb9-b8b5-4e9f-859f-884105f5d84f","block_type":"box","text":"April 30, 2026 and the aggregate compensation paid to them by all BlackRock-advised Funds for the calendar year","page_number":27,"box":{"x":68,"y":505,"width":818,"height":11}},{"id":"8e2ddab5-404a-42c2-939a-8d6b69408bbf","block_type":"box","text":"ended December 31, 2025.","page_number":27,"box":{"x":69,"y":520,"width":197,"height":11}},{"id":"4e70b6a2-74b4-43d1-b430-967259d2fbdf","block_type":"box","text":"Name","page_number":27,"box":{"x":69,"y":589,"width":32,"height":7}},{"id":"b7ecd8a8-efb6-415c-8365-e78dd0a6132d","block_type":"box","text":"Compensation","page_number":27,"box":{"x":551,"y":569,"width":83,"height":8}},{"id":"47893cbd-8e0f-4a00-abab-6e35933fcff0","block_type":"box","text":"from the","page_number":27,"box":{"x":568,"y":579,"width":49,"height":7}},{"id":"9af529dc-da2e-4e6a-965b-de1cc5c16474","block_type":"box","text":"Fund","page_number":27,"box":{"x":579,"y":589,"width":27,"height":7}},{"id":"58395409-0017-4b73-9321-ead498387c8d","block_type":"box","text":"Estimated Annual","page_number":27,"box":{"x":664,"y":569,"width":102,"height":7}},{"id":"ef627459-e2d4-446e-b5e6-8d2e5570f877","block_type":"box","text":"Benefits upon","page_number":27,"box":{"x":676,"y":579,"width":79,"height":9}},{"id":"80b0b81e-7061-4991-a7e7-0e447f431aa1","block_type":"box","text":"Retirement","page_number":27,"box":{"x":683,"y":589,"width":64,"height":7}},{"id":"c0e59528-5044-4c5c-b917-1cc3167a1592","block_type":"box","text":"Aggregate","page_number":27,"box":{"x":822,"y":549,"width":61,"height":8}},{"id":"d15058fc-a25e-4bff-a1c5-a865d38d96ea","block_type":"box","text":"Compensation from","page_number":27,"box":{"x":796,"y":559,"width":113,"height":8}},{"id":"699a6c33-a0ca-408f-ab51-3b8add0bf9ae","block_type":"box","text":"the Fund and","page_number":27,"box":{"x":815,"y":569,"width":75,"height":7}},{"id":"794c3dfc-7568-4cac-82f2-c50cb1146f11","block_type":"box","text":"Other BlackRock","page_number":27,"box":{"x":802,"y":579,"width":102,"height":7}},{"id":"d4cec156-6fed-402d-8094-955aa25b0ccd","block_type":"box","text":"Advised Funds","page_number":27,"box":{"x":809,"y":589,"width":84,"height":7}},{"id":"34cc380f-71cf-4d07-ba7d-a253bcdf2cca","block_type":"box","text":"1","page_number":27,"box":{"x":893,"y":589,"width":4,"height":3}},{"id":"4b4502a7-7b92-4301-ac61-7ea7d823a07f","block_type":"box","text":"Independent Trustees","page_number":27,"box":{"x":70,"y":607,"width":154,"height":10}},{"id":"93cf7a0a-f549-452b-97b7-08bfbe596b88","block_type":"box","text":"Christopher J. 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Cotty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":79,"y":667,"width":441,"height":11}},{"id":"404beac9-828b-4774-9965-3cd3bd736d74","block_type":"box","text":"$11,337 None $467,500","page_number":27,"box":{"x":562,"y":666,"width":327,"height":11}},{"id":"a4e62512-2911-456d-abd5-feb726d9da14","block_type":"box","text":"Jeffrey Jarczyk","page_number":27,"box":{"x":78,"y":682,"width":103,"height":11}},{"id":"38f9cef3-ccd7-41a7-89c9-b6ca353a3e78","block_type":"box","text":"2","page_number":27,"box":{"x":181,"y":683,"width":4,"height":4}},{"id":"b4f438fb-c075-44e7-901e-4275954a4c84","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,092 None None","page_number":27,"box":{"x":200,"y":681,"width":689,"height":12}},{"id":"5cf44f84-dea0-4a19-ae4a-c206847d9184","block_type":"box","text":"Henry R. 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None None None","page_number":27,"box":{"x":208,"y":849,"width":681,"height":8}},{"id":"87cf5e9f-d833-4f55-99e1-bf0ed9f16595","block_type":"box","text":"1","page_number":27,"box":{"x":69,"y":873,"width":3,"height":4}},{"id":"f80ee319-e988-48f2-8d21-b294a749a432","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Trustee receives compensation, see “Biographical Information” beginning on","page_number":27,"box":{"x":94,"y":873,"width":786,"height":9}},{"id":"690ea868-d73d-4629-b908-9f48e892b546","block_type":"box","text":"page I-12.","page_number":27,"box":{"x":94,"y":883,"width":55,"height":9}},{"id":"4ca8a8a5-a24c-4fe2-a6da-1d286dc7d42f","block_type":"box","text":"2","page_number":27,"box":{"x":69,"y":896,"width":3,"height":3}},{"id":"ae85afba-8e93-4777-b17d-cf93d6ec369e","block_type":"box","text":"Compensation includes $1,092 earned as a consultant to the Independent Trustees for the period April 1, 2026 to July 1, 2026.","page_number":27,"box":{"x":93,"y":895,"width":735,"height":9}},{"id":"956cd5dc-f46b-4e2b-9016-d6f5642907e2","block_type":"box","text":"3","page_number":27,"box":{"x":69,"y":908,"width":3,"height":4}},{"id":"b64a9082-d9a6-486f-9f02-550ce0d745ac","block_type":"box","text":"Chair of the Audit Committee.","page_number":27,"box":{"x":93,"y":908,"width":168,"height":7}},{"id":"2be1bf70-d080-45ea-b2e7-5e78a14f5c2c","block_type":"box","text":"I-17","page_number":27,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"837208ec-6893-4d26-a885-a2e563e064c5","block_type":"box","text":"NM1026U-5993100-27/236","page_number":27,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"597a06f9-b5e6-45f1-9a76-516ecaff39e7","block_type":"box","text":"4","page_number":28,"box":{"x":68,"y":45,"width":4,"height":4}},{"id":"f952e4ae-508e-4e81-9d77-aa5f9fc4c570","block_type":"box","text":"Chair of the Governance Committee.","page_number":28,"box":{"x":93,"y":45,"width":206,"height":7}},{"id":"07b4ef18-cae7-4cf8-9f0c-e8168e1fcd33","block_type":"box","text":"5","page_number":28,"box":{"x":69,"y":58,"width":3,"height":3}},{"id":"b9705c00-e68a-4976-b457-df9a8d812a71","block_type":"box","text":"Chair of the Performance Oversight Committee.","page_number":28,"box":{"x":93,"y":58,"width":269,"height":9}},{"id":"afb4faac-32de-4d40-97a6-1a169abd008f","block_type":"box","text":"6","page_number":28,"box":{"x":69,"y":70,"width":3,"height":4}},{"id":"e6781733-d0e4-43ed-af17-4b399db8f3b1","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":28,"box":{"x":93,"y":70,"width":352,"height":9}},{"id":"5bc1ee0a-56e5-43f3-863f-5362cd511e5e","block_type":"box","text":"7","page_number":28,"box":{"x":69,"y":83,"width":3,"height":4}},{"id":"77d8cc78-15f2-49c4-a933-f4167991fb87","block_type":"box","text":"Chair of the Compliance Committee.","page_number":28,"box":{"x":93,"y":83,"width":205,"height":9}},{"id":"c3631533-4a2d-40eb-8d2e-8bbf668480d8","block_type":"box","text":"IV. 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The contractual agreements may be terminated upon 90 days’ notice by a majority of the","page_number":28,"box":{"x":69,"y":285,"width":750,"height":12}},{"id":"a40b52de-049d-4c46-8bfb-f0237bb4b656","block_type":"box","text":"Independent Trustees of the Fund or by a vote of a majority of the outstanding voting securities of the Fund.","page_number":28,"box":{"x":70,"y":300,"width":765,"height":12}},{"id":"ff040f38-8086-4b82-9ebc-3897508564ba","block_type":"box","text":"Effective June 1, 2024, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order","page_number":28,"box":{"x":102,"y":323,"width":806,"height":11}},{"id":"ffad70db-1671-4d20-a32e-366189531565","block_type":"box","text":"to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding","page_number":28,"box":{"x":68,"y":338,"width":776,"height":11}},{"id":"4d8d38df-0d99-4a1d-81b8-4eceb0429b63","block_type":"box","text":"Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses (as defined","page_number":28,"box":{"x":70,"y":353,"width":832,"height":11}},{"id":"7f87bb63-475c-4856-a27f-3d059b2da9a5","block_type":"box","text":"in the Fund’s Prospectuses)) as a percentage of average daily net assets to 0.96% for Investor A Shares, 1.71% for","page_number":28,"box":{"x":70,"y":368,"width":824,"height":12}},{"id":"c02c9435-9837-4927-ab60-c000d19700a1","block_type":"box","text":"Investor C Shares, 0.71% for Institutional Shares, 1.21% for Class R Shares, 0.96% for Service Shares and 0.66%","page_number":28,"box":{"x":70,"y":383,"width":817,"height":11}},{"id":"7bf3690b-1225-48e5-8da9-3d91453089ca","block_type":"box","text":"for Class K Shares through June 30, 2028. The contractual agreement may be terminated upon 90 days’ notice by a","page_number":28,"box":{"x":68,"y":399,"width":833,"height":11}},{"id":"0e27f4e4-fdb3-4b16-9d7b-2e525022c6cc","block_type":"box","text":"majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of the Fund.","page_number":28,"box":{"x":69,"y":414,"width":788,"height":11}},{"id":"36ce0ad7-d7be-4256-88a8-405c42d70714","block_type":"box","text":"Pursuant to the Management Agreement, the Manager may from time to time, in its sole discretion to the extent","page_number":28,"box":{"x":102,"y":436,"width":800,"height":12}},{"id":"64695f44-9412-452d-b2f8-75ee7c768399","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of the Manager,","page_number":28,"box":{"x":70,"y":452,"width":834,"height":11}},{"id":"d0c65079-db29-495a-94fb-d9f807aca185","block_type":"box","text":"to perform investment advisory services with respect to the Fund. In addition, the Manager may delegate certain of","page_number":28,"box":{"x":68,"y":467,"width":825,"height":11}},{"id":"85c110f0-e3b9-4390-aba2-aa5de2c61356","block_type":"box","text":"its investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":28,"box":{"x":70,"y":482,"width":801,"height":11}},{"id":"3fe32f09-ff7f-4392-8038-f77e8d19b5cc","block_type":"box","text":"permitted by applicable law. The Manager may terminate any or all sub-advisers or such delegation arrangements in","page_number":28,"box":{"x":70,"y":497,"width":823,"height":11}},{"id":"466bf58e-b275-4618-a2d6-13e287d05f6d","block_type":"box","text":"its sole discretion at any time to the extent permitted by applicable law.","page_number":28,"box":{"x":70,"y":512,"width":508,"height":11}},{"id":"519b39f0-2ca9-4f8a-b98e-1b82c4a4c4ff","block_type":"box","text":"The table below sets forth information about the total management fees paid by the Fund to the Manager, and","page_number":28,"box":{"x":101,"y":535,"width":787,"height":11}},{"id":"4e7d01ba-c078-4ed6-9c2c-76c859d4056e","block_type":"box","text":"the amounts waived and/or reimbursed by the Manager, for the periods shown:","page_number":28,"box":{"x":68,"y":550,"width":565,"height":11}},{"id":"1951ca86-83dd-43d5-863a-0fb356f3d327","block_type":"box","text":"Fees Paid to","page_number":28,"box":{"x":570,"y":578,"width":72,"height":7}},{"id":"00d53715-b61e-4bee-a7c2-a9b8fc2d5b4d","block_type":"box","text":"the Manager","page_number":28,"box":{"x":569,"y":588,"width":74,"height":9}},{"id":"414ab3b8-fcb6-4729-9614-d7ee9878235d","block_type":"box","text":"Fees Waived by","page_number":28,"box":{"x":690,"y":578,"width":90,"height":9}},{"id":"c1d4dba6-b22b-43a4-a40b-478206aae830","block_type":"box","text":"the Manager","page_number":28,"box":{"x":697,"y":588,"width":74,"height":9}},{"id":"ef49702e-ab91-4fb9-bf78-d37df39fa2a1","block_type":"box","text":"Fees Reimbursed","page_number":28,"box":{"x":810,"y":578,"width":99,"height":7}},{"id":"e8e99a97-b4c6-4c62-b20a-8ebc0de55201","block_type":"box","text":"by the Manager","page_number":28,"box":{"x":814,"y":588,"width":91,"height":9}},{"id":"946496d9-d24c-4bc0-aeff-ebb97db84fc4","block_type":"box","text":"Fiscal Year Ended April 30, 2026","page_number":28,"box":{"x":70,"y":606,"width":232,"height":11}},{"id":"c3a3e415-13bb-480e-83e1-9dbc94bcdc12","block_type":"box","text":"...........................","page_number":28,"box":{"x":308,"y":613,"width":213,"height":2}},{"id":"d03a68a6-d3d7-42fb-a163-f1cf422f2025","block_type":"box","text":"$105,252,982 $487,445 $216,595","page_number":28,"box":{"x":553,"y":605,"width":342,"height":11}},{"id":"b30a73bc-fbeb-4cc9-b4c7-dbfebb266544","block_type":"box","text":"Fiscal Year Ended April 30, 2025","page_number":28,"box":{"x":70,"y":621,"width":232,"height":11}},{"id":"591c6a2c-a50a-4be1-95b1-4f23399012c9","block_type":"box","text":"...........................","page_number":28,"box":{"x":308,"y":628,"width":213,"height":2}},{"id":"7aad2a2c-b8b8-4d63-89ab-74d2c6710303","block_type":"box","text":"$105,310,603 $564,124 $277,013","page_number":28,"box":{"x":553,"y":620,"width":342,"height":12}},{"id":"b668e038-714d-489d-ac9e-8c7eada6b88f","block_type":"box","text":"Fiscal Year Ended April 30, 2024","page_number":28,"box":{"x":70,"y":636,"width":232,"height":11}},{"id":"2783a484-01a6-441e-a01e-67e2dc6901b1","block_type":"box","text":"...........................","page_number":28,"box":{"x":308,"y":644,"width":213,"height":1}},{"id":"afb3f603-4269-4409-b328-5ab3f1ad4598","block_type":"box","text":"$103,768,638 $613,903 $ 0","page_number":28,"box":{"x":553,"y":635,"width":342,"height":12}},{"id":"004f6eb3-efd7-47a4-b066-d968b2729ef4","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":28,"box":{"x":69,"y":668,"width":335,"height":11}},{"id":"6f52aeae-7d12-4a50-8d38-0368541b2956","block_type":"box","text":"The Fund is supported by a team of financial professionals who are responsible for investment research and","page_number":28,"box":{"x":101,"y":690,"width":774,"height":11}},{"id":"7a180e84-c235-40aa-847c-d8da58db40cc","block_type":"box","text":"selection. The lead members of this team are Cem Inal and David Zhao. Messrs. Inal and Zhao are jointly and","page_number":28,"box":{"x":69,"y":705,"width":782,"height":12}},{"id":"18a5f0cd-0be6-482e-8133-8e758d22baa3","block_type":"box","text":"primarily responsible for the day-to-day management of the Fund’s portfolio.","page_number":28,"box":{"x":70,"y":721,"width":537,"height":11}},{"id":"db195431-02bd-4d71-9476-5db75e6888ef","block_type":"box","text":"Other Funds and Accounts Managed","page_number":28,"box":{"x":70,"y":751,"width":265,"height":11}},{"id":"6fbf994e-ae3f-4a27-ad6e-593d57361592","block_type":"box","text":"The following table sets forth information about funds and accounts other than the Fund for which the Fund’s","page_number":28,"box":{"x":101,"y":773,"width":778,"height":12}},{"id":"a0c45385-5a18-495e-90c6-22107216d74a","block_type":"box","text":"portfolio managers are primarily responsible for the day-to-day portfolio management as of April 30, 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$0","page_number":29,"box":{"x":331,"y":128,"width":534,"height":8}},{"id":"58fbdde7-56fc-4650-8748-947b4e4da65f","block_type":"box","text":"David Zhao 14 11 7 0 0 1","page_number":29,"box":{"x":74,"y":141,"width":787,"height":7}},{"id":"fec74e5d-54a8-4f3f-9348-775ced6ed72a","block_type":"box","text":"$13.07 Billion $6.90 Billion $407.62 Million $0 $0 $53.36 Million","page_number":29,"box":{"x":327,"y":153,"width":572,"height":8}},{"id":"77dac606-8125-4948-963f-8013864af7f7","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":29,"box":{"x":69,"y":191,"width":304,"height":12}},{"id":"1d2e692d-27c5-45a4-ab4d-e6cf618a1fd4","block_type":"box","text":"The discussion below describes the compensation of Messrs. Inal and Zhao as of April 30, 2026 and the","page_number":29,"box":{"x":101,"y":214,"width":751,"height":11}},{"id":"e2b27a9c-2e0f-4296-868f-abcaca3dc7f4","block_type":"box","text":"compensation of Mr. Inal as of October 31, 2025.","page_number":29,"box":{"x":69,"y":229,"width":354,"height":11}},{"id":"2d76ddf5-ca91-40fa-8edc-364ffabbc42f","block_type":"box","text":"BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career","page_number":29,"box":{"x":102,"y":252,"width":774,"height":11}},{"id":"7a8621f5-6dec-4517-985f-5b29b396b819","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":29,"box":{"x":70,"y":267,"width":837,"height":11}},{"id":"a6c6d7bc-7a7e-438c-8f59-593ef8b57bde","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":29,"box":{"x":69,"y":282,"width":823,"height":11}},{"id":"d8bc4709-6968-45e9-8bc1-39307575b74a","block_type":"box","text":"compensation include a base salary, a performance-based discretionary bonus, participation in various benefits","page_number":29,"box":{"x":69,"y":297,"width":799,"height":11}},{"id":"f7f4733b-0b1d-4311-bb6a-24d2e31d6a81","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":29,"box":{"x":70,"y":312,"width":670,"height":12}},{"id":"e609a865-ba66-4ac7-8fef-86ccb7b8cfdc","block_type":"box","text":"Base Compensation.","page_number":29,"box":{"x":102,"y":335,"width":148,"height":11}},{"id":"39fef461-1305-472c-9e79-635569d44ccf","block_type":"box","text":"Generally, portfolio managers receive base compensation based on their position with the","page_number":29,"box":{"x":257,"y":335,"width":640,"height":11}},{"id":"610a7fc0-44b0-4df7-bd61-e08e36765f07","block_type":"box","text":"firm.","page_number":29,"box":{"x":68,"y":350,"width":32,"height":9}},{"id":"9a8b2edd-1482-4785-8ebf-cf1ce1f56a42","block_type":"box","text":"Discretionary Incentive Compensation","page_number":29,"box":{"x":69,"y":380,"width":277,"height":11}},{"id":"0e90f475-9371-403d-9fee-0796709c5fa0","block_type":"box","text":"Generally, discretionary incentive compensation for Fundamental Equities portfolio managers is based on a","page_number":29,"box":{"x":102,"y":403,"width":763,"height":11}},{"id":"35930ea1-efa6-4adf-a607-7897cc941bc7","block_type":"box","text":"formulaic compensation program. BlackRock’s formulaic portfolio manager compensation program is based on team","page_number":29,"box":{"x":68,"y":418,"width":832,"height":11}},{"id":"7ff51137-5533-439c-9eca-4ea56c6924ec","block_type":"box","text":"revenue and pre-tax investment performance relative to appropriate competitors or benchmarks over 3- and 5-year","page_number":29,"box":{"x":69,"y":433,"width":815,"height":11}},{"id":"e7d36b0c-ff6e-426b-b95e-21df08f5cf4f","block_type":"box","text":"performance periods, as applicable. In most cases, these benchmarks are the same as the benchmark or","page_number":29,"box":{"x":70,"y":448,"width":757,"height":11}},{"id":"6c9ab07f-6941-40f2-90ab-5e329b21507c","block_type":"box","text":"benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are","page_number":29,"box":{"x":69,"y":463,"width":814,"height":12}},{"id":"7833317a-3dbc-40f8-9fae-c45b84fbbd88","block_type":"box","text":"measured. BlackRock’s global compensation team determines the benchmarks or rankings against which the","page_number":29,"box":{"x":69,"y":479,"width":780,"height":11}},{"id":"35973c54-513f-420d-9a93-211fdc91366c","block_type":"box","text":"performance of the Fund and other accounts managed by the portfolio management team is compared and the","page_number":29,"box":{"x":70,"y":494,"width":791,"height":11}},{"id":"40007a82-5d1a-40c3-b47a-f4389220cb3a","block_type":"box","text":"period of time over which performance is evaluated. With respect to these portfolio managers such benchmarks for","page_number":29,"box":{"x":70,"y":509,"width":823,"height":11}},{"id":"034386f3-06e8-42ce-bc61-bc2dea578149","block_type":"box","text":"the Fund and other accounts are: FTSE United States in GBP; MSCI All Country (AC) Americas Index; Russell 1000","page_number":29,"box":{"x":68,"y":524,"width":815,"height":11}},{"id":"a01290e2-f670-4f29-bfb6-be8d40773a19","block_type":"box","text":"Index (GBP); Russell 1000 Index (Gross Total Return); Russell 1000 Value Index (Total Return); Russell 1000 Value","page_number":29,"box":{"x":70,"y":539,"width":818,"height":11}},{"id":"8943c5e3-e9d5-43d2-84c9-ace9320e15d7","block_type":"box","text":"Index TR in GBP; Russell 1000 Value TR Customized Index Performance Benchmark JPY; Russell 1000, expressed in","page_number":29,"box":{"x":70,"y":554,"width":833,"height":11}},{"id":"e8464b76-af1c-4291-a1c1-3ef009586634","block_type":"box","text":"EUR; Russell MidCap Value Index; S&P United States MidSmallCap Index; S&P US MidSmallCap Index (GBP).","page_number":29,"box":{"x":70,"y":569,"width":774,"height":11}},{"id":"9f5dd812-03a0-415a-a924-c2822fec67c4","block_type":"box","text":"A smaller element of portfolio manager discretionary compensation may include consideration of: financial","page_number":29,"box":{"x":101,"y":592,"width":759,"height":11}},{"id":"3f98361f-d5e8-41e3-8d50-9fac3042cedb","block_type":"box","text":"results, expense control, profit margins, strategic planning and implementation, quality of client service, market","page_number":29,"box":{"x":69,"y":607,"width":798,"height":11}},{"id":"ff95c655-f364-4297-9bca-54762c817c38","block_type":"box","text":"share, corporate reputation, capital allocation, compliance and risk control, leadership, technology and innovation.","page_number":29,"box":{"x":69,"y":623,"width":814,"height":11}},{"id":"c05b84f4-681f-479c-aad6-d3eab8cf3401","block_type":"box","text":"These factors are considered collectively by BlackRock management and the relevant Chief Investment Officers.","page_number":29,"box":{"x":68,"y":637,"width":798,"height":12}},{"id":"03106669-3f13-41f2-85ab-9c755831e1b6","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":29,"box":{"x":102,"y":660,"width":389,"height":11}},{"id":"faa73a0c-7f2c-4913-93f7-ae7d7c9b878d","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":29,"box":{"x":499,"y":660,"width":383,"height":11}},{"id":"6b00ed0d-a26d-4f7d-8ca5-98ec813f3850","block_type":"box","text":"portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":29,"box":{"x":70,"y":675,"width":815,"height":11}},{"id":"5de9c391-ae5c-4198-9511-37931aa0ce5a","block_type":"box","text":"that notionally track the return of certain BlackRock investment products.","page_number":29,"box":{"x":68,"y":690,"width":522,"height":11}},{"id":"c2c6a628-1807-4ec1-b8c8-764e1d32aed9","block_type":"box","text":"Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio","page_number":29,"box":{"x":102,"y":713,"width":760,"height":11}},{"id":"6e21dc78-c23c-4f87-89ae-4d4fa3e6ffa1","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":29,"box":{"x":69,"y":728,"width":795,"height":11}},{"id":"42239457-5d36-49cb-9ba4-f99de50a212e","block_type":"box","text":"awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive","page_number":29,"box":{"x":69,"y":743,"width":805,"height":12}},{"id":"d39e9cba-1474-48c0-bcde-a20d48b3dd47","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a","page_number":29,"box":{"x":69,"y":758,"width":822,"height":12}},{"id":"4e039056-4c67-4f44-b6ce-07e51f50c421","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some","page_number":29,"box":{"x":68,"y":773,"width":839,"height":12}},{"id":"95a4f46f-0a65-47ec-924b-ec2494b7233d","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term","page_number":29,"box":{"x":69,"y":789,"width":802,"height":11}},{"id":"af888087-c6d0-4faa-939d-63084e1609a4","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred","page_number":29,"box":{"x":70,"y":804,"width":820,"height":11}},{"id":"5fd71e13-d65f-465d-8c24-88e248d08503","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":29,"box":{"x":70,"y":819,"width":801,"height":11}},{"id":"b2c25279-2907-4fd3-9b64-ecde3f5000f5","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio","page_number":29,"box":{"x":70,"y":834,"width":831,"height":11}},{"id":"6b699a1a-f274-424a-966c-7ab7db825180","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":29,"box":{"x":69,"y":849,"width":479,"height":11}},{"id":"bd52abbd-26c7-4abe-b973-4f8934eb9195","block_type":"box","text":"For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the","page_number":29,"box":{"x":102,"y":872,"width":785,"height":11}},{"id":"7c37acba-a695-46ff-8e78-df3170be1b94","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":29,"box":{"x":68,"y":887,"width":836,"height":11}},{"id":"01796bf3-a5a4-43a5-ba11-583171a8504f","block_type":"box","text":"which provides direct alignment of portfolio manager discretionary incentive compensation with investment product","page_number":29,"box":{"x":68,"y":902,"width":821,"height":11}},{"id":"09d70499-f4f8-4542-982d-e9f6a811bb5b","block_type":"box","text":"I-19","page_number":29,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"5fab9fee-23a7-4c87-9547-2ddeea64e14f","block_type":"box","text":"NM1026U-5993100-29/236","page_number":29,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"2498fa4c-5f83-482d-ac42-5a13eca52c41","block_type":"box","text":"results. Deferred cash awards vest ratably over a number of years and, once vested, settle in the form of cash. Only","page_number":30,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"966ee272-334a-4b4c-8d39-6f9a6faad0cf","block_type":"box","text":"portfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":30,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"3f12a786-3413-4e7f-9375-3ebafcbfb4b3","block_type":"box","text":"eligible to participate in the deferred cash award program.","page_number":30,"box":{"x":69,"y":75,"width":414,"height":11}},{"id":"a0bc3993-a43c-42ff-97a9-d3f579a5b0d0","block_type":"box","text":"Other Compensation Benefits.","page_number":30,"box":{"x":101,"y":98,"width":218,"height":11}},{"id":"f8d76205-af91-40f3-9065-01179a1eddb7","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":30,"box":{"x":327,"y":98,"width":552,"height":11}},{"id":"7503830c-7eb4-4e51-9774-a868d537ecd1","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":30,"box":{"x":69,"y":113,"width":582,"height":11}},{"id":"ee0dedf6-a5b4-4d33-a6f9-a3eb836e080c","block_type":"box","text":"Incentive Savings Plans","page_number":30,"box":{"x":102,"y":135,"width":167,"height":12}},{"id":"e22b6742-4027-4249-ba1b-72cfd554a430","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":30,"box":{"x":274,"y":135,"width":614,"height":12}},{"id":"529f42e3-3599-4ebc-89cf-cc5f9d9f3825","block_type":"box","text":"employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":30,"box":{"x":69,"y":151,"width":831,"height":11}},{"id":"8dd5f312-bd1a-4ae6-a41b-b7071f1f88c0","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":30,"box":{"x":70,"y":166,"width":785,"height":11}},{"id":"82a9942e-d689-4f51-8342-7a6d0259f12f","block_type":"box","text":"company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a","page_number":30,"box":{"x":69,"y":180,"width":830,"height":12}},{"id":"fa86e1b1-b5e1-4451-8b3b-3ed784f0e701","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":30,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"cd003541-8c0b-4ff8-9de6-c511ca75343c","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":30,"box":{"x":69,"y":210,"width":831,"height":12}},{"id":"28760600-ac25-4127-b2ae-3980b90e3520","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":30,"box":{"x":69,"y":226,"width":798,"height":11}},{"id":"9db5cad9-c653-42db-96cb-ab05980c63f0","block_type":"box","text":"participants for their own contributions or, absent participant investment direction, are invested into a target date","page_number":30,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"bbe81117-ed8e-4cf5-8edd-f845bb7844dd","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for","page_number":30,"box":{"x":68,"y":256,"width":793,"height":12}},{"id":"d0084043-dc7b-49d6-9257-f669eee23317","block_type":"box","text":"investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date.","page_number":30,"box":{"x":70,"y":271,"width":832,"height":11}},{"id":"bdbfc7ec-ec35-46eb-b2c0-a986e311567e","block_type":"box","text":"Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":30,"box":{"x":68,"y":286,"width":805,"height":11}},{"id":"a03c5565-822f-4ee1-9b46-4cf513810b76","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":30,"box":{"x":69,"y":301,"width":808,"height":12}},{"id":"0f9497c2-cc67-4743-9fa0-dfbbcf203291","block_type":"box","text":"participate in these plans.","page_number":30,"box":{"x":70,"y":317,"width":185,"height":11}},{"id":"2427f137-3895-4e8c-a95f-b57bceccb132","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":30,"box":{"x":69,"y":347,"width":268,"height":11}},{"id":"1d9b8b87-9c63-4ccf-bb4d-c448dfa0f198","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":30,"box":{"x":101,"y":370,"width":733,"height":11}},{"id":"19694db8-e515-477f-b89f-663f233bdcc8","block_type":"box","text":"beneficially owned by the portfolio managers in the Fund is shown below:","page_number":30,"box":{"x":69,"y":385,"width":519,"height":11}},{"id":"4c1ca28c-bd06-488d-b5c5-148b9502ec35","block_type":"box","text":"Portfolio Manager","page_number":30,"box":{"x":69,"y":423,"width":105,"height":9}},{"id":"db348099-24f7-4b16-ac92-866fe37b6d28","block_type":"box","text":"Dollar Range of Equity","page_number":30,"box":{"x":758,"y":413,"width":129,"height":9}},{"id":"c2194602-e7aa-4766-ab24-bcfee284cfd3","block_type":"box","text":"Securities Beneficially Owned","page_number":30,"box":{"x":735,"y":423,"width":173,"height":9}},{"id":"7b7e6b91-d2d4-4c30-a163-d1b37bd027c8","block_type":"box","text":"Cem Inal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":30,"box":{"x":69,"y":441,"width":635,"height":9}},{"id":"d52f5f90-6e66-40bd-9332-6634c41d6ae7","block_type":"box","text":"$500,001 - $1,000,000","page_number":30,"box":{"x":736,"y":440,"width":173,"height":11}},{"id":"2d58a8c8-1b9b-4c3e-8771-8418a24e24a9","block_type":"box","text":"David Zhao . . .","page_number":30,"box":{"x":70,"y":456,"width":104,"height":9}},{"id":"c57f42e9-f860-43e4-9b34-5ead6bf9c216","block_type":"box","text":".................................................................","page_number":30,"box":{"x":180,"y":463,"width":524,"height":2}},{"id":"6e48b1d5-c590-4f31-a10e-aa84766d9512","block_type":"box","text":"$100,001 - $500,000","page_number":30,"box":{"x":743,"y":455,"width":159,"height":11}},{"id":"83e6827c-4e29-4742-b24c-15ea2b2cd2fc","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":30,"box":{"x":69,"y":487,"width":403,"height":12}},{"id":"2791f6f8-bad5-4b0e-9c59-5329d09f619d","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":30,"box":{"x":102,"y":510,"width":727,"height":11}},{"id":"d40d0c49-9acd-4cd8-8a0e-899fe724ba06","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":30,"box":{"x":70,"y":525,"width":814,"height":12}},{"id":"9166e690-c5e7-48b9-ab30-e60d43595cf0","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of","page_number":30,"box":{"x":70,"y":540,"width":837,"height":11}},{"id":"5a25c686-4f98-4e46-a71c-fb2a5e292647","block_type":"box","text":"portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":30,"box":{"x":70,"y":555,"width":810,"height":12}},{"id":"20c659a6-a71d-4a41-9c23-313bbadab19f","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment","page_number":30,"box":{"x":69,"y":571,"width":782,"height":11}},{"id":"75f8cdaa-c9b9-4fcf-870e-4361bb2bb5b4","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":30,"box":{"x":69,"y":586,"width":830,"height":11}},{"id":"2b299d7f-f8be-4aab-806b-f1effe3beb36","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":30,"box":{"x":69,"y":601,"width":828,"height":11}},{"id":"4c5af26d-4c8d-4804-b0cb-624e3501e34a","block_type":"box","text":"funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest","page_number":30,"box":{"x":68,"y":616,"width":834,"height":11}},{"id":"a47e4f26-87b4-43c9-adb0-bb266b097661","block_type":"box","text":"in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition,","page_number":30,"box":{"x":70,"y":631,"width":777,"height":11}},{"id":"fe68989d-2cbd-4aea-a4fc-605807ab97c8","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":30,"box":{"x":70,"y":646,"width":821,"height":11}},{"id":"6d1b9314-1d3b-4d57-8e46-7d9666c05071","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":30,"box":{"x":69,"y":662,"width":819,"height":10}},{"id":"36bd59c2-eed7-4394-804e-2c21c56e3c0e","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":30,"box":{"x":69,"y":676,"width":832,"height":12}},{"id":"56b75e3e-adaa-46b3-9c25-f35779ab92df","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":30,"box":{"x":68,"y":692,"width":804,"height":11}},{"id":"32b6b620-9dc3-423d-9445-42ce54ad9cfb","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":30,"box":{"x":69,"y":707,"width":760,"height":11}},{"id":"79ef93d4-370e-4773-9faa-c5311375f93a","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":30,"box":{"x":69,"y":722,"width":834,"height":11}},{"id":"d6678381-aaaf-4582-a3c5-0f1d5a335d40","block_type":"box","text":"are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the","page_number":30,"box":{"x":69,"y":737,"width":836,"height":11}},{"id":"37edd4d1-c3d2-479c-8551-89d6f6c2b90e","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":30,"box":{"x":69,"y":752,"width":822,"height":11}},{"id":"66b11ebd-1d2b-411b-a840-e14dab4df69d","block_type":"box","text":"public information. Certain portfolio managers also may manage accounts whose investment strategies may at times","page_number":30,"box":{"x":70,"y":767,"width":835,"height":11}},{"id":"ec235125-b1a8-4e6a-a843-e58f5d0b86c9","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that a portfolio manager may be managing","page_number":30,"box":{"x":69,"y":782,"width":820,"height":12}},{"id":"176d1eb9-61ad-41be-9c60-d2945141d54a","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":30,"box":{"x":69,"y":797,"width":811,"height":12}},{"id":"1e9dc46a-ed2b-4449-bc65-c2aa49912362","block_type":"box","text":"subject to incentive fees. Such portfolio managers may therefore be entitled to receive a portion of any incentive fees","page_number":30,"box":{"x":69,"y":812,"width":839,"height":12}},{"id":"db59f11b-ffac-4bd9-a4bb-d9400333c182","block_type":"box","text":"earned on such accounts. Currently, the portfolio managers of this Fund are not entitled to receive a portion of","page_number":30,"box":{"x":69,"y":828,"width":791,"height":11}},{"id":"32d30f24-74ea-4cd7-8dc9-dfb6b5e226ed","block_type":"box","text":"incentive fees of other accounts.","page_number":30,"box":{"x":70,"y":843,"width":231,"height":9}},{"id":"9e24f744-9ff6-4de0-8946-0dc6e7d7bb57","block_type":"box","text":"As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock","page_number":30,"box":{"x":101,"y":865,"width":788,"height":12}},{"id":"66ce5017-6c6f-490f-99f1-382d389cb57a","block_type":"box","text":"purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its","page_number":30,"box":{"x":70,"y":881,"width":839,"height":11}},{"id":"47988526-4d3a-4579-9b72-c66ca2b49169","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":30,"box":{"x":68,"y":896,"width":823,"height":11}},{"id":"08b6574e-aa07-439e-b56d-8af1955fbba4","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":30,"box":{"x":68,"y":911,"width":812,"height":11}},{"id":"3bb22f63-0f87-49c1-9601-83978afc9e79","block_type":"box","text":"I-20","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"222d396b-98af-4949-894f-36b371abad3a","block_type":"box","text":"NM1026U-5993100-30/236","page_number":30,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"dbf150d4-ce12-4615-a14c-d363acdba212","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":31,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"9d15c9e8-fbe5-42bf-854d-01990ecc5f2f","block_type":"box","text":"investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.","page_number":31,"box":{"x":70,"y":60,"width":826,"height":11}},{"id":"38439c42-d523-4690-b117-7a6b4a1e1fe4","block_type":"box","text":"Accounting Services","page_number":31,"box":{"x":68,"y":90,"width":150,"height":11}},{"id":"cdbc47af-6c53-4d29-98de-77042d10bc59","block_type":"box","text":"State Street serves as the accounting services provider for the Fund. State Street maintains the books of","page_number":31,"box":{"x":102,"y":113,"width":754,"height":11}},{"id":"4b0a2950-0b99-4365-b3c6-1bc3e7b83402","block_type":"box","text":"account and other financial records; records general ledger entries; calculates daily net income; reconciles activity to","page_number":31,"box":{"x":69,"y":128,"width":833,"height":11}},{"id":"fdc1480b-b63e-42b5-87d2-12086fd4f433","block_type":"box","text":"the trial balance; calculates and publishes daily net asset value; prepares account balances; and provides such other","page_number":31,"box":{"x":68,"y":143,"width":840,"height":11}},{"id":"1ed6bf15-424f-4047-805e-87d37891b2f6","block_type":"box","text":"accounting services as may be required. In connection with its accounting services, State Street also provides","page_number":31,"box":{"x":69,"y":158,"width":788,"height":11}},{"id":"5d8809c7-7cd9-477a-ac6b-c4faf883367f","block_type":"box","text":"certain administration services.","page_number":31,"box":{"x":69,"y":173,"width":225,"height":9}},{"id":"324d15bd-1982-4035-94c2-d34a645eb67e","block_type":"box","text":"The table below shows the amounts paid by the Fund to State Street and the Manager for accounting services","page_number":31,"box":{"x":101,"y":196,"width":786,"height":11}},{"id":"94bb171f-04d1-454b-aaec-9709826a8dd3","block_type":"box","text":"for the periods shown:","page_number":31,"box":{"x":68,"y":211,"width":159,"height":11}},{"id":"41b8d5b7-149c-4a6f-a862-b9fdcdd4f121","block_type":"box","text":"Fees Paid to","page_number":31,"box":{"x":726,"y":239,"width":72,"height":7}},{"id":"01c6227c-9a75-4dab-9065-5b2af081adae","block_type":"box","text":"State Street","page_number":31,"box":{"x":726,"y":249,"width":72,"height":7}},{"id":"c88efc48-b873-4cdb-a74a-3c14789953b2","block_type":"box","text":"Fees Paid to","page_number":31,"box":{"x":837,"y":239,"width":72,"height":7}},{"id":"404420b1-ef15-499b-9697-952f20e21111","block_type":"box","text":"the Manager","page_number":31,"box":{"x":835,"y":249,"width":74,"height":9}},{"id":"b5eeacef-fef1-4ada-9c92-183808354593","block_type":"box","text":"Fiscal Year Ended April 30, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":267,"width":446,"height":11}},{"id":"1dd1f2d4-ae81-4d89-bb5a-1379b967223c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . $1,","page_number":31,"box":{"x":522,"y":266,"width":219,"height":11}},{"id":"5f0925a2-28ea-41e6-beaa-6c037312d0be","block_type":"box","text":"465,380 $0","page_number":31,"box":{"x":743,"y":266,"width":139,"height":11}},{"id":"917d18e2-1f21-4472-b2f0-b376e6c76e70","block_type":"box","text":"Fiscal Year Ended April 30, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":282,"width":446,"height":11}},{"id":"d5462b9a-ce3f-444b-bca9-7a42e2542776","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . $1,","page_number":31,"box":{"x":522,"y":281,"width":219,"height":12}},{"id":"f5c505bf-1ac8-4951-859c-a98671ec283a","block_type":"box","text":"537,062 $0","page_number":31,"box":{"x":743,"y":281,"width":139,"height":12}},{"id":"7594c44b-178e-4454-9dc0-ba5b7f458e6e","block_type":"box","text":"Fiscal Year Ended April 30, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":297,"width":446,"height":11}},{"id":"12242b73-8caa-4f2c-afed-2c4f9e5b5346","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . $1,","page_number":31,"box":{"x":522,"y":297,"width":219,"height":11}},{"id":"0ff78095-a364-4529-b52b-a3cc785228f4","block_type":"box","text":"431,511 $0","page_number":31,"box":{"x":743,"y":297,"width":139,"height":11}},{"id":"cef36e25-57f7-4f07-ba0c-406981dac7a8","block_type":"box","text":"Custodian Services","page_number":31,"box":{"x":69,"y":329,"width":139,"height":9}},{"id":"49bb7757-af5d-48c1-9bf6-2670f2933284","block_type":"box","text":"State Street Bank and Trust Company (“State Street”), has been retained to act as custodian for the Fund and is","page_number":31,"box":{"x":102,"y":351,"width":805,"height":12}},{"id":"3d39aa10-e955-486c-ab63-5b1e8060f6bf","block_type":"box","text":"located at One Congress Street, Suite 1, Boston, Massachusetts 02114-2016. The custodian, among other things,","page_number":31,"box":{"x":70,"y":367,"width":821,"height":11}},{"id":"cdd02723-74b9-41b9-aa23-3c9518d85080","block_type":"box","text":"maintains a custody account or accounts in the name of the Fund, receives and delivers all assets for the Fund upon","page_number":31,"box":{"x":69,"y":382,"width":832,"height":11}},{"id":"e4cdd8eb-8fd9-4844-baf2-9057efdf57a5","block_type":"box","text":"purchase and upon sale or maturity, and collects and receives all income and other payments and distributions on","page_number":31,"box":{"x":70,"y":397,"width":813,"height":11}},{"id":"329e37d2-2c81-429f-ac27-67a4d4528bd8","block_type":"box","text":"account of the assets of the Fund.","page_number":31,"box":{"x":69,"y":412,"width":244,"height":9}},{"id":"6efed37f-0e78-406d-a7e4-4306eff51b35","block_type":"box","text":"Transfer Agency and Shareholders’ Administrative Services","page_number":31,"box":{"x":68,"y":442,"width":432,"height":11}},{"id":"7973c446-3841-42e0-9b9e-06abc454b21d","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”), which has its principal place of business at 118","page_number":31,"box":{"x":102,"y":465,"width":765,"height":11}},{"id":"eafb7df9-b6c7-47ca-8bd0-92b09e46018a","block_type":"box","text":"Flanders Road Westborough, Massachusetts 01581, serves as the transfer and dividend disbursement agent for the","page_number":31,"box":{"x":70,"y":480,"width":833,"height":11}},{"id":"89a1acd7-0d88-496d-a87f-2ea789773be8","block_type":"box","text":"Fund.","page_number":31,"box":{"x":70,"y":495,"width":36,"height":9}},{"id":"c38a5eed-4d29-4bde-bafe-4c5e851c23c6","block_type":"box","text":"In addition, pursuant to a Shareholders’ Administrative Services Agreement, the Manager provides certain","page_number":31,"box":{"x":102,"y":518,"width":756,"height":11}},{"id":"6ba8323d-f4a8-4c5f-b883-9d01ae6961ba","block_type":"box","text":"shareholder liaison services in connection with the Fund’s investor service center. The Fund reimburses the Manager","page_number":31,"box":{"x":69,"y":533,"width":835,"height":11}},{"id":"c8cd33bb-6d14-48e4-a846-d965451a3ec8","block_type":"box","text":"for its costs in maintaining the service center, which costs include, among other things, employee salaries, leasehold","page_number":31,"box":{"x":68,"y":548,"width":838,"height":11}},{"id":"c3c89b9c-e0f7-4b8d-b326-120a24c0f954","block_type":"box","text":"expenses, and other out-of-pocket expenses.","page_number":31,"box":{"x":69,"y":563,"width":318,"height":11}},{"id":"ef3820f5-37aa-4bd1-b622-3000c3cf63ad","block_type":"box","text":"Set forth below are the amounts the Fund reimbursed BlackRock pursuant to such agreement in the amounts","page_number":31,"box":{"x":102,"y":586,"width":780,"height":11}},{"id":"1ec3c1cd-d1ca-415b-bdb0-ca5766e513b0","block_type":"box","text":"set forth below:","page_number":31,"box":{"x":69,"y":601,"width":110,"height":9}},{"id":"2e55c202-1dab-4c5d-b536-ea1ce427fcba","block_type":"box","text":"Fees Paid to the Manager Fees Waived by the Manager","page_number":31,"box":{"x":561,"y":629,"width":348,"height":9}},{"id":"c3170e28-4d93-4aa9-b875-79a41f2cd1bd","block_type":"box","text":"Fiscal Year Ended April 30, 2026","page_number":31,"box":{"x":70,"y":647,"width":232,"height":11}},{"id":"3b54aace-4419-46d0-a20d-e4b8327f50a0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 89,963 $1,559","page_number":31,"box":{"x":307,"y":646,"width":544,"height":11}},{"id":"1521054a-3061-49ed-9405-8bfd1a6480e1","block_type":"box","text":"Fiscal Year Ended April 30, 2025","page_number":31,"box":{"x":70,"y":662,"width":232,"height":11}},{"id":"0e985eec-ed64-4105-9889-982da5533f1e","block_type":"box","text":"............................","page_number":31,"box":{"x":307,"y":669,"width":222,"height":2}},{"id":"d43ca26f-c283-4708-9b2a-41e1fb472cd3","block_type":"box","text":"$160,342 $4,124","page_number":31,"box":{"x":600,"y":661,"width":251,"height":11}},{"id":"391bfd14-f74a-44fe-bbbb-569e8e382250","block_type":"box","text":"Fiscal Year Ended April 30, 2024","page_number":31,"box":{"x":70,"y":677,"width":232,"height":11}},{"id":"f72a7857-517e-4218-9b85-673c59c75a49","block_type":"box","text":"............................","page_number":31,"box":{"x":307,"y":685,"width":222,"height":1}},{"id":"95833e1c-628c-4645-a6b8-a20d442cda2d","block_type":"box","text":"$150,717 $ 0","page_number":31,"box":{"x":600,"y":676,"width":251,"height":12}},{"id":"cfae9340-4b01-40e1-b94e-5da4b055a17d","block_type":"box","text":"Credit Agreement","page_number":31,"box":{"x":69,"y":709,"width":129,"height":11}},{"id":"4ac56945-6d1e-4c60-af9b-7f90d9f70ac5","block_type":"box","text":"The Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”),","page_number":31,"box":{"x":101,"y":731,"width":765,"height":12}},{"id":"1392a73a-4097-41f8-bb9a-ea113ac6210e","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":31,"box":{"x":70,"y":746,"width":748,"height":12}},{"id":"216f7fe5-b18f-4e1d-ae95-63986a33c01b","block_type":"box","text":"April 8, 2027 unless otherwise extended or renewed (the “Credit Agreement”). Excluding commitments designated","page_number":31,"box":{"x":68,"y":762,"width":818,"height":11}},{"id":"8d0e2319-d082-47cf-8aa6-3475a98ac1b0","block_type":"box","text":"for certain Participating Funds, the Participating Funds, including the Fund, can borrow up to an aggregate","page_number":31,"box":{"x":68,"y":777,"width":757,"height":11}},{"id":"80282c50-3dc8-466f-9360-22cddcd2edb3","block_type":"box","text":"commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as","page_number":31,"box":{"x":69,"y":791,"width":801,"height":12}},{"id":"b21b49f1-2ce8-4a4b-a991-f000306e8179","block_type":"box","text":"specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet shareholder","page_number":31,"box":{"x":69,"y":807,"width":751,"height":11}},{"id":"a7e5e4f0-74e7-4328-b7d9-5fd0e89828ac","block_type":"box","text":"redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit Agreement for","page_number":31,"box":{"x":69,"y":822,"width":784,"height":11}},{"id":"6a90be36-4a36-49c7-aa7c-b0a8499462a9","block_type":"box","text":"leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectuses and SAI, subject","page_number":31,"box":{"x":70,"y":837,"width":839,"height":11}},{"id":"c4865ba3-5c54-491a-9454-4e658735b66a","block_type":"box","text":"to various other legal, regulatory or contractual limits. Borrowing results in interest expense and other fees and","page_number":31,"box":{"x":68,"y":852,"width":794,"height":11}},{"id":"e41fc736-f1e7-45e7-bb86-f5cebc0fc6cd","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":31,"box":{"x":69,"y":867,"width":809,"height":12}},{"id":"52ca4de5-3152-4529-aca4-0e4882771367","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":31,"box":{"x":69,"y":882,"width":814,"height":12}},{"id":"6b0a6034-a16c-4d30-a217-20ae40d2c293","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":31,"box":{"x":69,"y":898,"width":800,"height":11}},{"id":"b3127380-7993-413b-bfe7-3ee41eb890f2","block_type":"box","text":"interest at a variable rate.","page_number":31,"box":{"x":70,"y":913,"width":182,"height":9}},{"id":"a56673e6-9941-449f-9016-ecd0fa5d02c1","block_type":"box","text":"I-21","page_number":31,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"31dbb1c0-87e2-405a-90f7-0c6c51ad44d6","block_type":"box","text":"NM1026U-5993100-31/236","page_number":31,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"58919b12-52cd-4680-be7c-f9219261d5d7","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":32,"box":{"x":68,"y":45,"width":491,"height":11}},{"id":"8822820d-6a00-4582-b5ca-fd5d019708d2","block_type":"box","text":"Set forth below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":32,"box":{"x":102,"y":67,"width":773,"height":12}},{"id":"b4576d04-fede-4ca3-bda1-f0b3486895b7","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of the Manager (“Affiliates”) for the fiscal year ended.","page_number":32,"box":{"x":69,"y":82,"width":823,"height":12}},{"id":"841d65cd-34ef-4ee1-9067-8aacf3e40b89","block_type":"box","text":"BlackRock Investments, LLC (“BRIL” or the “Distributor”), an affiliate of the Manager, acts as the Fund’s sole","page_number":32,"box":{"x":70,"y":98,"width":779,"height":11}},{"id":"a4b61392-8e88-46ab-8ae7-e32f7681689f","block_type":"box","text":"distributor.","page_number":32,"box":{"x":69,"y":113,"width":74,"height":9}},{"id":"502e49d3-287b-4fe5-a5fd-8b2e80452bb6","block_type":"box","text":"Investor A Shares","page_number":32,"box":{"x":645,"y":141,"width":102,"height":7}},{"id":"1b3098e6-d375-45e0-9c9b-a4003b39b65d","block_type":"box","text":"Gross Sales","page_number":32,"box":{"x":485,"y":167,"width":68,"height":7}},{"id":"e574e9c0-b8ef-4b48-87d1-f9447a3af95c","block_type":"box","text":"Charges","page_number":32,"box":{"x":496,"y":177,"width":47,"height":9}},{"id":"bd095da0-a618-4ff0-ac8b-6ca07b33bcb0","block_type":"box","text":"Collected","page_number":32,"box":{"x":492,"y":187,"width":54,"height":7}},{"id":"41db4539-4985-4ab4-bce4-0e005c076d4d","block_type":"box","text":"Sales Charges","page_number":32,"box":{"x":585,"y":167,"width":84,"height":9}},{"id":"a137b0fc-03e4-4e6e-8582-c2c6821b4470","block_type":"box","text":"Retained","page_number":32,"box":{"x":602,"y":177,"width":51,"height":7}},{"id":"e9322961-b73f-4723-9d3f-021f6de78522","block_type":"box","text":"by BRIL","page_number":32,"box":{"x":606,"y":187,"width":44,"height":9}},{"id":"9464d5fd-abf7-47a7-af1e-22fa554f7242","block_type":"box","text":"Sales Charges","page_number":32,"box":{"x":699,"y":167,"width":83,"height":9}},{"id":"fc9b1fa9-8e23-4c21-aaf6-f32e942ee48c","block_type":"box","text":"Paid to","page_number":32,"box":{"x":721,"y":177,"width":40,"height":7}},{"id":"0b39f309-0f56-46e6-9b7b-aed230012d15","block_type":"box","text":"Affiliates","page_number":32,"box":{"x":715,"y":187,"width":51,"height":7}},{"id":"35ff0be7-ee3e-45c0-b66f-aba6b479f678","block_type":"box","text":"CDSCs Received","page_number":32,"box":{"x":812,"y":157,"width":97,"height":7}},{"id":"9176b363-1025-4f52-8fe7-81d4f9623b82","block_type":"box","text":"on Redemption","page_number":32,"box":{"x":817,"y":167,"width":87,"height":9}},{"id":"518e818e-0fb4-4c38-8efc-afcf5e749fe3","block_type":"box","text":"of Load-Waived","page_number":32,"box":{"x":817,"y":177,"width":87,"height":7}},{"id":"055f7d08-c85b-47f3-954a-1de367009bca","block_type":"box","text":"Shares","page_number":32,"box":{"x":841,"y":187,"width":39,"height":7}},{"id":"e1bbf0df-6719-4b16-adfc-9a5ec82e7a5e","block_type":"box","text":"Fiscal Year Ended April 30, 2026 . . . . . . . . . . . . . . . . . . $925,398 $71,800 $71,800 $13,046","page_number":32,"box":{"x":70,"y":204,"width":822,"height":12}},{"id":"a399a93c-654c-484c-ab82-3ce417fe367e","block_type":"box","text":"Fiscal Year Ended April 30, 2025 . . . . . . . . . . . . . . . . . . $986,604 $78,165 $78,165 $16,120","page_number":32,"box":{"x":70,"y":219,"width":822,"height":12}},{"id":"2508fbc1-9e0a-4b5e-8c3f-7c0cc5988439","block_type":"box","text":"Fiscal Year Ended April 30, 2024 . . . . . . . . . . . . . . . . . . $992,200 $71,743 $71,743 $35,351","page_number":32,"box":{"x":70,"y":234,"width":822,"height":12}},{"id":"287c7def-7d32-4177-a29e-90e8050a7f88","block_type":"box","text":"Investor C Shares","page_number":32,"box":{"x":780,"y":264,"width":103,"height":8}},{"id":"4ca2852f-a100-4b69-a33b-4c3456c04765","block_type":"box","text":"CDSCs","page_number":32,"box":{"x":765,"y":280,"width":39,"height":7}},{"id":"c4a8c9da-19ce-4bb1-9000-7078f4c47088","block_type":"box","text":"Received","page_number":32,"box":{"x":759,"y":290,"width":52,"height":7}},{"id":"632a8949-5734-4cd3-9df0-a3470ab3fafe","block_type":"box","text":"by BRIL","page_number":32,"box":{"x":763,"y":300,"width":44,"height":9}},{"id":"bcd150a7-40a1-4c4a-b5de-4c67f69bb695","block_type":"box","text":"CDSCs","page_number":32,"box":{"x":858,"y":280,"width":39,"height":7}},{"id":"069f0dd6-3cbd-4ad7-9fee-1c87e3f17e8f","block_type":"box","text":"Paid to","page_number":32,"box":{"x":858,"y":290,"width":40,"height":7}},{"id":"a73daf2c-ad2b-4245-91ea-335db1b6da55","block_type":"box","text":"Affiliates","page_number":32,"box":{"x":852,"y":300,"width":52,"height":7}},{"id":"7a5870a5-2b95-46e7-82e1-a8d5574beb6a","block_type":"box","text":"Fiscal Year Ended April 30, 2026.","page_number":32,"box":{"x":70,"y":318,"width":237,"height":11}},{"id":"4ad155da-1886-4364-b2f8-4e2020b36c31","block_type":"box","text":"...................................................","page_number":32,"box":{"x":313,"y":325,"width":409,"height":2}},{"id":"27ada451-ab9e-4902-8cc1-8b3f0d906c44","block_type":"box","text":"$11,946 $11,946","page_number":32,"box":{"x":754,"y":317,"width":155,"height":12}},{"id":"866237e8-5165-4e2f-a9eb-760e92b87183","block_type":"box","text":"Fiscal Year Ended April 30, 2025.","page_number":32,"box":{"x":70,"y":333,"width":237,"height":11}},{"id":"9b098cac-2ca8-431d-b5f8-cc34abeb0ec7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,706 $ 9,706","page_number":32,"box":{"x":313,"y":332,"width":596,"height":12}},{"id":"52173ea5-a3e2-41c7-9e2a-233fd4bad4fc","block_type":"box","text":"Fiscal Year Ended April 30, 2024.","page_number":32,"box":{"x":70,"y":348,"width":237,"height":11}},{"id":"a96fc872-c36f-4501-9cff-3b7860b700d9","block_type":"box","text":"...................................................","page_number":32,"box":{"x":313,"y":356,"width":409,"height":1}},{"id":"461c2c2c-c4b5-4a99-821f-f686395f1df7","block_type":"box","text":"$11,073 $11,073","page_number":32,"box":{"x":754,"y":348,"width":155,"height":11}},{"id":"625832ee-3cc3-4794-8c81-bb880eb6268d","block_type":"box","text":"The table below provides information for the fiscal year ended April 30, 2026 about the 12b-1 fees the Fund paid","page_number":32,"box":{"x":101,"y":372,"width":807,"height":11}},{"id":"e0f0cab5-7da1-4f46-a1db-9eb4c68dea35","block_type":"box","text":"to BRIL under the Fund’s 12b-1 plans. A portion of the fees collected by BRIL were paid to affiliates for providing","page_number":32,"box":{"x":68,"y":387,"width":804,"height":12}},{"id":"cd0d7673-6941-44b5-b4be-41a925c516c1","block_type":"box","text":"shareholder servicing activities for Investor A Shares and Service Shares and for providing shareholder servicing and","page_number":32,"box":{"x":69,"y":402,"width":833,"height":12}},{"id":"d687a46f-39ba-491b-962d-2bac040ddbc3","block_type":"box","text":"distribution-related activities and services for Investor C and Class R Shares.","page_number":32,"box":{"x":69,"y":418,"width":547,"height":9}},{"id":"3326ec8a-3709-48e1-b42e-5a5059a8a07f","block_type":"box","text":"Class","page_number":32,"box":{"x":69,"y":456,"width":31,"height":7}},{"id":"496cee5e-cc81-4fa8-9d34-059ee7ad7fb4","block_type":"box","text":"Fees Paid to BRIL","page_number":32,"box":{"x":806,"y":446,"width":103,"height":7}},{"id":"72c75742-8aed-420f-8dac-00c0fb284795","block_type":"box","text":"Investor A Shares .","page_number":32,"box":{"x":70,"y":474,"width":134,"height":9}},{"id":"944a4a02-24d9-4ed8-938c-ee7e463ec515","block_type":"box","text":"......................................................................","page_number":32,"box":{"x":210,"y":481,"width":564,"height":1}},{"id":"6e1bf721-82bd-45a5-8bce-c6d32f6726b9","block_type":"box","text":"$11,698,302","page_number":32,"box":{"x":809,"y":473,"width":96,"height":11}},{"id":"133c4270-c1df-425d-971d-8c569660862c","block_type":"box","text":"Investor C Shares . . .","page_number":32,"box":{"x":70,"y":489,"width":150,"height":9}},{"id":"ffc4edea-d43c-47db-a271-7bf25b86c912","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,","page_number":32,"box":{"x":226,"y":488,"width":615,"height":11}},{"id":"5ef7d0ef-86a4-4fad-815a-53e26aa49519","block_type":"box","text":"968,939","page_number":32,"box":{"x":843,"y":489,"width":62,"height":10}},{"id":"bfe93bdd-8bfe-4a90-890d-a9052e591045","block_type":"box","text":"Class R Shares","page_number":32,"box":{"x":69,"y":504,"width":109,"height":9}},{"id":"161facd1-7f30-4993-8220-ee30e9947c9c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,","page_number":32,"box":{"x":185,"y":503,"width":656,"height":11}},{"id":"639352b6-4d68-4e9f-a88c-ef3cb975bb8e","block_type":"box","text":"961,006","page_number":32,"box":{"x":843,"y":504,"width":62,"height":10}},{"id":"2c31aaf7-341b-451f-875b-d2cedc8612e1","block_type":"box","text":"Service Shares . .","page_number":32,"box":{"x":69,"y":519,"width":126,"height":9}},{"id":"90237777-8781-438f-b2e6-a62410338f18","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 81,081","page_number":32,"box":{"x":202,"y":518,"width":703,"height":11}},{"id":"2b6608c7-fd86-4474-bf17-d99538418c42","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":32,"box":{"x":68,"y":551,"width":318,"height":11}},{"id":"7178568a-6cf5-4da7-831c-586322332c88","block_type":"box","text":"An illustration of the computation of the public offering price of the Investor A Shares of the Fund, based on the","page_number":32,"box":{"x":101,"y":573,"width":795,"height":11}},{"id":"74b7ce2f-9b07-4a51-bd02-c10e46c6f729","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":32,"box":{"x":68,"y":588,"width":831,"height":12}},{"id":"fadf8790-2d77-4912-b93a-24b0f7a7cf3e","block_type":"box","text":"follows:","page_number":32,"box":{"x":68,"y":603,"width":53,"height":9}},{"id":"ac1c4573-41bc-4eb0-aeb1-345605307018","block_type":"box","text":"Investor A Shares","page_number":32,"box":{"x":798,"y":632,"width":102,"height":7}},{"id":"ebddc668-65b1-41d2-93c0-d6ef5586e187","block_type":"box","text":"Net Assets . . .","page_number":32,"box":{"x":70,"y":650,"width":100,"height":8}},{"id":"169045d3-802c-4229-931d-b74a455f6d27","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,886,","page_number":32,"box":{"x":176,"y":649,"width":669,"height":11}},{"id":"102ccc57-2672-45c0-84ad-564a9cb2f227","block_type":"box","text":"355,029","page_number":32,"box":{"x":847,"y":649,"width":62,"height":11}},{"id":"f3d45f6b-73c3-4715-bfc8-e9b91df25cf5","block_type":"box","text":"Number of Shares Outstanding . . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":664,"width":320,"height":12}},{"id":"a237ad50-6f3a-4883-a1be-9ccf9b0a9ef0","block_type":"box","text":".............................................","page_number":32,"box":{"x":396,"y":672,"width":361,"height":1}},{"id":"cd425e22-6567-4a88-a659-bf7185df0089","block_type":"box","text":"221,431,918","page_number":32,"box":{"x":813,"y":665,"width":96,"height":10}},{"id":"867205e0-b199-49e0-aa1e-bfa617861305","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":32,"box":{"x":70,"y":680,"width":571,"height":11}},{"id":"317318fc-afad-4ab9-a482-f4822e0a7823","block_type":"box","text":"..............","page_number":32,"box":{"x":649,"y":687,"width":108,"height":1}},{"id":"8dc2f189-15d5-43d7-8dfd-fab4d6a13f52","block_type":"box","text":"$22.07","page_number":32,"box":{"x":857,"y":679,"width":51,"height":10}},{"id":"4baa98c3-bff0-47fd-8223-a70a996dc201","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":32,"box":{"x":69,"y":695,"width":534,"height":11}},{"id":"d80910ce-3914-4302-9132-023a50cf47c2","block_type":"box","text":"1","page_number":32,"box":{"x":604,"y":695,"width":4,"height":4}},{"id":"f1bd3d94-feed-48ff-b0d3-e08b8683c202","block_type":"box","text":". . . . . . . . . . . . . . . . . . $1.22","page_number":32,"box":{"x":616,"y":694,"width":293,"height":11}},{"id":"99a432c6-164e-4d39-a3ba-d5a2bf5e8a30","block_type":"box","text":"Offering Price. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":32,"box":{"x":69,"y":714,"width":687,"height":12}},{"id":"72e51e96-16a9-4fec-8344-03a554508540","block_type":"box","text":"$23.29","page_number":32,"box":{"x":857,"y":714,"width":52,"height":10}},{"id":"fb29b851-4137-475a-a86a-dd7539d264ac","block_type":"box","text":"1","page_number":32,"box":{"x":69,"y":746,"width":3,"height":4}},{"id":"bbacdae0-f5ec-41de-b868-7eadf16b0c5b","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":32,"box":{"x":94,"y":746,"width":541,"height":9}},{"id":"b4ed0975-847f-4cbe-8fbb-f5715db250fa","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’s net asset value computed as","page_number":32,"box":{"x":101,"y":767,"width":796,"height":11}},{"id":"0c12e85f-afd2-48d8-bc2f-330afd2c3696","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":32,"box":{"x":69,"y":782,"width":833,"height":12}},{"id":"368f58ba-8d83-4cfe-9f8a-4b96964f0b1c","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":32,"box":{"x":69,"y":797,"width":813,"height":12}},{"id":"073326c3-73a1-4687-ac30-3c2e2f14b939","block_type":"box","text":"Shares” and “Pricing of Shares” in Part II of this Statement of Additional Information.","page_number":32,"box":{"x":69,"y":812,"width":607,"height":12}},{"id":"fcb80d2c-5373-433b-93c3-fe64b1960238","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":32,"box":{"x":68,"y":843,"width":302,"height":11}},{"id":"b5918284-73fb-463f-96a0-6c12de5dab2c","block_type":"box","text":"See Part II “Portfolio Transactions and Brokerage” of this Statement of Additional Information for more","page_number":32,"box":{"x":102,"y":865,"width":732,"height":12}},{"id":"322c82c4-7501-40fc-b451-fa6e427236b3","block_type":"box","text":"information.","page_number":32,"box":{"x":70,"y":881,"width":83,"height":9}},{"id":"de04da52-f16f-4aa9-82ea-5324c90a93ad","block_type":"box","text":"I-22","page_number":32,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"02b76a2e-964d-44c4-9001-e0eb092552d8","block_type":"box","text":"NM1026U-5993100-32/236","page_number":32,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"94350c94-95b2-4ceb-b590-4a36ed85db83","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to Affiliates for the","page_number":33,"box":{"x":102,"y":45,"width":796,"height":11}},{"id":"187c8c57-bb75-4433-b6e4-640cf0388ef2","block_type":"box","text":"periods shown is set forth in the following table:","page_number":33,"box":{"x":70,"y":60,"width":342,"height":11}},{"id":"d1060a3c-666c-4392-986b-f7bc3826a329","block_type":"box","text":"Aggregate Brokerage","page_number":33,"box":{"x":511,"y":88,"width":125,"height":9}},{"id":"f4ff1e64-0447-4f5d-9991-a38ef2fb3a5f","block_type":"box","text":"Commissions Paid Brokerage Commissions Paid to Affiliates","page_number":33,"box":{"x":521,"y":98,"width":388,"height":9}},{"id":"0a0a9453-b4d0-43db-b1c9-d07485098d6f","block_type":"box","text":"Fiscal Year Ended April 30, 2026 . . . . .","page_number":33,"box":{"x":70,"y":116,"width":272,"height":11}},{"id":"cf2fe7e5-dd20-4060-801f-b22b44aee5a3","block_type":"box","text":". . . . . . . . . . . . . . . . . $7,","page_number":33,"box":{"x":348,"y":115,"width":205,"height":11}},{"id":"4d5b1a1a-b212-4a53-adab-d516042335c2","block_type":"box","text":"192,705 $0","page_number":33,"box":{"x":556,"y":115,"width":241,"height":11}},{"id":"a12cf46e-0425-41c9-9474-2d4614313603","block_type":"box","text":"Fiscal Year Ended April 30, 2025 . . . . .","page_number":33,"box":{"x":70,"y":131,"width":272,"height":11}},{"id":"ba6f1eb2-1583-4697-ad9b-ad6cf1aafa25","block_type":"box","text":". . . . . . . . . . . . . . . . . $6,","page_number":33,"box":{"x":348,"y":130,"width":205,"height":11}},{"id":"600fc6e7-2941-4473-991a-090db70e72d6","block_type":"box","text":"896,096 $0","page_number":33,"box":{"x":555,"y":130,"width":242,"height":11}},{"id":"c49c2a62-b9ec-481f-9278-e67100d3a87e","block_type":"box","text":"Fiscal Year Ended April 30, 2024 . . . . .","page_number":33,"box":{"x":70,"y":146,"width":272,"height":11}},{"id":"fa93fdac-83ba-47fc-9808-4ca96472efcb","block_type":"box","text":". . . . . . . . . . . . . . . . . $6,","page_number":33,"box":{"x":348,"y":145,"width":205,"height":12}},{"id":"abb6b183-74b2-4508-a762-913a60b3e7bd","block_type":"box","text":"117,091 $0","page_number":33,"box":{"x":556,"y":145,"width":241,"height":12}},{"id":"c72751fa-7ba0-4cf6-b92e-7728b7426795","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":33,"box":{"x":101,"y":170,"width":770,"height":11}},{"id":"c93bf85d-31f0-401b-b542-77cf200a2a4a","block_type":"box","text":"28(e) research/brokerage services under Section 28(e) of the Securities Exchange Act of 1934, as amended, and","page_number":33,"box":{"x":69,"y":185,"width":814,"height":11}},{"id":"9d5fd558-d6f3-417f-9049-fa2de6b63eed","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended April 30, 2026. The provision of","page_number":33,"box":{"x":68,"y":200,"width":831,"height":11}},{"id":"abf99b56-53b1-453e-8ead-cd7e824ed03f","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":33,"box":{"x":69,"y":215,"width":822,"height":12}},{"id":"5e29c70c-b601-46b1-ad6a-e803c0aa1b76","block_type":"box","text":"with such brokers.","page_number":33,"box":{"x":68,"y":231,"width":130,"height":8}},{"id":"c2c73da9-3615-472f-a354-703289b31d09","block_type":"box","text":"Amount of Commissions","page_number":33,"box":{"x":318,"y":259,"width":141,"height":7}},{"id":"92c28443-7939-4f9e-a1f9-1648df73f7ed","block_type":"box","text":"Paid to Brokers for","page_number":33,"box":{"x":334,"y":269,"width":110,"height":7}},{"id":"4b183c20-a06f-4357-b076-633996a96de8","block_type":"box","text":"Providing 28(e) Eligible","page_number":33,"box":{"x":321,"y":279,"width":136,"height":9}},{"id":"0b83770b-cdb9-404c-8130-1e680d20bd63","block_type":"box","text":"Research Services","page_number":33,"box":{"x":335,"y":289,"width":108,"height":7}},{"id":"08243e89-8dba-4342-95c4-eb3df23ad00e","block_type":"box","text":"Amount of Brokerage","page_number":33,"box":{"x":524,"y":279,"width":124,"height":9}},{"id":"643d318a-f309-4a7c-86dc-6a54db789970","block_type":"box","text":"Transactions Involved","page_number":33,"box":{"x":523,"y":289,"width":126,"height":7}},{"id":"9146ef89-3cab-452e-88e7-adf14728581d","block_type":"box","text":"$2,407,603.88 $6,458,736,542.58","page_number":33,"box":{"x":333,"y":306,"width":326,"height":11}},{"id":"24d9143f-148d-4e9c-a4a0-69cef7b135c0","block_type":"box","text":"The value of the Fund’s aggregate holdings of the securities of its regular brokers or dealers (as defined in Rule","page_number":33,"box":{"x":101,"y":331,"width":796,"height":11}},{"id":"ff7bbca0-ef6d-4aef-a403-7c1b87399aa9","block_type":"box","text":"10b-1 under the Investment Company Act) or their parents as of April 30, 2026 if any portion of such holdings were","page_number":33,"box":{"x":70,"y":346,"width":823,"height":11}},{"id":"bab9a3c6-e10b-4c7f-a56c-003c7cc701a9","block_type":"box","text":"purchased during the fiscal year ended April 30, 2026, is as follows:","page_number":33,"box":{"x":70,"y":361,"width":487,"height":11}},{"id":"22284294-6373-44d6-ade6-b621f82bd6eb","block_type":"box","text":"Regular Broker/Dealer","page_number":33,"box":{"x":69,"y":409,"width":132,"height":9}},{"id":"2eb5bc8a-303e-4114-bec1-ab414fa6b021","block_type":"box","text":"Debt","page_number":33,"box":{"x":763,"y":389,"width":26,"height":7}},{"id":"cb70dd28-1e8c-4a73-816c-82a91823916e","block_type":"box","text":"(D)/Equity","page_number":33,"box":{"x":745,"y":399,"width":62,"height":9}},{"id":"36c1cd63-85a6-4222-b2e6-09787045010f","block_type":"box","text":"(E)","page_number":33,"box":{"x":767,"y":409,"width":16,"height":9}},{"id":"1073267b-4b30-48a2-94ea-ecda7858d9b2","block_type":"box","text":"Aggregate","page_number":33,"box":{"x":842,"y":389,"width":61,"height":9}},{"id":"586dee6e-2efc-44ab-95a7-f944fc1b241b","block_type":"box","text":"Holdings","page_number":33,"box":{"x":848,"y":399,"width":50,"height":9}},{"id":"824dd8b0-6d4d-437a-8d16-26fad34cbc81","block_type":"box","text":"(000’s)","page_number":33,"box":{"x":851,"y":409,"width":43,"height":9}},{"id":"5f6ec782-85b6-4c6c-ad9b-a59d5b3d987d","block_type":"box","text":"Citigroup Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E","page_number":33,"box":{"x":69,"y":427,"width":711,"height":11}},{"id":"6ddb34df-9088-409b-ab3e-97a8d386ce5b","block_type":"box","text":"$595,315","page_number":33,"box":{"x":837,"y":426,"width":72,"height":11}},{"id":"1a7aa488-db30-4d96-9b6f-f401ab5a267d","block_type":"box","text":"JP Morgan Chase . . .","page_number":33,"box":{"x":69,"y":442,"width":155,"height":11}},{"id":"558fe6eb-0c72-474e-9d94-0308093ce26b","block_type":"box","text":"............................................................ E","page_number":33,"box":{"x":231,"y":442,"width":549,"height":9}},{"id":"ec88b14f-e119-425f-b2f0-bae0d7917367","block_type":"box","text":"$212,634","page_number":33,"box":{"x":837,"y":441,"width":72,"height":12}},{"id":"3b6a68dd-7de5-416d-9418-0b2006f9c68c","block_type":"box","text":"Bank of America","page_number":33,"box":{"x":70,"y":457,"width":114,"height":9}},{"id":"f892550e-e94c-410b-8dc9-e696bbf3b630","block_type":"box","text":"................................................................ E","page_number":33,"box":{"x":198,"y":457,"width":582,"height":9}},{"id":"5d511954-3d96-4b3e-bd27-4dd7d7e90b8f","block_type":"box","text":"$168,160","page_number":33,"box":{"x":837,"y":457,"width":72,"height":11}},{"id":"22cf33ec-2ee2-4cbe-b40f-8765bc4f3619","block_type":"box","text":"Securities Lending","page_number":33,"box":{"x":68,"y":489,"width":135,"height":11}},{"id":"5c3919c4-0d6f-450b-abcf-d274435427e1","block_type":"box","text":"To the extent that the Fund engages in securities lending, the Fund conducts its securities lending pursuant to an","page_number":33,"box":{"x":101,"y":512,"width":807,"height":11}},{"id":"13cdecad-8b78-42bf-bc0c-c1875c6f4cc5","block_type":"box","text":"exemptive order from the Commission permitting it to lend portfolio securities to borrowers affiliated with the Fund","page_number":33,"box":{"x":69,"y":526,"width":817,"height":12}},{"id":"3374a2a2-93d0-4c17-a0ec-631167a48f2d","block_type":"box","text":"and to retain an affiliate of the Fund as securities lending agent. To the extent that the Fund engages in securities","page_number":33,"box":{"x":69,"y":542,"width":813,"height":11}},{"id":"59027241-e06f-4b12-99db-054b0e96e7cd","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":33,"box":{"x":70,"y":557,"width":838,"height":11}},{"id":"2d371ebe-c31a-42cb-b7d8-d70b15b487cc","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":33,"box":{"x":69,"y":572,"width":813,"height":11}},{"id":"cd40a5fb-935b-47ba-8829-636197977296","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":33,"box":{"x":70,"y":587,"width":646,"height":11}},{"id":"8c6c9bdf-1f53-4e2d-bb61-8bd7e2ba1e23","block_type":"box","text":"The Fund retains a portion of the securities lending income and remits the remaining portion to BIM as","page_number":33,"box":{"x":101,"y":610,"width":735,"height":11}},{"id":"b1d226f1-37f5-44d5-be66-fdfb534c0551","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":33,"box":{"x":69,"y":625,"width":834,"height":11}},{"id":"5cbcf563-37e3-4699-99c1-2fb827849461","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":33,"box":{"x":70,"y":640,"width":822,"height":11}},{"id":"87386cf2-e86c-4735-a048-6868927facc9","block_type":"box","text":"and any fees or other payments to and from borrowers of securities. As securities lending agent, BIM bears all","page_number":33,"box":{"x":69,"y":655,"width":787,"height":11}},{"id":"7e8e8369-0e9d-4ce6-9d42-c086af5654fc","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":33,"box":{"x":69,"y":670,"width":783,"height":11}},{"id":"468a2d44-a5db-4af2-9dba-41feebedcc5f","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the","page_number":33,"box":{"x":70,"y":685,"width":800,"height":12}},{"id":"2efbe115-e6b5-49d0-9e7f-d50d3f6faf98","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":33,"box":{"x":70,"y":700,"width":813,"height":12}},{"id":"ff4afd15-43b6-4f3d-8ad5-ba2f72c8adee","block_type":"box","text":"lending income it receives in order to effectively limit the collateral investment fees a Fund bears to an annual rate of","page_number":33,"box":{"x":70,"y":715,"width":836,"height":12}},{"id":"e6c6e10b-7a2b-43bb-afda-0b94d98913b0","block_type":"box","text":"0.04%. Such money market fund shares will not be subject to a sales load, redemption fee, distribution fee or","page_number":33,"box":{"x":69,"y":731,"width":785,"height":11}},{"id":"716ccd21-dcf9-405c-bd8d-cd419be8f033","block_type":"box","text":"service fee.","page_number":33,"box":{"x":69,"y":746,"width":82,"height":9}},{"id":"276d8368-cbf0-408a-8864-45937a0b1095","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":33,"box":{"x":101,"y":768,"width":776,"height":12}},{"id":"5a74b3c3-b94c-4eba-8468-5efe46e7ebbc","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":33,"box":{"x":69,"y":783,"width":831,"height":12}},{"id":"6b907a33-3f55-4ed2-b2b7-91765c522f01","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":33,"box":{"x":68,"y":799,"width":812,"height":11}},{"id":"50f94576-f046-4eb0-8939-57c5b6fafe88","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":33,"box":{"x":69,"y":814,"width":799,"height":11}},{"id":"a5067aaa-6058-40e8-88b3-7c855e2dcb97","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":33,"box":{"x":68,"y":829,"width":835,"height":11}},{"id":"dd0286a9-5d0d-4577-9bd7-c1d19ede09d7","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":33,"box":{"x":69,"y":844,"width":818,"height":11}},{"id":"e975bd44-44af-4617-8be0-146b0a54f6b1","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":33,"box":{"x":68,"y":859,"width":789,"height":11}},{"id":"626d643f-d88e-45c9-8846-088f1649d070","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":33,"box":{"x":69,"y":874,"width":829,"height":12}},{"id":"26f5e81f-03f4-4563-a80b-a2df81bac535","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":33,"box":{"x":69,"y":889,"width":839,"height":12}},{"id":"327805a7-2a2b-4104-b66d-a404eb647df7","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":33,"box":{"x":69,"y":904,"width":802,"height":12}},{"id":"601dddef-7b9d-4da8-a1e1-c250f1d508cf","block_type":"box","text":"I-23","page_number":33,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"a9913a1c-4b46-471f-afc7-3df30bd2f05f","block_type":"box","text":"NM1026U-5993100-33/236","page_number":33,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"84651299-d2db-4e05-992e-3ca19334a59e","block_type":"box","text":"portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value","page_number":34,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"283f7cb8-e68b-41e4-97e2-ca5a3c3ce189","block_type":"box","text":"of shares redeemed on that day. The imposition of any such discretionary or mandatory liquidity fee would reduce the","page_number":34,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"9d6aa5a9-3abb-4640-be99-ebd78763f95f","block_type":"box","text":"Fund’s returns on securities lending.","page_number":34,"box":{"x":70,"y":75,"width":258,"height":11}},{"id":"335b8080-091d-4d8d-ab29-40f876cfb9e8","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":34,"box":{"x":102,"y":98,"width":774,"height":11}},{"id":"451a1964-32c2-477c-8cdf-65ace5a4b736","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity or fund of","page_number":34,"box":{"x":69,"y":113,"width":790,"height":11}},{"id":"faeb5659-c8b8-4a4f-820d-844662eaa25b","block_type":"box","text":"funds), each of which may be subject to a different fee arrangement, is based on a methodology agreed to by the","page_number":34,"box":{"x":68,"y":128,"width":809,"height":11}},{"id":"f24aca07-c96f-4e19-bf71-455667bd4f00","block_type":"box","text":"Fund and BIM.","page_number":34,"box":{"x":70,"y":143,"width":100,"height":9}},{"id":"61e890be-7453-4615-8af1-f834d0368a03","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 81% of securities","page_number":34,"box":{"x":102,"y":166,"width":783,"height":11}},{"id":"4d64ddb5-8ab4-4cf9-a670-9cbcd18f1f3d","block_type":"box","text":"lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the","page_number":34,"box":{"x":70,"y":181,"width":815,"height":11}},{"id":"5d1de5c9-0f0e-4da5-87bf-13bc63ca1fa4","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":34,"box":{"x":69,"y":196,"width":463,"height":11}},{"id":"75f2169a-ce7f-41b8-8be6-41c5906aaa9e","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":34,"box":{"x":102,"y":218,"width":753,"height":12}},{"id":"8e81c6bd-a858-4158-a710-610e8c5191c0","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":34,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"dfda7122-1609-4682-a01c-6455787e0e2e","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":34,"box":{"x":70,"y":249,"width":817,"height":11}},{"id":"ac465aef-ae26-464e-bc8b-d4ebec6d81de","block_type":"box","text":"lending income as follows: (i) 84% of securities lending income (which excludes collateral investment fees); and","page_number":34,"box":{"x":70,"y":264,"width":794,"height":11}},{"id":"97880543-872e-407a-888d-99e5adde57ff","block_type":"box","text":"(ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment fees.","page_number":34,"box":{"x":69,"y":279,"width":825,"height":11}},{"id":"c13c9176-3863-4751-b8fb-a2278d3eb6cd","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":34,"box":{"x":102,"y":302,"width":683,"height":11}},{"id":"e5c0319a-c034-4c09-93a7-13d87ba18fdd","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":34,"box":{"x":101,"y":324,"width":804,"height":11}},{"id":"1e76d2a4-41e3-4bbc-ae16-ee176b68c0c7","block_type":"box","text":"the following:","page_number":34,"box":{"x":68,"y":339,"width":93,"height":12}},{"id":"3610154b-7a8e-40b2-9fa3-3b465f97f55c","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":34,"box":{"x":69,"y":360,"width":818,"height":11}},{"id":"e420037b-5259-4fb8-bf87-6a135d5a8be2","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":34,"box":{"x":102,"y":375,"width":333,"height":10}},{"id":"0a01c8ef-72cd-4f4b-8ccc-6828ae18a9de","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":34,"box":{"x":69,"y":395,"width":538,"height":11}},{"id":"ab97de9c-251f-4b3c-a245-3118f7dc5b4f","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":34,"box":{"x":69,"y":415,"width":330,"height":11}},{"id":"7f4922c6-62b6-4340-a5db-0701ec171352","block_type":"box","text":"(4) monitoring the daily value of the loaned securities and directing the payment of additional collateral or the return","page_number":34,"box":{"x":69,"y":435,"width":834,"height":11}},{"id":"977ebd14-8591-4dad-875b-355e7989b272","block_type":"box","text":"of excess collateral, as necessary;","page_number":34,"box":{"x":102,"y":450,"width":246,"height":11}},{"id":"3152fa03-1dcd-4404-b827-c454b5c9f164","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":34,"box":{"x":69,"y":471,"width":562,"height":11}},{"id":"92af8104-d831-47a1-a1dd-ac7f27aafd31","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":34,"box":{"x":69,"y":491,"width":665,"height":11}},{"id":"36d026a5-1673-42f5-957a-808bc187ff03","block_type":"box","text":"(7) in the event of default by a borrower with respect to any securities loan, using the collateral or the proceeds of","page_number":34,"box":{"x":69,"y":511,"width":822,"height":11}},{"id":"5fd94805-b761-4705-887c-e499a9707b24","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":34,"box":{"x":101,"y":526,"width":803,"height":11}},{"id":"bdd13237-c05e-43ee-8ac6-2cd2ad8dac20","block_type":"box","text":"of the loaned securities; and","page_number":34,"box":{"x":102,"y":541,"width":203,"height":11}},{"id":"af323946-4a9c-4849-8603-92df5d298b2c","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":34,"box":{"x":69,"y":561,"width":808,"height":11}},{"id":"6f54e4ed-9d98-4ab4-8d4a-1f191e2d9a6b","block_type":"box","text":"I-24","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"6150b37b-8d0e-487a-bf78-9d4d007b83d4","block_type":"box","text":"NM1026U-5993100-34/236","page_number":34,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5cad1e70-eb60-4042-b875-8532f28aea82","block_type":"box","text":"The Fund had no income and fees/compensation related to the securities lending activities during its most recent","page_number":35,"box":{"x":68,"y":45,"width":813,"height":11}},{"id":"1cf4240c-8a17-4c39-a1b0-770eb5d8c92c","block_type":"box","text":"fiscal year ended April 30, 2026.","page_number":35,"box":{"x":68,"y":60,"width":234,"height":11}},{"id":"e8845717-7d49-4daf-a2ca-3f14397c0167","block_type":"box","text":"VIII. Additional Information","page_number":35,"box":{"x":68,"y":90,"width":195,"height":9}},{"id":"7f8d4417-9af1-4c4b-b75f-9da03344b062","block_type":"box","text":"The Fund was organized on May 14, 1987 under the laws of the Commonwealth of Massachusetts and is a","page_number":35,"box":{"x":101,"y":113,"width":766,"height":11}},{"id":"ced53589-7bbd-4894-9915-6cb0169cf855","block_type":"box","text":"business entity commonly known as a “Massachusetts business trust.” On December 27, 2000, the Fund changed","page_number":35,"box":{"x":69,"y":128,"width":823,"height":11}},{"id":"9c43bed2-e6f7-4c7c-8c24-00307a150e6e","block_type":"box","text":"its name from “Merrill Lynch Strategic Dividend Fund” to “Merrill Lynch Equity Income Fund.” On October 1, 2003,","page_number":35,"box":{"x":70,"y":143,"width":811,"height":11}},{"id":"775c1e62-e733-4224-8155-3a8a0ee7b12a","block_type":"box","text":"the Fund changed its name to “Merrill Lynch Equity Dividend Fund.” Effective September 29, 2006, the Fund changed","page_number":35,"box":{"x":68,"y":158,"width":840,"height":11}},{"id":"81da30d2-70dd-4de9-bf51-c828cbc04a00","block_type":"box","text":"its name to “BlackRock Equity Dividend Fund.” The Fund is classified as a diversified open-end investment company","page_number":35,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"12f6c6d4-d5a6-4c6d-8c6b-bcaf0bca7f28","block_type":"box","text":"under the Investment Company Act.","page_number":35,"box":{"x":69,"y":188,"width":252,"height":11}},{"id":"a4cab663-ac72-495f-b895-640dc0963ea3","block_type":"box","text":"Description of Shares","page_number":35,"box":{"x":70,"y":218,"width":153,"height":11}},{"id":"851f4bc1-a35b-41d3-a1d8-031c7eb06a08","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":35,"box":{"x":101,"y":241,"width":770,"height":11}},{"id":"b8f614f5-7af7-47dc-b773-ec0f54727a07","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":35,"box":{"x":69,"y":256,"width":826,"height":11}},{"id":"6b305b29-bd4e-4718-b9c4-e5b82ef8dc1b","block_type":"box","text":"each class into a greater or lesser number of shares without thereby changing the proportionate beneficial interest in","page_number":35,"box":{"x":69,"y":271,"width":836,"height":12}},{"id":"3378d6bb-53b5-45e3-9b6a-4944c0ae57cd","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":35,"box":{"x":68,"y":286,"width":825,"height":11}},{"id":"c45b39c6-2d69-43ab-927c-b4fb32205888","block_type":"box","text":"Investor C, Institutional, Class K, Class R and Service Shares. Under the Declaration of Trust, the Board of Trustees","page_number":35,"box":{"x":70,"y":302,"width":827,"height":10}},{"id":"57f555bf-ec5c-4c40-99d8-79d574dca2a9","block_type":"box","text":"has the authority to issue separate classes of shares that represent interest in the assets of the Fund and have","page_number":35,"box":{"x":69,"y":317,"width":801,"height":11}},{"id":"c0f70469-224c-4e70-8365-2709954daec0","block_type":"box","text":"identical voting, dividend, liquidation and other rights and the same terms and conditions except that expenses","page_number":35,"box":{"x":70,"y":332,"width":791,"height":11}},{"id":"7eb7b284-83bc-4f32-825d-ec8a61d0451c","block_type":"box","text":"related to the account maintenance and distribution of shares of a class may be borne solely by such class and a","page_number":35,"box":{"x":69,"y":347,"width":810,"height":11}},{"id":"480982a4-dc69-4f93-88ab-fed9240a9b0c","block_type":"box","text":"class may have exclusive voting rights with respect to matters relating to the account maintenance and distribution","page_number":35,"box":{"x":69,"y":362,"width":819,"height":11}},{"id":"e8a39309-fb60-4fb5-a086-f0b927e0ee54","block_type":"box","text":"expenses being borne only by such class. The Board of Trustees of the Fund may classify and reclassify the shares of","page_number":35,"box":{"x":69,"y":377,"width":841,"height":12}},{"id":"8b6d1dbf-eaad-4512-b934-e14499eaa6dd","block_type":"box","text":"the Fund into additional classes of shares at a future date. Upon liquidation of the Fund, shareholders of each class","page_number":35,"box":{"x":68,"y":392,"width":829,"height":11}},{"id":"1501fa70-6401-4363-84b3-eb2ffbb3f61f","block_type":"box","text":"are entitled to share pro rata in the net assets of the Fund available for distribution to shareholders, except for any","page_number":35,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"f0333a05-f8e3-478d-96ac-3e891d922189","block_type":"box","text":"expenses, which may be attributable only to one class. Effective on December 27, 2017, all of the issued and","page_number":35,"box":{"x":69,"y":423,"width":786,"height":11}},{"id":"5dda5de1-e9f0-47d1-8b5e-d65526fbe354","block_type":"box","text":"outstanding Investor B Shares of the Fund were converted into Investor A Shares of the Fund. 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For ease and clarity of presentation, shares of common","page_number":38,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"9a07d6a9-4cd6-4383-bf98-c42077f9accb","block_type":"box","text":"stock and shares of beneficial interest are referred to herein as “shares” or “Common Stock,” holders of shares of","page_number":38,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"fa66b8a8-cdfc-4b10-b753-8c4849e84a50","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":38,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"7504eac8-a590-410d-8f3c-97f6a6fbc055","block_type":"box","text":"“Directors,” the boards of trustees/directors of each Fund are referred to as the “Board of Directors” or the “Board,”","page_number":38,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"5f7f9d8d-ec31-4e9a-b7d3-f5443986b18f","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":38,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"25593699-e4d4-430b-84bf-bdaff5cd6445","block_type":"box","text":"of each Fund and is referred to herein as the “Manager” or “BlackRock,” and the investment advisory agreement or","page_number":38,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"1b6f1084-34d3-4a0b-b293-0661e6effac7","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":38,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"49306987-44fa-463a-af0b-e1f593729341","block_type":"box","text":"Articles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “charter.”","page_number":38,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"97f25abd-c0f3-4db0-bc55-d6760b13cf99","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":38,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"575909b9-d965-4a2e-8956-faa231b81cf7","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":38,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"9168fce4-1457-4e26-811e-4668c8500d92","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":38,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"c3504203-c978-4f97-8e2a-80fca26dc725","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":38,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"d12e8cc8-7a64-45d7-b776-b71dad599aa4","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each, a “Master","page_number":38,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"d72f72af-0ba1-4107-a1d4-f18835e38bf4","block_type":"box","text":"LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. 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Asset-backed securities are “pass-through” securities, meaning","page_number":38,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"941f3bd7-2dbd-48ee-aa9a-2f259edb86fb","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":38,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"b6e71489-5604-4c85-b9d1-cd52f4a0bf6e","block_type":"box","text":"credit card receivables) are passed through to a Fund. The value of asset-backed securities, like that of traditional","page_number":38,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"db3e4b5f-6c40-47da-9ddd-a0eadba08959","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":38,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"2dc862c0-6fe1-4c39-bccf-a65efdb197f5","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":38,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"39e9e8a0-d7ee-4461-bac2-26b15b2ee6f3","block_type":"box","text":"price paid by a Fund for its asset-backed securities, the yield the Fund expects to receive from such securities and","page_number":38,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"f44167f1-dc78-42af-98ad-70494edc4532","block_type":"box","text":"the average life of the securities are based on a number of factors, including the anticipated rate of prepayment of","page_number":38,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"664594d0-8fad-4514-a41c-622da15242a9","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":38,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"353efc67-26c5-4228-82e9-7ca98790e204","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":38,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"e1eb1029-84af-4e38-a1c1-9d5d70e1e62a","block_type":"box","text":"Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely receive a rate of","page_number":38,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"8866f633-95cd-4221-ae59-3ff3ec580879","block_type":"box","text":"interest that is lower than the rate on the security that was prepaid. To the extent that a Fund purchases asset","page_number":38,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"4d4a96a1-a4f1-4a47-a0e9-2808cb68ddf1","block_type":"box","text":"backed securities at a premium, prepayments may result in a loss to the extent of the premium paid. If a Fund buys","page_number":38,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"80e56c77-0a2b-481f-85b6-25dc71354ece","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":38,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"74f73586-6654-48a6-bebf-7a2c5d1982ce","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":38,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"33b55eea-8586-412b-83bf-d89b542835e9","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":38,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"c24999bd-371e-43d6-afa6-31bd7b3df299","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This particular risk may effectively","page_number":38,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"87472d9e-fe6c-4d45-856b-75567156a76d","block_type":"box","text":"change a security that was considered short- or intermediate-term at the time of purchase into a longer term security.","page_number":38,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"ef069c61-c531-429e-a37b-5f97b20ceab6","block_type":"box","text":"II-1","page_number":38,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"78bc2bcf-22f5-4082-a9ee-09bb2c860f05","block_type":"box","text":"NM1026U-5993100-38/236","page_number":38,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6a76ab34-49cd-4bc7-9653-9fc09b2a5f24","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":39,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"649b2bf8-e1de-4b9e-86fd-dad55b3e2ca4","block_type":"box","text":"than does the value of shorter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":39,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"646b7cde-7106-466f-aafa-3500bf68020e","block_type":"box","text":"interest rates decline, the value of an asset-backed security with prepayment features may not increase as much as","page_number":39,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"35c76b77-108f-4067-9b66-acf2311e215e","block_type":"box","text":"that of other fixed-income securities, and, as noted above, changes in market rates of interest may accelerate or","page_number":39,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"d0c7887f-3337-4ce3-9b01-187da1c941e6","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":39,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"cefb23de-7418-483c-abe9-2b88923ecf2c","block_type":"box","text":"Asset-Based Securities.","page_number":39,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"2a529dd0-a8a8-4516-a228-e41b15a37005","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the principal","page_number":39,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"6ebc56ad-6824-430f-912f-eb48bf254136","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":39,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"9aee9cd4-7cf1-46dc-a98e-fe81da0e27c0","block_type":"box","text":"asset such as gold bullion. These securities are referred to as “asset-based securities.” A Fund will purchase only","page_number":39,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"c8f2e716-9a9f-4240-afbb-db8d726c8058","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":39,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"6d9e2a54-0321-46fa-a68f-e4d0078074f3","block_type":"box","text":"investment grade (for example, AAA, AA, A or BBB by S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), or Baa by","page_number":39,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"da1dea6a-6b82-4c67-84d3-80aa7e0fb50f","block_type":"box","text":"Moody’s Investors Service, Inc. (“Moody’s”) or commercial paper rated A-1 by S&P or Prime-1 by Moody’s) or by","page_number":39,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"29da5940-8730-4756-a1a7-e68e5cf845a7","block_type":"box","text":"issuers that the Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":39,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"ca8b5dd9-4d0b-49ae-9d9d-eb1c90afb64a","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and may be more","page_number":39,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"d0ecc365-df6b-4c29-912e-716bf4b15608","block_type":"box","text":"likely to be downgraded than securities rated in the three highest rating categories. If an asset-based security is","page_number":39,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"99294d61-73af-4c7a-a48c-daa594e47a30","block_type":"box","text":"backed by a bank letter of credit or other similar facility, the Manager may take such backing into account in","page_number":39,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"7a463572-b421-443a-85de-bab87b837b33","block_type":"box","text":"determining the creditworthiness of the issuer. While the market prices for an asset-based security and the related","page_number":39,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"fffff7a8-06e3-4b68-a0b6-d3231aa5dfa1","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be perfect correlation in","page_number":39,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"3763b732-a7b1-49fb-b7a3-3de03bb0d5cc","block_type":"box","text":"the two price movements. Asset-based securities may not be secured by a security interest in or claim on the","page_number":39,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"63806f3f-d2db-4dec-b397-1da56815cf4b","block_type":"box","text":"underlying natural resource asset. The asset-based securities in which a Fund may invest may bear interest or pay","page_number":39,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"e6b93cf5-59d6-4825-aeac-069c65894916","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be payable","page_number":39,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"203e68cb-3175-4068-98bc-68911dff3d88","block_type":"box","text":"at maturity in cash at the stated principal amount or, at the option of the holder, directly in a stated amount of the","page_number":39,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"df74bc6c-9d04-4de2-b69d-3c3d61d67ccd","block_type":"box","text":"asset to which it is related. In such instance, because no Fund presently intends to invest directly in natural resource","page_number":39,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"f1e6586a-e389-405a-820e-4d409f139d43","block_type":"box","text":"assets, a Fund would sell the asset-based security in the secondary market, to the extent one exists, prior to","page_number":39,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"f5624505-deb3-492d-a623-dcf219da5722","block_type":"box","text":"maturity if the value of the stated amount of the asset exceeds the stated principal amount and thereby realize the","page_number":39,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"48b01e4a-b210-4142-b616-0fdab7b8334a","block_type":"box","text":"appreciation in the underlying asset.","page_number":39,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"4dca49d7-bafa-4344-ba31-761d229425f3","block_type":"box","text":"Precious Metal-Related Securities.","page_number":39,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"9867c44b-6e4e-4fb5-a986-e9b688f78cad","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":39,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"ff747f0e-5c86-4edf-bcb7-c2a670c72e65","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":39,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"67cd8773-3147-4a15-a997-fca293d71bf4","block_type":"box","text":"e.g.","page_number":39,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"ac45da9e-5776-4edc-b6be-21934a22c8fe","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":39,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"d432e4f4-1709-4f59-8a51-38fa8a995653","block_type":"box","text":"indexed to the value of such metals. Such securities may be purchased when they are believed to be attractively","page_number":39,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"0091eb12-e8fc-4cce-aceb-14470e53ad7c","block_type":"box","text":"priced in relation to the value of a company’s precious metal-related assets or when the values of precious metals","page_number":39,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"4b152a95-07dd-4eea-bf3c-c815583619ff","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncertainty or instability.","page_number":39,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"9ac4db33-79d9-4e40-bd94-9257daa2f8b4","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":39,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"04245802-c26c-49cf-8f1e-fb368eb1a46a","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":39,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"c3fd8467-b302-47c2-a05d-b2f6a8c06c78","block_type":"box","text":"metal prices during such periods. In addition, the instability of precious metal prices may result in volatile earnings of","page_number":39,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"1bdbaf22-9c0a-450f-aa8b-16e03bc5019b","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":39,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"978bd977-630d-43c1-a32a-edae8af9ff26","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":39,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"e66b690f-46d0-425d-9a16-03b4b4693773","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":39,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"8b8bafd1-042e-480f-9e01-a4f0ff097ca0","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":39,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"3b15ba5e-06ea-4623-8823-accc4cbc2b51","block_type":"box","text":"South African gold production.","page_number":39,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"ffd96729-bfdb-45e0-af61-038d62bc1363","block_type":"box","text":"Borrowing and Leverage.","page_number":39,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"b9de6de2-976a-4d5e-9483-6896ea2a245f","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":39,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"b5ec77f4-22e4-4460-97f2-b1e736d7eab4","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Certain Funds will not purchase","page_number":39,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"2ceab9eb-ba3e-4994-93f1-0fab2ddb5ac3","block_type":"box","text":"securities at any time when borrowings exceed 5% of their total assets, except (a) to honor prior commitments or","page_number":39,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"1edba223-8051-4b84-9edc-2cf80f96a5c7","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":39,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"3e10d23b-cef2-4812-89dd-49fde514d6b5","block_type":"box","text":"other securities transactions.","page_number":39,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"e12b3917-af66-4f0c-b341-8ba1cec99678","block_type":"box","text":"Certain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":39,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"ab710645-91a8-4288-aad1-f668ae90035d","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":39,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"9fa54cd2-568f-4c7b-b538-ab587f7a56c3","block_type":"box","text":"leveraging increases the Fund’s exposure to capital risk, and borrowed funds are subject to interest costs that will","page_number":39,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"f231c9bc-ed30-49e3-b2b5-de3fe9da9332","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an opportunity for greater total return, but, at the same","page_number":39,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"4bb48ce3-6df1-4398-b956-afd90a0ccea9","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":39,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"2695d103-680d-432b-b44b-a1f0418e5ef6","block_type":"box","text":"shares and in the yield on the Fund’s portfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":39,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"c4e67d03-84bf-4c96-9392-abc56e26e4d5","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":39,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"4d85ef2b-d10e-4d71-bfdb-babb1234afad","block_type":"box","text":"for the Fund that can exceed the income from the assets purchased with the borrowings. To the extent the income or","page_number":39,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"88f2957b-6eef-4704-b138-1ea58f7fa878","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":39,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"909708db-b540-4042-8eaf-e545dc84c2df","block_type":"box","text":"pay on the borrowings, the Fund’s return will be greater than if leverage had not been used. Conversely, if the income","page_number":39,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"99a8976c-41ff-4811-a021-48d9d21f527a","block_type":"box","text":"or capital appreciation from the securities purchased with such borrowed funds is not sufficient to cover the cost of","page_number":39,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"59295c28-507f-487d-9697-89d49ddf8772","block_type":"box","text":"borrowing, the return to the Fund will be less than if leverage had not been used and, therefore, the amount available","page_number":39,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"3224408e-4b92-40ae-8736-8050674f11c6","block_type":"box","text":"for distribution to shareholders as dividends will be reduced. In the latter case, the Manager in its best judgment","page_number":39,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"7264090e-0188-443f-97fa-0194090f631f","block_type":"box","text":"II-2","page_number":39,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"73dd9c3d-3276-405c-92be-3851d0c2fad7","block_type":"box","text":"NM1026U-5993100-39/236","page_number":39,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"234e9f23-c111-4322-88c5-7cf4c42ae15d","block_type":"box","text":"nevertheless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":40,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"d251cae0-e8d2-4d43-8e46-1847eb4ed43a","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":40,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"3d823fbc-1b07-4e02-b8dc-a26cb6223c4e","block_type":"box","text":"Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":40,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"be9a46f8-fd2e-4f3d-8145-c83a3e79b777","block_type":"box","text":"relating to asset coverage, portfolio composition requirements and other matters. It is not anticipated that","page_number":40,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"6281d4c5-1692-44bb-9538-61ee6a4fee6e","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s portfolio in accordance with the","page_number":40,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"127cadc8-1661-4dd7-88bb-766867c2b5b7","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":40,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"78215457-5602-4e19-85ed-0e06c6ca886e","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of portfolio","page_number":40,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"c48dfd39-2c81-4076-9377-6a4dedb28600","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":40,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"df53404f-5677-4e29-948b-67d4c6c617aa","block_type":"box","text":"Each Fund may at times borrow from affiliates of the Manager, provided that the terms of such borrowings are","page_number":40,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"648d9515-a72f-4cb9-b86a-d100452a979e","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":40,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"585260f7-7eb7-4e34-9783-d6b8184c9bf4","block_type":"box","text":"Cash Management.","page_number":40,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"7fbeb2a9-46e5-407c-9291-41f36104a86b","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":40,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"2f091cbc-2568-42d8-b350-5c52306bad9c","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":40,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"08d45520-34d4-49ba-b197-b9fc2a9c260f","block_type":"box","text":"in the opinion of the Manager, a portion of a Fund’s assets may be invested in certain types of instruments with","page_number":40,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"a17fb464-e17a-4fd4-80fd-ed040773bc57","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":40,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"3d9e44ca-2898-4e97-88c3-4e2a61dc31ce","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":40,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"939c90e3-b07d-4ddc-b8df-7850714733c4","block_type":"box","text":"Securities”); (ii) other fixed-income securities rated Aa or higher by Moody’s or AA or higher by S&P or, if unrated, of","page_number":40,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"f1bb3db4-3ed4-43e5-9476-b89d97d16309","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":40,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"a68481da-3405-4acd-a8a1-1471d6bbcf4e","block_type":"box","text":"certificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":40,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"c0721854-6afe-4485-88bf-394f5d1ccc6e","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":40,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"869d5a43-3e55-4978-b818-20b215331308","block_type":"box","text":"have outstanding debt rated Aa or higher by Moody’s or AA or higher by S&P or outstanding commercial paper, bank","page_number":40,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"40fdfd4a-7c4e-4a9b-845d-43af9bf1c84b","block_type":"box","text":"obligations or other short-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":40,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"9742ffb1-8dc8-4a22-ad92-422f4769cd57","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":40,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"a9d9e1d1-2e1b-4f76-ac0e-f1606e8b84fa","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":40,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"5fb0b61a-72c1-483a-a597-29ee7f2bde35","block_type":"box","text":"Collateralized Debt Obligations.","page_number":40,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"69417c4a-640d-4087-97b4-c3a44548dbbf","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":40,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"580c3f92-d9f6-47ae-8a28-82cd2f766a2c","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":40,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"9a3553cb-e873-4a01-abf7-790ad050c087","block_type":"box","text":"structured securities. CDOs are types of asset-backed securities. A CBO is ordinarily issued by a trust or other","page_number":40,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"57092db1-31b2-4f07-b278-1bb68ec7b77e","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":40,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"6d261f90-49e4-4b42-af09-ce3c3503a5ce","block_type":"box","text":"include high risk, below investment grade securities) held by such issuer. A CLO is ordinarily issued by a trust or","page_number":40,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"b6773fcb-96f3-4ea8-98d8-24e4780e0c7e","block_type":"box","text":"other SPE and is typically collateralized by a pool of loans, which may include, among others, domestic and non-U.S.","page_number":40,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"5516ee3e-64a4-43aa-bf0b-170d958506ae","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":40,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"5eb982a3-975f-4f4a-87c1-fe2bc5f61189","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":40,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"eb9841fb-eeff-4944-8f82-46ce0454e8fa","block_type":"box","text":"the United States may not be deemed to be foreign securities if the CLO is collateralized by a pool of loans, a","page_number":40,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"3841f290-6118-40c9-94b3-eeb232df321d","block_type":"box","text":"substantial portion of which are U.S. loans. Although certain CDOs may benefit from credit enhancement in the form","page_number":40,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"160bdbce-0488-469c-b67f-c19557c85b7f","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":40,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"072cf218-3d0d-4898-b113-e7fecbdb17fd","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Certain CDO issuers may","page_number":40,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"547deaff-aa22-4d3f-a1a9-4d3c403b7df9","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":40,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"da733d06-5901-42cd-b0d4-96454748f665","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":40,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"354715ed-9a5b-44b1-bb3a-1b2bd5cc54bc","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":40,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"59309ad3-62ef-4d51-a4c8-a22b2a940c20","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called tranches,","page_number":40,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"eaed1d5a-84f8-4213-a8d8-669eedadf5fd","block_type":"box","text":"varying in risk and yield. The riskiest portion is the “equity” tranche, which bears the first loss from defaults from the","page_number":40,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"63d0dfc9-ac7d-4fe3-9c0f-7f110ee294f2","block_type":"box","text":"bonds or loans in the SPE and serves to protect the other, more senior tranches from default (though such protection","page_number":40,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"aac59813-c790-455f-b8db-7b4f085e04e6","block_type":"box","text":"is not complete). Since it is partially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":40,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"645d1deb-3785-47c0-b540-1b35809f6709","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":40,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"d4fd44a9-7ebe-41cc-adf4-6f9ea48c2bf4","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":40,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"3d0ad285-10aa-46e6-b135-ad43d1a21b74","block_type":"box","text":"of the underlying collateral by rating agencies, forced liquidation of the collateral pool due to a failure of coverage","page_number":40,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"8951f8fc-82bc-4346-b892-369b17ee886f","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":40,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"db5a106f-7f17-47dc-902d-b055e6023757","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on certain tranches","page_number":40,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"2efb82d2-7329-492f-8009-29816de4a9b6","block_type":"box","text":"of a CDO may be paid in kind or deferred and capitalized (paid in the form of obligations of the same type rather than","page_number":40,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"2dd81547-60de-40ef-b79c-480135f73f02","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":40,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"69e475bd-0fd8-4e8a-b270-1ad07964ac9c","block_type":"box","text":"The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the","page_number":40,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"7163f78d-48a7-42ac-bc44-76384f932c83","block_type":"box","text":"CDO in which a Fund invests. Normally, CBOs, CLOs and other CDOs are privately offered and sold, and thus are not","page_number":40,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"b40ee4e0-816e-4289-89a1-9ae7a4dc21d3","block_type":"box","text":"registered under the securities laws. However, an active dealer market may exist for CDOs, allowing a CDO to qualify","page_number":40,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"06411253-642a-41a2-9e8a-9940600f853d","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":40,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"4871f08f-32d6-44d9-a901-1e376f980fdf","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":40,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"1dcddeb3-e771-4aab-bdf1-80fe1a3a1854","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":40,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"2078426b-391f-4146-8d3a-ed2ae214c3e0","block_type":"box","text":"II-3","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"56878885-fff8-45ff-bbb6-93783fb8ec7b","block_type":"box","text":"NM1026U-5993100-40/236","page_number":40,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"19551317-6074-4326-a54b-c903903c098a","block_type":"box","text":"risk that the collateral may default or decline in value or be downgraded, if rated by a nationally recognized statistical","page_number":41,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"21d0f036-35e0-411e-8c5a-8571f330745c","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":41,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"c6bdbf32-4d41-4fd2-9fdf-89fc16c7f955","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":41,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"3960b28a-0a8e-4122-b3d8-2962d7e1ff1b","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":41,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"cb061735-0bcc-4215-821a-223f0aff96da","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":41,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"60bbbca8-a5a6-4c9d-925a-9d46123cf437","block_type":"box","text":"(vii) the risk of forced “fire sale” liquidation due to technical defaults such as coverage test failures; and (viii) the","page_number":41,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"b53b16f2-f4e5-4c35-a3cc-42ead1c2d137","block_type":"box","text":"CDO’s manager may perform poorly.","page_number":41,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"b6299303-8cf5-49a1-953f-4c2e6d1d166a","block_type":"box","text":"Commercial Paper.","page_number":41,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"3e4cbb23-4531-4fe5-b746-433c0f7dc284","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":41,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"2850b356-9246-48a9-9e73-a6c271df5ebf","block_type":"box","text":"Fund includes “Section 4(a)(2) paper,” a term that includes debt obligations issued in reliance on the “private","page_number":41,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"b9cc24ec-6495-44dd-8475-5d652b6b49e8","block_type":"box","text":"placement” exemption from registration afforded by Section 4(a)(2) of the Securities Act. Section 4(a)(2) paper is","page_number":41,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"13b37ea1-1a50-4b4a-9f26-b44ab5fb90a2","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":41,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"a2eba7db-e28b-4314-bc7e-38125ef43521","block_type":"box","text":"investors such as the Fund through or with the assistance of investment dealers who make a market in the Section","page_number":41,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"c25797e1-da0f-4ceb-a6ef-f15067594d53","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Certain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":41,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"729ecbcd-c019-4035-931f-af65ba46c368","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":41,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"818241d0-6627-4131-85db-1412c200d264","block_type":"box","text":"time of purchase) “A-1” by S&P or “Prime-1” by Moody’s or when deemed advisable by a Fund’s Manager or sub","page_number":41,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"59bc64bd-562e-4789-b376-fb5dc4431410","block_type":"box","text":"adviser, “high quality” issues rated “A-2”, “Prime-2” or “F-2” by S&P, Moody’s or Fitch, respectively.","page_number":41,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"d0c4265f-6d41-4d21-83cc-47ba528bf244","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all fixed income","page_number":41,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"1ab2e37f-06a9-4212-b250-28fb30617341","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":41,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"629d7e4c-13e5-41bc-b95c-9b4dd3623f2f","block_type":"box","text":"paper prices will decline and vice versa. However, the short-term nature of a commercial paper investment generally","page_number":41,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"494a599a-d91b-491d-bd97-65a0f9c8ec3a","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":41,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"bf5bd02a-a31a-47a3-8316-d506ebaf45a0","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":41,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"080a2e51-18f5-4160-98bc-15f89b99ccc7","block_type":"box","text":"debt because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":41,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"c18edfe7-9280-405f-be47-1aec62ab2fb8","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":41,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"a7518f3c-e454-4e9c-bebb-e7602001662d","block_type":"box","text":"Certain Funds seek to gain exposure to the","page_number":41,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"fb44b32b-ad54-4709-8aee-3e0eaa6ba295","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":41,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"e21463f9-1aa4-41c3-b30e-b675aeb86961","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":41,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"9129237e-1eca-4bfa-8cd8-8cd18dc29ade","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":41,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"7806095b-23bd-4c93-aa77-fc3e9fb778ec","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":41,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"a9ed59f1-fc34-4d47-8f4e-2e47748b9a73","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":41,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"335d3c3b-4376-485a-9da6-964b70a1544e","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":41,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"21b0f795-733c-4039-880c-5bfd49b4a02b","block_type":"box","text":"variable.","page_number":41,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"fe53a09c-5840-4ad0-bf2e-44c84f4d2de1","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":41,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"b38f9dae-541b-4d98-8893-b62e2d28bbdf","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":41,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"0760b751-95ea-4087-a4f4-fa26514b5642","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":41,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"3282ddc4-b983-445e-9127-e25d72f0da8e","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":41,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"5e33b418-fac6-45ee-bd69-ccbabda9f74e","block_type":"box","text":"rising inflation, the prices of certain commodities, such as oil and metals, have historically tended to increase. Of","page_number":41,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"44e831c2-346b-4329-bc7d-d4e7df42487b","block_type":"box","text":"course, there cannot be any guarantee that these investments will perform in that manner in the future, and at","page_number":41,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"dac38c89-4d82-43e9-a59a-07b49c001775","block_type":"box","text":"certain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":41,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"5e5c7364-4eef-4b34-b4e7-3f6e146675b6","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different parts of the","page_number":41,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"76c8bc17-dce2-49e5-80b3-c225fa16572f","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in tandem with","page_number":41,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"01325be8-eb98-4f37-b4b6-22ea2599cf4e","block_type":"box","text":"the prices of financial assets and thus may not provide overall portfolio diversification benefits. Under favorable","page_number":41,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"169591ef-e363-489d-a5eb-54264aa52cf8","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-perform an investment in traditional","page_number":41,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"8e9bbbb2-fe54-4f93-877a-a4d8a34b4703","block_type":"box","text":"securities. Over the long term, the returns on the Fund’s investments are expected to exhibit low or negative","page_number":41,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"46d25798-ef6d-43ff-b786-5bd18bbdea21","block_type":"box","text":"correlation with stocks and bonds.","page_number":41,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"e4836895-6544-48d9-9e51-ee5b1b93d489","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":41,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"d2817651-2ef3-4db6-b58a-89320fc98eef","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":41,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"ad8e4d1d-7521-4101-933e-77c5045e01b8","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":41,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"5227fa72-6b9d-4739-8552-273d190e6ddb","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":41,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"24bddbc8-2290-4cce-97ef-357bc9eb2f33","block_type":"box","text":"be predominantly a security if (a) the issuer of the hybrid instrument receives payment in full of the purchase price of","page_number":41,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"5a8bc7a3-d62e-425b-84eb-9fefc06b70ae","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":41,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"2ed7b5f0-905a-4571-ab0d-ec0b21270894","block_type":"box","text":"holder of the hybrid instrument is not required to make any payment to the issuer in addition to the purchase price","page_number":41,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"f371bc93-8e82-4d4b-82b4-74bc47f408d2","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":41,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"58d60399-24bc-4e93-a54a-c99893547396","block_type":"box","text":"instrument or at maturity; (c) the issuer of the hybrid instrument is not subject by the terms of the instrument to","page_number":41,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"81f6561e-8eb3-4dc3-8493-c799aff98ef7","block_type":"box","text":"mark-to-market margining requirements; and (d) the hybrid instrument is not marketed as a contract of sale of a","page_number":41,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"93d6efc3-d100-4d23-8b2e-1bd7de8a4293","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":41,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"8806cbc3-1ff3-4463-b6af-66889a0e49c3","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, partially protected, or offer no principal protection. A","page_number":41,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"ca9b53e3-4b92-46cd-b8d4-42863786489b","block_type":"box","text":"principal protected hybrid instrument means that the issuer will pay, at a minimum, the par value of the note at","page_number":41,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"ea6c42fd-7ce7-413c-ab5c-fdf83584ae55","block_type":"box","text":"II-4","page_number":41,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"57312231-0322-4e3d-8cb1-434f074e2e58","block_type":"box","text":"NM1026U-5993100-41/236","page_number":41,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d7cb28fd-01ed-4a55-8a66-097ee03ea7d5","block_type":"box","text":"maturity. Therefore, if the commodity value to which the hybrid instrument is linked declines over the life of the note,","page_number":42,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"3d5ee2d1-76b4-4ee0-baf7-2dc5e5ab5f86","block_type":"box","text":"the Fund will receive at maturity the face or stated value of the note. With a principal protected hybrid instrument, the","page_number":42,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"a8f6b632-134b-49e4-b66c-270adb98622c","block_type":"box","text":"Fund will receive at maturity the greater of the par value of the note or the increase in its value based on the","page_number":42,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"b517ecb1-f433-4a26-ad25-459dc0985e4d","block_type":"box","text":"underlying commodity or index. This protection is, in effect, an option whose value is subject to the volatility and price","page_number":42,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"c8675d7b-bda3-4b97-b88d-9c5405d687a3","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in part on the","page_number":42,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"274ae726-1653-43e7-8d9f-5ff1604fece6","block_type":"box","text":"cost of the protection. In addition, the protection feature depends upon the ability of the issuer to meet its obligation","page_number":42,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"c121702d-d95a-46d7-b57f-73729d016078","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditworthiness of the issuer. With full principal protection,","page_number":42,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"9a6e3501-eb17-44d7-b08e-457f352dcf7b","block_type":"box","text":"the Fund will receive at maturity of the hybrid instrument either the stated par value of the hybrid instrument, or","page_number":42,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"2657e1cf-3165-47a0-a926-aa9bf00bb7d0","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":42,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"07fc12eb-886a-4bd4-8385-13e6cec30213","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Partially protected hybrid","page_number":42,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"cb0137e5-58e1-4f57-a2f3-2393ae437bbf","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":42,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"daf95c32-33b8-41ed-8edc-479a4a6d00fa","block_type":"box","text":"variable to which the hybrid instrument is linked declines in value during the term of the hybrid instrument. However,","page_number":42,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"92e57896-11f6-4a39-81ec-1a4f56c37755","block_type":"box","text":"partially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":42,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"0df04e1c-2d11-41b9-85b5-470486613c86","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":42,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"c6278e99-b007-41c7-a03a-07e298da9042","block_type":"box","text":"Certain Funds may invest in hybrid instruments that offer no","page_number":42,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"10170eae-abd3-41f3-85e2-229e1c21ede8","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":42,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"0086f74d-92ac-4aba-ab1b-3bf9ef349781","block_type":"box","text":"economic variable may have declined sufficiently in value such that some or all of the face value of the hybrid","page_number":42,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"3213aa77-481c-4422-9c33-18b95c0f072a","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a partially protected principal","page_number":42,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"cc4440d0-b74c-4be5-94a8-e753c42bc9f3","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":42,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"aa815711-4610-4aa6-bc44-c689e098c0c5","block_type":"box","text":"Manager may consider, among other things, the expected performance of the underlying commodity futures contract,","page_number":42,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"8842377a-632f-43fc-b50f-8c9c8cfc330b","block_type":"box","text":"index or other economic variable over the term of the note, the cost of the note, and any other economic factors that","page_number":42,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"4ed0ccc9-1673-4187-93d9-fe08fc7883b9","block_type":"box","text":"the Manager believes are relevant.","page_number":42,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"c78162c6-8ec5-4c59-afde-f1bcd6de961e","block_type":"box","text":"Limitations on Leverage.","page_number":42,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"cd6b5db3-d425-4cbe-9948-62a25907843e","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":42,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"4e38ff99-e623-43f0-b964-cdad2ea7bc1e","block_type":"box","text":"avoid being subject to undue leverage risk, a Fund will seek to limit the amount of economic leverage it has under any","page_number":42,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"076fb6c9-c591-43c2-ba64-9d52abed5c99","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall portfolio. A Fund will not invest in a hybrid","page_number":42,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"abb3231b-ab38-47e4-960c-5c12e3aebed4","block_type":"box","text":"instrument if, at the time of purchase: (i) that instrument’s “leverage ratio” exceeds 300% of the price increase in","page_number":42,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"20c7a7a7-bfd8-4437-be8c-57f81908c358","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “portfolio leverage","page_number":42,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"10ce49c1-2f3b-487b-9412-128d9383df5f","block_type":"box","text":"ratio” exceeds 150%, measured at the time of purchase. “Leverage ratio” is the expected increase in the value of a","page_number":42,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"7140c359-d0e7-4812-a486-3af407363a0e","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":42,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"8a198ce3-d8de-4668-82c4-9332696fa48f","block_type":"box","text":"other economic factor. In other words, for a hybrid instrument with a leverage factor of 150%, a 1% gain in the","page_number":42,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"cd95fb22-acfa-4577-882e-dd0e0e189c47","block_type":"box","text":"underlying economic variable would be expected to result in a 1.5% gain in value for the hybrid instrument.","page_number":42,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"d2fa8f31-fad9-4acb-9c6a-ecd162bd8a20","block_type":"box","text":"Conversely, a hybrid instrument with a leverage factor of 150% would suffer a 1.5% loss if the underlying economic","page_number":42,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"96a77569-e2fe-4b83-8ec4-6e55487af8b7","block_type":"box","text":"variable lost 1% of its value. “Portfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":42,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"bf447ef7-04aa-4626-8a59-4f441594f628","block_type":"box","text":"instruments in a Fund’s portfolio, weighted by the market values of such instruments or, in the case of futures","page_number":42,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"105f7a3f-ac3c-4167-8ffc-17807a88fd07","block_type":"box","text":"contracts, their notional values. A Fund may at times or from time to time decide not to use leverage in its","page_number":42,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"645551ce-bfdb-45cf-a301-68a2563c5258","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":42,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"50c97d12-4830-4cdf-98bb-49bb1901e9cc","block_type":"box","text":"Counterpar ty Risk.","page_number":42,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"58265a08-fe9e-4ca4-b3b0-22a0cf7e9b27","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded futures","page_number":42,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"b2b46f34-d105-4613-b03b-a0d1833b8d33","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":42,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"4054b679-6c08-471b-a98e-41da763fb613","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterparty is the exchange clearinghouse. Exchange","page_number":42,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"1cca4d68-deda-4c77-bdca-af35f98bd1fa","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":42,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"b3b7165b-940b-4c80-ae5e-3cdc2733b496","block_type":"box","text":"e.g.","page_number":42,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"57bb160f-822e-4180-9908-3262a237833c","block_type":"box","text":",","page_number":42,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"ca6ad78f-fd5c-47cc-ba02-149f0af4dcc1","block_type":"box","text":"ratings of AAA or AA by S&P). Therefore, the risk is small that an exchange clearinghouse might be unable to meet its","page_number":42,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"fa6cc75d-40bc-4e67-bb8a-2e97d128dd0a","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterparty credit risk of the","page_number":42,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"dabb45b0-386e-4434-b6ee-786e22a79f2c","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to perform its","page_number":42,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"c48b77a2-4be3-44ed-a855-09c933fde9a4","block_type":"box","text":"obligations under the structured note.","page_number":42,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"ac694a6c-9f1c-4335-ae85-a09014e92872","block_type":"box","text":"Convertible Securities.","page_number":42,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"05917e5f-4066-42a1-8c05-8c1be67d0495","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other security that","page_number":42,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"b5b58a7e-cefa-4e18-a406-c508c13a89e8","block_type":"box","text":"may be converted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":42,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"921a5d59-52f3-47c8-ab08-63ef95a679b6","block_type":"box","text":"a different issuer within a particular period of time at a specified price or formula. A convertible security entitles the","page_number":42,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"57b38e35-710c-4035-9f68-b51930ff2f66","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the convertible","page_number":42,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"68c4a42b-aaeb-489d-9d7b-73f12bbe0d6d","block_type":"box","text":"security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have","page_number":42,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"d8fc69dd-c0ef-4e73-bdd6-88c5caad767a","block_type":"box","text":"characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income","page_number":42,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"2ac2b874-dcf2-4080-9d7d-ea9678e6656b","block_type":"box","text":"with generally higher yields than those of common stocks of the same or similar issuers, but lower yields than","page_number":42,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"5b47649e-c2df-47b4-bbf4-1388e0efb6a8","block_type":"box","text":"comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":42,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"558b82ee-a9dd-4039-92bf-743b07606f0a","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":42,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"94b27d67-ed9e-4ab5-8c26-45ba39dfdaa9","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the convertible security’s investment value.","page_number":42,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"f7c9df46-691e-4c9d-a5fe-a80e6cef6470","block_type":"box","text":"Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":42,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"3d3c4177-0cd1-4e52-b401-8c459f3831d7","block_type":"box","text":"to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the","page_number":42,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"c7c849e3-46b0-4995-925d-a0428970dcfb","block_type":"box","text":"issuer at a price established in the convertible security’s governing instrument.","page_number":42,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"78956bf8-9dc8-4761-8af9-4072572ab46f","block_type":"box","text":"II-5","page_number":42,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"1cd9caa8-e895-4794-ba8e-ca0ba0f061ea","block_type":"box","text":"NM1026U-5993100-42/236","page_number":42,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"320bfb98-bb74-47c7-9506-eba217222b3b","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an investment","page_number":43,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"ed558731-1068-4860-8f62-8962dbb34127","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":43,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"a174423b-6537-44f5-a8f5-0e1e77da53bb","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":43,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"2bc3713e-f013-4943-81a9-32ac0fd0a598","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":43,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"c7d789f7-b2d6-4cef-95a7-b42070d0e989","block_type":"box","text":"in value relative to the underlying common stock due to their fixed-income nature. As a result of the conversion","page_number":43,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"ff205453-1f67-4cb0-b308-9b43e8b0ac9c","block_type":"box","text":"feature, however, the interest rate or dividend preference on a convertible security is generally less than would be the","page_number":43,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"35932c03-a9a3-4378-bd40-e48aa958e08b","block_type":"box","text":"case if the securities were issued in nonconvertible form.","page_number":43,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"a0af43a4-7056-43a3-9b94-2d84bad70e8f","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security relative to","page_number":43,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"b7a6f7e4-5749-48cb-9366-a10b35f3b748","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":43,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"6aa7346d-0a12-4c76-98a3-e874334191aa","block_type":"box","text":"things.","page_number":43,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"d9bee365-f7f0-46bb-9204-65ad54115768","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":43,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"f6ca53ed-61c9-4daa-b711-25ecfaa110e9","block_type":"box","text":"substantial portion of the convertible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":43,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"43b1d99c-7045-4844-8399-f2c6d7451d72","block_type":"box","text":"securities may be quoted in the currency of the country where the issuer is domiciled. As a result, fluctuations in the","page_number":43,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"14276a84-dd8a-4c6b-8d1a-93b9f9537aed","block_type":"box","text":"exchange rate between the currency in which the debt security is denominated and the currency in which the share","page_number":43,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"55c6ae07-dac9-46af-a7b1-4717e6763934","block_type":"box","text":"price is quoted will affect the value of the convertible security. With respect to convertible securities denominated in","page_number":43,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"5332dcb3-2dd0-4cd1-b6c3-2489dee42e43","block_type":"box","text":"a currency different from that of the underlying equity securities, the conversion price may be based on a fixed","page_number":43,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"83077ebf-dec1-4c56-9288-e5cbc2642078","block_type":"box","text":"exchange rate established at the time the security is issued, which may increase the effects of currency risk. As","page_number":43,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"d4593625-63c2-4660-814b-ac59d52e4313","block_type":"box","text":"described below, a Fund is authorized to enter into foreign currency hedging transactions in which it may seek to","page_number":43,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"0d76ce3d-d962-4ecf-a3ad-37363b43b9be","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":43,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"c8f47759-2e23-4de7-b987-7cfe899b319b","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield on","page_number":43,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"172005aa-53d1-46e2-a5ab-8d5325314ebc","block_type":"box","text":"nonconvertible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":43,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"2f030892-dbd3-4586-ba4c-58fc300a0b6b","block_type":"box","text":"convertible security viewed without regard to its conversion feature (","page_number":43,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"086684b9-aff9-4be8-b36c-162050d8645d","block_type":"box","text":"i.e.","page_number":43,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"55aeb5c6-f29a-4def-a6a3-3bbdf19ada40","block_type":"box","text":", strictly on the basis of its yield) is","page_number":43,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"e4711c60-558c-4878-906f-f251b86f84f7","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":43,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"c3fa29ba-f632-4e21-aa26-ec997b7ac1be","block_type":"box","text":"convertible security typically will fluctuate. At the same time, however, the value of the convertible security will be","page_number":43,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"c3cee4dd-2b83-4e2b-841f-fcaa3959d32a","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":43,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"5c922d08-bb1c-43ab-9c94-d95357bac05d","block_type":"box","text":"obtained if the convertible security were converted. Conversion value fluctuates directly with the price of the","page_number":43,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"ad117449-f7e9-4daa-9c2b-aa27d82efc48","block_type":"box","text":"underlying common stock. If the conversion value of a convertible security is substantially below its investment value,","page_number":43,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"6a3c2985-a2a8-4e74-a279-af9b218e8950","block_type":"box","text":"the price of the convertible security is governed principally by its investment value. To the extent the conversion value","page_number":43,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"5e607fc7-9e82-49c0-85a5-dc3348b58df4","block_type":"box","text":"of a convertible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":43,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"a5132537-ce97-429d-92b0-de44d8c9e5bf","block_type":"box","text":"convertible security will be influenced principally by its conversion value. A convertible security will sell at a premium","page_number":43,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"0ac289ee-afb4-47b1-b958-423414a481e7","block_type":"box","text":"over the conversion value to the extent investors place value on the right to acquire the underlying common stock","page_number":43,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"8148a954-0c9e-4ea1-8716-71bccca9ff94","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of convertible securities issued in Japan and","page_number":43,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"cf75d8f9-45de-4cc8-956e-85d6dab41bc4","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":43,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"0fdc79c6-5f88-4a1b-a4f6-0a06f3b37754","block_type":"box","text":"than the securities’ investment value.","page_number":43,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"b6ddfdf3-a2ea-4154-bf31-7a9c22531215","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":43,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"10c4f584-3311-4466-9c3f-73b54b751dd8","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible security may be","page_number":43,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"4e8b01ff-9545-4d8f-bde3-2d0f424290a1","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a charter provision, indenture or other","page_number":43,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"fd1f2f27-d4ad-40c5-9bbf-6e9095c12f0e","block_type":"box","text":"governing instrument pursuant to which the convertible security was issued. If a convertible security held by a Fund is","page_number":43,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"d98335ce-379c-450e-a7f3-b37306af60e4","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, convert it into the underlying common stock","page_number":43,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"39449d4c-22a0-4360-8d63-e109f076fd91","block_type":"box","text":"or sell it to a third party. Certain convertible debt securities may provide a put option to the holder, which entitles the","page_number":43,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"d7402e84-fe87-487d-a27c-fb648c30b77e","block_type":"box","text":"holder to cause the security to be redeemed by the issuer at a premium over the stated principal amount of the debt","page_number":43,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"9fe6854a-c3c8-4b7f-83e4-b7556439ebcd","block_type":"box","text":"security under certain circumstances.","page_number":43,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"8349ff2e-5d2a-48c2-874d-a1aed20f3863","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include either","page_number":43,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"980992e7-ed4c-48ee-946b-10de73dde7da","block_type":"box","text":"Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are instruments that are","page_number":43,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"c8db98bd-8d53-4744-9f46-061e3d15b364","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional convertible securities but may not actually","page_number":43,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"77cbc190-92b2-4d5c-9d48-15fd7a8be274","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":43,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"18e1640e-07dc-49ec-bb82-4e9eb3697a1f","block_type":"box","text":"issue a Cash-Settled Convertible that is convertible into common stock only if the company successfully completes a","page_number":43,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"4f9e841f-e5bb-43ae-95e4-061978647fc4","block_type":"box","text":"public offering of its common stock prior to maturity and otherwise pays a cash amount to reflect any equity","page_number":43,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"64b6b38f-24b8-430d-8045-62ee9442682e","block_type":"box","text":"appreciation. “Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":43,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"7e8eb0fa-47f5-4fbf-991c-e18e60a72725","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":43,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"243c71e4-96fe-40e7-abe6-fa70ee22a2eb","block_type":"box","text":"i.e.","page_number":43,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"6eadddff-fd32-4fa7-b70f-7b4c65b4a9c9","block_type":"box","text":", fixed-income (“fixed","page_number":43,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"b09fc79a-c326-49e8-98c0-1aad988d41a1","block_type":"box","text":"income component”) or a right to acquire equity securities (“convertibility component”). The fixed-income component","page_number":43,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"80d640a0-cf59-48ce-b998-036d0f708508","block_type":"box","text":"is achieved by investing in nonconvertible fixed-income securities, such as nonconvertible bonds, preferred stocks","page_number":43,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"035ec0ef-833d-4f2e-a3f5-df0f95311e90","block_type":"box","text":"and money market instruments. The convertibility component is achieved by investing in call options, warrants, or","page_number":43,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"eb2cecb3-5333-4370-82d7-33b6b6c9ebc3","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":43,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"d745171e-56bb-43a4-917c-ce3e8bff15d4","block_type":"box","text":"II-6","page_number":43,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"48e14bb9-9f86-4ef6-a49b-b6322b223607","block_type":"box","text":"NM1026U-5993100-43/236","page_number":43,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"733448d8-ace1-48e4-95bf-1b208f6c3df0","block_type":"box","text":"specified quantity of the underlying stocks within a specified period of time at a specified price or, in the case of a","page_number":44,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"0eef7314-696b-49e7-917e-e8fbb1b41dc3","block_type":"box","text":"stock index option, the right to receive a cash payment based on the value of the underlying stock index.","page_number":44,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"1fcaaad5-50cd-435e-a55c-34f3b656b773","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a traditional","page_number":44,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"24314ebb-cdf5-4e38-8c2d-4f773b31fc13","block_type":"box","text":"convertible security, which is a single security that has a unitary market value, a Manufactured Convertible is","page_number":44,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"ef5882f7-5e56-47b9-b4e5-87aa380fe365","block_type":"box","text":"comprised of two or more separate securities, each with its own market value. Therefore, the total “market value” of","page_number":44,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"094df11d-f671-426d-aff5-e8a7c4db4421","block_type":"box","text":"such a Manufactured Convertible is the sum of the values of its fixed-income component and its convertibility","page_number":44,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"79f8e582-d682-4806-a18c-59ef7f3bc7c9","block_type":"box","text":"component.","page_number":44,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"ddffcbbc-45a9-485e-acef-ba65e93bc75a","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a traditional","page_number":44,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"3820fb1e-1141-47f7-af7d-8e8e85041944","block_type":"box","text":"convertible security. Because many corporations have not issued convertible securities, the Manager may combine a","page_number":44,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"c48b3f66-e22f-4e02-9d7e-359e4cb277a7","block_type":"box","text":"fixed-income instrument and an equity feature with respect to the stock of the issuer of the fixed-income instrument","page_number":44,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"7add09f5-8041-4455-9cef-5e542fbe9651","block_type":"box","text":"to create a synthetic convertible security otherwise unavailable in the market. The Manager may also combine a","page_number":44,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"ef4701be-5cd8-421f-a70b-21d55f06f626","block_type":"box","text":"fixed-income instrument of an issuer with an equity feature with respect to the stock of a different issuer when the","page_number":44,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"1e2053fc-481d-488a-9349-a66107144b16","block_type":"box","text":"Manager believes such a Manufactured Convertible would better promote a Fund’s objective than alternative","page_number":44,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"9f57ccdf-ab46-4342-990c-676ff6415bd1","block_type":"box","text":"investments. For example, the Manager may combine an equity feature with respect to an issuer’s stock with a fixed","page_number":44,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"d3f95b18-3ddb-47bc-9e25-1268801f7139","block_type":"box","text":"income security of a different issuer in the same industry to diversify the Fund’s credit exposure, or with a U.S.","page_number":44,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"7804cc03-ff3d-4e45-9b81-aad5e907cfac","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional convertible","page_number":44,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"7a5d994f-4875-4117-8e4d-cd606a616215","block_type":"box","text":"security issued by that issuer. A Manufactured Convertible also is a more flexible investment in that its two","page_number":44,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"644b2a05-91f7-4f82-aad6-5cc41405bb96","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":44,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"8f0f3754-e91a-4298-bc1a-fba3ea46f74a","block_type":"box","text":"Manufactured Convertible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":44,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"70460e21-d0f5-4b4e-9663-95d1aae04126","block_type":"box","text":"Convertible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":44,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"6d3d0bb1-1f1a-40b0-8fdf-6f94be21ab26","block_type":"box","text":"favorable market conditions.","page_number":44,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"2805f10e-e0bc-4e50-832c-6652d29b4ded","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a traditional","page_number":44,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"e2f70a70-c96f-42a5-9b8a-67c257e78793","block_type":"box","text":"convertible security with similar characteristics. For example, in the event a Fund created a Manufactured Convertible","page_number":44,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"08614c0d-5313-4c03-bceb-d2fe88553b8b","block_type":"box","text":"by combining a short-term U.S. Treasury instrument and a call option on a stock, the Manufactured Convertible would","page_number":44,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"4e1c512b-eec8-46b7-b741-cf8b76791413","block_type":"box","text":"be expected to outperform a traditional convertible of similar maturity that is convertible into that stock during","page_number":44,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"4f15735e-4959-4a34-a0b8-b45105a95d60","block_type":"box","text":"periods when Treasury instruments outperform corporate fixed-income securities and underperform during periods","page_number":44,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"f281a787-d9e0-46d4-bdf9-3a3c08304fb5","block_type":"box","text":"when corporate fixed-income securities outperform Treasury instruments.","page_number":44,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"26ecb81e-e35b-494e-b401-27782f3ed299","block_type":"box","text":"Corporate Loans.","page_number":44,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"1c2d35e8-7858-40d5-a98a-9629d4a94fed","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":44,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"a0cfffcb-73c8-4bfc-ac66-fb15b820b6c8","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Certain Funds may invest in","page_number":44,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"fe73feb6-ae04-4460-8d76-ae0eb21cc783","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":44,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"e74c9fb4-3b98-45ee-97d3-f63a565facbf","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":44,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"9d39a11e-0181-4d6f-88ec-5e44a7919147","block_type":"box","text":"in such Loans in the form of participations in Loans (“Participations”) and assignments of all or a portion of Loans","page_number":44,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"90d10874-f948-4c8c-895c-204a47a48900","block_type":"box","text":"from third parties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":44,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"03ecf2ce-a376-4196-9478-fc02d579120c","block_type":"box","text":"purposes of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":44,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"8bf5931d-b2fb-4da1-8fc7-1d9f915e21b2","block_type":"box","text":"only with the Lender, not with the borrower. The Fund will have the right to receive payments of principal, interest and","page_number":44,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"89e2d63b-7562-45db-90c7-49a86dbedb9c","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Participation and only upon receipt by the Lender of","page_number":44,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"b3a82cac-1642-4def-b440-96142fe9adb0","block_type":"box","text":"the payments from the borrower. In connection with purchasing Participations, the Fund generally will have no right to","page_number":44,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"ff693cab-1b24-4e51-a78d-13fb3a1f8f61","block_type":"box","text":"enforce compliance by the borrower with the terms of the loan agreement relating to the Loans, nor any rights of set","page_number":44,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"c5f8464c-fb0d-4cde-96c5-5ec471f0216e","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral supporting the Loan in which it has","page_number":44,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"c9e6eb2c-0fc0-41c7-8170-9b8693df9673","block_type":"box","text":"purchased the Participation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":44,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"e4b5edca-3e6b-4e41-a35e-2e1bde4bfc9a","block_type":"box","text":"that is selling the Participation. In the event of the insolvency of the Lender selling the Participation, the Fund may be","page_number":44,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"48af8d25-fa13-4948-8577-3a1641d3398c","block_type":"box","text":"treated as a general creditor of the Lender and may not benefit from any set-off between the Lender and the","page_number":44,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"3d475e0e-7cb6-4f17-a5a7-3aca2e18e520","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and the borrower is","page_number":44,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"4e728e88-5132-4050-b427-056bf0661250","block_type":"box","text":"determined by the Fund’s manager to be creditworthy. When the Fund purchases Assignments from Lenders, the","page_number":44,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"d06d8628-b87b-4c12-bf5c-def74549220c","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterparty’s credit","page_number":44,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"8585efc2-1c72-4295-94e7-3bd0e7f3c077","block_type":"box","text":"risk. The Funds may enter into Participations and Assignments on a forward commitment or “when-issued” basis,","page_number":44,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"3c352448-857c-4b60-8d3f-8349fb74b9ba","block_type":"box","text":"whereby a Fund would agree to purchase a Participation or Assignment at set terms in the future. For more","page_number":44,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"11abfe7c-30a9-4bfe-92cc-53afe6dda548","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":44,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"dbd6e627-929a-4f4b-87c2-91956180f6e8","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":44,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"959fe942-3911-4bfa-afce-b6f1dfdc8289","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market for such","page_number":44,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"a178e453-6e21-441e-8c52-9bdbcc6b0dce","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":44,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"4d1377c5-dabe-458b-a20b-6bec85e8e381","block_type":"box","text":"could be sold only to a limited number of institutional investors. The lack of a sufficiently liquid secondary market","page_number":44,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"33522b5a-ee7b-4138-98aa-d99b4fabe65c","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of particular","page_number":44,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"dfddfafb-8828-4baf-8c96-4748fa2eb78e","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the creditworthiness","page_number":44,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"89655b2a-0f46-4014-b088-9a1f52f33de4","block_type":"box","text":"of the borrower.","page_number":44,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"504c9886-57a6-4f85-aa01-65fe13244ab9","block_type":"box","text":"II-7","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"a14d273b-298c-4f60-9819-b1ccfc105b16","block_type":"box","text":"NM1026U-5993100-44/236","page_number":44,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4c778a1e-adb9-4468-9cc1-106011b0345c","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":45,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"783c925b-c5a3-42ec-aca5-72d60cfb88c6","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":45,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"aaf5ceb9-14f2-4400-9d7e-fe7c01461cf3","block_type":"box","text":"Failure by the syndicate agent to fulfill its obligations may delay or adversely affect receipt of payment by the Fund.","page_number":45,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"9cff1d32-29c7-489b-b1a1-e7b451150cca","block_type":"box","text":"The Loans in which the Fund may invest are subject to the risk of loss of principal and income. Although","page_number":45,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"2fb1d190-a11b-4b11-a3d7-0b190a388fb0","block_type":"box","text":"borrowers frequently provide collateral to secure repayment of these obligations they do not always do so. If they do","page_number":45,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"907d9f83-c810-47ae-8930-9b3a7e0a04e7","block_type":"box","text":"provide collateral, the value of the collateral may not completely cover the borrower’s obligations at the time of a","page_number":45,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"d336deee-dd69-4990-9280-2e012fcee635","block_type":"box","text":"default. If a borrower files for protection from its creditors under the U.S. bankruptcy laws, these laws may limit a","page_number":45,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"3e4ab18a-48bc-4be4-a633-2130fffe9b22","block_type":"box","text":"Fund’s rights to its collateral. In addition, the value of collateral may erode during a bankruptcy case. In the event of","page_number":45,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"216ba321-b6ed-4fc4-a94c-75536afb57bc","block_type":"box","text":"a bankruptcy, the holder of a Loan may not recover its principal, may experience a long delay in recovering its","page_number":45,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"6eb11b40-becb-4d41-8c4a-cdb8022d9ede","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":45,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"f42bf47c-9432-4ac4-8725-a0411d04e7c1","block_type":"box","text":"Transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of","page_number":45,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"a99d2db8-85e1-4bc0-a4dc-88cc2d9079f8","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":45,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"70e9c7ec-2cff-4b93-8f51-1c90e955f18c","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to short-term liquidity needs, a Fund may hold","page_number":45,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"427c3ca6-9b70-4db7-88d3-43c061a2f54e","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":45,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"a8a0ca44-29de-4dbd-8677-3d1dbe64862f","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities laws.","page_number":45,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"23089210-70c9-45f8-a605-9cfa30c18889","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":45,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"b11cc7a1-0338-488b-a525-7c486e93e389","block_type":"box","text":"interests in Loans, such as the Funds, may not have the protection of the anti-fraud provisions of the federal","page_number":45,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"a4471108-df99-4b23-b818-b9ba1facb20b","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, parties generally would","page_number":45,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"049fc907-b247-45b5-a7e8-62ddecfa475d","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":45,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"30c87d6c-0ac6-4f80-abbe-b5b84b1b306d","block_type":"box","text":"state law.","page_number":45,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"68c8a486-b3d7-4124-8cc5-c5a6e47437f7","block_type":"box","text":"Direct Lending.","page_number":45,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"e524ab7a-0382-4add-ab30-aa9da5db199a","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":45,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"e45a62ab-bf8b-4c84-866c-8a22836d70a6","block_type":"box","text":"between the Fund and a borrower may not be administered by an underwriter or agent bank. The Fund may provide","page_number":45,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"8d3ef13c-5847-48ee-9a4d-febaaf28fbda","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":45,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"437058bd-998e-4ee5-b486-3d4821f8f876","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":45,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"e0e28df8-ed02-434e-80a1-95be6bd16264","block_type":"box","text":"Furthermore, a direct loan may be secured or unsecured.","page_number":45,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"8420a77e-033d-4863-af41-342802189f6b","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the","page_number":45,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"59500160-279e-4192-aab3-f87cab4e2475","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":45,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"1b40bcb7-9ebf-4fd7-a91d-c8cd48b5b1a3","block_type":"box","text":"loans are substantially similar to those associated with investing in corporate loans. In making a direct loan, the Fund","page_number":45,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"8a223772-39f7-4551-a3f2-17669312ef21","block_type":"box","text":"is exposed to the risk that the borrower may default or become insolvent and, consequently, that the Fund will lose","page_number":45,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"59ad4fa5-51bf-4d80-b935-66d5981247b4","block_type":"box","text":"money on the loan. Furthermore, direct loans may subject the Fund to liquidity and interest rate risk and certain","page_number":45,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"54a42fb8-249b-4022-9222-8d87c789908d","block_type":"box","text":"direct loans may be deemed illiquid. Direct loans are not publicly traded and may not have a secondary market. The","page_number":45,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"47f28bef-4050-4454-bfc5-ce6ba67bfcad","block_type":"box","text":"lack of a secondary market for direct loans may have an adverse impact on the ability of the Fund to dispose of a","page_number":45,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"54fabe22-4a4e-4052-b528-1ae71aa50a4a","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":45,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"c4318cd2-d5b4-4510-bacd-33c11c048af9","block_type":"box","text":"When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the Fund to","page_number":45,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"0df7a1c6-7813-438a-942f-2dd2e8896644","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":45,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"0ecc0f6b-84dd-4232-8795-e575dc453b86","block_type":"box","text":"Increased competition for, or a diminishment in the available supply of, qualifying loans could result in lower yields on","page_number":45,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"f970090d-40e0-44a2-be4c-acbe27d7e233","block_type":"box","text":"such loans, which could reduce Fund performance.","page_number":45,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"609be300-e13a-4985-aaa1-535aece0b2c6","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":45,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"473fc01c-fb61-45d3-b15d-369790abbaef","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":45,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"ef60edd2-fe7e-4d6d-b5b0-50805261e3bb","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":45,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"963edbe0-3813-465a-9c2b-f3833a6de5c8","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":45,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"b6b3bd1d-968c-430f-b1fc-39cdb014b8a7","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":45,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"1ca9d065-d928-45ec-b7cb-8f43d2854922","block_type":"box","text":"Credit Linked Securities.","page_number":45,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"a756c219-14c1-4084-97c5-8ebda89a4b7d","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":45,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"1ce48987-f8fd-4a09-8041-169d8977ee3a","block_type":"box","text":"securities, which are issued by a limited purpose trust or other vehicle that, in turn, invests in a derivative instrument","page_number":45,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"1128fc0b-15d7-466a-a0df-3c906674d530","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":45,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"38e70115-b879-4b4b-9ed0-176837a855e9","block_type":"box","text":"to provide exposure to certain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":45,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"ff524615-0d3b-4461-8b11-c4872226a1bd","block_type":"box","text":"cash management tool in order to gain exposure to a certain market and/or to remain fully invested when more","page_number":45,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"2df9ca35-100d-46ea-8815-20b5d598f10c","block_type":"box","text":"traditional income producing securities are not available.","page_number":45,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"e7a45261-d7c4-4c85-a72c-eafb0cc9a9d0","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":45,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"4369d80e-0ec4-432a-9c76-4f2e60d51d5d","block_type":"box","text":"income payments (in the form of distributions) and payment of principal at the end of the term of the security.","page_number":45,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"8957e0ff-2e4e-48a3-9223-b1d83ace4dbe","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":45,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"c167dab3-97a5-44fd-92fe-31ccf5822b1d","block_type":"box","text":"obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For","page_number":45,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"b399efb3-ecff-45ce-b3da-90c8ce3db36d","block_type":"box","text":"instance, the issuer may sell one or more credit default swaps, under which the issuer would receive a stream of","page_number":45,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"95826a19-4988-4eb2-a067-f3ad6c17480f","block_type":"box","text":"II-8","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"2473c551-d570-4bcc-b521-c8229a626b00","block_type":"box","text":"NM1026U-5993100-45/236","page_number":45,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"34e076af-5698-46c1-9d90-7f70466535be","block_type":"box","text":"payments over the term of the swap agreements provided that no event of default has occurred with respect to the","page_number":46,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"25e9fec7-4ba8-4441-ab69-6dca157f2f06","block_type":"box","text":"referenced debt obligation upon which the swap is based. If a default occurs, the stream of payments may stop and","page_number":46,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"cb5f2a9c-0797-4ec7-ad08-6a9894d44047","block_type":"box","text":"the issuer would be obligated to pay the counterparty the par (or other agreed upon value) of the referenced debt","page_number":46,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"c728b11b-2045-4192-a061-26aabd1eede3","block_type":"box","text":"obligation. This, in turn, would reduce the amount of income and principal that a Fund would receive. A Fund’s","page_number":46,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"4e368943-ccb8-4e7e-88e6-16e96d202ffe","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":46,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"cd76b361-c4a3-4aed-9d89-2d8a38c03042","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and","page_number":46,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"0e09f1e8-4c71-4453-8682-a47eebd9fef8","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":46,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"d6cab1e9-4365-4d15-b7b6-599a9fb42e95","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":46,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"4c22f58c-ed5f-4891-a2c9-1b1645edbb42","block_type":"box","text":"investments.","page_number":46,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"1dde69a1-5a66-4b7f-a79e-4ea9075d1af8","block_type":"box","text":"Debt Securities.","page_number":46,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"e65e88ac-2d07-4ee5-ba5b-16af857d61e0","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":46,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"9ed774d5-0883-4890-8294-2df6eb3117de","block_type":"box","text":"timely payments of principal and interest. The degree of credit risk depends on the issuer’s financial condition and on","page_number":46,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"15071acd-bb2a-4591-947e-b8f051468b31","block_type":"box","text":"the terms of the debt securities. Changes in an issuer’s credit rating or the market’s perception of an issuer’s","page_number":46,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"e1fb57de-bc35-41e3-bc57-b98aaead2c34","block_type":"box","text":"creditworthiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":46,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"44a0dfcb-420c-447e-8f12-bb617311afcc","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":46,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"23209bd0-db4c-416e-8971-4258b4008d11","block_type":"box","text":"All debt securities, however, are subject to interest rate risk. This is the risk that the value of the security may","page_number":46,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"038bf7a3-eaaa-435c-8159-20a293770f16","block_type":"box","text":"fall when interest rates rise. If interest rates move sharply in a manner not anticipated by Fund management, a","page_number":46,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"a7eb896e-816c-47fb-9e92-48a189189ff5","block_type":"box","text":"Fund’s investments in debt securities could be adversely affected and the Fund could lose money. In general, the","page_number":46,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"fa5c8c1f-d42d-4471-8e2a-194d1311f5c3","block_type":"box","text":"market price of debt securities with longer maturities will go up or down more in response to changes in interest","page_number":46,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"abb049c6-44d1-4896-8f1f-b7b585ab0f11","block_type":"box","text":"rates than will the market price of shorter-term debt securities.","page_number":46,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"022a45fd-8120-4063-bed5-2b01dc19e4c3","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended because of","page_number":46,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"b941ca71-f042-4f2d-84fa-58fd4462d329","block_type":"box","text":"slower than expected principal payments. This may lock in a below-market interest rate and extend the duration of","page_number":46,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"fd74af4d-81d7-4b1f-a21c-7cc2662dd4dd","block_type":"box","text":"these fixed-income securities, especially mortgage-related securities, making them more sensitive to changes in","page_number":46,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"44d78320-0680-4205-af06-60cc173256bc","block_type":"box","text":"interest rates. As a result, in a period of rising interest rates, these securities may exhibit additional volatility and","page_number":46,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"5df1e53d-2972-4372-9200-cbfab49c1df7","block_type":"box","text":"lose value. This is known as extension risk.","page_number":46,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"5b90b607-4e43-4c2c-a76e-7501d351e4ee","block_type":"box","text":"The value of fixed-income securities in the Funds can be expected to vary inversely with changes in prevailing","page_number":46,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"3253f0e2-8e4c-4f6f-a5b1-09316d765c14","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":46,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"59460d51-4410-4e4a-8bf1-14950e7799e4","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shorter maturities. The Funds are not","page_number":46,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"9a9477c0-9f55-4fa3-b198-d3fefa89a830","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual portfolio securities, and the average","page_number":46,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"50bab963-b149-4547-836f-6a71ce565afd","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":46,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"ac96bce8-32e8-4aed-9f15-c351bd27657c","block_type":"box","text":"Floating and Variable Rate Securities","page_number":46,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"2e16fd8d-925e-4db5-9534-17fb21902ad9","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable coupon","page_number":46,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"55a6911a-7488-43ab-84fa-69765a4140ed","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":46,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"b9a584bc-ffe6-4a15-b572-01ddc227ca4f","block_type":"box","text":"with fixed interest rates, but may decline in value if their interest rates do not rise as much, or as quickly, as interest","page_number":46,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"80c64146-176c-438b-a35e-f91b62a7c3e3","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":46,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"4f9f157c-9855-40b6-9e9b-1b79f0ebeebb","block_type":"box","text":"impact of interest rate changes on floating rate investments is typically mitigated by the periodic interest rate reset of","page_number":46,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"58b00088-a555-4b9e-9571-d257d4abee19","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":46,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"43c4bd1d-13ba-438f-b8e3-0934c84be45f","block_type":"box","text":"market interest rates.","page_number":46,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"fa199ad9-17de-4571-b2a5-abc324a43691","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":46,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"6ae58983-7c72-4a90-aa32-51f74dc9ddd0","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":46,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"728bd84e-c3bd-4d62-bede-855dbfc68006","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":46,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"73a47d0f-adf9-496e-badb-1b8260dc2e54","block_type":"box","text":"common. The U.S. Treasury and some other issuers use a structure that accrues inflation into the principal value of","page_number":46,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"e88c54d4-672e-4add-be96-a8e868bfaefc","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as part of a semi-annual coupon.","page_number":46,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"04e31cbd-d920-4cc9-bb3d-fdc75ac90e7c","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years, although it is","page_number":46,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"3a785e8d-b3df-47a6-bfd3-4733937a62ae","block_type":"box","text":"possible that securities with other maturities will be issued in the future. The U.S. Treasury securities pay interest on","page_number":46,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"455f68ad-0563-4909-ac13-06aa68002db7","block_type":"box","text":"a semi-annual basis, equal to a fixed percentage of the inflation-adjusted principal amount. For example, if a Fund","page_number":46,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"61fcda22-4af6-427f-b4e6-b817a0ac2abd","block_type":"box","text":"purchased an inflation-indexed bond with a par value of $1,000 and a 3% real rate of return coupon (payable 1.5%","page_number":46,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"519b78c4-c4d6-4fd3-a39a-97c5a88151bc","block_type":"box","text":"semi-annually), and inflation over the first six months was 1%, the mid-year par value of the bond would be $1,010","page_number":46,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"734b8153-0737-4ceb-a7d3-d3e73891a353","block_type":"box","text":"and the first semi-annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half","page_number":46,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"4b74c27c-feab-4e97-9b88-cad1b54bba28","block_type":"box","text":"of the year resulted in the whole year’s inflation equaling 3%, the end-of-year par value of the bond would be $1,030","page_number":46,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"b5fbf6cc-b5d0-4fc4-8a43-6cc091e1df5d","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":46,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"259e62ce-7e85-45d2-9c07-2d605f214a61","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":46,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"b3a4f4ce-acaa-40d5-b233-e995c5f87bec","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":46,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"fb74ceb8-d369-42db-bc71-34603557e96d","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":46,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"6ec9463f-a453-4a9a-8879-77224e7cb16e","block_type":"box","text":"guaranteed in the case of U.S. Treasury inflation-indexed bonds, even during a period of deflation. However, the","page_number":46,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"06d0d7fc-86ab-4279-ae99-dbd0b678963f","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Certain Funds may also invest in other","page_number":46,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"8773dab9-1e6f-4e7b-a627-a5d8ee78acde","block_type":"box","text":"inflation related bonds which may or may not provide a similar guarantee. If a guarantee of principal is not provided,","page_number":46,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"df584c54-7e81-4f93-bc24-9cdf04134655","block_type":"box","text":"II-9","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"1473a6d8-c1f4-42fd-bc19-91eb3b13a618","block_type":"box","text":"NM1026U-5993100-46/236","page_number":46,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fd10e11b-2639-4e96-96c3-0f8fef20eda0","block_type":"box","text":"the adjusted principal value of the bond repaid at maturity may be less than the original principal. In addition, if the","page_number":47,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"d19c6564-9693-4ea6-9255-fe32018e0f5b","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":47,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"65bad3a7-38b5-4dea-b602-5a86885b3819","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":47,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"756ad8e5-fc8f-44a0-86e7-87bc9ec00155","block_type":"box","text":"The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real","page_number":47,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"8a64ae0a-473b-4f86-8fd5-83afd8d3e23e","block_type":"box","text":"interest rates, in turn, are tied to the relationship between nominal interest rates and the rate of inflation. Therefore,","page_number":47,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"a7a4e2c9-f5e6-48fa-9836-3e21d9e7f16e","block_type":"box","text":"if inflation were to rise at a faster rate than nominal interest rates, real interest rates might decline, leading to an","page_number":47,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"f46e8dcf-5091-4886-92e5-abeb1166a807","block_type":"box","text":"increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increased at a faster rate than","page_number":47,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"7c22c743-02ec-454f-9de1-6abfffd07879","block_type":"box","text":"inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds. There can be no","page_number":47,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"9bffce90-a4a3-4d80-a7bc-fd2337b451ca","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":47,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"326059ce-82cc-4cc4-b8f2-02fe2eea4749","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term increases in","page_number":47,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"eb2dc98e-3714-421c-b1c1-8dfa1552e47e","block_type":"box","text":"inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation (for example, due to","page_number":47,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"11f0527a-1b97-46da-bdc5-5ddee958fa4f","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":47,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"e60a3d34-cc59-4937-b3a6-c27280af5157","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":47,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"139f642d-03dc-4607-a847-382872e0b083","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":47,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"d1f658c8-45e5-4e4e-9618-6c21278420f7","block_type":"box","text":"Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S. Bureau of Labor","page_number":47,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"224b7eba-fb3b-4f5f-8020-d77f968c9797","block_type":"box","text":"Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing,","page_number":47,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"135e3683-329a-4a9a-b7f3-25a6438bca1c","block_type":"box","text":"food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":47,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"0396f30a-8ce7-4170-9497-1c0cf1324aa4","block_type":"box","text":"reflect a comparable inflation index, calculated by that government. There can be no assurance that the CPI-U or any","page_number":47,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"cc290c53-0beb-45eb-9a6a-5143988d6768","block_type":"box","text":"foreign inflation index will accurately measure the real rate of inflation in the prices of goods and services. Moreover,","page_number":47,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"b53bf890-6b07-42a3-b152-75233809cbbc","block_type":"box","text":"there can be no assurance that the rate of inflation in a foreign country will be correlated to the rate of inflation in the","page_number":47,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"489abbb2-a471-4344-bd56-576aa9312b3d","block_type":"box","text":"United States.","page_number":47,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"884faca0-0523-494d-bfb8-85be4b8a8e38","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":47,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"7fea3cd7-aafb-456b-8127-37c9af5318c2","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":47,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"108e6bd4-8171-4960-907b-142b52104bb0","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":47,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"2c8ff417-795b-4e77-8268-63fd75334e12","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which are","page_number":47,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"bc4e4f26-0399-4eda-b6a7-280ab4f73f06","block_type":"box","text":"securities rated in the four highest rating categories of an NRSRO or deemed to be of equivalent quality by a Fund’s","page_number":47,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"0e925981-4f24-4d02-8423-1cf8d786a9a5","block_type":"box","text":"Manager. Certain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":47,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"a8dc2850-43d4-4385-a38f-17de65a3545b","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":47,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"b6887a2d-796c-4fda-93f8-b23e928755a5","block_type":"box","text":"i.e.","page_number":47,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"35f2e8c9-d5e9-4c8f-bce5-4ba444680ed9","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":47,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"2398b2c1-5be3-4adf-9c6e-b510d3068381","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":47,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"600800e7-9ab0-484b-a3fa-921d6454c584","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":47,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"638c5af3-d7ef-44c0-a58f-7e17886fc81c","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":47,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"bdcc96b3-9239-4b5e-b946-9d48be62b2ce","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":47,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"7a62e768-7c1a-4e58-ad6b-e2b567cf8958","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":47,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"3164f9a3-b0b7-471e-a26c-b6ae596bce80","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":47,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"2cbaf7bb-5d0b-44e4-9773-5f2281e57390","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to investors as","page_number":47,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"c307064c-374c-44be-85cb-165bd8691943","block_type":"box","text":"“junk bonds” are debt securities that are rated below investment grade by the major rating agencies or are securities","page_number":47,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"d710058b-6556-41f2-9e8f-947587a2ef60","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and opportunity","page_number":47,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"679deece-7f4e-409c-9b8e-27d1ba798539","block_type":"box","text":"for gain, non-investment grade debt securities may be subject to greater risks than securities which have higher credit","page_number":47,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"35389211-7519-4610-9bf8-56d154a07cd5","block_type":"box","text":"ratings, including a high risk of default, and their yields will fluctuate over time. High yield securities will generally be","page_number":47,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"069dbf41-282c-4133-ac40-f55065317f19","block_type":"box","text":"in the lower rating categories of recognized rating agencies (rated “Ba” or lower by Moody’s or “BB” or lower by S&P)","page_number":47,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"560ab85d-90e3-4011-9886-aecb9a95007b","block_type":"box","text":"or will be non-rated. The credit rating of a high yield security does not necessarily address its market value risk, and","page_number":47,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"32015c2e-3a02-483a-9f7c-b00a615edab9","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":47,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"a87bec75-a82c-4ca6-adf6-3963619077c8","block_type":"box","text":"condition. High yield securities are considered to be speculative with respect to the capacity of the issuer to timely","page_number":47,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"d8b401e7-3f2e-46a8-8c1e-5e2ef9ca6e89","block_type":"box","text":"repay principal and pay interest or dividends in accordance with the terms of the obligation and may have more credit","page_number":47,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"569ba2f7-502a-48b0-b5f2-1a3d7adea2c0","block_type":"box","text":"risk than higher rated securities.","page_number":47,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"8aaca5f9-5c62-4141-af21-0a6bc1efbff7","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":47,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"11c12a27-5da7-41d1-9df1-c0c727baaee0","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"43887ed6-6ed2-4d87-96c7-4ef8e9354c68","block_type":"box","text":"Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to adverse changes","page_number":47,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"af189200-b2d2-47d1-9c62-49900811b79e","block_type":"box","text":"in the issuer’s industry and to general economic conditions. Issuers of junk bonds may be unable to meet their","page_number":47,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"74fe85dc-5d11-4cad-8c96-8c2bfb212ae9","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":47,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"8ff74026-ea40-4ff4-8451-75929e3ac72d","block_type":"box","text":"unavailability of additional financing.","page_number":47,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"bfa055f6-b586-4847-b1dc-46d01f36cff9","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"379237b0-0c8f-491e-b432-a810c7aaf09d","block_type":"box","text":"The issuers of junk bonds may have a larger amount of outstanding debt relative to their assets than issuers of","page_number":47,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"0877b7a4-c56d-4fca-89f2-4790dfc77f77","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":47,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"9a327107-2676-44e0-9be4-232813e678ee","block_type":"box","text":"The issuer’s ability to pay its debt obligations also may be lessened by specific issuer developments, or the","page_number":47,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"091a7bae-2ad5-4292-a2e4-6e9514b0e2f6","block_type":"box","text":"II-10","page_number":47,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2088bf74-477a-4bfb-af09-ac5bf0fc910d","block_type":"box","text":"NM1026U-5993100-47/236","page_number":47,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"af5561dd-c829-440b-8f49-f72ee3734aa3","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":48,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"53f26683-1279-4d24-a02e-bcfb7474d3d3","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":48,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"cada5057-3f79-4054-8c4e-613f97d8c5e7","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"046dbfa9-30d8-482d-b593-86345b0e1714","block_type":"box","text":"Junk bonds are frequently ranked junior to claims by other creditors. If the issuer cannot meet its obligations, the","page_number":48,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"c69ceafb-35f8-4072-91c4-e4ea29dec756","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":48,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"d4f26086-363d-49a9-976c-f8da4f52d723","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":48,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"50a5c65a-fe0b-447c-8cf5-877c2961f8eb","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":48,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"9ebffb01-1485-4450-8652-2755a63aaada","block_type":"box","text":"investors in higher rated securities.","page_number":48,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"d536b9cb-6b69-407c-a152-bd2e7bbd4074","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"2bc3c084-7881-4779-a532-4b68df4a30a4","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":48,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"28b7049c-091b-4697-ae2a-94c65d251670","block_type":"box","text":"before it matures. If an issuer redeems the junk bonds, a Fund may have to invest the proceeds in bonds with","page_number":48,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"2b357052-c74c-4b11-968c-baf5c9379870","block_type":"box","text":"lower yields and may lose income.","page_number":48,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"89abcbc6-05bf-444a-bfc9-84c14d77db5e","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"c254ee21-840b-4740-9cc6-65cd6243c125","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":48,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"49746795-60eb-4653-9d2a-6ea5a6d4c151","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":48,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"9851f74f-8f3e-490b-bb6f-e50c43b9f496","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"0674d76d-f9cc-43d7-a945-73e8c3e5a899","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":48,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"cfe744ed-4881-4341-91f0-584bce9014c7","block_type":"box","text":"Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":48,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"bc75905f-d07e-4a01-a3f9-e886b09ec616","block_type":"box","text":"securities due to the limited number of investors in that sector of the market. There are fewer dealers in the junk","page_number":48,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"49720893-b82e-4a68-819b-cc8715e4edf0","block_type":"box","text":"bond market, and there may be significant differences in the prices quoted for junk bonds by the dealers, and","page_number":48,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"71962058-c1da-4fbb-b217-70cdadcf38cc","block_type":"box","text":"such quotations may not be the actual prices available for a purchase or sale. Because junk bonds are less","page_number":48,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"9ad39cd6-fc1e-443c-9f46-cf9921753f68","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing certain of a Fund’s portfolio securities","page_number":48,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"87c63ff7-442f-497c-af22-223194d6343d","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":48,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"784e2301-828f-4f59-8071-a2d17a789a63","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"25a69c4c-ccc1-43ef-a086-809ddd21a9ee","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":48,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"cc3fc0e2-d474-40be-b174-c3abdc37a212","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":48,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"4eb8afc8-c613-4e65-837d-eb9064176cc1","block_type":"box","text":"participants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":48,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"e916fbce-c5e1-4514-b69c-41b8ba573cd0","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":48,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"0272bb61-25bf-4be3-abd0-645866cae117","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":48,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"0cc0f8f0-cfbc-484f-abc1-adf2c6a559c5","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a particular issuer. Under","page_number":48,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"ae364b72-1e4a-4d73-a370-7df701eb3036","block_type":"box","text":"certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities","page_number":48,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"10f50eeb-a40f-4567-9d1e-f7c145d9bf47","block_type":"box","text":"due to the limited number of investors in that sector of the market. An illiquid secondary market may adversely","page_number":48,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"e8c0e127-ebac-46de-a441-58215337a56a","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the particular","page_number":48,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"412f841c-dc47-4e1a-b4c4-e472e5f1724a","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":48,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"b7654fc3-cb5f-402e-90c6-c7594245ce5c","block_type":"box","text":"on high yield securities are available only from a limited number of dealers, and such quotations may not be the","page_number":48,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"196c144a-4061-4421-b247-81a6ff3a5efb","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":48,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"6168ae83-1c78-4c6d-9d09-def209200aa1","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":48,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"bcf911af-504a-453b-9f99-bcde78986fcd","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more important","page_number":48,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"002d8b44-0b1f-4e3f-ba38-6382367d19fb","block_type":"box","text":"role in determining such valuations.","page_number":48,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"41660609-6311-4e13-a662-2f5a60796fa7","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"22ffdbda-6954-4322-8157-b30542bab34d","block_type":"box","text":"A Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with","page_number":48,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"e1127854-f55a-4d52-a74c-6520e73a9603","block_type":"box","text":"a defaulting issuer.","page_number":48,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"c5ea5b24-e447-44ac-8507-83fff31248dc","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"eeff65ef-f86c-43d9-890e-ff0b2940436d","block_type":"box","text":"The junk bond markets may react strongly to adverse news about an issuer or the economy, or to the perception","page_number":48,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"da67f72e-d696-4b9e-bd78-05dcca854ec0","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":48,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"ea5938b5-778d-4f36-bf0c-0fed894055e9","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":48,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"c84dfac5-adcd-4d07-ad9a-468112a1f0a3","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":48,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"cc0891c3-b893-464b-9fb7-a396bcc79a0a","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":48,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"a91f3ba8-cda0-4632-b58f-ac9bb6810670","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":48,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"75dfae30-4e41-428c-a168-fec5a6686481","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by certain","page_number":48,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"eb5db016-383a-4035-a487-ac488b6a35f6","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":48,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"3625a804-622e-4582-979b-b49edfe274f4","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"cd4cc3f3-2fdc-4054-80fb-5ff19c857cde","block_type":"box","text":"The rating assigned by a rating agency evaluates the issuing agency’s assessment of the safety of a non","page_number":48,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"ca99ee6a-c94f-4599-adad-fa769b6c8c7f","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":48,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"7f37e8fa-b657-4b01-8884-213ba094011f","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":48,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"3471a2db-577e-479e-a5cc-4be1b2094e7d","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser performs its own analysis of the","page_number":48,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"58b8a649-b8bb-4ed5-b267-84eabaa468a0","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s performance may","page_number":48,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"8d1b2cf5-0d5e-49d1-a8fa-65657ba05ca1","block_type":"box","text":"depend more on the Manager’s or sub-adviser’s own credit analysis than in the case of mutual funds investing in","page_number":48,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"c37c1016-98d6-46ec-a9e2-06b408a24797","block_type":"box","text":"higher-rated securities.","page_number":48,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"61260f22-8f63-4f6d-aafa-285454bcf392","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":48,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"ee401486-c1b1-45d8-842a-627330a128a9","block_type":"box","text":"relating to the creditworthiness of issuers, the ratings and performance of the securities, the protections afforded","page_number":48,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"10174657-47d7-4d8a-824e-57542235fb25","block_type":"box","text":"the securities and the diversity of the Fund. The Manager or sub-adviser continuously monitors the issuers of non","page_number":48,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"d1fa6739-c57f-46ee-a974-f75fc600e830","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":48,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"91c78d52-4e67-4bc3-843a-f32fdc7af3d2","block_type":"box","text":"II-11","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"02f175c2-5642-437b-bab2-807d1311ac56","block_type":"box","text":"NM1026U-5993100-48/236","page_number":48,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b8ebe6da-d4be-4350-a65d-3e32ba454cf1","block_type":"box","text":"well as in an effort to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":49,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"9a8e5e5a-209a-4879-9e8b-4961a9504754","block_type":"box","text":"is reduced below the minimum credit rating that is permitted for a Fund, the Fund’s adviser or sub-adviser will","page_number":49,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"ef66175a-fc09-41fa-93ac-29ab28c60861","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":49,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"e0b1594c-1ada-4546-99cb-3523c0d1fc85","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":49,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"54ad8402-96be-495a-a7ba-a9fa672adf9d","block_type":"box","text":"the Fund could be forced to sell its holdings without regard to the investment merits, thereby decreasing the assets","page_number":49,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"0aef2f05-05e3-4a81-bc86-f6fa701dc5ee","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":49,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"1306314a-4936-43cd-aba9-d105db30908c","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":49,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"ba3f5d9f-1dcd-44b4-94a0-5a30259b7c35","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":49,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"4db84d01-2788-46f2-8fc0-3c37301794cf","block_type":"box","text":"Mezzanine Investments.","page_number":49,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"c705e468-8dd1-49db-b52f-38969da5ac83","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a specific","page_number":49,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"a7206adb-379f-467b-9bb5-347c2c631850","block_type":"box","text":"credit quality, may invest in certain high yield securities known as mezzanine investments, which are subordinated","page_number":49,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"4031c357-97b3-42db-b7ae-e41e3a949dff","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":49,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"c630184d-9bd7-4be3-a8a3-a75766099ef3","block_type":"box","text":"e.g.","page_number":49,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"53a88801-bcac-49da-a838-cfdf36a4f19c","block_type":"box","text":", with","page_number":49,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"9b531a9f-ee8b-439b-b600-905b12f2fc9c","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":49,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"f3f89fb2-01d2-4381-b164-ad66c3a2b73d","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":49,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"caf989dd-64b8-4ef2-a193-d6d1c9649bef","block_type":"box","text":"life is significantly shorter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":49,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"700f39d0-a9dd-4fa5-9969-949f38616e8f","block_type":"box","text":"other obligations of the issuer.","page_number":49,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"2adba1be-5cdb-4cf5-9283-94989745c239","block_type":"box","text":"Pay-in-kind Bonds.","page_number":49,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"0afe96f9-1a9e-4d4b-ae76-983e1324b00e","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":49,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"75b09dc9-783c-4c01-84b5-b57b2bdef09d","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":49,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"f6508a9f-dac2-46db-9acc-eb32ee7aedea","block_type":"box","text":"bonds also carry additional risk as holders of these types of securities realize no cash until the cash payment date","page_number":49,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"8aeeaf3d-d694-4781-81c2-a7a68ede2f52","block_type":"box","text":"unless a portion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":49,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"50004fbe-4653-40ff-b5c9-eaa304c37863","block_type":"box","text":"investment. The market price of pay-in-kind bonds is affected by interest rate changes to a greater extent, and","page_number":49,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"3382cda4-503c-4d73-a677-61c04546453b","block_type":"box","text":"therefore tends to be more volatile, than that of securities which pay interest in cash. Additionally, current U.S.","page_number":49,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"d5f6c527-46d1-49cb-bef1-fcb01bacee7f","block_type":"box","text":"federal tax law requires the holder of pay-in-kind bonds to accrue income with respect to these securities prior to the","page_number":49,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"3447a492-61ff-4741-9402-767a0352cdc8","block_type":"box","text":"receipt of cash payments. To maintain its qualification as a regulated investment company and avoid liability for U.S.","page_number":49,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"421675c9-1415-4401-8490-2d041339f096","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":49,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"b0a7473a-7f33-4479-bbcf-90194bc8f0a8","block_type":"box","text":"securities and may have to dispose of portfolio securities under disadvantageous circumstances in order to generate","page_number":49,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"30593ee7-5a16-45f9-8bbe-5a763d35ba28","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":49,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"d7e39a63-3cdf-45ab-9294-13250d3ed5a3","block_type":"box","text":"Supranational Entities.","page_number":49,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"9be123f0-bf3e-4717-abc2-85792c307450","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":49,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"5d3d961f-886b-41d6-a85c-a9af937da5b1","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":49,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"26cc31bd-a5ee-4caf-86cf-a1632c4977aa","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":49,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"0b5ddc6c-fc70-4496-afa2-951f16dbc028","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":49,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"22a15cf9-f315-4a83-b42b-2bf3c6a087b4","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":49,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"bbf9191b-ef2b-4ff5-a106-ec94df9325bc","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":49,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"5bc65613-1b10-4be3-b0ff-607a818a55b8","block_type":"box","text":"additional capital contributions. If such contributions are not made, the entity may be unable to pay interest or repay","page_number":49,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"af3256c2-dc7d-498c-9190-50234b311229","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":49,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"12b83307-bfd7-4dcb-bb6f-5cc5e98148e9","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":49,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"4fb81d7d-9f90-4161-857f-80e98ab6f210","block_type":"box","text":"Certain Funds may invest in the securities of foreign issuers in","page_number":49,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"a1b73056-c775-4972-9d07-ca4c9377e0a2","block_type":"box","text":"the form of Depositary Receipts or other securities convertible into securities of foreign issuers. Depositary Receipts","page_number":49,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"b2101a52-43ea-4ad2-b273-e94f7ce16932","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":49,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"c38b7e00-5a24-44fa-9610-25fc1ee30e01","block_type":"box","text":"converted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":49,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"a05e3ce4-1a80-4eb0-9cfa-9a0cf237798c","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":49,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"a95aaf9a-7677-4d7c-9240-79dba99010f8","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":49,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"31becdcb-3a26-462c-9bd4-33ea065116dc","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":49,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"4871318c-84a4-4d67-8685-2689749812bb","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":49,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"b80f9a0c-0722-4a44-abb4-c8ad59640387","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":49,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"13cf9b0f-2818-42db-9d2c-ecc0030e62dc","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":49,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"c540c8b0-5543-4b9a-abfb-f6ae06d137df","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":49,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"20e5c466-4d3d-4487-8f45-d6dbd26137a7","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank","page_number":49,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"e77a97a1-8e78-4bd1-b190-e34354e81343","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":49,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"198f9df0-c342-4756-acea-541a8835af4d","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":49,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"e5b419e5-9008-49ea-83d1-0c850a674f75","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":49,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"5a7d2f1c-b362-4a3e-a81f-e1b00ea21d8a","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":49,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"44ae75d0-8e69-48e5-91ae-3b6af78f657b","block_type":"box","text":"Available information concerning the issuer may not be as current as for sponsored ADRs, EDRs and GDRs, and the","page_number":49,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"830fa9c5-60f9-46cf-9bc7-186a838b79c2","block_type":"box","text":"prices of unsponsored ADRs, EDRs and GDRs may be more volatile than if such instruments were sponsored by the","page_number":49,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"97361cd9-3641-4b5c-97a5-723312921ca0","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":49,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"664a2e0d-6ced-4fce-bd7d-56b81cc583ab","block_type":"box","text":"into which they may be converted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":49,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"8b3b822f-2a96-4803-b01d-3dfb81471132","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":49,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"7ce40485-868d-419e-a9ae-a398fd2d2cf5","block_type":"box","text":"II-12","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3c834479-35a5-4b26-930c-0b3be502d002","block_type":"box","text":"NM1026U-5993100-49/236","page_number":49,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9c9298ed-1b99-41b6-b9e8-f4a4434de8f8","block_type":"box","text":"Derivatives.","page_number":50,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"ac3f7338-2ec5-45d3-92ea-bf62e2d9ab5f","block_type":"box","text":"General.","page_number":50,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"bc68b901-4dab-45f6-8c6f-85fb17c5a848","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":50,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"d1e65699-9efd-4871-b6de-ab279e1ffcbb","block_type":"box","text":"their value from one or more securities, commodities (such as gold or oil), currencies, interest rates, credit events or","page_number":50,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"863bc010-d8fb-44b3-8d6d-c0e8a7148e60","block_type":"box","text":"indices (a measure of value or rates, such as the S&P 500 Index or the prime lending rate) or other reference asset.","page_number":50,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"d075d110-40dc-455b-a93d-1324f9098762","block_type":"box","text":"Derivatives may allow a Fund to increase or decrease the level of risk to which the Fund is exposed more quickly and","page_number":50,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"386ab120-2a09-496f-b7b7-ef8900a660b0","block_type":"box","text":"efficiently than with other transactions. Certain Funds may use derivatives to maintain a portion of their long and","page_number":50,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"2a02af5f-927c-4278-a8e1-5c2e9e8eb86b","block_type":"box","text":"short positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":50,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"7b910b2e-b032-40cb-8fc8-20c3379132df","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":50,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"025aec20-f242-41d4-9bab-418a3bba568b","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":50,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"deb3497b-133a-4ee0-b1f7-d7f4b3bb58ca","block_type":"box","text":"i.e.","page_number":50,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"73f537cb-4add-4e8f-9452-714a2e86f9a8","block_type":"box","text":", the payment","page_number":50,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"c2bfef5d-88c9-4907-80a7-68548251392d","block_type":"box","text":"obligations of derivatives contracts are netted against one another with the Fund receiving or paying, as the case may","page_number":50,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"80eade10-d82d-4e2d-a031-fa16746a070a","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":50,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"418fc8de-6996-418e-8e28-acdc83034b68","block_type":"box","text":"Hedging.","page_number":50,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"5f5b91f3-01f7-4ee7-a468-7a5c40fe2de2","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":50,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"1b2e5a38-9bf3-4667-bfe4-492fb31272bf","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":50,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"864beed3-2797-4a5a-a73b-193369005b0b","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":50,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"08705337-a07a-4dc6-842d-2cf05e359c53","block_type":"box","text":"reduce or eliminate gains. In addition, hedging may cause losses if the market moves in an unanticipated manner, or","page_number":50,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"f27e66a9-dc53-47a9-84cd-fe863fd3dce4","block_type":"box","text":"if the cost of the derivative outweighs the benefit of the hedge. The effectiveness of hedging may be reduced by","page_number":50,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"261e771b-cd42-4b22-91e6-65b35bbdadd8","block_type":"box","text":"correlation risk,","page_number":50,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"3381117c-1586-41fe-a1c7-c597c99de969","block_type":"box","text":"i.e.","page_number":50,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"685e7d65-2225-4aaa-886d-d143302ab399","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":50,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"832be014-053f-42b2-bb69-fe9837c20827","block_type":"box","text":"hedged as expected by a Fund, which may result in additional losses to the Fund. The inability to close or offset","page_number":50,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"155511a7-28da-40b9-8212-ddfb98c0956a","block_type":"box","text":"derivatives could also reduce the effectiveness of a Fund’s hedging. There is no assurance that a Fund’s hedging will","page_number":50,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"2c4c8224-1c21-484e-9c9c-9c7f74905b4a","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":50,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"0c923996-a85d-4993-9bc6-e3173ef57937","block_type":"box","text":"Speculation.","page_number":50,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"a35cdce6-2096-4206-861d-c7aad76b68ba","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":50,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"7b91ed3f-8ee6-4899-90eb-7327b9403372","block_type":"box","text":"use of a derivative is speculative if the Fund is primarily seeking to achieve gains, rather than offset the risk of other","page_number":50,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"e6761b5d-795c-4744-bb0e-224cef9d8b52","block_type":"box","text":"positions. To the extent a Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the","page_number":50,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"5a9ad5d2-1492-4482-9d48-308aecb0b333","block_type":"box","text":"risks of loss of that derivative, which may sometimes be greater than the derivative’s cost, and the potential for loss","page_number":50,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"d674d4cc-e26b-4eeb-8c96-f9bb2ef74d5e","block_type":"box","text":"in certain cases may be unlimited.","page_number":50,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"78f67903-29a1-44e4-a425-133f16c7f238","block_type":"box","text":"Regulation of Derivatives.","page_number":50,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"03db1299-899a-4bc4-a9f3-85c19b672940","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":50,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"6730ba4d-b3f0-4e47-8fda-2896fe22d608","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":50,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"98c10e7b-8c2d-4163-a93a-5ad91103385f","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions","page_number":50,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"bdc93f83-17d8-46d8-bd26-b60f70b8ed85","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":50,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"5fe6161e-9db6-4f6c-90a2-fe74058448c6","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":50,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"1fe12b24-852a-4aa8-aa81-334d7f1ea0a9","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":50,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"3ad018b6-0390-4b7c-af57-e5c250c434f9","block_type":"box","text":"coverage”).","page_number":50,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"5d0400b6-e892-4898-9c2c-514adb371eeb","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":50,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"eb271c0c-5fa7-4bab-9a29-65087fa026fb","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":50,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"c6e6e9db-beab-4a04-96fc-1878e5077392","block_type":"box","text":"of the foregoing, or any similar instrument, under which a Fund is or may be required to make any payment or delivery","page_number":50,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"89298ce2-a4a6-4e5f-9e19-67d00cb05648","block_type":"box","text":"of cash or other assets during the life of the instrument or at maturity or early termination, whether as margin or","page_number":50,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"80bdb339-b616-497e-a0e2-72b4e576fcd7","block_type":"box","text":"settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar","page_number":50,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"faa26a5d-3f27-4b3e-a6ce-c9b4c8b4e502","block_type":"box","text":"financing transactions (","page_number":50,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"b6270523-6db9-43c4-bece-a5937efa9eea","block_type":"box","text":"e.g.","page_number":50,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"91cc1ad0-a0bd-4542-9ed7-355fece3af1f","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":50,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"69a28da0-70e2-4aed-89fd-020a462530aa","block_type":"box","text":"treat all of these transactions as Derivatives Transactions under Rule 18f-4; and (4) when-issued or forward-settling","page_number":50,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"be57f5a9-6db4-4b1c-9fe0-72086f46680e","block_type":"box","text":"securities (","page_number":50,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"f575628c-cfc8-474d-9e55-920f0591eb1f","block_type":"box","text":"e.g.","page_number":50,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"79e1a2b9-ed81-4b88-b464-b8ab5eec70fd","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":50,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"49504963-7a69-4a2e-a557-c9e1829e60a1","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":50,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"213e0161-3da0-4765-982b-90f86be81c86","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":50,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"4cae1bd6-216f-4a8b-ae25-eb449e218f25","block_type":"box","text":"Commitments”).","page_number":50,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"d08c58d5-8db1-4e02-a633-88289d0277ff","block_type":"box","text":"Unless a Fund is relying on the Limited Derivatives User Exception (as defined below), the Fund must comply with","page_number":50,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"5d741a89-fa30-4739-8a06-784e75e889a3","block_type":"box","text":"Rule 18f-4 with respect to its Derivatives Transactions. Rule 18f-4, among other things, requires a Fund to adopt and","page_number":50,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"b883b0f6-55f7-4176-96ab-16a9c5a41ebe","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":50,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"b75e7b5d-182e-469f-971f-b550295fc9c4","block_type":"box","text":"absolute limit on Fund leverage risk calculated based on value-at-risk (“VaR”). The DRMP is administered by a","page_number":50,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"adbffb00-a34c-40ca-97c6-f1a7e26b9ce9","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":50,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"d749ebdb-be81-4c6d-b87d-78ff39083ede","block_type":"box","text":"and periodically reviews the DRMP and reports to the Fund’s Board.","page_number":50,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"dd957d99-ee45-4116-9217-d03f3f77b2c3","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and certain other requirements if a Fund’s","page_number":50,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"16de29b3-3e71-44fc-8464-e7989a5edf9f","block_type":"box","text":"“derivatives exposure” is limited to 10% of its net assets (as calculated in accordance with Rule 18f-4) and the Fund","page_number":50,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"261f3baf-15bc-4d04-aa9f-8e9323bcbbd8","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":50,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"0d20d752-4018-4a66-885d-16d5f4718052","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":50,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"8515dd6a-e0ae-4ec5-9f00-e8cf531c3591","block_type":"box","text":"II-13","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4322ce19-3e8c-49dc-9295-cf36de277e9a","block_type":"box","text":"NM1026U-5993100-50/236","page_number":50,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c1a5c920-c164-4321-b23a-d238b32fb8c1","block_type":"box","text":"Dodd-Frank Regulations.","page_number":51,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"5a712d0d-7752-4f7f-88c4-ba4f260a4923","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":51,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"7d78752e-cf38-4420-8d3b-770e5a729c11","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":51,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"31302acb-26ce-49d7-9d0a-0a3adc5b0473","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":51,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"a7836cd7-0cd0-4add-9741-a9a7ac26ddd7","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, certain regulations have only recently become effective and","page_number":51,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"17fd7ec5-30e1-4435-b4c1-36e06ed6bdfc","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncertain.","page_number":51,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"424c6135-e1b4-4025-ad71-3bd38bde6f77","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or with the SEC as","page_number":51,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"75dd2e63-0576-48db-a5ee-49f1827fce26","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":51,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"bd3bd3ad-7e49-4003-a6b5-f4a53d5988b1","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, reporting, transparency, position limits,","page_number":51,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"710c60e6-3c2d-41dd-ad51-2a0a44bb28e1","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":51,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"264fe1b2-9557-4ed0-9dc4-4501de4127e4","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":51,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"e863c607-5410-455a-bec0-8158c1f29443","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed in","page_number":51,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"9539202b-6cfb-495d-a5a2-96f777d8f8ef","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":51,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"079109cd-ab45-41d5-aa0e-43ec28ca0fab","block_type":"box","text":"similar requirements on certain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":51,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"8ecd457f-941a-4e46-bb3c-d7dad19873eb","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":51,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"a4e65474-db73-4cf9-8ab8-71347fc3ca04","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":51,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"a494c88d-6c3b-4094-8c60-95cd5179e9ae","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":51,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"cc1ab81b-3f92-418e-80b3-d51646095dbc","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":51,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"d2408176-7051-4453-b1f3-5821b494b7a4","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":51,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"b4f7fc77-6a08-474f-a020-6fbf93d0c9e3","block_type":"box","text":"the FCM and the customer. These regulatory requirements may make it more difficult and costly for the Funds to","page_number":51,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"c0386049-100f-49e4-bca3-1224a94e555d","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering certain investment strategies impossible or","page_number":51,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"3ea5d25d-dcd0-4858-97fe-694992ed6daa","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":51,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"475c8da5-ec2b-4105-ae28-b44a25dd5e70","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":51,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"38a93967-d3c2-47bc-aa9a-9ad46b2724ca","block_type":"box","text":"member FCM or as a direct member, a Fund would be required to comply with the rules of the execution facility,","page_number":51,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"0ff0fdb4-762a-440d-b4a0-7a7acad0b7a6","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":51,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"4488936b-6154-45e4-b3c4-358b7b988785","block_type":"box","text":"With respect to cleared OTC derivatives and futures contracts and options on futures, a Fund will not face a","page_number":51,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"3ebefed5-c761-4535-ab7a-9c3b35336941","block_type":"box","text":"clearinghouse directly but rather will do so through a FCM that is registered with the CFTC and/or SEC and that acts","page_number":51,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"6af25ed4-2996-4853-b868-ef6265d46a06","block_type":"box","text":"as a clearing member. A Fund may face the indirect risk of the failure of another clearing member customer to meet","page_number":51,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"2832601c-2d1e-447a-a5d6-3ca2b7b46cbe","block_type":"box","text":"its obligations to its clearing member. Such scenario could arise due to a default by the clearing member on its","page_number":51,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"9affbe3a-5566-46d2-b979-5ff06ecdd526","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":51,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"cb164a38-163c-4d0f-a7b7-f80496c434a2","block_type":"box","text":"member.","page_number":51,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"c3815139-446a-4590-9936-c7af94a2d189","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":51,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"18c75ca5-59e8-44fd-92a7-c76553c7f614","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":51,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"a7ff0e25-dd37-4092-b0cf-fe1b9a5d5c86","block_type":"box","text":"was widely permitted for OTC derivatives before Dodd-Frank. While an FCM may require its customer to post initial","page_number":51,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"bf9f8a8c-3109-4a7e-b31b-746bec57e642","block_type":"box","text":"margin in excess of clearinghouse requirements, and certain clearinghouses may share a portion of their earnings on","page_number":51,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"96aa44f2-71e9-4d1d-9c97-017917a916d7","block_type":"box","text":"initial margin with their clearing members, some portion of the initial margin that is passed through to the","page_number":51,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"935c0b87-9def-4d73-bea7-ddee6d4fc22e","block_type":"box","text":"clearinghouse does not generate earnings for the FCM. The inability of FCMs to earn the same levels of returns on","page_number":51,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"35824e0b-df26-4281-a2aa-50f667187ae5","block_type":"box","text":"initial margin for cleared OTC derivatives as they could earn with respect to non-cleared OTC derivatives may cause","page_number":51,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"991b5704-b4c6-4807-ab91-e5d430a91882","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":51,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"59ddf59a-2564-463f-9279-577acce60c30","block_type":"box","text":"provide for non-cleared OTC derivatives. Furthermore, customers, including the Funds, are subject to additional fees","page_number":51,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"683f531b-6ddb-46bf-9f26-13348a0289bf","block_type":"box","text":"payable to FCMs with respect to cleared OTC derivatives, which may raise the cost to Funds of clearing as compared","page_number":51,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"d42f2c47-f668-460a-bae3-d43708de45d0","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":51,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"ae737a6c-5b30-487d-b551-6d140858f1df","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":51,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"12b2d6e8-9a93-4e40-9065-1136ee81b71f","block_type":"box","text":"exchange variation margin with a Fund and may be required by applicable regulations to collect (and in some cases","page_number":51,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"69e5b5c0-22df-4b41-82c4-0788e94b37b6","block_type":"box","text":"exchange) initial margin with a Fund. Both initial and variation margin may be comprised of cash and/or securities,","page_number":51,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"1c061579-fe93-4cde-adf4-babc119266df","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than certain","page_number":51,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"a710490c-99fe-403c-ae64-a8b68ce9ac98","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":51,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"a522a234-2945-4e94-bae7-0c43ae1d1a78","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":51,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"8ddc891d-7ca7-4807-859a-f0c57608ef5d","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":51,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"67877826-1d9c-4660-848e-3af9ba17455b","block_type":"box","text":"group of persons acting in concert, may hold or control in particular contracts. In addition, U.S. federal position limits","page_number":51,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"05a64f72-f07d-45fe-a09a-7c590b02e65c","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on certain agricultural, metals and energy","page_number":51,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"319f0b5b-5ee0-4fd4-be20-418d96847757","block_type":"box","text":"commodities. All positions owned or controlled by the same person or entity, even if in different accounts, must be","page_number":51,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"0fe48773-af5a-4b92-805e-f0b63e34f271","block_type":"box","text":"aggregated for purposes of complying with the speculative limits. Thus, even if a Fund does not intend to exceed","page_number":51,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"709a434d-af9d-4442-b6ac-a61c9ba40ca3","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":51,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"fe9e7890-ff23-4f1e-8318-27c4db599000","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":51,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"d1b5c923-7ca0-41a4-b02c-ec6e54cda32a","block_type":"box","text":"held by a Fund liquidated in order to avoid exceeding such limits. The modification of investment decisions or the","page_number":51,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"d86c36eb-8ef3-46c5-9022-0b350fe135a2","block_type":"box","text":"II-14","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b52a42c2-140f-48cc-a27a-cb5e972079ad","block_type":"box","text":"NM1026U-5993100-51/236","page_number":51,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"357085c1-2c49-47f0-a2b7-52b0e9314cfa","block_type":"box","text":"elimination of open positions, if it occurs, may adversely affect the profitability of a Fund. A violation of position limits","page_number":52,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"5a9e2636-5083-406e-8575-64de996e78cb","block_type":"box","text":"could also lead to regulatory action materially adverse to a Fund’s investment strategy. A Fund may also be affected","page_number":52,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"32f77d66-cdb7-4f53-823e-f87cc0f3feb8","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":52,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"36422e6f-e203-4b82-af0a-73113ba53c4a","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":52,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"be3b3425-3461-4216-a5c8-34a0e6f0b73f","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":52,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"584b5bc4-052b-4405-a3f8-f2ba045cd98c","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":52,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"c4e36560-fac6-4a6d-a6da-8976096c03c9","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":52,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"34fe65a8-f03f-48f0-b625-4dac10a875df","block_type":"box","text":"participating in, or otherwise adversely impact the liquidity of, participating in the commodities markets. For example,","page_number":52,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"a91f5f6d-2c73-4cb1-9143-a9137e934e31","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced certain","page_number":52,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"ac12f2b2-7fe6-4f0b-bf29-fbf4aa9eb712","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":52,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"7a0cec4f-73ca-4a4e-8160-9c072b65bc63","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":52,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"7dded111-7185-4be1-b15f-5c77a545df5b","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping","page_number":52,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"3fd1d9b3-2d8d-4ee2-8312-bf960f0ed43b","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":52,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"7bcb8b0f-46d8-49b6-9fd2-e009cea0886a","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":52,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"f6f45073-2a34-4790-b341-5f91f4e5ee56","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":52,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"1f08e400-8fb9-412b-b3c1-634bfc5c8294","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":52,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"9b57ffd7-0dfd-4999-b51f-02cb0bcdd97c","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II requires European Union","page_number":52,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"2c539e44-7193-4c28-8078-bc8d91b6b4f0","block_type":"box","text":"Member States to apply position limits to the size of a net position a person can hold at any time in commodity","page_number":52,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"945582ec-5ec4-4717-a305-b9e8a6ae63b7","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":52,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"090d43a1-e756-4a76-9e0b-daf858b9cc15","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":52,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"06fa600e-480f-4466-b5fb-d5c73aa30f35","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain prudentially","page_number":52,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"169077ec-523a-4065-a6fb-b63e8c120103","block_type":"box","text":"regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":52,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"c83a3544-08f7-42c0-9fad-e467ef1a8855","block_type":"box","text":"derivatives contracts and certain other financial contracts, terms that delay or restrict the rights of counterparties","page_number":52,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"2ce99757-0223-496c-8a14-126e58029b92","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":52,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"5599e78b-c1c5-451d-8bed-cff751ed3661","block_type":"box","text":"transfers of credit support in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":52,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"394d5644-cb5f-4f13-91e4-34cc543ca2ef","block_type":"box","text":"certain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":52,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"27076d30-3505-4e6c-8831-e8d926557743","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterparties located in those jurisdictions. In particular, in the United","page_number":52,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"b9f9efdb-fa54-44f4-b712-3b0bdcc3cdcf","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or convert to equity the liabilities","page_number":52,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"d87e77b5-08c4-4bf6-aeac-25f1587bf662","block_type":"box","text":"to a Fund of a counterparty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":52,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"253262fd-79a4-4d47-9832-d9c3aefd62c0","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":52,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"33c23915-392c-4562-94f3-56372d7abe87","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":52,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"ff33f707-2cb4-46b1-bad2-fbee6f7dcb98","block_type":"box","text":"collateral received under such contracts.","page_number":52,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"8fe7387c-2ca2-4892-8fe7-584dc00130a2","block_type":"box","text":"Risk Factors in Derivatives.","page_number":52,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"fcf6e5aa-f481-4f65-8bae-82e8a32483f3","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":52,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"4b0ec5fb-3d1c-4050-a564-0916d4ca256b","block_type":"box","text":"Correlation Risk","page_number":52,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"3168cdae-ef55-4b1b-abe1-d27980ef1715","block_type":"box","text":"— the risk that changes in the value of a derivative will not match the changes in the value of","page_number":52,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"aabab6db-2658-4b71-995d-448933eb473a","block_type":"box","text":"the portfolio holdings that are being hedged or of the particular market or security to which the Fund seeks exposure.","page_number":52,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"7c95661b-60bb-4339-8346-3d0945103cd8","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":52,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"c579861a-3481-479a-be4d-00435ac03578","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":52,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"5a27440f-1aaa-4f2b-8627-911a668b307a","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":52,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"ae5095f6-b490-46c3-b172-7f2d10e8e929","block_type":"box","text":"Counterpar ty Risk","page_number":52,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"0b728fdb-47e3-463d-a9f1-d3e7e3e08564","block_type":"box","text":"— the risk that a derivatives transaction counterparty will be unable or unwilling to make","page_number":52,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"d28c6cce-97a0-4325-a1ad-2a0f36f0790e","block_type":"box","text":"payments or otherwise honor its obligations to a Fund and the related risks of having concentrated exposure to such","page_number":52,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"10726693-6459-48b1-8442-1adf9814a91c","block_type":"box","text":"a counterparty. In particular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":52,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"5442a9ac-0ca5-4ab4-bae3-09761677ff0d","block_type":"box","text":"corporation and often do not require payment of margin, and to the extent that the Fund has unrealized gains in such","page_number":52,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"fd8e4f9c-2a4e-4d82-9d4e-95089a093926","block_type":"box","text":"instruments or has deposited collateral with its counterparties the Fund is at risk that its counterparties will become","page_number":52,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"f392a647-171c-46c6-a817-2ac1d36dd461","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":52,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"b34afbdf-da49-4f2a-adba-cd6c0327e79b","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or that have","page_number":52,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"9dfc4364-adb6-4aae-a158-afdffc97db13","block_type":"box","text":"provided the Fund with a third-party guaranty or other credit support. When a Fund enters into a derivatives","page_number":52,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"c032c265-63c6-4f3d-9fae-4394a35f9fa7","block_type":"box","text":"transaction that is centrally cleared (whether mandatorily or voluntarily), the Fund is subject to the credit risk of the","page_number":52,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"6f34c267-aae7-404b-882e-47324e1f7aae","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market participants","page_number":52,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"ca125ab1-1888-4496-9ad3-5dfe6383608f","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":52,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"f2dbfa79-3556-4b89-8344-fa46b167abdc","block_type":"box","text":"clearing members. It is not clear how an insolvency proceeding of a clearing house would be conducted and what","page_number":52,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"cf88724e-1a8a-416e-99a9-1397f108a77a","block_type":"box","text":"impact an insolvency of a clearing house would have on the financial system. Also, a Fund will not be fully protected","page_number":52,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"537fe5f7-32bd-493f-9ee8-9a092f0cb7f8","block_type":"box","text":"in the event of the bankruptcy of a Fund’s clearing member because the Fund would be limited to recovering only a","page_number":52,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"03538611-afb5-4e89-809c-03076fa73705","block_type":"box","text":"pro rata share of the funds held by the clearing member on behalf of customers by account class for cleared","page_number":52,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"14fb3ed9-006a-43bd-a392-3f98033507e4","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":52,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"15b05c99-3bee-4f63-a44f-cb71c071fbaa","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":52,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"500f6523-3d12-40cb-bda1-f8d08a5dd2f5","block_type":"box","text":"II-15","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a9d7581b-df9c-46d8-8076-68142f3e3648","block_type":"box","text":"NM1026U-5993100-52/236","page_number":52,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"56fcaaa3-8b59-42f4-a493-3f4ee9dad1f8","block_type":"box","text":"applicable regulations, or in the event of fraud or misappropriation of customer assets by a clearing member, a Fund","page_number":53,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"ceb0a991-d2ce-4908-af2d-b7ce47133a78","block_type":"box","text":"could have only an unsecured creditor claim in an insolvency of the clearing member with respect to the assets held","page_number":53,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"851db660-b16d-4e93-9364-85a551a21c6c","block_type":"box","text":"by the clearing member.","page_number":53,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"ebd68fc8-811f-46e4-8c48-ba811de3fbb7","block_type":"box","text":"Credit Risk","page_number":53,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"2c7dd549-acac-4cab-a788-5138499cad1e","block_type":"box","text":"— the risk that the reference entity in a credit default swap or similar derivative will not be able to","page_number":53,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"db661d0e-db07-4453-bb33-a9844d196d43","block_type":"box","text":"honor its financial obligations.","page_number":53,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"70c28514-76ea-48ce-ac2e-25e1145d4734","block_type":"box","text":"Currency Risk","page_number":53,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"d2c67a82-6068-4514-829a-c5abddc05efd","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":53,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"96a4c4f7-a78c-4ced-b64e-5959ae806e57","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":53,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"3c374598-1195-4e7c-bf5f-90ee6a800120","block_type":"box","text":"Illiquidity Risk","page_number":53,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"7d61ecaa-f148-468e-a842-ec7400cb8f1f","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at the time","page_number":53,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"8aa6f1c2-0546-4327-b641-0ffed05d7ecd","block_type":"box","text":"or at the price desired by a Fund in connection with payments of margin, collateral, or settlement payments. There","page_number":53,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"6ae1f07a-4cd0-48ed-b952-7adff69241bb","block_type":"box","text":"can be no assurance that a Fund will be able to unwind or offset a derivative at its desired price, in a secondary","page_number":53,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"0eff2c78-5b94-4528-93a6-e8f980f918ab","block_type":"box","text":"market or otherwise. It may, therefore, not be possible for the Fund to unwind its position in a derivative without","page_number":53,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"3f6008dd-cafe-41b1-b561-87c9845022b8","block_type":"box","text":"incurring substantial losses (if at all). Certain OTC derivatives, including swaps and OTC options, involve substantial","page_number":53,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"76c2d837-3efa-4e54-9d08-bc4dab47a649","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascertain a market value for such derivatives. A","page_number":53,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"d33161fc-79aa-4afa-9ff4-886fbcd8d9ff","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":53,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"175a3386-9b19-41a5-bd7e-cf7ef1b4d19b","block_type":"box","text":"purchased contains a formula price at which the instrument may be terminated or sold, or (ii) for which the Manager","page_number":53,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"29c3bb5a-3799-46ce-89ab-223665568266","block_type":"box","text":"anticipates the Fund can receive on each business day at least two independent bids or offers, unless a quotation","page_number":53,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"b6f1f222-d63c-461a-b560-59db8ca92e4c","block_type":"box","text":"from only one dealer is available, in which case that dealer’s quotation may be used. The illiquidity of the derivatives","page_number":53,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"7ad8b1d2-d2e6-4f79-b6a5-ef28a0e7c6d4","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":53,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"0eaa1601-82e5-4463-b089-ee71717e65ff","block_type":"box","text":"the participation of speculators, government regulation and intervention, and technical and operational or system","page_number":53,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"1e588d0d-7b6d-4c16-b72c-760474f71fbf","block_type":"box","text":"failures. In addition, the liquidity of a market in an exchange-traded derivative contract may be adversely affected by","page_number":53,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"764f82af-c65c-4922-ae21-9e4c7e2c76ca","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":53,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"764a67ef-bc12-4201-8519-8e53f9aae23c","block_type":"box","text":"traded contract price during a single trading day. Once the daily limit has been reached in the contract, no trades may","page_number":53,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"1b90c749-63c6-4b52-96c4-f5abe1a0ee00","block_type":"box","text":"be entered into at a price beyond the limit, thus preventing the liquidation of open positions. Prices have in the past","page_number":53,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"c7e64279-e497-4e0c-872a-833f565385a3","block_type":"box","text":"moved to the daily limit on a number of consecutive trading days with little to no trading. If it is not possible to close","page_number":53,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"a531f8fb-6fb3-41cb-8084-fdb542198b0a","block_type":"box","text":"an open derivative position entered into by the Fund, the Fund would continue to be required to make daily cash","page_number":53,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"dc40fc41-dc55-4b95-830a-ddd85bfcbe2b","block_type":"box","text":"payments of variation margin in the event of adverse price movements. In such a situation, if the Fund has","page_number":53,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"f0ec5020-55d2-45fc-89c0-6b561fc6341f","block_type":"box","text":"insufficient cash, it may have to sell portfolio securities to meet daily variation margin requirements at a time when it","page_number":53,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"31464f87-2451-4aab-8299-dbf53b21f5aa","block_type":"box","text":"may be disadvantageous to do so.","page_number":53,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"33f42b34-0d72-4e36-86ff-97499326e55c","block_type":"box","text":"Index Risk","page_number":53,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"5980a328-0ed8-42ac-a6dc-4918dda90d7b","block_type":"box","text":"— if the derivative is linked to the performance of an index, it will be subject to the risks associated","page_number":53,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"e2f07576-0b74-421d-89d1-1f4e993e7a2f","block_type":"box","text":"with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a","page_number":53,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"a4d2263d-ddad-439e-a504-e493b6c4f37b","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":53,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"ebb1f83f-063f-45e0-9c52-8066fed4f114","block_type":"box","text":"Legal Risk","page_number":53,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"530b5cda-bf99-442b-86c4-e9f9481d8577","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality","page_number":53,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"0e8b0a90-cf1d-4d12-b4fe-e424754aa16d","block_type":"box","text":"or enforceability of a contract.","page_number":53,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"1fbb743d-701a-451b-a242-f17b34989fee","block_type":"box","text":"Leverage Risk","page_number":53,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"f0b71a62-cb4f-4793-8b85-4e147c6fbef6","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":53,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"9b332f1a-e42d-4be0-8913-b52dad794bb5","block_type":"box","text":"Relatively small market movements may result in large changes in the value of a derivatives position and can result","page_number":53,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"f74054ed-3598-45aa-9701-d415d675cd18","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":53,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"b5b0166e-83aa-45ce-a518-166d35fc8ba2","block_type":"box","text":"Market Risk","page_number":53,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"a95f8ccf-4ce1-4abe-a0d8-9f90e447d5bf","block_type":"box","text":"— the risk that changes in the value of one or more markets or changes with respect to the value of","page_number":53,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"b9b9ded2-ea61-4c0e-9bd5-c114a207613e","block_type":"box","text":"the underlying asset will adversely affect the value of a derivative. In the event of an adverse movement, a Fund may","page_number":53,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"ec610bcb-9520-43f1-9361-0eae17b39b55","block_type":"box","text":"be required to pay substantial additional margin to maintain its position or the Fund’s returns may be adversely","page_number":53,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"517ee204-ef80-489d-919c-a9a984cc9804","block_type":"box","text":"affected.","page_number":53,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"b0628bac-92a1-4b57-a98f-b4e935745d11","block_type":"box","text":"Operational Risk","page_number":53,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"d8a4951a-206d-4fc7-bd74-6650eaea4892","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":53,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"0e55a0ce-677d-4203-b835-42659dd1dc31","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":53,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"80d992b3-ca49-44b7-8274-6c201200ab6f","block_type":"box","text":"Valuation Risk","page_number":53,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"c3dd8ec5-e0db-482a-b5d8-f3c6cd2b342d","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":53,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"fd5d097c-5b25-48e1-b0b7-0a3f94d2dd0e","block_type":"box","text":"possible especially in times of market distress, since many market participants may be reluctant to purchase","page_number":53,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"56d62cde-8800-4ccd-8043-318d28f87e8a","block_type":"box","text":"complex instruments or quote prices for them.","page_number":53,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"bd957135-b595-4691-9ee2-ad8c3d82eb93","block_type":"box","text":"Volatility Risk","page_number":53,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"653eacf0-6094-4280-9aab-9b50c318408b","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time period.","page_number":53,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"f192d77d-c39c-4638-8dd2-4f729252a499","block_type":"box","text":"Types of Derivatives Transactions.","page_number":53,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"562b181c-53d4-41a3-9d1a-e6cd4ebe49cc","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":53,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"f12ba873-9793-49ae-8a38-f970735080b4","block_type":"box","text":"including the following:","page_number":53,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"4113c490-8e75-43bf-b525-dcd3dbe30bdb","block_type":"box","text":"Futures.","page_number":53,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"dee91186-bde9-45f9-a88a-beac76c3af67","block_type":"box","text":"II-16","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"86be1348-7d78-4a3d-b6d0-bf8bf851e0f7","block_type":"box","text":"NM1026U-5993100-53/236","page_number":53,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5897735a-eea0-46fd-a31d-91c0ef12902a","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":54,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"a6ccb2b2-c920-4b3f-bd9b-b3e8225be79e","block_type":"box","text":"exchange-traded contracts that require a purchaser to take delivery, and a seller to make delivery, of a specified","page_number":54,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"be9cf412-2d5d-45b3-8c93-7a9b621a5253","block_type":"box","text":"amount of an asset at a specified future date and price. Upon purchasing or selling a futures contract, a Fund is","page_number":54,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"dd5238ce-cbec-43e1-823d-d7f2f8289daf","block_type":"box","text":"required to deposit initial margin equal to a percentage of the contract value. Futures contracts are marked to market","page_number":54,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"d7e86233-a6f3-467d-b778-810e148494de","block_type":"box","text":"daily for the duration of the contract, and the Fund will either post additional margin or be entitled to a payment, as","page_number":54,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"faea17c1-8086-4ca4-a0b2-f351773025fd","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":54,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"67f03ad1-8e61-48b5-a953-f178a6779945","block_type":"box","text":"A Fund may sell a futures contract prior to the completion of its term to limit its risk of loss from a decline in the","page_number":54,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"4cf75353-50f3-4828-a511-f9fa25a77424","block_type":"box","text":"market value of portfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":54,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"7ea28afe-9d78-4482-97b1-1786cc308595","block_type":"box","text":"portfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":54,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"2ba22947-2091-46bb-b782-5a67bba2e2c2","block_type":"box","text":"the futures position and a lower return on the portfolio holdings than would have been realized without the purchase","page_number":54,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"1c4dae77-51a6-4f95-b6cf-a82a0f91c4ec","block_type":"box","text":"of the futures contract.","page_number":54,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"d91c8f93-a54e-41a7-80e3-79416fe03a95","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":54,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"b5dfc4dc-184e-4775-9883-8788f8ab5d21","block_type":"box","text":"commodities directly. In the event that such securities or commodities decline in value or a Fund determines not to","page_number":54,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"bfbf5bd4-1d38-44a0-97f0-7dd1395ca683","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":54,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"3ddf4b99-7d27-403f-a6cf-7240c9eff039","block_type":"box","text":"relating to the futures position.","page_number":54,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"c3d2fdf6-35b3-44a3-b1cb-11a6b0b061cd","block_type":"box","text":"Futures contracts are also subject to position limits. In order to comply with position limits, a Fund may be","page_number":54,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"ee61e94e-c9d1-474a-8b93-18d5efe838c3","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":54,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"67e36e32-a0ca-4868-958b-2848943ac01b","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":54,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"599aaa7b-1ab5-41b5-b714-bab8a63b0107","block_type":"box","text":"Regulations” above.","page_number":54,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"ce59aa01-67d2-4225-8a84-71d634501602","block_type":"box","text":"A Fund is also permitted to purchase or sell call and put options on futures contracts, including financial futures","page_number":54,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"0783388c-fb22-419a-9daa-d79a0fc71e75","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":54,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"15278f76-d0d6-4dc0-be25-00eb6ffd0067","block_type":"box","text":"(","page_number":54,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"d8809fc6-2c45-4f9f-9aed-18735242a1ae","block_type":"box","text":"i.e.","page_number":54,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"7cf41645-fbba-46b6-93b9-1d1bde00b1f5","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":54,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"4104e6a7-908c-4b62-8dcc-64abd61d8563","block_type":"box","text":"may purchase put options or write call options on futures contracts and stock indices in lieu of selling the underlying","page_number":54,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"2ce8a393-4635-4070-84e7-505d91b9a040","block_type":"box","text":"futures contract in anticipation of a decrease in the market value of its securities. Similarly, a Fund can purchase call","page_number":54,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"cb1ceb71-62b9-4501-a1c7-56d44d81a77a","block_type":"box","text":"options, or write put options on futures contracts and stock indices, as a substitute for the purchase of such futures","page_number":54,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"b999b4d9-ea14-4db3-bca3-aa45d81ee170","block_type":"box","text":"contracts to hedge against the increased cost resulting from an increase in the market value of securities which the","page_number":54,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"10c63ca8-5a7c-445c-ac1c-5d6ddf7254cd","block_type":"box","text":"Fund intends to purchase.","page_number":54,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"decb6cdf-5ba4-43c5-a506-485d013da17d","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":54,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"0234cb7e-b832-47c3-93df-b1795a91408f","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":54,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"e5f3870b-0a1a-456c-9aee-7beab8372907","block_type":"box","text":"determined by reference to the value of a security, an index of securities or a commodity at a future point in time. The","page_number":54,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"f75546c7-65a5-4885-86d8-4a71ce159f0c","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":54,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"c201bbf0-5c6e-46c0-a891-6fea01f4caaf","block_type":"box","text":"illiquidity.","page_number":54,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"5d7d527f-8183-44e5-b5b6-68f614def1cf","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":54,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"a44b8673-bb12-4c2e-b54d-6ae332238bee","block_type":"box","text":"illiquidity risk, market risk and counterparty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":54,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"6ae0bc30-dc55-4b26-8e4a-aa665d1765ab","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":54,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"6fa6fce8-f2d7-435e-89e3-d9d4d43e7c41","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a limit is","page_number":54,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"1c3bafe2-0b8c-45ff-891c-1f6cec930140","block_type":"box","text":"set by a regulator, such as a government entity, on the total amount of specific greenhouse gases, such as CO2, that","page_number":54,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"e45644e3-83cb-4b32-aed9-149f7ee47876","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":54,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"a3540057-1451-4294-9b07-c8e66f9d50be","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":54,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"bc8af56f-f10d-4e76-8b2e-86b2b8d605b0","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":54,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"e8b33ea4-4d54-41ad-88c9-1d3db202e653","block_type":"box","text":"The price for carbon futures contracts is based on a number of factors, including the supply of and the demand","page_number":54,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"bc1b0ad4-f0d7-4ac1-8992-3d574e2d6611","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":54,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"61a3e676-56a1-4fa3-9363-c9572f308b49","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":54,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"46fe2f0d-a291-404c-92a4-44f22a724789","block_type":"box","text":"for carbon futures contracts is still developing and may be subject to periods of illiquidity. During such times it may be","page_number":54,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"d25375aa-8626-46f7-94ce-c037a3ae7413","block_type":"box","text":"difficult or impossible to buy or sell a position at the desired price. Market disruptions or volatility can also make it","page_number":54,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"fd543edd-18ee-442f-9d6f-c8faa64b50fe","block_type":"box","text":"difficult to find a counterparty willing to transact at a reasonable price and sufficient size.","page_number":54,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"24c9ffde-4263-4b30-9211-b5563a03145d","block_type":"box","text":"Swap Agreements.","page_number":54,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"b802fa18-a774-4135-b88a-6f1817b391ce","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":54,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"f30f5421-6d4a-4f47-89d6-60f96b8947c6","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":54,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"bba5aa4f-1d93-4e38-91ac-9d9c41aadd30","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two parties agree to exchange the returns","page_number":54,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"065eb2a2-d08b-4a9e-a09f-4d2977523ce2","block_type":"box","text":"earned or realized from one or more underlying assets or rates of return, which may be adjusted for an interest","page_number":54,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"ab91e3e6-24a0-49f6-8753-59ef3881476c","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to","page_number":54,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"4517bc50-b717-40d1-9bd8-1421843920d7","block_type":"box","text":"a “notional amount,”","page_number":54,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"c5875dc7-80b5-4f39-a0d7-fee3d0da4291","block_type":"box","text":"e.g.","page_number":54,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"430d87f5-77b0-40d1-8ad1-5a0dc3e4bbee","block_type":"box","text":", the return or increase in value of a particular dollar amount invested at a particular","page_number":54,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"4e5573ae-1dde-4120-981f-1d54226be8d0","block_type":"box","text":"II-17","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"69487472-e28d-49d6-8366-7b038d811feb","block_type":"box","text":"NM1026U-5993100-54/236","page_number":54,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fecaeb23-5c3e-406b-92aa-b780e0822fb3","block_type":"box","text":"interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index. The","page_number":55,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"6dceca4b-374a-4692-bbf2-ff833885347c","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the parties to a swap","page_number":55,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"7ccdd2ab-fec3-44c3-84f1-92447d92028b","block_type":"box","text":"agreement have agreed to exchange. A Fund’s obligations (or rights) under a swap agreement will generally be equal","page_number":55,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"fed96769-990a-4459-b345-b3242dd8a969","block_type":"box","text":"only to the net amount to be paid or received under the agreement based on the relative values of the positions held","page_number":55,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"7f0bc14f-0ae3-4319-9eb4-0033fafe114b","block_type":"box","text":"by each party to the agreement. Swaps that are not cleared involve substantial counterparty risk. A Fund will typically","page_number":55,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"243d676c-2c08-4567-9730-baaff0c879c0","block_type":"box","text":"attempt to mitigate this counterparty risk by entering into swap agreements only with creditworthy entities that have","page_number":55,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"a1b1cad1-7f77-45c3-89b7-08f7c1a39534","block_type":"box","text":"substantial capital or that have provided the Fund with a third-party guaranty or other credit support. A Fund’s ability","page_number":55,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"ffba1c1b-d5b1-4d99-930b-751133806e9e","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":55,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"0d751b85-ce83-4ebc-a307-7e8030afd2b0","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":55,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"aa979b08-189a-418c-8a03-cf49b5d6c33b","block_type":"box","text":"Certain Funds may enter into credit default swaps and similar","page_number":55,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"394ae02d-6d21-47dc-ad1e-7947da88120a","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":55,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"085947e8-4be5-4ae4-8521-5c05fcbe4a26","block_type":"box","text":"“seller” an up-front payment, or a periodic stream of payments, over the term of the contract, provided generally that","page_number":55,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"c5b2f0c2-80d0-474a-a6d8-9dd10ad92b80","block_type":"box","text":"no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the","page_number":55,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"92ef2523-7042-4e74-bb10-65da4a1e2e6b","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a portfolio of securities issued by","page_number":55,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"e9d79c3a-b51b-4b97-81bd-569e0cd9997c","block_type":"box","text":"the reference entity. A Fund may be either the buyer or seller in the transaction. The Funds may enter into credit","page_number":55,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"2f34858e-bd45-48df-859b-5731c09d5b9d","block_type":"box","text":"default swaps that reference the obligations of a single entity (“single-name CDS”) or the obligations of entities that","page_number":55,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"c7ffdff4-08f1-4665-bbd5-e3ccffb25806","block_type":"box","text":"make up an index (“index CDS”). References to “credit default swaps” shall collectively refer to single-name CDS and","page_number":55,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"1f3e2906-e744-4be9-9635-d7e1968979e3","block_type":"box","text":"index CDS.","page_number":55,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"955bf701-36eb-4c46-b490-4f42dd1596a8","block_type":"box","text":"Credit default swaps have as reference obligations one or more securities or loans that are not currently held by","page_number":55,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"ff9217ee-cd3c-4418-9545-47ac7030f339","block_type":"box","text":"a Fund. In circumstances in which a Fund does not own the securities or loans that are deliverable under a credit","page_number":55,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"f2bd46e7-f76b-4477-8de3-0bc4ecede981","block_type":"box","text":"default swap, the Fund is exposed to the risk that deliverable securities will not be available in the market, or will be","page_number":55,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"668f7a43-f689-4c7a-95f8-6d0f68cef8e5","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “short squeeze.” In certain instances of","page_number":55,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"daa7557a-91d7-4829-96ef-924278bece5d","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":55,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"b645cb38-6c33-484b-bbbf-3583d60f8bae","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Certain initiatives","page_number":55,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"0753ea53-9071-4743-8fd5-2cc1278e6e93","block_type":"box","text":"adopted by derivatives market participants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":55,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"1980f768-e133-4a45-a978-2ceaacb1088e","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":55,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"78e5f889-4e4f-4402-9bfc-83abb951485f","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":55,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"69f0b365-4b7a-4bea-8180-1c26ffda33ce","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":55,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"fef2bef4-7b45-41da-bac9-a28ba3a81aa3","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":55,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"3728cbc2-39ec-4168-843f-fbc22a4b76fe","block_type":"box","text":"uncertainty as to the occurrence of credit events and the risk of a “short squeeze” by providing that the ISDA Credit","page_number":55,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"5d354a18-5a76-46d1-84f0-674534bdfc48","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":55,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"6f60d5b4-ebd8-46c4-b24f-b89bfcfb7e30","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":55,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"b489adda-0408-4d4d-a1e0-fd22e6fd5063","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in certain limited circumstances refrain from","page_number":55,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"af1761b8-ba8d-4304-ab93-38cbbcb19bc1","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":55,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"3da4eda1-a2b6-459e-9ff2-1a2ba88766fd","block_type":"box","text":"respect to a “credit event” or otherwise does not establish a cash settlement auction, a Fund may not be able to","page_number":55,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"bd312433-a68d-4a48-b82b-0e64dfe16d53","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Furthermore, a Fund may enter","page_number":55,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"f112fbd0-f2b0-4354-8fc0-4987030c2495","block_type":"box","text":"into certain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":55,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"1b7b5f96-0e8b-4092-9613-8d7de1d5a333","block_type":"box","text":"If a Fund is a buyer, it will lose the payments made under the terms of the credit default swap and recover","page_number":55,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"8b97a1ab-6841-4800-aebe-2a5f7cd44503","block_type":"box","text":"nothing should no credit event occur. If a Fund is a seller and a credit event occurs, the value of any deliverable","page_number":55,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"169d09b0-1137-4722-a66b-1a14019812c8","block_type":"box","text":"obligation received by the Fund or the amount of cash settlement received by the Fund pursuant to the relevant cash","page_number":55,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"503a3ba0-70b6-4d98-9465-55fd774fc55d","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":55,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"328432fb-0afc-478c-b015-6b5fe55d1c66","block_type":"box","text":"it pays to the buyer, resulting in a loss of value to the Fund. A Fund that sells credit default swaps incurs leveraged","page_number":55,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"93f12b41-760e-4016-ae07-d51ff2309df1","block_type":"box","text":"exposure to the credit of one or more reference entities and is subject to many of the same risks it would incur if it","page_number":55,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"a6ed1fd0-5faa-4b5f-8167-0c84c97fc70e","block_type":"box","text":"were holding debt securities issued by the relevant reference entity. However, a Fund will not have any legal recourse","page_number":55,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"746c65dd-b445-4133-97d7-97d7a8473aed","block_type":"box","text":"against any reference entity and will not benefit from any collateral securing the reference entity’s debt obligations. In","page_number":55,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"875f07a8-fca2-4ca4-aab8-9071b535ec5c","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":55,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"89189c04-197f-40d6-849e-615eb101b5a6","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":55,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"816180ec-69b9-443e-8077-c8ff0ae81b0d","block_type":"box","text":"which of the reference entity’s debt obligations to deliver to the Fund following a credit event and will likely choose","page_number":55,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"3820ab77-d8f7-4a7e-9e88-65ea58630bc6","block_type":"box","text":"the obligations with the lowest market value in order to maximize the payment obligations of the Fund. In addition,","page_number":55,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"9d8faaed-7515-43a6-a2b6-0149c840d2b5","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":55,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"3b168fa6-856e-4e72-8fd4-eaf13a9b27ec","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":55,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"c4866c74-4903-4f7c-b50c-2e5ba43f22fa","block_type":"box","text":"conditions.","page_number":55,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"09cad725-ca83-45cf-9af7-aaca42f7f55c","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for clearing to","page_number":55,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"2a9115d6-919e-46fa-aa3c-d826421e8cd7","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":55,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"7f4afcce-b5b4-4eac-8985-2ab150cbc502","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":55,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"c096ebd5-18ab-41d4-87a5-ab066f6e595d","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":55,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"2abe9c82-f320-477f-a766-5449176d6a86","block_type":"box","text":"clear some, but not all, of the other credit default swaps not subject to mandatory clearing. The Funds face","page_number":55,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"0e2cb12e-bdf5-413a-96c3-ff091044799f","block_type":"box","text":"II-18","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fcf30550-d70e-43e3-831e-2ff9a0411685","block_type":"box","text":"NM1026U-5993100-55/236","page_number":55,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ffc88a11-63d8-4056-b972-f37d23b7e7a2","block_type":"box","text":"counterparty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":56,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"9b688289-c95b-4ab9-bb54-71750044d7ec","block_type":"box","text":"CDS. The Funds face significant counterparty risk with respect to their counterparties to non-cleared credit default","page_number":56,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"de0cf5e4-ec64-450c-aa06-d71c74cb5b3b","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":56,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"c5d09daa-69a5-4d4a-bdef-5d0f7a017cf5","block_type":"box","text":"instruments with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":56,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"c82b7590-9029-4c38-b1ae-75d54930af06","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":56,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"cb868f6c-0c32-4bdd-a4bd-e311d943019c","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":56,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"b608787b-9e06-43f2-9c2e-cd84847ec49f","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":56,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"934b534b-bfab-4ca8-94d0-9e0bb9728186","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":56,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"153ea815-d2c4-4b49-8861-86f6807e9ff6","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":56,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"008c36f5-6bc6-4096-9d70-e85c060431b2","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":56,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"87cf163f-0751-4513-8880-25dfab465c4a","block_type":"box","text":"underlying security or loan to or by the Fund rather than by way of cash settlement, and there may be a wider range of","page_number":56,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"29032c04-f0a6-4ebd-bd8e-4471ef82c800","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":56,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"29443042-e0f9-4e35-b3cd-a0360c07ebff","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":56,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"11ad9cd3-d40a-417c-92bd-700a77093492","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":56,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"9a481b09-5fc5-4561-8567-59e189c06e8b","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":56,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"1467810a-3450-4cf4-b1c9-9e25d5b0295d","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":56,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"845060d6-819c-48c4-843e-ddb27d93fae2","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of interest rate","page_number":56,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"c6c61a44-df50-4576-ae06-99b7f3cb3ea5","block_type":"box","text":"swaps and interest rate caps and floors. As described in further detail below, a Fund may enter into these","page_number":56,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"1cfd52dc-a248-4474-994d-3da89d8b7837","block_type":"box","text":"transactions primarily to preserve a return or spread on a particular investment or portion of its holdings, as a","page_number":56,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"cc855db9-a8ff-4ba7-aaad-085215a0a68f","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":56,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"a283ccd4-9e9b-4a02-a59c-66ff7df14094","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":56,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"bc016f09-2f87-4898-b809-23febb949844","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted for","page_number":56,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"4a049b17-3df8-4375-93eb-dd711a44f6ad","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":56,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"6a075aa8-eeac-4ced-afbc-40530c1fe9e4","block_type":"box","text":"interest rate swaps are permitted, although not required, to be cleared. Most of the interest rate swaps entered into","page_number":56,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"50c78c15-1ccc-46aa-802c-7decbf638aea","block_type":"box","text":"by the Funds are cleared. The Funds face counterparty risk with respect to the clearinghouse when entering into","page_number":56,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"02a7d603-80dc-449b-a0b4-a4b37c164d5a","block_type":"box","text":"cleared interest rate swaps.","page_number":56,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"f6648837-bb8f-4ca2-9eb5-833d82988750","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest rate","page_number":56,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"50c6cf7e-3279-4648-b635-fc560ea4d81d","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterparties for a Fund’s non-cleared interest rate derivatives","page_number":56,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"487993fd-086e-4f7e-9672-dd4244e75f75","block_type":"box","text":"transactions are swap dealers and other creditworthy entities that have substantial capital or that have provided the","page_number":56,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"d116d0a4-6376-4de0-85e2-69cc00963b68","block_type":"box","text":"Fund with a third-party guaranty or other credit support. If the Fund’s counterparty defaults on such a transaction, a","page_number":56,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"15ba758e-8a67-474e-b3d9-b5545034bce0","block_type":"box","text":"Fund will have contractual remedies with respect to the transaction but there can be no guarantee that the Fund will","page_number":56,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"7f5a2572-2884-4ae3-af12-3c22a836242f","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":56,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"7a268ae3-4afe-4428-9e5f-f9a4589fe8f1","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into certain","page_number":56,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"4f00c79f-7c0f-425d-806e-30a26a4e4e52","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":56,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"0f486dca-9814-420e-8cd3-31aa61d52ace","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a fixed or","page_number":56,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"e0c70640-54d8-4a05-97ec-5bf81f5bab8a","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterparty based on a different fixed","page_number":56,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"b5cab658-d1bc-421f-8130-52838edd08a4","block_type":"box","text":"or variable interest rate, index or asset.","page_number":56,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"ec200ed4-aa33-44a6-b5a7-bff3f0d5df46","block_type":"box","text":"The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a","page_number":56,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"f94d2460-b0ca-4732-9c87-01f2f55a48da","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":56,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"15d253f4-babf-4c76-9852-755ed1216894","block_type":"box","text":"such interest rate floor.","page_number":56,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"8426253c-e9ba-4133-a14a-c0354a88f22c","block_type":"box","text":"The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index rises above a","page_number":56,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"1d35f1c1-2a26-47a3-aadd-3e80f9ff97ad","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":56,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"ca6a0855-622b-4499-b294-5ddbc256df64","block_type":"box","text":"such interest rate cap.","page_number":56,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"36b91c3b-e580-4482-9cbd-9a6e25500f0e","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":56,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"48a31a05-4b12-483d-b075-4778470e1efc","block_type":"box","text":"commitments to pay or receive interest,","page_number":56,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"676f8d4d-a242-41fb-97c0-4806dc699ff1","block_type":"box","text":"e.g.","page_number":56,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"486dd34b-5993-4022-8cd1-3ba2991e7b39","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":56,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"38b3514a-8b6c-4aeb-b186-0f92e986842d","block_type":"box","text":"example, if a Fund holds a mortgage-backed security with an interest rate that is reset only once each year, it may","page_number":56,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"9d2ea852-698b-48a3-a097-a79ed217d531","block_type":"box","text":"swap the right to receive interest at this fixed rate for the right to receive interest at a rate that is reset every week.","page_number":56,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"5a1c63b6-1608-431f-81c1-9beb1fddc030","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mortgage-backed security due to rising interest rates","page_number":56,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"4289939c-3226-431e-bdb9-66926ab204ae","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mortgage-backed","page_number":56,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"58339d1c-03d7-4cb3-b222-c88e8fbb7499","block_type":"box","text":"security with an interest rate that is reset every week and it would like to lock in what it believes to be a high interest","page_number":56,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"3f91ea42-24f6-4e5d-96e2-3ec78ba53ed3","block_type":"box","text":"rate for one year, it may swap the right to receive interest at this variable weekly rate for the right to receive interest","page_number":56,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"cdbb618a-986e-4112-afed-0df27b0346d9","block_type":"box","text":"at a rate that is fixed for one year. Such a swap would protect the Fund from a reduction in yield due to falling interest","page_number":56,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"7f03ead0-64ee-41dc-aab5-a985c80c48da","block_type":"box","text":"rates and may permit the Fund to enhance its income through the positive differential between one week and one","page_number":56,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"f7f57e9c-0cf3-4397-b81e-67cdcffecbb6","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":56,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"e0e791ac-0cc8-46fa-992c-b20c4e5230d4","block_type":"box","text":"II-19","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"357d3d87-5744-43ea-bd93-5a11a63d36a4","block_type":"box","text":"NM1026U-5993100-56/236","page_number":56,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"40bc663f-f3f5-4e88-ba3d-cf8323f1f697","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":57,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"8a7acf5e-7e12-4a00-a251-3e0d601b8d8f","block_type":"box","text":"in certain circumstances, as long term capital gains to shareholders.","page_number":57,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"38bc6f2c-f653-4672-b1f8-8a5516611235","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":57,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"86fcaef2-133d-4f4d-98e0-36163670ee79","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":57,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"aa3ad87b-f389-43e8-ae28-b79df75e38c9","block_type":"box","text":"Total Return Swaps.","page_number":57,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"2543823e-64bb-43f3-9722-ccb641db1855","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic payments to","page_number":57,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"f848b427-a3be-4208-8776-e3d73233e0c7","block_type":"box","text":"the other party based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":57,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"b4e203da-0f2d-41a4-80f4-505a4da74252","block_type":"box","text":"a fixed or variable interest rate or the total return from different underlying assets. The return of the assets","page_number":57,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"82f1f397-0f4b-4458-bf12-775dcfca8e49","block_type":"box","text":"underlying the contract includes both the income generated by the asset and the change in market value of the","page_number":57,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"be708eb0-7a30-4827-85b5-35c93f569b98","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":57,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"5c2bd840-b289-4036-bffa-1aa4fd1b7025","block_type":"box","text":"Total return swaps on a specified security, basket of securities or securities indices may sometimes be referred to as","page_number":57,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"da6f5b6a-44af-494f-935e-3c8a4def0ef5","block_type":"box","text":"“contracts for difference.”","page_number":57,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"78d03427-29c8-4fb7-ab84-072b9a2293e3","block_type":"box","text":"Total return swaps may be used to obtain exposure to a security or market without owning or taking physical","page_number":57,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"9bd1b49b-8e5e-434a-a5cb-8d9266180f9f","block_type":"box","text":"custody of such security or investing directly in such market. Upon entering into a total return swap, a Fund is","page_number":57,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"e52bad9e-b70a-48aa-b9a3-e67450a66699","block_type":"box","text":"required to deposit initial margin but the parties do not exchange the notional amount. As a result, total return swaps","page_number":57,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"e26d33c1-0ac0-4932-bc10-18a354f23e04","block_type":"box","text":"may effectively add leverage to the Fund’s portfolio because the Fund would be subject to investment exposure on","page_number":57,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"e475f2a9-0663-405a-b838-ed8e52864f08","block_type":"box","text":"the notional amount of the swap.","page_number":57,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"e0486d56-cf71-426a-9e68-e42b639e9421","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":57,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"ab6c0f09-e184-42d4-8bf4-4cbc987fbeb9","block_type":"box","text":"counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":57,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"06acb6f0-f383-4758-8250-77a150b3c7a2","block_type":"box","text":"Options.","page_number":57,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"2084e711-fbaf-442b-95cd-8c26e8f6b2ae","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":57,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"ef0b2e7b-b0d5-4538-980a-0a7653d0a604","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":57,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"17dfff58-0e10-450a-8eb0-c90f4ab8a7e3","block_type":"box","text":"securities, baskets of securities or securities indices, or particular measurements of value or rates, such as an index","page_number":57,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"5ed61d49-c568-42be-89ec-bb20ef490192","block_type":"box","text":"of the price of treasury securities or an index representative of short-term interest rates. Such investments may be","page_number":57,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"665b4ceb-a035-408d-b61a-12935205e187","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":57,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"3a2d8417-5d81-4378-a073-a30f47799ca9","block_type":"box","text":"and expiration dates and require the parties to post margin against their obligations, and the performance of the","page_number":57,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"bf36d634-9e7c-40c1-8812-f6568c764de1","block_type":"box","text":"parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":57,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"da709f04-3f15-40ed-bba1-53a8406fcd55","block_type":"box","text":"OTC options have more flexible terms negotiated between the buyer and the seller, but are subject to greater credit","page_number":57,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"09447619-d56d-4e80-b72a-eb0f2cf7c742","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":57,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"0d3881ff-ea5d-4de2-bed2-b91dfdf42cb4","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":57,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"f2d3ee5d-9a43-4a01-a930-3564d073b46d","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":57,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"3dc83311-e787-42c0-a378-0a157da35947","block_type":"box","text":"exotic options that can only be exercised (or automatically expire) if the price of the underlying asset reaches one or","page_number":57,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"c60a047b-668d-41e6-8c98-6a9de65efa01","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":57,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"cebe31db-0c77-4ab7-a473-ac81f438ef7a","block_type":"box","text":"a fixed all-or-nothing payout if one or more predetermined conditions are met. Exotic options are typically traded in","page_number":57,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"94532ffc-71b6-4f4c-904b-530495f5549d","block_type":"box","text":"OTC markets.","page_number":57,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"52860bd6-52d8-45bb-b715-73a8e457baa2","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":57,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"ab66e864-7b22-40a3-9495-a4fbf09d3a67","block_type":"box","text":"significant differences between the securities and options markets that could result in an imperfect correlation","page_number":57,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"d4f2645b-dd30-4c39-8e31-fcf1e7743827","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":57,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"7924dfea-b403-4a06-a08e-17c6fd8007be","block_type":"box","text":"particular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":57,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"099f5285-a5b5-48af-8880-5f068704eefd","block_type":"box","text":"which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed","page_number":57,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"7aedcfbc-9225-438f-9a3d-b81fa7056744","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":57,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"ab9a15b4-ed3e-44ab-b188-e76d098ad31a","block_type":"box","text":"restrictions may be imposed with respect to particular classes or series of options or underlying securities; unusual","page_number":57,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"0320bdd9-e954-4908-a3f2-fe5cea5238f0","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":57,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"89c7fef9-35f9-4eb0-ac25-471f8d0448f4","block_type":"box","text":"Options Clearing Corporation may not at all times be adequate to handle current trading volume; or one or more","page_number":57,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"5bf3498f-0ccc-42f5-a8de-e647e80f54f5","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":57,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"5f1ce72b-3ea7-430b-9466-4a9b378753da","block_type":"box","text":"trading of options (or a particular class or series of options), in which event the market on that Exchange (or in that","page_number":57,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"e3b36367-0ea6-42ab-bd78-7516113a8dc8","block_type":"box","text":"class or series of options) would cease to exist, although outstanding options that had been issued by the Options","page_number":57,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"3dcdb8c0-697a-4429-bd9d-226775889995","block_type":"box","text":"Clearing Corporation as a result of trades on that Exchange would continue to be exercisable in accordance with their","page_number":57,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"6f92c146-e59e-4433-8d2c-ec1e76b85f52","block_type":"box","text":"terms.","page_number":57,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"296daea3-29bc-4092-97be-2df8c4da53f1","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":57,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"ad397234-9f56-4a08-a185-c07c8f77f24b","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concert with others","page_number":57,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"1d17d6ed-9768-4b13-9b8b-23ae5b2fc834","block_type":"box","text":"(regardless of whether such options are written on the same or different exchanges or are held or written on one or","page_number":57,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"5915b4f9-ebc6-4cbc-8c89-1d2d7af422c0","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":57,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"9485f2d7-f785-4469-bb47-419b202191d5","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":57,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"44adb5b8-3088-4eb2-a7e3-92a376371ea5","block_type":"box","text":"II-20","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"18b85941-979f-484d-a301-59b8ae6ba4da","block_type":"box","text":"NM1026U-5993100-57/236","page_number":57,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a6d384b2-1b74-46d2-b9f0-190008fd81c7","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":58,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"6485d231-2bb7-4766-b56d-0b026d3581fb","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":58,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"7f61acb9-2a21-41fd-8955-748bd52fc12e","block_type":"box","text":"Call Options.","page_number":58,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"327c263f-8c60-422b-998e-443b21718c06","block_type":"box","text":"A Fund may purchase call options on any of the types of securities or instruments in which it may","page_number":58,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"3e0e3395-75ea-4716-93da-3f587a7b9c9b","block_type":"box","text":"invest. A purchased call option gives a Fund the right to buy, and obligates the seller to sell, the underlying security at","page_number":58,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"4f899d8c-f9f4-4e1c-9a53-d794ee0f0cfb","block_type":"box","text":"the exercise price at any time during the option period. A Fund also may purchase and sell call options on indices.","page_number":58,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"9bf5b6ae-c1b7-46bb-bf60-9b44ac506ccd","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":58,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"179b2c71-047f-46d6-b3e6-b4bbbd4d3378","block_type":"box","text":"underlying the option at a specified price upon exercise, an index option gives the holder the right to receive cash","page_number":58,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"48354ccc-385f-4f2c-8e8c-7c2f2c61959f","block_type":"box","text":"upon exercise of the option if the level of the index upon which the option is based is greater than the exercise price","page_number":58,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"ce173566-4085-42cd-b906-413280908d4b","block_type":"box","text":"of the option.","page_number":58,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"de7b5ea7-ead8-4819-a5ae-4e3d19bf667d","block_type":"box","text":"A written call option is covered if a Fund holds a call on the same security or index as the call written where the","page_number":58,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"6188ef4f-06f8-4480-8bc9-21ae3a901ac3","block_type":"box","text":"exercise price of the call held is (i) equal to or less than the exercise price of the call written, or (ii) greater than the","page_number":58,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"4ecfbe43-6e4c-4634-aaed-3c774afc5d58","block_type":"box","text":"exercise price of the call written provided the difference is maintained by the Fund in assets which are not considered","page_number":58,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"926f53e2-6f3c-40a8-a87f-e96266fcfd88","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":58,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"db7911aa-ed26-44d1-8cab-e2b1fc401c59","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":58,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"c0baf152-eb81-4492-8c17-74157e3cd774","block_type":"box","text":"A Fund may write (","page_number":58,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"95094220-5c6b-4675-96ff-421f04f01790","block_type":"box","text":"i.e.","page_number":58,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"424ac815-2a69-45b3-bba6-decdfc8edf65","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":58,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"3b30a9d5-f6cc-4ad5-971f-04043eb39257","block_type":"box","text":"enter into closing purchase transactions with respect to certain of such options. A covered call option is an option in","page_number":58,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"b30f46d7-2e9a-426a-8acd-7e967c355c11","block_type":"box","text":"which a Fund, in return for a premium, gives another party a right to buy specified securities owned by the Fund at a","page_number":58,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"666a2ca8-86c8-41eb-b62e-a6a7c706ef25","block_type":"box","text":"specified future date and price set at the time of the contract. The principal reason for writing call options is the","page_number":58,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"033c59fe-dde3-4a89-9a69-5c415c3897d8","block_type":"box","text":"attempt to realize, through the receipt of premiums, a greater return than would be realized on the securities alone.","page_number":58,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"d10f81f8-057a-401f-8f8c-a7beed7188e9","block_type":"box","text":"By writing covered call options, a Fund gives up the opportunity, while the option is in effect, to profit from any price","page_number":58,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"cc26934f-2162-4285-bdfa-103255125bed","block_type":"box","text":"increase in the underlying security above the option exercise price. In addition, a Fund’s ability to sell the underlying","page_number":58,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"fa58f139-4e58-42f6-9c4c-566bbc10374e","block_type":"box","text":"security will be limited while the option is in effect unless the Fund enters into a closing purchase transaction. A","page_number":58,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"7c4dbec6-88d7-4eef-b363-d6adc9f6a1fe","block_type":"box","text":"closing purchase transaction cancels out a Fund’s position as the writer of an option by means of an offsetting","page_number":58,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"9a59ed40-4e8b-4d83-acca-eec0aed3487a","block_type":"box","text":"purchase of an identical option prior to the expiration of the option it has written. Covered call options also serve as","page_number":58,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"69e77c63-49dc-4d8b-ba7b-370acdcb1205","block_type":"box","text":"a partial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":58,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"c36efc97-4cd4-4c41-9ac8-428921bb7e23","block_type":"box","text":"A Fund may write","page_number":58,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"8a4eea8d-9781-435a-bf73-896057fbac77","block_type":"box","text":"(i.e.","page_number":58,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"8a289272-624e-412a-b497-66f5f2bbe624","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":58,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"70c7b8a8-b061-46f6-99ad-54134d32e53b","block_type":"box","text":"are not currently held by the Fund. The principal reason for writing uncovered call options is to realize income without","page_number":58,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"a574a5a3-b68b-44ca-9e85-6daa0b0e60f6","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":58,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"969b242f-6b5a-4980-8ef2-e07f740986ac","block_type":"box","text":"a Fund must deposit and maintain sufficient margin with the broker-dealer through which it made the uncovered call","page_number":58,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"f020fddb-2172-4c44-a1ab-c1e2fc131c45","block_type":"box","text":"option as collateral to ensure that the securities can be purchased for delivery if and when the option is exercised.","page_number":58,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"ca8df8a6-d251-4a02-8b76-99df3657d8cb","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":58,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"64d411b2-1b29-404a-8100-ff0729c906dc","block_type":"box","text":"strategy to increase a Fund’s income with minimal capital risk. Uncovered calls are riskier than covered calls because","page_number":58,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"a6b508db-3820-43b3-ab25-31b449b47f28","block_type":"box","text":"there is no underlying security held by a Fund that can act as a partial hedge. Uncovered calls have speculative","page_number":58,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"1ba8d4ee-84cd-46ea-8270-005efe3aac35","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":58,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"cefdd6bb-4f1e-4ffd-98ff-04fa0affa36b","block_type":"box","text":"the underlying security to meet its call obligation. There is also a risk, especially with preferred and debt securities","page_number":58,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"614a322a-9cb1-46e5-b50c-374d20ff8caa","block_type":"box","text":"that lack sufficient liquidity, that the securities may not be available for purchase. If the purchase price exceeds the","page_number":58,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"c49fdfa2-233f-4d38-ba63-75fc9efa0ccc","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":58,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"9a1065c5-c8b2-4b37-b27d-0ad565a5cb03","block_type":"box","text":"Put Options.","page_number":58,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"30f6824c-ae64-49e0-a920-87f32b497401","block_type":"box","text":"A Fund may purchase put options to seek to hedge against a decline in the value of its securities or","page_number":58,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"b5e4194b-4339-4664-9ed9-e038840ab38c","block_type":"box","text":"to enhance its return. By buying a put option, a Fund acquires a right to sell the underlying securities or instruments","page_number":58,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"1f129d0c-e1f5-4f3c-9c21-b138c60b0bf0","block_type":"box","text":"at the exercise price, thus limiting the Fund’s risk of loss through a decline in the market value of the securities or","page_number":58,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"9d3363db-c5fa-43b1-b1ab-63ea7e00f55f","block_type":"box","text":"instruments until the put option expires. The amount of any appreciation in the value of the underlying securities or","page_number":58,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"8260ec5e-a461-4ab1-8f7e-507908cd373c","block_type":"box","text":"instruments will be partially offset by the amount of the premium paid for the put option and any related transaction","page_number":58,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"74d8d6e2-201b-41c1-b735-9c018a9d9456","block_type":"box","text":"costs. Prior to its expiration, a put option may be sold in a closing sale transaction and profit or loss from the sale","page_number":58,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"45b3133a-a8d3-4f67-b4b4-5df7389b9cfd","block_type":"box","text":"will depend on whether the amount received is more or less than the premium paid for the put option plus the related","page_number":58,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"1d067280-204b-4ca7-9cd8-8d160db3c1d9","block_type":"box","text":"transaction costs. A closing sale transaction cancels out a Fund’s position as the purchaser of an option by means of","page_number":58,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"a4620912-bc10-4a11-bf5d-ef9b725ddaaf","block_type":"box","text":"an offsetting sale of an identical option prior to the expiration of the option it has purchased. A Fund also may","page_number":58,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"2c30a11b-ef2c-43f9-8352-7329442cb8cc","block_type":"box","text":"purchase uncovered put options.","page_number":58,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"aa1f0196-56c8-4913-b7db-128dc385982c","block_type":"box","text":"A Fund also may write (","page_number":58,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"691aed94-3a6d-4243-95aa-dfe1d5c51dfd","block_type":"box","text":"i.e.","page_number":58,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"f8a5628d-aa70-495d-91d3-818dde9529b4","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":58,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"90ab1a32-8f7c-49f7-bb52-1577285a22dc","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":58,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"79607ef4-289a-481f-b9ea-02e824ba7515","block_type":"box","text":"A Fund also may write (","page_number":58,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"33b430ae-7793-4a88-a8d7-db5dca406c3d","block_type":"box","text":"i.e.","page_number":58,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"08ed5160-6d72-46ba-99f7-8c0a1a9715f0","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":58,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"068f1429-a5cc-4133-afe3-0f70011f1406","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding short position or has not deposited as","page_number":58,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"5177928f-c8ab-45cb-92b4-ff5ff6414cf2","block_type":"box","text":"collateral cash equal to the exercise value of the put option with the broker-dealer through which it made the","page_number":58,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"b2a2cc9c-9311-47b9-a044-6d5e5e346410","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":58,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"76b5f480-b932-454c-9ed7-1b5c5a4b2c72","block_type":"box","text":"acquire such securities or instruments at a net cost below the current market value. A Fund has the obligation to buy","page_number":58,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"e8f92a1f-21a5-4228-a071-2e32f7b7cc26","block_type":"box","text":"II-21","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ec897679-9273-4887-b0fe-a987aae86fac","block_type":"box","text":"NM1026U-5993100-58/236","page_number":58,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"46821560-3915-42c7-b67d-2ce010966cfe","block_type":"box","text":"the securities or instruments at an agreed upon price if the price of the securities or instruments decreases below","page_number":59,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"2a97b9c7-0870-4e1b-94a2-4e3322c4add5","block_type":"box","text":"the exercise price. If the price of the securities or instruments increases during the option period, the option will","page_number":59,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"4f18df81-c411-4d1d-95e1-be7fbdf9efc9","block_type":"box","text":"expire worthless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":59,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"ed45b424-50fe-4416-88c6-983cd6c6f501","block_type":"box","text":"the exercise price.","page_number":59,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"1debc065-8ba7-4288-8ff2-1f30fef81231","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":59,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"99d1f1b7-6a1c-48e4-b2cf-107948cedad2","block_type":"box","text":"The following information relates","page_number":59,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"85f51558-a6fb-48f3-9fb6-b788b9b1f5c2","block_type":"box","text":"to the unique characteristics of options on GNMA Certificates. Since the remaining principal balance of GNMA","page_number":59,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"93292bfc-0092-4515-bbbf-201c4cf73298","block_type":"box","text":"Certificates declines each month as a result of mortgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":59,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"535bbe94-fb93-4f19-9da8-16cc0fd140b9","block_type":"box","text":"Certificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Certificates","page_number":59,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"5b9307b1-e292-4dbe-bb5f-364d239fddf8","block_type":"box","text":"it holds no longer have a sufficient remaining principal balance for this purpose. Should this occur, a Fund will","page_number":59,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"41669c6f-af47-4b49-9705-08a4b37a0dcc","block_type":"box","text":"purchase additional GNMA Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash","page_number":59,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"c9644028-3651-4d0b-ac46-83057258ab0e","block_type":"box","text":"market in order to maintain its “cover.”","page_number":59,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"c753550a-39d1-43c1-8c1d-c3e69cd67650","block_type":"box","text":"A GNMA Certificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":59,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"ca7e1dfc-1869-42b0-863b-a723e34b7f57","block_type":"box","text":"to represent cover for the option in the event of a decline in the GNMA coupon rate at which new pools are originated","page_number":59,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"4dab29ec-773b-4a5e-b9c7-c2fa4766aefe","block_type":"box","text":"under the FHA/VA loan ceiling in effect at any given time. If this should occur, a Fund will no longer be covered, and","page_number":59,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"5d05def0-47e5-4c32-b9e8-50f0cee79b0c","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Certificate with a certificate that","page_number":59,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"91ab28f7-aa64-47bd-8fc9-ee4c1b65664b","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Certificate, it may realize an unanticipated loss","page_number":59,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"180d5599-9b5c-40df-b334-2624124e6b52","block_type":"box","text":"and incur transaction costs.","page_number":59,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"3f42b1c0-6a1e-4b93-8cb2-6bd77c5be7d3","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":59,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"59c84abf-4d95-4a57-9695-7b2379204635","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to enter into","page_number":59,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"0fd7b3e5-3a65-488d-a99e-b774124f6566","block_type":"box","text":"a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":59,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"cad8bd84-d464-4a93-b994-e9a8b8605c38","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":59,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"0dfc3769-4da2-49a6-94aa-b161c4f4d790","block_type":"box","text":"i.e.","page_number":59,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"b42ef4b8-40d9-44e8-b0e5-1f735ffa8efb","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":59,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"a181a4da-d6b7-4b3a-bc21-c459399c3ba5","block_type":"box","text":"Depending on the terms of the particular option agreement, a Fund will generally incur a greater degree of risk when","page_number":59,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"b64c6a5f-5db9-4863-81d6-2e03cf65a80b","block_type":"box","text":"it writes a swaption than it will incur when it purchases a swaption. When a Fund purchases a swaption, it risks","page_number":59,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"20074b8d-8b0a-4c52-8bf4-23beeff40a20","block_type":"box","text":"losing only the amount of the premium it has paid should it decide to let the option expire unexercised. However,","page_number":59,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"b8a79085-556e-4958-a8a0-17aa8f9f1f2b","block_type":"box","text":"when a Fund writes a swaption, upon exercise of the option the Fund will become obligated according to the terms of","page_number":59,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"3d5ca204-ecd3-4ffc-a58d-c3220f63c03c","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":59,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"73f38432-417a-48b8-b2b5-526a5dbf503f","block_type":"box","text":"required, to be cleared.","page_number":59,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"49fc5039-1f8b-43f7-9759-f8143ab075d2","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a particular investment or","page_number":59,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"3ec8bfe2-974d-41a1-9da1-1346b7f74815","block_type":"box","text":"portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":59,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"c14174b3-780c-47ec-832d-50b27c140374","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":59,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"62a2b987-3087-4e26-8c1c-8cfc486976b7","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":59,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"bf611ad6-5bd5-4b52-9678-1f8e3e0d3784","block_type":"box","text":"Derivatives” above.","page_number":59,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"6372d297-b142-46e0-bace-9525b1fb321a","block_type":"box","text":"FLEX Options.","page_number":59,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"f0b83a13-175f-405d-b668-f123385db90d","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":59,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"8879e7fc-22a6-4687-bdcf-ce82a5acc035","block_type":"box","text":"are guaranteed for settlement by the Options Clearing Corporation (“OCC”). FLEX Options are listed on a U.S. national","page_number":59,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"66042757-0f55-4763-9148-cf32dde0850c","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":59,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"503fd8c8-0b92-4ace-8021-51b2e5b4ca5a","block_type":"box","text":"exercise prices, exercise styles (","page_number":59,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"d6838cd5-6e73-4cc0-9a19-fe53eb6fa19c","block_type":"box","text":"i.e.","page_number":59,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"b767bc7c-7a44-4afb-bd4a-55a43abb4718","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":59,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"bb7650d2-a848-4e0b-8135-e146c6fda70a","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":59,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"bd241623-cbb6-48a8-8164-d9378e43373a","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterparty exposure of OTC options positions. Each","page_number":59,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"d715d6c4-43c3-4212-8039-05f54d5c52cf","block_type":"box","text":"option contract entitles the holder thereof to purchase (for the call options) or sell (for the put options) shares of the","page_number":59,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"c8c088e7-8489-4e31-9dc2-ca55a13bacdc","block_type":"box","text":"reference asset at the strike price. A Fund’s portfolio may include several types of FLEX Options, including both","page_number":59,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"ac4db898-c74e-460e-b05e-92215455ab8e","block_type":"box","text":"purchased and written put and call options (as further described below). The FLEX Options are all European style","page_number":59,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"9df0ae01-0020-46c7-98d6-0e0970b6027b","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":59,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"1266c8b4-4d1a-43d4-91a6-e3c796712a59","block_type":"box","text":"FLEX Option’s expiration date.","page_number":59,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"6177a7cd-4d31-445f-9ff2-f9a2534d2c4e","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the “buyer for","page_number":59,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"6447fa75-d156-4e92-9fe8-f1c7b028b2b0","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterparty risk for clearing members and options traders.","page_number":59,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"cde7d68d-ecd5-431b-b7cf-5b3102cdcd3b","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterparty risk with the OCC and","page_number":59,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"d28e4523-9769-4954-b59c-bd7e8f4511a9","block_type":"box","text":"subject to the risk that the OCC may fail to perform the settlement of the FLEX Options due to bankruptcy or other","page_number":59,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"a249e34b-0c26-4bd0-9d5b-f413ac3ad675","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to perform its obligations under the","page_number":59,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"9fa0577f-d6a8-4fa0-b68a-c9f4051dcf71","block_type":"box","text":"FLEX Options contracts.","page_number":59,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"c6281423-2d99-4ab2-82f6-c71460803cb9","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":59,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"2de159b4-1394-4aa4-8bcc-c8540041ccde","block_type":"box","text":"Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: certain stock","page_number":59,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"6738f985-43b3-468a-b1dc-64aea1fa02d7","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":59,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"fa13873f-741e-4ea5-9529-594cb93e1edb","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":59,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"596025b9-ea68-4c84-b80a-cd31b3742dbb","block_type":"box","text":"liquidation of the issuer of the underlying security. According to the OCC’s by-laws, the nature and extent of any such","page_number":59,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"b2ca0d04-3ad8-4edf-9d71-6072d606a77d","block_type":"box","text":"adjustment is to be determined by the OCC’s Securities Committee, in light of the circumstances known to it at the","page_number":59,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"b04ef983-aa44-48a9-926e-44ab065d9b5f","block_type":"box","text":"II-22","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0a293884-0f82-438c-8290-d24a5438b6b2","block_type":"box","text":"NM1026U-5993100-59/236","page_number":59,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"215d00e2-9c06-4cc3-b67d-8d18389c975c","block_type":"box","text":"time such determination is made, based on its judgment as to what is appropriate for the protection of investors and","page_number":60,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"d46e6345-5109-494c-9c17-12c187e2440f","block_type":"box","text":"the public interest, taking into account such factors as fairness to holders and writers (or purchasers and sellers) of","page_number":60,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"c06643a5-8413-45aa-8ca6-64edd29c5c6f","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":60,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"fd8d603d-666f-44ce-8fef-0add706aae8a","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":60,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"b761133f-4a76-49dd-b641-fc8556f99ca5","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":60,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"9911fbcd-4f7a-4cf7-8aaa-ea9753cc99dc","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":60,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"fdc13ea2-ed23-4a69-92fc-0f6cec934ae4","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":60,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"c243e7f6-44bd-4002-91ce-b91c4fc236b8","block_type":"box","text":"on an exchange-traded fund (“ETF”) or the S&P 500 Index (together with such ETF, a “Reference Asset”). As","page_number":60,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"70bece09-d4b6-4b1c-8f90-2fc28c7e1d1c","block_type":"box","text":"such, the value of a Fund’s FLEX Options will fluctuate with changes in the value of the securities held by the","page_number":60,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"6aa84213-2c07-46d0-adae-f97d22421776","block_type":"box","text":"ETF, and thus the ETF’s share price. In addition to the value of the ETF, the value of an option, in general, will","page_number":60,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"5b0968e8-ab55-44ff-b94a-4c9569171e58","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":60,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"a74ae553-1c2b-46f3-91cb-3b1458d795c8","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":60,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"72a17480-dc86-45b2-be19-9aac1e990f23","block_type":"box","text":"expire unexercised have no value.","page_number":60,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"02c2570f-be24-4555-a364-83b5f9994e8e","block_type":"box","text":"The puts and calls on the Reference Asset entitle the purchaser of the option the right to purchase (for a","page_number":60,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"3f6b19ac-7ef5-4baf-8f7a-468bec10978e","block_type":"box","text":"call option) or sell (for a put option) the Reference Asset at a predetermined specified price (the “strike price”).","page_number":60,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"31eaae04-d358-414d-b641-a2b7d1f59546","block_type":"box","text":"When a Fund writes a call on the Reference Asset, it receives a premium and agrees that the purchaser of the","page_number":60,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"64922499-d2f7-4756-b8d9-29ed89dfe5db","block_type":"box","text":"call, upon exercise of the call, will receive from the Fund the delivery of a specified number of shares of the ETF","page_number":60,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"c4b89057-33e7-4576-a525-18e2b56d848d","block_type":"box","text":"in exchange for the strike price. When a Fund buys a call on the Reference Asset, it pays a premium and has the","page_number":60,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"0ca9a1a6-c6f4-4a1d-a8b9-cf00f7f33a9c","block_type":"box","text":"same rights to such call as indicated above. When a Fund buys a put on the Reference Asset, it pays a premium","page_number":60,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"a4d9e629-7ecb-4262-a393-2b46be481b28","block_type":"box","text":"and has the right to require the seller of the put, upon the Fund’s exercise of the put, to deliver the specified","page_number":60,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"3d2ec69e-911b-41ee-b461-430f00c0028a","block_type":"box","text":"number of shares of the ETF in exchange for the strike price. When a Fund writes a put on the Reference Asset,","page_number":60,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"fc47ccf1-6993-49fe-8f45-5e61903653e8","block_type":"box","text":"it receives a premium and the purchaser of the put has the right to require the Fund to deliver the specified","page_number":60,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"75207e11-0c82-4591-a50b-82b723de5efa","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":60,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"59dfef9a-4d0f-41ef-aba0-bd0267e0630e","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":60,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"f691d42e-1aea-46de-8c00-fb70853fd2c3","block_type":"box","text":"FLEX Options that are cash-settled. Cash-settled options give the holder the right to receive an amount (or owe","page_number":60,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"3653d0b0-e4bd-4bb3-b079-8026e8c59dda","block_type":"box","text":"an amount) of cash upon the exercise of the option. Gain or loss depends on changes in the value of the ETF’s","page_number":60,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"f26c73df-3e10-4e64-a7bb-c12860286b50","block_type":"box","text":"share price relative to the strike price for a given option contract. The amount of cash is equal to the difference","page_number":60,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"cd20eda2-0264-4dc2-a91d-86d7d7cffc83","block_type":"box","text":"between the closing price of the ETF’s share price and the exercise price of the option contract times a specified","page_number":60,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"7e704b80-20a6-4adc-bb37-338c78238070","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":60,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"4109104e-3d3e-4692-94ae-547721cbe939","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":60,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"03d77457-3c2e-48f1-bf38-11654675d8e0","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":60,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"fe800d9e-7c7c-4419-9177-6c9013e52e2f","block_type":"box","text":"closing value for that day is available, it runs the risk that the level of the Reference Asset may subsequently","page_number":60,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"bad7c7f4-84ce-459b-8e6e-178727844a7a","block_type":"box","text":"change. If such a change causes the exercised option to fall out of the money, the applicable Fund will be","page_number":60,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"8039a0e0-2fa6-4206-bb98-f64916364ae0","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":60,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"aebcd35f-59ec-41a8-afe2-44c2f77e96c1","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":60,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"7333e14e-3cab-421c-8560-b6d219b3c2d2","block_type":"box","text":"Foreign Exchange Transactions.","page_number":60,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"d4de76cf-4b78-4059-9f56-2a85480b12f3","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":60,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"172e8443-7608-494b-a11a-3f42140ec160","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":60,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"a1ef8e10-d1e9-429e-88a6-e959c5154562","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its portfolio","page_number":60,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"b9d11a62-ac62-4132-b2d1-6d4f9bfd31d4","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to certain Funds, to seek to enhance returns.","page_number":60,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"6e6b0c04-b1ab-4da5-aa40-038f19d1394f","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":60,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"91f9946e-6fe2-460d-9776-4c53c7996fdf","block_type":"box","text":"Fund, sold by a Fund but not yet delivered, or committed or anticipated to be purchased by a Fund. As an illustration,","page_number":60,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"e08181b3-ef17-40df-8553-91da78c15449","block_type":"box","text":"a Fund may use such techniques to hedge the stated value in U.S. dollars of an investment in a yen-denominated","page_number":60,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"2416e5c2-51e2-4e1e-a638-08269cc75987","block_type":"box","text":"security. For example, the Fund may purchase a foreign currency put option enabling it to sell a specified amount of","page_number":60,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"7b1c67af-69ef-433a-b61b-98a0bf80f66a","block_type":"box","text":"yen for dollars at a specified price by a future date. To the extent the hedge is successful, a loss in the value of the","page_number":60,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"7489441a-f41c-4730-9269-d29fbdbf9639","block_type":"box","text":"yen relative to the dollar will tend to be offset by an increase in the value of the put option. To offset, in whole or in","page_number":60,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"e69d1c35-3feb-40c5-8782-6f9c5a40ac7b","block_type":"box","text":"part, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":60,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"b7c765cb-6517-4518-b2cd-0b41c4d1beb3","block_type":"box","text":"sell a specified amount of yen for dollars at a specified price by a future date (a technique called a “straddle”). By","page_number":60,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"0ae5268c-77b9-422e-a0e3-92c35f0d9041","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the opportunity to profit without limit from increases in","page_number":60,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"8a23dbd9-b752-42e1-a3b9-8eeb8d0a9ef2","block_type":"box","text":"the relative value of the yen to the dollar. “Straddles” of the type that may be used by a Fund are considered hedging","page_number":60,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"b77d1d0b-8c32-44a9-b9bb-880fc57a0fc9","block_type":"box","text":"transactions. Certain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":60,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"b7c9aa0e-0d68-4aff-a974-b95cfe0bfbdf","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":60,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"3d9bd836-a588-469a-8613-f88a29481c98","block_type":"box","text":"use of Currency Instruments to effect hedging strategies is intended to reduce the volatility of the NAV of the Fund’s","page_number":60,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"feb98cb4-7ea4-4e99-8925-0638ba1ce9e9","block_type":"box","text":"shares; however, the use of such hedging strategies will not prevent the NAV of the Fund’s shares from fluctuating.","page_number":60,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"cdd661e7-91ab-4392-a752-7c1d5f44daa7","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":60,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"24847617-4027-42d9-b9cf-83ebc657c5dd","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":60,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"0a4b69b0-3db4-4d65-9a30-1dbe1170b511","block_type":"box","text":"II-23","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"72c3e4ee-e20d-4d6a-8c22-922004d4feba","block_type":"box","text":"NM1026U-5993100-60/236","page_number":60,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f966fadf-ffe1-4de1-8f69-fa0a695bbf2a","block_type":"box","text":"accurately predicted and that the Fund’s hedging strategies will be ineffective. To the extent that a Fund hedges","page_number":61,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"52d560ca-65a6-441a-810f-4fa1f57ff0ac","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":61,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"869ed8f5-e1d4-4c8f-8f58-cc24568ea793","block_type":"box","text":"Furthermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":61,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"96dfa976-904b-4762-b918-dd0f76793f26","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":61,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"3dcc2d8e-2520-4963-a294-94d232bff9b2","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":61,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"ed429f90-8eb7-4c7d-874f-ba48fbd475bc","block_type":"box","text":"domestic bank, or foreign or domestic securities dealer, to make or take future delivery of a specified amount of a","page_number":61,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"4a0c81a5-b18d-4da8-8c05-4d357d90e903","block_type":"box","text":"particular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":61,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"6b9cacc1-fefe-443b-9069-7209d6678f73","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which certain banks","page_number":61,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"03ba3a2c-be5c-442d-b85a-65fd3061b62e","block_type":"box","text":"or dealers have refused to quote prices for such forward contracts or have quoted prices with an unusually wide","page_number":61,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"c778840b-3161-4e7e-83c5-3f5afdce35bb","block_type":"box","text":"spread between the price at which the bank or dealer is prepared to buy and that at which it is prepared to sell.","page_number":61,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"1127e440-0cad-4728-b6b5-db7208d58185","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":61,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"085b6e01-f5b2-4031-8e70-f4bd5fe9bc48","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterparty risk. Any such failure to perform by a counterparty","page_number":61,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"6d0c2444-543a-42bc-9583-dab0aa1d8a3f","block_type":"box","text":"would deprive the Fund of any profit potential or force the Fund to cover its commitments for resale, if any, at the","page_number":61,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"bb4e2f26-9da6-424b-b93f-e95d7fcca458","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":61,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"dfb6da2e-99f0-45f0-a7c0-1a16039ed0b7","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":61,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"4e43a41a-67aa-4b16-8800-d733fde49f56","block_type":"box","text":"anticipated, in the event that (i) the currency exchange rate movement is so generally anticipated that the Fund is not","page_number":61,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"8980c6ca-3d4a-4eb8-9785-ae7f99a46662","block_type":"box","text":"able to enter into a hedging transaction at an effective price, or (ii) the currency exchange rate movement relates to a","page_number":61,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"5ba43684-f368-448e-8570-2b3dd24fcebf","block_type":"box","text":"market with respect to which Currency Instruments are not available and it is not possible to engage in effective","page_number":61,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"2564a849-0d56-4ecd-a2ba-8b6d0501e772","block_type":"box","text":"foreign currency hedging. The cost to a Fund of engaging in foreign currency transactions varies with such factors as","page_number":61,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"7ce797b3-1f17-44ca-a3aa-396cbdf6621e","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":61,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"10c89b5c-2af3-4975-a667-6416939023af","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":61,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"9f07a963-4efc-4620-a858-43ddb6a13b34","block_type":"box","text":"involved.","page_number":61,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"a8a1d818-0810-4111-9db2-b06eacd03148","block_type":"box","text":"A Fund will not hedge a currency in excess of the aggregate market value of the securities that it owns (including","page_number":61,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"78611b5e-441a-4bd4-bfdc-f039f4b5f1e4","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":61,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"ff0b0e2c-118f-4777-a807-b411556cd548","block_type":"box","text":"denominated in such currency.","page_number":61,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"12a7945d-3443-4d8f-802f-5efbdcd7cef7","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":61,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"465d5bbc-334d-48f9-b666-cc55894e1c8f","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":61,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"49407f34-d443-455f-96a8-faa202226a62","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":61,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"df5b2c43-006d-4882-b4dd-eeb7e3c564d5","block_type":"box","text":"transactions are similar but are settled in the current, or “spot”, market. A Fund will enter into foreign exchange","page_number":61,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"9d5b6751-0469-405b-ac6c-c63b306fc2ad","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a portfolio position, or, with respect to certain","page_number":61,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"56ec2719-d971-4d1a-8f17-297354f8a6cb","block_type":"box","text":"Funds, to seek to enhance returns. FX forwards involve substantial currency risk, credit risk and liquidity risk. A Fund","page_number":61,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"4da78ac7-e306-4e48-a824-e5f0fb65886f","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":61,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"71986005-fe00-4a32-a578-3d2dc12e5ebc","block_type":"box","text":"purchasing a currency needed to settle a security transaction or selling a currency in which the Fund has received or","page_number":61,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"eaa871d0-9bc0-4583-a5d9-fe528809ace4","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":61,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"4920bae5-d478-4f61-a410-f5fa013796f9","block_type":"box","text":"hedging a portfolio position by selling forward a currency in which a portfolio position of the Fund is denominated or","page_number":61,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"da6057ed-1a8a-4ee7-808c-a17a52f0ba9c","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a portfolio position in the near future. A Fund may","page_number":61,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"04687f23-475b-45de-972d-fc7372846880","block_type":"box","text":"also hedge a currency by entering into a transaction in a Currency Instrument denominated in a currency other than","page_number":61,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"7f2a2a7d-b69f-4a8d-a8a5-98d6b6854bf5","block_type":"box","text":"the currency being hedged (a “cross-hedge”). A Fund will only enter into a cross-hedge if the Manager believes that","page_number":61,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"ec205c96-fa78-4d1a-b260-cb7557a19049","block_type":"box","text":"(i) there is a demonstrably high correlation between the currency in which the cross-hedge is denominated and the","page_number":61,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"d682b704-3d30-48f5-bd59-ff7e98dee6e2","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":61,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"4975c2e7-e841-411d-8412-2f83644b11fc","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":61,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"647784fa-b47c-487e-b235-886f31315434","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":61,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"c40fd9c5-3766-4452-ad11-8174f67f028a","block_type":"box","text":"A Fund may also engage in proxy hedging transactions to reduce the effect of currency fluctuations on the value","page_number":61,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"f642817d-a513-4c16-99cb-a06f5b508824","block_type":"box","text":"of existing or anticipated holdings of portfolio securities. Proxy hedging is often used when the currency to which the","page_number":61,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"7ab95c18-6bb4-4e22-8c2d-e95f767ca42e","block_type":"box","text":"Fund is exposed is difficult to hedge, or to hedge against the U.S. dollar. Proxy hedging entails entering into a forward","page_number":61,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"31a62592-1bee-4e0c-9d23-18b136beac8d","block_type":"box","text":"contract to sell a currency whose changes in value are generally considered to be linked to a currency or currencies","page_number":61,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"01bc50c3-8845-4e1b-a52a-a349fcc9fc55","block_type":"box","text":"in which some or all of the Fund’s securities are, or are expected to be, denominated, and to buy U.S. dollars. Proxy","page_number":61,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"ec4504f3-fb71-4c4d-8964-eb06313b388b","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":61,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"f214c6f7-66a2-4a24-a83b-052beba53be3","block_type":"box","text":"transactions can result in losses to the Fund if the currency being hedged fluctuates in value to a degree or in a","page_number":61,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"06beb69e-5839-44e4-ac52-ee00eedcc60e","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":61,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"73c67974-53b3-45a2-9149-ab5504b81952","block_type":"box","text":"may not be present, including during the particular time that a Fund is engaging in proxy hedging.","page_number":61,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"a7e5ef09-ab71-4f3e-9ff5-5c8aba62188a","block_type":"box","text":"A Fund may also cross-hedge currencies by entering into forward contracts to sell one or more currencies that","page_number":61,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"d9febe10-26b1-4cee-baae-d57fd1c05285","block_type":"box","text":"are expected to decline in value relative to other currencies to which the Fund has or in which the Fund expects to","page_number":61,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"532328fa-5f1f-46f0-98f8-b616ee037b51","block_type":"box","text":"have portfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":61,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"d988785b-1b32-4b44-b915-685f105b59ff","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":61,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"40a9d07e-2d10-4f79-8b2a-1fba2f521dd7","block_type":"box","text":"Fund would sell Canadian dollars to reduce its exposure to that currency and buy Japanese yen. This strategy would","page_number":61,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"27bacfbd-7237-4eb9-b307-46c267eae36e","block_type":"box","text":"II-24","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"65254909-48dd-48fc-858e-45b711db8d83","block_type":"box","text":"NM1026U-5993100-61/236","page_number":61,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"10c688fb-9633-439e-b871-7af6bb1fa1f6","block_type":"box","text":"be a hedge against a decline in the value of Canadian dollars, although it would expose the Fund to declines in the","page_number":62,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"61f62ab4-d420-47fc-b2b2-21599b55854e","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":62,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"849b24b2-0af9-4019-bc54-eecdc836bd40","block_type":"box","text":"Some of the forward non-U.S. currency contracts entered into by the Funds are classified as non-deliverable","page_number":62,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"fe642447-ae44-46a5-bf19-196604ee5230","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be thinly traded or are denominated","page_number":62,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"719b9b3e-4fa7-48b5-b9bd-23fdac8c7bfe","block_type":"box","text":"in non-convertible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":62,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"ba6196ec-e0f0-4073-8f6e-5154033e4b82","block_type":"box","text":"the difference between the agreed upon exchange rate and the spot rate at the time of settlement, for an agreed","page_number":62,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"4414394d-3bd6-42e3-91fc-ac7d4243442b","block_type":"box","text":"upon notional amount of funds. All NDFs have a fixing date and a settlement date. The fixing date is the date at which","page_number":62,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"f13051ef-5151-4d9e-a9a5-1916b495f584","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":62,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"273b2d8c-f2a8-470c-bec8-204f68d2887d","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the party receiving payment. NDFs are","page_number":62,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"fc69d27c-5320-4fc9-b902-e28ff8a65031","block_type":"box","text":"commonly quoted for time periods of one month up to two years, and are normally quoted and settled in U.S. dollars.","page_number":62,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"8424c2da-25b8-4053-89c3-edf7c79b936b","block_type":"box","text":"They are often used to gain exposure to and/or hedge exposure to foreign currencies that are not internationally","page_number":62,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"003bff16-a391-4e75-be13-05e532fa738d","block_type":"box","text":"traded.","page_number":62,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"9b7f50d8-2d3c-498c-81b0-a34554858c69","block_type":"box","text":"Currency Futures.","page_number":62,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"2e2478e6-e70f-4d0c-a4ed-64ca9755c5ff","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":62,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"fa010c99-f81f-4203-8c6d-6aa602503b76","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":62,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"f0afb3e8-fbb9-44eb-8ea9-f03d9a77cbfa","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":62,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"a9ca1f9b-81c0-405a-86fd-524deedb9ca5","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":62,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"3ec83eba-db58-4539-a0ed-d70e80f2814c","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":62,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"8c1745ad-4fb2-45b3-b1ae-1d5fda4e7e88","block_type":"box","text":"Currency Options.","page_number":62,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"c6187ec9-5440-4461-93f6-92b17586bc7d","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":62,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"624f0ba3-a666-4bba-946b-5aec898dad55","block_type":"box","text":"through the use of currency options. Certain Funds have fundamental investment restrictions that permit the","page_number":62,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"75fccf7f-6d0a-4196-9dec-d66bb4077edd","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":62,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"6599b42f-d32f-4d4f-af0d-432e5a25113d","block_type":"box","text":"securities. For example, in consideration for an option premium the writer of a currency option is obligated to sell (in","page_number":62,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"d92bd8b6-8692-4451-9617-5e594b252807","block_type":"box","text":"the case of a call option) or purchase (in the case of a put option) a specified amount of a specified currency on or","page_number":62,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"aa4c9f4c-322c-41f9-b5dd-f7a3af1f8a5c","block_type":"box","text":"before the expiration date for a specified amount of another currency. A Fund may engage in transactions in options","page_number":62,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"5fb96ae8-cff7-4ee7-8277-614d15a54cdd","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":62,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"7a20bfd5-f36c-446d-b6c2-f013d2162f94","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":62,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"d65801cb-5f61-40a3-b85b-e06bdc90e30d","block_type":"box","text":"structures and/or expirations. Where a Fund is permitted to write currency options, it may write covered call options","page_number":62,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"826268fd-f0d9-4432-ba6a-308a840dd152","block_type":"box","text":"on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options involve substantial","page_number":62,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"dac6d09d-8e77-4d04-870c-df04dfa89624","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":62,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"6cf6de8f-a60e-4149-9705-95d51671923f","block_type":"box","text":"Currency Swaps.","page_number":62,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"1b2c807c-0fa3-46c8-bd0a-e1792d5f1241","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":62,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"4eb31be7-1fbc-4c5d-9698-11566af3230f","block_type":"box","text":"hedge portfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":62,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"c521016c-7438-48e4-9b4a-cc7a33dfbc05","block_type":"box","text":"second currency on a spot basis and sold for the second currency on a forward basis. Currency swaps involve the","page_number":62,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"dbe0a2a0-83b6-4c30-96a1-0dbafa82337e","block_type":"box","text":"exchange of the rights of a Fund and another party to make or receive payments in specified currencies, and typically","page_number":62,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"db254b36-cab4-4512-981f-ba379268c2fd","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":62,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"01317214-cb88-4ad0-94f5-2228a63d443b","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other party to the","page_number":62,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"60471ae4-cf7f-4424-b856-1faed8ce48b0","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":62,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"f986e90a-00d3-4046-9773-ccefb2181ee0","block_type":"box","text":"Distressed Securities.","page_number":62,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"7bdaab9d-dade-45d3-9ba7-8d652848584b","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":62,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"9b6ddee6-42d0-4067-8de3-b2ec59aebf94","block_type":"box","text":"are the subject of bankruptcy proceedings or otherwise in default or in risk of being in default as to the repayment of","page_number":62,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"a630cdb2-9c7b-4b36-9263-f8b9baa2770e","block_type":"box","text":"principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one","page_number":62,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"6b9ca7fa-f642-43cc-930e-162a51140f1f","block_type":"box","text":"or more nationally recognized statistical rating organizations (for example, Ca or lower by Moody’s and CC or lower by","page_number":62,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"5c866e63-8b3e-4c7f-9621-42500274d7b3","block_type":"box","text":"S&P or Fitch) or, if unrated, are in the judgment of the Manager of equivalent quality (“Distressed Securities”).","page_number":62,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"54238d9d-780d-40f2-90c9-42c83e45903f","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":62,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"fd05fd7c-ce3e-4ca3-8ce8-4801ec324a6f","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":62,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"5a12e735-1a43-44dd-9ffb-2a640d5053f5","block_type":"box","text":"issuer of the Distressed Securities will make an exchange offer or will be the subject of a plan of reorganization","page_number":62,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"45a2884f-b198-4072-8922-fd12ad3360a6","block_type":"box","text":"pursuant to which the Fund will receive new securities in return for the Distressed Securities. However, there can be","page_number":62,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"cdf9f9f2-0204-4a9d-9d12-305dfb48c022","block_type":"box","text":"no assurance that such an exchange offer will be made or that such a plan of reorganization will be adopted. In","page_number":62,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"cbc95067-2f7e-4d0c-925b-0875e82229ba","block_type":"box","text":"addition, a significant period of time may pass between the time at which a Fund makes its investment in Distressed","page_number":62,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"09353f8f-9f03-48b2-8c8d-e285ea619c68","block_type":"box","text":"Securities and the time that any such exchange offer or plan of reorganization is completed. During this period, it is","page_number":62,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"d4bdcdbe-266a-4dbe-a859-0ecb82820d9f","block_type":"box","text":"unlikely that a Fund will receive any interest payments on the Distressed Securities, the Fund will be subject to","page_number":62,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"b18de499-36b3-4e6c-b244-010d73b46938","block_type":"box","text":"significant uncertainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":62,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"df2cdb01-5a0f-43fd-a3af-7a27ccb5f70b","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":62,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"bb19076a-82cc-4434-8a3d-75a15469e895","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":62,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"83d5ed49-0356-49a4-8a3b-d4549cf3289e","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncertainty as to","page_number":62,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"0957f0c6-0d9c-46d5-a8cb-df2b9b0af3ee","block_type":"box","text":"when and in what manner and for what value the obligations evidenced by the distressed securities will eventually be","page_number":62,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"523c6ee4-d23e-41dd-ac32-aa86984b615e","block_type":"box","text":"satisfied (","page_number":62,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"082ed55a-ad28-4447-9544-cc9f5fb43a0c","block_type":"box","text":"e.g.","page_number":62,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"3163b3e5-c347-465b-b246-3bdb6205b18e","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":62,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"bb34ebbf-d470-4783-aa14-e3c34e56dce4","block_type":"box","text":"distressed securities or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is","page_number":62,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"240fba16-20d5-47c2-afb9-c532d0cc58d7","block_type":"box","text":"II-25","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"563883e5-805a-450a-8594-7aebc0f6174b","block_type":"box","text":"NM1026U-5993100-62/236","page_number":62,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"037370f6-1509-47eb-9aa2-7167b5b4fad9","block_type":"box","text":"made or plan of reorganization is adopted with respect to Distressed Securities held by a Fund, there can be no","page_number":63,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"6225b39b-9e91-4428-ba0e-067e6b4efa36","block_type":"box","text":"assurance that the securities or other assets received by a Fund in connection with such exchange offer or plan of","page_number":63,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"3177fdf1-2d85-4702-a86f-8f1c0a4e1bca","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":63,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"5ee0fce0-35d5-47d5-b8d4-cb30202eff5d","block_type":"box","text":"was made or no value. Moreover, any securities received by a Fund upon completion of an exchange offer or plan of","page_number":63,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"94302bc8-c354-4eaa-a274-293e1fc23bf2","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund participates in negotiations with respect to any","page_number":63,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"6b46c096-9f6c-458c-a717-d19822caf85d","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":63,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"a9d4b8be-00a6-4c51-97d7-e3f8a0f88529","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":63,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"45555e7a-b65a-476f-b3fb-d176fbcbb203","block_type":"box","text":"Fund may have a more active participation in the affairs of the issuer than that assumed generally by an investor. The","page_number":63,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"1672bad5-919a-4447-834e-47ee9141e0fe","block_type":"box","text":"Fund, however, will not make investments for the purpose of exercising day-to-day management of any issuer’s","page_number":63,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"e7bbcfe1-2a87-48c7-a2ec-bb81464b4e0c","block_type":"box","text":"affairs.","page_number":63,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"39c4eee9-7d01-42c2-aec7-86ecbaf05ecc","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":63,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"b16f6690-0883-4134-a731-9d64298fffb9","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":63,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"334541a9-84af-4bbe-83ba-a759c2815c93","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":63,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"cbe48ea0-9902-4b33-a1c8-bc061106ff7a","block_type":"box","text":"consider ESG factors as part of the investment process for the Fund. Fund management views ESG integration as the","page_number":63,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"765a82d9-ade5-4ebb-b428-7c033541dca9","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":63,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"f4cc894c-091b-4a33-b39a-78c3a8eab21e","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s particular investment","page_number":63,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"f697243a-dbee-448c-845c-ff9814e88db1","block_type":"box","text":"strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock","page_number":63,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"7650033f-e6dc-4be5-8e08-243507fde6e1","block_type":"box","text":"research across the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":63,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"7fc6a3b8-61be-438b-8c89-d21b2e831699","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":63,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"80aaba4e-3cc0-44db-be6c-89b2470abf27","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":63,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"730e2590-ee0b-4869-aab3-f1fa6949c3b4","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While Fund","page_number":63,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"0dd2d0e6-7508-4972-af4b-62709f77e751","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term performance,","page_number":63,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"2ca431f9-11be-4765-8917-b4cbd4b80b40","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":63,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"2f6a1db8-0efc-499d-a309-7a74f2e6bb04","block_type":"box","text":"Equity Securities.","page_number":63,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"2037fbc2-138f-4c36-b5bd-51c239fbbf02","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for certain","page_number":63,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"810f4f41-bdc0-4432-8b0c-9316ba6a4680","block_type":"box","text":"Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":63,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"fc4975b5-eaa7-4c03-b9a5-a2c0068cf3a2","block_type":"box","text":"interests in trusts; general and limited partnerships and limited liability companies; and depositary receipts. Stock","page_number":63,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"96e1acb9-4a2d-4ef5-b258-2ae2bdea801e","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a portfolio","page_number":63,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"c5416acb-60b7-44aa-855e-6d0a736b2f2f","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":63,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"7ad4ed78-eb84-4049-9e30-12b04f0abe83","block_type":"box","text":"and overall market and economic conditions. The value of equity securities purchased by the Fund could decline if the","page_number":63,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"69e4e240-b2de-4753-8b4b-324ce2b46e9e","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":63,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"7169043c-3a2d-4efa-bb3f-2474e28b7a73","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a particular industry or industries, such as labor","page_number":63,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"4a837e0e-e2df-4cbb-bdbe-f3b275b3b0ad","block_type":"box","text":"shortages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":63,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"f1e53bbc-e8fd-4e31-8fd2-ef213eb67711","block_type":"box","text":"due to general market conditions that are not specifically related to a company or industry, such as real or perceived","page_number":63,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"300aeafb-eae9-40ec-bb31-f04f1dafb5f4","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":63,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"f3f849d4-9a3e-4d74-a60a-0df3dd90e56d","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":63,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"5aadd240-506e-4117-ab03-efc6ce0a6ed0","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public offerings","page_number":63,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"736c07b7-a619-4fd6-9c51-fc2aea7e28e0","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for certain Funds. There is","page_number":63,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"72da9b55-ac15-42e7-9796-2e9def40e560","block_type":"box","text":"no assurance that any Fund will have continued access to profitable IPOs and therefore investors should not rely on","page_number":63,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"597eb30d-977c-4556-8b08-70f5347ed296","block_type":"box","text":"these past gains as an indication of future performance. The investment performance of a Fund during periods when","page_number":63,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"3206202d-ab41-40c1-b72e-2cdb2b210a2c","block_type":"box","text":"it is unable to invest significantly or at all in IPOs may be lower than during periods when it is able to do so. In","page_number":63,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"f5dd5219-5b05-412d-b37b-9939c46bfe9b","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":63,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"44f1ab19-8e6d-428f-920d-da9a9c2c3f5a","block_type":"box","text":"issued in IPOs are subject to many of the same risks as investing in companies with smaller market capitalizations.","page_number":63,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"c42b9e1d-f5e0-4538-84d4-d03c1312b1c4","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":63,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"986b0812-dbd7-4866-bcb8-f535b3d01037","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the","page_number":63,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"58f7a360-37e7-429f-839c-d1c2bc0cb5dd","block_type":"box","text":"initial public offering.","page_number":63,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"8466abc5-1d87-4107-a39c-fcc0939cdb59","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":63,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"1384a1e5-5ae3-4834-a8fa-8c38c7bebd7f","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":63,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"b855045e-64b9-401f-b119-bc9dda118569","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":63,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"58818737-a3a4-4d34-afd4-1e1229f6c71a","block_type":"box","text":"companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by","page_number":63,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"4e1364ab-94a5-4070-a8bf-7cbf9288a971","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":63,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"b62b1244-ab33-4b49-874f-1c5cf592e2c6","block_type":"box","text":"are often traded in the OTC markets and may have fewer market makers and wider price spreads. This may result in","page_number":63,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"37b7d329-9df2-4adc-97a3-84ceaaf6e419","block_type":"box","text":"greater price movements and less ability to sell a Fund’s investment than if the Fund held the securities of larger,","page_number":63,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"ab0ddb39-55f4-42e6-8e08-855fd2649c8d","block_type":"box","text":"more established companies.","page_number":63,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"08f016b1-75a8-4d4c-922c-3fcb8b497841","block_type":"box","text":"II-26","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"62f9a350-2de2-4062-ae7a-0d4eaf77bb94","block_type":"box","text":"NM1026U-5993100-63/236","page_number":63,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5eb616cc-22d2-4c31-a058-f627a01f2961","block_type":"box","text":"For a discussion of the types of equity securities in which your Fund may invest and the risks associated with","page_number":64,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"cf2d3e2c-dba7-4070-a243-dc8234f1d6ce","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Certain of the Funds may also invest in shares of","page_number":64,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"d0f81c4c-defe-4c44-834c-101e32b41c47","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":64,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"e5738474-49fc-4205-a5d0-a06113b03a68","block_type":"box","text":"below.","page_number":64,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"f93f210a-6638-4952-b75e-789e95759fd8","block_type":"box","text":"Real Estate-Related Securities.","page_number":64,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"3e7a6520-b9ab-4110-a3da-99997ae4a7bd","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may invest in","page_number":64,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"51610113-e27b-4904-b80c-e325afe8739f","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":64,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"e5cf2391-810f-4440-913c-b5690d47cfd2","block_type":"box","text":"certain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":64,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"3282225d-e377-4994-9bd1-6a5198b7b64b","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":64,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"b5ff7ff2-bf54-4912-9f72-391798b3b4fa","block_type":"box","text":"conditions; possible lack of availability of mortgage funds or other limitations on access to capital; overbuilding; risks","page_number":64,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"a9137fc3-7e47-4bb4-8c35-70f076d972e8","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of properties; increase in competition, property","page_number":64,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"f9a37031-8a96-41e0-a35e-40c93499f6e9","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":64,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"e913699c-fc3b-4d9a-88f1-968035a20b47","block_type":"box","text":"resulting from the clean-up of, and liability to third parties for damages resulting from, environmental problems;","page_number":64,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"08be7ebf-d737-4874-a700-11da0dc4186a","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":64,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"5c4176c2-49bc-4eaf-9a56-e30ca00c7a18","block_type":"box","text":"earthquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":64,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"3551aa70-2abb-4832-a7e2-54fdec87c485","block_type":"box","text":"rents; investment in developments that are not completed or that are subject to delays in completion; and changes in","page_number":64,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"1be27846-3af3-41ce-9b40-157d1afa2f66","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by property","page_number":64,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"f714b5ae-efb9-42e4-832d-a9f297f11afc","block_type":"box","text":"type or in certain other respects, the Fund may be subject to certain of the foregoing risks to a greater extent.","page_number":64,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"00d40329-7f45-4ef3-826d-7d7762c36a10","block_type":"box","text":"Investments by a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":64,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"08eeb3b0-4082-4bb8-a24a-e9630c5b36da","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":64,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"04af3758-be7a-45a3-801b-7156008eb3ff","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real property acquired as a result","page_number":64,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"4181e82e-e98e-4e78-97df-7d2a44151b51","block_type":"box","text":"of a default on securities the Fund owns, the receipt of such income may adversely affect the Fund’s ability to retain","page_number":64,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"b85606fc-34f4-4807-9bfe-f426e7c98136","block_type":"box","text":"its tax status as a regulated investment company because of certain income source requirements applicable to","page_number":64,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"0b204c3c-4267-4c2b-b9ea-17a00ef8d321","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":64,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"11266d63-d668-4d91-a0ca-17c3d5e9ed47","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":64,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"8f580adc-eff0-457b-a08c-22ef1bc6937f","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":64,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"2d94ddae-6bd9-4cff-8036-41ce7cbb49ee","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":64,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"0655c857-e439-4696-9b6b-7249d2e6b523","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":64,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"f9ff04f6-99ed-4bb0-978a-727d8e074603","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":64,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"ab99c146-fc64-4879-b964-415567ea255c","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":64,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"493e6488-c96c-4624-a99e-f103ab833b86","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":64,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"01e1b12d-900f-475c-98e4-a4389c1aec15","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":64,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"ff09f111-5bb8-427a-8582-e08a1dff05d7","block_type":"box","text":"Small cap and emerging growth securities will often be traded only in the OTC market or on a regional securities","page_number":64,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"2082c00d-cb38-46ea-8926-5b87e0e49cfa","block_type":"box","text":"exchange and may not be traded every day or in the volume typical of trading on a national securities exchange. As a","page_number":64,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"efce8717-7e32-49a7-a921-e830400debe4","block_type":"box","text":"result, the disposition by a Fund of portfolio securities to meet redemptions or otherwise may require the Fund to","page_number":64,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"0d35f88f-af36-4b05-84ce-746056a25e8c","block_type":"box","text":"make many small sales over a lengthy period of time, or to sell these securities at a discount from market prices or","page_number":64,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"9f8f4980-613d-44df-b0d9-7c6a1b0138e1","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":64,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"33aa0820-ad02-4088-b267-e18e14003859","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":64,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"ca4ca4f9-528f-470d-bf83-0fb61ac3bfac","block_type":"box","text":"investment results. Careful initial selection is particularly important in this area as many new enterprises have","page_number":64,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"d63aaa4f-737c-40d5-a1a9-855bde8da850","block_type":"box","text":"promise but lack certain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":64,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"51630d13-ae48-4b89-921a-c445ca554f70","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":64,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"839c09a6-bd48-4350-909b-9cec49f22a63","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into significant","page_number":64,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"7f98cc77-fbef-45dc-a96e-aec41527951a","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":64,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"0a183696-e52a-4fd5-bc79-1b3d5eece2c9","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":64,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"4ef3b3f9-d4d6-43ce-b293-8b1be43b1406","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":64,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"e923c61f-dda7-406e-861f-403cce30d19d","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying stages of their","page_number":64,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"673b01f4-4a60-442d-9f9b-2f465cd83cfa","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":64,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"06633ab3-6f44-4b1f-adfb-92ae143999d3","block_type":"box","text":"cycles.","page_number":64,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"8f5eee16-b7fc-4186-9110-286436961a6b","block_type":"box","text":"Tracking Stocks","page_number":64,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"2c135c10-5646-422e-b111-a91f9d960c97","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":64,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"d3179ad2-ddec-4372-adec-8fff473f5f47","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the performance of such","page_number":64,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"7f6097d8-e249-4188-b292-4d4d6f528661","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":64,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"fd9e098b-4ab8-49c6-a0c4-c44bd2a190c2","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":64,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"64b144d0-d761-4782-857e-e8f0f09267a5","block_type":"box","text":"holders of the tracking stock may not have the same rights as holders of the company’s common stock.","page_number":64,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"faaed3ee-e7c7-4625-939e-5036fdf8daef","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":64,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"dc0dd982-5a0a-46f7-adae-c993fe43b142","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes representing","page_number":64,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"aa49a026-765e-4e53-80a6-170cc296e32b","block_type":"box","text":"debt of the issuer, usually a financial institution. ETNs combine aspects of both bonds and ETFs. An ETN’s returns","page_number":64,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"751231d2-3e4a-4bbb-82c0-ccc218740eb4","block_type":"box","text":"II-27","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6662e863-966d-4ecf-8af0-9ea503a89650","block_type":"box","text":"NM1026U-5993100-64/236","page_number":64,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6396be86-b213-49f8-a955-0227494c0721","block_type":"box","text":"are based on the performance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":65,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"194c0c7e-69d7-416f-8447-07a51c90cb3d","block_type":"box","text":"expenses. Similar to ETFs, ETNs are listed on an exchange and traded in the secondary market. However, unlike an","page_number":65,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"b4c27c85-1f2e-4e9d-b912-a7dd405fd06a","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the performance","page_number":65,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"e4960143-983c-4bdc-9828-e1ca930771b8","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus certain fees. Unlike","page_number":65,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"236eea29-f678-4d90-bcd0-2901037916a4","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":65,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"6d178c43-8948-49a3-9337-4dae0f310d98","block_type":"box","text":"The value of an ETN may be influenced by, among other things, time to maturity, level of supply and demand for","page_number":65,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"1ec9b5e4-984c-481e-90cd-02fde75898af","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":65,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"7fac6c21-e46b-455e-ad6f-633bb3fa7ae5","block_type":"box","text":"performance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":65,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"b288543f-e26c-4b5a-8bbb-ca42fd841db0","block_type":"box","text":"geographic events that affect the reference instrument. ETNs are subject to credit risk and the value of the ETN may","page_number":65,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"61f31033-76de-4936-9b36-f1189c6742a5","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":65,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"2727313e-72e1-48fe-bc16-f63c656ea233","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its proportionate share of any fees and expenses borne by the","page_number":65,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"d614d319-5527-4b82-a689-3eea52428761","block_type":"box","text":"ETN.","page_number":65,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"aed3e847-f773-4f2f-844a-82313bab9b50","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference instrument.","page_number":65,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"2f5a829b-bcb4-472c-92d6-f9a7cfb15b9c","block_type":"box","text":"ETNs also incur certain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":65,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"5240d559-eb0e-433f-abb6-b02035a110bd","block_type":"box","text":"may, at times, be illiquid and may be difficult to purchase or sell at a fair price. Levered ETNs are subject to the same","page_number":65,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"a43b0c9b-1130-47d1-955b-3fcfc2a83b47","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":65,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"79294ead-1d78-47ba-9497-2a1719e990be","block_type":"box","text":"potential for loss is also greater. Finally, additional losses may be incurred if the investment loses value because, in","page_number":65,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"534a1a08-1290-478f-aab7-c53f4412fe44","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":65,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"29e517d8-bf88-487f-9773-39a91cfecd2c","block_type":"box","text":"Because the return on the ETN is dependent on the issuer’s ability or willingness to meet its obligations, the","page_number":65,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"cb63278f-75bc-4317-82b5-fa8d7c6e82d5","block_type":"box","text":"value of the ETN may change due to a change in the issuer’s credit rating, despite no change in the underlying","page_number":65,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"0f8b5a37-19dd-4582-863a-c35eeb08af7b","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":65,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"adb1f17e-c271-463d-afa7-9430df5c7978","block_type":"box","text":"difference in price may be due to the fact that the supply and demand in the market for ETN shares at any point in","page_number":65,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"677ec63f-1361-4b30-8c2d-3fcd1ef885cb","block_type":"box","text":"time is not always identical to the supply and demand in the market for the assets underlying the reference","page_number":65,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"50e4cc5f-9a4d-47f0-972e-506562b3f2b9","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":65,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"a5bb09e9-a589-44fc-9e1a-2d45a2fd9421","block_type":"box","text":"There may be restrictions on the Fund’s right to redeem its investment in an ETN, which are generally meant to","page_number":65,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"14339ca0-6a76-4501-a63d-0520df79cbe8","block_type":"box","text":"be held until maturity. The Fund’s decision to sell its ETN holdings may be limited by the availability of a secondary","page_number":65,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"7f6dd051-cb64-41fc-8e9a-ee098381a0ec","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":65,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"7d2851a5-ef29-4c0b-9221-de137514bcf1","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a court may not","page_number":65,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"bec73bee-cc79-4bd4-a7d8-7f985776b848","block_type":"box","text":"uphold, how the Funds characterize and treat ETNs for tax purposes. The timing and character of income and gains","page_number":65,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"fa954eb1-9124-4b15-b31f-5ea1868233d0","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":65,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"934800ea-d01c-46b3-83e9-6dcc3cad5fe1","block_type":"box","text":"Foreign Investments.","page_number":65,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"ab69114a-0361-4e9f-a9b5-540ed990afb6","block_type":"box","text":"Foreign Investment Risks.","page_number":65,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"cc817b0f-1688-444c-a5b4-4325e4a3b6b9","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from issuers","page_number":65,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"88007adf-4ab6-428e-9812-b8bd79afde76","block_type":"box","text":"located in emerging market countries. These securities may be denominated in U.S. dollars or in a foreign currency.","page_number":65,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"27326676-ed9d-4e61-8a89-bbdbb93a619e","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":65,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"7014b317-6496-40fa-beef-3d1f7f362768","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":65,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"4fdb9629-9fa9-4499-b21e-308f5dc3801f","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be foreign","page_number":65,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"b58212f6-5086-4e9e-bad9-066378b7815e","block_type":"box","text":"securities (but rather deemed to be U.S. securities) if (i) the company’s principal operations are conducted from the","page_number":65,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"f103ae2b-05d2-4a6c-b64a-c483494e32e2","block_type":"box","text":"U.S., (ii) the company’s equity securities trade principally on a U.S. stock exchange, (iii) the company does a","page_number":65,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"b3c67163-94e9-4fbd-8805-470295d7a712","block_type":"box","text":"substantial amount of business in the U.S. or (iv) the issuer of securities is included in the Fund’s primary U.S.","page_number":65,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"2b314237-4699-4d35-a029-b13478055e89","block_type":"box","text":"benchmark index.","page_number":65,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"1a80f777-c2cb-4060-a81e-4ee5886db41b","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":65,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"13193199-e4b1-436c-b00f-975fe69a3d0b","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":65,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"95cf8d40-1501-4123-a66d-47cf22d4882b","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":65,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"86fdcbee-8ce7-46ed-9132-40798965bd82","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":65,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"667a44d6-3532-4328-9c74-a77d908828dd","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":65,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"9772842b-044d-4e03-9e10-3b1dd122a70d","block_type":"box","text":"securities and commercial paper. Such securities may include loan participations and assignments, convertible","page_number":65,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"a11759c3-72d3-413f-9860-4a33925a3820","block_type":"box","text":"securities and zero-coupon securities.","page_number":65,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"87c11c6a-3b8d-4928-9298-bebb2aac8085","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":65,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"9f5db322-7a63-4279-9b3a-918ec3ba850a","block_type":"box","text":"taxes.","page_number":65,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"d5d7a233-9211-4a6f-a74b-0349d0fe3481","block_type":"box","text":"To the extent that the underlying securities or other instruments held by a Fund trade on foreign exchanges or in","page_number":65,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"8e525c08-af3f-4fb2-84ce-b348a6dd6acb","block_type":"box","text":"foreign markets that are closed when the securities exchange on which the Fund’s shares trade is open, there are","page_number":65,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"d3d30b67-c952-43bb-87a5-8e340bfec390","block_type":"box","text":"likely to be deviations between the current price of such an underlying security and the last quoted price for the","page_number":65,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"1d927ee2-e9eb-45f0-b41f-4c966e94de38","block_type":"box","text":"II-28","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a514888a-7ee3-47c1-8827-4d966182abf2","block_type":"box","text":"NM1026U-5993100-65/236","page_number":65,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"06a0349d-e54f-452b-887a-a2fc425a7f09","block_type":"box","text":"underlying security (","page_number":66,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"dff45592-cec7-404e-a476-afc60afa0d39","block_type":"box","text":"i.e.","page_number":66,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"f590631e-4641-47fc-ac0b-439d696ab44e","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":66,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"b1856f12-773a-4c7f-b59c-417cef638a84","block_type":"box","text":"Fund is likely to be greater where a large portion of the Fund’s underlying securities or other instruments trade on","page_number":66,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"19ce0edb-4b76-4dca-960d-2e85a75726c7","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":66,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"cfce4d3e-2961-4a38-86cb-cf469b63d816","block_type":"box","text":"result in premiums or discounts to certain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":66,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"437fd771-c161-4d6d-a4e2-819199c76d0f","block_type":"box","text":"Foreign Market Risk.","page_number":66,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"cd366564-210f-4df5-856e-976d255b5e2a","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":66,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"db265061-b041-4207-a4f3-c3f016bc81f6","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":66,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"964f15c8-e6bc-4f69-a03c-eb57dd18286a","block_type":"box","text":"always) performed differently from securities traded in the United States. However, such investments often involve","page_number":66,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"ab01b0f2-bef5-4891-b081-a1c8c46f8e9c","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In particular, a Fund","page_number":66,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"602f5eba-e691-495c-8dc8-75b582111ffc","block_type":"box","text":"is subject to the risk that, because there are generally fewer investors on foreign exchanges and a smaller number of","page_number":66,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"675d3de6-7bcc-437d-a472-1a0f34270a5b","block_type":"box","text":"shares traded each day, it may be difficult for the Fund to buy and sell securities on those exchanges. In addition,","page_number":66,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"4fb48c7b-f889-43c0-b31c-97a6e97a6aa9","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":66,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"1efa301f-96e1-47e4-8ad6-5a332761224b","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":66,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"8e7fb388-3fbe-4f5c-a537-8129136bf2c5","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":66,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"38c9df5e-0020-40b8-8d50-080eeab15b27","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of certain countries, or the","page_number":66,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"969f4edc-646d-4589-9a51-21d5260e3478","block_type":"box","text":"U.S. Government with respect to certain countries, prohibiting or imposing substantial restrictions through capital","page_number":66,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"5679a6f1-bfe1-4221-9967-1c5a4dcef13c","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or certain industries in those countries. Capital","page_number":66,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"9bfcbb46-77d7-4c2b-8715-ae885e397e11","block_type":"box","text":"controls and/or sanctions may include the prohibition of, or restrictions on, the ability to own or transfer currency,","page_number":66,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"4207120f-b00e-4e1e-8023-a01e779ca91f","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":66,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"426e402b-dd1c-40a0-b20e-08d282906f06","block_type":"box","text":"government, such as seizure of assets. Any of these actions could severely impair a Fund’s ability to purchase, sell,","page_number":66,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"3964f2dc-f80b-4f68-bd0d-a87e329dd626","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":66,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"ed3b112c-4987-4bbb-96b6-c8968d05e6a8","block_type":"box","text":"transfer the Fund’s assets or income back into the United States, and could negatively impact the value and/or","page_number":66,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"a9468feb-ffc6-46ef-803f-1382497956db","block_type":"box","text":"liquidity of such assets or otherwise adversely affect a Fund’s operations, causing the Fund to decline in value. Other","page_number":66,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"4fe360dc-93fc-4f87-b983-740998366173","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":66,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"bd0aa26a-a878-48f4-87f8-c8b326e27a43","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign courts, and political and social","page_number":66,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"507adf0f-3fed-49b0-b35f-68d517914a29","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":66,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"8aab36ac-93d2-424f-b613-4c2ef8ae04ae","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in certain","page_number":66,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"3d4c6da9-570b-40c0-9046-943c46396ddb","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":66,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"f0ad4c40-8a5c-4c09-be18-1b3d90632631","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":66,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"e8292879-6a88-4ae5-9cf4-e54a00dcbae9","block_type":"box","text":"or abroad could result in appreciation or depreciation of portfolio securities and could favorably or adversely affect a","page_number":66,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"f9862cd7-cc5d-4c5a-bfbb-36aefeba9311","block_type":"box","text":"Fund’s operations.","page_number":66,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"fadb3d1e-8d66-4719-a8cb-c6a7d3296b53","block_type":"box","text":"Foreign Economy Risk.","page_number":66,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"9c58ea16-293c-4d69-821e-5d06a0ceda48","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with that of the","page_number":66,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"baa97ba1-0752-4e15-ab00-9c9e9b78b8cb","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":66,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"df371831-d9fa-4fdf-bd85-875d6b29988b","block_type":"box","text":"and balance of payments position. Certain such economies may rely heavily on particular industries or foreign capital","page_number":66,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"5d3b1607-622d-4fa7-8e43-b1b8d536b2e4","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular","page_number":66,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"9f42267b-f29d-4169-b466-6df049840dfa","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":66,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"14fa2658-3765-47b7-8a90-68ce53847c21","block_type":"box","text":"measures.","page_number":66,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"85eec408-5ff6-411e-a8b2-a25e28899389","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":66,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"2c0e7925-d9c3-4c45-8c9b-bc14317e1ad2","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":66,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"6e3e15a7-6986-49ff-8092-0a48df40af58","block_type":"box","text":"interest in foreign currencies, the value of a Fund that invests in foreign securities as measured in U.S. dollars will be","page_number":66,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"3fb81c2b-a925-4ce5-b283-9353d75b5240","block_type":"box","text":"affected favorably or unfavorably by changes in exchange rates. Generally, when the U.S. dollar rises in value against","page_number":66,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"21ef7ef6-c85e-421f-8d9c-f3d5bd157fe4","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is worth fewer U.S.","page_number":66,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"6c2b6e89-f98c-48ab-8d2f-d1fec6401b84","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":66,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"9543d367-c33b-4871-a8b8-d799aec5a603","block_type":"box","text":"that currency gains value because the currency is worth more U.S. dollars. This risk, generally known as “currency","page_number":66,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"5554f453-fa21-49d4-b5c6-948ebf8d164e","block_type":"box","text":"risk,” means that a stronger U.S. dollar will reduce returns for U.S. investors while a weak U.S. dollar will increase","page_number":66,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"85b1d85e-45d7-4f28-be64-5420ef190fb8","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":66,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"0145a49e-6e91-437b-8094-3b2d8beef3cc","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":66,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"7a472826-634f-4d83-9332-7c73e2d589ac","block_type":"box","text":"United States or abroad.","page_number":66,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"012e260b-bdb9-4ee8-ad45-f0a1ba588860","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":66,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"d54be634-00e2-4d50-bd9d-413a59109369","block_type":"box","text":"Many foreign governments supervise and","page_number":66,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"2fbe6170-c509-479d-af17-eac33f008a67","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":66,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"6428ead2-f815-47e6-8c27-14ef278e5253","block_type":"box","text":"not have laws to protect investors comparable to the U.S. securities laws. For example, some foreign countries may","page_number":66,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"f70972ef-2f80-4382-b32a-453667e0b06d","block_type":"box","text":"have no laws or rules against insider trading. Insider trading occurs when a person buys or sells a company’s","page_number":66,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"806d8db7-c713-46a9-b522-d1bf4c21f92a","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":66,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"13c348cf-844e-461c-8797-459cc17bf8d3","block_type":"box","text":"necessarily the same as in the United States. If the accounting standards in another country do not require as much","page_number":66,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"66b10209-11ce-4dcc-bf5d-f848cf4915c4","block_type":"box","text":"detail as U.S. accounting standards, it may be harder for Fund management to completely and accurately determine a","page_number":66,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"d3ca5390-7066-4068-92c8-e83089b9cb1b","block_type":"box","text":"company’s financial condition. In addition, the U.S. Government has from time to time in the past imposed","page_number":66,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"828d4afb-78d2-4672-ac2e-b1430eeaa927","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":66,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"bdecfade-c240-4f73-a5bd-a31bcf676029","block_type":"box","text":"restrictions should be reinstituted, it might become necessary for the Fund to invest all or substantially all of its","page_number":66,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"9b42cbbf-58b6-4fc3-b825-c746b6a4f46f","block_type":"box","text":"II-29","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"41361bea-1bf8-4c32-99b1-c402848b5f21","block_type":"box","text":"NM1026U-5993100-66/236","page_number":66,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c36a96da-60f6-49db-8ba2-80e23e866b17","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":67,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"bd6d6b5f-adbb-4907-9ef9-1886da2ffbe0","block_type":"box","text":"higher in foreign countries than they are in the United States. This reduces the amount the Fund can earn on its","page_number":67,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"8865a8d1-a5e4-488b-896d-7494257037e2","block_type":"box","text":"investments.","page_number":67,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"e135683b-f6b8-4cc9-9059-8ee54780edd9","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":67,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"e87dfb23-2e4a-424b-83a0-5b52b080d17e","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":67,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"25dbe95e-48c0-4847-8069-98d68b962d7a","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":67,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"e015aa55-9d97-440b-bd0b-f8da74f0fe06","block_type":"box","text":"organized or new to the foreign custody business. In addition, there may be limited or no regulatory oversight over","page_number":67,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"a946f677-04b6-4f81-a353-df2b02c0fcb5","block_type":"box","text":"their operations. Also, the laws of certain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":67,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"4c42c3e9-efbe-4ac5-bc8d-009bd9e8b445","block_type":"box","text":"bank or depository or issuer of a security or any of their agents goes bankrupt. In addition, it is often more expensive","page_number":67,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"c0d2431b-e6b9-436a-a82a-c0511b427977","block_type":"box","text":"for a Fund to buy, sell and hold securities in certain foreign markets than in the United States. The increased","page_number":67,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"22e884a4-99a8-437d-9034-f9b3d40056d7","block_type":"box","text":"expense of investing in foreign markets reduces the amount a Fund can earn on its investments and typically results","page_number":67,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"7a46f416-f75c-48fb-aa03-40fba9904e18","block_type":"box","text":"in a higher operating expense ratio for the Fund as compared to investment companies that invest only in the United","page_number":67,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"7c0a7778-40d3-46d8-8919-b46e679e0d35","block_type":"box","text":"States.","page_number":67,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"2348e8b4-efa6-4d4c-a368-844d32514f00","block_type":"box","text":"Publicly Available Information.","page_number":67,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"3ef25e75-c4e2-48b9-a39e-e2ce4cab921d","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":67,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"d6416395-f1bb-481a-8dec-b86319572c88","block_type":"box","text":"than is available with respect to U.S. companies. Most foreign companies are also not subject to the uniform","page_number":67,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"4dfaea45-ea2d-4f01-9220-0e21c4fa73b7","block_type":"box","text":"accounting and financial reporting requirements applicable to issuers in the United States. While the volume of","page_number":67,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"5dfe825e-fa18-40fb-b523-7af0425bcf5d","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":67,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"a6495d07-a992-4436-a2dc-6372d6c23935","block_type":"box","text":"the New York Stock Exchange. Accordingly, a Fund’s foreign investments may be less liquid than, and their prices may","page_number":67,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"ffea90ce-c470-408b-b5df-f94eef3d2c9e","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":67,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"7c33187b-4323-40ec-a4a5-fe6a99d42652","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":67,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"689e4f6e-46a7-40c5-a249-f56b0403c407","block_type":"box","text":"United States.","page_number":67,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"a8c21fed-2bbe-4eb0-a701-dc68cfb04ef2","block_type":"box","text":"Settlement Risk.","page_number":67,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"601c4a22-e10a-48ff-a07b-1a7442f5ad9c","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly from those","page_number":67,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"d77d6005-1ac8-454d-9d87-6a43d5ab23ab","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":67,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"c7c22bab-4d3b-4302-b8ab-8ee1eb167415","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve certain risks (such as","page_number":67,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"a565ae0f-cfa3-426f-aef7-6bd506b4f8a6","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":67,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"b1df4150-ec9f-4309-b85e-5201a9505d56","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":67,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"cc960287-f34b-4619-aadf-4d7a9f7c2d36","block_type":"box","text":"risk of delayed settlements or losses of security certificates in markets that still rely on physical settlement.","page_number":67,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"8aae31ee-8501-4353-9f0f-df44263324ae","block_type":"box","text":"Settlements in certain foreign countries at times have not kept pace with the number of securities transactions;","page_number":67,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"468780e0-52b8-4ca4-9b58-fc4f98707549","block_type":"box","text":"these problems may make it difficult for a Fund to carry out transactions. If a Fund cannot settle or is delayed in","page_number":67,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"c0129ab6-473f-4176-bd92-bac3ff8afcbc","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment opportunities and certain of its assets may be","page_number":67,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"16103945-adad-449b-838b-23ba0e657773","block_type":"box","text":"uninvested with no return earned thereon for some period. If a Fund cannot settle or is delayed in settling a sale of","page_number":67,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"378ab6f2-186a-40fc-a701-e1b310885312","block_type":"box","text":"securities, it may lose money if the value of the security then declines or, if it has contracted to sell the security to","page_number":67,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"f4088781-b345-428e-8c0f-fbd4720292bb","block_type":"box","text":"another party, the Fund could be liable to that party for any losses incurred.","page_number":67,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"d9e3f564-699a-408f-88cd-1a7784fc048d","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing claims may","page_number":67,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"662f80d0-e311-4e05-ba28-47518cdb43e8","block_type":"box","text":"arise in respect of securities held by or to be transferred to a Fund. Compensation schemes may not exist or may","page_number":67,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"c6db9393-1ded-4d90-a0ae-4bba70586806","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":67,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"1d1aef27-fc4f-4bd2-b397-c25da817c35b","block_type":"box","text":"Sovereign Debt.","page_number":67,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"9a8ba508-60a8-4786-8365-9fc3b6cc7c38","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":67,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"0917ead0-1fde-4093-851d-6ba2ba2e0e9d","block_type":"box","text":"controls the repayment of sovereign debt may not be able or willing to repay the principal and/or interest when due in","page_number":67,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"479761e3-84ad-4cec-aed1-57bbab0ec5bf","block_type":"box","text":"accordance with the terms of such debt. A governmental entity’s willingness or ability to repay principal and interest","page_number":67,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"35673df1-b997-4b24-a116-d2e8815c108e","block_type":"box","text":"due in a timely manner may be affected by, among other factors, its cash flow situation, the extent of its foreign","page_number":67,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"de844230-f660-4171-941b-afd98d8955fc","block_type":"box","text":"reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt","page_number":67,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"282dcc82-5ef2-441e-86ce-a6d0c0afb65d","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":67,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"909bc93a-27d1-409e-bece-405f7f804d56","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":67,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"20f549d9-11f2-4977-8e5e-b6ef1cd1e79b","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":67,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"675b8c61-69e5-48e2-88a2-8344b5152b52","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and","page_number":67,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"4a196881-d5d3-42b8-99b1-7d750cf9e6b3","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":67,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"4184d4a0-4a05-4a08-aeb9-eb6b9e0b50cb","block_type":"box","text":"economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":67,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"254ccace-5246-4cfd-89df-96c089d4e918","block_type":"box","text":"achieve such levels of economic performance or repay principal or interest when due may result in the cancellation of","page_number":67,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"0dbf5fe6-603c-4e2d-a668-7a2b2e968899","block_type":"box","text":"such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s","page_number":67,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"16cd8312-0730-4846-afc5-03455fd68f9b","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":67,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"6f0e7eab-d9f3-479a-9eac-39cf5d3e78a9","block_type":"box","text":"debt.","page_number":67,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"8ca48d78-1b6e-4e32-9c57-ef3e308535ca","block_type":"box","text":"Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to extend further","page_number":67,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"e69042e6-a9cf-4d86-8141-0a10c3842013","block_type":"box","text":"loans to governmental entities. In the event of a default by a governmental entity, there may be few or no effective","page_number":67,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"6a09bd81-d277-4625-b96a-4b8679b41114","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":67,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"33aabb48-d138-4a42-bb6b-16402d81d346","block_type":"box","text":"II-30","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"41e3052b-2d68-444f-9146-93c2accfef3d","block_type":"box","text":"NM1026U-5993100-67/236","page_number":67,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f74383a9-b990-421e-b19f-5517ba284586","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":68,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"08a52f62-2cba-454b-8914-44bba12c61e4","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":68,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"a281bc24-14d1-4cea-ba15-8f6e8a91f25f","block_type":"box","text":"interest income (if any) received from issuers in certain countries and capital gains on the disposition of stocks or","page_number":68,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"bedce0c4-bab6-47e6-8d53-a484f7b2e63c","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":68,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"01dd15ff-009d-4693-b74e-741375cef64e","block_type":"box","text":"refund is within the control of the tax authorities in such countries. Where a Fund expects to recover withholding","page_number":68,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"57a57f61-44ed-4591-a2c3-2892191dfb95","block_type":"box","text":"taxes, the net asset value of the Fund generally includes accruals for such tax refunds. Each Fund regularly evaluates","page_number":68,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"fc391075-07ae-418b-bd1d-dee5e16e3709","block_type":"box","text":"the probability of recovery. If the likelihood of recovery materially decreases, due to, for example, a change in tax","page_number":68,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"30c8813c-3cc2-4286-b68e-0ff0de10ffc1","block_type":"box","text":"regulation or approach in the foreign country, accruals in a Fund’s net asset value for such refunds may be written","page_number":68,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"9aad4e6a-dbf9-4eae-ac97-f5f6aad2380a","block_type":"box","text":"down partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":68,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"a3c97f66-1e53-42a6-8829-854f62434348","block_type":"box","text":"accrual is written down will bear the impact of the resulting reduction in net asset value regardless of whether they","page_number":68,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"f19f7e6e-8a3c-4107-ac25-82959afd1e0f","block_type":"box","text":"were shareholders during the accrual period. Conversely, if a Fund receives a tax refund that has not been previously","page_number":68,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"f68c20b0-cd23-4b23-9c9a-dcaac3c493de","block_type":"box","text":"accrued, shareholders in the Fund at the time of the successful recovery will benefit from the resulting increase in","page_number":68,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"24755f76-2272-42f9-8347-521ce46b2c5b","block_type":"box","text":"the Fund’s net asset value. Shareholders who sold their shares prior to such time will not benefit from such increase","page_number":68,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"ce2c7a95-8da6-4355-bf25-261cde3df12f","block_type":"box","text":"in the Fund’s net asset value.","page_number":68,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"654ec467-0bf1-4b0c-9c52-04bb9683cacb","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":68,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"b873f0d2-06b5-4e7e-bfa7-1d59ff862053","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":68,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"316ee419-0776-4cf5-a07e-c330842e0179","block_type":"box","text":"trading partner of, or foreign investor in, certain countries in which a Fund may invest. As a result, economic","page_number":68,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"f3bf1f91-c3ad-4e77-8cb9-fae93eb10b69","block_type":"box","text":"conditions of such countries may be particularly affected by changes in the U.S. economy. A decrease in U.S. imports","page_number":68,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"c833c260-51c4-4a12-8110-2c46b1d09845","block_type":"box","text":"or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":68,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"1951cda4-ba91-4283-ab6c-6d553425bfb4","block_type":"box","text":"slowdown in the United States may have a material adverse effect on a country’s economic conditions and, as a","page_number":68,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"de927a28-5410-43ac-b8bb-10dcd1c37028","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":68,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"432eb66d-988a-4521-88a6-09aa32258acc","block_type":"box","text":"of interest or principal on U.S. Government debt, such as reaching the legislative “debt ceiling.” Such non-payment","page_number":68,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"b4ec7b6b-db84-4983-b150-fb6516cb6017","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":68,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"429c1d6d-b0cf-47ba-b283-78d57232ae90","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":68,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"1e29a748-2419-4b44-a338-019fab2efb1c","block_type":"box","text":"allies, such as certain European countries, and historical adversaries, such as North Korea, Iran, China and Russia.","page_number":68,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"6893b443-52d9-4a21-b778-4069decbee4e","block_type":"box","text":"If these relations were to worsen, it could adversely affect U.S. issuers as well as non-U.S. issuers that rely on the","page_number":68,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"053c6a4b-ef59-4a88-ac1b-3dc39473882c","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":68,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"471f0828-7c7c-48b2-90e7-7200222685ea","block_type":"box","text":"trends were to continue, it may have an adverse impact on the U.S. economy and many of the issuers in which a","page_number":68,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"748c5cc2-932e-43bf-bf0b-014d4b9a9bed","block_type":"box","text":"Fund may invest.","page_number":68,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"b3270e63-b77b-457c-a0da-ebaf6233a99f","block_type":"box","text":"Funding Agreements.","page_number":68,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"172973de-3688-4a30-94ff-f7f5c8353c73","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":68,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"f365cc11-9478-4909-9902-eb810c674bfd","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":68,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"68397cf6-ca8d-4b15-b5a5-1b3599d66228","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":68,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"9dd2c307-a6e4-4d56-a551-ca4bd2571711","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":68,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"4c1098d8-af15-4ff2-b87d-6924daa6aa4b","block_type":"box","text":"not be less than a certain minimum rate. The purchase price paid for a funding agreement becomes part of the","page_number":68,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"dc7754c2-6e55-429a-bbd1-922a38cce56c","block_type":"box","text":"general assets of the insurance company, and the contract is paid from the general assets of the insurance company.","page_number":68,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"9617bd87-b18b-4a27-b7e1-c807860e8163","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":68,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"1187ae53-2d87-4fb1-a000-511d87630bd1","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":68,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"19729008-6225-4427-9c94-c554dd966fbe","block_type":"box","text":"Guarantees.","page_number":68,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"7b721201-c356-442c-a23e-b802f764d8d9","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":68,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"d9348e7e-1bc0-4864-bae9-e684e61eb7c3","block_type":"box","text":"issuer of the security. 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An illiquid investment is any","page_number":68,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"5eb6454c-6516-4f87-a59b-a795ecb1a50a","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":68,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"f584b1c5-b2f2-45a1-ac20-c1adcac7421d","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":68,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"b3ba22f0-5d7b-4dd6-9cc6-02b7a0ea0a04","block_type":"box","text":"investments may become illiquid after purchase by a Fund, particularly during periods of market turmoil. 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If illiquid","page_number":68,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"cb2419b7-6a2d-4722-afac-59d2b9d05187","block_type":"box","text":"investments exceed 15% of a Fund’s net assets, the Liquidity Rule (as defined below) and the Liquidity Program (as","page_number":68,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"7766f6f1-ecdc-45ca-a59d-47d5257b96ed","block_type":"box","text":"defined below) will require that certain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":68,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"0c779e0e-1f5d-4bba-89b0-7d77a91620e0","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":69,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"9cca557c-d8eb-4456-aefe-ce5cffdb7c3d","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. 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Finally, since each Fund seeks to","page_number":69,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"85b46586-84dc-49f1-b691-592b60706684","block_type":"box","text":"replicate the total return of its target index, the Manager generally will not attempt to judge the merits of any","page_number":69,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"517312a7-68b5-4fee-8702-cd5e5b5dea16","block_type":"box","text":"particular security as an investment.","page_number":69,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"d66989e8-7bbd-4877-a833-005fba59f3d1","block_type":"box","text":"Tracking Error Risk","page_number":69,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"c02efb07-cd1d-45a8-8a12-d172694b6c46","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s performance","page_number":69,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"576a639d-0459-4120-b870-b4168d271427","block_type":"box","text":"from that of the Underlying Index. 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If the securities continue to be included in the index, the Manager may underweight or","page_number":69,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"acf586d2-5588-47c9-a160-397ec229b93c","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":69,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"adc8d535-0dfd-4591-8fdf-1777cc8b9095","block_type":"box","text":"error due to the divergence in the securities included in its portfolio from its underlying index. 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S&P is not responsible for and has not","page_number":69,"box":{"x":70,"y":778,"width":803,"height":11}},{"id":"594c698d-e3de-4c66-a3a1-fe0c0dc24a2b","block_type":"box","text":"participated in the determination of the prices and amount of any Fund or the timing of the issuance or sale of","page_number":69,"box":{"x":70,"y":793,"width":787,"height":11}},{"id":"1e17ea35-4dd0-46f6-adc2-e56695d7b57b","block_type":"box","text":"shares of a Fund or in the determination or calculation of the equation by which a Fund is to be converted into cash.","page_number":69,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"99bde24c-40c3-412e-a085-f852ab061ee0","block_type":"box","text":"S&P has no obligation or liability in connection with the administration, marketing or trading of any Fund.","page_number":69,"box":{"x":69,"y":823,"width":742,"height":12}},{"id":"1f6c13de-c0d4-4c4c-aae3-2f3e1ed422df","block_type":"box","text":"S&P does not guarantee the accuracy and/or the completeness of the S&P 500 Index or any data included","page_number":69,"box":{"x":102,"y":846,"width":761,"height":11}},{"id":"ade0c4a0-961f-40fb-b53a-9bdf7cb69e75","block_type":"box","text":"therein, and S&P shall have no liability for any errors, omissions, or interruptions therein. 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Such securities have the effect of providing a degree of investment leverage, since they may","page_number":71,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"751aa3d4-1a26-444f-977a-e9350fff9b46","block_type":"box","text":"increase or decrease in value in response to changes, as an illustration, in market interest rates at a rate that is a","page_number":71,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"5085fcaf-4e1f-40fa-8d3d-93c69b5a56d6","block_type":"box","text":"multiple of the rate at which fixed-rate securities increase or decrease in response to such changes. As a result, the","page_number":71,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"4affd6f5-8c3a-4a32-8b4b-7aa4a06907fd","block_type":"box","text":"market values of such securities will generally be more volatile than the market values of fixed-rate securities. To","page_number":71,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"e01fe163-7820-4568-ad9d-edfeb0e61075","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shorter-term","page_number":71,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"93373c7e-8597-45f0-a9a1-fd7a793bafee","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Certain investments in such","page_number":71,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"d7ad9735-0c59-44cd-adf8-cd455eeb86ce","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":71,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"bb596d86-84eb-4fce-b4eb-c527fb792597","block_type":"box","text":"portfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":71,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"ddbb5fc5-0e30-4ead-8a8c-4dde1a68da3f","block_type":"box","text":"portfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":71,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"9ac2b65d-513f-46ae-a02f-f1f00be87381","block_type":"box","text":"Fund may invest in indexed and inverse securities for hedging purposes or to seek to increase returns. When used for","page_number":71,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"e6a7f183-c37e-42cc-8ff7-17361de57ea4","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Furthermore, where such a security","page_number":71,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"ee5d3989-a70e-4bc7-937f-dd14ecbcf5ff","block_type":"box","text":"includes a contingent liability, in the event of an adverse movement in the underlying index or interest rate, a Fund","page_number":71,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"cb671187-7581-43c8-8915-0aef40a3e837","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":71,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"b54293eb-09b5-4eec-9bec-97f584c3ee7b","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":71,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"a896b5fc-268c-4fbc-9561-17bf9d5b30ff","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":71,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"30151e9a-e04f-4d44-a897-2a63b467deff","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when short-term interest rates increase and increase","page_number":71,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"390317f3-22a5-4413-aa3c-e6897b7090af","block_type":"box","text":"when short-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":71,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"925ebe8c-44ec-4774-bf48-14075f33d2dc","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":71,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"7b77ce8a-54d2-435f-bfe7-2944784b4871","block_type":"box","text":"Inflation Risk.","page_number":71,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"62e3a79d-d056-40dc-b9cf-784a83c5ab2f","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":71,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"36281748-61dd-472f-873c-8ab20802d7bc","block_type":"box","text":"value of assets or income from investments will be less in the future as inflation decreases the value of money. As","page_number":71,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"8660cdb8-89e5-45b1-9d9d-67dd8eb8b2e3","block_type":"box","text":"inflation increases, the present value of a Fund’s assets can decline as can the value of a Fund’s distributions.","page_number":71,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"84cd75f3-7e03-4702-84f7-eace26a4b937","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":71,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"fa38f3d8-5987-464c-8254-5561cd9c7104","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":71,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"b8fb63f7-e2fd-4edb-97aa-5995864e0f49","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":71,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"2a909ac2-5f98-4df8-8d43-0495406a415f","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":71,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"8a1d80dc-1682-45fb-ab40-43cd5298001c","block_type":"box","text":"the secondary market are affected by the performance of the stock market overall. If IPOs are brought to the market,","page_number":71,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"a0b74198-152b-4270-bb10-cf907879191d","block_type":"box","text":"availability may be limited and a Fund may not be able to buy any shares at the offering price, or if it is able to buy","page_number":71,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"f42f67ca-6c1f-476d-9079-3a2640dc48ff","block_type":"box","text":"shares, it may not be able to buy as many shares at the offering price as it would like. In addition, the prices of","page_number":71,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"c912b5c8-2acc-4d64-be0c-672d75c9314a","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":71,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"d3719e8f-8f3b-47b2-89d4-7296266cc812","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a short","page_number":71,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"0a054bb3-7b2f-4bb1-9ca0-f7e874f2dc76","block_type":"box","text":"period of time given possible price volatility. This may result in increased portfolio turnover and expenses, such as","page_number":71,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"c3b41999-4f1c-421c-903e-864751328d88","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":71,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"07dbfd7b-0cea-4ffc-a8d2-7f8ca1816435","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":71,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"80680019-0ee6-45fe-af69-3e67e8626f0d","block_type":"box","text":"II-34","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2d174593-7aa4-4dfc-a1bc-6ba29975e985","block_type":"box","text":"NM1026U-5993100-71/236","page_number":71,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"835eedef-1d18-4b77-a934-e124887a92d7","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future performance. The investment performance of a","page_number":72,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"0ff96e3f-e760-4d51-b3a5-ffcc6385bc09","block_type":"box","text":"Fund during periods when it is unable to invest significantly or at all in IPOs may be lower than during periods when it","page_number":72,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"d5f3b7f2-d6f0-496e-b4e6-132f4f34f2aa","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its performance will generally","page_number":72,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"6079e171-1a0a-4897-b70d-96b96875964c","block_type":"box","text":"decrease. Securities issued in IPOs are subject to many of the same risks as investing in companies with smaller","page_number":72,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"b90f078c-2e71-46fa-9488-55b980693876","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":72,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"47fc4fbd-5ccf-4cae-b2b5-cbd152d3060d","block_type":"box","text":"be available for very limited periods.","page_number":72,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"9095437a-1b2d-429b-bc3a-c1af020bcd3d","block_type":"box","text":"Investment in Emerging Markets.","page_number":72,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"fc39b5e1-c824-4ba7-8b30-df63a9f49853","block_type":"box","text":"General.","page_number":72,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"4d5c33d3-3aac-4fb9-a0fa-5cb93ba3a69f","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":72,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"955de899-e1fb-4d99-9452-a24c32d47e53","block_type":"box","text":"markets. Unless otherwise provided in a Fund’s Prospectus, a country with an emerging capital market is any country","page_number":72,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"7b8ea73b-d4c9-49b2-a9e1-bc0b0194a618","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":72,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"d9cec454-dae1-4ec0-b62b-21cb35cdbc6c","block_type":"box","text":"the International Finance Corporation, or determined by the World Bank to have a low, middle or middle upper income","page_number":72,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"6323fd78-2541-4208-a64c-9a886ba4c3cf","block_type":"box","text":"economy; (ii) classified by the United Nations or its authorities to be developing; and/or (iii) included in a broad-based","page_number":72,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"4e7c5e9c-e635-44c5-ae4d-28a23fdda10a","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":72,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"193fb7ac-55f3-4f5c-8465-667f1ad1523e","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":72,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"58298a00-d31b-467f-93e2-110079a44c7f","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain","page_number":72,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"1843e142-a75e-45e2-a6cf-456ef5b996d8","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":72,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"9189d435-f5c1-43a3-b3a0-37a27b07e273","block_type":"box","text":"such as (i) low or non-existent trading volume, resulting in market illiquidity and increased volatility in prices for such","page_number":72,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"72578ddf-3e0d-4440-a0c5-e08d9d3d67ac","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncertain","page_number":72,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"2b26ccdc-5c6f-40c6-ab92-cfd9635ec026","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":72,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"3d31a338-0586-494e-8359-96da7391044d","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":72,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"0083d520-daec-4a6e-a99b-1bd76eb36be8","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":72,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"60c798ab-d639-43f6-a944-ee3e3334e3c6","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":72,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"a32fb3eb-1848-4241-9486-b0c242a774f9","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers or industries","page_number":72,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"74c2643c-6af4-429e-813c-bbee42df7e6a","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":72,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"20658e76-054d-42f3-98a5-99859a5f8726","block_type":"box","text":"private and foreign investments and private property. In addition to withholding taxes on investment income, some","page_number":72,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"11e91ede-2b76-4fcc-8bbe-36428efa76df","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":72,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"9fcf3e43-0652-4299-8a50-54752ee5debd","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":72,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"8104a938-b8a9-4433-90f1-e74375ea0f98","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":72,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"eca55198-5071-431d-b0e1-6b1f4ad57e03","block_type":"box","text":"developed countries. In such a dynamic environment, there can be no assurance that any or all of these capital","page_number":72,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"1eec0054-17c1-4a86-8ec7-fa23c2671d44","block_type":"box","text":"markets will continue to present viable investment opportunities for a Fund. In the past, governments of such nations","page_number":72,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"758f0a0d-0c8d-4f25-bc66-0a196822131a","block_type":"box","text":"have expropriated substantial amounts of private property, and most claims of the property owners have never been","page_number":72,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"22dd5420-975e-4a53-81ff-aaa44ae519df","block_type":"box","text":"fully settled. There is no assurance that such expropriations will not reoccur. In such an event, it is possible that a","page_number":72,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"6abd6181-c156-4b4a-8714-e7995c6bf45b","block_type":"box","text":"Fund could lose the entire value of its investments in the affected market. As a result the risks described above,","page_number":72,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"75825e02-aeda-48c4-917a-e95dff0bde04","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":72,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"c2789eed-219a-4ffa-9d33-8e4fbc64890e","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":72,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"4af111c2-bb07-4c89-99c7-a68bd975681f","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in certain of these countries and","page_number":72,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"c766382f-ed25-4352-aa4b-b4ecd7767930","block_type":"box","text":"the limited volume of trading in securities in these countries may make investments in the countries illiquid and more","page_number":72,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"b45f4cf8-7f55-4f6c-8ecd-9ce1c2740b2c","block_type":"box","text":"volatile than investments in more established markets.","page_number":72,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"c65cff7b-819c-4b25-a71d-70950185aa12","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":72,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"0c7fd7ef-809a-4c17-84c8-4eeae3b92c23","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":72,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"ee4f201b-bced-481d-82ee-e43cc3f4698b","block_type":"box","text":"financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain","page_number":72,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"080e4f05-01b5-4d72-8cd2-15e32c4ec446","block_type":"box","text":"countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment","page_number":72,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"05779289-6e5a-4df4-84b1-d3e993b5c271","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":72,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"d0b33fc1-efd9-44cc-9fb4-60730c22740e","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":72,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"4646b24e-8290-4fca-bef1-59d9aa420e6d","block_type":"box","text":"shares may be held by a limited number of persons. This may adversely affect the timing and pricing of the Fund’s","page_number":72,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"f9f849b4-470b-4626-b4df-26dcb254b5dc","block_type":"box","text":"acquisition or disposal of securities.","page_number":72,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"52805751-8dc7-4ff2-b0c7-afccac92a4e2","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":72,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"f4429a53-cf65-4717-9055-c210a7124fd5","block_type":"box","text":"in developed markets, in part because a Fund will need to use brokers and counterparties that are less well","page_number":72,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"4c0c8b26-0c65-47e0-b0e2-891c9e9f709a","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":72,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"14375a73-4cfd-4e02-a4d0-d4e3eba05da3","block_type":"box","text":"negligence, undue influence being exerted by the issuer or refusal to recognize ownership exists in some emerging","page_number":72,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"19798177-2af4-481a-a735-a7cb7243e0cd","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":72,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"abf0b99d-0245-4b52-b615-700f40910589","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":72,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"ff9296a8-e56a-4ae6-b61c-7390e9d8cd96","block_type":"box","text":"II-35","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a9a6991e-6937-4d15-8191-1b6d8d5263e2","block_type":"box","text":"NM1026U-5993100-72/236","page_number":72,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1669f797-f0e8-41e0-9a21-3e9d5e60fc9d","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":73,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"d98c7239-36d3-4139-b36d-838412fa878c","block_type":"box","text":"countries may be on either a currency hedged or unhedged basis, and the Funds may hold from time to time various","page_number":73,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"8d9dcad4-5192-4d85-bd69-0ee50f8c1b25","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":73,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"a404ea85-9027-494f-8a4f-9a0d3669cb0e","block_type":"box","text":"characteristics of futures contracts. In addition, certain Funds may engage in foreign currency exchange transactions","page_number":73,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"84e7a88c-5bee-4488-a587-0192872db082","block_type":"box","text":"to seek to protect against changes in the level of future exchange rates which would adversely affect the Fund’s","page_number":73,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"f91c5ce7-af04-4a5b-9a0a-5e5186f2369b","block_type":"box","text":"performance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":73,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"cb6175fd-e309-4dbe-a2e3-710d62508c07","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":73,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"36213569-7d5d-48a9-b9eb-aabf1bd40554","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":73,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"d2c37334-85e6-473f-b0d6-734190ecbb19","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":73,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"8c0e2772-519a-464a-b324-9e457cfcd0b4","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to certain","page_number":73,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"9336a7c9-3522-48ac-a850-5372c57141dd","block_type":"box","text":"additional or specific risks. Certain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":73,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"8cea9b12-6dfd-4211-98a9-1f17a247bbfd","block_type":"box","text":"these markets, there is a high concentration of market capitalization and trading volume in a small number of issuers","page_number":73,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"7a2a79ae-6565-4a96-a860-663020103475","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":73,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"69ed20d2-ade0-42c9-866a-9a2eee2ac327","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":73,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"5c72afed-ebb1-43a8-8559-e2228439a380","block_type":"box","text":"region such as in Japan and Hong Kong. Brokers in developing market Asia-Pacific countries typically are fewer in","page_number":73,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"c3994dbb-38cd-4806-86a7-336a6b3d19f3","block_type":"box","text":"number and less well capitalized than brokers in the United States. These factors, combined with the U.S. regulatory","page_number":73,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"dc21bb45-00c8-466a-bfe3-e64e2ef99363","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":73,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"b3724382-afe8-4845-8f70-8ca053ec74e5","block_type":"box","text":"in potentially fewer investment opportunities for a Fund and may have an adverse impact on the investment","page_number":73,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"692bb60e-d20f-4aaa-8053-41891abdc4c5","block_type":"box","text":"performance of the Fund.","page_number":73,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"c91dec8f-53d6-425d-955d-43749601620e","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":73,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"b7a23c95-2fcb-4ed9-9f52-8c38d1dec6de","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":73,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"14c3d1d0-ee09-4da4-93d7-39403394b795","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":73,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"51854b63-da20-4b48-98f8-d808597e888c","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":73,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"eba536d2-69da-4c71-94aa-dcaa76341fdc","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":73,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"32a9b092-8c69-4a44-a833-5a6c4e5e3588","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":73,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"54b233c2-51cf-41b2-9101-c3299b162d3b","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":73,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"ceffafdb-f1ed-464e-be84-8d5d0bb8fe2b","block_type":"box","text":"common to most such countries is that the economy is heavily export oriented and, accordingly, is dependent upon","page_number":73,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"f4a2ea41-47f6-46c0-bbfd-8c2e7379ad31","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":73,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"13007132-4933-4068-9d93-97675deed34f","block_type":"box","text":"in certain countries, as do environmental problems. Certain economies also depend to a significant degree upon","page_number":73,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"2983dc86-f76d-4a57-84df-b94f36974508","block_type":"box","text":"exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":73,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"3335af77-2c1d-47dd-a1cb-39895f9189fc","block_type":"box","text":"affected by a variety of factors.","page_number":73,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"1334bf44-ceda-4afa-86aa-93b88de3bd78","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":73,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"a46d115e-ef2e-420b-ba19-e79343cd86a0","block_type":"box","text":"Fund. For example, while the potential liability of a shareholder in a U.S. corporation with respect to acts of the","page_number":73,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"fa211719-1e9f-41b7-863e-92f5d347bb63","block_type":"box","text":"corporation is generally limited to the amount of the shareholder’s investment, the notion of limited liability is less","page_number":73,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"4b09f117-4f2e-451f-bd5b-ca5984443319","block_type":"box","text":"clear in certain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":73,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"011f44bf-b76b-47ff-bee2-723803d30dd3","block_type":"box","text":"Pacific companies may be more limited than those of shareholders of U.S. corporations. It may be difficult or","page_number":73,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"5f5c8ebb-8427-4399-8395-72bd702757f0","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":73,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"160191f2-07cc-42f1-bb0b-f17835edf125","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":73,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"82fa07f7-e7fa-479c-941d-e0bd0b4771d6","block_type":"box","text":"substantial influence over many aspects of the private sector. In certain cases, the government owns or controls","page_number":73,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"a441d0bf-921f-4fb9-a09d-21c845b0f7f3","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":73,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"41b75c18-f448-4a49-a497-f0f6f2dd3e50","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":73,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"0dcb6ac9-b655-4a46-ba5d-12a40f10dcdc","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s portfolio. In addition, economic","page_number":73,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"234fa43d-c0e4-4452-9811-41fad02dcf96","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":73,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"8f076b4d-65a1-4298-a67e-c8709219f96b","block_type":"box","text":"nations.","page_number":73,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"6d227393-ad5f-4a6a-b03d-b5a1b0b26aad","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":73,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"0e459711-90ba-4c79-8c25-2b8a9ef98f52","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial reporting","page_number":73,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"b522e51e-4111-458a-8141-e11757d91522","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":73,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"5d65ac85-f06c-45b8-af1c-22fbdee9aa37","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":73,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"8f7b5921-9230-4097-8bb7-575d1a0e564a","block_type":"box","text":"certain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":73,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"d801d5f3-6c06-4046-8c9e-50b6be7db0f2","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for certain developing","page_number":73,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"6eacbdf5-b634-434a-a027-be8b219fd9fc","block_type":"box","text":"market Asia-Pacific companies.","page_number":73,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"6b97c18b-b3b7-475d-8c3f-c794e26c0728","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":73,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"44f60797-4365-4e21-932f-affb2c3817b8","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transportation and custody","page_number":73,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"900744b9-7ae8-42d4-8378-a71d10a6c2ba","block_type":"box","text":"services for such securities outside such countries.","page_number":73,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"25ef5f33-fac1-4a84-9a7b-a8a22dbc1154","block_type":"box","text":"II-36","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"53039849-3924-4b14-acb4-c6eabe0c44d0","block_type":"box","text":"NM1026U-5993100-73/236","page_number":73,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ba875eb4-5943-4cf7-8da8-69fb3226ced6","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":74,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"351a183f-de4d-4460-8442-abe2f450713c","block_type":"box","text":"to commercial banks and foreign governments.","page_number":74,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"f1128cb7-828d-48d6-8cf0-200318d435e2","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":74,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"6bb5e357-8a20-40be-8704-efe9941a952b","block_type":"box","text":"on a Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":74,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"5f59e3ff-04a6-48e7-adaa-d634731a565f","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":74,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"9d46bf35-278d-4663-8a66-50e06b059361","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":74,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"4d54fbd4-c5ff-44ac-b107-f6f6088c4340","block_type":"box","text":"practicable or appropriate to invest in a particular developing Asia-Pacific country. A Fund may invest in countries in","page_number":74,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"f8057abd-39d4-4b59-a113-0a9293158465","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":74,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"8e341b36-6cd2-4ee1-9cf7-ac93b67ecd2d","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":74,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"5c3f5dff-ec2f-4989-bfee-1fc58c28dcb1","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":74,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"54876f53-0563-4dac-8892-0fa4f4f126d4","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign","page_number":74,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"c95b621a-a367-4500-aad1-411cc60eb455","block_type":"box","text":"entities such as a Fund. As illustrations, certain countries may require governmental approval prior to investments by","page_number":74,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"c7820c10-d5ad-4028-b0fc-916b6000e01c","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a particular company or limit the investment","page_number":74,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"32be84c7-2241-4dcf-8192-4b6480474ba4","block_type":"box","text":"by foreign persons to only a specific class of securities of a company which may have less advantageous terms","page_number":74,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"480842d6-2a86-4a3b-889c-f31842cbd1e6","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":74,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"5fdeb9bc-7237-462e-a404-9205cb030d20","block_type":"box","text":"be no assurance that a Fund will be able to obtain required governmental approvals in a timely manner. In addition,","page_number":74,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"1e9edade-0c63-4070-9e67-4f9ebff29139","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":74,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"bb1dbd22-1069-4c24-bff5-9f657da2f81a","block_type":"box","text":"have an adverse effect on the value of such shares. Certain countries may restrict investment opportunities in","page_number":74,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"9d642da6-798f-4e90-9a73-91905e64814c","block_type":"box","text":"issuers or industries deemed important to national interests.","page_number":74,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"ec890e38-7d1c-4dd5-95a5-0a811f978a03","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific countries, as","page_number":74,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"a1143fc6-e40d-4ab1-bb4c-519db109a7f1","block_type":"box","text":"well as limitations on such investments, also may have an adverse impact on the operations of a Fund. For example,","page_number":74,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"2ac4c2c9-5edd-4117-9241-5a3a5c8b9833","block_type":"box","text":"a Fund may be required in certain of such countries to invest initially through a local broker or other entity and then","page_number":74,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"6228dfd8-bc64-4f68-b731-6c05fad6c29f","block_type":"box","text":"have the shares purchased re-registered in the name of the Fund. Re-registration may in some instances not be able","page_number":74,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"3feee344-9109-454d-8894-0f3f7d057910","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied certain of its rights as an investor,","page_number":74,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"14bbf8f5-9b0d-4a2b-919e-dc438486dd13","block_type":"box","text":"including rights as to dividends or to be made aware of certain corporate actions. There also may be instances where","page_number":74,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"7447e851-e62b-48f0-83dc-becb0880c21d","block_type":"box","text":"a Fund places a purchase order but is subsequently informed, at the time of re-registration, that the permissible","page_number":74,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"2e9d2d4d-1913-4ced-a1bb-255207db95a1","block_type":"box","text":"allocation of the investment to foreign investors has been filled, depriving the Fund of the ability to make its desired","page_number":74,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"86990776-917d-439c-87f9-1b750b9381c6","block_type":"box","text":"investment at that time.","page_number":74,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"c9239980-600b-408c-bb53-1cb7ae16d90e","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate investment","page_number":74,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"5a181bef-ff2f-4496-950f-a941273b3e0b","block_type":"box","text":"income, capital or the proceeds of sales of securities by foreign investors. A Fund could be adversely affected by","page_number":74,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"72d83f43-1fae-49e5-8526-2835f1ceee24","block_type":"box","text":"delays in, or a refusal to grant, any required governmental approval for repatriation of capital, as well as by the","page_number":74,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"1091bd35-c898-4832-8ec2-350743f928f8","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that certain countries may impose currency","page_number":74,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"906bfbd9-1cfd-4475-b43d-6a9ab9bdc9d5","block_type":"box","text":"controls or other restrictions relating to their currencies or to securities of issuers in those countries. To the extent","page_number":74,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"0b52370f-cc3e-4469-9922-28a5f9ebf971","block_type":"box","text":"that such restrictions have the effect of making certain investments illiquid, securities may not be available for sale","page_number":74,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"c825fb18-fa9f-481d-991b-df4f3a799203","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s portfolio subject to","page_number":74,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"a52b005a-1dae-4f2f-9dae-606bec0f3280","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the portion of the Fund’s assets","page_number":74,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"905f3c42-3df5-4f35-a521-b771ca32fe4b","block_type":"box","text":"that may be used to meet redemptions may be further decreased. Even where there is no outright restriction on","page_number":74,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"a3c579d4-202c-4cb6-8582-8c95189a4a4e","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect certain aspects of the operations of a Fund (for","page_number":74,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"ba883013-35f8-47f4-a727-816df785e017","block_type":"box","text":"example, if funds may be withdrawn only in certain currencies and/or only at an exchange rate established by the","page_number":74,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"688a4619-5bc1-4462-85a8-1c1ec154ea8a","block_type":"box","text":"government).","page_number":74,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"9467a53f-a1e5-4ca6-87cd-b02eab8da8fe","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":74,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"21312347-22da-44b8-966a-c1437776ab6c","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":74,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"da8c6483-680a-4c4d-b7a9-2501ee80d9cf","block_type":"box","text":"securities of an issuer that, in its most recent fiscal year, derived more than 15% of its revenues from “securities","page_number":74,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"4c4ed369-d536-4535-af17-0fb5327b87a4","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in certain","page_number":74,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"9fd0dc8a-bb47-48c1-a27e-b1b06ce9de3a","block_type":"box","text":"foreign banks and other financial institutions.","page_number":74,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"674b5f83-130d-4c04-95a7-fd947f116f43","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":74,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"dbc0a837-e455-4826-beda-0a454fbf3a90","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":74,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"e60e5ac1-692e-42d2-b06f-7ef8ff7e3684","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private property rights and","page_number":74,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"276efc56-19d7-4287-acb6-c92f2d053d48","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":74,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"0bfde8f4-a622-4de4-9bf5-aa92c2ee2788","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":74,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"abcb660e-695c-44a4-a530-5f53b157a531","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":74,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"1a631649-37f9-4597-bfed-640c1788941b","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":74,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"680daad4-fc37-45ea-b588-95e319a99098","block_type":"box","text":"certain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":74,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"e1e6d371-da7d-4cbd-b4be-7048a8f28ddd","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":74,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"3a39e3c3-00ec-4eb8-a439-c701611defb5","block_type":"box","text":"II-37","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1cbd1c6b-3af3-4a83-8c52-514a0b3234e8","block_type":"box","text":"NM1026U-5993100-74/236","page_number":74,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f4b6f3a8-5ddb-444c-b4b1-6ae6a18a2bd4","block_type":"box","text":"little financial or accounting information available with respect to issuers located in certain emerging market","page_number":75,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"601f5741-3855-417c-a1ab-8b4735c26b27","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":75,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"668db6fa-99d5-4a28-8119-1615b30b29a8","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":75,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"0053c244-f523-4748-a246-fc7258c14b17","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":75,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"0779e5e0-521e-4a6c-b835-4fdba12f24e3","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":75,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"ca7a87e4-6dc3-4eec-9950-6a851b49c784","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":75,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"d98fc775-564d-42ca-8ba9-24d6356177ef","block_type":"box","text":"foreign securities.","page_number":75,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"05db68ba-98d6-4c23-9db6-9085c59d8bf2","block_type":"box","text":"Risks of Investments in Russia.","page_number":75,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"efb0df5e-8f43-4bcd-bcf6-18deb422a55b","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by companies","page_number":75,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"e6c57f44-b03f-455c-99a8-2b0d033646c6","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":75,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"a464326a-cb61-4f2c-b656-38e5f3d66c8a","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":75,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"b609f95c-0d4d-44e3-a07e-d90fe07292f1","block_type":"box","text":"and a substantial portion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":75,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"b9f40503-1be7-43db-9344-454c477cdd6a","block_type":"box","text":"The inexperience of the Russian securities market and the limited volume of trading in securities in the market may","page_number":75,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"36e4126f-847f-4ee3-9cef-5e5a4bbe78fb","block_type":"box","text":"make obtaining accurate prices on portfolio securities from independent sources more difficult than in more","page_number":75,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"29975521-3881-4788-9295-764313f5bd41","block_type":"box","text":"developed markets.","page_number":75,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"c99f025b-05a8-482d-a940-652cc3b7f0fe","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":75,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"07056cc0-2417-4558-bbbc-d18425651832","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":75,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"0738bf4a-3ba3-4c5a-a3f6-871a451ffd7f","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":75,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"8862fa09-24da-41f1-a2c7-40dbccf60d89","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":75,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"3197eb1d-b7eb-445c-8804-e0e2e76bc067","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":75,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"9c23d4e9-1ce2-4e9d-a118-1d4bfffbca98","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":75,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"2fcf1430-b40a-4034-9791-d41816632822","block_type":"box","text":"through the NSD is now based on the records of the NSD and not on the records of the local registrars. Although the","page_number":75,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"b4a8feff-a381-49d5-b1c5-83d0bb7c7dbe","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":75,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"93dad7d3-3e4a-46b7-a064-82d6751bfecf","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":75,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"1f2a9697-fc6a-4f7e-99ea-3166b97c47e6","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":75,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"cf840af9-cf39-43f4-90c8-4d979dee4675","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":75,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"88f803d0-7182-47fb-a1e0-dc4f1ba6228e","block_type":"box","text":"respect to the completion and submission of corporate action elections. To the extent that a Fund suffers a loss","page_number":75,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"c1d717f0-98e6-4c9e-9674-8dd7d3f97589","block_type":"box","text":"relating to title or corporate actions relating to its portfolio securities, it may be difficult for the Fund to enforce its","page_number":75,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"45b8e613-3a19-46de-8776-9b8e7b7e7f0c","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":75,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"c5c865c5-98cc-435b-823f-94a045b2244d","block_type":"box","text":"custodian bank, and as a result the custodian may be considered the ultimate owner of securities held on behalf of","page_number":75,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"a4f93a32-bbf0-4b1a-8c72-adcccffa6213","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":75,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"0d4cf47a-0273-45a1-8a00-0afcea61bfe7","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military measures, as it","page_number":75,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"9197e2d0-9473-47c2-b12a-6bf48e447356","block_type":"box","text":"did with Georgia in the summer of 2008 and the Ukraine in 2014 and 2022. Russia launched a large-scale invasion","page_number":75,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"2701f969-864c-4b8a-ac2d-e931140be7d6","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":75,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"071447d5-0343-4687-a978-139833239235","block_type":"box","text":"future market disruptions, including declines in its stock markets and the value of the ruble against the U.S. dollar,","page_number":75,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"5b8b31b6-d21d-4099-b235-086e16697602","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":75,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"508e6de9-c62b-449e-908c-8f4dfa0561dc","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":75,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"0260dea6-060b-4a0d-a798-e00eca938c53","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":75,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"8e962dff-8c8c-4e73-b5a8-750eb5b64f8c","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":75,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"cf71828a-e0ed-49cd-b7de-677102a28d67","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":75,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"513997e6-3240-47c1-a731-6b66b586e42a","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":75,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"2d9a52d5-e5e5-4e58-beb4-b1f93ae730a3","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":75,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"5f69c7d7-8f14-4e5f-b421-dc5ca40f124e","block_type":"box","text":"threatened responses to such military action may also impact the markets for certain Russian commodities, such as","page_number":75,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"6d6d5710-c339-40ab-9689-7b07f3d8e322","block_type":"box","text":"oil and natural gas, as well as other sectors of the Russian economy, and may likely have collateral impacts on such","page_number":75,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"f450a6f5-be1c-4e3f-bab7-c87880f59bc5","block_type":"box","text":"sectors globally.","page_number":75,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"17de889d-8e6f-49ac-93f8-391b3e80f625","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":75,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"6e12008f-4f58-4ec5-a0f3-229f365d585b","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions","page_number":75,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"a90467cb-a28f-4fac-a788-5be2fd74cfd4","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including","page_number":75,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"9ef3afc8-b9c2-401f-819a-712e62b244d2","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":75,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"004a2052-1118-41ba-bbf5-006d6985a023","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":75,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"3aa7dc7d-0f9e-424c-92a9-ef0b144fefbf","block_type":"box","text":"payments. These sanctions, or even the threat of further sanctions, may result in the decline of the value and","page_number":75,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"1de223cd-ce6e-46ee-896a-0438d8423e13","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":75,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"d375a867-02dd-4b02-bd96-1dd6016c245a","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":75,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"5e84ab5d-0797-464c-a781-8238bce432d7","block_type":"box","text":"funds invested in prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities","page_number":75,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"3d951d38-b443-4a56-b6aa-0ea03c8d3203","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":75,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"abcf4249-36c4-42c3-a3ec-a70337700893","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":75,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"6f7be384-ea6f-46d0-a897-c1dda59ff15b","block_type":"box","text":"II-38","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d27b357d-2515-42db-ad6f-4d2c836f2046","block_type":"box","text":"NM1026U-5993100-75/236","page_number":75,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e3c1b435-3d29-43f6-9909-fe4a19d14ef5","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":76,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"d718e265-646e-4c63-8775-b046852e9c2b","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":76,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"60e509e7-8b72-40db-ab2d-447d4c0f0a43","block_type":"box","text":"issuers is new and untested. Such ability could be restricted or revoked by the Saudi Arabian government at any time,","page_number":76,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"372eb3d4-0060-4f7e-bb5c-9b28c6a08415","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":76,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"f9c0643e-f17e-4ef1-b4ef-2608f864680e","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":76,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"a1f0a37a-8895-4d67-9a85-3f03731ba9c0","block_type":"box","text":"including a limitation on a Fund’s ownership of any single issuer listed on the Saudi Arabian Stock Exchange, which","page_number":76,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"64ba387d-bc29-446d-a39c-f43dc68a8803","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":76,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"55d4843a-2cb6-46eb-9923-4043cfad38b2","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":76,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"2fd4c510-5562-4e21-9681-eeca606ab06b","block_type":"box","text":"approvals or additional foreign taxes, may be instituted at any time. A Fund may not be able to obtain or maintain any","page_number":76,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"5de10d3b-e182-4aeb-8a1c-65ba47836025","block_type":"box","text":"such licenses or approvals and may not be able to buy and sell securities at full value. Major disruptions or","page_number":76,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"a119d518-740b-49fc-9837-d8a3afb781d3","block_type":"box","text":"regulatory changes could occur in the Saudi Arabian market, any of which could negatively impact a Fund. These risks","page_number":76,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"e2665299-8e9a-4183-8bc1-2e44afc3c96b","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":76,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"994421ea-6307-49e2-9c14-057a634e0187","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":76,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"2bb8a46a-245f-44a1-88ad-0c4809c50424","block_type":"box","text":"of assets and property or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":76,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"ca6f1024-fc35-4c0c-ba65-3ee326a96eb5","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":76,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"fd0ac94d-58c8-4720-ad7f-b756133c9057","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":76,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"725d0c75-8d46-4dd4-8be0-b36d67b7995b","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":76,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"5b30bcfd-7231-42e6-baeb-d0ee16793663","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, certain entities and industries. Newly privatized","page_number":76,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"52f3a8a8-adf9-4561-aa6b-29dac3fe78ac","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":76,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"63c18bcd-6972-465c-acbd-b62c9c5851f8","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":76,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"e9728865-a0d1-446c-9123-d1ce55b3c4cb","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":76,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"0c604fb3-e5f6-4cac-8cc2-1be16d9a6b33","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Further,","page_number":76,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"fe03c716-e703-4e02-862b-f0192761b62d","block_type":"box","text":"under income tax laws imposed by the Department of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":76,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"0f9608d2-de54-4b49-a2eb-042463692396","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":76,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"5851b208-49c2-4d5f-ad3c-d1b4736242e5","block_type":"box","text":"to an applicable treaty). Saudi Arabia is highly reliant on income from the sale of petroleum and trade with other","page_number":76,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"eae87a14-8a0d-46dc-91eb-37b371c4ac27","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":76,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"600b986b-c19d-4c29-b08a-28a7e5fbedb4","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":76,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"68280731-5b53-49f9-911c-1054cb4de00a","block_type":"box","text":"impacted.","page_number":76,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"0aa5b23e-0173-4f1e-a942-586aac21b841","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":76,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"6f025ded-aab0-4fcf-aae4-1bb87f9ffa98","block_type":"box","text":"many aspects of the private sector. Although liberalization in the wider economy is underway, in many areas it has","page_number":76,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"36ecf622-df19-412a-a5eb-43c1e038455a","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":76,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"20c3b6dc-44aa-40c3-9242-719376716440","block_type":"box","text":"key industries. The situation is exacerbated by the fact that Saudi Arabia is governed by an absolute monarchy. Saudi","page_number":76,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"ad73d903-81f0-483a-b78e-a306a98390fd","block_type":"box","text":"Arabia has historically experienced strained relations with economic partners worldwide, including other countries in","page_number":76,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"c5e173a0-ec9c-452d-9deb-6313357d78a7","block_type":"box","text":"the Middle East due to geopolitical events. Incidents involving a Middle Eastern country’s or the region’s security,","page_number":76,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"34ddedc8-8a0b-459b-bd69-b2d6718c6d9b","block_type":"box","text":"including terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":76,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"b302acf4-de7a-4aac-abf2-9b62a9165221","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":76,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"3739a544-8fb2-4dca-b2b1-a3aa62412a1c","block_type":"box","text":"Arabia, which could affect private sector companies and a Fund, as well as the value of securities in a Fund’s","page_number":76,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"0d8e14a6-75c9-4996-8eb1-eb6c579893ab","block_type":"box","text":"portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":76,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"7b646440-aeaf-4b16-8853-794cd00cda58","block_type":"box","text":"of sanctions, may result in the decline of the value and liquidity of Saudi Arabian securities, a weakening of the Saudi","page_number":76,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"0724e1a8-bb8c-422a-a370-8e54d1f48da3","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":76,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"64fe3e28-486e-4cff-bf37-57a30a961027","block_type":"box","text":"on cheap, foreign labor, and changes in the availability of this labor supply could have an adverse effect on the","page_number":76,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"2138b6f4-bc50-4718-8f69-9c9941127a54","block_type":"box","text":"economy.","page_number":76,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"09748ef1-3eb9-4209-a9ae-777fa4e055d0","block_type":"box","text":"The securities markets in Saudi Arabia may not be as developed as those in other countries. As a result,","page_number":76,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"7e9b4947-1112-4288-99f6-8d15354444f8","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":76,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"2b013b03-18dc-4b4a-8e22-c972d3a13429","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding the existence","page_number":76,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"83aa6d4c-5296-449a-a22f-fcd5cc90f0f0","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of certain Saudi Arabian","page_number":76,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"84856c6d-fe25-4ab7-a400-981bfd147eeb","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":76,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"714e9051-47ae-43c1-9709-2ff5cca87fb0","block_type":"box","text":"infrequent trading may adversely affect the pricing of these securities and a Fund’s ability to sell these securities in","page_number":76,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"740c6032-1657-4103-bca8-8a50861f5fb2","block_type":"box","text":"the future. Current regulations in Saudi Arabian markets may require a Fund to execute trades of securities through a","page_number":76,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"897777cc-65e7-4498-b8c4-3e92bed01a6e","block_type":"box","text":"single broker. As a result, the Manager will have less flexibility to choose among brokers on behalf of a Fund than is","page_number":76,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"4953fa2c-0f04-4b0a-bc12-7610425925e4","block_type":"box","text":"typically the case for investment managers.","page_number":76,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"ba87ca0d-ca3d-4ad5-bdc6-2048ac143519","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":76,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"f6ff082a-f1c2-48f1-8a20-61663c447f45","block_type":"box","text":"instability, and there remains the possibility that the stability will not hold in the future or that instability in the larger","page_number":76,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"6abd9410-5f24-48c1-931f-cbf9eecb06d9","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":76,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"5ab146cb-05fb-403c-8ae1-eedc2bddad15","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":76,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"ed6196e5-39bb-4d3f-bfe5-cec052f6c155","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by certain groups in the","page_number":76,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"ffe291fe-d3de-4a44-b722-4070df9472d2","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":76,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"f38e8518-1c5a-4cb4-9392-9b3dbe214237","block_type":"box","text":"II-39","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"050b9591-54cc-4499-b3bc-483afe744be5","block_type":"box","text":"NM1026U-5993100-76/236","page_number":76,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"909319ad-317a-4716-a6e8-4cacb8775b5a","block_type":"box","text":"with Saudi Arabia and other Middle-Eastern countries may affect these attitudes and policies. The U.S. is a","page_number":77,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"90b0b778-9ddf-411e-8e9a-d33736182837","block_type":"box","text":"significant, and in some cases the most significant, trading partner of, or foreign investor in, Saudi Arabia. As a","page_number":77,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"a4a589b8-5301-4da5-9fda-97ce59e8488b","block_type":"box","text":"result, economic conditions of Saudi Arabia may be particularly affected by changes in the U.S. economy. A decrease","page_number":77,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"17b20a08-11ac-4b25-99ad-a59b768a87c5","block_type":"box","text":"in U.S. imports or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":77,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"de8eced5-6407-4747-85e0-bd427b335526","block_type":"box","text":"an economic slowdown in the U.S. may have a material adverse effect on the economic conditions of Saudi Arabia","page_number":77,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"16bbba5d-7b60-41d7-a4f2-3bfee103cb9a","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in North Africa and the larger Middle","page_number":77,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"0dec742e-bc47-4be4-93c8-03bc386aa2a7","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":77,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"b3546084-3096-4ab2-b5d9-c49147bffc12","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s portfolio.","page_number":77,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"356a478f-aab8-4bad-983e-11de01be04c6","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":77,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"9f8e7196-7e38-41ba-8300-64a963ffb704","block_type":"box","text":"and/or embargoes imposed by the U.S. Government and the United Nations and/or countries identified by the U.S.","page_number":77,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"e38c5bcb-f591-4fda-996f-7f66a809f38b","block_type":"box","text":"Government as state sponsors of terrorism. As a result, an issuer may sustain damage to its reputation if it is","page_number":77,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"a0afbeea-1745-4698-ba04-b78452a2cf81","block_type":"box","text":"identified as an issuer which operates in, or has dealings with, such countries. A Fund, as an investor in such issuers","page_number":77,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"074b38c6-39de-4e60-ba45-e4e036522a97","block_type":"box","text":"will be indirectly subject to those risks.","page_number":77,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"bf37a215-4955-4a1c-a659-34e6bf99d292","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":77,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"e0a37804-2a54-4307-a815-9792b6b9e9c5","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":77,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"56647e1c-85f5-483c-8f75-1c522d3f025a","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":77,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"61e6639e-250e-4ddb-a8bc-e6f79fa5bcbd","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":77,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"08f209a4-5fac-4f54-9f6e-cda5949f948c","block_type":"box","text":"on export of natural resources to key trading partners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":77,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"4d5375ce-3f74-484d-9056-97a6d6368e37","block_type":"box","text":"key trading relationship that disrupts the production or export of natural resources will likely negatively affect the","page_number":77,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"b9699b50-f6f3-48e0-af8e-bacd038da7a5","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":77,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"1c136e93-0140-43a1-90a1-bba6d5229cb3","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":77,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"e6412c1e-6c96-4c62-9540-e7760c076bef","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":77,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"d956d413-6bc2-427e-a653-c90d3e0428f0","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues between the","page_number":77,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"add78d8a-bf2e-4943-aacf-ba69c8756eca","block_type":"box","text":"governments of the U.S. and Venezuela. The U.S. has imposed economic sanctions, which consist of asset freezes","page_number":77,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"00ee9bd7-d810-447e-920e-1e4fe9e12878","block_type":"box","text":"and sectoral sanctions, on certain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":77,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"8c888bfb-4137-49ba-b00f-4d266d2c470d","block_type":"box","text":"government. The U.S. could also institute broader sanctions on Venezuela. The U.S. has also taken military action","page_number":77,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"09d6d112-6bdb-46e8-98a6-f0cbe3f3a86e","block_type":"box","text":"against Venezuela in an effort to effect regime change. Military action, sanctions, or even the threat of further","page_number":77,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"65306bb2-3f00-404d-b762-7565286fe6a1","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":77,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"1f2efe1d-8b2a-4330-8c2f-741b8162af2b","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":77,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"2b0f0ab7-b619-43ac-9944-3c0e66618281","block_type":"box","text":"ability of a Fund to buy, sell, receive or deliver those securities and/or assets. Additional sanctions against Venezuela","page_number":77,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"fd1a17b8-ac73-41f6-8d6a-74ab8097da7e","block_type":"box","text":"may in the future be imposed by the U.S. or other countries. These factors, among others, can have a negative","page_number":77,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"f9192dd0-edd6-4d48-9b17-f73491efc12e","block_type":"box","text":"impact on a Fund’s investments.","page_number":77,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"8bedb4f9-1cbb-4b04-ba5d-75782e666f2f","block_type":"box","text":"Brady Bonds.","page_number":77,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"c9b5dc33-bfc7-4145-b278-a6add86f9bec","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":77,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"6f2edba4-187f-4350-bd41-2e590fc80d03","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":77,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"4d95aa97-2bd9-410e-8ccb-7fce1b91e8c0","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":77,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"dae5e215-437f-451b-8e43-1dc42f8a5b28","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":77,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"dec7a5ed-4e64-4fee-95eb-c2da9ef3208c","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":77,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"596d27fe-94b6-4336-b9e0-b49bffd21702","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":77,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"2bdc3917-3fe8-4f9c-a75f-7f5df3f9262a","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":77,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"ce2b33d7-52f5-484d-b8e7-f422bc169b9d","block_type":"box","text":"2000s, certain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":77,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"1ee5941c-f6f2-49d3-ae15-9d85c262919d","block_type":"box","text":"Venezuela.","page_number":77,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"62ec2c50-631b-4f73-9090-c5782f0cc9ff","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":77,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"d4ecac8b-e28d-4f81-a4e9-65e07045e4b6","block_type":"box","text":"and are actively traded in the OTC secondary market. Brady Bonds are not considered to be U.S. Government","page_number":77,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"e3646bff-37e0-4b9b-a42a-2160c5254ebe","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":77,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"87595c50-10ba-48c5-86c5-e96d3f8df5ea","block_type":"box","text":"discount bonds, are generally collateralized in full as to principal by U.S. Treasury zero-coupon bonds having the","page_number":77,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"b8ea2693-1cda-464b-a676-a1eedc03d245","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":77,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"3d6d296d-2047-4d9c-97a8-fade2bed173a","block_type":"box","text":"year or longer rolling-forward basis by cash or securities in an amount that, in the case of fixed rate bonds, is equal","page_number":77,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"d2ae36f4-c96b-4cbd-b09b-7762cff8f253","block_type":"box","text":"to at least one year of interest payments or, in the case of floating rate bonds, initially is equal to at least one year’s","page_number":77,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"56756de7-8240-4728-9719-97fe52b866e8","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":77,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"686e45bd-ad16-4ea3-b147-1517a63ca4fd","block_type":"box","text":"Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute","page_number":77,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"3d949f24-a90f-4a01-94ae-3069960456c6","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":77,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"69e91568-51f3-4b0a-b6cf-46d06374934d","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":77,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"eecb83e2-6ca3-42b8-8b62-a3eb1088a038","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":77,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"ad643e41-a62a-47a0-bfb0-9dca49118987","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":77,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"25374360-d83e-4841-b053-b0e250ba426b","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":77,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"8aac2927-6098-479f-a581-81539c03ff14","block_type":"box","text":"the history of defaults with respect to commercial bank loans by public and private entities of countries issuing Brady","page_number":77,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"803e8d13-0fbd-4cea-87ed-b968936d8fe3","block_type":"box","text":"II-40","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8e3f5f5b-fd12-43da-a7a2-9d092764752c","block_type":"box","text":"NM1026U-5993100-77/236","page_number":77,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e6e4ca52-098d-4a7c-9b5f-c1dcdd476476","block_type":"box","text":"Bonds. In light of the residual risk of Brady Bonds and, among other factors, the history of defaults, investments in","page_number":78,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"be442809-0643-4fb1-a111-a3a60fae83c0","block_type":"box","text":"Brady Bonds are considered speculative. There can be no assurance that Brady Bonds in which the Funds may invest","page_number":78,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"cf3caba4-550a-4bfc-b241-9fb4b6d0a272","block_type":"box","text":"will not be subject to restructuring arrangements or to requests for new credit, which may cause the Funds to suffer a","page_number":78,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"23cd77fe-53cb-40a3-926f-5c1f782a65e1","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":78,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"0bf4e6bd-b0c0-4fe0-b605-2a3113af76d4","block_type":"box","text":"China Investments Risk.","page_number":78,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"45939e9b-b24f-4b1c-8612-6ae49bc14c5a","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":78,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"a6d7fbeb-92ad-4a0e-aebc-da9c056cf321","block_type":"box","text":"including certain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":78,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"b0ddc992-3623-45b0-b3a9-861edfb907b3","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":78,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"caaef194-dfdd-4ea8-8c00-fe005502a14e","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":78,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"178a4244-6dac-42a9-b0d5-c70377e04d6a","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":78,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"49d64607-77e9-4dd2-b86c-3c0dd9126437","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":78,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"79302312-7b1b-47e3-9330-ee3634fa9b8f","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":78,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"d309c743-8914-4c35-976e-487a5c6e32fa","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":78,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"ae166ca9-ca66-4d2a-9569-d7cbfff30b12","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":78,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"a133e01f-a0b9-4aed-82eb-780421ab25f7","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":78,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"a41d9249-8824-405d-8355-ae8159de5dc7","block_type":"box","text":"even further. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":78,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"2b8f9f37-152e-4e2f-882e-214102c41755","block_type":"box","text":"Kong may cause uncertainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":78,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"70424720-47a5-4a29-93aa-049c7eb55df2","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":78,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"7b40aaeb-c60d-494e-8a6e-4885ba2cabb2","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":78,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"ef12c94c-3b52-43c2-8f77-6658d198e005","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in certain","page_number":78,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"1b703a3a-5b8d-4fc0-a8d0-1f9db76a5346","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":78,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"c2b25de4-e8b2-4f48-95a6-4e737169da7b","block_type":"box","text":"hostility between China and Taiwan would likely have a significant adverse impact on the value of the Fund’s","page_number":78,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"1d9ff164-0519-42ed-a2ee-f49611ed9976","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":78,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"0c17f8f6-c3bb-4fd5-9441-5e906b998706","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":78,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"974facb7-7fca-4912-b0c0-e8409b11b154","block_type":"box","text":"Frictions between China and the Philippines in the South China Sea pose a risk of escalation potentially leading to","page_number":78,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"b3d64acf-6902-435f-bcee-80a8ed0a1951","block_type":"box","text":"military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks against foreign","page_number":78,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"9454ed75-c1a4-4245-928d-238fcc5bc246","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":78,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"47e5b30b-403f-4e54-be7b-5ce787c0ffb7","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":78,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"c321560b-f88d-4572-afdc-527c6ff6f82f","block_type":"box","text":"companies, may impact China’s economy and Chinese issuers of securities in which a Fund invests. China could be","page_number":78,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"68e17d92-913f-4da9-a14f-d6b6207e5d4f","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within North Korea. These situations may","page_number":78,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"bcb846fa-e45d-4793-a484-00fdc28e729d","block_type":"box","text":"cause uncertainty in the Chinese market and may adversely affect the performance of the Chinese economy.","page_number":78,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"edab5c0d-9b9d-4021-9d24-1d784ad3f618","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":78,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"62105c8e-3b21-46f1-bc2a-6b8c184259ee","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":78,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"fc4513a3-cdf5-40d5-b7c8-721a4652dd39","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":78,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"28d5fa6f-bc1f-4e13-8177-b248f5596111","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":78,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"3665034d-c9e2-498d-a4d9-f454bce692e0","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":78,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"38b992ef-fff5-4b6f-a453-9d5f797ac15b","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":78,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"e3174c03-953e-4286-a868-c2c14b2baff4","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and property or","page_number":78,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"8158bb0e-e631-4b10-a56a-4737069f9d98","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":78,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"4b73ede2-fb42-4369-979f-a94e616af478","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":78,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"17be340a-f224-4bff-abaf-15c0854f85da","block_type":"box","text":"restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks. This may affect","page_number":78,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"6777c25c-35a1-4cb5-b0ce-2af84228a1dd","block_type":"box","text":"market price and liquidity of these stocks, and may have an unpredictable impact on the investment activities of the","page_number":78,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"dfddd438-c08b-4894-9d06-dae58afd8242","block_type":"box","text":"Funds. Furthermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":78,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"3dcd74a6-9a31-4787-af33-675ddd1e4aee","block_type":"box","text":"affect the performance of the securities markets and as a result the performance of the Funds.","page_number":78,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"108e942a-718d-4cd8-ac27-f2e944ae4ab3","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":78,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"040c4b4a-147e-4083-8a1a-fc26734f7321","block_type":"box","text":"brokers and other participants than in the United States. Accordingly, issuers of securities in China, including","page_number":78,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"7721e8d8-8fd8-4b24-b579-882308c1c53d","block_type":"box","text":"Chinese companies that are listed on U.S. exchanges, are not subject to the same degree of regulation as are U.S.","page_number":78,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"32cce117-1b38-47d0-a953-c1e7b432a1af","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":78,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"bc607e8f-c8cb-4680-8b35-de85d617215e","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":78,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"1b0460b4-15c7-4095-83f1-c4852f99df9d","block_type":"box","text":"information. Securities markets in China are in the process of change and further development. This may lead to","page_number":78,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"b390357b-f3bd-407c-a12e-ab0aa50d0e31","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":78,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"b0de10bf-7710-4804-b462-3f50f0f7e6b3","block_type":"box","text":"the relevant regulation. Custodians may not be able to offer the level of service and safe-keeping in relation to the","page_number":78,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"d095fc7c-1668-4f7e-a07d-e47e0c7518bf","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In particular,","page_number":78,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"b43563ba-2d73-4a84-ba85-f6ed2ac255ab","block_type":"box","text":"there is a risk that a Fund may not be recognized as the owner of securities that are held on behalf of the Fund by a","page_number":78,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"cf2146f0-defe-45ef-859f-3fe079a27a27","block_type":"box","text":"sub-custodian.","page_number":78,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"ef10d388-b7ab-46eb-832c-8ad43f3a2199","block_type":"box","text":"II-41","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d1e75f42-b317-4025-807c-1d70b4dcdde1","block_type":"box","text":"NM1026U-5993100-78/236","page_number":78,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b749afe9-b004-4120-b48e-bb05e86aa0cc","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":79,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"ba085566-5045-48d5-8d32-455c36df6559","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":79,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"30636902-46a0-4976-bb31-f21219b80742","block_type":"box","text":"on investor protection considerations.","page_number":79,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"3c79afdd-4117-48c8-8468-59e4e2c9821d","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":79,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"c740932f-40eb-4d53-befe-99601e72d4a5","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":79,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"d52d80d1-1383-4cba-b312-22e25782e2c2","block_type":"box","text":"for compliance with U.S. law and professional standards. On August 26, 2022, the PCAOB signed a Statement of","page_number":79,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"eb4c0fa4-feac-4c5f-bfc9-b82f24395c39","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":79,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"a9874df3-4741-4104-a49d-8d633d354ecb","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":79,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"62abaf90-cf1c-4778-9d14-0ee52bec0d3d","block_type":"box","text":"headquartered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":79,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"184ccb2f-0b24-4ed3-a607-57c89d9489c0","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":79,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"48778596-9513-4cae-ba66-1ea79a218eb2","block_type":"box","text":"performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":79,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"33389a60-4174-4952-89bf-c0c15a591e57","block_type":"box","text":"performed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":79,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"90d31273-1543-46b2-bc30-a59bfec7c5b0","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":79,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"914d90dd-1cd6-4411-b628-0e4f108453e9","block_type":"box","text":"2020, which requires that the PCAOB be permitted to inspect the accounting firm of a U.S.-listed Chinese issuer,","page_number":79,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"5a7dd21b-5610-4471-8f8c-50cb337bc7ef","block_type":"box","text":"Chinese companies with securities listed on U.S. exchanges may be delisted if the PCAOB is unable to inspect the","page_number":79,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"20c8584f-b3bb-427d-8911-3102a3fec590","block_type":"box","text":"accounting firm.","page_number":79,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"62a55936-5bcf-4f49-9b37-cbdb8846d220","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange control","page_number":79,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"06156d18-06f4-462f-abdf-1dc3c771c0fa","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":79,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"657feb71-ba2f-4ef8-8550-ac57b7605706","block_type":"box","text":"negatively impact performance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":79,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"878adf9b-a2ef-411d-9435-29da2d46f350","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":79,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"eca95e91-e021-45fd-9d25-e831c4a0e682","block_type":"box","text":"capital, as well as by the application to the Funds of any restrictions on investments. Investing in entities either in, or","page_number":79,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"6725d64b-79bc-4ae3-8764-95761f7ceeb3","block_type":"box","text":"which have a substantial portion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":79,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"29562130-8ae0-4424-b7f4-9d9ee10abfc1","block_type":"box","text":"seek local government approvals or take other actions, each of which may involve additional costs and delays to the","page_number":79,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"0a1c3589-0f52-4120-8bbf-dcf23265c8a6","block_type":"box","text":"Funds. The Fund may also incur costs in connection with conversions between U.S. dollars and RMB, as well as in","page_number":79,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"0453ead8-3844-44e7-9810-1292b8bd6691","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":79,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"d6f21644-fa26-4d62-9280-121db2810fb0","block_type":"box","text":"RMB (“CNH”).","page_number":79,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"ba129579-c78a-4af8-ac93-40c121a35959","block_type":"box","text":"Many Chinese companies listed on U.S. exchanges use variable interest entities or “VIEs” in their structure as a","page_number":79,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"e8d85d3e-8a5f-4a78-96d4-9b77a65335b6","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":79,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"c1863575-7539-4a2b-a132-798e710689d8","block_type":"box","text":"in another jurisdiction to issue stock to public shareholders. When a VIE structure is used by a Chinese company to","page_number":79,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"756972f4-1f32-449e-9f45-67f23f15431e","block_type":"box","text":"list its stock in the U.S., instead of owning the equity securities of the Chinese company, the U.S.-listed shell","page_number":79,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"eb7e245c-e156-49e6-9a19-174f550e1c7f","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":79,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"fd1c4c36-1dfb-4cf6-9478-6580df4c7d70","block_type":"box","text":"contracts provide the U.S.-listed shell company with only economic exposure to the Chinese company and do not","page_number":79,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"26e83c3b-a3e4-419e-9282-86e140ad2cfd","block_type":"box","text":"represent equity ownership in the operating company.","page_number":79,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"1e036858-899b-4594-a2e6-a3a3e871d3a3","block_type":"box","text":"While VIEs are a longstanding practice that is well known to Chinese officials and regulators, they have not been","page_number":79,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"e2dd970a-9a79-4691-bf1b-bc045794d45f","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":79,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"31b910ae-fd6d-46c3-b9fd-75169812a528","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":79,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"7abc1728-859e-4b65-adb7-696f0bb33709","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":79,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"bfb4fb07-44d5-4bde-af1d-fdfe5d51ae68","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":79,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"c9dc8a97-92a7-40f9-9d74-5481d0db7cce","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":79,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"17cca72d-bc68-451c-8a2d-b675469814c8","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":79,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"8eada27d-eff1-4b33-b33d-4b20cb40b252","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":79,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"3283d4ed-7227-4932-bb57-d6db1d40bc8f","block_type":"box","text":"company and the value of the U.S.-listed stock. Further, the VIE contractual arrangement would likely be subject to","page_number":79,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"dc8450fe-0c08-49d4-8f12-e5837a0245a6","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncertain and could be","page_number":79,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"4ddef738-e7c4-4221-9b4f-224c6ca1c0f0","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":79,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"326f7739-8445-4bf7-979b-4e44a7cceec4","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":79,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"cf30514d-cf56-428f-9794-b6f95f49cb94","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":79,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"4e625fee-728d-4edf-82e6-f0bd652d7a1a","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":79,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"0b5f3783-dc36-426d-adc2-a47685bf65ba","block_type":"box","text":"losses on its investments through a VIE structure with little or no recourse available. Any change in the operations of","page_number":79,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"88eb9124-da42-46cb-a2fc-d521aaf68a68","block_type":"box","text":"entities in a VIE structure, the status of VIE contractual arrangements or the legal or regulatory environment in China,","page_number":79,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"73137479-1151-4f38-835c-1d652be54cc9","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":79,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"ebdd4a5e-59a7-4fb3-8dd6-7851066636fe","block_type":"box","text":"losses to a Fund.","page_number":79,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"4bc7a550-3d6a-4b4c-aea0-5eee64181c1d","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":79,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"f3fed6a1-8518-4b72-aa32-7cac71b7582b","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":79,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"9e2d1d44-2992-4e1a-a10a-9e54fb034961","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading partners over its exporting of its","page_number":79,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"fec96693-bebc-4c31-8fab-eaf185a39db9","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":79,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"bdd6d8fa-621c-4122-9657-a82177855ff3","block_type":"box","text":"II-42","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3da2eb99-2051-4b2d-8b8f-9d96e93016d9","block_type":"box","text":"NM1026U-5993100-79/236","page_number":79,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7bbd3ed7-7ba6-4d98-890f-0074e34e84f2","block_type":"box","text":"export growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":80,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"e4b652e5-7c8f-4404-b628-a462bffb7911","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":80,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"154bafac-a621-4f3a-a6cd-9fcf755aecb0","block_type":"box","text":"and the United States or in response to actual or alleged Chinese cyber activity) or a downturn in any of the","page_number":80,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"dce03abf-65df-4d4c-8513-a4722f3056db","block_type":"box","text":"economies of China’s key trading partners may have an adverse impact on the Chinese economy and the companies","page_number":80,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"4b8a392b-996e-4061-a41c-5b0076ddad14","block_type":"box","text":"in which a Fund invests. Certain Chinese companies (which may change from time to time) are directly or indirectly","page_number":80,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"a02b19cb-1d22-4b98-a889-869e3daaeea2","block_type":"box","text":"subject to economic or trade restrictions imposed by the U.S. or other governments due to national security, human","page_number":80,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"acb43535-d386-4715-87ba-c28cdf41aedf","block_type":"box","text":"rights or other concerns of such government. For example, certain foreign technology companies are subject to U.S.","page_number":80,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"64eb9ea6-e7ea-401b-bf27-a5b2dc6a34dd","block_type":"box","text":"export controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans imports of","page_number":80,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"214d2c48-7048-4f38-8b09-dbb912a85e67","block_type":"box","text":"goods produced in certain regions of China or by certain Chinese companies due to concerns about forced labor.","page_number":80,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"10a180b1-e750-41eb-ba74-f7f4abdddfad","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":80,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"727a88ae-2ce4-4b26-af90-55d2fa89f0d8","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could interfere with orderly trading, delay settlement","page_number":80,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"dc66b74e-bb0a-4bd8-82ad-e3bd6b7f93a4","block_type":"box","text":"or cause market disruptions. Certain companies may be subject to economic or trade restrictions (but not investment","page_number":80,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"f241cfc5-8a23-42b4-9b7b-1c77e730aaff","block_type":"box","text":"restrictions) imposed by the U.S. or other governments due to national security, human rights or other concerns of","page_number":80,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"fd869e60-987d-4b16-8af0-d0f45856d1c0","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":80,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"b5b30177-7477-49a1-9bc8-acb79413b3c0","block_type":"box","text":"such companies.","page_number":80,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"135ff4c7-4553-4586-8baf-359a82d3e911","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":80,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"7b709dc9-9e4d-4d17-a097-dfa37c70a412","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":80,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"61f713d1-314b-43aa-a168-a23c06cd6c43","block_type":"box","text":"tax authorities are not as consistent and transparent as those of more developed nations, and may vary over time","page_number":80,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"618c2de5-3aac-4c2b-90e7-7b32e4fb31c5","block_type":"box","text":"and from region to region. The application and enforcement of PRC tax rules could have a significant adverse effect","page_number":80,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"19bd72d5-df4e-49ef-9ca0-4beab77de5a4","block_type":"box","text":"on a Fund and its investors, particularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":80,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"44c924ce-663d-4d3d-a970-5d24149c4cc0","block_type":"box","text":"addition, the accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":80,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"e03249dd-e9b1-4b07-a57e-19df9019bdca","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":80,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"53aef8fb-6484-472a-9f9a-f567e68a1e2e","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":80,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"80ffd29c-705e-4249-8514-b08c27d106c9","block_type":"box","text":"standards.","page_number":80,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"b7283d7f-64d0-4a4f-807e-aff10f84828e","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":80,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"80967b57-076e-4995-a085-b98b235f9445","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":80,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"2850bc88-1008-4d83-b814-14c484a229f0","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":80,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"edd588a1-d1b5-4d92-bf9b-e023e499b80e","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":80,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"d97ac89f-5097-445c-b58d-f299b5365951","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":80,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"5b0dcd5d-ddc0-4e2d-9237-d0abe3ca9dc6","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":80,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"56b662e7-6144-43a1-b62b-3836b0751e7c","block_type":"box","text":"General","page_number":80,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"2a16fe0b-b65f-4d5b-998d-e3fbbd11f7f0","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":80,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"56468250-437e-46de-98e4-b5d8247e7860","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":80,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"b24265c0-3fcd-406d-913d-b032441f58dd","block_type":"box","text":"Stock Exchange (“BSE”) (“A-shares”). Foreign investment in A-shares on the SSE and SZSE is not permitted, other","page_number":80,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"f37c8b4e-dee9-4188-8c6c-2ead0be6643a","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":80,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"54dad2bd-5716-4df1-9a4d-1e8d43178357","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":80,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"b6cb458f-cf41-4c3f-88df-a26310955bb6","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":80,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"0f891424-4027-4706-8545-e8c3e31e93e8","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":80,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"5f35567d-33da-4833-88eb-c369ccf25d9f","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":80,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"f7a2c54a-78d2-48b2-861c-2f22372731d3","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":80,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"92ab64c7-bf99-46ed-a8d0-9f2ab1e59a72","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":80,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"d3636149-3ca4-4c99-bdde-aaf5ba3c14b2","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":80,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"fdf4c457-3adc-4a48-b536-64b8a4f03b86","block_type":"box","text":"market access between the PRC and Hong Kong by permitting investors to trade and settle shares on each market","page_number":80,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"670b3376-7166-40f7-903a-d117fa20fd3b","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":80,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"86831c5c-7548-4bbd-b1e0-ef52505316ac","block_type":"box","text":"the SSE or SZSE, as applicable, would be effectuated through its Hong Kong broker and a securities trading service","page_number":80,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"9132d730-2a4d-4b31-aa3b-cdf9c64054b3","block_type":"box","text":"company established by SEHK.","page_number":80,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"def89cf5-0b87-4e0a-9d4c-17dc6086f87e","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":80,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"b0bb88a7-4cfc-4926-9d9e-c94bfa622821","block_type":"box","text":"through a Stock Connect’s Northbound Trading Link is subject to daily investment quota limitations which require that","page_number":80,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"e52bd5d4-3190-4c6f-965d-a688a30c9b98","block_type":"box","text":"buy orders for Stock Connect Securities be rejected once the daily quota is exceeded (although a Fund will be","page_number":80,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"092874cd-598d-4d32-ab87-f39f09cc6ca6","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":80,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"1563a2fe-4079-47f0-822d-b1e32e1b9563","block_type":"box","text":"investing in Stock Connect Securities on a timely basis, which could affect the Fund’s ability to effectively pursue its","page_number":80,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"c7a4ce58-2b73-4116-9b2f-e71c1fbd2717","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":80,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"ef420313-d2a0-4388-b0b6-b5c019efd3c8","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":80,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"20383661-2633-40e8-bfdd-4c2aff085515","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":80,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"d7b3f629-b4c1-44d1-8556-6fac03818e2d","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":80,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"69c7585a-f1d6-4ae3-80fe-2719cf80df25","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a certain trading day, there must be sufficient Stock Connect","page_number":80,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"64f19d02-19af-475e-847d-bf5d8266e3f9","block_type":"box","text":"II-43","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"284d5d3a-8d25-4a1f-a3ee-b552038a40fe","block_type":"box","text":"NM1026U-5993100-80/236","page_number":80,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"80195143-cdf0-4ee5-a705-31d37a130d26","block_type":"box","text":"Securities in the investor’s account before the market opens on that day. If there are insufficient Stock Connect","page_number":81,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"c336d149-b045-49c8-9fb7-42da86279124","block_type":"box","text":"Securities in the investor’s account, the sell order will be rejected by the SSE or SZSE, as applicable. SEHK carries","page_number":81,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"9caba9e3-858d-496b-ba5a-a90c6df35049","block_type":"box","text":"out pre-trade checking on sell orders of certain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":81,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"e0d69db7-52bb-4c94-9555-e5d905c9c05c","block_type":"box","text":"(“SZSE Securities”) of its participants (","page_number":81,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"74deef5c-9895-40a1-a51b-18f97cbe7857","block_type":"box","text":"i.e.","page_number":81,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"e95c0452-fd12-4104-9ff9-9e3d451f8d6b","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":81,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"cb73a6a7-ba91-4cf9-91a1-ea2269777b5e","block_type":"box","text":"must be designated as eligible to be traded under a Stock Connect, those shares may also lose such designation,","page_number":81,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"fdaaf1a1-d5e2-4ee2-8bbf-0ae78072c17b","block_type":"box","text":"and if this occurs, such shares may be sold but cannot be purchased through a Stock Connect. In addition, Stock","page_number":81,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"7b323202-eb57-4594-b157-b9e55536e05b","block_type":"box","text":"Connects will only operate on days when both the Chinese and Hong Kong markets are open for trading, and banking","page_number":81,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"d282cb95-f9fd-4ded-afc9-6fa381d33149","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":81,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"e0688680-36fe-4768-8751-543b0104253a","block_type":"box","text":"Connect Securities through a Stock Connect may subject a Fund to a risk of price fluctuations on days when the","page_number":81,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"a07e9e16-9e32-4568-bac7-a7a52bb9e5f8","block_type":"box","text":"Chinese market is open, but a Stock Connect is not trading. Moreover, day (turnaround) trading is not permitted on","page_number":81,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"b3070918-6d7c-4591-abdf-3a8ad1721c2e","block_type":"box","text":"the Stock Connect Securities market. If an investor buys Stock Connect Securities on day “T,” the investor will only","page_number":81,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"5b1862fc-b7bb-4edc-aa1f-e519b4c0ff8c","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Further, since all trades of Stock Connect Securities","page_number":81,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"a0803c3f-ee3c-407d-aa06-c846cdf4ac7e","block_type":"box","text":"must be settled in RMB, investors must have timely access to a reliable supply of offshore RMB, which cannot be","page_number":81,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"5cb42d9d-c68d-4150-accc-1a75f414f00d","block_type":"box","text":"guaranteed. There is also no assurance that RMB will not be subject to devaluation. Any devaluation of RMB could","page_number":81,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"7fc0a20b-c48a-4969-baf1-84f9292fb42d","block_type":"box","text":"adversely affect a Fund’s investments. If a Fund holds a class of shares denominated in a local currency other than","page_number":81,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"6903e790-6463-4398-bf0e-ed8f0c371621","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund converts the local currency into RMB for","page_number":81,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"b0e758f4-b6ed-433c-8723-619e153add2f","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":81,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"6a202263-0313-4ca1-94bb-02a876e98180","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":81,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"4e532f62-32ac-4033-a3fe-03a8d79e5b7f","block_type":"box","text":"as nominee on behalf of investors. The precise nature and rights of a Fund as the beneficial owner of the SSE","page_number":81,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"8f49b1ea-e9b1-4306-9460-9701bd2bfbc3","block_type":"box","text":"Securities or SZSE Securities through HKSCC as nominee is not well defined under the PRC laws. There is a lack of a","page_number":81,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"6772ae91-0b7b-4a04-a303-78f96ad9cad6","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":81,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"caecb4f0-3ca3-4fca-a06c-1848161a05af","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC courts. The exact nature and methods of","page_number":81,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"19220036-2760-4e6b-9f35-ca8c36249e43","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncertain. In the unlikely event that","page_number":81,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"73d303ef-ffc7-48ce-8de2-1f1765dbae8c","block_type":"box","text":"HKSCC becomes subject to winding up proceedings in Hong Kong, there is a risk that the SSE Securities or SZSE","page_number":81,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"d986619e-e466-4780-b376-f73612012654","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as part of the general assets of","page_number":81,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"1188be69-252c-4a81-9163-4c019c8de61a","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":81,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"3b4a030e-feda-46a9-94b9-a05950598c73","block_type":"box","text":"proprietary interests in the SSE Securities or SZSE Securities held in its omnibus stock account in the CSDCC, the","page_number":81,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"15e0df80-1fe2-498d-9e88-a6417df60820","block_type":"box","text":"CSDCC as the share registrar for SSE- or SZSE-listed companies will still treat HKSCC as one of the shareholders","page_number":81,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"b903f91d-0959-47d7-bf24-d945121071b0","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":81,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"0f0fe068-f0fe-42d4-9a73-6bdd3e4b9c44","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps participants of Central Clearing and","page_number":81,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"34a432df-7774-410b-bf79-2c079197e17c","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS participants to take steps in","page_number":81,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"d281c25f-30d6-4281-9faf-8397eae10446","block_type":"box","text":"order to participate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":81,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"480be7fb-4d5f-47e3-b4bb-a21d696025fd","block_type":"box","text":"HKSCC through participants of CCASS. All voting instructions from CCASS participants will be consolidated by","page_number":81,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"38a5e0a0-2b52-4b9d-a7da-1e72626969d2","block_type":"box","text":"HKSCC, who will then submit a combined single voting instruction to the relevant SSE- or SZSE-listed company. As a","page_number":81,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"a095b723-ecb8-45d7-abf7-00dc3bc518eb","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":81,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"84c26329-a971-4bb9-893d-ab9e5ad7be27","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":81,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"e9a4cf98-d141-4c99-b553-f7e19538ba8d","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":81,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"92d4a973-1b44-4f51-a3ec-fec5292171e3","block_type":"box","text":"to exchange-traded products in Hong Kong. For defaults occurring on or after January 1, 2020, Hong Kong’s","page_number":81,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"6cc9ea36-bc2e-4b1c-bf18-0668e6c231fa","block_type":"box","text":"Investor Compensation Fund covers investors’ losses in relation to securities (i) that are traded on the SSE or the","page_number":81,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"f707fa85-d526-4489-bbc6-5fe626ff6467","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Northbound","page_number":81,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"545462b6-b437-4222-9c0f-cf3c6264bee7","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Northbound trading through securities","page_number":81,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"c0b982f2-ec43-42f9-bbad-0e0a0ca14cd9","block_type":"box","text":"brokers in Hong Kong but not PRC brokers, it is not protected by the China Securities Investor Protection Fund in the","page_number":81,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"62176827-db3e-4d73-a4a8-38a64717e96e","block_type":"box","text":"PRC.","page_number":81,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"e9d9aa0a-dad7-4f54-9e82-80eddf352b00","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information technology","page_number":81,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"76285d1e-0d9c-4d4f-8607-62470c2015ec","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":81,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"faebe148-ea75-4180-b4b3-95701feaa815","block_type":"box","text":"house. Further, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":81,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"b2c93ae2-9e4a-4bb3-bf76-25c3d956490d","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the part of SEHK and exchange","page_number":81,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"931420e6-4a48-4da5-9d95-acfa7d3cfbd4","block_type":"box","text":"participants. There is no assurance that the systems of SEHK and market participants will function properly or will","page_number":81,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"35573616-6864-4099-a6aa-9188526b36e7","block_type":"box","text":"continue to be adapted to changes and developments in both markets. In the event that the relevant systems fail to","page_number":81,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"ef139155-b8df-4a73-a1c7-fabdd2a7ba45","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":81,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"5073a0fb-5061-4f51-97e8-71e49fd3ccb0","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":81,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"21994207-5cc5-4261-8176-a13dc96f6cb0","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":81,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"1b6ac94b-434a-4442-9347-1e44e4dcf2a7","block_type":"box","text":"New or revised regulations may be issued from time to time by the regulators and stock exchanges in China and","page_number":81,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"3a0f0b84-21aa-4ea9-b9d3-4b2ecffd8fa5","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":81,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"045e79e8-a563-4b33-b476-049d8c6d668a","block_type":"box","text":"addition, there can be no assurance that Stock Connect will not be discontinued. A Fund may be adversely affected","page_number":81,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"375f2989-b217-46ce-a21d-f2f33add6ae2","block_type":"box","text":"as a result of such changes. Furthermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":81,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"ccb6e315-8df9-48a3-8716-3925690bfd12","block_type":"box","text":"II-44","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5df50e81-dfdd-4b3c-aecc-11b13d0a861d","block_type":"box","text":"NM1026U-5993100-81/236","page_number":81,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9fa5a79f-9684-4a61-8151-c605ee77e919","block_type":"box","text":"significantly and issues may arise from the differences on an on-going basis. In the event that the relevant systems","page_number":82,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"fff1c8ee-32f4-49f2-8d33-a5674752f4b2","block_type":"box","text":"fail to function properly, trading in both markets through Stock Connects could be disrupted and a Fund’s ability to","page_number":82,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"f8980ba5-115f-4691-b43e-9e4958faee8d","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":82,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"39b266d9-8559-49ab-9e0b-327993e0d784","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":82,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"29814c0b-67de-48f0-ad78-edff31850319","block_type":"box","text":"other restrictions. Further, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":82,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"1009a67a-7572-46db-9e27-b0e55a81d513","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":82,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"7fbf3ae1-8a42-428e-84ea-967279ee72bf","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":82,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"596ad149-96d1-438a-8f44-e48a5be67a78","block_type":"box","text":"Suspension Risk.","page_number":82,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"449e0bad-6d7f-4df3-9d99-3251e822d376","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":82,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"dc24da8d-5d28-49b3-8309-6db7d217e788","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":82,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"07a84eda-b946-456a-9ecf-c207ecafd6ee","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":82,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"08608229-e198-4242-b1fd-7107fd7498c1","block_type":"box","text":"global equity markets. Each of the SEHK, SSE and SZSE reserves the right to suspend trading of SSE Securities and","page_number":82,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"6d2ecaa5-df46-447e-845a-8ad0a7a6e65b","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":82,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"60dd3ce1-e060-4fe4-a1f7-bb1fc6e038ba","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":82,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"4d6e7e2d-d5a3-49dd-bb54-61cea8a8c58b","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":82,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"32a2cd9a-0df5-49b7-b7ee-a1cc12195907","block_type":"box","text":"measures to halt or suspend Northbound trading. Where a suspension in the Northbound trading through Stock","page_number":82,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"53e53c7b-17d6-4a22-a3e7-9945561ff5f7","block_type":"box","text":"Connect is effected, the Fund’s ability to access the PRC market will be adversely affected. Trading suspensions in","page_number":82,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"28a7c709-58d0-4fb3-9019-2add91401886","block_type":"box","text":"certain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":82,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"4a4958d4-ecb8-4e7b-bf85-06532e64247c","block_type":"box","text":"daily price limit, generally set at 10%, of the amount of fluctuation permitted in the prices of the relevant SSE","page_number":82,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"ef51cd76-c7e9-4dad-babc-9b5136e62074","block_type":"box","text":"Securities and SZSE Securities during a single trading day. The daily price limit refers to price movements only and","page_number":82,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"7fe6e1cc-6a9d-408c-8b18-cfd6c82ee176","block_type":"box","text":"does not restrict trading within the relevant limit. There can be no assurance that a liquid market on an exchange will","page_number":82,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"e81e64ae-7193-4bb9-bf5a-9f12b8fb3108","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":82,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"91da5e10-a1c6-4c82-9df6-fe35b4c6dbe7","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":82,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"9d04ce03-02ec-43ea-97a7-becdaa6997b8","block_type":"box","text":"A Fund may invest directly in the","page_number":82,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"e1353cbb-2c19-45c7-9a32-4b2166f82da3","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the northbound trading of Bond","page_number":82,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"0276e403-c30b-43fd-a334-09f36b908dfd","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":82,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"c918b370-4846-4202-81ca-5fae8f1088af","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":82,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"20548745-35ac-4dd0-be2a-916aa536249b","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":82,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"e76fc5a2-ce4c-460c-93d2-f64d1bc41081","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":82,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"cf8cd8ce-3dc3-43d9-b95e-bd2a494ce158","block_type":"box","text":"regulations in the PRC, eligible foreign investors are allowed to invest in the bonds circulated in the China Interbank","page_number":82,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"29e0bedf-5388-40dc-a140-3100efa7c730","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":82,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"f3bc71f8-e188-442a-8780-540468049f54","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":82,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"6dfce4b9-1897-4de2-88a4-40723843dd87","block_type":"box","text":"turn transmit their requests for quotation to CFETS. CFETS will send the requests for quotation to a number of","page_number":82,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"6ddea8f8-e06f-4b4c-a444-0e89985f8ed5","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":82,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"01bf9662-d637-4032-8221-a5ceaaa1dc55","block_type":"box","text":"The approved onshore dealer(s) will respond to the requests for quotation via CFETS and CFETS will send their","page_number":82,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"d8a53515-91ed-4d89-9c8d-faec98d8e9b3","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":82,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"e7ea5c25-b1bd-443d-a8bb-0df9a3e6285c","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":82,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"8fd087a6-e157-4888-bff4-959a724e794e","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":82,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"75a4afe8-c3b4-42b4-b59d-d03d71245256","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":82,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"d4f5c7b4-ef0b-4cb5-8c76-16361ed59f55","block_type":"box","text":"as onshore custodians and clearing institutions in the PRC. Under the settlement link, CDCC or SCH will effect gross","page_number":82,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"aa97ea15-a80f-4dbb-92c5-c5f35bd2b219","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":82,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"0e770204-9c41-4056-85a4-5b01b6a712ad","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":82,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"3f13dd0a-fb94-408e-9530-52ba6df29bdf","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":82,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"764cfa00-cba4-4634-a63d-e416c490978c","block_type":"box","text":"carried out simultaneously on a real-time basis. Pursuant to the prevailing regulations in the PRC, CMU, as the","page_number":82,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"2ac7a23f-bfc0-4ed4-a810-3d05e72078b7","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":82,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"b8753529-fb8b-4a59-bd71-15c1aef2159e","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":82,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"15f77c80-9b89-4414-a0f5-193059826bf7","block_type":"box","text":"i.e.","page_number":82,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"4fdeaf1d-d20e-4266-afd3-3a2e12e5bd27","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":82,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"5ce91248-155e-4c72-9820-36f05a0df5f2","block_type":"box","text":"eligible foreign investors through Bond Connect will be registered in the name of CMU, which will hold such bonds as","page_number":82,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"626776bc-cf3b-4ea9-b16a-185bd1e1ce3e","block_type":"box","text":"a nominee owner. Therefore, a Fund will be exposed to custody risks with respect to CMU. In the remote event of a","page_number":82,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"fe24156a-c513-42d6-8c2d-1b82c82928de","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing participants","page_number":82,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"c8bdf68c-b255-4ecc-b67a-cc4f2a8b69e8","block_type":"box","text":"will be limited to assisting clearing participants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":82,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"24781607-e850-4c38-b74d-1321f360dd27","block_type":"box","text":"delay in the recovery process or may not fully recover its losses from CDCC or SCH. In addition, as the relevant","page_number":82,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"c458e14d-9849-4cc5-ac7b-fef09b673a11","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third parties,","page_number":82,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"c9c237ff-5efe-435f-82da-6a3cd41698ef","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the part of such third","page_number":82,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"e6918725-47a5-46cf-af84-ba943208d9d4","block_type":"box","text":"parties.","page_number":82,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"f454411a-8cd0-498b-ba73-5fd148cb11b6","block_type":"box","text":"The precise nature and rights of a Fund as the beneficial owner of the bonds traded in the China Interbank Bond","page_number":82,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"a383f111-1d32-44df-a8ea-48e9993769fb","block_type":"box","text":"Market through CMU as nominee is not well-defined under PRC law. There is a lack of a clear definition of, and","page_number":82,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"4123bf14-785b-4478-b794-b237c9bf5193","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":82,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"8319aeb1-eedb-4a27-8d14-9af33872eb1e","block_type":"box","text":"II-45","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cb630c16-c4f3-43e5-a404-5c334cd5ae69","block_type":"box","text":"NM1026U-5993100-82/236","page_number":82,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5654ac0a-a213-4043-bb52-b5dd345e16e7","block_type":"box","text":"involving a nominee account structure in the PRC courts. The exact nature and methods of enforcement of the rights","page_number":83,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"82a4efdf-be4d-4445-8a6d-8203f4be98b8","block_type":"box","text":"and interests of a Fund under PRC law are also uncertain.","page_number":83,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"31eeb015-a6e1-47b7-a77f-16332463f433","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of certain bonds in the China Interbank","page_number":83,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"19c70ab1-219b-4fda-93d1-30a4ea4663ca","block_type":"box","text":"Bond Market may result in prices of certain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":83,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"e0d44acd-4fe6-46d6-9861-234504bcae7d","block_type":"box","text":"such market is therefore subject to liquidity and volatility risks. The bid-ask spreads of the prices of such securities","page_number":83,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"78eafe38-7a21-4446-a309-19412b0f931a","block_type":"box","text":"may be large, and a Fund may therefore incur significant costs and may suffer losses when selling such investments.","page_number":83,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"15c1d7bc-12c0-4d62-a72a-7ee07eea1763","block_type":"box","text":"The bonds traded in the China Interbank Bond Market may be difficult or impossible to sell, which may impact a","page_number":83,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"6ebb7b74-0390-4e36-8a9e-6afce777cbcb","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":83,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"4e91bec9-8057-47e0-8802-b22c2ff190bb","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":83,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"84dec05a-50f1-43d2-9120-c99a3ecc5b3b","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":83,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"90a871ce-a63d-4a66-8101-5bcedeee7288","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Furthermore, the securities regimes and legal","page_number":83,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"c5044dd8-a30c-425b-9aba-553bdcf1fc9c","block_type":"box","text":"systems of China and Hong Kong differ significantly and issues may arise based on these differences. In the event","page_number":83,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"45166181-1f28-408a-9a92-4535f1d168d6","block_type":"box","text":"that the relevant authorities suspend account opening or trading on the China Interbank Bond Market, a Fund’s ability","page_number":83,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"ff20db0f-b67a-4f15-ae0e-bdaf2c710847","block_type":"box","text":"to invest in the China Interbank Bond Market will be adversely affected and limited. In such event, the Fund’s ability","page_number":83,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"a49fa798-ca41-4364-9a5f-d0a168127559","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":83,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"a30263f8-1473-42fd-9ac0-3798e2c0460b","block_type":"box","text":"Fund may suffer substantial losses as a result. Further, if Bond Connect is not operating, a Fund may not be able to","page_number":83,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"082360ab-3b15-43e7-b514-f7714962c433","block_type":"box","text":"acquire or dispose of bonds through Bond Connect in a timely manner, which could adversely affect the Fund’s","page_number":83,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"6f9e9dd9-dd8f-4baf-b242-267a4d6554a5","block_type":"box","text":"performance.","page_number":83,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"d934c453-ad22-4775-8467-ddacf13ed799","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and operational systems.","page_number":83,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"7669558f-66aa-46f4-9ef1-f44346f35687","block_type":"box","text":"There is no assurance that such systems will function properly or will continue to be adapted to changes and","page_number":83,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"e4dc372c-cb5a-4e18-9dfb-1408750e9c11","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":83,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"fec0211f-741e-41ac-89c1-991b53b04f3c","block_type":"box","text":"Connect may be disrupted. A Fund’s ability to trade through Bond Connect (and hence to pursue its investment","page_number":83,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"ccea7c20-e85b-4e4e-9168-cfee774ed4a4","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":83,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"4bd6d80f-6a09-416e-a0a2-35f2405389d5","block_type":"box","text":"through Bond Connect, it may be subject to risks of delays inherent in the order placing and/or settlement systems.","page_number":83,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"db5265b0-4aa4-4f87-92d3-c6f98393d395","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":83,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"bdd2337b-8a36-4c60-a1c8-7266cdda93c6","block_type":"box","text":"convertible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":83,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"dc0fdc45-f4a8-42f7-9a6b-333cbd7b7e1e","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":83,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"14e4ff7f-9134-4cf8-abda-c8eb5761274c","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":83,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"63d66f89-ceca-4df8-b5f6-6747c0627771","block_type":"box","text":".","page_number":83,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"ca28232a-f64a-4492-b997-2f07d665b04a","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":83,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"7adbbcf6-a83d-4456-990b-5245fb3f69ff","block_type":"box","text":"interests from non-government bonds paid to a non-PRC tax resident enterprise, unless the rate is reduced under an","page_number":83,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"140c057b-db3e-42fd-b990-61b3106c8699","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":83,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"25ec8a06-55a1-48d0-b7c8-a0b1c6199248","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":83,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"edf98aeb-7bef-4689-962b-d9fb696069ff","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":83,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"02586b2a-4768-4110-986b-aa92148f84b1","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":83,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"a3ac9323-6d00-4fec-92d7-85ff5cf931c1","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":83,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"105ee2ac-c7e0-47ea-aab8-4f68f4b6e074","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":83,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"e094234e-cec7-4cf8-b35a-2a0f562900f5","block_type":"box","text":"(“RQFIIs”) from tax on capital gains derived from the trading of shares and other equity interest investments on or","page_number":83,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"7245f194-d2a6-4b4b-bfee-9fd14bed189b","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":83,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"7284e189-44f3-4cc2-855c-27ef2ae19ad6","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":83,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"79d9b359-033f-4040-bed1-405f85cae649","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":83,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"13550378-e2ec-44d7-a0d2-05c49457be7e","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":83,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"e0b8f622-2636-4945-8dfc-e76c6d5cbf36","block_type":"box","text":"temporary exemptions is not stated in the circulars and is subject to termination by the PRC tax authorities with or","page_number":83,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"0e14644c-27a8-4f5d-b9d6-f9789950ffab","block_type":"box","text":"without notice.","page_number":83,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"e3295079-4a39-4b29-a8be-147435a885a9","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":83,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"df4e8dec-9977-40a6-83ca-8ad1d326f4e8","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":83,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"e6a1b142-90da-41ad-a2c8-24c23c1de9a3","block_type":"box","text":"the PRC bond market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA","page_number":83,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"28b4c245-2bea-4afc-b5f8-8e468ce885f9","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":83,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"d035fae7-d9ed-4e1c-b79a-eddcba57bcf4","block_type":"box","text":"January 15, 2026, it was announced via Public Notice No. 5 of 2026 that the exemption was extended through","page_number":83,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"0c5c9812-4ac5-4bb9-9c5f-50d30ce93165","block_type":"box","text":"December 31, 2027.","page_number":83,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"3951394a-1997-4d50-a01b-c40725db84c6","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":83,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"35cf44b3-60ee-421e-bda3-ec680f90bc73","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the Fund, including","page_number":83,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"08f398ba-689e-4d13-b7d3-2122134dfe42","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":83,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"0c4b2b82-8c03-422c-bc86-9cf14b0ba5ea","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":83,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"c52838a3-194c-4e86-ad5a-b0cf9124e1cb","block_type":"box","text":"II-46","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bc361388-72e1-4da2-bbeb-df9f3f822541","block_type":"box","text":"NM1026U-5993100-83/236","page_number":83,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9f6225a1-2064-47c1-8d98-8179fd055568","block_type":"box","text":"VAT exemptions currently apply to capital gains from trading of QFII and RQFII products, A-Shares traded on the","page_number":84,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"a5ce5b2f-e14c-4fc6-bfd2-60c1fd484dd2","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":84,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"1cc7b42e-e9e7-4a52-b04d-2b31062e27e8","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":84,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"185db7ef-c864-429a-a1a1-0f5d31050bc6","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":84,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"cddd2bc7-2f92-4742-8e78-96f3482a571e","block_type":"box","text":"market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA jointly issued Public","page_number":84,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"c4243e7a-3df4-4cd1-ba30-ae029a2ea297","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":84,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"ca945db2-74de-40ff-9045-df62ee21af43","block_type":"box","text":"July 31, 2025, the MoF and STA jointly issued Public Notice No 4 of 2025, stating that VAT will apply with respect to","page_number":84,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"5be84474-d6de-444d-8666-22fd9046edbe","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":84,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"085f45fd-0cbe-4c50-979d-24b48340730c","block_type":"box","text":"August 8, 2025. It is understood that Public Notice No 4 of 2025 does not supersede the afore-mentioned exemption","page_number":84,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"312ef1bb-e4aa-47bd-be2c-4cb7a2b572ff","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":84,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"0d4a313a-0c44-4d31-ac9c-f675e08503c1","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":84,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"2b9f3ce7-6c18-46c6-81df-c006f3ae64d2","block_type":"box","text":"tax authorities may result in a loss which could be material to the Fund. There is a risk the PRC tax authorities may","page_number":84,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"a1cfd0ff-e5a2-46f6-83a0-e93877e43a3d","block_type":"box","text":"withdraw the temporary tax exemptions in the future and seek to collect taxes realized on the sale of A-Shares or","page_number":84,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"4f736cae-12be-44d6-8393-b42de96fd33c","block_type":"box","text":"PRC sourced interest income on non-government bonds received by the Fund without giving any prior notice. If the","page_number":84,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"c0bf3c06-4988-45a8-81ac-02277715e315","block_type":"box","text":"temporary tax exemptions are withdrawn, any taxes may be directly borne by or indirectly passed on to the Fund and","page_number":84,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"5791cc17-c43b-479f-a3e2-0809e1b92ec7","block_type":"box","text":"may result in a substantial impact to its net asset value. As with any net asset value adjustment, investors may be","page_number":84,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"0cadcecf-eafc-4d58-be96-e8c1dc4b2269","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":84,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"0a1f2783-7d77-42ff-80d6-027a7465e478","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":84,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"eb39a6a5-5283-4617-98d7-2b2f55396cf5","block_type":"box","text":"BlackRock will keep the provisioning policy for tax liability under review and may, in its discretion from time to","page_number":84,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"538f44ad-6380-493e-bbb5-55d9827bc420","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as further clarified by","page_number":84,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"3898cb08-4cbd-4dd2-8ac9-149a720c110a","block_type":"box","text":"the PRC in notifications.","page_number":84,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"86942bb4-a0ca-4ec3-9f1d-788a662d4bda","block_type":"box","text":"Investment in Other Investment Companies.","page_number":84,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"da8ccd17-b6ea-406c-b11f-c4378a946dc4","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":84,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"141c2ad3-f10e-47f0-aace-0d1e3648a7f7","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":84,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"258a0dc1-b268-4fbf-bd3d-9d812f60f5d2","block_type":"box","text":"market funds and ETFs, which are typically open-end funds or unit investment trusts listed on a stock exchange.","page_number":84,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"2200d797-d262-4cf3-9203-ff727a9b1945","block_type":"box","text":"Under Section 12(d)(1)(A) of the Investment Company Act, however, a Fund may invest up to 10% of its total assets","page_number":84,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"1383f9c9-2009-4edd-bedf-1d3caf21e018","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":84,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"3792a0e9-603b-4189-ba83-f7267c27ff73","block_type":"box","text":"12(d)(1)(A) of the Investment Company Act a Fund may not acquire securities of an investment company if such","page_number":84,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"d8223929-b59b-4008-8152-5dbd93b23ac5","block_type":"box","text":"acquisition would cause the Fund to own more than 3% of the total outstanding voting stock of such investment","page_number":84,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"86aeb59c-e31c-4264-a053-6c158e61c13e","block_type":"box","text":"company and a Fund may not invest in another investment company if such investment would cause more than 5% of","page_number":84,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"55bc3e7c-360a-4652-9106-5e801f5784ca","block_type":"box","text":"the value of the Fund’s total assets to be invested in securities of such investment company. (These limits do not","page_number":84,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"3f998f59-d84b-4065-9358-2f7cf6b26894","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Portfolio.) In addition to the restrictions","page_number":84,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"984978c5-8ef6-4171-984a-ff7655fe0fdb","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":84,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"dbdbe473-9f60-4dbe-8c55-1c0bf850149a","block_type":"box","text":"Act a Fund may not invest in a registered closed-end investment company if such investment would cause the Fund","page_number":84,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"cf9fc4bd-353a-40ca-9bce-b45b292e5693","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":84,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"b1b98148-e8ed-4d38-be08-25eec68f4d36","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":84,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"6609bc40-1928-4c15-ba6e-6af23d8f00f2","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":84,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"d1988550-8e39-4c04-bb7a-9d79d61b323c","block_type":"box","text":"certain conditions. In addition, a Fund may be able to rely on certain rules under the Investment Company Act to","page_number":84,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"4bd7de21-f5d7-46dd-88d4-8dfa86880819","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":84,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"0206957a-ad12-4468-870a-31cc456c5d55","block_type":"box","text":"subject to certain conditions.","page_number":84,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"c223a690-6b9e-4146-b6dd-2e0cb9205a7a","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":84,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"c0bdd93b-96a8-4f71-be46-805838395d43","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":84,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"e6c2149f-d470-4c47-8a1e-d983197a2dc1","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":84,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"631fd9fe-255f-40ec-bd72-a469c3684e21","block_type":"box","text":"held by a Fund that trade on an exchange could trade at a discount from NAV, and such discount could increase while","page_number":84,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"b178f9de-3529-42f7-91aa-de0c2693f3b3","block_type":"box","text":"the Fund holds the shares. If the market price of shares of an exchange-traded investment company decreases below","page_number":84,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"5fa3af9b-10e4-42d8-b3b0-be964e8cacbd","block_type":"box","text":"the price that the Fund paid for the shares and the Fund were to sell its shares of such investment company at a","page_number":84,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"aa21e5a9-5d9b-4397-82b7-55eafc7760cd","block_type":"box","text":"time when the market price is lower than the price at which it purchased the shares, the Fund would experience a","page_number":84,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"a4b5d611-149a-44ed-9028-bc0cc150ac88","block_type":"box","text":"loss.","page_number":84,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"5730dbfe-e7e3-4fdf-b6c8-cbd5d1830fe5","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":84,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"e8befdff-86dc-404d-9fda-77794928f37e","block_type":"box","text":"shareholders would bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":84,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"e2456888-3aca-4978-825e-31aed2fab071","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":84,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"f0a9f6b9-1690-4175-a3a7-ff7fc93b4411","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":84,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"29d7aee8-119b-455f-8a78-dd824a15d1cb","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":84,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"b5510db9-ccc9-479f-a040-723eaa4378e6","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of certain countries will not be","page_number":84,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"10377ced-badf-4a79-8e48-c690a17fbe10","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":84,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"c1903a0f-e35c-4c94-a038-33b0ee3a8ccf","block_type":"box","text":"II-47","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2a066791-d4a2-41d9-baba-9bb660cc07bf","block_type":"box","text":"NM1026U-5993100-84/236","page_number":84,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e9bfd27b-e33a-441b-97de-cdfee189d326","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":85,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"22937e10-8449-4769-8d51-9a1d93785fff","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":85,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"04287d48-8eed-4a5e-817c-01de5851d156","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a portion of its","page_number":85,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"d9f105e3-64e0-404a-b07b-f3ef0705433b","block_type":"box","text":"assets.","page_number":85,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"ad0f74b4-2ffa-4b57-8de7-77c103d6f6ff","block_type":"box","text":"To the extent shares of a Fund are held by another fund, the ability of the Fund itself to purchase other funds","page_number":85,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"f4479194-4acc-45f9-aac8-df2d5f96c5c5","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":85,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"e4826eb0-a908-42be-a3cc-795c95982746","block_type":"box","text":"e.g.","page_number":85,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"de4b27c8-f661-4194-a2db-a2339212ebed","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":85,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"43c16205-e56a-4fe7-b44c-556b1b5f8b32","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":85,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"ddc6e587-4d1a-4f73-a1b8-15f39dec0dd2","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":85,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"7d8b2ed5-0d1d-4840-863c-e4b43dd61b5b","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":85,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"0d719738-2b83-4b32-9e22-406a8632e5c0","block_type":"box","text":"investment in developing countries, and certain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":85,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"fbc806bc-de5e-4e71-b10d-266170d849b6","block_type":"box","text":"have specifically authorized such funds. There also are investment opportunities in certain of such countries in","page_number":85,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"0e281329-7012-4345-84df-2c8bf6044de1","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":85,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"1e436575-dd76-4291-bce5-ca9e84eaadbb","block_type":"box","text":"investment companies set forth above may limit opportunities for a Fund to invest indirectly in certain developing","page_number":85,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"94e6a031-0ea0-4502-875d-43ccfe39c0ab","block_type":"box","text":"countries.","page_number":85,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"b6858349-c1a7-4340-a6b4-5ff59e477311","block_type":"box","text":"Issuer Insolvency Risk.","page_number":85,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"aab5af5d-cec3-4b60-a00b-221c0b6e58d0","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":85,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"f4be8a98-8ad1-4d59-ad7a-603cdeee785c","block_type":"box","text":"a high degree of credit and market risk, which may be heightened during an economic downturn or recession. Should","page_number":85,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"2ae4bcbe-6d2f-480c-865b-2e6ce58068c3","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":85,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"98ea46b9-5d1d-4647-90c3-bb7fe8d45db3","block_type":"box","text":"restructuring, a wide variety of considerations make an evaluation of the outcome of the Fund’s exposure to the","page_number":85,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"140f424e-fdb4-4a8f-8d01-8d723a40abfa","block_type":"box","text":"issuer uncertain.","page_number":85,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"a1325b30-c4d9-4950-862b-f31883be6461","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":85,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"324543ce-a236-455e-a1c8-9bc65a558c3f","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncertainty as","page_number":85,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"b6e36ccf-96fe-4418-ac6e-b384e6e6d074","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear certain extraordinary","page_number":85,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"ea777eae-c06c-4250-bc01-f79795cf0598","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncertainty as to when and","page_number":85,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"9215aa50-8ff6-4530-9739-bd651ccc7b5e","block_type":"box","text":"in what manner and for what value the obligations evidenced by the securities of the issuer held by the Fund will","page_number":85,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"7ecfce7b-c400-4cf5-8997-482865b0330d","block_type":"box","text":"eventually be satisfied.","page_number":85,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"9dd708d1-39cb-4b44-8023-ee5c3c39f353","block_type":"box","text":"Even if a plan of reorganization or restructuring is adopted with respect to the securities of the issuer held by the","page_number":85,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"2879923e-ea0f-4a79-b82a-9400c1c7d3ee","block_type":"box","text":"Fund, there can be no assurance that the securities or other assets received by a Fund in connection with such plan","page_number":85,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"88d9414a-c72c-404b-9b89-dce4fd772ea4","block_type":"box","text":"of reorganization or restructuring will not have a lower value or income potential than may have been anticipated or","page_number":85,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"76808660-8c80-42f0-8ade-09ddfeba40ef","block_type":"box","text":"no value. A Fund may be unable to enforce its claims or rights in any collateral or may have its claims or security","page_number":85,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"44f69e93-5aad-4928-b6b8-3e6f935eedfc","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":85,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"fc4a7dd5-fc5b-498c-a02c-8d1d9caa09f8","block_type":"box","text":"In addition, amendments to the U.S. Bankruptcy Code or other relevant laws could alter the expected outcome or","page_number":85,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"1345810b-1481-41e6-9cec-85f98641c893","block_type":"box","text":"introduce greater uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":85,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"46fb0f1c-826a-4441-b44f-443db4c7266d","block_type":"box","text":"proceeding, a reorganization or restructuring, the securities of the issuer held by a Fund could be re-characterized or","page_number":85,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"d228e1a8-2944-4c64-83b1-c6a85a2aaa1b","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":85,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"9b67d282-c036-4728-8642-64e1f601e206","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including convertible preferred stock); bonds, notes","page_number":85,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"5e517305-26dd-4190-a16b-7aa1975c065e","block_type":"box","text":"and debentures convertible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":85,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"78e2c966-bc85-435f-89fb-637dfdf66ff3","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":85,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"3ec73ab3-2159-4930-bb1a-3b233a53c840","block_type":"box","text":"volatile than those of other asset classes. Holders of equity securities are subject to more risk than holders of debt","page_number":85,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"1d6301d0-3b9a-4f5f-9bd3-35c2528c213c","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":85,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"1fbf8200-a196-42e2-bebf-e88979a0abff","block_type":"box","text":"value of equity securities received by a Fund could decline if the financial condition of the issuer deteriorates or if","page_number":85,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"a3a915ff-49a4-4537-baf9-5c96ff70a7e4","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":85,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"2dc2b7c3-1c14-4107-8b64-bb6773fda287","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":85,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"24edabc1-3ca5-459a-9745-3804bbdf84f1","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":85,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"95b32250-65f0-4d17-b89d-0b326cf55c84","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as part of a","page_number":85,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"69350017-4763-4def-9922-8270149286c7","block_type":"box","text":"workout agreed to by a consortium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":85,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"2b700d7a-7aec-4862-932e-3842cfea2996","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":85,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"760d4a79-1b1f-4237-ac2a-5ad23a5a61fb","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":85,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"93fe48b1-ce93-4502-8fc6-b3ce2018d6c5","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":85,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"aade72f3-e3b3-4004-a4be-239ce49b4503","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":85,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"4025d330-f1c8-4777-a8f5-47600edc85d5","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":85,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"7349ab70-8292-4ea4-b1c9-ae43ff45b530","block_type":"box","text":"participates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":85,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"ef315c2a-3875-4a1f-b4f5-f8d18ae5cc65","block_type":"box","text":"issuer held by a Fund, the Fund also may be restricted from disposing such securities for a period of time. If a Fund","page_number":85,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"0a509614-f54d-411c-8081-a3220be792f5","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active participation in the affairs of the issuer than","page_number":85,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"ec187647-c778-4a7b-936a-523ff25b4821","block_type":"box","text":"that assumed generally by an investor.","page_number":85,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"500733c7-ffd4-4f20-88a7-51b150002fd7","block_type":"box","text":"II-48","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3f6e5449-300c-483c-bd7b-efd841b2d70e","block_type":"box","text":"NM1026U-5993100-85/236","page_number":85,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c0603130-353c-4def-8dec-3eb6165f6d3a","block_type":"box","text":"Lease Obligations.","page_number":86,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"00173bb1-4f12-4857-aa57-d86774a9a5ad","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase contract, or a","page_number":86,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"4efbf428-41d6-4268-ae98-9ea284099369","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":86,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"ec7ffc2f-da5e-4bac-9548-501495460603","block_type":"box","text":"each entity providing credit support and/or a put option relating to lease obligations.","page_number":86,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"d8e33007-88ae-47c8-8ea5-1d5c8f9af6c1","block_type":"box","text":"Life Settlement Investments.","page_number":86,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"b4b556d6-06b2-4e15-8e61-0672e63df8b1","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties, such as the","page_number":86,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"b927a783-4ccf-4116-849a-06248fa634b6","block_type":"box","text":"Fund, of existing life insurance contracts for more than their cash surrender value but less than the net benefits to be","page_number":86,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"51df3029-8351-4038-bc01-6412b3954aef","block_type":"box","text":"paid under the policies. When a Fund acquires such a contract, it pays the policy premiums in return for the expected","page_number":86,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"9217a98f-5ec8-4fe7-bef3-9ea81c6de56d","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve certain risks,","page_number":86,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"00aa55df-ca68-4641-874d-29ec87b64199","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":86,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"a8abfab3-69ac-43b8-8caf-5f6fbd09b4fc","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":86,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"be18ed64-5123-43fc-b003-6b9f5525bfae","block_type":"box","text":"secondary market through life settlement agents. Also, in the event of a bankruptcy of the insurance carrier for a","page_number":86,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"6ccea75f-0949-46ea-9d42-303c5812463e","block_type":"box","text":"policy, the Fund may receive reduced or no benefits under the contract. A Fund seeks to minimize credit risk by","page_number":86,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"fe4dc5cf-d2ea-44d5-a940-1e4b7413aac5","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund may encounter","page_number":86,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"0a23f8ca-9e37-462d-ae27-54360cbea4fc","block_type":"box","text":"losses on its investments if there is an inaccurate estimation of the life expectancies of viators. A Fund intends to","page_number":86,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"5403a886-b025-4ce5-b9ce-d109110f31ad","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":86,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"93c3f078-0045-4b9a-8cf5-17998f4c141d","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":86,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"11fde220-0b10-4223-b1dd-e10fa0a13834","block_type":"box","text":"addition, it is unclear whether the income from life settlements is qualifying income for purposes of the IRS 90%","page_number":86,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"546cef2f-41c7-4ca0-b168-83adf8f5464b","block_type":"box","text":"gross income test a Fund must satisfy each year to qualify as a regulated investment company. A Fund intends to","page_number":86,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"74f3888f-a2fc-4f3f-a06d-2d78a09b495e","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":86,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"d9d64dab-3f98-43de-9586-dcb026ddbf2f","block_type":"box","text":"Liquidity Risk Management.","page_number":86,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"09ad0c19-a07b-4ec2-9b9d-23839ee8c089","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":86,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"e6229a01-6cb2-4206-b120-3d33b17c0cde","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":86,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"8e39f767-5801-4ba0-98d2-a75ce719f023","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":86,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"32d5a885-f0ab-4271-9fbb-a416eaefc1ef","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":86,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"e2998815-35d0-4888-8e50-626ff2c65252","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":86,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"90c565f4-81fb-41a4-9253-c85fef0ebb7c","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":86,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"e66b2a53-5bca-479b-b76e-df3a5f6136d7","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":86,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"5676896e-332b-4d13-8230-b79bfa75005b","block_type":"box","text":"“illiquid investment.” The Liquidity Rule defines “liquidity risk” as the risk that a Fund could not meet requests to","page_number":86,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"c813a85b-dc0d-43c0-910c-309f68e5eaf1","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":86,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"59222ea6-e957-4ce8-af93-509aeebdd398","block_type":"box","text":"liquidity of a Fund’s portfolio investments is determined based on relevant market, trading and investment-specific","page_number":86,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"7bba80a5-0acf-4f91-8046-660f536c8eee","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":86,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"4decd0c6-1bed-4d50-bcc9-1791a1293af0","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":86,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"98d85c42-e505-4940-bcfd-8960eaacc08e","block_type":"box","text":"Master Limited Partnerships.","page_number":86,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"0df3eb0c-398a-4976-bae9-98de19e739a6","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships (“MLPs”)","page_number":86,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"a3419edb-19ef-4a33-bed6-5ecf17bc6f0e","block_type":"box","text":"which are limited partnerships or limited liability companies taxable as partnerships. MLPs may derive income and","page_number":86,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"d4b8c13c-d100-4be9-a37b-f54d096b8a17","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transportation (including","page_number":86,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"451de065-52ff-4345-8eb0-b08f83b1c600","block_type":"box","text":"pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":86,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"39ae248c-5271-4e00-addb-d0c336b9ccc9","block_type":"box","text":"generally have two classes of owners, the general partner and limited partners. When investing in an MLP, a Fund","page_number":86,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"50325cd6-b75e-4611-93d6-711ebe484559","block_type":"box","text":"intends to purchase publicly traded common units issued to limited partners of the MLP. The general partner is","page_number":86,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"02122157-0ca1-4550-b272-591ee508985c","block_type":"box","text":"typically owned by a major energy company, an investment fund, the direct management of the MLP or is an entity","page_number":86,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"dc10ad88-a3a7-4e9c-99a7-f50e2e7fe8a7","block_type":"box","text":"owned by one or more of such parties. The general partner may be structured as a private or publicly traded","page_number":86,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"1379fd68-0c32-49d5-bea1-4a6a1bfef9cf","block_type":"box","text":"corporation or other entity. The general partner typically controls the operations and management of the MLP through","page_number":86,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"535401de-260b-43bc-97b4-b225863c9c9f","block_type":"box","text":"an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units.","page_number":86,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"6d55df92-b91a-4e43-abbe-aba4626617a7","block_type":"box","text":"Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role","page_number":86,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"284e6341-2001-4299-a0dd-8ce7b8eea129","block_type":"box","text":"in the partnership’s operations and management.","page_number":86,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"6c900df1-7406-4b1f-9695-23500e192371","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to receive","page_number":86,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"79288701-9d12-41ab-abca-9fc4ff9a4a3d","block_type":"box","text":"quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”).","page_number":86,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"b8dcf2ed-b835-4998-be82-bef368dcfae8","block_type":"box","text":"Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":86,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"89d2721b-b215-4390-b06d-db0a393e21bc","block_type":"box","text":"Once common and general partner interests have been paid, subordinated units receive distributions of up to the","page_number":86,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"7c9a26c6-2c8d-4a50-a418-a10ce8da48e8","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":86,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"01ffa5ce-672a-4dfd-9726-d29913569178","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":86,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"0288435f-b4e2-40ac-a291-344975d9828c","block_type":"box","text":"The general partner is also eligible to receive incentive distributions if the general partner operates the business in a","page_number":86,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"55a698ab-2daf-47ae-8382-046b06b01416","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general partner","page_number":86,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"84338417-6e1f-43a4-8f62-4bdd504945e5","block_type":"box","text":"increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of","page_number":86,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"7f6e9e6e-0824-42a5-be71-9956a071e9f8","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where","page_number":86,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"1bf9e281-1b28-4502-92b8-5f01df69ee91","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":86,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"7328323f-03ed-41b0-9284-51ceead295e4","block_type":"box","text":"distributions encourage the general partner to streamline costs, increase capital expenditures and acquire assets in","page_number":86,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"17faa2d6-33a2-49fa-9e7d-97f82fcfb9d3","block_type":"box","text":"order to increase the partnership’s cash flow and raise the quarterly cash distribution in order to reach higher tiers.","page_number":86,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"e5c81027-37a0-4ca8-8617-5dd36994f959","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":86,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"86fc96e4-5498-4921-b5bc-d32e7b6f08f5","block_type":"box","text":"II-49","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1c1eb103-b0ab-4754-b20a-11c170b1c032","block_type":"box","text":"NM1026U-5993100-86/236","page_number":86,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"58c99a36-d718-44dd-bb8f-47b4a580ac1f","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and traded on","page_number":87,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"eb3c68e5-9c76-4f96-8340-9edac16aedea","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":87,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"b0986dd6-1f7b-4d70-8e27-fa4921388a08","block_type":"box","text":"success of the MLP. Certain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":87,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"d1793885-9a59-40ce-821f-a46c43b1fe3b","block_type":"box","text":"common stock of a corporation, owners of common units have limited voting rights and have no ability to annually","page_number":87,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"2c15b9c0-634a-4524-9d80-9b5ddfb76783","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":87,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"0037265d-8454-40b0-8060-406c95038ea3","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":87,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"b0fb467c-4bb0-4e1e-96e6-9f10a1c632db","block_type":"box","text":"Merger Transaction Risk.","page_number":87,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"7a0e8b83-7cfe-41ef-baa7-1ba410b1c255","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":87,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"462454c8-3776-4c9b-b004-52b004aaa4aa","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":87,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"1172c080-9632-4e29-93eb-27e71d80aba7","block_type":"box","text":"in cash, stock of the acquiring company or a combination of both) in excess of the purchase price paid by the Fund","page_number":87,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"b34610e6-5b32-4c9f-82a5-f78417f093f7","block_type":"box","text":"for the target company’s stock. However, a Fund is subject to the risk that the merger transaction may be canceled,","page_number":87,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"2f2b2452-0214-411d-a4b6-3e93992ffc27","block_type":"box","text":"delayed or restructured, in which case a Fund’s holding of the target company’s stock may not result in any profit for","page_number":87,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"48995826-5fe4-4f83-b79c-0ac8784eed6b","block_type":"box","text":"the Fund and may lose significant value.","page_number":87,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"438739da-5790-4089-9d6c-078db70e490c","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":87,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"cd8214fd-7dfd-477d-b42d-a4b43e8b4337","block_type":"box","text":"Certain","page_number":87,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"02e8614d-84ae-4e86-a160-b3a8278f5294","block_type":"box","text":"Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’ acceptances and time","page_number":87,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"78306a54-22c6-4566-9215-f144176953ae","block_type":"box","text":"deposits, including instruments issued or supported by the credit of U.S. or foreign banks or savings institutions","page_number":87,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"9015dadc-0d45-4323-8132-6507c966caab","block_type":"box","text":"having total assets at the time of purchase in excess of $1 billion. These obligations may be general obligations of","page_number":87,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"9b3ff6f3-101a-4773-a48c-599a6547facf","block_type":"box","text":"the parent bank or may be limited to the issuing branch or subsidiary by the terms of a specific obligation or by","page_number":87,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"c0018538-03f6-4b81-ba14-0f76fd15c98e","block_type":"box","text":"government regulation. The assets of a bank or savings institution will be deemed to include the assets of its","page_number":87,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"841b65f6-63f2-4d73-a58a-b5955b57720f","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in short-term bank","page_number":87,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"7c15bc4a-8aac-40e5-ace0-c74c1f83493b","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":87,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"b1cd93f1-8c49-40f6-b5e7-1b8ffe87f10b","block_type":"box","text":"branches of domestic banks.","page_number":87,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"94e3983b-17d8-41cb-99d6-6d948fdf0a7a","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":87,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"a7c1cb8b-394a-4d5e-862e-30e15e27ac64","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":87,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"78e5b1fa-432a-4ece-af99-7b497d6cd29a","block_type":"box","text":"Canadian counterparts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":87,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"2caadf78-9db3-4dbb-8908-ddef045ac9f0","block_type":"box","text":"paper of a foreign issuer.","page_number":87,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"e634473b-8a17-4dd9-a81e-27f8fd07d8b3","block_type":"box","text":"Money Market Securities.","page_number":87,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"1159448c-cb31-4915-b618-ad28653b14be","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S. dollar","page_number":87,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"396478b7-0625-4c62-a007-0c6e01683c8f","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":87,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"c7fef8e6-7dca-4165-a181-b8c52b70dfc4","block_type":"box","text":"money markets. In particular, the Funds may invest in:","page_number":87,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"12d2bb14-ce9d-4996-85af-e2ea959c9fb7","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks or savings","page_number":87,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"b8a29c26-91ab-4f3f-acc3-9537edb7e105","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":87,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"4f2c45ba-8446-4b5a-adc1-8758a672bd29","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":87,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"03b589db-b713-48d8-8be3-9fbaf2d5b3fa","block_type":"box","text":"other issuers rated (at the time of purchase) A-2 or higher by S&P, Prime-2 or higher by Moody’s or F-2 or higher","page_number":87,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"2ed35e74-4a4d-42d2-b86b-7dac59798ab2","block_type":"box","text":"by Fitch, as well as high quality corporate bonds rated (at the time of purchase) A or higher by those rating","page_number":87,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"f8632427-c465-4865-877c-e6c68f81aefe","block_type":"box","text":"agencies;","page_number":87,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"e5246766-ac81-40c2-a113-eb364db839bd","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":87,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"243fb2a1-3793-43dd-8811-8a55e8992fb8","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":87,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"b7739c6e-07c7-439f-b6e3-d61d5d3ea10b","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment purchase","page_number":87,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"5fffdc74-2764-4d93-b3f2-9e891ed7bb51","block_type":"box","text":"obligations and credit card receivables);","page_number":87,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"8c105fdd-2bcf-45e0-8ee5-c56765860581","block_type":"box","text":"(e) securities issued or guaranteed as to principal and interest by the U.S. Government or by its agencies or","page_number":87,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"a192269e-e4b1-4544-ae61-06e84f53fe40","block_type":"box","text":"authorities and related custodial receipts;","page_number":87,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"786cc176-2ab7-4476-8617-2c97fff15b75","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":87,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"099e9497-11db-4a74-b2dd-ade9c6ca1065","block_type":"box","text":"agencies or authorities;","page_number":87,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"49f46c4e-39bf-4e8f-8c59-5fd6714a08d7","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":87,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"f2e98338-f0f5-48c8-84f5-8c344ce5fbb8","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":87,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"6b48f395-7853-4aa4-9f15-5c08da11970e","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":87,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"24cd2024-1aee-4cb3-bcc0-6070ec57ea9d","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":87,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"88f920c5-5c4b-4b3a-b619-172c21730568","block_type":"box","text":"one of its agencies or authorities or which otherwise depend directly or indirectly on the credit of the United","page_number":87,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"69e3a295-a803-4c9a-91d7-4e97cde3bc3c","block_type":"box","text":"States;","page_number":87,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"5b77b8c3-c7ba-44fd-b32f-782a94a66067","block_type":"box","text":"(k) fixed and variable rate notes and similar debt instruments rated MIG-2, VMIG-2 or Prime-2 or higher by Moody’s,","page_number":87,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"c1a6ee2b-db9c-40d6-a071-6d9d53722970","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":87,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"4a7b70cf-2a97-4498-aab6-0508da33b8e5","block_type":"box","text":"(l) tax-exempt commercial paper and similar debt instruments rated Prime-2 or higher by Moody’s, A-2 or higher by","page_number":87,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"4286a750-a0ed-404f-b1aa-c1592ce2b72a","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":87,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"adcca5b0-87f0-423e-8d8a-2b29a8a0f2f1","block_type":"box","text":"II-50","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"469ee0eb-f880-42a6-9656-803b44c39f54","block_type":"box","text":"NM1026U-5993100-87/236","page_number":87,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8ca2f332-ac92-4436-a074-1d1f0591c3d1","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":88,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"b7b3e9a9-dfc0-4cce-a27f-90a264e20c01","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":88,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"ea7c5c35-0aca-4083-a8e6-98861fb96aca","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":88,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"99d3c369-df82-4f5f-926e-b02f3af13311","block_type":"box","text":"(o) municipal bonds and notes which are guaranteed as to principal and interest by the U.S. Government or an","page_number":88,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"1eb6bf03-3e2c-48dd-8ef3-b78e8d54938b","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":88,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"3f74a70f-ff8a-4446-befc-ad437b047056","block_type":"box","text":"States.","page_number":88,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"4ef8bf47-a2f7-44e0-b901-f58220a3a650","block_type":"box","text":"Mortgage-Related Securities.","page_number":88,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"3823562f-8fd4-4532-b476-cf5269de5bd2","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":88,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"efcc6b9e-3b25-4201-9398-a709d852fab0","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in which","page_number":88,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"456da116-6d2a-42e0-ba61-22323d1a8b0c","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":88,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"733d7646-7df8-491d-8135-95f90c2d5c91","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mortgage loans that underlie the securities","page_number":88,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"4b451c22-254d-471d-96cd-e1d2477960c2","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mortgage-backed securities differ from other forms","page_number":88,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"81999635-9a65-4691-b277-6c64ebf52e19","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":88,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"19ff1fb9-4efb-419f-aaf5-bb296e551e05","block_type":"box","text":"maturity or specified call dates.","page_number":88,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"72bc7788-18ce-471e-87f7-9674636d2e50","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":88,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"ee01e7b2-43dd-462d-85e5-bbae1e6c648c","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mortgages relates declines. In","page_number":88,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"d7d3efba-be12-4c6c-a24b-ae2b63eae9f3","block_type":"box","text":"addition, investments in mortgage-backed securities involve certain specific risks. These risks include the failure of a","page_number":88,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"2868e015-824a-4ac5-8582-cc20ffa36b6d","block_type":"box","text":"party to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":88,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"a8b2903e-1c75-4ef2-b7d0-82abc57e58ac","block_type":"box","text":"of prepayments on mortgage cash flows. Mortgage-backed securities are “pass-through” securities, meaning that","page_number":88,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"77697679-0300-46fa-8692-1b962fc45e24","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":88,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"0c4a59f0-7b1a-4046-a76e-6eda875b6f8a","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly sensitive to changes","page_number":88,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"7ba3e958-7905-4c5a-9d60-6ba62670c72d","block_type":"box","text":"in prevailing interest rates, and, like other fixed income investments, the ability of a Fund to utilize these instruments","page_number":88,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"e35ccd6b-18eb-4501-a3bb-4ce0a7a4cdc1","block_type":"box","text":"successfully may depend in part upon the ability of the Manager to forecast interest rates and other economic factors","page_number":88,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"1caaa4ae-af34-447f-a7a8-0ad5a12c7fd5","block_type":"box","text":"correctly. The value of mortgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":88,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"6a48dae8-5e64-453a-bb9d-6519625abeb2","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mortgage-backed securities differ from","page_number":88,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"24bfe53b-08c6-4e9d-88b1-872f940e71bf","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":88,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"9d84bf04-7425-403b-a404-b2f88b780339","block_type":"box","text":"for its mortgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":88,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"bc674e46-8a4e-4149-b351-a8de38af3b1e","block_type":"box","text":"average life of the securities are based on a number of factors, including the anticipated rate of prepayment of the","page_number":88,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"3ed6e024-ae4b-47e2-b0a0-3d28dc977104","block_type":"box","text":"underlying mortgages. In a period of declining interest rates, borrowers may prepay the underlying mortgages more","page_number":88,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"2ba7959a-8648-46f6-8591-db58bc38e010","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mortgage-backed","page_number":88,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"8db5e67c-1e12-4ac2-a9d5-9096caecf17b","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":88,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"64b0a952-46d7-4508-ace9-e0b057e57abd","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":88,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"15552aa4-28e0-47c5-891e-e92f0be15933","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures and","page_number":88,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"50b7dc89-dfff-4a1f-a2c4-627a7464c2da","block_type":"box","text":"principal prepayments may result in a loss to the extent of the premium paid. If a Fund buys such securities at a","page_number":88,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"85dcb7ff-fa78-46cd-a97a-843f0432b9db","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":88,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"0cc2d410-a2b4-4151-8572-997ab6b6cfa2","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":88,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"8253dc94-5082-4f8c-aaba-c18a4a27d586","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mortgages may occur at a slower than","page_number":88,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"f5559cfa-e161-479d-8ca5-7c10ca7762ba","block_type":"box","text":"expected rate, creating maturity extension risk. This particular risk may effectively change a security that was","page_number":88,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"a35f0433-a6d8-4098-a8ac-719bc66fc91f","block_type":"box","text":"considered short- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":88,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"f9129e99-ab16-4d35-bb27-cffd880885af","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shorter-term","page_number":88,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"6cadbbe2-393d-4954-88ac-16aeb64b65d7","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":88,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"2242f99d-ffd3-4d15-bb13-c47acee44e54","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities notwithstanding","page_number":88,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"cdce9113-348f-4858-a75e-b017aea1a315","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":88,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"9ec61aaf-439d-428f-be76-b4e66de17834","block_type":"box","text":"There are currently three types of mortgage pass-through securities: (1) those issued by the U.S. Government or","page_number":88,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"a4bf3413-cada-4d2b-a671-a3137b4d4497","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mortgage Association (“Ginnie Mae”), the","page_number":88,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"7e859377-059a-4fd7-90b3-94ba892e8000","block_type":"box","text":"Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie","page_number":88,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"2ffd9642-967c-4f72-b317-48fa8c1233b9","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":88,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"7a41c268-6798-41a3-aad7-e66b9e87e5ec","block_type":"box","text":"securities issued or guaranteed by the U.S. Government or one of its agencies or instrumentalities; and (3) those","page_number":88,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"a4d1d010-40a5-4487-ba9e-5e8383dbf433","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mortgage loans or pass-through","page_number":88,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"3f5e24d2-939e-4a65-849c-6e1fc6b2d751","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":88,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"e77ac79a-6071-49bc-b6c2-1b88ea8f415f","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and Urban","page_number":88,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"d1042fc8-59bd-4ffe-9224-526c6315a2b1","block_type":"box","text":"Development. Ginnie Mae is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely","page_number":88,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"329bf55f-6ce9-4d67-bc15-b4c07af0a83d","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":88,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"2b74f5e6-35f0-46c2-8f6d-5fdfa24e33d8","block_type":"box","text":"and loan institutions, commercial banks and mortgage banks), and backed by pools of Federal Housing","page_number":88,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"7ea69b24-c295-4f24-b502-9dc1738c24ac","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mortgages. Pass-through certificates","page_number":88,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"45fa89c7-c3ed-41cd-ab0c-4977c147305e","block_type":"box","text":"II-51","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2e4430c9-e98c-4dc2-8623-a84c0aa00c7f","block_type":"box","text":"NM1026U-5993100-88/236","page_number":88,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"90a353ab-4e46-45e6-9f00-29bf3d049dd9","block_type":"box","text":"guaranteed by Ginnie Mae (such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":89,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"9a8b9df5-4d05-46ac-8739-a6e82ae55f05","block_type":"box","text":"payment of principal and interest by Ginnie Mae, whose guarantee is backed by the full faith and credit of the United","page_number":89,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"aa115cc0-3ac6-4c0b-8c61-1df1a1688ef6","block_type":"box","text":"States. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":89,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"7008e208-0953-4c37-824a-daf8c456c2e3","block_type":"box","text":"Treasury Department to make payments under its guarantee. Mortgage-related securities issued by Fannie Mae","page_number":89,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"6115c784-0267-49b3-9272-f18cff45d796","block_type":"box","text":"include Fannie Mae guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”), which are","page_number":89,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"05290fb4-569e-4663-9c22-91b548d8ef10","block_type":"box","text":"guaranteed as to timely payment of principal and interest by Fannie Mae. They are not backed by or entitled to the full","page_number":89,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"150bc67a-dd95-4487-94fc-57539eeb21b4","block_type":"box","text":"faith and credit of the United States, but are supported by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":89,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"20e9a54f-1405-4271-a2ac-4b67b3085e31","block_type":"box","text":"Department. Fannie Mae was established as a federal agency in 1938 and in 1968 was chartered by Congress as a","page_number":89,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"c19e9d48-852c-41ca-873f-8d262892a840","block_type":"box","text":"private shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":89,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"4c310633-5568-4fe3-82cd-c8de254a26c8","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":89,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"d732ed5f-aa24-4a6b-9053-970f071ae728","block_type":"box","text":"corporation chartered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":89,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"0f22b542-ee1e-40db-a6f0-0cc48210c358","block_type":"box","text":"Home Loan Banks and do not constitute a debt or obligation of the United States or of any Federal Home Loan Bank.","page_number":89,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"47f787d8-8eb9-4a44-811f-ce85f0bad550","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":89,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"92f32d69-d679-4839-9ef5-a8da68fc1a0c","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans.","page_number":89,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"2e5adb2f-1c4f-4ed2-8158-abcf70172e9d","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":89,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"9d8430ae-cab4-4fde-adaf-7d4c780469b5","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mortgage, but","page_number":89,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"efc84f59-fc9e-435f-aa3a-bfdced4c1b13","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":89,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"cda5d119-bcf4-4933-986e-22dcedd2510f","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":89,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"cc64fe95-2ece-4fcf-9892-f4cf6244134c","block_type":"box","text":"mortgage pass-through securities and are issued by originators of and investors in mortgage loans, including","page_number":89,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"86f9992b-e326-41f0-8523-42aaa560020f","block_type":"box","text":"depository institutions, mortgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":89,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"4bfa02b8-794d-4b39-8361-d2ea0833ab9b","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than government","page_number":89,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"bcdee480-6ddb-4c19-89d3-b9d5d350adfc","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":89,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"edf0ab0d-669d-4094-a3c8-a9dd469b7a31","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be supported by various","page_number":89,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"be4920c4-b926-4bfd-8ec3-97f594637dcb","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":89,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"153ed483-7c86-46f5-aef2-65a4d638eec0","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mortgage poolers. The","page_number":89,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"71848861-db3a-4f72-bb0d-d03aa51e2e09","block_type":"box","text":"insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether","page_number":89,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"117bca51-13a1-49ce-97ba-c7b9db98c886","block_type":"box","text":"a mortgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":89,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"086c3db3-f557-401e-b149-dd8eee26ba74","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":89,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"4114c912-7185-4b00-b51a-0d22033e7c1b","block_type":"box","text":"mortgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":89,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"495a7892-9f59-4bec-8492-27f9ebf8f5c3","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":89,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"797e8c79-473b-4a6b-9dcd-577ed54ceb12","block_type":"box","text":"meet a Fund’s quality standards. Any mortgage-related securities that are issued by private issuers have some","page_number":89,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"325226a1-c6e0-4202-bfbb-9dcc88b88f88","block_type":"box","text":"exposure to subprime loans as well as to the mortgage and credit markets generally.","page_number":89,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"f27dfff7-1da1-4723-a2e0-2c0ed792c8aa","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":89,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"81829d4c-68f5-4299-a874-c68a92c505d9","block_type":"box","text":"requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a","page_number":89,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"2bd063c6-075b-4eeb-a0d5-55da9801f95b","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage","page_number":89,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"45df7505-6337-4ad7-9660-72f4ac2393d7","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":89,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"ae5af682-b120-4778-aca1-2d5c18225bac","block_type":"box","text":"characteristics than government or government-sponsored mortgage-related securities and have wider variances in a","page_number":89,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"abb3810c-ffd2-4b11-ac09-fcd7503c90e4","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":89,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"afd944ee-55f3-4e9f-b595-6d4dc123d39e","block_type":"box","text":"frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon","page_number":89,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"f9230a7e-65d0-4f08-9879-5d0f54e6dead","block_type":"box","text":"rates and maturities of the underlying mortgage loans in a private-label mortgage-related securities pool may vary to","page_number":89,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"2b7226bb-eb8c-4345-91ac-a7267f4d5e68","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage","page_number":89,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"f58c57ba-ae30-47aa-9873-efab08f83bee","block_type":"box","text":"loans. Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to","page_number":89,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"b0a4e983-067d-4013-91f3-2368baa63082","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":89,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"45d7f47a-d7f1-4cbe-9fe8-1083aa2910e4","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":89,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"cdea26f9-6f8e-4e3a-ac2a-d719724e347a","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools that","page_number":89,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"cfcab73d-2b30-4cdc-a246-6dc041d6c1ff","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan","page_number":89,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"ffe5fc36-87f0-4871-8965-9633b6e79d3d","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":89,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"8a8d877d-4cbf-40af-a87f-6619622e5a43","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mortgage","page_number":89,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"833d651c-563c-4f7f-b933-1ff977f56950","block_type":"box","text":"payments by holders of adjustable rate mortgages.","page_number":89,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"4f27a0e9-5997-496a-b207-6a67c33c9317","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited market","page_number":89,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"2bb85694-0c5f-4ce3-99f5-90f25fcc222c","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors.","page_number":89,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"eabfb13c-f13e-41f8-abdc-3d27fe4ee793","block_type":"box","text":"Without an active trading market, mortgage-related securities held in a Fund’s portfolio may be particularly difficult to","page_number":89,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"f6788fc5-d975-46a6-94f1-2b34bc97f737","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mortgage loans.","page_number":89,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"040f9283-e803-4f9a-91e9-28e6847eafab","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":89,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"298a2dd4-45ad-4093-b2b3-c85d5cd0ae31","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":89,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"e4879ac3-36d8-46ce-8a3c-4539852bf445","block_type":"box","text":"commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest and prepaid","page_number":89,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"88eb7173-1182-44ba-a7f1-0e9c226406c5","block_type":"box","text":"II-52","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9b9d89b8-d366-4198-84d8-d0ef30426a9c","block_type":"box","text":"NM1026U-5993100-89/236","page_number":89,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"99f534bb-8792-4267-8380-c9c2a613dc89","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mortgage loans or private mortgage pass","page_number":90,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"d3da6b19-4903-454b-bcb0-c2db93ab3903","block_type":"box","text":"through securities but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed","page_number":90,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"805588a4-cf47-4a44-8139-04af1247964e","block_type":"box","text":"by Ginnie Mae, Freddie Mac, or Fannie Mae. The issuer of a series of CMOs may elect to be treated as a Real Estate","page_number":90,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"178ae030-1501-4ecf-ab4c-a9be3f3f1380","block_type":"box","text":"Mortgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":90,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"f0404b1c-5ace-4465-b6c2-5cae9169f6dc","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":90,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"336b7a1f-48c5-433d-b79b-6cdd7db7a696","block_type":"box","text":"or fixed interest rate, and bearing a different stated maturity date and each must be fully retired no later than its final","page_number":90,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"d33a097e-3219-4b5f-ae55-a2097fea6995","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":90,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"6151c149-f90a-4f2c-9a35-3a2462b122d5","block_type":"box","text":"is ordinarily unrelated to the stated maturity date. CMOs often provide for a modified form of call protection through a","page_number":90,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"f7647783-5e9e-492b-afe0-6049da4acad8","block_type":"box","text":"de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly","page_number":90,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"5048d7d6-62cc-40bf-a6aa-960e1b6f748f","block_type":"box","text":"payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":90,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"ac978a11-b23f-412d-99ab-9545a5094cbd","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually receive principal","page_number":90,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"7872d227-df79-4b63-8d0a-e4bf5d313fab","block_type":"box","text":"only after the first class has been retired. An investor may be partially protected against a sooner than desired return","page_number":90,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"5c8b0ef7-3b54-42e4-bc11-e413b6bd4a67","block_type":"box","text":"of principal because of the sequential payments.","page_number":90,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"3e6db6ec-7525-414b-bc76-01b8233eacea","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":90,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"6e5120ef-4520-40ca-a66f-8d99ceaec829","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":90,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"7556579e-0b8a-4565-9877-4a8f2a3e415d","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":90,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"2a06cf02-9bf1-4665-a2e9-19f4ee7456d5","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in certain other qualifying CMOs, which cannot or do not rely","page_number":90,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"43f676dd-d9ed-46ea-8ea2-ccdff6226e88","block_type":"box","text":"on the rule, are also not subject to the limitation of the Investment Company Act on acquiring interests in other","page_number":90,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"2c36d147-3fc5-4c91-af28-a91f17972b65","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":90,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"3710e2ad-a1f8-489e-a1c1-f14da500ea87","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mortgage-backed securities; (2) do not issue redeemable","page_number":90,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"349bae96-45cf-4c3a-8dee-8a35fe0eec2d","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":90,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"120d02b8-4c22-48b8-9611-9fdbeec59b61","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":90,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"5f2b3fbb-f71f-4dfe-a8db-29daa3a73f1f","block_type":"box","text":"To the extent that a Fund selects CMOs that cannot rely on the rule or do not meet the above requirements, the Fund","page_number":90,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"855366a7-6625-4abd-b8d6-e567d323c89b","block_type":"box","text":"may not invest more than 10% of its assets in all such entities and may not acquire more than 3% of the voting","page_number":90,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"cd4ca655-975c-4e5b-b173-48ba5cc747c2","block_type":"box","text":"securities of any single such entity.","page_number":90,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"34e303e6-ba1e-4b01-84db-f27a582f5f5f","block_type":"box","text":"A Fund may also invest in, among other things, parallel pay CMOs, sequential pay CMOs, and floating rate CMOs.","page_number":90,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"c28439ea-b42a-4fb3-8f93-4a713a72b997","block_type":"box","text":"Parallel pay CMOs are structured to provide payments of principal on each payment date to more than one class,","page_number":90,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"3725eba3-7183-4eed-8e89-b65ace4196b2","block_type":"box","text":"concurrently on a proportionate or disproportionate basis. These simultaneous payments are taken into account in","page_number":90,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"8a0a4371-1e8f-44c0-8cd8-cb32676eb1ff","block_type":"box","text":"calculating the final distribution date of each class. Sequential pay CMOs generally pay principal to only one class at","page_number":90,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"a7bfa18f-170b-4a93-9d91-5d9e6c783bff","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Certificates may be issued in the parallel pay","page_number":90,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"26b0aab9-07f8-46dd-91ae-42c0c3cdbb97","block_type":"box","text":"or sequential pay structures. These securities include accrual certificates (also known as “Z-Bonds”), which only","page_number":90,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"08bb3624-6d65-408b-b25d-101211efa895","block_type":"box","text":"accrue interest at a specified rate until all other certificates having an earlier final distribution date have been retired","page_number":90,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"d1aff57f-dbdd-40a2-adb1-9a175b0b4f95","block_type":"box","text":"and are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":90,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"77d59316-b3ff-4ebb-88f5-36963cd89770","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":90,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"6a45ec7a-8700-4a87-88b0-056eca70dc24","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":90,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"afcc8cdc-f0d2-4720-9193-9b161f9def82","block_type":"box","text":"Classes of CMOs also include planned amortization classes (“PACs”) and targeted amortization classes","page_number":90,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"35856b8c-7ef3-4ef5-9043-c9f1faf74488","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":90,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"131fa435-46d0-4a3e-a78a-a13e445b7f72","block_type":"box","text":"scheduled principal payments for PAC Certificates generally have the highest priority on each payment date after","page_number":90,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"dabdb64a-f3b1-4f18-acef-8621091aa9b2","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shortfalls, if any, are added to the","page_number":90,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"e8871248-2416-40ca-9062-502359411984","block_type":"box","text":"amount payable on the next payment date. The PAC Certificate payment schedule is taken into account in calculating","page_number":90,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"7a4e8641-8bc3-4052-93dd-66bf46267d93","block_type":"box","text":"the final distribution date of each class of PAC. In order to create PAC tranches, one or more tranches generally must","page_number":90,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"26962ea1-27a5-44ed-9e4b-01c0160d1526","block_type":"box","text":"be created that absorb most of the volatility in the underlying mortgage assets. These tranches (often called","page_number":90,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"be23a722-ea8f-4cba-b0a3-1f6ef50a920d","block_type":"box","text":"“supports” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":90,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"0c21abec-f9af-470e-94ce-697e86844818","block_type":"box","text":"classes.","page_number":90,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"c5d488d6-7405-4234-9b9f-936e24cba925","block_type":"box","text":"TACs are similar to PACs in that they require that specified amounts of principal be applied on each payment","page_number":90,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"00f9db13-1a2c-4ea3-9d88-b9c3fd8c1172","block_type":"box","text":"date to one or more classes of REMIC Certificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":90,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"5ac69ae2-2685-4302-87f4-ac89fd926fa9","block_type":"box","text":"prepayment rates on the underlying mortgages do not exceed certain ranges. In contrast, a TAC provides investors","page_number":90,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"bd5b7aad-be13-445e-842d-de49060b37d2","block_type":"box","text":"with protection, to a certain level, against either faster than expected or slower than expected prepayment rates, but","page_number":90,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"ada54765-9b8d-4a88-8178-6f72efa19863","block_type":"box","text":"not both. TACs thus provide more cash flow stability than a regular sequential paying class, but less than a PAC. TACs","page_number":90,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"adbf3b86-8ed1-4b77-8b2c-5aab806254f1","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":90,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"f51223ad-db49-4eca-9b77-e0b94046df68","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":90,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"1b6287bc-649d-45ba-9f72-f1422f118052","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through securities","page_number":90,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"b0c38b07-11fe-4b66-8f40-b520f25f6c4a","block_type":"box","text":"collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mortgage pool","page_number":90,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"110c4a49-99fa-44bb-a872-7f7024bc8617","block_type":"box","text":"generally provide for a fixed initial mortgage interest rate for a set number of scheduled monthly payments. After that","page_number":90,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"1f52c422-65db-4bb3-9466-3acc375058f4","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":90,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"16503e4c-d553-44b0-be46-8cc19d890e7d","block_type":"box","text":"to a designated benchmark index.","page_number":90,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"bb089f65-7b09-433d-a75d-d9aa13259c5b","block_type":"box","text":"II-53","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d4fc19fe-2fc7-4849-a3a9-2bcf713accc9","block_type":"box","text":"NM1026U-5993100-90/236","page_number":90,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"dbc122f9-1444-4f51-a43d-21cbc739eb29","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the","page_number":91,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"ff1435e5-d218-4456-9ef1-e780422424c3","block_type":"box","text":"lifetime of the security. In addition, certain ARMs provide for additional limitations on the maximum amount by which","page_number":91,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"2f67b2ab-bc7b-4669-baff-f9e5333a1523","block_type":"box","text":"the mortgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":91,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"0f2f1c5e-2f34-4985-bcc7-d98a94cdc995","block_type":"box","text":"more rapidly to levels above that of the ARM’s maximum rate, the ARM’s coupon may represent a below market rate","page_number":91,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"7663ecf7-a723-41dd-aa4c-02a1230b9b9f","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":91,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"1a298cfb-bd8a-4b20-b0e0-e31c5c401018","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":91,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"6b0794fb-833e-419f-9fba-aa98228de77c","block_type":"box","text":"payment is not sufficient to pay the interest accruing on an ARM, any such excess interest is added to the principal","page_number":91,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"6209dc9e-58e4-47fb-9793-f869ed398506","block_type":"box","text":"balance of the mortgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":91,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"f5e04886-a4b1-4891-9270-367b6be1d7e1","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal","page_number":91,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"83627881-5379-431c-b35f-f20601d7803a","block_type":"box","text":"payment required at such point to amortize the outstanding principal balance over the remaining term of the loan, the","page_number":91,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"d04d3696-04d5-4f26-9cd2-f5fad115e781","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":91,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"ae71eefd-1eec-4d6e-9b36-58cc2e6ab093","block_type":"box","text":"CMO Residuals.","page_number":91,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"19324a5e-1adc-4e28-9f8d-876e01964b10","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or instrumentalities of the","page_number":91,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"ad442aa1-5717-44c4-a8a5-3d809ef855f9","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan","page_number":91,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"5ca242a6-6888-465e-9fca-fcb97268c16d","block_type":"box","text":"associations, homebuilders, mortgage banks, commercial banks, investment banks, and special purpose entities of","page_number":91,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"fe28346f-ee85-49ad-9b06-232f1c177ebb","block_type":"box","text":"the foregoing. The cash flow generated by the mortgage assets underlying a series of CMOs is applied first to make","page_number":91,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"f047332b-15cc-4c6b-8417-4a01f61ce6f3","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":91,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"eb81421b-baa3-42aa-99c0-d6da57476423","block_type":"box","text":"any management fees of the issuer. The residual in a CMO structure generally represents the interest in any excess","page_number":91,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"fc073d82-7b54-4d78-a7d3-a3175447b8da","block_type":"box","text":"cash flow remaining after making the foregoing payments. Each payment of such excess cash flow to a holder of the","page_number":91,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"9ca3a366-75df-44e6-b992-5da754dba2b7","block_type":"box","text":"related CMO residual represents income and/or a return of capital. The amount of residual cash flow resulting from a","page_number":91,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"602d19a6-050c-4234-a9cd-3f8a45f8d06e","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mortgage assets, the coupon rate of each class","page_number":91,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"82a17adc-1519-41bf-a5a7-6c5a4fc2ae6a","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":91,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"e152273f-a126-4bbe-857f-5ef62731c030","block_type":"box","text":"mortgage assets. In part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":91,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"f4d3375b-df3c-4d2c-b524-e4189eb47249","block_type":"box","text":"related underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":91,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"3cd17859-31e1-49c9-9ef3-35602b8739ac","block_type":"box","text":"securities. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate, the yield to","page_number":91,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"d5b25c1b-a154-42eb-8b0e-6fc3f5ff94e6","block_type":"box","text":"maturity on the related CMO residual will also be extremely sensitive to changes in the level of the index upon which","page_number":91,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"e262c995-dba3-4a78-9c95-7b067454da2e","block_type":"box","text":"interest rate adjustments are based. In certain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":91,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"7d6b6911-4d6a-4a41-8bd7-6bfb60a9dfc2","block_type":"box","text":"a CMO residual.","page_number":91,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"14f6491e-6982-4e76-b62b-6f336369ea84","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":91,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"069aec20-6106-4d4f-8b32-65778a340acb","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":91,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"7793fd3e-feb3-47d1-bf66-d233c7a4e4f1","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":91,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"282418b9-9c2a-4a54-b547-a5b65c4bd6d8","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":91,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"c98e4d97-d6a8-46bb-8f65-bdbc1e72ebd2","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":91,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"3bcf0cb5-17cc-49ca-8c36-deb80f141396","block_type":"box","text":"registered under the Securities Act, may be subject to certain restrictions on transferability.","page_number":91,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"62e194a2-307d-4abb-bd40-e45e12e0c31a","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":91,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"99f21c98-2efe-4a54-b359-0a1d4a433903","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities (“SMBSs”)","page_number":91,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"a66a70ff-6985-4c77-bbf5-b126568f8942","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mortgage-backed","page_number":91,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"b036eec6-d149-480e-ae36-d8178cf24ed2","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different proportions of the","page_number":91,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"16586b41-13d2-4ac8-8644-bacc52bf0917","block_type":"box","text":"interest and principal distributions on a pool of mortgage assets. A common variety of SMBS is where one class (the","page_number":91,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"e66a135c-4e86-412c-a125-34275ca24ac0","block_type":"box","text":"principal only or PO class) receives some of the interest and most of the principal from the underlying assets, while","page_number":91,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"acf8c95a-ce6b-42b7-ba02-1856a56e4cc1","block_type":"box","text":"the other class (the interest only or IO class) receives most of the interest and the remainder of the principal. In the","page_number":91,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"f5899fb5-f816-4811-b4e5-2ff76e5dd988","block_type":"box","text":"most extreme case, the IO class receives all of the interest, while the PO class receives all of the principal. While a","page_number":91,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"c227cdcf-5520-4bd0-bc0d-c3d10e36e6f3","block_type":"box","text":"Fund may purchase securities of a PO class, a Fund is more likely to purchase the securities of an IO class. The yield","page_number":91,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"50c6920f-4128-47d8-be85-955321c9acb0","block_type":"box","text":"to maturity of an IO class is extremely sensitive to the rate of principal payments (including prepayments) on the","page_number":91,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"0071d20b-1efe-4ffa-99ee-cf6396753772","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":91,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"2a669ef3-de96-44a2-bcca-6c1608a6ead5","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mortgage assets","page_number":91,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"b6a4e9bf-4c49-45c1-b3f4-be423a3c0bbf","block_type":"box","text":"experience greater than anticipated payments of principal, a Fund may fail to recoup fully its initial investment in IOs.","page_number":91,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"cdaa3b25-19e0-41f7-a65f-53e5a0e89c95","block_type":"box","text":"In addition, there are certain types of IOs that represent the interest portion of a particular class as opposed to the","page_number":91,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"f865332e-624a-4061-809a-2a7656e76d8a","block_type":"box","text":"interest portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":91,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"4d2102b8-a304-4e9d-b058-56689e46f926","block_type":"box","text":"because of the characteristics of the principal portion to which they relate. As a result of the above factors, a Fund","page_number":91,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"1b857fde-083d-4ae0-9a76-622e15cdd728","block_type":"box","text":"generally will purchase IOs only as a component of so called “synthetic” securities. This means that purchases of IOs","page_number":91,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"26de34fa-7743-4a0b-b90a-39faa0789f4d","block_type":"box","text":"will be matched with certain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":91,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"cdef542c-8535-4973-8d66-2c40a9b621d4","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":91,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"e4cea46d-c7cd-4efc-a013-df5f1c11c554","block_type":"box","text":"effect on a Fund because of its holdings of IOs should be diminished somewhat because of the increased yield on","page_number":91,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"0bb7d9b7-58bc-4d4c-9bb3-542e8a103257","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":91,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"2d13c14b-f8fc-4b5d-a089-7d741b2f023c","block_type":"box","text":"Tiered Index Bonds.","page_number":91,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"a7919f58-286e-4b24-be1b-edfea90f5481","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a tiered","page_number":91,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"8bf67bf7-4b1f-4e91-933d-5b85bdb914c8","block_type":"box","text":"index bond is tied to a specified index or market rate. So long as this index or market rate is below a predetermined","page_number":91,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"3afe102c-a075-436b-ae9d-cc4e34065b72","block_type":"box","text":"II-54","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2a2453e5-e9e7-4988-aa8c-5b04769b9278","block_type":"box","text":"NM1026U-5993100-91/236","page_number":91,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5bd658a0-e38c-4610-922a-e54289a69d79","block_type":"box","text":"“strike” rate, the interest rate on the tiered index bond remains fixed. If, however, the specified index or market rate","page_number":92,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"8e2cace1-ad59-4ffa-8db0-48e2751534e9","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":92,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"f264903c-6181-44be-a335-5becff86a414","block_type":"box","text":"circumstances, the interest rate on a tiered index bond, like an inverse floater, will move in the opposite direction of","page_number":92,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"ffb8f134-e9ab-4b56-a08e-b8648b30976f","block_type":"box","text":"prevailing interest rates, with the result that the price of the tiered index bond may be considerably more volatile than","page_number":92,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"86995a7b-3d6a-442d-b4d3-86a561418b80","block_type":"box","text":"that of a fixed-rate bond.","page_number":92,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"555e2397-22fc-4fd4-b353-f5e65f81b7f9","block_type":"box","text":"TBA Commitments.","page_number":92,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"ab88c70f-dc2c-47a1-a86f-f74cf2e29a69","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":92,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"b9db78ea-f75c-44c2-a273-f7720280dc6b","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price,","page_number":92,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"1e85816b-f3a7-4aae-bfc6-61149ffa2851","block_type":"box","text":"with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not","page_number":92,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"dd265d66-742a-4c62-812b-4493771f68ce","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":92,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"e34f324d-66e2-4630-9696-f0f2d1b5f95a","block_type":"box","text":"mortgage terms. When the Fund enters into a TBA commitment for the sale of mortgage-backed securities for a fixed","page_number":92,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"0062bfef-0f63-498f-a0c0-58a1ff570b0e","block_type":"box","text":"price, with payment and delivery on an agreed upon future settlement date (which may be referred to as having a","page_number":92,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"bf207c37-b8f6-4dbf-9fde-011c37ad0a5e","block_type":"box","text":"short position in such TBA securities), the Fund may or may not hold the types of mortgage-backed securities","page_number":92,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"b2895a22-a37a-4873-8b10-c191ecf3c091","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":92,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"4f25bfdd-ba9f-4406-9b90-5d28ac79758b","block_type":"box","text":"below.","page_number":92,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"10d15e2e-bdc0-4f30-8e2b-957dc368e08a","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":92,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"e83dc423-6599-4d1e-ad73-817df81c6087","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll transaction, a","page_number":92,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"40ac23a6-b333-48f5-bd40-96ef16727481","block_type":"box","text":"Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":92,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"6742029b-030d-46f4-bd60-7f4d932364cf","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":92,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"e6f69896-4130-4c28-a50b-03bd15819429","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mortgages collateralizing those securities may have","page_number":92,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"773c262e-9b9c-42c2-842d-3f76aaa0af75","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":92,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"3c63e722-61cb-4492-9144-a87e64f22493","block_type":"box","text":"be entitled to receive interest and principal payments on the securities sold. Proceeds of the sale will be invested in","page_number":92,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"37849640-73a2-4381-9704-ff8c435c78dc","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":92,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"ed0b6fec-09c9-4508-a1c7-5ca5322628a2","block_type":"box","text":"such income does not exceed the income, capital appreciation and gain or loss that would have been realized on the","page_number":92,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"095f442b-12fb-4e28-b6e9-9b4f1f5a7c8c","block_type":"box","text":"securities sold as part of the dollar roll, the use of this technique will diminish the investment performance of a Fund","page_number":92,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"325c0f06-52b7-46ff-95b0-6af4503d53ad","block_type":"box","text":"compared with what the performance would have been without the use of dollar rolls.","page_number":92,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"53854b3c-a5ea-4ea6-9f76-11370580c02a","block_type":"box","text":"Each mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and a","page_number":92,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"47c51679-96cd-4f1a-b6a6-7f211ec00a1e","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mortgage","page_number":92,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"08432c86-9e34-47f0-abfe-ba641b5bdacc","block_type":"box","text":"dollar rolls may increase trading costs and portfolio turnover.","page_number":92,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"e6e16d93-54cc-4271-a582-817628e5d5dc","block_type":"box","text":"In the event the buyer of the securities under a mortgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":92,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"bad63a16-478e-4ad3-9164-69d74c59966d","block_type":"box","text":"Fund’s use of the proceeds of the current sale portion of the transaction may be restricted pending a determination","page_number":92,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"ae24db7e-f27e-4036-a81f-c327456f8eb3","block_type":"box","text":"by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":92,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"d13a5097-2ad4-4964-896c-cff735051514","block_type":"box","text":"securities in the forward transaction.","page_number":92,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"aebb4cf6-33a9-4b0b-83a7-9ce6463c0c5a","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar rolls may","page_number":92,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"591c65c1-a9c2-4fa8-9407-e9256aca419d","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":92,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"5f3d093f-9a25-46f9-9c50-be2fb4205a4c","block_type":"box","text":"that the market value of the securities subject to a Fund’s forward purchase commitment may decline below, or the","page_number":92,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"6f101f18-d96e-4924-b024-7b48193eee12","block_type":"box","text":"market value of the securities subject to a Fund’s forward sale commitment may increase above, the exercise price","page_number":92,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"959d3b5a-8772-4b1d-a976-190445aaba51","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":92,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"07c9d6cb-e7c4-4937-835a-a48dc84c3f62","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":92,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"7e491ea7-de52-4edc-97f0-5989d98310c4","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":92,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"4ea93341-c65c-4a90-b1c4-62a0ad9d3d1a","block_type":"box","text":"securities (","page_number":92,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"ae015357-ec44-49b5-baf9-2395739221b6","block_type":"box","text":"e.g.","page_number":92,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"b33401ed-48e8-43b7-8ded-2644ea7c5c4c","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":92,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"ef95865a-36e8-495c-9d83-c76aacda93b4","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":92,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"96e61bc9-c349-4ba3-b147-bf242a834e7e","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":92,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"906c4f1c-6f64-4e4e-a95e-46c812f48e63","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":92,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"be03f8e9-8252-4986-a919-ae046ddcd313","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":92,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"ff276b3c-797f-409f-8bb4-d5b1ea9652de","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":92,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"62e4e895-70bf-461a-970d-050371c6d054","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":92,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"1fc2dac1-4992-40e0-9320-cc6c8b4a0048","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":92,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"fd9dbb2b-8b58-46b8-b3d9-e82334abf6c7","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":92,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"135b6e63-16ac-4740-b6f7-d7a455b59ae3","block_type":"box","text":"securities are derivative interest-only mortgage securities structured off home equity loan transactions. NIM","page_number":92,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"37adccf2-ddfe-4737-b96d-1a45516dd59b","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":92,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"c72bb5ed-aa89-4298-9b91-21879e08273b","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mortgage-backed","page_number":92,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"96d58cb9-93bb-47cb-8cf7-dd8c4c9e0910","block_type":"box","text":"securities, the yield to maturity on a NIM security is sensitive not only to changes in prevailing interest rates but also","page_number":92,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"49e7720c-abb4-410e-b039-5b68957b6a70","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":92,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"88ac0763-3c65-4e24-8fb2-a0b95d0a38f8","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":92,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"e391bbaf-4386-4cce-9949-8d89a71f1456","block_type":"box","text":"Municipal Investments.","page_number":92,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"c6f2d539-4e59-46d6-bde5-0e9ade038158","block_type":"box","text":"II-55","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bb2fb07a-4538-4937-abae-9a177d203b18","block_type":"box","text":"NM1026U-5993100-92/236","page_number":92,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"27730ea6-2ace-42f3-9269-2981051a242d","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":93,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"b8730a3f-745a-4ee6-b058-11da79d99cc3","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":93,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"426b14b2-49f8-46ea-b303-338b2ca1b8d8","block_type":"box","text":"payments from which, in the opinion of bond counsel to the issuer, are excludable from gross income for U.S. federal","page_number":93,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"4a788e7e-328e-4ae9-803e-ef2524943b2e","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that","page_number":93,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"4aa1d7c2-1e71-4f2a-97e9-aedec0ff1441","block_type":"box","text":"pay interest excludable from gross income for purposes of state and local income taxes of the designated state and/","page_number":93,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"4bb019af-18ca-411b-8c4e-f3993e94d3da","block_type":"box","text":"or allow the value of a Fund’s shares to be exempt from state and local taxes of the designated state (“State","page_number":93,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"e0f7f717-b9b3-496d-a62e-f0e6cecb8d48","block_type":"box","text":"Municipal Bonds”). The Municipal Funds may also invest in securities not issued by or on behalf of a state or territory","page_number":93,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"09d6d64a-8e0b-4a21-9d56-0839750895b2","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":93,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"7666980e-7405-4ed1-8c6d-f103af8af9f3","block_type":"box","text":"gross income for purposes of U.S. federal income tax and state and local income taxes of the designated state and/","page_number":93,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"d6ebf5fe-9f5f-42a6-8d07-dbc6b15fc3ae","block_type":"box","text":"or state and local personal property taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":93,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"41b95c7e-8b2b-4fd7-a670-add7d0a38521","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interest in one or","page_number":93,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"45a6bc87-fea2-4a68-aaf5-2143071f5ee9","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":93,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"5bc54ed8-b24b-4b62-8430-9ae55a1f58c2","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":93,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"3300828b-949c-42e4-9022-c6126829d556","block_type":"box","text":"law. Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for U.S. federal income tax","page_number":93,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"f2d7ca2a-a339-4f58-aee2-18dc73c07e92","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":93,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"6b5429ce-43d7-40a2-8e31-0267fbb63eca","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":93,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"73325d17-4c9e-4a67-a824-2fa8627861aa","block_type":"box","text":"income tax and state and local income taxes of a designated state and/or allow the value of a Fund’s shares to be","page_number":93,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"4a51bb81-98b7-4641-b1ee-2cfdbbf6203b","block_type":"box","text":"exempt from state and local personal property taxes of that state will be considered “State Municipal Bonds” for","page_number":93,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"d3e52339-3b74-4cb5-8213-61b92b750352","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":93,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"f08776a4-7051-4781-96f2-b474b11edc74","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":93,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"678ddc58-06bc-411f-bd86-becad9711ff6","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":93,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"9c34a169-4c1f-4d34-93b8-300091041874","block_type":"box","text":"The risks and special considerations","page_number":93,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"0406504d-8864-4533-b16d-1a2dc6586bfc","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":93,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"8e80048d-9f69-426b-baab-94b57b0bc3d4","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the particular product. Certain municipal","page_number":93,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"d2cdb997-96fa-4aa2-adac-da95eb9363f3","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":93,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"0d076dc2-3cfc-4bb3-9f08-1056d103e873","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncertainties in the municipal markets as a result of","page_number":93,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"fe02e28a-e0a8-4447-bf54-d6479b2ad49e","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":93,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"60b90322-2554-4dc7-891e-fb193e1fb599","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and certain provisions of the","page_number":93,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"56789708-3bc0-4ea4-b752-15f88b488a33","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Further, the application of state law to Municipal","page_number":93,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"ff3cd782-0d6a-4edd-9c47-e314ccae3c4d","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":93,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"5904c382-9ff7-47a0-b0e0-659a16303a7e","block_type":"box","text":"uncertainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":93,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"84497d11-675f-4eb1-9340-acbc78f6335c","block_type":"box","text":"II-56","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0ace6c5f-7341-4130-9b02-2c015c477d9e","block_type":"box","text":"NM1026U-5993100-93/236","page_number":93,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9614581b-610f-4039-9b93-ae85e9b589e9","block_type":"box","text":"Description of Municipal Bonds.","page_number":94,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"f99291f6-a0fe-46a2-a4b7-5fcd5460fdb0","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":94,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"4bfb3541-b9d1-4d1b-89f9-aa415b3d6f8e","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":94,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"4116b6c6-0111-4067-97d8-6e94ac903bfd","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, certain types of bonds are issued","page_number":94,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"e2f9b8b7-d070-4358-a6a1-b3cb59eca426","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including certain","page_number":94,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"b83c0ccf-787f-4b4b-9f56-36050e85a699","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":94,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"316c8c4e-e0d8-4e36-89db-654f8d95bd46","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":94,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"f0a9914e-4d7c-4a90-b0bb-c2e600e9f801","block_type":"box","text":"excluded from gross income for U.S. federal income tax purposes and any applicable state and local taxes. Other","page_number":94,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"859b82cc-c7b7-47bf-9515-2c4e7ecb7e62","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":94,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"b7794b35-264f-40a7-b0c0-f0e1191abec1","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":94,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"c2431076-e989-47d0-8a58-f49a338e599b","block_type":"box","text":"federal tax laws place substantial limitations on the size of such issues. The interest on Municipal Bonds may bear a","page_number":94,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"ea66ff9f-d763-4728-865f-0931d23f6184","block_type":"box","text":"fixed rate or be payable at a variable or floating rate. The two principal classifications of Municipal Bonds are “general","page_number":94,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"ce8d931d-c132-4561-bb82-e902f61f3a01","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":94,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"f0d5fcf7-5215-414c-aeb9-a8acff0431f5","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":94,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"35d67851-55c6-485a-acbf-44ed7e76b0f6","block_type":"box","text":"General Obligation Bonds.","page_number":94,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"342588b4-3d43-4f71-a0aa-cfb0b189ecaa","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":94,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"4c3020e7-9b8d-4883-8c43-14a48642a15b","block_type":"box","text":"taxing power for the payment of principal and interest. The taxing power of any governmental entity may be limited,","page_number":94,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"8d4ab46c-6049-4e5b-a62f-a5cf6056f186","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditworthiness will depend on many factors,","page_number":94,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"88f6c0df-aa42-4fe7-939b-49f5a81c1481","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":94,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"4cc35f13-745e-4c2c-8950-ec2e8ea68c2d","block_type":"box","text":"industrial base or inability to attract new industries, economic limits on the ability to tax without eroding the tax base,","page_number":94,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"ff29e0d9-2185-4a27-aab6-016b4b62a854","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real property taxes and the extent to which the entity","page_number":94,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"0d4b4f92-10cc-4612-9263-054e831926a0","block_type":"box","text":"relies on federal or state aid, access to capital markets or other factors beyond the state’s or entity’s control.","page_number":94,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"55119985-448b-4a91-9313-b22e414730d1","block_type":"box","text":"Accordingly, the capacity of the issuer of a general obligation bond as to the timely payment of interest and the","page_number":94,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"1f71c45f-2680-4246-8deb-04926abd9658","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":94,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"4ce84b57-657f-45ae-ad56-d54a4cecfab0","block_type":"box","text":"Revenue Bonds.","page_number":94,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"84c87621-b3eb-42c4-aa8e-563509290d2f","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility or class of","page_number":94,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"bc0399a8-b3fd-4b41-a236-5b1625faba44","block_type":"box","text":"facilities or, in some cases, from the proceeds of a special excise tax or other specific revenue source such as","page_number":94,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"59a4112a-6026-46b8-8384-99de7adfca82","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":94,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"41face30-9243-4b54-8484-27934e8b0ebb","block_type":"box","text":"of principal in accordance with the terms of the revenue or special obligation bond is a function of the economic","page_number":94,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"0f2317d6-4639-44b6-8ba0-e59d42f15471","block_type":"box","text":"viability of such facility or such revenue source.","page_number":94,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"78e32087-c1b8-46d2-a73a-cb454e4eba22","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":94,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"efc91cca-6256-499c-8d6c-d08c43cd66c0","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":94,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"b21501ff-f427-49d4-8fc6-81ed17c03509","block_type":"box","text":"properties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":94,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"53052c63-89a5-4d1e-b93e-4a6393b8ec09","block_type":"box","text":"recourse against the property owner, may be junior to the rights of others with an interest in the properties, may pay","page_number":94,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"0058df74-36bc-4621-ae26-e6a00ded758d","block_type":"box","text":"interest that changes based in part on the financial performance of the property, may be prepayable without penalty","page_number":94,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"27811d34-9431-4a01-8dbb-faa80e8b723b","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":94,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"4820662b-1822-4fc3-bd81-42b484e51c67","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":94,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"6b94bb97-50d6-4976-ac29-0b684a738f88","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":94,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"acfe5f1d-f67e-487f-aa8c-31c5a629b32e","block_type":"box","text":"PABs.","page_number":94,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"1fe895a2-6f3c-48df-99ba-6d6b974c01d3","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":94,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"e0f3f721-4d50-4405-bf0b-5c2a03c1be74","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":94,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"0933d8f1-7e41-4ff5-8d6b-10f5ce8b800f","block_type":"box","text":"construction or improvement of a facility to be used by the entity. Such bonds are secured primarily by revenues","page_number":94,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"93e6296c-2c72-44b7-884d-de72366d690c","block_type":"box","text":"derived from loan repayments or lease payments due from the entity, which may or may not be guaranteed by a","page_number":94,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"3f7d713a-e460-4858-ae6d-e17f49e82c24","block_type":"box","text":"parent company or otherwise secured. PABs generally are not secured by a pledge of the taxing power of the issuer of","page_number":94,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"9ab71b34-7bdc-44a3-8e9a-a169bd8bcd61","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":94,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"6cb59c45-5528-462c-807a-26382f88eb7e","block_type":"box","text":"revenues of a private entity and be aware of the risks that such an investment may entail. The continued ability of an","page_number":94,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"bfd9ce10-0fe9-44cb-ba8c-18db2095764c","block_type":"box","text":"entity to generate sufficient revenues for the payment of principal and interest on such bonds will be affected by","page_number":94,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"4a604630-fad5-4857-a4c1-7b3900e433a6","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":94,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"7608e6ef-2e17-4e45-879c-a8061418957f","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":94,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"eee0de15-3e44-4a4f-82ad-ca293fa08e15","block_type":"box","text":"the particular facility being financed.","page_number":94,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"bacfff64-a316-42f4-bfb9-87d3c5645024","block_type":"box","text":"Moral Obligation Bonds.","page_number":94,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"6996d131-abd3-4b22-9a03-ae750a607025","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":94,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"5d91dc3d-0f72-407a-8cda-e6fbc5fc3930","block_type":"box","text":"issuer of moral obligation bonds is unable to meet its obligations, the repayment of such bonds becomes a moral","page_number":94,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"66f9df3b-1c88-4751-83ef-7e732242b6f0","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":94,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"8cfa340a-0797-45b1-8d73-6e7462c51de4","block_type":"box","text":"that issued the bonds.","page_number":94,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"b326361b-57c4-4f94-8e41-16aa930f868a","block_type":"box","text":"Municipal Notes.","page_number":94,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"77b6af60-3aea-4eeb-bf05-681ae2498784","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim financing","page_number":94,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"88d13d64-ad1a-4507-aa06-d53d18a4646d","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shortfall in the anticipated proceeds,","page_number":94,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"45d85c8b-3da8-45d0-b892-256e8e01fb8c","block_type":"box","text":"repayment on the note may be delayed or the note may not be fully repaid, and a Fund may lose money.","page_number":94,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"8208399a-d5a7-4863-b416-1a711905cbc0","block_type":"box","text":"II-57","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"13e86ed2-702e-41da-a64a-3fc443e98323","block_type":"box","text":"NM1026U-5993100-94/236","page_number":94,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a1779a23-ee9b-403c-9006-a08a053a0fb4","block_type":"box","text":"Municipal Commercial Paper.","page_number":95,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"12a530d2-114e-4beb-b9e6-c82ac3b6a65c","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet short-term","page_number":95,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"afb4bc23-67fb-479a-b402-e01d06a3fd3e","block_type":"box","text":"financing needs. The lack of security presents some risk of loss to a Fund since, in the event of an issuer’s","page_number":95,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"c3f6ecb9-2c6c-4dde-985e-7936c36e88b7","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":95,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"42d3ded9-7f3c-4ed5-9571-caa5032c8206","block_type":"box","text":"Municipal Lease Obligations.","page_number":95,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"a37b053b-4691-4036-97de-dcd8d75f82e2","block_type":"box","text":"Also included within the general category of Municipal Bonds are certificates of","page_number":95,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"83ad7cdc-76f7-48d9-b210-d3877939040a","block_type":"box","text":"participation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":95,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"e5d31bb2-b9c8-4bfe-a055-5b1dfcde3cc8","block_type":"box","text":"equipment, land and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a","page_number":95,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"927c6d4a-110c-4e65-a606-cfbd43468b18","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":95,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"c1d7c2e2-3073-4be1-834f-b03ee3e3d47c","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":95,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"147392aa-1bac-4c3e-95a6-5002ba63c9b2","block_type":"box","text":"lease obligations do not constitute general obligations of the issuer for which the issuer’s unlimited taxing power is","page_number":95,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"5824b3cf-43db-4037-ba33-f383d36cef92","block_type":"box","text":"pledged, a lease obligation is frequently backed by the issuer’s covenant to budget for, appropriate and make the","page_number":95,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"30c1efec-1570-4894-ae77-28d1615f8967","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain “non-appropriation” clauses,","page_number":95,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"a8968a57-ff14-41b5-8cd1-e49a099d8969","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":95,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"361fc882-9784-40f1-b5ca-67086dc2415d","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":95,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"01de8734-12c1-4a28-8f30-3a05c0b077d9","block_type":"box","text":"secured by the leased property, disposition of the property in the event of foreclosure might prove difficult. These","page_number":95,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"33310f6e-462a-43a4-a1a4-59dc94223223","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":95,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"4663b4fa-f585-48aa-b1a0-acb0ffcde4ce","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":95,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"89f76677-a5ee-45bb-a6f3-0d07f28d4394","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":95,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"7216d194-bd82-4795-8657-4b9e07a2e038","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":95,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"48243d03-3f27-4f36-8efe-055413940d69","block_type":"box","text":"and local governmental units. Such non-payment would result in a reduction of income to a Fund and could result in a","page_number":95,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"0600318f-7679-40c9-b7af-6d51df54813d","block_type":"box","text":"reduction in the value of the municipal lease experiencing non-payment and a potential decrease in the NAV of a","page_number":95,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"c2ef7a08-61b4-4c1f-a0d5-1c2e665bdd96","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":95,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"6cb989bd-92e2-419c-92f5-5fc45fa6e2c3","block_type":"box","text":"such an issuer, a Fund could experience delays and limitations with respect to the collection of principal and interest","page_number":95,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"2ad0ce0f-0a02-43e3-a4d8-bfebb1baa907","block_type":"box","text":"on such municipal leases and a Fund may not, in all circumstances, be able to collect all principal and interest to","page_number":95,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"219753c8-8968-4926-a23d-8ddf457ec4c2","block_type":"box","text":"which it is entitled. To enforce its rights in the event of a default in lease payments, a Fund might take possession of","page_number":95,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"67535b40-fe68-4beb-83e8-ad7cdec915a3","block_type":"box","text":"and manage the assets securing the issuer’s obligations on such securities, which may increase a Fund’s operating","page_number":95,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"d28ace4b-7a2e-47a8-931e-a9ede6af812d","block_type":"box","text":"expenses and adversely affect the NAV of a Fund. When the lease contains a non-appropriation clause, however, the","page_number":95,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"be7f3c42-783e-4211-86ce-1cbc4eac4144","block_type":"box","text":"failure to pay would not be a default and a Fund would not have the right to take possession of the assets. Any","page_number":95,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"5943a9ff-a13a-4af2-b7ce-53777fdb712b","block_type":"box","text":"income derived from a Fund’s ownership or operation of such assets may not be tax-exempt. In addition, a Fund’s","page_number":95,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"52af9579-2901-4fde-acde-3703b3a184a1","block_type":"box","text":"intention to qualify as a “regulated investment company” under the Code, may limit the extent to which a Fund may","page_number":95,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"6c8d70c4-70b7-454e-9acf-777010f0fe69","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":95,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"de901394-e082-4681-9e3a-ee12cc3c1010","block_type":"box","text":"subject to certain limitations on its investments and on the nature of its income.","page_number":95,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"d072ab22-3950-47f3-928e-50c0ea1612bd","block_type":"box","text":"Tender Option Bonds.","page_number":95,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"fdd879b5-a13e-46cf-aa20-2eb8055d21aa","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":95,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"888815ed-b813-47f4-9069-3eb9df039c15","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":95,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"a4611a92-e15e-4f25-81e1-209e4a40a6d0","block_type":"box","text":"invest pay interest or income that, in the opinion of counsel to the issuer, is exempt from regular U.S. federal income","page_number":95,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"44c977ee-b0a4-4715-8256-df2f292be79a","block_type":"box","text":"tax. BlackRock will not conduct its own analysis of the tax status of the interest or income paid by TOB Residuals","page_number":95,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"a0941946-8a02-44b1-99ee-1c0bddf69fcd","block_type":"box","text":"held by the Funds, but will rely on the opinion of counsel to the issuer. Although volatile, TOB Residuals typically offer","page_number":95,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"20eec626-a22f-4f4b-a0d2-3c23a28805b3","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":95,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"76873fcd-9559-4ecc-811d-fdcab2afbf5c","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":95,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"6b28aa1b-03b0-4265-bf19-908b85852afb","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":95,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"ffd91b41-c6d1-4008-82a2-e18f52ff8c2a","block_type":"box","text":"Municipal Bonds contributed by one or more funds (a “TOB Trust”). A TOB Trust typically issues two classes of","page_number":95,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"2b5e3c15-e8d4-41e9-8777-3477ae61b4e3","block_type":"box","text":"beneficial interests: short-term floating rate interests (“TOB Floaters”), which are sold to third-party investors, and","page_number":95,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"a22a8595-1cd5-4093-9272-f3fc7ffd8777","block_type":"box","text":"TOB Residuals, which are generally issued to the fund(s) that transferred Municipal Bonds to the TOB Trust. The","page_number":95,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"09edb3fe-4fec-4685-8014-ea1651fd4fcf","block_type":"box","text":"Funds may invest in both TOB Floaters and TOB Residuals. TOB Floaters may have first priority on the cash flow from","page_number":95,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"5a49add9-966c-4c96-8054-f91ca01fa36c","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity support arrangement from a third-party","page_number":95,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"e88dc17e-a936-4ec6-a468-cc92021e967f","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":95,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"2de7c060-2813-4aae-824c-83f7640102bc","block_type":"box","text":"as a holder of TOB Residuals, is paid the residual cash flow from the TOB Trust. A Fund that contributes the","page_number":95,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"840a3d5d-2b5c-4bf7-b02c-0bab936ed1f2","block_type":"box","text":"Municipal Bonds to the TOB Trust is paid the cash received by the TOB Trust from the sale of the TOB Floaters, less","page_number":95,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"ad4d9ab9-dce1-4bac-9906-8e8c2a541c6c","block_type":"box","text":"certain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":95,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"1db29583-bd5b-440c-a409-5e01708f84b4","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a portion of the TOB Floaters sold by","page_number":95,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"299193e0-2f9a-44ea-8931-efdce12d8361","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a proportionate amount of TOB Residuals to the","page_number":95,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"450e3d7a-63d9-40dd-a347-d99fff3cf003","block_type":"box","text":"TOB Trust in exchange for a proportionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":95,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"a04fd4f7-7da6-4427-93ac-235c70a0a0c0","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":95,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"aff59d57-7e38-4297-b34c-d1c16a841291","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and","page_number":95,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"e7dc6ab0-ade5-499d-ba84-6672a875339a","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in proportion to their","page_number":95,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"2a029f64-56e5-4b3f-aef0-cc7ae562f873","block_type":"box","text":"participation in the TOB Trust.","page_number":95,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"95e200f0-62b7-427c-b629-31a2f6bcfc80","block_type":"box","text":"II-58","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2570a930-256d-4004-83c5-77d9f21b1400","block_type":"box","text":"NM1026U-5993100-95/236","page_number":95,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"55078277-4ab7-4cfe-9fa3-4098626d75c2","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain cases, when","page_number":96,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"207c305f-9d5c-4d3c-81f2-7a0560e7daad","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":96,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"2884470c-6f25-48a5-a943-9a31cfe74368","block_type":"box","text":"enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by","page_number":96,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"dd8c5e69-3066-4c62-bd8c-d8d43c8d8189","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":96,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"300ed4de-553a-4bdf-abfb-00c195cc2c13","block_type":"box","text":"and a Fund, as a TOB Residual holder, would be responsible for reimbursement of any payments of principal and","page_number":96,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"015335a8-ba4a-4d89-866b-daf426fe7831","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":96,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"4ea774d9-6dad-4c43-a854-82ed6577021f","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a proportional","page_number":96,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"1ab8b6cc-cc06-4f9b-b387-ba4234441544","block_type":"box","text":"share of the TOB Floaters to tender their notes to the TOB Trust at par plus accrued interest. Thereafter, the Fund","page_number":96,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"28436e2d-9dd9-4e32-b5a3-308dbd3754df","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":96,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"09298d58-68b4-48db-80d4-9eb89f977713","block_type":"box","text":"exposure for the Fund to the entire return of the Municipal Bonds in the TOB Trust, with a net cash investment by the","page_number":96,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"ef86c5a3-2f1e-405b-a3ee-ced9bcef5970","block_type":"box","text":"Fund that is less than the value of the Municipal Bonds in the TOB Trust. This multiplies the positive or negative","page_number":96,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"b62077e1-1c7d-4355-ac18-b6414e478d68","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":96,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"3cdde646-5e9f-4415-bfb1-45a23c06955f","block_type":"box","text":"depends on the value of the Municipal Bonds deposited in the TOB Trust relative to the value of the TOB Floaters it","page_number":96,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"986def35-eca9-4eea-b05c-05824b839920","block_type":"box","text":"issues.","page_number":96,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"54694ed5-ecf9-43d6-81eb-06e583978647","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":96,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"c783dd39-1d7a-4b6b-a7d7-e0809c8fcb83","block_type":"box","text":"the principal amount of the TOB Floaters issued by the related TOB Trust exceeds 75% of the principal amount of the","page_number":96,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"abea9527-315b-488f-bd7f-5c65b9e6ef5b","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":96,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"11002279-8456-4188-8b01-91e7d2861728","block_type":"box","text":"The TOB Trust may be collapsed without the consent of a Fund upon the occurrence of tender option termination","page_number":96,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"efda540b-1517-47c6-a44d-4cdcef3719ac","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":96,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"0a3c35c1-a179-4042-96cc-f99525ec188b","block_type":"box","text":"include the bankruptcy or default of the issuer of the Municipal Bonds held in the TOB Trust, a substantial downgrade","page_number":96,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"8ae1932e-4f24-4b7d-9b1e-b701dc707013","block_type":"box","text":"in the credit quality of the issuer of the Municipal Bonds held in the TOB Trust, failure of any scheduled payment of","page_number":96,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"c694a11a-1c80-40c4-ab3a-911c6b9cc574","block_type":"box","text":"principal or interest on the Municipal Bonds, and a judgment or ruling that interest on the Municipal Bonds is subject","page_number":96,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"1d5004c2-b5f7-4495-94fc-e69a34b6559c","block_type":"box","text":"to U.S. federal income taxation. MTEs may include, among other things, a failed remarketing of the TOB Floaters, the","page_number":96,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"647e8afa-5194-4a4c-a32e-e86fad3753af","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity support agreement, and a substantial decline in the market","page_number":96,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"74b804ca-eded-4f7d-9a0f-56eb85c22be2","block_type":"box","text":"value of the Municipal Bonds held in the TOB Trust. Upon the occurrence of a TOTE or an MTE, a TOB Trust would be","page_number":96,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"6f70c44e-21bf-4c02-827c-bc95fc87ffb3","block_type":"box","text":"liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the remarketing","page_number":96,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"570a6c0e-5530-48fc-9a38-633a8112b840","block_type":"box","text":"agent of the TOB Floaters and the Liquidity Provider (defined below). In the case of an MTE, after the payment of fees,","page_number":96,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"bc8a6be4-f4c2-43de-80c4-3dc408653050","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":96,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"21e374fa-d61a-492e-8f61-7be9a8411239","block_type":"box","text":"i.e.","page_number":96,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"58972738-630b-43e5-b1bc-a1142a19b9ee","block_type":"box","text":", the Fund). In contrast, in the","page_number":96,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"d5a54118-3c4e-454a-a7a3-b973fe08065c","block_type":"box","text":"case of a TOTE, after payment of fees, the holders of TOB Floaters and the TOB Residual holders would be paid pro","page_number":96,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"5a4cfe33-d9c1-45d8-b70a-05291f0130fe","block_type":"box","text":"rata in proportion to the respective face values of their certificates.","page_number":96,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"461cc9bd-bee4-4e4b-8c35-8e23d86a18ab","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically supported","page_number":96,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"a8c0d1d4-52ab-4da1-b8ea-a0a71e5ee1b9","block_type":"box","text":"by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity Provider”) that allows","page_number":96,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"bb15548c-14a6-421a-ba16-8f4172d58979","block_type":"box","text":"the holders of the TOB Floaters to tender their TOB Floaters in exchange for payment of par plus accrued interest on","page_number":96,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"6967f41b-22e0-4c82-b251-abe6263af87d","block_type":"box","text":"any business day (subject to the non-occurrence of a TOTE described above). Depending on the structure of the TOB","page_number":96,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"373ddff9-beb2-4c52-9232-5662bbdc0dd5","block_type":"box","text":"Trust, the Liquidity Provider may purchase the tendered TOB Floaters, or the TOB Trust may draw upon a loan from","page_number":96,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"51df0e20-d51a-42fe-9987-b58cfac9e1c1","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":96,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"dc0baf14-1b94-46c4-b9e0-38e67c54e46c","block_type":"box","text":"When a Fund invests in TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to make a","page_number":96,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"f9ebf4e6-933f-43d2-9963-20c2e700e095","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion of the Municipal Bonds","page_number":96,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"15b31c14-2e2d-4770-8dc2-fb30811b2b61","block_type":"box","text":"held in the TOB Trust and then fund the balance, if any, of the amount owed under the liquidity facility over the","page_number":96,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"ba13cdc9-e8f0-4509-9c04-8bcb1c603844","block_type":"box","text":"liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":96,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"68f6fb4c-8ca5-4dfb-ab1b-0df379cf9016","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":96,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"c619aaa3-33e9-411b-acff-e980ab734f1e","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shortfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":96,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"fa9244d5-7ffa-4d06-8fa2-2dfbf44b2533","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised funds","page_number":96,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"1ce2e851-f4f6-4d61-8ca5-f5be25cba04e","block_type":"box","text":"participate in any such TOB Trust, these losses will be shared ratably, in proportion to their participation in the TOB","page_number":96,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"aee3702b-072c-40cd-90cf-ab6ac301259d","block_type":"box","text":"Trust.","page_number":96,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"1e01f9e8-c00b-4f64-b0c5-6d2a4486bbfb","block_type":"box","text":"Under accounting rules, Municipal Bonds of a Fund that are deposited into a TOB Trust are investments of the","page_number":96,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"5b116e2c-9339-4b1d-b52a-febdf32ff9ae","block_type":"box","text":"Fund and are presented on the Fund’s Schedule of Investments and outstanding TOB Floaters issued by a TOB Trust","page_number":96,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"cf67a06d-9cdd-4e2d-8256-b2e611906f63","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":96,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"a45a6a75-627d-4e38-abdb-e5dacba94296","block_type":"box","text":"Municipal Bonds is recorded by a Fund on an accrual basis. Interest expense incurred on the TOB Floaters and other","page_number":96,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"b6ab6d84-2e99-4c33-ae45-981285006011","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are reported as expenses","page_number":96,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"aba2f30e-b0c6-4a87-a38a-253c80c07187","block_type":"box","text":"of a Fund. In addition, under accounting rules, loans made to a TOB Trust sponsored by a Fund may be presented as","page_number":96,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"d53aa0f3-4d79-42cc-b110-4c0e34d59d01","block_type":"box","text":"loans of the Fund in the Fund’s financial statements even if there is no recourse to the Fund’s assets.","page_number":96,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"a0400565-1165-42b9-a44d-d3be0c24aeed","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":96,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"24792c6f-4dff-4b95-8b52-5fffee7928c6","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":96,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"b05aa750-f5ff-40c3-9dfb-61b950c6409f","block_type":"box","text":"II-59","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6171bf46-47e9-4130-a065-1f79bb642d23","block_type":"box","text":"NM1026U-5993100-96/236","page_number":96,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"91d17095-f031-4dec-a88d-bb404a9f1eb1","block_type":"box","text":"Since the tender option feature has a shorter term than the final maturity or first call date of the underlying Municipal","page_number":97,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"8b385227-ade6-49cd-baaf-0e2cef24d44a","block_type":"box","text":"Bonds deposited in the TOB Trust, the holder of the TOB Floaters relies upon the terms of the agreement with the","page_number":97,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"b9b953a9-edff-4c00-931b-4b366ac51a5c","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":97,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"d33a83dc-027c-47b8-a872-a7ce1f47cc4c","block_type":"box","text":"with TOB Floaters, however, may be increased in the current market environment as a result of recent downgrades to","page_number":97,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"ba310194-4e4f-4a8b-8db4-bce7a7198837","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditworthiness, of many major financial institutions, some","page_number":97,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"03f963b9-7fce-44a9-a15d-b24ff867da10","block_type":"box","text":"of which sponsor and/or provide liquidity support to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":97,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"426d04f7-33fa-4e7e-9160-5b23a3247437","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":97,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"8a4da082-96c3-4da5-9089-036d389985e9","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":97,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"550e39c6-2ef1-40f6-97c5-53ba12eaa1be","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":97,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"7bbeabe0-3417-4b4a-af3d-d16d6e70b9b0","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":97,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"9d9586fe-d123-4736-b87a-ad1e6c7a06d4","block_type":"box","text":"(i) complies with the 300% asset coverage ratio with respect to such transactions and any other borrowings in the","page_number":97,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"9941b6a6-091b-4955-8b67-5238d860c527","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":97,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"4da56ed2-5fb8-4aaf-8407-9a65ac14c805","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":97,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"89cffa99-eb2b-4c90-99f7-f8f831b6072e","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":97,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"e48091cf-b78c-4c5f-9794-2fb4d5c2f6ae","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":97,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"f28deb64-f2e8-472e-9740-dffc0789a717","block_type":"box","text":"Protection Act (the “Volcker Rule”), market participants have developed a structure for TOB Trusts designed to","page_number":97,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"d9756844-cebc-423f-8ac6-7cc08577ee85","block_type":"box","text":"ensure that no banking entity is sponsoring the TOB Trust for purposes of the Volcker Rule. Specifically, a Fund will","page_number":97,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"1d3742bd-9f4a-47e5-8f1c-a8d5c089572b","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain","page_number":97,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"5c7580da-1fbe-442f-ad1d-fd4024b113f5","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be performed by, or on behalf of, a Fund. A Fund","page_number":97,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"209dc2f2-1af7-490d-8ee3-9cd52d40ecf2","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":97,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"6720ab99-2a8b-4334-86ff-afd2756d41ec","block_type":"box","text":"could limit the market for such structured TOB Trust transactions or a Fund’s ability to hold TOB Residuals. Under","page_number":97,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"70e330be-4a06-4c9a-8107-4fd73fd45d3d","block_type":"box","text":"this TOB Trust structure, a Fund has certain additional duties and responsibilities, which may give rise to certain","page_number":97,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"41a54810-e5ba-4917-b72c-78df9d347be2","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":97,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"0dc58fc9-b95c-4aed-ada1-ed0d7d0f4046","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":97,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"babfe8df-91ca-4825-88e3-09c6fe075bb5","block_type":"box","text":"remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual holder. Similar to the","page_number":97,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"1fa3ae28-91a4-4686-bc08-eca59a2e4715","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":97,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"54a89bd4-7bcf-4c78-98f8-902ef3a37cbf","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-party investors, and the proceeds of the sale of","page_number":97,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"f25d9965-4e8f-4f52-be00-ee33a4a02805","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":97,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"5ee34d54-62be-472e-8e76-688443bd8151","block_type":"box","text":"i.e.","page_number":97,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"7aadfbb7-a1bf-4bf8-b6e5-248ca876e092","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":97,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"721435d4-fc8c-4dcb-8f69-b6bad8a62d5f","block_type":"box","text":"supported by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":97,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"6b7ed116-4555-4c18-9b8c-84aa8490c279","block_type":"box","text":"TOB Floaters for its own account in the event of a failed remarketing, which may increase the likelihood that a TOB","page_number":97,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"4fc57b17-b853-4f1f-8b9d-9784142b59f7","block_type":"box","text":"Trust will need to be collapsed and liquidated in order to purchase the tendered TOB Floaters. In the event of a failed","page_number":97,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"ca10d409-31ca-4544-87d3-9855a159a20e","block_type":"box","text":"remarketing of TOB Floaters, the Liquidity Provider, at its option, may advance a loan to the TOB Trust the proceeds","page_number":97,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"12369a7b-6c35-46a6-9e9e-a51914db5ed3","block_type":"box","text":"of which would be used by the TOB Trust to purchase the tendered TOB Floaters. The Liquidity Provider is not","page_number":97,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"18d72b21-390b-47e4-9e9e-ff87dbefcacd","block_type":"box","text":"obligated to advance such a loan. The TOB Trust would be the borrower with respect to any such loan. Any loans","page_number":97,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"4d6a53b7-fd8d-41aa-9668-35d7ea483054","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":97,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"dc9b188e-2eae-4f34-879f-66f2706b6736","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":97,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"c194b65e-686a-47a8-819a-d63a94060135","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would generally be no","page_number":97,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"3cd51e80-040a-4520-82f0-def7ea83d988","block_type":"box","text":"contractual recourse to the Fund’s assets if the Fund holds a non-recourse TOB Residual. However, as described","page_number":97,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"6e1a6611-f52e-49cf-a191-76c61695edf1","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shortfall if it holds a recourse TOB Residual.","page_number":97,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"fb067b87-b0c2-49c3-8eba-232921f594f5","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":97,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"f97878f6-0e61-4bd7-8ecd-2661b63fd954","block_type":"box","text":"(the “Risk Retention Rules”), which took effect in December 2016. The Risk Retention Rules require the sponsor of a","page_number":97,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"23bde440-5ff5-4edf-9935-9d62cd79950d","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s Municipal","page_number":97,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"935db73c-633b-435f-8e36-9f67b113ae1a","block_type":"box","text":"Bonds. The Risk Retention Rules may adversely affect the Fund’s ability to engage in TOB Trust transactions or","page_number":97,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"54d173e0-20dd-4f1d-a690-7a847b134403","block_type":"box","text":"increase the costs of such transactions in certain circumstances.","page_number":97,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"8c4c5fae-cc6b-4102-963b-b45b1cbbd615","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":97,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"f850eb87-1c65-4b0b-9821-4b4c0a61dc7f","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":97,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"0072717e-e441-4369-ac14-7b273e11a2f6","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":97,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"baaed9ea-dd08-4247-b4f8-8f72f2f279e4","block_type":"box","text":"could adversely affect the Funds. The ultimate impact of these rules on the TOB market and the overall municipal","page_number":97,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"8aa82ca7-0f2f-4e78-a572-f3b779a8aa1c","block_type":"box","text":"market is not yet certain.","page_number":97,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"396a3d43-d473-43e4-906c-75de7b855c21","block_type":"box","text":"Yields.","page_number":97,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"4e7f1de6-2e2d-4b92-b093-a34ec2ce6e25","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":97,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"cbc0a5b5-25c4-4efd-92f9-7d84244ee297","block_type":"box","text":"money market and of the municipal bond market, the size of a particular offering, the financial condition of the","page_number":97,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"f7a039c8-cbea-4c86-8edf-0ba6321a0634","block_type":"box","text":"issuer, the maturity of the obligation and the rating of the issue. The ability of a Fund to achieve its investment","page_number":97,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"e5b4eea6-2e37-448a-b78e-935b384a2554","block_type":"box","text":"objective is also dependent on the continuing ability of the issuers of the securities in which the Fund invests to meet","page_number":97,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"dbfaefef-55b9-461f-a05a-3ae17958194a","block_type":"box","text":"their obligations for the payment of interest and principal when due. There are variations in the risks involved in","page_number":97,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"fd94f901-5ebf-4cdb-958d-ed3551d70192","block_type":"box","text":"II-60","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a2acb7ec-9ece-486a-a4ec-4819fc8e4f03","block_type":"box","text":"NM1026U-5993100-97/236","page_number":97,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3f8e3efc-6f6d-4941-82b0-c713f28690cb","block_type":"box","text":"holding Municipal Bonds, both within a particular classification and between classifications, depending on numerous","page_number":98,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"14149299-efee-4a4f-810a-52c6237c6765","block_type":"box","text":"factors. Furthermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":98,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"b8e3f0c5-7695-4336-9285-59a1f5edaa9b","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights","page_number":98,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"0a4a5078-db1e-470a-8eda-c47385ce9fa1","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of certain remedies.","page_number":98,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"bcd915b8-648c-4d3d-8acf-4e94e1449fe4","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":98,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"ae73ddbe-d8b9-45ed-aec5-c3ec7d5360d5","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":98,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"fddb4cb7-801e-4fae-aa2e-17660e255459","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the part of the holder thereof to receive payment","page_number":98,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"b59ee2a5-510c-47b7-b92d-0ddf86bb8eb1","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a short notice period not to exceed seven days.","page_number":98,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"da5bb004-8ee4-4758-a6ad-8510a314b4e3","block_type":"box","text":"There is the possibility that because of default or insolvency the demand feature of VRDOs may not be honored.","page_number":98,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"b44f4356-66a0-4eb8-b4ce-26959a3ababd","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":98,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"76e5ba5d-460b-4f5a-a82c-87e4168b8007","block_type":"box","text":"adjustment formula being calculated to maintain the market rate of the VRDOs at approximately the par value of the","page_number":98,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"8454fc42-3b86-4f10-b92c-09d19a99bcc3","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":98,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"6a7bebdb-97fa-4231-a407-ed2429a82612","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":98,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"b4b89dd4-8e01-48c5-97ca-33ff424debe4","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":98,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"2efb2a4e-466c-4afc-bc4e-1ae81feacd34","block_type":"box","text":"During periods of declining interest rates, a Fund’s yield on a VRDO will decrease and its shareholders will forego the","page_number":98,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"a7bd7080-95ba-45b2-b725-16c8a3b85809","block_type":"box","text":"opportunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":98,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"7349ba92-89ed-459c-bac9-bedb3dddc687","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":98,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"edc253ac-38ae-44a9-aaeb-791d48f0e6a1","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":98,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"3a851f2b-b7c7-42da-b52d-4f3b1380264c","block_type":"box","text":"The Municipal Funds and certain other funds","page_number":98,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"001990c2-54a0-4735-9c75-288e95252d67","block_type":"box","text":"deal in financial futures contracts based on a long-term municipal bond index developed by the Chicago Board of","page_number":98,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"fc4239bc-be9d-4c69-913a-b2f0648394ca","block_type":"box","text":"Trade (“CBT”) and The Bond Buyer (the “Municipal Bond Index”). The Municipal Bond Index is comprised of 40 long","page_number":98,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"098dfd3e-cd69-402e-8738-18a7148ebe6f","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":98,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"ab34f7b7-6daa-43a4-b545-360d63fc9b6d","block_type":"box","text":"Bond Index must be rated A or higher by Moody’s or S&P and must have a remaining maturity of 19 years or more.","page_number":98,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"fc9b1c69-150f-4d37-b6c1-a6ceead96a3e","block_type":"box","text":"Twice a month new issues satisfying the eligibility requirements are added to, and an equal number of old issues are","page_number":98,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"6078fdee-332c-434f-9068-36b89c2264c5","block_type":"box","text":"deleted from, the Municipal Bond Index. The value of the Municipal Bond Index is computed daily according to a","page_number":98,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"0ba2a3cd-1a02-4b44-96de-14ab24a9fe0e","block_type":"box","text":"formula based on the price of each bond in the Municipal Bond Index, as evaluated by six dealer-to-dealer brokers.","page_number":98,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"342c1acc-fdf2-4320-a413-7ea31d9850db","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":98,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"f24ab873-c2d8-4c48-b3e0-8beb75ea400d","block_type":"box","text":"assures performance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":98,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"61565674-e2a8-40c9-baac-03a4934ff0eb","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":98,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"93c89f60-9723-450e-90bb-fcd4ab3b6559","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":98,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"2e91dfd7-d3f8-4376-9ad0-cb390a7c8ac8","block_type":"box","text":"contract may vary from the bonds held by a Municipal Fund. As a result, a Municipal Fund’s ability to hedge","page_number":98,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"372bc0cf-04ed-4a8e-906a-c40579f3d71d","block_type":"box","text":"effectively all or a portion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":98,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"e7c6910f-f1f4-4a68-8c97-01099bf7a739","block_type":"box","text":"depend in part on the degree to which price movements in the index underlying the financial futures contract","page_number":98,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"29cae7da-8822-4c19-865b-6d610c185aa2","block_type":"box","text":"correlate with the price movements of the Municipal Bonds held by the Fund. The correlation may be affected by","page_number":98,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"79ed23b3-a029-43d0-89fb-37c7d7f5aa93","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":98,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"9251f2a8-7c1b-46ee-b0db-b07742e14116","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":98,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"61e59471-ad23-43be-b202-659d8717e9a4","block_type":"box","text":"correlation between movements in the value of the Municipal Bond Index may be subject to change over time as","page_number":98,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"9a8ada95-6e3e-4403-a02c-5843adf08271","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":98,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"913fbe3e-e1b6-4099-afca-cbf46bea2db9","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":98,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"069b146f-42b5-44a5-90f4-f6e243232754","block_type":"box","text":"affected by similar factors and the risk of imperfect correlation between movements in the prices of such futures","page_number":98,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"089bbb2c-60e0-44fc-87f3-ee0c2ade13db","block_type":"box","text":"contracts and the prices of Municipal Bonds held by a Municipal Fund may be greater. Municipal Bond Index futures","page_number":98,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"1c05cdc4-40f4-47a7-b49e-5e1f46fca8e6","block_type":"box","text":"contracts were approved for trading in 1985. Trading in such futures contracts may tend to be less liquid than trading","page_number":98,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"9582ae0f-81ce-414a-850a-4d8ba2ca7714","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to certain market risks, such as inadequate","page_number":98,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"955af73b-8934-4d7e-a6c0-200ac3bae999","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":98,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"f08ecb1f-0afd-45e0-b494-cb02ef769c5b","block_type":"box","text":"Call Rights.","page_number":98,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"b0b146fd-4628-4749-8b3f-046e68d1adb4","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a portion of such Municipal Bond","page_number":98,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"5b0d279b-d0fa-47d2-b318-dbed312f0b8c","block_type":"box","text":"for mandatory tender for purchase (a “Call Right”). A holder of a Call Right may exercise such right to require a","page_number":98,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"d8f4de9a-3048-4ef0-857c-d29dab08e6f3","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to certain conditions. A Call Right that is not","page_number":98,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"e386c432-9922-44ef-a707-8976556bf768","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":98,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"7ebf7b8a-4136-4332-8805-1f5dcd8ead3c","block_type":"box","text":"both the Call Right and the related Municipal Bond is identical to holding a Municipal Bond as a non-callable security.","page_number":98,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"46948434-851f-4d5a-82d8-cbd259289503","block_type":"box","text":"Certain investments in such obligations may be illiquid.","page_number":98,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"78d01427-a6f2-4391-b2cf-a8b07db24f63","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":98,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"0470fc85-19d7-4b30-85e2-b7ce17609fc0","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":98,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"68cb4634-64d9-43f2-8940-b34fc6a898a0","block_type":"box","text":"fluctuations or to enhance a Fund’s income, a Fund may enter into interest rate swap transactions such as Municipal","page_number":98,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"51fe1a3e-411f-4c2f-83dc-3a3c253af61f","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":98,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"6a2e2706-3c8b-46a8-a5a9-0aa558ae2488","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":98,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"3d398336-cbe7-44db-94b3-5e1917bfd7e1","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a particular investment or portion of its portfolio or to","page_number":98,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"2b9aa287-56c2-49b0-814d-c969478fdee4","block_type":"box","text":"protect against any increase in the price of securities the Fund anticipates purchasing at a later date. A Fund intends","page_number":98,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"572e5436-3d8b-4ed6-83ee-35eb65e9ce8b","block_type":"box","text":"II-61","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4cb22307-414d-4dbf-84b1-fe68897ae3f3","block_type":"box","text":"NM1026U-5993100-98/236","page_number":98,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5dccbf61-fae9-40d5-b6e9-83a2dd84b843","block_type":"box","text":"to use these transactions primarily as a hedge rather than as a speculative investment. However, a Fund also may","page_number":99,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"a02ba59d-9d10-433c-aa6e-a6e5a971c0da","block_type":"box","text":"invest in MMD Swaps and SIFMA Swaps to enhance income or gain or to increase the Fund’s yield, for example,","page_number":99,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"362ff89e-e225-452e-aca4-0db3dcc9d8d9","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":99,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"086c1d2a-d9ce-492c-ac49-091fa8dcd4f6","block_type":"box","text":"i.e.","page_number":99,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"9063cfeb-e58d-4b2c-b969-128ff97b8f18","block_type":"box","text":", wide differences between short-term and long-term interest","page_number":99,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"3016d253-f7ae-4fb4-9c24-12caa8b4c11b","block_type":"box","text":"rates).","page_number":99,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"866da28c-50ef-4220-9d31-872ee6b8c947","block_type":"box","text":"A Fund may purchase and sell SIFMA Swaps in the SIFMA swap market. In a SIFMA Swap, a Fund exchanges with","page_number":99,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"34733274-d5e5-44a0-a130-5c238719969c","block_type":"box","text":"another party their respective commitments to pay or receive interest (","page_number":99,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"42666107-8785-4eaf-b271-031bc4c9bfb2","block_type":"box","text":"e.g.","page_number":99,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"f59578e5-f4b5-42c5-9fa2-37b76db94099","block_type":"box","text":", an exchange of fixed rate payments for","page_number":99,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"b33a328c-4ba5-42b9-8977-56994b8a0949","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":99,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"a8893969-ff53-4d58-ba45-a5e890ed21c4","block_type":"box","text":"index, SIFMA Swaps may reduce cross-market risks incurred by a Fund and increase a Fund’s ability to hedge","page_number":99,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"ba61fb9d-c3b7-4d14-a30d-84eb20902457","block_type":"box","text":"effectively. SIFMA Swaps are typically quoted for the entire yield curve, beginning with a seven day floating rate index","page_number":99,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"b3485864-910c-427e-8cc5-47f536ef4bda","block_type":"box","text":"out to 30 years. The duration of a SIFMA Swap is approximately equal to the duration of a fixed-rate Municipal Bond","page_number":99,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"2dfa9f1f-5491-4d24-a22a-32342586e4e2","block_type":"box","text":"with the same attributes as the swap (","page_number":99,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"148cde6d-36c6-4e0c-80eb-fbd3b957ee1d","block_type":"box","text":"e.g.","page_number":99,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"4b4032af-d197-45a8-817d-a405af0ddb3f","block_type":"box","text":", coupon, maturity, call feature).","page_number":99,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"d93fb9e1-6de6-4ed3-8eb0-273fd52f6ba9","block_type":"box","text":"A Fund may also purchase and sell MMD Swaps, also known as MMD rate locks. An MMD Swap permits a Fund","page_number":99,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"68645dd1-8362-4729-b8cc-a7d36f786acc","block_type":"box","text":"to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular","page_number":99,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"6bf73d40-c6d5-40c4-bbee-f30458c2e310","block_type":"box","text":"investment or a portion of its portfolio as a duration management technique or to protect against any increase in the","page_number":99,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"30e232aa-d109-4186-964e-d3a2fae9c7fb","block_type":"box","text":"price of securities to be purchased at a later date. By using an MMD Swap, a Fund can create a synthetic long or","page_number":99,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"1233105a-439a-4e39-ac8d-17c2b2faa8e8","block_type":"box","text":"short position, allowing the Fund to select the most attractive part of the yield curve. An MMD Swap is a contract","page_number":99,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"ae36de00-5cbb-4dcf-8283-36485306e6c3","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the parties agree to make payments to each other on","page_number":99,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"f3c0e4da-1201-4854-862e-4045f655f662","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":99,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"046f0003-f0c0-4916-801b-c4dbd75e8e90","block_type":"box","text":"below a specified level on the expiration date of the contract. For example, if a Fund buys an MMD Swap and the","page_number":99,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"d7204e86-a85c-40a0-a86e-5b03c65c7257","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":99,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"3c9bd530-2b5d-4d37-adf8-70c91ee24920","block_type":"box","text":"counterparty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":99,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"b2877985-bdde-4676-933d-5dfd1b973ccf","block_type":"box","text":"multiplied by the notional amount of the contract. If the Municipal Market Data AAA General Obligation Scale is above","page_number":99,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"7468a7eb-4d4a-499b-8d77-706f5543a1c7","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterparty equal to the actual level","page_number":99,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"425476f4-83d9-49b1-9d7e-4fbd9affb387","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":99,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"5eece42e-a19d-4b4e-a9a8-f386ac27acd5","block_type":"box","text":"In connection with investments in SIFMA and MMD Swaps, there is a risk that municipal yields will move in the","page_number":99,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"58c9c96d-071a-4e92-bdcf-c5251508c719","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterparty in","page_number":99,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"86b7bb47-9d9b-428e-b185-7a10b069790e","block_type":"box","text":"the transaction that could adversely affect the Fund’s performance.","page_number":99,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"bbe0eeb4-aa75-4bae-be7c-9763e10f9748","block_type":"box","text":"Insured Municipal Bonds.","page_number":99,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"62d8e5f5-5f3c-4635-97bd-9e9bb525ae48","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":99,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"dc87f3c9-6c3b-487c-8090-a68373fc594a","block_type":"box","text":"payments on the bond will be made on time and the principal will be repaid when the bond matures. Either the issuer","page_number":99,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"4f7e21f6-f738-4cfe-8187-ddc20c840718","block_type":"box","text":"of the bond or the Fund purchases the insurance. Insurance is expected to protect the Fund against losses caused by","page_number":99,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"1110771f-867f-47f3-baac-2475b6b974e3","block_type":"box","text":"a bond issuer’s failure to make interest or principal payments. However, insurance does not protect the Fund or its","page_number":99,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"7223b3ea-2891-4f04-ac6f-d532e0ecde92","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be certain that any","page_number":99,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"f2040a0b-3c1b-44a6-b8e5-82db16f3459e","block_type":"box","text":"insurance company does not make these payments. In addition, if the Fund purchases the insurance, it may pay the","page_number":99,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"982d2218-31c1-4543-aac7-911100193ff1","block_type":"box","text":"premiums, which will reduce the Fund’s yield. The Fund seeks to use only insurance companies with claims paying","page_number":99,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"1ebd853e-bc73-478c-b5fe-77871a5bbde5","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":99,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"1e285e88-cd0b-4593-8cef-94c50cc6a6f8","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":99,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"56fe356b-2098-4550-a8cc-719ad342bf75","block_type":"box","text":"insurance or insured bonds. If a bond’s insurer fails to fulfill its obligations or loses its credit rating, the value of the","page_number":99,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"fa30aba9-cd14-4473-80c8-1fe568670c79","block_type":"box","text":"bond could drop.","page_number":99,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"8af189c4-141a-4f96-abee-20dc929a4877","block_type":"box","text":"Build America Bonds.","page_number":99,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"41f201ec-c583-4ea8-a783-2badbcdab40f","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":99,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"91018669-3958-425b-8033-48792b860551","block_type":"box","text":"income tax credit; however, the issuer of a Build America Bond may instead elect to receive a cash payment directly","page_number":99,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"f0a72362-bdc7-41a1-afbb-f77ce05f691e","block_type":"box","text":"from the federal government in lieu of holders such as the fund receiving a tax credit. The interest on Build America","page_number":99,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"33b88fab-fb9c-496d-b91b-6b5068cf9dcf","block_type":"box","text":"Bonds is taxable for U.S. federal income tax purposes. If the Fund does receive tax credits from Build America Bonds","page_number":99,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"2a53e394-2e84-4f4c-a7ae-198ee6c76c26","block_type":"box","text":"or other tax credit bonds on one or more specified dates during the fund’s taxable year, and the Fund satisfies the","page_number":99,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"eb39a4f7-d273-4185-b232-fc1ef17cdee4","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":99,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"b35e59b1-2d1a-489f-b6a4-9bd4bb1f9f51","block_type":"box","text":"shareholders tax credits otherwise allowable to the Fund for that year with respect to such bonds. A tax credit bond","page_number":99,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"0445015c-40d6-47db-8fea-88b3f5091e8a","block_type":"box","text":"is defined in the Code as a “qualified tax credit bond” (which includes a qualified forestry conservation bond, a new","page_number":99,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"4bab5059-da9c-4e6a-b028-728c1e3a8e32","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":99,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"f6c16c44-a372-41c1-9b7b-669f67642146","block_type":"box","text":"must meet certain requirements specified in the Code), a “Build America Bond” (which includes certain qualified","page_number":99,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"3313ccc1-898a-4cd3-9149-f2310e7759d7","block_type":"box","text":"bonds issued before January 1, 2011) or certain other specified bonds. If the Fund were to so elect, a shareholder","page_number":99,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"92eab7ab-75a2-437b-bfb1-94b490609e84","block_type":"box","text":"would be required to include in income and would be entitled to claim as a tax credit an amount equal to a","page_number":99,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"665be94a-78b5-40e2-8ffb-9f436b13da58","block_type":"box","text":"proportionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":99,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"a33bf94d-4c99-47a4-8853-f023fc24ccac","block_type":"box","text":"Certain limitations may apply on the extent to which the credit may be claimed.","page_number":99,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"c47fd4ec-d6de-414e-bbd6-4ae06fcaf597","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":99,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"37fe746b-f6f3-4a04-99f3-609386827d02","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which may be in","page_number":99,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"6f8e9799-764d-447d-8960-c681f98f5efa","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, participations, beneficial interests in a trust,","page_number":99,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"0035463b-fb72-498d-87c7-616cac357d53","block_type":"box","text":"partnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":99,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"3d624df1-1c55-4e24-93ec-86cc951ae9bf","block_type":"box","text":"II-62","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"af59d6fe-b762-4d47-99ac-02846631f59f","block_type":"box","text":"NM1026U-5993100-99/236","page_number":99,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7d2ac568-9c5d-45e0-82ea-aabd9f323ff2","block_type":"box","text":"of the structures used by certain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":100,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"6a82580b-e3ab-47cf-85d1-0fd04a1c862d","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":100,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"cea5484b-1c0c-4055-a23f-3e3bbd2ff245","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":100,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"c287347c-e909-440f-ad35-884be48bbf13","block_type":"box","text":"municipal debt obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":100,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"07265e09-d39d-4c26-887d-7d5216cf8c05","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":100,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"fb15967c-b2ee-4086-a278-681045378bd0","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":100,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"bfeb07a8-400d-4959-a2df-9f53cd141db7","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":100,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"4d36a9b9-6e86-4217-a9d2-c9aee02362a2","block_type":"box","text":"their face value to the sponsor (","page_number":100,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"a59c2b43-b2e5-4f9c-9a28-2ab934224dd8","block_type":"box","text":"e.g.","page_number":100,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"3cf05891-74fe-464f-8f6d-deaadc22f3ed","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":100,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"a79706c4-d9e9-4bbd-b84e-b81287d6bda4","block_type":"box","text":"periodic fees equal to the difference between the securities’ fixed coupon rate and the rate that would cause the","page_number":100,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"c676a26d-81fb-45d6-a285-769d0425bc13","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":100,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"eca76a1f-9a19-44f4-9e4a-f34515bf3393","block_type":"box","text":"A participation interest gives the Fund an undivided interest in a Municipal Bond in the proportion the Fund’s","page_number":100,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"3ac51515-e040-40ab-8be1-46ffc9f2885f","block_type":"box","text":"participation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":100,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"6d43946c-0ea6-41a2-9fe3-9b9da867eb76","block_type":"box","text":"feature for all or any part of the full principal amount of the participation interest, plus accrued interest. Trusts and","page_number":100,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"cfb1eff0-dd28-46e3-a1d2-3b9576b695e7","block_type":"box","text":"partnerships are typically used to convert long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":100,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"0c49680e-50dd-4e6f-9363-17f88d13433b","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":100,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"765424d3-6fd7-4dc1-9c03-23789bc344ba","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt obligations","page_number":100,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"db1f34d8-a0db-4476-a1b0-507990f8137d","block_type":"box","text":"which give the holder the right to receive payment of principal subject to the conditions described above. The IRS has","page_number":100,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"e6bd71b9-86f0-4eef-b1f1-c3df0b477151","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of participation interests","page_number":100,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"db5e79b1-6142-47a6-8c5e-f70809eac3ed","block_type":"box","text":"or custodial receipts is tax-exempt, and accordingly, purchases of any such interests or receipts are based on the","page_number":100,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"38393055-3f29-4834-b1f6-029525a706c4","block_type":"box","text":"opinions of counsel to the sponsors of such derivative securities. Neither a Fund nor its investment adviser or sub","page_number":100,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"2e69b8eb-ca45-4d6c-8850-ab6c9e379250","block_type":"box","text":"advisers will review the proceedings related to the creation of any tax-exempt municipal investments or the basis for","page_number":100,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"189a297d-ee9f-40c2-ac3a-f201029c6e1d","block_type":"box","text":"such opinions.","page_number":100,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"63842a52-29a8-42d0-a34e-1e0fb4b7923e","block_type":"box","text":"Operational and Technology Risks.","page_number":100,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"0280db44-e545-47fb-b4be-b9742ab9c028","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":100,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"c87e70df-939f-4844-ac74-eadf79a1dc1c","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":100,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"cdf812be-c69b-43d4-9f53-43bd11ff609c","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of artificial intelligence and machine","page_number":100,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"23d2e3f1-560a-4ca8-8e89-002cc50431f0","block_type":"box","text":"learning (“AI”), which may result in losses for the Fund and its shareholders or impair the Fund’s operations. These","page_number":100,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"d74ae92f-a285-4b7b-95c4-b1092ac864be","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":100,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"a0986b40-105e-494b-ae56-8d237f89178a","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":100,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"da97b499-8d7a-4a83-bf6b-26e9ca74279b","block_type":"box","text":"counterparties, market makers, Authorized Participants, listing exchanges, other financial market operators, and","page_number":100,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"0fa94b63-2eec-4614-a4af-5d7f196d1136","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":100,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"90c611c6-8104-4ca1-86d1-ccf41336d5f6","block_type":"box","text":"could also result in material adverse consequences for such issuers and may cause the Fund’s investments in such","page_number":100,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"bfe5273f-b467-4528-ae78-e9352a2d4936","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":100,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"1d1c4f80-7d84-47b5-9513-9d15c9e4f535","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":100,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"a537e5a7-575e-4255-9c78-33c0ab1794f1","block_type":"box","text":"Fund invests, the Fund or any of its service providers. They include, but are not limited to, gaining unauthorized","page_number":100,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"b2f8213d-e624-4609-ba4e-23bea2ce5d98","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":100,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"a247d13d-4512-44e5-8f85-71d69085b948","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":100,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"ab03d8de-01ac-46ad-ac0a-3d54fbe23d41","block_type":"box","text":"particularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":100,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"ed2df68c-8251-4779-9075-e6167b3a5662","block_type":"box","text":"any of the following: financial losses; interference with the Fund’s ability to calculate its NAV; disclosure of","page_number":100,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"c7d68885-e85b-49ec-b097-51d92d604e1b","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":100,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"dbafc6d8-5ee3-4916-914b-8733cc7d6e8b","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":100,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"b30f3f01-1181-4d5e-873d-957cc86a6e8f","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":100,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"5bb574cc-3558-406e-b295-df40986fe88e","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":100,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"9d95fc48-2af5-4dc1-b152-7c9e79c4d648","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":100,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"40cbc965-daba-45fb-b1da-8523c5764187","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":100,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"4461dafb-f5a5-46b8-8cb4-fe14cb468e0c","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":100,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"3c434da6-ab90-4990-a891-9823a3a9e931","block_type":"box","text":"upon by the Fund or its service providers, as well as market events that occur at a pace that overloads these","page_number":100,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"c6a07fb9-42d7-49ca-aea3-c9128b89e5d7","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":100,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"dbb6ab27-c058-4645-9b68-d099c39a9095","block_type":"box","text":"to the Fund and its portfolio investments. These advancements could harm the Fund and its portfolio investments by","page_number":100,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"8a7a9831-b602-40ac-9adf-067276e4f958","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s portfolio investments. Additionally,","page_number":100,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"286db705-e659-4053-bfd8-cb972592cde1","block_type":"box","text":"these advancements could significantly disrupt the Fund’s portfolio investments and subject them to increased","page_number":100,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"011573c8-82d1-4c8a-87b5-52a3c0158727","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":100,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"b8b07d94-4bd6-422e-96fb-955133c61629","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":100,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"fe153c48-61d1-4341-8b3c-1f0217925995","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":100,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"89c306ac-dde6-4e77-904c-a13bb188bb68","block_type":"box","text":"infrastructure assets.","page_number":100,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"3c11dccd-39a2-4f4b-985e-b2588d825897","block_type":"box","text":"II-63","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bcfcec51-e456-4847-b3df-3049b392539d","block_type":"box","text":"NM1026U-5993100-100/236","page_number":100,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d02b79a2-9dd5-4723-8758-0a8ec7578f87","block_type":"box","text":"The Fund and its portfolio investments could be exposed to the risks of AI technology if third-party service","page_number":101,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"b1ed3d3c-a7f7-40ee-8d98-3c09931cff8c","block_type":"box","text":"providers or any counterparties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":101,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"d3108662-ae78-4df0-9aec-bfda10c80e84","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-party products","page_number":101,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"3fc5edcf-75ff-4370-8b66-1edae327ddb8","block_type":"box","text":"or services.","page_number":101,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"4dcb8b23-c0ed-4e91-981b-bf772e5c39ba","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":101,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"a67de0a7-2e47-4ca8-be62-a4dff030a766","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":101,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"618018b1-6c08-48c9-9166-986babfdc563","block_type":"box","text":"other third-party AI technology applications and users.","page_number":101,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"cf5776e0-b7e3-418f-a211-765702d641ea","block_type":"box","text":"Independent of its context of use, AI technology is generally highly reliant on the collection and analysis of large","page_number":101,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"ac27f553-4c2b-4ce5-9309-b006e8daad9b","block_type":"box","text":"amounts of data, may incorporate biased or inaccurate data, and it is not possible or practicable to incorporate all","page_number":101,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"5e715021-d857-406d-b7be-a26dfcf19753","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Certain data in such models will inevitably","page_number":101,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"667e358a-cb4b-4b7b-afc9-588fef430763","block_type":"box","text":"contain a degree of inaccuracy and error, or could otherwise be inadequate or flawed, which would be likely to","page_number":101,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"c23bacd4-1d16-4489-b5d0-5ee9101717cf","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":101,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"140a5ce5-9536-4194-b8ee-76b64017c412","block_type":"box","text":"incomplete, erroneous, distorted, or misleading. Further, AI tools may lack transparency as to how data is utilized","page_number":101,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"4336a22c-f60c-43fa-8d1a-78d56da90e93","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":101,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"0024d29d-3b32-499e-9d6c-ab5707f5b884","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its portfolio investments are exposed to the risks of","page_number":101,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"437dbda5-5e87-49f6-bd08-460c8a955c4f","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":101,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"91786438-cbc9-425b-abe5-4ec8b53fe410","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to monitoring and","page_number":101,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"419108a0-238b-4f5d-a4dd-94885571de3e","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Department of Justice, Consumer","page_number":101,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"86f633c9-7580-4a65-9672-90a925bd7913","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission released a joint statement on","page_number":101,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"8885cca7-dfc0-45a9-8ef4-8bd3576aacce","block_type":"box","text":"artificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":101,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"a4838132-2c39-4675-b2cb-c72dd9e09a1d","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":101,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"de4a160e-bfbc-4e83-8566-9918e5ecd82e","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Artificial","page_number":101,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"709883a2-f711-4625-ae4b-f9a44d72c74a","block_type":"box","text":"Intelligence Act, which applies to certain AI technology and the data used to train, test, and deploy them, which may","page_number":101,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"5925882d-0f83-4e25-a612-3b8c50733e3e","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":101,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"89782387-6a84-45b4-bc8f-dfafd92b2789","block_type":"box","text":"adviser, or the Fund’s portfolio investments fail to comply.","page_number":101,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"3034cd78-ef2a-435b-a4cf-3ae82ced631d","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":101,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"1cad8f9e-2525-467d-8f6a-f7dec864efaa","block_type":"box","text":"and it is impossible to predict the future risks that may arise from such developments. The full extent of current or","page_number":101,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"42ad5cd4-e7d4-4112-a7c8-e0669a8c82bb","block_type":"box","text":"future risks related thereto is not possible to predict, and the Fund may not be able to anticipate, prevent, mitigate,","page_number":101,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"c8c6e88b-1b60-45cc-a6f0-2bb3c0bea546","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":101,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"49660b4f-7f4d-4269-b9de-a34a7ad6af20","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":101,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"2d43ff7f-ada5-46be-83df-221c62b902a9","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":101,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"ac2742ac-ba20-4129-b7ff-6580663e6e92","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":101,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"faf2523e-1332-4f36-8816-56b44ab918b1","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":101,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"435fce3d-2ac1-4eef-b793-cef201be89c5","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":101,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"45c99871-a6b1-432d-89ea-af0153357c62","block_type":"box","text":"plans and systems, including the possibility that certain risks that may affect the Fund have not been identified or","page_number":101,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"10cf8d57-69ce-4631-a3cd-b5ef9bdb6114","block_type":"box","text":"may emerge in the future; that such plans and systems may not completely eliminate the occurrence or mitigate the","page_number":101,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"66a1bc18-4cbe-4bae-8313-7fe8e706d99f","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":101,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"09957470-2c2d-4511-9f01-bbf1342caf12","block_type":"box","text":"and remediation efforts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":101,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"c9029f39-0a68-4f29-a26e-1110cc44c70b","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":101,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"43e55ed4-1a83-4b83-a503-67539f9214f2","block_type":"box","text":"counterparties, and other third parties whose activities affect the Fund.","page_number":101,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"3069990e-68f6-4f50-88ac-f834d02dbff1","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":101,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"f3627f39-d2ad-4aea-b697-8a258388da27","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":101,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"c7559934-cb56-4bc0-8ebd-b919fe2af278","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":101,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"d72daf07-3229-44b4-8985-853006d914b5","block_type":"box","text":"resources to monitor and implement required changes.","page_number":101,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"3fd787d7-2fbb-4035-a852-04ef8cf04e9a","block_type":"box","text":"Participation Notes.","page_number":101,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"5896cb3c-7e79-4d8a-b02a-4bd565a093e7","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":101,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"9779049b-667a-44cc-bc61-cabe2feb7b00","block_type":"box","text":"Fund to a return measured by the change in value of an identified underlying security or basket of securities","page_number":101,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"89bc70e0-d2ce-4a77-a39e-d4523ba44c46","block_type":"box","text":"(collectively, the “underlying security”). Participation notes are typically used when a direct investment in the","page_number":101,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"4ecec2ea-4939-45bd-8fec-96c8e4d1196d","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":101,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"bfef9384-8e9f-4e8b-8479-0a44e5d4710c","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note is not","page_number":101,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"a2841501-ec3c-4b2d-af70-2bfe3ab6c85c","block_type":"box","text":"the same as investment in the constituent shares of the company. A participation note represents only an obligation","page_number":101,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"f818bca8-b4ef-47ec-a77f-1ec3715fc1fe","block_type":"box","text":"of the issuer to provide the Fund the economic performance equivalent to holding shares of an underlying security. A","page_number":101,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"72336f5e-d11b-4000-8513-e26b27d2ece8","block_type":"box","text":"participation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":101,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"824e0b15-799f-4bfa-bb69-303b4fa9df2f","block_type":"box","text":"security. In other words, shares of the underlying security are not in any way owned by the Fund. However, each","page_number":101,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"fa4cb920-166a-44c1-ba8f-d74940fbb9ea","block_type":"box","text":"participation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":101,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"a8404962-e4a1-4205-9623-857565e169ad","block_type":"box","text":"II-64","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cc7b6434-9c2f-4af8-88cf-f58fcbd166ea","block_type":"box","text":"NM1026U-5993100-101/236","page_number":101,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"efe03f89-b339-48d4-9902-c57013cb3348","block_type":"box","text":"a participation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":102,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"e773a06d-9b26-4105-942c-d7a08538cf08","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the participation note if the issuer fails to perform its","page_number":102,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"a04c55cb-fe50-4617-bfdc-2c3f465a97db","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditworthy.","page_number":102,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"fbdbf9df-4792-40ac-b2b7-8818241892c9","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":102,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"0ab75a78-f65a-4a85-80f6-d52034b99572","block_type":"box","text":"obligation. A Fund may, but is not required to, purchase credit protection against the default of the issuer. When the","page_number":102,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"2fcff33f-ddab-4ce0-a9b2-373cdc828e10","block_type":"box","text":"participation note expires or a Fund exercises the participation note and closes its position, the Fund receives a","page_number":102,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"e4b59765-0544-4b44-8e4d-64e0c6097320","block_type":"box","text":"payment that is based upon the then-current value of the underlying security converted into U.S. dollars (less","page_number":102,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"96c0a759-a95d-4eca-baca-a63cabd3bb34","block_type":"box","text":"transaction costs). The price, performance and liquidity of a participation note are all linked directly to the underlying","page_number":102,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"66b99f1f-ebad-4ae1-8fdb-7a49d57f3ef8","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a participation note generally is dependent on the liquidity in the local","page_number":102,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"39b51812-03d6-410b-b8b0-3775ad7fb4b3","block_type":"box","text":"trading market for the security underlying the participation note.","page_number":102,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"2626e15b-ba93-46a6-a4c9-a76d2e690c4a","block_type":"box","text":"Portfolio Turnover Rates.","page_number":102,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"3b3f1481-f72b-40ce-ac7a-5aa6020f168e","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":102,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"31252c01-98b4-41dc-b80c-37052c536d0f","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although certain","page_number":102,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"29a93fed-b8a9-4a07-ab8d-e24a8bfa71e4","block_type":"box","text":"Funds will use an approach to investing that is largely a passive, indexing approach, such Funds may engage in a","page_number":102,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"e7cd65e2-d7ea-4622-83e4-e8d34d7e37fc","block_type":"box","text":"substantial number of portfolio transactions. With respect to these Funds, the rate of portfolio turnover will be a","page_number":102,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"3a974fcc-af6e-47b1-a800-d402603c5ff8","block_type":"box","text":"limiting factor when the Manager considers whether to purchase or sell securities for a Fund only to the extent that","page_number":102,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"11e3232d-a39c-46a5-8e5f-8e330173c309","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Portfolio turnover may vary","page_number":102,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"a35677cc-de75-46a1-b7d4-892f6b609cf6","block_type":"box","text":"greatly from year to year as well as within a particular year. High portfolio turnover (","page_number":102,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"39b66e4b-5f7f-4f71-ada6-ba7128084348","block_type":"box","text":"i.e.","page_number":102,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"440ba607-9487-4c0d-9f0c-71715a5c3a23","block_type":"box","text":", 100% or more) may result in","page_number":102,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"2a0f2427-a793-4199-855c-262dbbb2ed70","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":102,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"1b3e765e-543e-4cbb-abb1-2fc39a9bac9a","block_type":"box","text":"costs on the sale of the securities and reinvestment in other securities. The sale of a Fund’s securities may result in","page_number":102,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"9baf6115-6e9a-4a79-a51b-7e618112fef0","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be short-term capital","page_number":102,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"3de0a87f-e154-400d-980c-568fd84ed3a4","block_type":"box","text":"gain or loss. These effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":102,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"da3134b0-8db2-4737-a1a7-5de80325374d","block_type":"box","text":"Preferred Stock.","page_number":102,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"0bbb4b0f-b775-4549-8f17-e8e46ea0cdf2","block_type":"box","text":"Certain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":102,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"d981ef27-f639-4c9c-a287-c5dd48cc8fa4","block_type":"box","text":"stock in liquidation (and generally dividends as well) but is subordinated to bond holders and other creditors in all","page_number":102,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"94e1d06f-b907-4ed9-9849-85c65159b3f1","block_type":"box","text":"respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element","page_number":102,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"62facd71-256b-45ee-a37d-04e39a9d089c","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock","page_number":102,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"304f43ac-a961-43c2-ac98-73afcc3591f4","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":102,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"91eb26fb-3b6c-4c94-930d-fdd33b1e946b","block_type":"box","text":"other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value","page_number":102,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"fb15c9e0-5c5c-445d-bdfa-73e6f3d10050","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":102,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"80f72628-06d0-48e6-923c-b9afd127efce","block_type":"box","text":"payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors.","page_number":102,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"f67a4389-a88f-4178-bd43-6cd6305bda20","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":102,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"096604bc-f10a-4352-8421-f12a10c4d983","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":102,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"a3481814-879d-4cb2-b64e-b726581b4e73","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment funds that pay","page_number":102,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"7f1d78b1-c9cf-47e3-a827-a0eb2bb4c757","block_type":"box","text":"dividends that are exempt from regular U.S. federal income tax. Such funds in turn invest in municipal bonds and","page_number":102,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"bbc85bdd-6c9a-4e06-9c56-da622e438316","block_type":"box","text":"other assets that pay interest or make distributions that are exempt from regular U.S. federal income tax, such as","page_number":102,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"5a8e6379-8658-4ca0-a6b1-b7497be29c84","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":102,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"733d8333-2259-458f-8b0c-dcb864c91197","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":102,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"c0a698d7-cfb4-4b38-afc9-a06ab2f803cf","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":102,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"1ddb0516-1089-41a0-8e20-fca6e493dfe3","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":102,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"34d005ee-879f-498c-8c7e-b850289fa53b","block_type":"box","text":"and concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat investments","page_number":102,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"b0842bff-cd2b-4241-88e3-e6acad852bdd","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":102,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"5910d530-7140-4969-b00e-1311dbc299e8","block_type":"box","text":"Trust Preferred Securities.","page_number":102,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"919da616-2af7-4d1d-9488-d4085481e719","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":102,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"d4534e51-f140-4a34-8ffa-c4b3dbe8ad88","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":102,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"073f0876-d59e-4ad7-b85b-b56338e84eb3","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":102,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"2c5c7f3e-45f8-4f7d-bdec-af150bc5e39f","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":102,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"f6e5c62e-420e-459d-a760-0cd642c2ba18","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":102,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"1b6cebc9-d070-4edd-9ca2-15522b1dc441","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":102,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"4f4b5d54-2860-426a-8a0e-a214ab301213","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":102,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"b55d1fff-6524-4c24-bd95-ff36b73d5a71","block_type":"box","text":"securities typically permit an issuer to defer the payment of income for five years or more without triggering an event","page_number":102,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"891b4626-a3f7-46c6-a451-9d06a93ccf52","block_type":"box","text":"of default. Because of their subordinated position in the capital structure of an issuer, the ability to defer payments","page_number":102,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"dec3c657-f1af-44d8-bc9b-2be4412622b3","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and certain other features (such as","page_number":102,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"bd5078a9-cf54-4b92-818a-da2afe58e698","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":102,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"b4c5a964-fb43-4e70-9492-168e545904b2","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":102,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"f311f66d-e13f-4521-a842-1c70fc6544c8","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":102,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"2be8fbe3-9ccb-4f3c-9b52-123076aa9d05","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":102,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"20ec0c0b-27cf-4759-b32f-b2a526871438","block_type":"box","text":"®","page_number":102,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"e2bfe46c-bc39-41fb-8b71-c4739964f6af","block_type":"box","text":"”); monthly","page_number":102,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"3fd7bdd7-756f-4f06-9e9e-8037ea681bde","block_type":"box","text":"income preferred securities (“MIPS","page_number":102,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"d75624b6-3f48-4e25-95f1-56f123ee6220","block_type":"box","text":"®","page_number":102,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"5ac2ee7f-ad6d-41af-9b04-3561961e58e8","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":102,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"479a2408-9819-4803-926c-c2eb48338287","block_type":"box","text":"®","page_number":102,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"00de171c-4ff2-497a-84a5-dd0856a7c3ea","block_type":"box","text":"” ); quarterly income debt securities","page_number":102,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"97265c33-fb87-45d2-8178-b3c5eb20b022","block_type":"box","text":"II-65","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c9547ab7-8b0f-4e72-af5a-82b9296323a5","block_type":"box","text":"NM1026U-5993100-102/236","page_number":102,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"43be6fd8-1c83-4453-a1c4-cdef5f42b0bf","block_type":"box","text":"(“QUIDS","page_number":103,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"55921134-746d-4852-911d-8838c88acb20","block_type":"box","text":"®","page_number":103,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"0a74cc98-de38-4a26-9c1c-362b1f20a820","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":103,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"51a47be3-2d0e-46cd-ad83-26768d4ee4a0","block_type":"box","text":"SM","page_number":103,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"625b5a13-8713-45c7-a184-f02159a464f6","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":103,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"93c39c81-0e15-4467-adf9-8f314ad68b34","block_type":"box","text":"®","page_number":103,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"fcf699e1-7353-41ea-87b9-d1ee33479d38","block_type":"box","text":"”); public income","page_number":103,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"d6ea9d0b-e263-4fe2-abaf-836a7e52e9a7","block_type":"box","text":"notes (“PINES","page_number":103,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"df9e3db8-928a-4225-9c31-7b42056d7e44","block_type":"box","text":"®","page_number":103,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"8de04929-c456-4384-abb7-58af755d9ea6","block_type":"box","text":"”); and other trust preferred securities.","page_number":103,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"5b6da5f4-5b07-4563-b84d-581d4e8f08be","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":103,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"543c5383-a08f-448a-9d50-cdf25bf32970","block_type":"box","text":"In certain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":103,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"80d70316-45a0-4e19-a358-30cf62d72771","block_type":"box","text":"the issuer’s option for a specified time without default. No redemption can typically take place unless all cumulative","page_number":103,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"f287c800-d968-4074-96c2-2a5d09641a46","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":103,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"619da61d-d004-4153-a047-edfccfb4bc0b","block_type":"box","text":"regard to whether all payments have been paid.","page_number":103,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"132bf26b-cd00-42df-9384-7137f238b7aa","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":103,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"ca48f82a-2277-49f7-9d22-3421c1bd11e0","block_type":"box","text":"companies and are not a direct obligation of an operating company. At the time the trust or special purpose entity","page_number":103,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"e5244c92-b334-428d-b6f0-2c0a25dfa882","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":103,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"4a655769-bb62-4bdd-bac9-19641ed2be63","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":103,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"22a7e3f2-1e7c-4bca-b0ee-7ce6ae9bc962","block_type":"box","text":"purposes the interest paid on the debt held by the trust or special purpose entity. The trust or special purpose entity","page_number":103,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"50f4c4cc-510b-4d89-9f98-13144ad7d77f","block_type":"box","text":"is generally required to be treated as transparent for U.S. federal income tax purposes such that the holders of the","page_number":103,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"b5b7a810-5006-4f69-88b9-aa6fc9de9ab9","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":103,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"03607ec0-dd2a-4443-b143-27eacd0f7521","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":103,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"354a20f1-4ba4-4147-a3a4-5861fced420d","block_type":"box","text":"income tax purposes. The trust or special purpose entity in turn would be a holder of the operating company’s debt","page_number":103,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"3844cb9d-8ead-4495-af97-a76e4a0eef98","block_type":"box","text":"and would have priority with respect to the operating company’s earnings and profits over the operating company’s","page_number":103,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"0332cf69-fdf5-446e-9cf7-8414f8c027cb","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":103,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"303083df-1a38-43aa-8160-cc8565017b6b","block_type":"box","text":"Typically a preferred share has a rating that is slightly below that of its corresponding operating company’s senior","page_number":103,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"120742be-aa86-4c1d-8033-989c0e860222","block_type":"box","text":"debt securities.","page_number":103,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"a9e62233-c6b7-42c5-bbd1-47dd30f9fb91","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":103,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"b587368d-6c87-465f-8947-a5f3628b0b58","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":103,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"e56f23b9-bb55-4b0a-95ae-7a5ef8988f75","block_type":"box","text":"REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":103,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"3b5defe4-2f4a-467c-bcec-16f7417704e5","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":103,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"c7380375-209c-4f9f-abec-bc4b888498c6","block_type":"box","text":"geographic areas or in specific property types,","page_number":103,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"df256ed7-1d5a-4fa2-83bc-baca6dbd4c5c","block_type":"box","text":"i.e.","page_number":103,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"8ca97fae-e2ef-41ca-936e-2dc221052f8b","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":103,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"7c0b55fa-50e0-4722-b928-1aa75c81f3a7","block_type":"box","text":"buildings.","page_number":103,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"4c302b4c-5b95-4117-88e0-f21bdbf479d0","block_type":"box","text":"REITs are subject to management fees and other expenses, and so a Fund that invests in REITs will bear its","page_number":103,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"59b0b680-8080-4952-8828-160419e4aa69","block_type":"box","text":"proportionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":103,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"72ca5a7f-5de8-47a8-aaf5-048970b70ba2","block_type":"box","text":"Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":103,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"58e0fb75-e2d9-4d40-bf48-424b6b0d16de","block_type":"box","text":"property, which derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate,","page_number":103,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"52d28e78-1347-46a8-a3d0-7f7917d01b31","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mortgage","page_number":103,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"ff7082ce-2712-4327-8dfd-9ff45c5dd06a","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":103,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"f7e80913-2760-4d49-afc8-018e832c1326","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real","page_number":103,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"9f2431cd-d57f-4b3b-a57b-2e68690225b1","block_type":"box","text":"estate industry in general. The market value of REIT shares and the ability of the REITs to distribute income may be","page_number":103,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"38bfb63e-f9b0-4924-9346-96387a47942f","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":103,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"3f0d1bb8-c65b-4b2d-a7a1-e4b64b975605","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":103,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"f2e71fbb-58b1-4380-8747-79afa6366978","block_type":"box","text":"safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management,","page_number":103,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"3a2cb028-fd7d-4c05-9a9e-8f95f9131b9c","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":103,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"34b1c106-db0b-4a7f-8235-4e1c44951851","block_type":"box","text":"from new properties, the impact of present or future environmental legislation and compliance with environmental","page_number":103,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"27c4552a-9793-457d-9122-51ef0da84ba0","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":103,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"dfdf822c-99bf-4d31-ba5c-6e090557ae77","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":103,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"03cd2cd9-1302-41cd-90b1-517355866dd8","block_type":"box","text":"zoning laws and other factors beyond the control of the issuers of the REITs. To the extent that assets underlying a","page_number":103,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"cc74637f-4da0-4e6c-96f8-35edc246a556","block_type":"box","text":"REIT are concentrated geographically, by property type, or in certain other respects, these risks may be heightened.","page_number":103,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"77173710-42b8-4d6c-a0a5-d139dd9d1342","block_type":"box","text":"In addition, distributions received by a Fund from REITs may consist of dividends, capital gains and/or return of","page_number":103,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"cd0cdfbe-aa25-4cf2-873e-e93f4bcd3657","block_type":"box","text":"capital. As REITs generally pay a higher rate of dividends (on a pre-tax basis) than operating companies, to the extent","page_number":103,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"1f451bc8-e0c2-4b01-9a9d-4826271f3951","block_type":"box","text":"application of the Fund’s investment strategy results in the Fund investing in REIT shares, the percentage of the","page_number":103,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"f7625b12-f764-427d-a998-b073b1874d3f","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s portfolio which is","page_number":103,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"521fabff-314b-4011-80b6-c5be2797db77","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":103,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"b40f5553-5183-41f9-8293-a0bac2d76832","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":103,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"1ed28609-5317-4aec-b878-8e350f012f0b","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":103,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"7ba6c428-c2a1-47d2-89bb-2d42e6442804","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may report dividends as eligible for this deduction to","page_number":103,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"f656023c-524c-4d2d-b581-3fe4ce7814b3","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":103,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"9c9d08c7-3930-45f3-a462-c29335501f5b","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":103,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"d4d35a5b-fbc0-480e-b0f2-4dbdf0fed0ca","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":103,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"a6e78840-4ffe-4d5d-92af-87efaa30bc33","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":103,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"9fb3fc1c-6a13-4926-b51d-d1e03e958cc1","block_type":"box","text":"investors to demand a higher annual yield, which may, in turn, cause a decline in the market price of the equity","page_number":103,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"19c81398-844c-44cd-836f-2a69f8dff8ad","block_type":"box","text":"II-66","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d085f9c3-eaa2-43a4-9aea-bdd01f6cc5ae","block_type":"box","text":"NM1026U-5993100-103/236","page_number":103,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4c55314d-0e64-49b9-9311-c5ff4e417147","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":104,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"70e71cc9-048e-4a50-8ada-b274cdb154ce","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mortgages","page_number":104,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"e59af8e1-5386-4f6d-9b3a-9d02370dddb8","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mortgage REITs. In addition, since REITs","page_number":104,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"91a4b745-544b-4a16-a01e-d07a653bc617","block_type":"box","text":"depend on payment under their mortgage loans and leases to generate cash to make distributions to their","page_number":104,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"3ffde495-bba2-4490-9f5f-ca5bc04d884b","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":104,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"edfd6e10-f6b4-4f57-aa9b-8925da0de622","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":104,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"8221b94c-4cbe-4e1c-b0b2-b20f879b1d6d","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":104,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"58444230-c6b8-4ebf-af11-854bd05ca4b5","block_type":"box","text":"trade less frequently and in limited volume and may be subject to more abrupt or erratic price movements than larger","page_number":104,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"e01e8f69-0941-4cde-8745-b6d545e849a5","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":104,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"a9f66251-de77-4de1-9c41-248da6bab35c","block_type":"box","text":"larger capitalization stocks such as those included in the S&P 500 Index. The management of a REIT may be subject","page_number":104,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"6414b6ff-a8cf-4852-abe9-3e3fe66e6c9b","block_type":"box","text":"to conflicts of interest with respect to the operation of the business of the REIT and may be involved in real estate","page_number":104,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"dfa75fd7-87e6-437d-a911-481a066f23b1","block_type":"box","text":"activities competitive with the REIT. REITs may own properties through joint ventures or in other circumstances in","page_number":104,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"322eac67-b018-4ec5-b878-d965df67719b","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":104,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"2da87478-1ec2-4b6e-8646-a3eba189b291","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":104,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"bb685f35-138b-44ef-8634-05c4be0b51a2","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":104,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"8789454f-8575-45b4-af70-50e1fe6d015e","block_type":"box","text":"markets generally or particular industries represented in the markets. The value of a security may decline due to","page_number":104,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"a42ef9eb-4d59-4fc4-b3fb-7169b15cc09f","block_type":"box","text":"general market conditions, economic trends or events that are not specifically related to a company or to factors that","page_number":104,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"f83b388b-4ab9-4a04-ae69-d58b89e9bcf2","block_type":"box","text":"affect a particular industry or industries, or factors that affect a particular issuer or issuers, exchange, country,","page_number":104,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"4fd79562-52c6-4691-9204-e95596752343","block_type":"box","text":"group of countries, region, market, industry, group of industries, sector or asset class. The success of a Fund’s","page_number":104,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"7a2fd86d-4c34-485f-bc6a-aff4cb9bd48f","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in","page_number":104,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"a1d67365-e643-4b40-be59-03384ab3b922","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":104,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"08384fd8-84c8-4937-9800-8453450c556d","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":104,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"69a0cfb8-e436-4ddd-881f-82180f4c41a9","block_type":"box","text":"issues, recessions, or other events could have a significant impact on a Fund and its investments. During a general","page_number":104,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"cc74e32f-06f7-4d15-85a5-cd92e35974ad","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":104,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"805e8891-447f-4dde-a4b2-71b6f441a979","block_type":"box","text":"affect the level and volatility of securities prices and the liquidity of a Fund’s investments, which could impair the","page_number":104,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"3e24b9fe-ca51-4acb-921b-9d3da1a877e0","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":104,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"171faca2-c137-4a47-bd8e-541becea12b8","block_type":"box","text":"affected by the level of volatility in the financial markets; the larger the positions, the greater the potential for loss.","page_number":104,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"dcd1e475-d4b7-4ce0-acb7-9d4875939bcb","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced opportunities to find suitable investments to","page_number":104,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"6f369c6a-e0c3-4fcb-bc4e-1c893b4b00a5","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is important to","page_number":104,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"7abe1b18-0234-49e2-951d-477f46a60579","block_type":"box","text":"understand that a Fund can incur material losses even if it reacts quickly to difficult market conditions and there can","page_number":104,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"5203ed91-8cb1-4e97-aa98-8829a3a46afd","block_type":"box","text":"be no assurance that a Fund will not suffer material adverse effects from broad and rapid changes in market","page_number":104,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"13ea6618-7f5d-45fe-a45d-13f2d86cb759","block_type":"box","text":"conditions.","page_number":104,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"c78ebea5-439b-4598-bf4d-efdaaee037ad","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":104,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"0c413112-ca5d-4aab-b0ce-0c337d97704d","block_type":"box","text":"a particular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":104,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"4849f55a-88e0-4b94-beb2-f9293bd2bf25","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":104,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"cf84a99e-082d-47fb-8d42-b67f7efee94b","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":104,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"4f542078-dfb9-452e-af6d-d34a31f5d870","block_type":"box","text":"of these policies is still being considered, but the equity and debt markets may react strongly to expectations of","page_number":104,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"2f8b00f8-1ff9-4bf2-bf20-5f6a81d26cc5","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":104,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"8dc515f7-1ffd-427d-824d-2340f07156ca","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":104,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"26cf2440-bc65-4c9b-9d67-fb1bd990c5a2","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":104,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"c0fd7dfb-35ff-45d9-9345-f168bec2f120","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":104,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"1c1dd82f-76e0-4a3e-bd78-c95f416604b8","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":104,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"de79a981-07af-42dd-9a6e-fc96f78498a3","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":104,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"28dec424-9e16-4107-becd-fe0ed9cd1608","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":104,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"ee2e6ce6-e605-4a7c-acff-25247b38e7b5","block_type":"box","text":"affected by such events.","page_number":104,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"b9f70c53-ca22-4c0d-8e5e-791adae2fe13","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":104,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"3fdf5b5b-6e0e-4e1e-96d9-1055e4bb2426","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":104,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"31ea58b1-b6b5-4e61-b813-78c161077777","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":104,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"a90b9784-1ef8-4c05-8f7b-4f54aee74935","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives undertaken by the U.S. government","page_number":104,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"06790f98-c245-4e13-a5f3-77a48ef73709","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":104,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"5fb9620b-ed4d-4347-9e44-014fa73b806d","block_type":"box","text":"that could create uncertainty and instability in domestic and global markets and could adversely affect the","page_number":104,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"3076fa2d-7acd-4717-b22a-f6824736023e","block_type":"box","text":"investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international","page_number":104,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"3953803c-9cb4-4237-a0b8-7ef488b336cf","block_type":"box","text":"trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":104,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"d9a807d1-0370-4572-84d3-801bba4e5927","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":104,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"13cb7875-765d-40cd-b628-93d94c3d5736","block_type":"box","text":"States, including a contentious domestic political environment, changes in political party control of one or more","page_number":104,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"7fe3d102-d6b1-48d8-9554-01e0bdf11be3","block_type":"box","text":"branches of the U.S. Government, the U.S. Government’s inability at times to agree on a long-term budget and deficit","page_number":104,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"45c1d621-5951-47b9-9696-c4372795f08b","block_type":"box","text":"reduction plan, the threat of a U.S. Government shutdown, and disagreements over, or threats not to increase, the","page_number":104,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"ebc96579-ff78-49f9-841d-4b564a61bfc8","block_type":"box","text":"II-67","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"addab8fd-78cb-4901-a8b3-b8656afadc76","block_type":"box","text":"NM1026U-5993100-104/236","page_number":104,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a3cafb70-4822-4cbe-95ae-992f4c5a8d85","block_type":"box","text":"U.S. Government’s borrowing limit (or “debt ceiling”), as well as political and diplomatic events abroad, may affect","page_number":105,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"07130d57-dd2e-4991-9cd4-4656c8866e3b","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":105,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"1cc38829-a075-49f8-b770-9856b885eb5f","block_type":"box","text":"suddenly and to a significant degree. A downgrade of the ratings of U.S. Government debt obligations, or concerns","page_number":105,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"abd920da-f86e-421c-81b2-f2cf00e16c8c","block_type":"box","text":"about the U.S. Government’s credit quality in general, could have a substantial negative effect on the U.S. and global","page_number":105,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"dfe34588-48ae-4c7c-b730-c85af4a7e7e7","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":105,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"a897924a-e735-4b09-8440-95090b978467","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":105,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"e32824da-831e-4437-ac28-dcb03eadb180","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":105,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"5c96820b-7cbd-4794-bb11-a0bd679bd5ed","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":105,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"9ffc2d7f-ec11-4031-8789-47d2858932b5","block_type":"box","text":"unprecedented event are impossible to predict, but it is likely that a default by the United States would be highly","page_number":105,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"bd1c4863-aeb5-4468-8bfe-fefe3a48c3b4","block_type":"box","text":"disruptive to the U.S. and global securities markets and could significantly impair the value of the Fund’s","page_number":105,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"4115635a-a524-4e11-a684-18b268df6b7c","block_type":"box","text":"investments.","page_number":105,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"c23f67e1-67d2-4292-ba39-2fe790339370","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":105,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"d58b6a98-0a88-4a6f-814d-afae72c3b30f","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":105,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"089deb5f-88ab-4f18-9b08-c0a7e3806430","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":105,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"97bdf375-5a78-450c-b6b3-d1411c1ec9cd","block_type":"box","text":"in the future, could affect the economies of many nations, individual companies and the market in general in ways","page_number":105,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"d045b942-65b2-49d3-8ef7-52bf2a1f3c89","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be short term or long term, and","page_number":105,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"f26c2856-b6a2-404a-8486-ac724ab1ba02","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":105,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"e27bfdaa-4735-40a5-806f-6fba9542035d","block_type":"box","text":"operations, and negatively impact performance. In addition, the impact of infectious diseases in emerging developing","page_number":105,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"e67f711a-bed3-4160-b5e5-42b1e1d01b4c","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":105,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"dbab0357-c6a3-4d2e-9773-575f983387fb","block_type":"box","text":"Legal and Regulatory Risks.","page_number":105,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"0187e8e5-c39e-4656-88d3-7b50b5522c3e","block_type":"box","text":"The Manager is part of a larger firm with multiple business lines active in multiple","page_number":105,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"6071cc96-1230-4957-9a0f-15ecbe59735a","block_type":"box","text":"jurisdictions that are governed by a multitude of legal systems and regulatory regimes, some of which are new and","page_number":105,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"121e8115-3557-4ce9-bce0-81d7d3ab51c3","block_type":"box","text":"evolving. As a result, the Funds and the Manager and its affiliates are subject to extensive and sophisticated legal,","page_number":105,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"38536938-97f9-40a5-9ca9-19e3697c589d","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":105,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"f0fa57eb-f3a2-4fa1-9eec-829f40fb7124","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":105,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"182d6a0f-abc4-4829-ab11-fb9a88e4030f","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":105,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"eff106b2-abf4-4e3f-93ce-a9f090dab691","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":105,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"6da1cef0-bb34-4028-8bcd-c1bec25a5bc7","block_type":"box","text":"changes to comply with current and/or new regulations applicable to the Funds and/or the Manager could have a","page_number":105,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"ffff7f9f-8ea2-4f66-b1f1-4650beb82aab","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":105,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"9cd60cbb-afad-4ad3-827a-7f2a266ee00d","block_type":"box","text":"reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":105,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"fbe07d00-aa2a-49e5-8175-a822628d029d","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":105,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"9699ecaf-cefd-4fd1-9bb3-317e0a900805","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":105,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"50702d6c-6920-474b-bfea-b26c373e5c9b","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":105,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"045ece65-b539-4966-944e-55d00f6f65cc","block_type":"box","text":"international trade relations, certain tax and immigration policies, and other aspects of the national and international","page_number":105,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"08903242-b8ad-47ca-ac26-d0b5fc67746e","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":105,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"47784c49-dfb6-42e0-bbdb-74237be9abe9","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":105,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"20180a8f-515e-4160-b015-e674ea879dcb","block_type":"box","text":"Union, and the risks associated with trade negotiations between the U.S. and China, could affect the economies of","page_number":105,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"2e70589b-3e80-448e-bf2b-d877af2c0127","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":105,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"80844be9-e89f-447d-ba5f-e9e4d9f88bcf","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":105,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"a1acdce1-fb9f-44b5-9e20-92a8d1117e22","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial performance of a","page_number":105,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"7606eabc-931d-4a3b-9549-30921e8d24f8","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":105,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"6bbd2695-74a7-4bfc-a7fe-7ab12f9993e9","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":105,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"1ebb8e61-b4d4-41f9-bd5d-f7a0b934772a","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":105,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"235c0109-22c4-428e-892e-f6266de96004","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":105,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"3050351b-b0e9-436f-ac0d-fc03ed53f8de","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":105,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"b45e86b2-8d88-404a-bae8-561478714067","block_type":"box","text":"Geographic Risks","page_number":105,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"93468897-f92e-4c53-9fa7-cbc9126ee1e4","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":105,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"0e514401-56a6-4927-8e79-26577c81652f","block_type":"box","text":"to, parts of the world affected by natural disasters such as severe heat, earthquakes, tornadoes, volcanic eruptions,","page_number":105,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"162b492b-aa6d-4ce8-94dd-eb0df1b81e7b","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":105,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"8fe2dfb1-3686-453a-bcda-85e8a86e7a99","block_type":"box","text":"addition, issuers may be impacted by security concerns with respect to a country or region, such as war and other","page_number":105,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"9589cb78-c20f-4b6d-ad2e-078975cae74b","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":105,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"d93aea03-3ff2-47a5-bde1-3df79d545e1d","block_type":"box","text":"affect the issuers, markets and economies to which a Fund is exposed, which may adversely affect the value of the","page_number":105,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"3b41546a-e74b-41f0-944b-cff8e2de72a7","block_type":"box","text":"Fund.","page_number":105,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"19684b91-36f3-4f57-86b0-ae64cce34e60","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":105,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"da603b6e-b89e-4161-afe7-3cad90435838","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":105,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"8f947f62-63f3-46c6-85dd-450a42988f12","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":105,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"74eb7f9d-d0d4-4ecd-b634-58bdeb5216f8","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":105,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"4377be27-ee28-4d95-9b5c-b85c0c21c1dd","block_type":"box","text":"or any other changes or reforms to the determination or supervision of a Reference Rate could have an adverse","page_number":105,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"1d2910ea-d8c6-4c2c-87e5-e579718a72bd","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and certain derivative instruments)","page_number":105,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"0a4ba01c-9f7a-44c2-b9c5-bb39bc1fefff","block_type":"box","text":"II-68","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"31ad74ed-76b1-453d-b782-d09cd6d69d66","block_type":"box","text":"NM1026U-5993100-105/236","page_number":105,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"26eb14dc-dc16-4507-a7dc-54fd64c9cdfd","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":106,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"f0c8ecaa-9b70-48aa-ae2f-2d07083200b6","block_type":"box","text":"imposed by a regulator or by counterparties or otherwise may adversely affect a Fund’s performance and/or net","page_number":106,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"c744980c-9a7e-4574-a36d-a3e918c046a3","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":106,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"4a5fad3c-e026-4ec5-baf1-7409454b1c21","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":106,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"cdce6e25-6bba-4c88-9161-fc71451ee1c9","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other","page_number":106,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"e7c420e7-c7c8-4579-abea-4dead119e36c","block_type":"box","text":"derivatives. Instruments in which a Fund may have historically paid interest at floating rates based on LIBOR or may","page_number":106,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"4cb2981d-b3c0-4c7c-800c-121b848344b1","block_type":"box","text":"have been subject to interest caps or floors based on LIBOR. The Funds and issuers of instruments in which a Fund","page_number":106,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"8c0a61d7-5917-422e-9014-8c12e86d9e75","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":106,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"acf34847-559c-4e95-b2e2-c68e2f8e6eb9","block_type":"box","text":"transition away from LIBOR led by regulators and market participants as a result of benchmark reforms, LIBOR was","page_number":106,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"563a4f0c-6283-407c-afb0-9952a404d6e1","block_type":"box","text":"last published on a representative basis at the end of June 2023. Alternative Reference Rates to LIBOR have been","page_number":106,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"ac18fc22-e716-41f5-9a52-73915d285bf0","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":106,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"14735cb6-a75a-48ce-99eb-8820b301de7b","block_type":"box","text":"e.g.","page_number":106,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"59b583e8-6eea-4a3b-beaf-bb319b256f89","block_type":"box","text":", SOFR for","page_number":106,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"8be953df-aa01-4799-855d-16e04af4f9ba","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":106,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"c4380bc4-393c-446f-87b1-6186b63d4ee9","block_type":"box","text":"associated with the transition may remain that may impact markets or particular investments and, as such, the full","page_number":106,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"003d51ec-5ea9-4209-b136-b88920793c1e","block_type":"box","text":"impact of the transition on the Funds or the financial instruments in which the Funds invest cannot yet be fully","page_number":106,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"c78433a3-912b-43b1-a01a-e725f0cea19c","block_type":"box","text":"determined.","page_number":106,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"c73c1e01-cf5f-4b9a-93ca-dec7a60600e8","block_type":"box","text":"SOFR is intended to be a broad measure of the cost of borrowing funds overnight in transactions that are","page_number":106,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"0ee308cd-ec0b-4bab-b0a7-9be8936895fa","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":106,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"4e17f40d-bff6-4829-9b3d-0c35faeeb564","block_type":"box","text":"various sources. For each trading day, SOFR is calculated as a volume-weighted median rate derived from such data.","page_number":106,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"56f549f1-ab03-4086-9172-3f0366a27259","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":106,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"27ca5586-9e98-4715-b865-a194cbd89de9","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different short-term","page_number":106,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"f9ab1f1a-7e20-4687-8f06-709dfecbdd04","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":106,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"4f4cf6cf-d3e9-4f3d-b514-88b7459145dd","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in certain respects, to bank credit risk and to term interest rate risk.","page_number":106,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"cdff3010-5e2d-429f-86af-6892b9322397","block_type":"box","text":"In contrast, SOFR is a secured overnight rate reflecting the credit of U.S. Treasury securities as collateral. Thus, it is","page_number":106,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"edec2035-9d98-4176-a6be-d04507ef8e8b","block_type":"box","text":"largely insensitive to credit-risk considerations and to short-term interest rate risks. SOFR is a transaction-based rate,","page_number":106,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"d43771d8-5173-447b-88b7-fd45b9bd55c8","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during certain","page_number":106,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"715ee61b-6162-4f7d-a9b3-09697a962b59","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will perform","page_number":106,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"a2b74132-0044-4754-848d-793e0efd4900","block_type":"box","text":"in the same or similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based","page_number":106,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"edac3fdf-0707-4592-8415-926bb691d1fe","block_type":"box","text":"rates will be a suitable substitute for LIBOR. SOFR has a relatively limited history, having been first published in April","page_number":106,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"f643cb5c-0a1f-4b57-bcc1-4096a3250f32","block_type":"box","text":"2018. The future performance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":106,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"aeddb930-b554-4f08-9b2a-adff3fd9081a","block_type":"box","text":"history or otherwise. Levels of SOFR in the future may bear little or no relation to historical levels of SOFR, LIBOR or","page_number":106,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"babd738a-a48a-457f-8408-693c6cf3a7aa","block_type":"box","text":"other rates. There can also be no assurance that SOFR will not be discontinued or fundamentally altered in a manner","page_number":106,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"9a714430-b87b-47e0-9339-4b645d696d16","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":106,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"181bdd00-339e-4c49-8959-989490484163","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":106,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"62fb0d20-51bc-48df-a4df-58c067539f66","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":106,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"f7277359-7637-401c-a77e-86510b19c1e1","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":106,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"87e641f0-0e07-4951-8273-657964ce0728","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by virtue","page_number":106,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"a6067ff5-c4e2-46f7-8281-f3bcd823e5d3","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":106,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"be9f93eb-dffb-4343-9e16-a74cb6eedd8d","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":106,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"1f6b6eb9-9c33-4c35-b629-ddb36b801e9d","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may further change","page_number":106,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"5b0df967-4a1f-4ab2-ae77-e6ec865398c6","block_type":"box","text":"in the future, with the result that relevant benchmarks may perform differently than in the past, the use of","page_number":106,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"01bf2805-6edf-488a-a14d-93add08d23f5","block_type":"box","text":"benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and","page_number":106,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"d63d84ea-a490-4aef-a34e-0adc1c8a9463","block_type":"box","text":"certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":106,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"85e18ba2-6e89-48e7-becc-ba5c4ed110ea","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":106,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"53604111-a503-40e3-8769-25e967151b7c","block_type":"box","text":"consequences which cannot be predicted.","page_number":106,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"8a25efc6-7c94-4e1b-a2c1-0515c73be7a1","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":106,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"995b383d-8d75-4f3a-8c9a-66f0817403ab","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":106,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"1f8fcfdd-2d3e-4f94-8024-7c91237c3230","block_type":"box","text":"sale contracts, the other party agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":106,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"3e62883c-65fa-4c5d-bf29-be0da245f8c6","block_type":"box","text":"the Fund at a mutually agreed-upon time and price in a specified currency, thereby determining the yield during the","page_number":106,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"0f5810a8-7402-4887-a229-7ee88afb4e95","block_type":"box","text":"term of the agreement.","page_number":106,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"36e37feb-8d79-4c97-8df7-14463c99677e","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":106,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"b167bfd4-4ede-40a3-8366-42a952fd7a75","block_type":"box","text":"that securities are owned by the Fund and the purchaser receives any interest on the security paid during the period.","page_number":106,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"aa06956c-1dae-4841-83e6-91e2924c9d98","block_type":"box","text":"In the case of repurchase agreements, the prices at which the trades are conducted do not reflect accrued interest","page_number":106,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"6dc510b7-5a1e-4213-b008-50212efe8a11","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":106,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"faa64bec-eb6d-4ea8-9048-aa102caf864d","block_type":"box","text":"accrued interest. A Fund may enter into “tri-party” repurchase agreements. In “tri-party” repurchase agreements, an","page_number":106,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"937f68fb-eda9-4f24-84b3-13958b2428e2","block_type":"box","text":"unaffiliated third-party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":106,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"6989c504-d58c-427b-b386-930c5e4adbbc","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":106,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"f3157b06-e5db-4384-b501-f122fb16b985","block_type":"box","text":"II-69","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"325b6f71-c5fa-4df9-b17c-1e0b757410fe","block_type":"box","text":"NM1026U-5993100-106/236","page_number":106,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"429862f6-6212-4754-94eb-64714528086b","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":107,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"7feabed2-226f-433b-ac2d-40cc3a03c8dd","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":107,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"52408b70-e039-4cda-ba54-99643bc5d94b","block_type":"box","text":"currency fluctuations. However, in the event of a default under a repurchase agreement or under a purchase and sale","page_number":107,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"525db3df-9e19-436e-8c0f-6e6d34af75c9","block_type":"box","text":"contract, instead of the contractual fixed rate, the rate of return to the Fund would be dependent upon intervening","page_number":107,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"73379173-25f6-4582-ae2d-abd094ded345","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":107,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"d6e19a56-8b6d-4c31-a099-e00076941467","block_type":"box","text":"securities. In such event, the Fund would have rights against the seller for breach of contract with respect to any","page_number":107,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"ce0a3dc8-46a8-4c55-89c9-89a07fdd1567","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":107,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"044d2bcb-affb-401a-99e2-7ee384a4b53d","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may have","page_number":107,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"49c78345-743b-4fe1-816e-172c5eaaaea3","block_type":"box","text":"longer terms, and may be construed to be collateralized loans by the purchaser to the seller secured by the","page_number":107,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"64646acd-c8fd-464a-ba87-6e14989a82d5","block_type":"box","text":"securities transferred to the purchaser. In the case of a repurchase agreement, as a purchaser, a Fund’s Manager or","page_number":107,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"7cea8a20-ed6e-4c90-b7c8-b7fb1decfc35","block_type":"box","text":"sub-adviser will monitor the creditworthiness of the seller, and a Fund will require the seller to provide additional","page_number":107,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"d317f118-2b4e-41e3-aa67-2ae6b0a47481","block_type":"box","text":"collateral if the market value of the securities falls below the repurchase price at any time during the term of the","page_number":107,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"feab501e-af19-4dd0-b074-9892367666ee","block_type":"box","text":"repurchase agreement. The Fund does not have this right to seek additional collateral as a purchaser in the case of","page_number":107,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"63a0ddcf-eba3-4d13-9e19-bc5eea1bd94c","block_type":"box","text":"purchase and sale contracts. The Fund’s Manager or sub-adviser will mark-to-market daily the value of the securities.","page_number":107,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"55ff2a40-a968-48f8-b005-802fb6646794","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":107,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"28708820-b7b7-4186-a3b8-b6c5d2120b3f","block_type":"box","text":"contracts will be held by the Fund’s custodian (or sub-custodian) in the Federal Reserve/Treasury book-entry system","page_number":107,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"2eca8fab-97b6-4c6c-9cc6-9b81f24925a2","block_type":"box","text":"or by another authorized securities depository.","page_number":107,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"5fc90af1-8c3e-4bd3-8076-d7825b2371fc","block_type":"box","text":"In the event of default by the seller under a repurchase agreement construed to be a collateralized loan, the","page_number":107,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"3f7e7083-116a-474e-85e2-3e7988169dc9","block_type":"box","text":"underlying securities are not owned by the Fund but only constitute collateral for the seller’s obligation to pay the","page_number":107,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"da1e22aa-3e15-4915-a3bc-c5204de61d07","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":107,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"ae54f184-0ba9-4373-985f-4adee25124c8","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":107,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"1833085d-151f-49ee-abe3-72e1d15732d3","block_type":"box","text":"applicable bankruptcy or other laws, a Fund’s ability to dispose of the underlying securities may be restricted. Finally,","page_number":107,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"ac45740a-a096-410a-b0b7-9de35d56138b","block_type":"box","text":"it is possible that a Fund may not be able to substantiate its interest in the underlying securities. To minimize this","page_number":107,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"f5ecef59-7d7c-41be-9ab2-1b11cccecbf0","block_type":"box","text":"risk, the securities underlying the repurchase agreement will be held by the applicable custodian at all times in an","page_number":107,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"4addda87-5989-480c-bdf8-19dc6cde3591","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":107,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"d0cab6af-bb84-4603-9641-60a8d98bedf7","block_type":"box","text":"securities, a Fund may suffer a loss to the extent proceeds from the sale of the underlying securities are less than","page_number":107,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"29729969-1825-4bb5-b934-e95a06d82199","block_type":"box","text":"the repurchase price.","page_number":107,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"00f7a6bc-09b4-4c2d-aba1-5d2013715985","block_type":"box","text":"In any repurchase transaction to which a Fund is a party, collateral for a repurchase agreement may include cash","page_number":107,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"8c6698fb-87b5-4c8d-8790-c6b2f6fbd6a1","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For certain Funds, however,","page_number":107,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"7a623922-7382-48e5-8ea5-65f4f9f055e1","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":107,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"4a56f930-57b4-4d28-a651-52371512e4e6","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":107,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"fbe97395-59d8-4204-bc76-be181dbb99e5","block_type":"box","text":"strategies without the repurchase obligation.","page_number":107,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"4d4eeb2a-d9fb-479c-9e96-c30d8aa77e7e","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower quality","page_number":107,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"3663a2cf-f51a-48c3-b05b-8b18d873ddea","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":107,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"40c723f4-a0cc-49af-a330-c289c538b341","block_type":"box","text":"collateral and collateral with shorter maturities. If the repurchase agreement counterparty were to default, lower","page_number":107,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"1aa45039-e4ab-458e-8dc8-13e905f65bb1","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterparty default and","page_number":107,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"578b816b-a152-4e39-add3-dcf72e53e89e","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterparty’s repurchase obligation, a Fund would retain the","page_number":107,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"b303f3c8-2b54-4f98-9c2f-480dffc29a2f","block_type":"box","text":"status of an unsecured creditor of the counterparty (","page_number":107,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"60e49810-1c4e-42e8-bf51-9df9ae5e30e7","block_type":"box","text":"i.e.","page_number":107,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"1b294650-6530-45b9-95e5-711aaeed2bce","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":107,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"67779672-7c0a-4c79-9dc8-a3b1996228a9","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterparty) with respect to","page_number":107,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"fbd9b0c1-107f-4ddf-b240-e080959fef59","block_type":"box","text":"the amount of the shortfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":107,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"e667c98b-3a43-48b8-9b9b-12fcb83efa24","block_type":"box","text":"and income involved in the transaction.","page_number":107,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"169febb7-b8f0-449c-bef5-4d0682762ede","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":107,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"bae78708-df38-420d-bf4d-a22a5783b027","block_type":"box","text":"their affiliates to include in certain financial contracts, including many repurchase agreements and purchase and sale","page_number":107,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"5438d122-418c-4ed9-9d3e-75758dade88b","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements,","page_number":107,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"07a61be4-d5f3-4d0e-a5d6-799a9e0d0d22","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":107,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"6f5ad898-ec6a-4afe-b1b4-fcf4deaea1d6","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":107,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"52a95d4a-6322-460a-95d4-94deeb90d490","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":107,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"7639ab23-b5ed-423e-ab26-b977cfc78ebd","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":107,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"08cdccf2-d940-4895-85c7-78cbb14072f5","block_type":"box","text":"contracts or to realize amounts to be received under such agreements. The SEC has also finalized rules that will","page_number":107,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"df928474-6cd6-4e6c-bb70-8a055f826842","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":107,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"f8475ffe-b66c-41ce-8bf0-3e04811f1222","block_type":"box","text":"Compliance with these rules is expected to be required by the middle of 2027. Although the impact of these rules on","page_number":107,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"484204c1-ff9d-4364-a8e8-1fd270bf963d","block_type":"box","text":"the Funds is difficult to predict, they may reduce the availability or increase the costs of such transactions and may","page_number":107,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"1d1aa266-1964-4ebc-96be-f978466a2479","block_type":"box","text":"adversely affect a Fund’s performance.","page_number":107,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"56c01b74-f40a-49c2-8bd1-ea95e551dddd","block_type":"box","text":"Restricted Securities.","page_number":107,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"8a3007cd-6c9f-4580-a002-50fe38bb704b","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":107,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"697bf901-cff6-44bc-a292-5dbe20028ef1","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":107,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"478b5393-3a8d-4247-9aaa-40d5f76c1728","block_type":"box","text":"II-70","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c5fd7741-cf58-41ce-a8a2-52f357c5825e","block_type":"box","text":"NM1026U-5993100-107/236","page_number":107,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"da9709c3-48e0-41ae-98f1-0e328025d4df","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":108,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"854002f3-6c4e-45e3-a3ef-c3e67be0b634","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":108,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"7a5d3542-062a-49dc-a45e-91305f280568","block_type":"box","text":"listed on an exchange nor traded in other established markets. In many cases, privately placed securities may not be","page_number":108,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"290b39b2-60de-43ef-a83a-192d9de66d35","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":108,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"fbd1e15e-085f-4986-8e42-ea02a5a3e345","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":108,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"6056a69e-0bbe-47a3-aa3c-a36bf5a65fe6","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":108,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"2026a540-68de-4a6a-a84b-4a5e66574c2c","block_type":"box","text":"are in restricted securities that are not traded in public markets and subject to substantial holding periods, so that a","page_number":108,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"981db239-8fd1-44e0-bc2f-22a00c14d803","block_type":"box","text":"Fund may not be able to resell some of its holdings for extended periods, which may be several years. There can be","page_number":108,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"f6f9628f-6d7d-4867-bc0c-e41f0bb6beb9","block_type":"box","text":"no assurance that a Fund will be able to realize the value of such restricted securities in a timely manner or at all. As","page_number":108,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"c5f24560-8c7a-4eef-9184-a1c92cfcc4f2","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on certain transactions,","page_number":108,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"cba46950-05bb-42e8-ae0c-9d725f14e523","block_type":"box","text":"restricted securities may be deemed to be illiquid investments or less liquid investments and may be more difficult to","page_number":108,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"757c8025-bc99-4c71-9597-c8876cd5666b","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":108,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"b199eee7-af37-49f6-ab98-85509b4bd169","block_type":"box","text":"transactions, the prices realized from the sales, due to lack of liquidity, could be less than those originally paid by the","page_number":108,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"901cb41c-389d-4844-b20e-cde7b55d2a98","block_type":"box","text":"Fund or less than their fair market value. The amount of any discount may vary depending on the security type, the","page_number":108,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"da5114a3-921c-4560-b9b5-134ac3da9504","block_type":"box","text":"character of the issuer, which party (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":108,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"2a75eb4f-7629-4122-9b1d-80d18d92f2a7","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":108,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"c0223d6a-e96d-4649-a936-776382e5f8e1","block_type":"box","text":"listed may not be subject to the disclosure and other investor protection requirements that may be applicable if their","page_number":108,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"7873604d-6efc-49cd-b9be-0e3228e950e8","block_type":"box","text":"securities were publicly traded. If any privately placed securities held by a Fund are required to be registered under","page_number":108,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"80889bd7-d45a-4ba9-9180-c1feabfab4f4","block_type":"box","text":"the securities laws of one or more jurisdictions before being resold, the Fund may be required to bear the expenses","page_number":108,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"59c4469d-1e0d-417d-8732-902410d50d66","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":108,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"b343961f-cb0c-485a-8c2d-3973e6928cfa","block_type":"box","text":"between the time the Fund decides to sell the security and the time it is actually permitted to sell the security under","page_number":108,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"c6959584-e085-4a1d-a80c-9262afb63915","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":108,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"5c91dc93-94ec-4a03-9070-55a958064023","block_type":"box","text":"obtain less favorable pricing terms than when it decided to sell the security. In addition, the Fund may be deemed to","page_number":108,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"a550f90f-a908-4ae5-bd80-697caa5a46af","block_type":"box","text":"be an “underwriter” for purposes of the Securities Act when selling restricted securities. If so, the Fund may be liable","page_number":108,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"6fe37607-9eff-44ae-9ba3-691d1c65e435","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":108,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"7d2637c9-ff8d-4227-876e-3f0babb7bf0c","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":108,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"fb4d7911-56f9-48ea-9b3a-877eaa556214","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Certain of the Fund’s investments in","page_number":108,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"899fea58-e4c8-4a18-b6cc-8db7c54c3dcd","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":108,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"fb3a898e-369e-40c8-ad2a-d098d81aa080","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC reporting","page_number":108,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"4ad20129-1f90-44d0-8033-381a6c23a6ef","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":108,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"5e39f914-c626-4d20-9115-36731b3932af","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial reporting. As a","page_number":108,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"d0ab708d-457f-4ef9-84b6-cc4837a530ee","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":108,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"dd22e1a1-2028-440c-8ade-fd7170a53e17","block_type":"box","text":"operations of such issuers, and investments in securities of such issuers may involve a high degree of business and","page_number":108,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"2433c379-1e5c-493d-b4f7-8208f49978aa","block_type":"box","text":"financial risk and may result in substantial losses to the Fund. Such issuers may also have limited product lines,","page_number":108,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"5fca1f73-46d8-4054-9f3b-9daf1ab0a66d","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":108,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"caed7596-2a14-4767-a015-fc619ed7bb9a","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":108,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"e54bc811-ba2c-43bd-bb7e-1622707a6e21","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced proportionately as the","page_number":108,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"b3a9f71d-dd50-4637-938b-9a9f0b094a51","block_type":"box","text":"Fund’s net assets grow from new or additional investments made in the Fund by other shareholders. The issuer of a","page_number":108,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"1c352893-406e-4c72-a40d-b4a2b9114fef","block_type":"box","text":"private placement may later register those shares for public sale in an IPO, but there is no guarantee that an IPO will","page_number":108,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"361bce3a-ead5-449b-8c65-bc8fbc41a09a","block_type":"box","text":"ever be completed. Even after an IPO, there may be a limited trading market for securities of that issuer, including","page_number":108,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"464aeaba-eeb5-4cf4-8d2a-2ce493d7db03","block_type":"box","text":"any direct investment by a Fund, or the Fund may be subject to contractual limitations on its ability to resell its","page_number":108,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"08e1f068-09bd-4ec6-87fa-73e8be783088","block_type":"box","text":"existing securities following an IPO. The inability of an applicable issuer of a restricted security to complete an IPO or","page_number":108,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"59e48ba3-1d09-4e21-a4d6-b0df923ba4ee","block_type":"box","text":"offer other liquidity opportunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":108,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"6f927416-ea7e-417b-b007-64d22e187328","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":108,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"a4a6e2a3-015d-4600-8708-f00492a40f04","block_type":"box","text":"such securities, a Fund may obtain access to material nonpublic information, which may restrict the Fund’s ability to","page_number":108,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"d8afaa2e-86db-4867-9e4d-d4cfd37a7304","block_type":"box","text":"conduct portfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":108,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"5aa6a127-dd19-4821-a995-ac6c5fa53b31","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncertainty. A Fund will be","page_number":108,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"d5688087-6567-4841-96c1-8d1ee401fec5","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":108,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"378e8ea1-2ce5-46c4-9d92-9ca7e6b2b38b","block_type":"box","text":"investment opportunities may increase, thus potentially reducing the number of investment opportunities available to","page_number":108,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"f7480bc9-5ace-4d5f-aaf6-d907409a93d1","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":108,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"1a06b65d-f0c6-40f1-bf6a-8d05b3a03f24","block_type":"box","text":"investment opportunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":108,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"d5ec192d-c238-4a95-91d9-285750bedfb7","block_type":"box","text":"especially as that Fund grows in size.","page_number":108,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"3f6ad72f-9e8d-4e42-8537-8179ba67afdb","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular, restricted","page_number":108,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"20f06f5d-0d03-48c3-adc8-00221b649914","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":108,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"d8f29aa3-f844-48da-adb0-7bcbdb84fb5e","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":108,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"4c71d97f-a8c5-4bf7-80a8-21e93aa84fa2","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncertainty and subjectivity of","page_number":108,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"fd2bcb8a-10d6-4696-857f-246a4f254e11","block_type":"box","text":"determining the fair value of investments that do not have a readily available market value, the fair value of a Fund’s","page_number":108,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"fddb493c-2903-4e6b-ae96-334a98987bdc","block_type":"box","text":"II-71","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cd60bcb4-53db-4926-8dc7-c98883bc4eed","block_type":"box","text":"NM1026U-5993100-108/236","page_number":108,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"90cebad9-aeab-488d-9bbb-46786c9be189","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":109,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"fdc1d8be-b353-4afe-9af5-fb836027ce0c","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":109,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"1e95694e-4310-4aeb-b24c-7f4fc342a9f6","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":109,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"60c2d35a-0be9-478a-ab63-26db0c5c42d1","block_type":"box","text":"Fund’s shareholder transactions being effected at a NAV that does not accurately reflect the underlying value of the","page_number":109,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"f60c0064-5b1d-4ca1-a40d-8265ba4325db","block_type":"box","text":"Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing opportunities for","page_number":109,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"c06414e9-dfd6-4cfd-84ab-7474b153654e","block_type":"box","text":"shareholder arbitrage. The values used by the Fund to price its restricted securities may also differ from those used","page_number":109,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"36d160fe-f6f3-4c77-aebd-9ca7dca9f379","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":109,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"9efdf559-f8ed-45e5-b4ba-657abc9197ef","block_type":"box","text":"changes in the market environment and other events on the fair values of a Fund’s investments that have no readily","page_number":109,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"de0f96c4-5ae6-419b-8384-03a7a12df20a","block_type":"box","text":"available market values may differ from the impact of such changes on the readily available market values for the","page_number":109,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"8fd7ba13-a0b9-424e-9685-f95396c7e25b","block_type":"box","text":"Fund’s other investments. A Fund’s NAV could be adversely affected if the Fund’s determinations regarding the fair","page_number":109,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"7cc47834-bc6a-40ce-8520-a7b0707186b2","block_type":"box","text":"value of the Fund’s investments were materially higher than the investment’s actual market or fair value or the values","page_number":109,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"de641730-8d79-450a-a1f6-dcd69ec1b1a0","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":109,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"15234fe8-2555-45cf-814d-f56a80d38b5e","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":109,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"06965cf6-7709-4e4f-a0c0-0c4e3ece7412","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":109,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"5c9afde9-fe75-47ba-b6b5-dd130aaa4bc9","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties","page_number":109,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"79c70de2-12d1-404e-83cf-30b25e482439","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":109,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"e9ddd8a7-fe86-425d-9009-d92ee22c3730","block_type":"box","text":"to another party and agrees to repurchase them at a particular date and price. A Fund may enter into a reverse","page_number":109,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"1ec48dac-75b4-4e51-b19a-82b8dbd1cb90","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":109,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"78126b21-43fc-4d48-8e42-68641bd4d4b6","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":109,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"4756aa2b-0b9b-4a58-9360-97d1fb500a10","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":109,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"441639b9-fd64-4c21-ba3b-cab3626137e0","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":109,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"574cde41-c534-4d0f-8497-6a7d1fc8d395","block_type":"box","text":"of the proceeds will be less than the interest expense, (ii) the market value of the securities retained in lieu of sale","page_number":109,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"486a9ab3-150e-45c6-a9fe-1c952fd568ff","block_type":"box","text":"by a Fund may decline below the price of the securities the Fund has sold but is obligated to repurchase, (iii) the","page_number":109,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"5e05d097-519b-4dbb-9274-25c1c00bfb77","block_type":"box","text":"market value of the securities sold will decline below the price at which the Fund is required to repurchase them and","page_number":109,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"046afac4-405b-4413-b084-ca764f4bbc7e","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":109,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"8da08e54-9d1e-403a-bad8-a2fa502e9f65","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":109,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"b63c4cdf-82cd-42da-9577-29644955d873","block_type":"box","text":"insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to enforce a","page_number":109,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"50ebbe50-d6a9-450a-8f09-242c7190f6a6","block_type":"box","text":"Fund’s obligations to repurchase the securities and the Fund’s use of the proceeds of the reverse repurchase","page_number":109,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"dd109bba-4951-44e6-92d2-e1cdf0d167c5","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":109,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"fb6daac0-8ef3-4f30-91e6-22af5d6aaf89","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":109,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"16f20023-fa2c-48ee-8b94-cb4ad1072dca","block_type":"box","text":"similar financing transactions (","page_number":109,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"97ba266a-80a8-4705-86d8-d883c8bb1987","block_type":"box","text":"e.g.","page_number":109,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"39bb5274-b6b5-48cc-9d59-83c10bf288e1","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":109,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"b0db1424-e0c0-4500-aabd-4ee81cd5f0ab","block_type":"box","text":"the limitation on the issuance of senior securities in Section 18 of the Investment Company Act, provided that the","page_number":109,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"7fca1cea-f640-4be9-8926-cc9198601db1","block_type":"box","text":"Fund either (i) complies with the 300% asset coverage ratio with respect to all such transactions and any other","page_number":109,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"6755fddf-768e-46df-867b-5e003f6c0c75","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":109,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"9417ade8-e256-4f7f-9a5d-5887ba73cbb4","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":109,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"6a4f57b5-9032-48e2-bf5b-264c46d3d514","block_type":"box","text":"finalized rules that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":109,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"2cb80564-f001-48ed-9325-4af29f229c5f","block_type":"box","text":"agreements, to be centrally cleared. Compliance with these rules is expected to be required by the middle of 2027.","page_number":109,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"ffd2807e-6e13-4659-955b-2bb63c68c836","block_type":"box","text":"Although the impact of these rules on the Funds is difficult to predict, they may reduce the availability or increase the","page_number":109,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"53281eaa-3def-4a6f-b825-44ba8efd4c26","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":109,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"6e9d469e-5548-4986-950b-740c92b0a257","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated counterparties","page_number":109,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"ddc2286b-b869-48cd-8ef3-7764b449fba8","block_type":"box","text":"and certain of their affiliates to include in certain financial contracts, including many reverse repurchase agreements,","page_number":109,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"bb64aa05-0d7e-48f0-af74-a8fb6d9ba4eb","block_type":"box","text":"terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements, take","page_number":109,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"b0d522bc-df0b-4006-a244-91707c6fdfe2","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":109,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"6e21d053-ea2f-4b04-8475-86e28d79205c","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":109,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"513d58bf-c775-41dc-b98b-676701573fd4","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":109,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"fdadd011-48e3-4e6a-a6fd-27265e3baa80","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":109,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"8710c082-8316-4513-8f69-b4b04dbfeaab","block_type":"box","text":"amounts to be received under such agreements.","page_number":109,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"c0e1025f-c747-443c-a15d-5b43c5e10db7","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":109,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"ff0019a2-36d3-44f6-b1ce-3d59072aeb4b","block_type":"box","text":"Certain Funds may participate in rights offerings and may purchase","page_number":109,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"4780675e-f55e-4cbb-bc24-551989e02f24","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":109,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"db661ccd-69c5-4b6b-8455-b578a875ecd3","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":109,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"20a23c52-ccb3-4935-a962-12d035295c29","block_type":"box","text":"normally have a short life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":109,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"96da5544-41f9-4251-98fc-94e6f9695fd7","block_type":"box","text":"lose the purchase value of a right or warrant if the right to subscribe to additional shares is not exercised prior to the","page_number":109,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"f6981c74-5fc3-424f-94a6-0205ad42818c","block_type":"box","text":"rights’ and warrants’ expiration. Also, the purchase of rights and/or warrants involves the risk that the effective price","page_number":109,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"b089621f-e897-4e50-92b7-04211b36d721","block_type":"box","text":"paid for the right and/or warrant added to the subscription price of the related security may exceed the value of the","page_number":109,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"7e33d98e-08d5-40c6-9251-92e7d1732cf3","block_type":"box","text":"subscribed security’s market price such as when there is no movement in the level of the underlying security. Buying","page_number":109,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"e0c4f20f-0720-4ca7-9d03-ee7eec4312b3","block_type":"box","text":"II-72","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d4e4aaf5-bdb6-463c-96b2-e32432758b49","block_type":"box","text":"NM1026U-5993100-109/236","page_number":109,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4e682d33-b289-4c04-820a-62085d484e0b","block_type":"box","text":"a warrant does not make the Fund a shareholder of the underlying stock. The warrant holder has no voting or","page_number":110,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"eea223db-8718-4700-99a5-9a13b62f1028","block_type":"box","text":"dividend rights with respect to the underlying stock. A warrant does not carry any right to assets of the issuer, and for","page_number":110,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"856f837c-7672-49ae-adfa-c8a16eb45460","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":110,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"06bc23dc-c714-4d93-994b-646fe7813822","block_type":"box","text":"Rule 144A Securities.","page_number":110,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"e239f381-0ad1-4ef7-b552-dfec0944c946","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":110,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"6931c460-2678-45c4-92c4-07e6d14dfbec","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":110,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"e15d39e9-caf4-41fb-9d68-48447a65a30e","block_type":"box","text":"Securities Lending.","page_number":110,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"5b1e3acd-04cb-4d89-a7b8-1269ab0926c8","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock determines to","page_number":110,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"7a8599ad-57e7-426d-8168-6abf93c24a1b","block_type":"box","text":"be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":110,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"cbc7990e-5c95-4f3c-9bff-1d0e283fecf9","block_type":"box","text":"an amount at least equal to the current market value of the securities loaned. No securities loan shall be made on","page_number":110,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"e578baa2-b189-4bf4-9068-6387de6e89f7","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the particular Fund exceeds one-third of","page_number":110,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"85414dbc-9f60-4e90-942e-a9d022a4839d","block_type":"box","text":"the value of such Fund’s total assets (including the value of the collateral received). A Fund may terminate a loan at","page_number":110,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"12ee1544-5961-4205-8bbd-9296b7e26355","block_type":"box","text":"any time and obtain the return of the securities loaned. Each Fund receives, by way of substitute payment, the value","page_number":110,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"ac356a8a-549a-4ef8-a21e-009d5f6ef56f","block_type":"box","text":"of any interest or cash or non-cash distributions paid on the loaned securities that it would have otherwise received if","page_number":110,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"e4c0f77e-65c6-4efa-a83e-9c8956cf7c07","block_type":"box","text":"the securities were not on loan.","page_number":110,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"2d0ed24c-d3f0-4c96-86c0-022b2879630f","block_type":"box","text":"With respect to loans that are collateralized by cash, the borrower may be entitled to receive a fee based on the","page_number":110,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"88ee99b3-0810-443a-b94f-529656ad6235","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":110,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"13de5da4-4477-417c-b5bf-00f1649162ce","block_type":"box","text":"reinvestment of cash collateral and the fee paid to the borrower. In the case of collateral other than cash, a Fund is","page_number":110,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"b4aabdd6-a18f-4281-8d8d-e14f393841e1","block_type":"box","text":"compensated by a fee paid by the borrower equal to a percentage of the market value of the loaned securities. Any","page_number":110,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"bf8c03fe-4357-46a4-ab7d-765c46bb927c","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in certain short-term","page_number":110,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"604ea61c-9223-4ca2-9e4e-d7dea7acfec5","block_type":"box","text":"instruments either directly on behalf of the Fund or through one or more joint accounts or money market funds,","page_number":110,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"92ae802c-dfd9-40fb-ac49-1d3e639470d6","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":110,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"ce22d3e5-2ba1-4fad-8ca9-c0e7260ef521","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (","page_number":110,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"f41d65c9-6b6d-4b03-ad0f-1fabb72d24e4","block_type":"box","text":"i.e.","page_number":110,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"3a587158-854c-4f78-b754-4c40c6d3b968","block_type":"box","text":", the risk of losses resulting","page_number":110,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"511353b7-7eb0-4024-a14c-9c675ca95817","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":110,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"d8cb17ee-f7e2-46ee-bf51-fe397b61e8c2","block_type":"box","text":"i.e.","page_number":110,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"5df74e40-9ec1-4b18-92e3-41e99c529f0a","block_type":"box","text":", the risk of a mismatch between the return","page_number":110,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"9cd3f4ef-c19d-4de8-8985-66eab43674a4","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":110,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"58aa1dee-aa32-4016-9c56-50d8594d8d28","block_type":"box","text":"i.e.","page_number":110,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"6d83b9f0-9ab4-4684-b175-f0276ea3dd51","block_type":"box","text":",","page_number":110,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"3a8753fb-28f6-4863-85c7-6202006a3919","block_type":"box","text":"the risk of a shortfall at default when a cash collateral investment is denominated in a currency other than the","page_number":110,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"f9c60e6d-8abf-455c-ba1a-c8ce907459bb","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterparty and","page_number":110,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"f93c3f8f-6b05-4ca8-a1d0-83a1016b45f2","block_type":"box","text":"market risks (including the risk that market events, including but not limited to corporate actions, could lead a Fund","page_number":110,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"b01410f5-fb7e-4a07-9c5f-0c99ddde7161","block_type":"box","text":"to lend securities that are trading at a premium due to increased demand, or to recall loaned securities or to lend","page_number":110,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"50218832-dc6a-4878-b988-82d0950c3e6c","block_type":"box","text":"less or not at all, which could lead to reduced securities lending revenue). If a Fund were to lend out securities that","page_number":110,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"7b948194-4a18-4c81-a805-93173b76b91d","block_type":"box","text":"are subject to a corporate action and commit to the borrower a particular election as determined by the Fund’s","page_number":110,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"0a172d01-2117-45b9-b477-4dfe031c36c5","block_type":"box","text":"investment adviser, the benefit the Fund would receive in respect of committing to such election may or may not be","page_number":110,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"2371c907-f4aa-45d8-97d9-a87784248207","block_type":"box","text":"less than the benefit the Fund would have received from making a different election in such corporate action. If a","page_number":110,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"8e2240e1-25c1-471d-b138-e37d8eea3752","block_type":"box","text":"securities lending counterparty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":110,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"b76ebfcd-6f3b-420e-9ab5-c93e326d339b","block_type":"box","text":"collateral or in recovering the loaned securities, or to a possible loss of rights in the collateral. In the event a","page_number":110,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"560ae0a1-da74-4faf-8bb7-2990f797238f","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to participate in a corporate action event","page_number":110,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"f2ef8fd0-9782-48ff-a5bd-7caab14def4c","block_type":"box","text":"may be impacted, or the Fund may experience losses if the proceeds received from liquidating the collateral do not at","page_number":110,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"082ddb63-7fea-445f-b88a-bf812441c675","block_type":"box","text":"least equal the value of the loaned security at the time the collateral is liquidated, plus the transaction costs incurred","page_number":110,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"5f13174f-e613-4408-b660-e042c403e673","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":110,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"03852460-40cf-4f8d-8ad0-7d8708dd7a00","block_type":"box","text":"could lose money if its short-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":110,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"27561e49-5d40-44de-8ce0-d5c285edc61f","block_type":"box","text":"payments received by a Fund representing dividends paid on securities loaned out by the Fund will not be considered","page_number":110,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"1f6c2ad4-234c-4c56-a94b-c16fb7e971a4","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":110,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"db5049df-fb97-43ee-9a15-8202ab8aa8f3","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":110,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"a44ca6f2-6ff8-444f-8937-ac3a90e2b6e2","block_type":"box","text":"REIT securities loaned out by the Fund will not be considered qualified REIT dividends, and distributions by the Fund","page_number":110,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"0a711ecc-dacd-40fe-a84c-dad18eeddedb","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":110,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"0f29faf9-2fe8-42d8-98f4-69d4ac5d880e","block_type":"box","text":"paid to non-corporate shareholders provided certain other requirements are satisfied. The securities lending agent","page_number":110,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"3d9b62c5-44c1-49f5-a1b9-3705e74a0b53","block_type":"box","text":"will take into account the tax effects on shareholders caused by these differences in connection with a Fund’s","page_number":110,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"be47aed6-9e34-41d0-9da0-2cb2ba60eb68","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":110,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"3f8523d2-cbb0-4166-9639-151dc5f8f54d","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":110,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"22421745-3d89-4bcf-baee-04f6c6f10476","block_type":"box","text":"regulations, that may impact the regulatory or tax treatment of loaned securities and could, for example, result in a","page_number":110,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"3c74cca2-caa2-411f-ab78-f61d3eb9e818","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":110,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"5b57dffc-649b-4381-96ea-eba5e6ccda04","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":110,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"f8518b89-46b2-4306-bc9e-82938f69c3f4","block_type":"box","text":"their affiliates to include in certain financial contracts, including many securities lending agreements, terms that","page_number":110,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"ebcaf9b9-0cf7-4605-9615-42a2e8d434c6","block_type":"box","text":"delay or restrict the rights of counterparties, such as the Fund, to terminate such agreements, foreclose upon","page_number":110,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"a5ac69b7-1040-42bb-a6ce-c30d4fc11b3a","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit support in the event that the counterparty and/or","page_number":110,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"48fde9a9-f641-4dfd-aad3-28b776a62595","block_type":"box","text":"its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these","page_number":110,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"3e402056-5c36-4c50-b28e-eb4a0cbe1c03","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":110,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"63f4ea33-6ec6-4499-b3f7-1f9639d9b356","block_type":"box","text":"II-73","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"75e1f0cd-963b-4b6c-b02b-dc40a9bdbfda","block_type":"box","text":"NM1026U-5993100-110/236","page_number":110,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6010a3f3-b741-4c7e-a256-3b26dd50d68f","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":111,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"d654b444-aeae-4a4d-9d76-11b21e947312","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":111,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"8813fff5-eb94-41ca-b973-fd1a8a50235d","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Certain Funds expect to provide","page_number":111,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"bad10508-b313-4544-bfe5-ad83d6289abe","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":111,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"5aff3d68-304a-4a45-903f-cad1c8444c67","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":111,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"15f16221-b7e4-43b4-9019-b17a8f8872b2","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction","page_number":111,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"3b50991c-d573-4d40-98fb-b04cca4a415a","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information about securities loans","page_number":111,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"08e524e6-0846-4569-9d6c-acc3cd0d14c3","block_type":"box","text":"entered into in connection with short sales. Compliance with this rule is expected to be required in late 2028,","page_number":111,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"c23ab06d-eaa7-4f30-8b93-17861da528aa","block_type":"box","text":"although in response to the outcome of a legal challenge against the rule, the SEC may amend the rule and/or delay","page_number":111,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"360fa1e4-c71c-4a59-8a1a-c8846e464c2a","block_type":"box","text":"the current expected compliance date.","page_number":111,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"95993a66-a72b-41ce-9fff-ee95b40112ba","block_type":"box","text":"Short Sales.","page_number":111,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"c4f9ab88-c7a7-4d96-b249-86324dab2ff9","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential declines in","page_number":111,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"4eebe963-c380-49b9-955d-bd062453073c","block_type":"box","text":"value of a portfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":111,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"98dfffd0-9482-456e-a869-31c45c46bee8","block_type":"box","text":"Certain Funds have a fundamental investment restriction prohibiting short sales of securities unless they are","page_number":111,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"e755a84a-2c8f-495b-a766-5c5896c745cb","block_type":"box","text":"“against-the-box.” In a short sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":111,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"251eb115-ed3e-4b95-9e6e-67224dba590f","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a short sale, it borrows","page_number":111,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"7093c32e-4d20-4ab7-9222-88ede2ba9fba","block_type":"box","text":"the security sold short and delivers it to the broker-dealer through which it made the short sale. A Fund may have to","page_number":111,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"fe49b18a-2e47-4d57-ab4a-7cee422fce42","block_type":"box","text":"pay a fee to borrow particular securities and is often obligated to turn over any payments received on such borrowed","page_number":111,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"d4fce489-ea78-4c5d-818c-b613f460e067","block_type":"box","text":"securities to the lender of the securities.","page_number":111,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"5d8460e3-416a-454a-9a8a-8dd287130bfd","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":111,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"61d49a00-0d97-4ad3-91f4-6310ed1a162b","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":111,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"b25eefee-0ac6-4bae-bc42-181617f4d5d6","block_type":"box","text":"uncovered short positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":111,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"79142a67-744d-4c82-a749-e5b864617a29","block_type":"box","text":"extent that the value of both collateral deposits in the aggregate is at all times equal to at least 100% of the current","page_number":111,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"6cbae59e-a2f8-4b52-bec9-617107dc41fd","block_type":"box","text":"market value of the security sold short. Depending on arrangements made with the broker-dealer from which the Fund","page_number":111,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"f5f672cd-ddb3-48b4-8e8c-f505cc394f0c","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":111,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"0f721843-ef26-4849-a5c7-62ab8fbd9a37","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":111,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"459058b5-819c-4bf0-b72b-99af9d281dcf","block_type":"box","text":"Because making short sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":111,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"6806e727-b3a9-4cb1-a5cf-c6acc0b5b247","block_type":"box","text":"securities, such short sales involve speculative exposure risk. A Fund will incur a loss as a result of a short sale if","page_number":111,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"b74298f8-8631-4f4c-9b95-ec5021e15ed4","block_type":"box","text":"the price of the security increases between the date of the short sale and the date on which the Fund replaces the","page_number":111,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"cab863e8-bba8-4761-a02f-f21e0aa5a9b7","block_type":"box","text":"borrowed security. As a result, if a Fund makes short sales in securities that increase in value, it will likely","page_number":111,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"dce5c9a6-80da-418b-a32b-ccdc850c570a","block_type":"box","text":"underperform similar mutual funds that do not make short sales in securities. A Fund will realize a gain on a short","page_number":111,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"e4da2ea4-25b3-4492-ac2f-988b6f83e02c","block_type":"box","text":"sale if the security declines in price between those dates. There can be no assurance that a Fund will be able to","page_number":111,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"844780cf-7bbd-4151-9087-15f158c9010a","block_type":"box","text":"close out a short sale position at any particular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":111,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"99bdd25c-80a4-4fdf-8208-b8da55c7fb99","block_type":"box","text":"the price at which it sold the security short, its potential loss is limited only by the maximum attainable price of the","page_number":111,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"b6bf1461-8920-43e6-b29c-c1e35b81f714","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":111,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"4a3832ad-e827-4e87-902d-08e8c8357ac7","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":111,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"126594fa-be3b-463d-8642-aceec19b1037","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its short sale","page_number":111,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"71b02638-1ead-4231-859c-4606b3b91aa5","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":111,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"a61cdec4-3232-4357-8916-80a154f49c6f","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":111,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"5e90b2b4-5033-4458-9c1b-9ba86aba0746","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United Kingdom","page_number":111,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"235e3fb8-c7cd-4c93-aa66-462a50869aba","block_type":"box","text":"regulations (under which there are restrictions on net short sales in certain securities). If the SEC or regulatory","page_number":111,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"d20eba48-f6c6-4f27-a6b8-00732764b0d3","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding short sales, they could restrict a","page_number":111,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"f8dd96d2-3a2c-4299-8f3d-edb04c0e9d82","block_type":"box","text":"Fund’s ability to engage in short sales in certain circumstances, and the Fund may be unable to execute its","page_number":111,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"70721895-ad35-4507-b661-dd51d52f2631","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":111,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"aa9ce225-c732-4391-83fc-2c7b48cb722c","block_type":"box","text":"jurisdictions may adopt (and in certain cases, have adopted) bans or other restrictions on short sales of certain","page_number":111,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"098f4ed3-c580-4d2e-b76c-ae474badd0e8","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":111,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"988fef5b-f9ed-4b90-bc84-f7800c77a96c","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute certain investment strategies and may have a","page_number":111,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"ee45f1e2-02ab-43a6-835e-6c425005ae77","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":111,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"af5d7e60-19be-46d8-827a-ed6ce1473f9f","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":111,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"3b9f3c41-f7c1-4667-8d34-1906ebc3903a","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":111,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"86b3e30d-d001-417b-be7e-252b81684113","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":111,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"260d79bc-2243-4a33-b251-565fead67910","block_type":"box","text":"potential acquisition opportunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":111,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"db811f68-1f35-4f8b-9ce3-2ef29521f3eb","block_type":"box","text":"publicly traded company that raises investment capital via an IPO for the purpose of identifying and acquiring one or","page_number":111,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"11a909cc-ef53-4ea7-8b98-f592e0db59ed","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":111,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"9deeb40d-78d3-45d6-8640-cce2c0a13262","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":111,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"b1899920-6bb3-4fc9-bd5a-f87e8ad31603","block_type":"box","text":"percentage (typically 20%) of the SPAC’s outstanding common stock upon completion of the IPO. At the time a SPAC","page_number":111,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"523d7896-7c92-41ee-b322-65414e83a969","block_type":"box","text":"II-74","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cab9807b-05ca-4db2-8cec-e47930e79a9f","block_type":"box","text":"NM1026U-5993100-111/236","page_number":111,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"51bf7970-cbbc-4914-81ef-ae119e60feee","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition opportunity.","page_number":112,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"7017c7ee-5839-4ac2-ac86-2795e3dc502f","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":112,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"61c16012-a9ef-4df9-a467-78fd8454249c","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":112,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"2ce73992-add2-429c-9da3-24e9db9b309a","block_type":"box","text":"within a pre-established period of time, the invested funds are returned to the SPAC’s public shareholders, the","page_number":112,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"4b92988d-35fa-402c-adf6-46bf6ba697df","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become worthless. Because SPACs and similar","page_number":112,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"75274a53-8889-4add-a157-d3b302f2e3a9","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":112,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"f5cd0734-c61e-4edb-9c69-44b1cf0d6a25","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":112,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"b7a6f63d-1804-4072-8db1-66e8bc9d6a75","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":112,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"916cc604-e128-43f0-ad9e-99091a94381b","block_type":"box","text":"There is no guarantee that the SPACs in which a Fund invests will complete an acquisition or that any acquisitions","page_number":112,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"28156f1d-8e7a-4399-b2eb-6db6f1c4dd17","block_type":"box","text":"completed by the SPACs in which the Fund invests will be profitable. Some SPACs may pursue acquisitions only within","page_number":112,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"19a8aca0-e8ad-49c0-9f2f-8b028e1ce8c3","block_type":"box","text":"certain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":112,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"926b22e0-4659-4821-bf03-85c02f9021a8","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":112,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"430eb3dc-d5b0-4030-95a0-0edb4e97d1f6","block_type":"box","text":"Standby Commitment Agreements.","page_number":112,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"ca8864e9-2df5-44e9-8e89-34740f3db93c","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":112,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"a2aedd69-c299-4f09-9db1-80fe6e094af9","block_type":"box","text":"time, to purchase a stated amount of securities that may be issued and sold to that Fund at the option of the issuer.","page_number":112,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"626ec51e-d1dc-4eb1-bb94-b1554d3ac186","block_type":"box","text":"The price of the security is fixed at the time of the commitment. At the time of entering into the agreement, a Fund is","page_number":112,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"7b115db6-978f-4fc0-ae4f-a59f70374de1","block_type":"box","text":"paid a commitment fee, regardless of whether or not the security is ultimately issued. A Fund will enter into such","page_number":112,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"0122f463-39bd-4a88-a809-dd3e69328ed2","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":112,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"647a5e88-3f10-40f4-80cb-74fa8163acde","block_type":"box","text":"advantageous to the Fund.","page_number":112,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"99fc6b57-3f8d-44b3-b95d-39d320c14d1c","block_type":"box","text":"There can be no assurance that the securities subject to a standby commitment will be issued, and the value of","page_number":112,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"84fd91e3-b09c-4b6f-87a0-39fedb57aa2d","block_type":"box","text":"the security, if issued, on the delivery date may be more or less than its purchase price. Since the issuance of the","page_number":112,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"6687d49e-db7c-4b46-8c3f-860f66ab8d8a","block_type":"box","text":"security underlying the commitment is at the option of the issuer, the Fund may bear the risk of a decline in the value","page_number":112,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"5c7d5ae7-47c4-4845-a71b-2864c8afc9f4","block_type":"box","text":"of such security and may not benefit from an appreciation in the value of the security during the commitment period.","page_number":112,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"2619fc80-6685-4e54-a107-73873f5a21a4","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":112,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"8bd985fb-fde9-48a0-bba5-04d67888f7e9","block_type":"box","text":"be recorded on the date on which the security can reasonably be expected to be issued, and the value of the security","page_number":112,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"4404553d-cdb1-4e4b-b2e3-f66d4c36d297","block_type":"box","text":"thereafter will be reflected in the calculation of a Fund’s NAV. The cost basis of the security will be adjusted by the","page_number":112,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"c87d0685-8a7d-47d8-a6e0-5cf405a7fe49","block_type":"box","text":"amount of the commitment fee. In the event the security is not issued, the commitment fee will be recorded as","page_number":112,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"89c97a29-f950-481a-a6e3-84ceeb667f65","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":112,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"579e5f4b-1646-4cd1-90fe-c4f5ffd99e7f","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":112,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"badc7832-3e52-4536-8f06-fa969bae21a9","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":112,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"a50c51ae-f121-4aba-b5cd-879b7f82ee49","block_type":"box","text":"portfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":112,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"639eb507-ba4f-4182-8a64-e33dba232b25","block_type":"box","text":"at zero in determining NAV. Accordingly, where a Fund pays directly or indirectly for a standby commitment, its cost","page_number":112,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"dc27e3bc-a37d-4865-9cc8-e86157947ae1","block_type":"box","text":"will be reflected as an unrealized loss for the period during which the commitment is held by such Fund and will be","page_number":112,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"83ca0acf-9f12-45f0-b359-3237a6dad6e8","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":112,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"97417d09-a057-4db5-bb44-5985c39d041a","block_type":"box","text":"Stripped Securities.","page_number":112,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"eee4217b-9427-4397-a7df-01c76fd8f0ec","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":112,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"df8e91af-f758-4b99-b33c-5dc5220706ba","block_type":"box","text":"components of an instrument and sells them as separate securities. In general, one security is entitled to receive the","page_number":112,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"9a49aa4c-e12d-4d75-b1b6-ad5b28c34335","block_type":"box","text":"interest payments on the underlying assets (the interest only or “IO” security) and the other to receive the principal","page_number":112,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"ef50af1e-a560-4b56-891f-c23e3348d038","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":112,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"f25e5471-648e-4b13-b5ed-0d1f6d74081e","block_type":"box","text":"principal payments. The yields to maturity on IOs and POs are sensitive to the expected or anticipated rate of","page_number":112,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"41ea8286-e5e9-4b2c-b0b5-920ded46be3a","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":112,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"b4e485c2-43f6-42ad-9b90-9e6dbf50a993","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":112,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"738d5d87-bd07-43ae-8042-88dea4f687c4","block_type":"box","text":"principal, a Fund may not fully recoup its initial investment in IOs. Conversely, if the underlying assets experience less","page_number":112,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"934052b2-a736-408e-acb6-399dc09aad88","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":112,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"deb9a1c6-5578-40c9-a865-c6234d7703d1","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":112,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"2e69294e-6282-40c5-aab6-243277c5e8f4","block_type":"box","text":"Structured Notes.","page_number":112,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"5090e9f3-aba3-4fb0-b50b-c9efb53b90fb","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":112,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"b7d2f262-f96d-4bc2-bcfe-fcb8a5ed1458","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a","page_number":112,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"3fdc9eb4-fc4d-4d2b-8428-9374426ecd18","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":112,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"a6946373-3b72-4d36-867e-20c59abfbaf3","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":112,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"e0fce91f-c019-4f0b-ad38-e1f7e132b7cd","block_type":"box","text":"increase or decrease, depending upon changes in the value of the reference measure. The terms of a structured note","page_number":112,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"9a56f7c4-fc52-47d6-bdf4-2daac5580d8b","block_type":"box","text":"may provide that, in certain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":112,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"4a5f0cd0-e5c9-453b-aaad-b6c888400295","block_type":"box","text":"invested capital by a Fund. The interest and/or principal payments that may be made on a structured product may","page_number":112,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"97f933b3-7e24-43b1-99f5-6df553643849","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":112,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"bfe61a24-9217-4e70-baef-b4447fff19f6","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":112,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"d9ceef42-9950-4918-88d8-b927f363e6a0","block_type":"box","text":"produce an increase or a decrease in the interest rate or the value of the principal at maturity. The rate of return on","page_number":112,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"6986a42b-1c8f-41e0-b27a-d7f7e8cad4cb","block_type":"box","text":"II-75","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"67fd4842-31a9-4668-b81b-c67a2c286529","block_type":"box","text":"NM1026U-5993100-112/236","page_number":112,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"321767a4-5a40-4b66-a975-a8706017f92a","block_type":"box","text":"structured notes may be determined by applying a multiplier to the performance or differential performance of","page_number":113,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"c8428950-9edc-4de2-be62-44c142dd2218","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":113,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"06e287c9-7963-4da5-8cdd-9cf24ea3f947","block_type":"box","text":"the risk of loss.","page_number":113,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"72155466-ff61-4e3a-8c51-5824b4d4fe6f","block_type":"box","text":"The purchase of structured notes exposes a Fund to the credit risk of the issuer of the structured product.","page_number":113,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"d51391b0-0bc3-4dcd-b0e7-13ba729903e5","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":113,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"2675149a-1e78-40c8-a857-12bbdbe50d2b","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":113,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"0cb823ca-7c62-4e9d-ac6d-a64d79122bea","block_type":"box","text":"illiquid making them difficult to sell when the Fund determines to sell them. The possible lack of a liquid secondary","page_number":113,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"3c12eb65-3662-4f6b-9577-e5f716750020","block_type":"box","text":"market for structured notes and the resulting inability of the Fund to sell a structured note could expose the Fund to","page_number":113,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"477a0205-bdd2-4b0d-a20e-751ea56414c1","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":113,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"2e67bf55-5f16-40ee-90f2-639222f4b6e7","block_type":"box","text":"Taxability Risk.","page_number":113,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"4aa8c5e7-8bdf-4019-97df-b2807efea433","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":113,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"a6a946e4-3724-4af5-88d8-9a3d37440e6a","block_type":"box","text":"investing in tax-exempt or municipal securities in reliance at the time of purchase on an opinion of bond counsel to","page_number":113,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"98213c6f-9ecb-4802-82d6-12167722ba5b","block_type":"box","text":"the issuer and, in the case of derivative securities, sponsors’ counsel, that the interest paid on those securities will","page_number":113,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"40daa7c3-abe2-454e-b0a7-f3cd608205b2","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":113,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"9b87c5eb-e6bb-4714-8aac-54955f2b7c02","block_type":"box","text":"to pay, or have paid, taxable income subsequent to the Fund’s acquisition of the securities. In that event, the IRS","page_number":113,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"c3d78584-da05-4854-b54e-99ba93aaa5f9","block_type":"box","text":"may demand that the Fund pay U.S. federal income taxes on the affected interest income, and, if the Fund agrees to","page_number":113,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"5bbd58b5-f35d-427f-bfa3-7940f42aac9c","block_type":"box","text":"do so, the Fund’s yield could be adversely affected. In addition, the treatment of dividends previously paid or to be","page_number":113,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"197908fa-6637-4421-985f-cc4685db4852","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":113,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"c0f67cac-60cd-41b2-9dfc-8f79b7e916f6","block_type":"box","text":"increased U.S. federal income tax liabilities. If the interest paid on any tax-exempt or municipal security held by the","page_number":113,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"3d39de76-782d-4354-9135-1d70f894ecf0","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":113,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"c66baf6e-061b-4db8-b2c4-c2b6c7cdbee8","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal","page_number":113,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"f08fae9b-ded8-4c89-9973-5626c9c7b69f","block_type":"box","text":"securities to be subject, directly or indirectly, to U.S. federal income taxation or interest on state municipal securities","page_number":113,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"83945011-fe97-417c-a274-c8b6be309c01","block_type":"box","text":"to be subject to state or local income taxation, or the value of state municipal securities to be subject to state or","page_number":113,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"0accbafe-8b84-4dbc-a520-fd54376b4544","block_type":"box","text":"local intangible personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":113,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"d96b4772-6469-4e43-a794-3230627a177a","block_type":"box","text":"tax-exempt status of such securities. Any such change could also affect the market price of such securities, and thus","page_number":113,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"c05e2577-4207-4840-a56f-be0fdcb6b9b0","block_type":"box","text":"the value of an investment in the Fund.","page_number":113,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"c461fda1-ee0b-4130-994e-3d1aa1c975d4","block_type":"box","text":"Temporary Defensive Measures.","page_number":113,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"9fe6d96e-963b-42a4-b714-2830010af4ae","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":113,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"4e66b13d-b218-4d7d-9385-622c8fd8ac5c","block_type":"box","text":"economic, political or other conditions, a Fund may depart from its principal investment strategies and may invest","page_number":113,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"981497c3-c4b8-4dd0-8791-a45078d6f15d","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other short term investments. Certain Funds","page_number":113,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"dac6dbee-4bc1-42e1-835c-33fb913554cb","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":113,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"0fa4ac73-eda5-473d-8eee-ede8e84ae9e2","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":113,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"f843c200-782a-46aa-9400-ea3ae742d29b","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":113,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"cff66bc6-a01a-49a0-afbd-1fb1ad257173","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":113,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"643c412b-26cd-446c-a218-e8ab765e2eb9","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":113,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"47a76fc4-ae6b-495c-af31-4ba5cb44b957","block_type":"box","text":"within two years from the date of settlement. Temporary defensive measures may affect a Fund’s ability to achieve","page_number":113,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"8fb86a60-d8e2-4759-ae6e-5e52763288a7","block_type":"box","text":"its investment objective.","page_number":113,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"85a12f7f-64bf-4f4b-a623-564469e6c3cf","block_type":"box","text":"U.S. Government Obligations.","page_number":113,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"d3bafadf-fcac-4ae7-90e5-b8a6a385d0fe","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":113,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"46101790-94a7-4d1c-8123-193543e4f227","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of certain agencies and instrumentalities of the","page_number":113,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"478b3b48-40f6-4191-83f4-f9051248ea50","block_type":"box","text":"U.S. Government are supported by the full faith and credit of the U.S. Treasury. Others are supported by the right of","page_number":113,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"038702b1-048d-4531-95e8-27d4ae17a5c6","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are supported only by the credit of the agency or","page_number":113,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"d069fa8b-af79-4349-bf4e-cd8b70c751ca","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":113,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"69a527cc-386c-4572-ade7-c87b469787b5","block_type":"box","text":"support to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Certain U.S. Treasury","page_number":113,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"f91144b4-eb40-4836-b70a-d9f5abf8e076","block_type":"box","text":"and agency securities may be held by trusts that issue participation certificates (such as Treasury income growth","page_number":113,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"5012b2a7-c778-4514-8486-f6dc2ad1b302","block_type":"box","text":"receipts and certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":113,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"62d64814-4590-4666-b489-185e2a1a7145","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":113,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"c7693e17-f062-4c68-82c7-8a1080c55922","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":113,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"d8dd41fb-e183-4ddf-acaa-6d18d66b2358","block_type":"box","text":"and may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary","page_number":113,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"12fa1c09-d068-4b61-acdf-32608421a090","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":113,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"8b37a2b2-26b3-4684-a462-a0e0aa48d81a","block_type":"box","text":"Examples of the types of U.S. Government obligations that may be held by the Funds include U.S. Treasury Bills,","page_number":113,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"729e5ee1-4cfe-43a0-8f4b-bf23e8df12f2","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":113,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"82d5a447-5d26-4efa-98ca-9914b107285f","block_type":"box","text":"Administration, Export-Import Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":113,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"854e320a-5417-45a3-9f84-776ec704d4b5","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":113,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"60396ea4-4bc0-41e2-a639-9265461b0148","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":113,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"f1866d37-9c63-48fc-bb4c-397cc505eaac","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":113,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"dcbac401-8d11-4345-a117-8bf279467b34","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":113,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"5da74304-0064-4363-86c4-174981eef128","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":113,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"fa296dae-3ef1-4ea7-a3d5-147696b8722c","block_type":"box","text":"II-76","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a41f90ba-7303-4df3-873e-6ec27cd5de8d","block_type":"box","text":"NM1026U-5993100-113/236","page_number":113,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"71871ca3-c441-413d-b3ee-2d9be7c3cc5e","block_type":"box","text":"U.S. Treasury Obligations.","page_number":114,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"1b0fee61-76f1-4ddf-acff-a11fa2a908e1","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":114,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"efee62cf-137f-415a-87fb-06f5fc91bf63","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees","page_number":114,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"6bf22369-0232-4982-bde2-0b128fcead54","block_type":"box","text":"of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance can be given","page_number":114,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"bfea79de-cc63-4059-8108-f1c129f9f9bb","block_type":"box","text":"that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to","page_number":114,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"a0094cdf-2c94-4bad-a55c-47d4c72e24fd","block_type":"box","text":"do so.","page_number":114,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"d381065c-2cfb-4454-8cfb-d8cc83d7aaa4","block_type":"box","text":"U.S. Treasury Rolls","page_number":114,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"c4c702ee-2978-4c14-8fca-fad1011626ee","block_type":"box","text":".","page_number":114,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"0b2cd0db-52dd-4f2c-a620-61c64e3f474a","block_type":"box","text":"Certain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":114,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"4630c7cf-3a53-4dc2-9564-3dfbb924f9bc","block_type":"box","text":"sells a treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an","page_number":114,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"7c88e48b-496c-4c63-bff9-6a66daf21bf1","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":114,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"c7d78d50-a6f0-43af-8241-0c1ea1e6629e","block_type":"box","text":"maturity of a Fund’s portfolio and increase the interest yield on the Fund’s portfolio by extending the average maturity","page_number":114,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"25779416-3b7e-40e5-91af-69af97ea54df","block_type":"box","text":"of the portfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":114,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"29fe8107-2bcf-471d-b7dd-35c3b7566a35","block_type":"box","text":"roll, a Fund continues to earn interest on the securities it is selling; however, it does not earn interest on the","page_number":114,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"10d9e642-aa16-4b37-ac10-37c1a28fd519","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an opportunity loss if the counterparty","page_number":114,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"8faa0070-be2d-4954-900a-fd1e16a85899","block_type":"box","text":"to the U.S. Treasury roll transaction failed to perform its obligations on the settlement date.","page_number":114,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"b56c9d11-229a-4659-b74b-f045e3e8fb3e","block_type":"box","text":"The market value of the securities that a Fund is required to purchase may decline below the agreed upon","page_number":114,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"014ba5d0-ac57-4521-a135-aa94dd72f27d","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":114,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"b34fdd37-606b-4f10-abc4-2602ea361158","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":114,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"a05312e0-f9a0-407b-a07c-c30f50dffc0c","block_type":"box","text":"Utility Industries.","page_number":114,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"0cb46775-eafb-4b88-b844-cdac06551455","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":114,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"8a540213-9b7b-4a0e-95c8-3c8ba822c706","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":114,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"ad5ab6ea-f9cf-458f-bc4a-a0f7a245e94d","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":114,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"48492274-72e9-44a8-bc9d-092edb49176c","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":114,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"9c56dadd-9440-47f5-bf7f-514d52bc933c","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":114,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"1ff0003d-e5da-4450-90f0-63447502af5d","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of certain types of fuel, occasional reduced","page_number":114,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"fe1f34d4-f25f-4b50-9283-f2ccfd0c59b8","block_type":"box","text":"availability and high costs of natural gas for resale, the effects of energy conservation, the effects of a national","page_number":114,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"39e58bcf-c381-4ee5-97dd-ef672ae21c32","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":114,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"99acf4a6-cf79-48ab-a212-f4180c2d5a24","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":114,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"23219ba4-9ce1-464c-9f2a-0844c13945c0","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":114,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"b5c90a28-0f2e-44f2-9303-bf101cb85601","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":114,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"bef4cd94-c9ad-486c-a671-18e5e1709dc7","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":114,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"8224c023-c5f4-4369-b07c-4ac04bb2dc26","block_type":"box","text":"authorities will, in the future, grant rate increases or that such increases will be adequate to permit the payment of","page_number":114,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"b6dd3938-f299-4594-b95d-9e544727195a","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":114,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"a364f3ea-87ce-463c-a10d-e75fb0302d80","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Certain of the issuers of securities","page_number":114,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"92d6aaa2-ba1f-4e9a-b8a0-34944a39e8d6","block_type":"box","text":"held in the Fund’s portfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":114,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"627a4405-4ebe-4647-a1e5-d7c679d560a6","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":114,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"7eed0033-bb2d-4dda-914f-afa7ea592490","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":114,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"64ae814d-5acb-4133-a99a-b86457422759","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, particularly a hydro-based electric","page_number":114,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"d32bd44c-3be7-4f6b-a29c-634b9279a002","block_type":"box","text":"utility.","page_number":114,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"66271ec9-8e2d-4ebc-a8b7-2de1da55bfc8","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":114,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"6e13e392-ac52-403e-85a6-1e5caacf5e4f","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":114,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"d254779b-d3c0-49a2-80f2-2300341588a5","block_type":"box","text":"debt securities and, to a lesser extent, equity securities, tends to have an inverse relationship to the movement of","page_number":114,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"75fbada9-b55a-48e5-acde-7c0a7ef99453","block_type":"box","text":"interest rates and therefore may lead to volatility in performance.","page_number":114,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"7f09e525-796e-4354-bd08-d9d64d65d2e9","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":114,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"341906b2-df8e-42be-8cb4-64aee8384e6f","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":114,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"5fd3e6bc-f428-492c-a26f-4b2b918f59f2","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":114,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"2ac0355a-e512-4540-aada-bf809e822958","block_type":"box","text":"regulated in the United States and in foreign countries with the intention of protecting the public while ensuring that","page_number":114,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"a6e9c59b-ca6b-460a-aee1-ebf742c506c2","block_type":"box","text":"the rate of return earned by utility companies is sufficient to allow them to attract capital in order to grow and","page_number":114,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"f6d13bc8-b92e-4310-b862-0db6478c319b","block_type":"box","text":"continue to provide appropriate services. There can be no assurance that such pricing policies or rates of return will","page_number":114,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"389c1c52-bd66-4daa-8d8d-4dc90025d7ec","block_type":"box","text":"continue in the future.","page_number":114,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"a549cf29-28d1-4386-8bf5-6f1f5de340d0","block_type":"box","text":"The nature of regulation of the utility industries continues to evolve both in the United States and in foreign","page_number":114,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"d72632df-c729-4ef6-9c17-2ac1d3e2a579","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":114,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"440b9142-21e8-46f4-8977-a5605d829236","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":114,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"e50d8e2c-7e83-4b31-9b06-9de32f714a6a","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":114,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"0cc5b915-c068-4947-9e8e-87747178bdd6","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":114,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"572ea572-c99f-4009-be21-4a97c56f7f18","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant part of their","page_number":114,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"004c9375-e76e-4ff6-a06b-ebdd6600f37e","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in certain","page_number":114,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"3f418609-ea70-4d63-bf3f-8223fbd655f1","block_type":"box","text":"utility companies being able to earn more than their traditional regulated rates of return, while others may be forced","page_number":114,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"0b399b65-f90b-4868-806f-e033eca96eef","block_type":"box","text":"II-77","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d484e630-04b5-4938-b09e-4f62ff5cdd22","block_type":"box","text":"NM1026U-5993100-114/236","page_number":114,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"398d8854-7ea3-4fb4-828a-0976fe3c2108","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":115,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"fcb56d54-fdc3-4ade-a441-245ca11783de","block_type":"box","text":"new uses of funds (such as for expansion, operations or stock buybacks) could result in cuts in dividend payout","page_number":115,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"5f76f4f0-c058-455f-bc23-f3f2af8ba545","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":115,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"493c3e85-75d1-4341-83e5-acadfbd20500","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":115,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"9431db17-f940-4d9b-9694-c3ab146f9b58","block_type":"box","text":"restrictions on the maximum level of profits of certain utility companies, but may also subject these companies to","page_number":115,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"ea3da5c0-9beb-4d91-9b2f-5ba8a1cb5e9f","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment opportunities that may arise from","page_number":115,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"1e67fce8-88cc-4f7d-ada8-bea04b79251b","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":115,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"618b7b52-938d-46d2-ab02-e83b682e7181","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":115,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"b80e2679-40ef-40c4-a4c7-769c40592cb4","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":115,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"bd3e6395-b1ed-4c6b-8ed2-b8aae48f1a56","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":115,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"5b374647-1d8c-48f3-b2be-a9b74775cb2b","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":115,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"b61f061d-4be0-4860-81f7-a09a91f1bb65","block_type":"box","text":"than those used in the United States, which may require such utilities to invest in pollution control equipment to","page_number":115,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"23e05557-3a11-404d-bef9-9bfe5e2fb1e8","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":115,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"3a7edfca-52d4-4bd5-82c2-67c3df2076c5","block_type":"box","text":"ways different from regulation in the United States.","page_number":115,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"d839db8b-0f1c-4c36-ba67-2f9a6673ffd7","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":115,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"3900466b-4f29-45a7-ad4d-06ec30bb4432","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate expansion of","page_number":115,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"8463d9a8-cb5c-4f56-bb31-512297c63ce9","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":115,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"1fad5021-05e2-4ec5-ac6e-524956c3146a","block_type":"box","text":"owned, thereby limiting current investment opportunities for a Fund, the Manager believes that, in order to attract","page_number":115,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"8b5786f6-95d7-4221-b97c-9d06d544f872","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":115,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"60614e8e-ffd7-419b-9f5e-9c53b0633991","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":115,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"359f812f-8b89-48f1-8800-2b605a0d2707","block_type":"box","text":"ownership, is expected to occur in newer, faster-growing economies and in mature economies. Of course, there is no","page_number":115,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"4226df88-d3aa-4fa0-9912-8187fb43ee09","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign markets will","page_number":115,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"4524241f-bf8a-4e3b-b102-025fbd5ad489","block_type":"box","text":"increase.","page_number":115,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"3fe8a7fe-4b17-4035-bb28-bf0458244be6","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":115,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"3f5b7ce9-51da-4772-bd5c-9db3fd0a1e9c","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":115,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"c01564dc-4187-4764-adc4-ea4bc4ed78d4","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":115,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"fa2339ec-ae4c-400d-b570-ce5a60794116","block_type":"box","text":"Electric.","page_number":115,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"023e180c-37e8-4522-869f-9fcb3666d8e7","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":115,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"2c0caae8-2bc6-41f7-ba89-67325c2781a4","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":115,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"6f4f9305-9418-4820-a587-56db7fa99323","block_type":"box","text":"electric utility companies, in general, have been favorably affected by lower fuel and financing costs and the full or","page_number":115,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"248505be-b00d-47d5-8fab-ffb869602789","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":115,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"d7b92fac-8260-48f2-8d55-986c98cdaefd","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":115,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"3b0ab086-aa51-4b24-82b3-0253376d0a71","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":115,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"eaeaf537-6bdd-41a2-867f-97ff0064e22f","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":115,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"57939834-1136-49fd-97c8-0b9747f4eaec","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":115,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"2f33b3ec-c986-4d42-9d50-f7d1a06daaae","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":115,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"e34036d9-0b79-41f2-930d-95a6326a8f3f","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":115,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"ea34ec86-2358-416f-9553-df0b17a7bf5c","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":115,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"6fcad9f8-0aa3-4f71-9471-27ea5ede2602","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in part with customers. In a period of rising interest","page_number":115,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"7d98d589-9d58-4f44-998a-0b271d2b3056","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":115,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"864cc72d-a240-4266-a1a4-3726518a324d","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":115,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"e278d281-b863-4a85-a154-b1a8a96241ed","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":115,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"2226cc9a-86fa-4dd4-934e-65de57436e47","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":115,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"3059fd47-26b9-4281-912e-cc2b1001b5f1","block_type":"box","text":"costs in rate authorizations or the risk that a company may not be permitted to operate or complete construction of a","page_number":115,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"7f9173ac-66c6-4421-9843-c6af6730b7f2","block_type":"box","text":"facility. In addition, operators of nuclear power plants may be subject to significant costs for disposal of nuclear fuel","page_number":115,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"881e0dc9-794d-4612-8649-79e58ed07072","block_type":"box","text":"and for decommissioning such plants.","page_number":115,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"a8a71f07-04d3-4dfa-9d79-082e43f48d16","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":115,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"04cc1f16-9bbd-4da6-be95-66ff87e5193f","block_type":"box","text":"impacted to a greater extent in the future by the division of their asset base. Electric utility companies that focus","page_number":115,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"07d890f0-81ca-4785-8a16-6111270f35cb","block_type":"box","text":"more on the generation of electricity may be assigned less favorable ratings as this business is expected to be","page_number":115,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"c329aa80-90f8-43f3-b8c2-57ed03436889","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":115,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"52690939-c562-478e-bd44-7b90049b2c47","block_type":"box","text":"is expected to be the least competitive and the more regulated part of the business, may see higher ratings given the","page_number":115,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"7329d238-bd4e-404a-a314-e3b7d908ba96","block_type":"box","text":"greater predictability of cash flow.","page_number":115,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"e3e4af98-45f6-4bc1-9238-d6d729899ed6","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":115,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"d45d52f3-2d85-4fd8-b1d6-d74131d12600","block_type":"box","text":"the industry as a result of such deregulation has at times resulted in lower revenue, lower credit ratings, increased","page_number":115,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"25dad129-3259-4da9-8db4-3763db22f25d","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":115,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"5d72f096-b4a4-4dcc-92cf-48526f98c5f1","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":115,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"c9726925-0eea-42e2-8a2b-244134c4bcb8","block_type":"box","text":"II-78","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"aeef5ccc-024f-4150-882a-404326784467","block_type":"box","text":"NM1026U-5993100-115/236","page_number":115,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8238165e-c388-40eb-8f46-42bb1213037a","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":116,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"a8bc30bd-0b13-4120-9b6a-a6ab5d45f33c","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":116,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"cc2e2495-9fe1-463a-aa1b-c2b5c03670f5","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":116,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"cfb02f33-4c26-4842-972e-d38696344472","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":116,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"d84c32da-9e1a-4ddd-928b-7fea5f162a60","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":116,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"d6e0d042-99cf-436b-83fb-f84731ea9751","block_type":"box","text":"Telecommunications.","page_number":116,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"ceed18f8-4259-42e7-8b5c-a08c3df5423c","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":116,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"8aff98c3-10b1-46ca-a76e-bda36dcdb46e","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":116,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"2c8a18ae-1c24-476b-97bc-f22334ac51e8","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":116,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"a775da95-0564-441e-af38-a39fdf02b327","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":116,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"db95f02c-ff34-4484-9322-6d1ac2a100d8","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":116,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"6b1865c1-aa54-4f91-ab5e-1b0ed6381d97","block_type":"box","text":"networks still comprise the greatest portion of this segment, but non-regulated activities such as wireless telephone","page_number":116,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"f58db0cb-ae31-47b7-9b64-adb0ccbfa2f6","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":116,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"7ecedc8a-0a3e-47a1-95a9-33ac9fa965ca","block_type":"box","text":"internet services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":116,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"bb457eca-6a47-43ec-9029-8688c0ca8000","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":116,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"aa8a5152-31fd-489b-b2c7-ca4ca6ce2621","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":116,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"1e01cf5c-7620-4b70-97e5-af0f49781cf7","block_type":"box","text":"regulated businesses provide significant investment opportunities with companies that may increase their earnings","page_number":116,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"0baf7977-f640-4ac4-aefc-9bf6a0fde696","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":116,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"235ef4cd-cbb6-422f-841b-e4084f49c738","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":116,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"9613ab53-9e1a-4770-b781-f5bf0403ae83","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":116,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"ff532fee-bb0b-4646-9e44-ee794f635caa","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":116,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"70ce1d67-d205-41d7-b24b-af4560fdb8ed","block_type":"box","text":"residential, corporate and governmental customers.","page_number":116,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"5ec0a0d0-ee67-4cfc-a5ce-2b86b87c991a","block_type":"box","text":"Gas.","page_number":116,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"79231322-a0a2-4482-9aa3-c18f7c33d772","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":116,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"a4726ef9-5a83-42f7-92b6-d7383ccb74ed","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":116,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"97c362b4-412e-45ac-821d-dd881f3f86cd","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":116,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"1a4b27a9-605e-487f-8089-e6212dd50715","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":116,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"4ae96409-1d35-4800-b549-d9f5a8eb1bfa","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":116,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"329d432a-2d00-454e-b34c-99a6841034c7","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":116,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"bd389612-1686-4ca8-afb5-19463a8a0129","block_type":"box","text":"outlook in the future. For example, natural gas is the cleanest of the hydrocarbon fuels, and this may result in","page_number":116,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"a19adf04-b00e-4187-bb60-028e8b8972c0","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":116,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"27b47408-31c7-441d-b64e-6cce0fa4ea17","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":116,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"9e15b2fb-3810-499e-b4f9-47656d48a064","block_type":"box","text":"Water.","page_number":116,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"613d4153-d2fe-476c-94e9-5c4e2302a3a9","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":116,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"6f7e046c-ec63-414e-aa49-f7fbbab0e7af","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":116,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"8269fa20-f21d-4549-85a1-1b5a0654b4c6","block_type":"box","text":"Companies in this industry are generally mature and are experiencing little or no per capita volume growth. In the","page_number":116,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"5af045c2-e90a-4536-b9f8-4046e2b14771","block_type":"box","text":"opinion of the Manager, there may be opportunities for certain companies to acquire other water utility companies","page_number":116,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"4937632b-9f57-48a4-8158-501093ff123f","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment opportunities","page_number":116,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"a9aa8cd1-a24b-4b11-9c17-cebd5d2d94ef","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":116,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"9f1c67c1-4a42-458f-a611-a6b4d118ef9f","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":116,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"f78d3a8f-5d82-4189-82fa-229601e5afc3","block_type":"box","text":"Utility Industries Generally.","page_number":116,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"097e9f55-74df-40b8-95f8-4ab46d778b4e","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":116,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"b7480d0d-dc94-4719-a4ce-1f108c99458b","block_type":"box","text":"those relating to privatization and changing regulation, will occur or that risk factors other than those noted above will","page_number":116,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"02f45233-b848-4df5-a28c-ab96c00c1858","block_type":"box","text":"not develop in the future.","page_number":116,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"f039f0d0-ddef-41d5-ab92-aae18a87bdaa","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":116,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"b4f3a02a-4195-409b-a9ac-83acedb2e9b6","block_type":"box","text":"A Fund may purchase or sell","page_number":116,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"c541b617-5271-4408-ab92-12f21fe4b769","block_type":"box","text":"securities that it is entitled to receive on a when-issued basis. A Fund may also purchase or sell securities on a","page_number":116,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"f612b69c-f936-4a76-b294-1676cad6a7c3","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":116,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"4d59d25b-82e3-4aaa-882c-de76d4c88389","block_type":"box","text":"transactions involve the purchase or sale of securities by a Fund at an established price with payment and delivery","page_number":116,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"fd547416-228f-438f-975f-6671fc1b4576","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":116,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"75aaf0d2-7ef3-43d2-837c-1aca35e4c7d2","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":116,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"f70746ad-2d35-4f2d-a52f-1b89ef55d5be","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":116,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"aaab69eb-7cbf-493a-b924-8cfc355bfe4b","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterparty generally will be required to post collateral when entering into","page_number":116,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"7cd05a8a-82f9-4b60-a1d4-b9cdea49156a","block_type":"box","text":"certain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":116,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"246d8f02-f0b6-4172-98bb-9de998b8f396","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":116,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"5624f94d-a88c-45a8-8a9d-46e5d00c383b","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterparty credit risk between trade and settlement, but","page_number":116,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"f61066e1-683d-41d7-b752-f2deae909993","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":116,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"352f2997-ee1d-42f9-85cc-9b6a91b5628d","block_type":"box","text":"There can be no assurance that a security purchased on a when-issued basis will be issued or that a security","page_number":116,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"1ea4006b-2ab9-4560-bea6-1f010450b192","block_type":"box","text":"purchased or sold on a delayed delivery basis or through a forward commitment will be delivered. Also, the value of","page_number":116,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"ce398178-bc84-4c7e-b9ae-d75a8b92af8c","block_type":"box","text":"II-79","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a2792c3f-c68f-4eee-9384-e4a8977dd54d","block_type":"box","text":"NM1026U-5993100-116/236","page_number":116,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"73c137b4-52b7-46c2-a81b-e9407039a4df","block_type":"box","text":"securities in these transactions on the delivery date may be more or less than the price paid by the Fund to purchase","page_number":117,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"2800342f-9f4b-4263-87e0-a0d489240a05","block_type":"box","text":"the securities. The Fund will lose money if the value of the security in such a transaction declines below the purchase","page_number":117,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"30af1c90-0ae6-4bac-b30e-3a4040f50de7","block_type":"box","text":"price and will not benefit if the value of the security appreciates above the sale price during the commitment period.","page_number":117,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"c805f366-49ce-4eab-b3af-d202beac1f54","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":117,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"98bb87c8-bcc0-4b22-9c7b-b530f1eb8d3f","block_type":"box","text":"after it has been entered into, and may sell securities it has committed to purchase before those securities are","page_number":117,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"fb759815-2c54-4eba-96b5-ffd5cf9f5de8","block_type":"box","text":"delivered to the Fund on the settlement date. In these cases the Fund may realize a taxable capital gain or loss.","page_number":117,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"0ba76e29-9b27-41d6-9170-b0015dc60c8b","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other party to","page_number":117,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"3a734e4d-ff19-48e5-a903-9a93d4cd8dc6","block_type":"box","text":"consummate the trade. Failure of such party to do so may result in the Fund’s incurring a loss or missing an","page_number":117,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"1279d480-2f74-4557-a04a-1cfd380b4920","block_type":"box","text":"opportunity to obtain a price considered to be advantageous.","page_number":117,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"8fe322ea-281b-4edd-943b-e7d0eef11fd0","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":117,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"52bf61f3-f315-47cc-9c55-04cc6aea9690","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund starting on the","page_number":117,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"766bc21a-ee13-4fe6-be66-dd838c620875","block_type":"box","text":"day the Fund agrees to purchase the securities. The Fund does not earn interest on the securities it has committed","page_number":117,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"08478746-c076-4cc9-a900-427db46e427e","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":117,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"cb95276a-f3f6-434e-a66a-13ed918c80bd","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":117,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"cadba897-44b7-41f7-ae7c-36af99ac07e5","block_type":"box","text":"securities (","page_number":117,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"fe356d59-ba78-40ef-9327-6634a0b160a0","block_type":"box","text":"e.g.","page_number":117,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"7db13fe6-2096-42c1-9993-364c567a3b02","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":117,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"dbd32a9f-4c1a-49c1-8bfb-eb3b8d0ec8ef","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":117,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"bd9849c1-67f0-4fc0-b408-efc0db5613fe","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":117,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"64c7e2fe-349b-475b-adba-62c9582c8d78","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":117,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"e9dd5a8f-e487-42cc-9e61-94f1fc90cd77","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":117,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"9231dc05-2767-4883-b6b3-903680c78f3a","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":117,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"81394c35-5e8c-4a14-847a-04192ed1caec","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":117,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"0216c952-40f5-44be-978a-6cbc42049bdb","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":117,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"80615a82-8776-4830-9732-acd6ee9107dc","block_type":"box","text":"their affiliates to include in certain financial contracts, including many agreements with respect to when-issued, TBA","page_number":117,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"f0e1aad0-8d4c-45f0-a914-797ce9dbc36f","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterparties, such as a Fund, to","page_number":117,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"b1545289-9cf0-4038-9f65-f1a8a91473bf","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":117,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"a034a744-fe62-4761-abf8-e33e0abcccfc","block_type":"box","text":"support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or insolvency","page_number":117,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"b98fbb3f-a769-4281-b5e6-fedba0104a72","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":117,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"ded415b1-4713-476b-8fa2-ec06c7dbe3a3","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":117,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"8adab443-a9d7-4914-a544-a2d88af9adcf","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":117,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"e0ace017-4cb3-4a66-9b80-380c8776b11c","block_type":"box","text":"Yields and Ratings.","page_number":117,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"85887971-562f-4864-94f7-540d3d42e345","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including general","page_number":117,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"306da0c8-8dd1-4b71-a489-4cf0ebc56bb2","block_type":"box","text":"market conditions, conditions in the particular market for the obligation, the financial condition of the issuer, the size","page_number":117,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"11830e5f-bc49-4d53-87b5-b193ee9ec9fa","block_type":"box","text":"of the offering, the maturity of the obligation and the ratings of the issue. The ratings of Moody’s, Fitch and S&P","page_number":117,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"1bae25e3-5f7a-4821-89a9-f14837ab7db9","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they undertake to rate. Ratings, however, are","page_number":117,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"c3cf3600-cc36-4ddc-af07-e49de6d2aeb3","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":117,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"6f6b5056-f339-4615-885f-7f3c111cfdfb","block_type":"box","text":"interest rate may have different market prices. Subsequent to its purchase by a Fund, a rated security may cease to","page_number":117,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"d47db631-8ddc-47e9-94cc-782a53301428","block_type":"box","text":"be rated. A Fund’s Manager or sub-adviser will consider such an event in determining whether the Fund should","page_number":117,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"792699eb-92d4-4615-ad93-6b456e6fcc56","block_type":"box","text":"continue to hold the security.","page_number":117,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"b20e8d9c-d9c0-496d-bed1-76a02fbce00d","block_type":"box","text":"Zero Coupon Securities.","page_number":117,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"87a1e746-cff5-44aa-bfad-e8e1f8f7f36d","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":117,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"9243b7a4-42c1-442a-81a4-c8d891204e60","block_type":"box","text":"not pay interest during the life of the security. The discount approximates the total amount of interest the security will","page_number":117,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"30fe830c-1d5d-4138-93dd-0030ee8a2699","block_type":"box","text":"accrue and compound over the period until maturity at a rate of interest reflecting the market rate of the security at","page_number":117,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"81950c29-a6bd-4090-9a27-ce1395033423","block_type":"box","text":"the time of issuance. Upon maturity, the holder of a zero coupon security is entitled to receive the par value of the","page_number":117,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"62dce8d7-eb33-4ab5-ab0a-431539ea9e0d","block_type":"box","text":"security.","page_number":117,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"cd1a73f7-87c6-4df4-a6ed-34ed4058e6b6","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":117,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"d3252658-fa71-4ce2-a429-bbbd8d8b9516","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":117,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"ad500da6-0352-48e9-89a8-eaefca14a1be","block_type":"box","text":"owning instruments that do not make current interest payments is that a fixed yield is earned not only on the original","page_number":117,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"07d543b9-34ec-4527-88a5-8be2dc1d9d9e","block_type":"box","text":"investment but also, in effect, on all discount accretion during the life of the obligations. This implicit reinvestment of","page_number":117,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"05c85ef1-aa66-46bf-a42e-d5d013b86ce3","block_type":"box","text":"earnings at a fixed rate eliminates the risk of being unable to invest distributions at a rate as high as the implicit","page_number":117,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"853bf676-cec3-437e-aa7a-95283dec80a1","block_type":"box","text":"yield on the zero coupon bond, but at the same time eliminates the holder’s ability to reinvest at higher rates in the","page_number":117,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"32eb1617-4834-457b-aeba-015562b70f7d","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":117,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"b9b6e687-08b0-4c75-af10-6957739c20d5","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":117,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"19536b19-e8c0-4542-92e1-9c578c1770b5","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These investments","page_number":117,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"6ad45a3b-79f5-4ae2-94e0-e62adf6b1219","block_type":"box","text":"benefit the issuer by mitigating its need for cash to meet debt service, but also require a higher rate of return to","page_number":117,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"d0b92ad2-cd6c-4c4e-9264-67dc77dd79ee","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":117,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"bf67c4a7-90f2-46a7-990e-1403ebcbd59c","block_type":"box","text":"II-80","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c6e0f17a-dcb9-4018-b28e-bb606f9fd8cf","block_type":"box","text":"NM1026U-5993100-117/236","page_number":117,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c365e15f-22fb-47b2-b729-b2c6d64e7026","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":118,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"c60a35ea-71c7-49d8-82f1-52b2e67bd308","block_type":"box","text":"prior to the receipt of cash payments. Zero coupon securities may be subject to greater fluctuation in value and less","page_number":118,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"41c9232e-e0b2-4e56-8b91-46b461753691","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":118,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"cd9a7aa1-0291-44f7-81c0-dad871de7c90","block_type":"box","text":"intervals.","page_number":118,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"6f87805f-e91a-4263-a2b3-b04a63fb6ea2","block_type":"box","text":"Further, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":118,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"e92f10bb-b303-4afc-b229-c1af2faa00e6","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":118,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"b3eb9522-31d8-4c97-921b-b4ea1a607a57","block_type":"box","text":"portfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":118,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"fcc5ad3a-a9d3-462e-aeae-91228ce8a414","block_type":"box","text":"generate the cash to satisfy these distributions. The required distributions may result in an increase in a Fund’s","page_number":118,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"c1c8314d-3bb6-43ad-98f3-44ea8f2b0e47","block_type":"box","text":"exposure to zero coupon securities.","page_number":118,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"41653182-1e02-47fc-84c1-2f4264e3fec3","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero coupon","page_number":118,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"e4b530fe-ced9-498d-b803-047421fb1692","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":118,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"b01c0663-f9d0-4f1f-97b1-a925d401c926","block_type":"box","text":"In addition, as these securities do not pay cash interest, a Fund’s investment exposure to these securities and their","page_number":118,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"f54687dc-b235-46a1-bcfe-6575529262f1","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s portfolio.","page_number":118,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"7c433b84-46ee-4bd5-91d7-83c5fcb45b7e","block_type":"box","text":"Suitability. (All Funds)","page_number":118,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"db859fad-10c5-475a-b0a5-00df5f986954","block_type":"box","text":"The economic benefit of an investment in any Fund depends upon many factors beyond the control of the Fund,","page_number":118,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"349405fa-074d-4716-8dbc-206132bb33c6","block_type":"box","text":"the Manager and its affiliates. Each Fund should be considered a vehicle for diversification and not as a balanced","page_number":118,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"cd8bf2e0-eeb7-40a1-9e1b-f62215f27584","block_type":"box","text":"investment program. The suitability for any particular investor of a purchase of shares in a Fund will depend upon,","page_number":118,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"4b65f165-658d-451f-913c-e4c873256039","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":118,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"3c9fa73f-81cc-4207-bec7-0207fdb1ec82","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":118,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"58b165e9-447c-477d-9347-e9595a03d9e2","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":118,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"a3a4a938-1193-4064-b4fd-8d211a33a3db","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":118,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"9ae26749-1118-44c4-8c0e-95539dde7ea7","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":118,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"64aa828a-7af8-4a75-bd49-be1b4a297515","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":118,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"22a8fa81-073b-41db-9984-5ea91d72b848","block_type":"box","text":"Each Fund’s investments will be limited in order to allow the Fund to qualify as a “regulated investment","page_number":118,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"1ac5417e-695c-4dc2-9910-0da0fd2690a5","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":118,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"530dac9f-f6a4-4fa8-a439-2d5260f5639c","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quarter of the taxable year, (i) at least","page_number":118,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"7f1a034c-9fed-4d76-856b-681037ca4780","block_type":"box","text":"50% of the market value of each Fund’s assets is represented by cash, securities of other regulated investment","page_number":118,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"7aafcc18-5e3c-4a06-bbfe-e27a874e0965","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":118,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"3517288c-7bd0-4426-aa03-2893706964c0","block_type":"box","text":"issuer, to an amount not greater in value than 5% of the Fund’s assets and not greater than 10% of the outstanding","page_number":118,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"5f78c1ff-3a3e-44e0-80f1-3aa6cef8820f","block_type":"box","text":"voting securities of such issuer and (ii) not more than 25% of the value of its assets is invested in the securities","page_number":118,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"e86098b4-6fe1-49b3-831b-c7a4cfa07300","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":118,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"59bc274c-d192-4b08-8174-e4743b72cb32","block_type":"box","text":"two or more issuers that the Fund controls and that are determined to be engaged in the same or similar trades or","page_number":118,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"7d1cb9ad-801f-4fdb-a45a-6167e0e41424","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships","page_number":118,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"fcc7f10c-4983-422f-991c-38d9165a1073","block_type":"box","text":"(","page_number":118,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"9366d513-68dd-4e14-9e7b-d890c3c7ada9","block_type":"box","text":"i.e.","page_number":118,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"5819bcff-04c6-4770-bded-a81e7ddf12c3","block_type":"box","text":", partnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":118,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"bd843cb1-98ee-4f99-9623-15a7497bcf4e","block_type":"box","text":"partnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":118,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"e3262c81-722a-4dbc-b505-79cc724ac583","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":118,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"07c4911b-95e0-4cf4-8e26-2ae3e358db88","block_type":"box","text":"of its political subdivisions, agencies or instrumentalities and each multi-state agency of which the state is a member","page_number":118,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"461e28fb-8550-417a-bf8e-da70d8e906a7","block_type":"box","text":"as a separate issuer. Each public authority that issues securities on behalf of a private entity generally will also be","page_number":118,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"3d507a52-c7be-43ce-b9d3-6c479f3a3754","block_type":"box","text":"regarded as a separate issuer, except that if the security is backed only by the assets and revenues of a non","page_number":118,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"416cda5b-2131-47c6-9f80-f244c776e8f1","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":118,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"03bd860e-67a0-4efa-af0d-106472b67900","block_type":"box","text":"regarded as the sole issuer.","page_number":118,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"ab5626d7-afde-499d-9cfa-a1d3e29abac5","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":118,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"0942b966-5141-4764-98b8-669ff2d14a72","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":118,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"b979efe7-559c-4d2f-9f4d-fa2d99f1fcbf","block_type":"box","text":"considered to be obligations of a single issuer. These tax-related limitations may be changed by the Directors of a","page_number":118,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"00dd8f49-ef02-4103-afb8-5078a766c345","block_type":"box","text":"Fund to the extent necessary to comply with changes to the U.S. federal tax requirements. A Fund that is","page_number":118,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"5f5c777d-df7a-4ab8-aad9-2cd8ec8015ab","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":118,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"d7f0628f-2ba6-483a-aaed-f8f63ff937c7","block_type":"box","text":"75% of its total assets.","page_number":118,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"56d51d0f-4e4c-407c-aee1-75a6b253063b","block_type":"box","text":"II-81","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cb9f6934-de96-479e-bf9d-7971cda03780","block_type":"box","text":"NM1026U-5993100-118/236","page_number":118,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f555c4db-6e56-4bfc-9edb-6b396c4b5f7e","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":119,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"683e6c1a-d7be-4ef4-b708-50f293e7ee9c","block_type":"box","text":"Directors and Officers","page_number":119,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"b8cc8664-673c-4ec8-aabd-e5dd4ca88478","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":119,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"852cc6d3-2def-4013-96e7-ea874564c0f2","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":119,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"31acb2cd-8cf8-4a9a-945b-8e6aa7337446","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Part I of each Fund’s SAI for biographical and","page_number":119,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"461599da-126a-41d3-a587-cc715f6b53d7","block_type":"box","text":"certain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":119,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"bf6c3d0a-1a67-482f-9623-a021b75818dc","block_type":"box","text":"Management Arrangements","page_number":119,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"95ff06d9-b9b8-457c-86fa-02f435792988","block_type":"box","text":"Management Services.","page_number":119,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"1fc58ff9-4b59-4f16-a731-822353cd0faf","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":119,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"a8e9ff8e-09db-4e48-948a-4ba936515277","block_type":"box","text":"Subject to the oversight of the Board of Directors, the Manager is responsible for the actual management of a Fund’s","page_number":119,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"3c2249d0-28ec-43f4-8aae-68007032f0ff","block_type":"box","text":"portfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":119,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"59cd16c5-286e-47b5-8129-aab032f650e7","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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Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":119,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"00b9212a-6fc2-4948-a9f5-e88c034cd7ba","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":119,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"8681e7ed-167a-4c5a-8503-b8152e8f94ef","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":119,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"4424fe08-13d6-4310-83c5-b4ba892a98cf","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":119,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"b9b32a3c-d9f6-4951-9e22-ae595a171685","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":119,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"adf327cc-9145-47df-acd8-398d18bc4d72","block_type":"box","text":"Duration and Termination.","page_number":119,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"83e39fa6-f57a-470a-a5b8-e3a27363ca75","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":119,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"c0543ee1-7365-4fad-9d68-12cd2fc7d385","block_type":"box","text":"Sub-Advisory Agreement will remain in effect for an initial two year period and from year to year thereafter if approved","page_number":119,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"bcb808f1-7cd6-42c4-89c6-625526546c48","block_type":"box","text":"annually (a) by the Board of Directors or by a vote of a majority of the outstanding voting securities of a Fund and","page_number":119,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"d9b96f5a-6a5e-4eaf-b26d-20b9b83ce312","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":119,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"f4f2d8bc-faf3-451d-93ac-bca7af432043","block_type":"box","text":"II-82","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f7c60472-f8d7-400a-8e3e-6e6ddba442d4","block_type":"box","text":"NM1026U-5993100-119/236","page_number":119,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c3ffe933-cef6-4dd2-9ae1-486f650f7bb0","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":120,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"62d4bdbf-c230-403f-9d25-98cb647ee366","block_type":"box","text":"subsidiary of The Bank of New York Mellon Corporation, acts as each Fund’s Transfer Agent pursuant to a Transfer","page_number":120,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"8030bff2-a1a4-4765-8510-6c4de55c7999","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":120,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"27de2a1b-3044-4274-8e32-9f649f81d4ff","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":120,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"b16e55da-8ab8-4d1f-bd5a-eb380c92201f","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":120,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"1cd761c4-82d4-4b08-b891-1cfe2583adb5","block_type":"box","text":"Custodian Services.","page_number":120,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"8a9f7e78-0975-4929-88c8-ff2b55a77304","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":120,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"40cdab72-9a4f-406c-8c19-60d92a4b92ec","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. 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A Fund also may use special purpose custodian banks from time to time for","page_number":120,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"5b0c78b7-94bd-4106-ae9e-04adcbb27e04","block_type":"box","text":"certain assets.","page_number":120,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"32e743cc-798f-4dce-8da8-6ccb4d157fb7","block_type":"box","text":"For certain Feeder Funds, the Custodian also acts as the custodian of the Master Portfolio’s assets.","page_number":120,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"e7370ce4-aec9-4ff5-8eb2-a7d9d38c8b06","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. 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With respect to such Funds, the custodian fees, including the amount","page_number":120,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"5190ac23-958b-4415-ab7f-144a80d63902","block_type":"box","text":"of any overdraft charges, may be reduced by the amount of such custody credits, and any unused credits at the end","page_number":120,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"9f54def2-1a40-4fe3-b963-ddd330e5c1f8","block_type":"box","text":"of a given month may be carried forward to a subsequent month. Any such credits unused by the end of a Fund’s","page_number":120,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"436271dc-a86a-41ba-87ac-99619216f360","block_type":"box","text":"fiscal year will not expire. Net debits at the end of a given month are added to the Fund’s custody bill and paid by the","page_number":120,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"0d49830a-3079-4404-873a-1b4fe5aa8949","block_type":"box","text":"Fund.","page_number":120,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"126f649b-a28b-463e-89b7-a9969f62b2ef","block_type":"box","text":"II-83","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"64dd3e94-2f19-4e15-a8b7-c496cc554a2a","block_type":"box","text":"NM1026U-5993100-120/236","page_number":120,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a64e5992-d7d5-4cdc-8401-7db6053c975e","block_type":"box","text":"Accounting Services.","page_number":121,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"7590b0b6-eeb6-4429-998f-a27e9fb75bd2","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":121,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"171d6489-31c7-4b03-b020-dc0507753bd8","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides certain accounting and administrative services to the Fund. 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State Street, BNY Mellon or JPM provides similar accounting services to the","page_number":121,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"0147ad99-e276-48d3-b72c-4b27caeb2533","block_type":"box","text":"Master LLCs.","page_number":121,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"3381f0d2-e6e9-4236-9ce9-18e074802e53","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":121,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"a522b596-c094-4a98-891b-d60e3cc5b1b4","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Part I of each Fund’s SAI for information on the","page_number":121,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"dfe74fe0-883f-4785-8575-fdff94aefbd5","block_type":"box","text":"amounts paid by your Fund and, if applicable, Master LLC to State Street, BNY Mellon or JPM and the Manager or, if","page_number":121,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"b63461d6-afca-4d19-9528-11f3270fbc30","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":121,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"ac707570-4421-41be-a4ed-1fbf7b83e7aa","block_type":"box","text":"Distribution Expenses.","page_number":121,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"ff0ed681-dc94-4391-bd84-011067330258","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":121,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"ab8189be-d899-4adf-8458-578d55ad50df","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). The Distribution","page_number":121,"box":{"x":68,"y":196,"width":807,"height":11}},{"id":"790ba9ba-155e-43e6-bc4c-ae595546e6ca","block_type":"box","text":"Agreements obligate the Distributor to pay certain expenses in connection with the offering of each class of shares of","page_number":121,"box":{"x":68,"y":211,"width":842,"height":11}},{"id":"937b9dff-c4d0-443e-9f4a-4c7e3f8b94a3","block_type":"box","text":"the Funds. After the prospectuses, statements of additional information and periodic reports have been prepared,","page_number":121,"box":{"x":68,"y":226,"width":813,"height":11}},{"id":"068f2a80-c56a-4ff3-ade0-421f566981d2","block_type":"box","text":"set in type and mailed to shareholders, the Distributor pays for the printing and distribution of these documents used","page_number":121,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"8a678c62-5978-40bb-85cb-f1b2320b47fc","block_type":"box","text":"in connection with the offering to dealers and investors. The Distributor also pays for other supplementary sales","page_number":121,"box":{"x":70,"y":256,"width":799,"height":12}},{"id":"00f25db6-7d60-4422-938b-bc09512ea2d6","block_type":"box","text":"literature and advertising costs. Each Distribution Agreement is subject to the same renewal requirements and","page_number":121,"box":{"x":70,"y":272,"width":788,"height":11}},{"id":"e55fc308-1d7b-4100-bc85-b155f6407d5a","block_type":"box","text":"termination provisions as the Management Agreement described above.","page_number":121,"box":{"x":68,"y":287,"width":513,"height":11}},{"id":"1aba20e9-c48b-48a9-a1fe-a60a5a0898fc","block_type":"box","text":"Code of Ethics","page_number":121,"box":{"x":69,"y":317,"width":105,"height":9}},{"id":"eba6a2b4-a33e-4a2d-b9b0-d9fef9c3c814","block_type":"box","text":"Each Fund, the Manager, each Sub-Adviser and the Distributor has adopted a Code of Ethics pursuant to Rule","page_number":121,"box":{"x":102,"y":339,"width":780,"height":12}},{"id":"eaa7c4b4-918c-47bb-80c7-342141198af0","block_type":"box","text":"17j-1 under the Investment Company Act. The Code of Ethics establishes procedures for personal investing and","page_number":121,"box":{"x":70,"y":355,"width":794,"height":11}},{"id":"a4fe7cb8-336a-4ee9-a9b8-9637a11a48c0","block_type":"box","text":"restricts certain transactions. Employees subject to the Code of Ethics may invest in securities for their personal","page_number":121,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"bbd68367-fc3e-4576-8e8e-8f70f318625f","block_type":"box","text":"investment accounts, including securities that may be purchased or held by a Fund.","page_number":121,"box":{"x":70,"y":385,"width":593,"height":11}},{"id":"7775386f-bb3d-4296-a877-6c1d3e276043","block_type":"box","text":"SELECTIVE DISCLOSURE OF PORTFOLIO HOLDINGS","page_number":121,"box":{"x":282,"y":414,"width":413,"height":10}},{"id":"03d33235-f6cf-4d75-aa5a-a09ea9426de3","block_type":"box","text":"The Board of Directors of each Fund and the Board of Directors of the Manager have each approved Portfolio","page_number":121,"box":{"x":101,"y":437,"width":777,"height":11}},{"id":"54aa8997-7b15-44b5-960d-1fb9696b7f9f","block_type":"box","text":"Holdings and Related Information Distribution Guidelines (the “Policy”) regarding the disclosure of each Fund’s","page_number":121,"box":{"x":70,"y":452,"width":788,"height":11}},{"id":"8aa7b1e4-86ed-4ff7-82ac-c08699389f60","block_type":"box","text":"portfolio securities, as applicable, and other portfolio information. 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BlackRock may have a potentially conflicting division of","page_number":127,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"dd361d89-7103-461b-ac7e-a9fbd33b445a","block_type":"box","text":"loyalties and responsibilities to the parties in such transactions.","page_number":127,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"91544dfd-2e0e-4367-b05f-e1d14216e67e","block_type":"box","text":"BlackRock and its clients may pursue or enforce rights with respect to an issuer in which a Fund has invested,","page_number":127,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"c1b8bdde-b761-497a-9df1-4739ddc56ad1","block_type":"box","text":"and those activities may have an adverse effect on the Fund. 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It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":127,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"c0768bf0-e388-465b-9c50-6ad32e96b0a7","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":127,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"776cf99c-c28f-4af9-ab09-23337f0d42c1","block_type":"box","text":"Fund. Moreover, it is possible that a Fund will sustain losses during periods in which one or more proprietary or other","page_number":127,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"3eafb1cf-afe2-4239-8e50-ca0218e0140a","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":127,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"4cb4ee3d-0404-4ee9-8b58-2d5e8da788f1","block_type":"box","text":"From time to time, a Fund may be restricted from purchasing or selling securities, or from engaging in other","page_number":127,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"0ade3b7e-e540-405a-8d27-870e6c8255c3","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":127,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"8f69a1d1-daf9-44ff-baeb-a8bb54ee55ed","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":127,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"8db0ca87-8ab4-4a69-88b3-890560d5ee2a","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend certain","page_number":127,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"86705884-9f86-4ee7-8e06-de89c0328502","block_type":"box","text":"II-90","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4dc84a07-4baf-4295-85f2-5fe4caaabcee","block_type":"box","text":"NM1026U-5993100-127/236","page_number":127,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7367acd9-6b45-41ce-8601-b886d8382e36","block_type":"box","text":"types of transactions in certain securities or instruments with respect to which BlackRock is performing services or","page_number":128,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"2f0b870d-3414-4688-b531-caef3c5b8369","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":128,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"d73a1fc6-e6a3-4b9b-b398-1c15ffbbd97a","block_type":"box","text":"accounts and accounts under its management may limit the investment opportunities for a Fund in certain emerging","page_number":128,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"95b17d9a-cd6f-4314-b4a0-a9147f1f0b4f","block_type":"box","text":"and other markets in which limitations are imposed upon the amount of investment, in the aggregate or in individual","page_number":128,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"10828a5a-13da-40af-b84b-ed3639b257b3","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":128,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"250b42de-15d4-426f-948d-9c0caf2f8e4f","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to certain fundamental analysis and","page_number":128,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"65542baf-e8e6-4dd6-8db7-3fc8f840d22f","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":128,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"16ee714c-957b-4ccb-a2ce-d8cd2be4b0e7","block_type":"box","text":"transactions on behalf of a Fund in accordance with such analysis and models. In addition, BlackRock will not have","page_number":128,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"22b2084e-5286-4805-8e15-ab193138b979","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":128,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"42e892ed-cfa1-4e03-bb65-898abcc064a4","block_type":"box","text":"strategies used for other accounts managed by them, for the benefit of the management of a Fund and it is not","page_number":128,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"80640ef2-5917-4c4e-ac48-e5e2bfed1bbd","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":128,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"fe4ad30d-1325-4fb0-8851-8c66a06a07c7","block_type":"box","text":"proprietary activities or portfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":128,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"0ce11e68-8c06-47ac-917c-7d6056a3cd9c","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":128,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"cefc868a-182d-4fba-9766-1459c71f5ca8","block_type":"box","text":"managing a Fund.","page_number":128,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"ccb9bcbe-6ea9-4860-a5aa-7c8e722721b7","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":128,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"66a5ad9a-256f-41c9-8e6a-a71e11e83f30","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":128,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"1aadced5-8926-4d6d-936b-9adc494ce1c4","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":128,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"d04cc90d-0a8b-4f37-8d19-5c9adf4486fe","block_type":"box","text":"value and liquidity of a Fund may be impacted by purchases and sales of the Fund by model-driven investment","page_number":128,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"e8eb5a20-2e53-4f74-8b81-b9d935104447","block_type":"box","text":"portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":128,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"0da54dfd-4a25-4d3f-93db-2fbeb79870ad","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals or","page_number":128,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"71631d83-d399-4878-a885-21b5b1f69be7","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":128,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"32422e78-278b-4c22-a667-bab01daeb6cc","block_type":"box","text":"have obligations to such other business units or entities or their clients and such obligations to other business units","page_number":128,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"00879259-6e33-4a44-aca0-70c6e8a9c9fa","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":128,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"e931f894-dbeb-45eb-b520-0de682df8da9","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":128,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"0618d18e-7e85-45dc-931b-3f1edb190416","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":128,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"7abe3aed-a33a-4079-bb6b-00d4e74e6b68","block_type":"box","text":"as the counterparty, principal or issuer. In such cases, such party’s interests in the transaction will be adverse to the","page_number":128,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"bde6a437-c7cb-4ec9-92cd-f1fdcc7d5d43","block_type":"box","text":"interests of the Fund, and such party may have no incentive to assure that the Fund obtains the best possible prices","page_number":128,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"258523e8-aa7c-4601-9912-f1b4cf5447c0","block_type":"box","text":"or terms in connection with the transactions. In addition, the purchase, holding and sale of such investments by a","page_number":128,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"19946e4d-3de1-4a50-b26a-9ebc56c56dd3","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":128,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"57549775-0ba1-440f-bd18-5e074f14d27d","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":128,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"0784696d-e46b-4152-ba43-dbfaf46d8441","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the performance of the Fund.","page_number":128,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"fd66d6f1-fa3c-438a-91b2-1883e72c517a","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the performance of","page_number":128,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"abe6c8dc-8521-4334-9571-4a468f300cfa","block_type":"box","text":"certain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":128,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"699315d9-7f8a-443e-be0c-5bb60b921742","block_type":"box","text":"underlying fixed-income indexes used by certain iShares ETFs, related to derivative fixed-income products that are","page_number":128,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"962da9b5-600f-46c1-9fec-042f39a455ad","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":128,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"cb502b52-4053-4533-8db3-010ed0517172","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":128,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"99b994f4-51a1-471a-8370-bd7f9c99a5e8","block_type":"box","text":"under management for BlackRock.","page_number":128,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"8e577307-866e-41ad-afe5-1b3a6125ff77","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":128,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"dce43efc-d80a-4bfd-b686-fe356ac82692","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":128,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"3756a4b8-3598-45a6-b94b-53713ad5ed28","block_type":"box","text":"clients have interests adverse to those of the Fund. At times, these activities may cause business units or entities","page_number":128,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"699fb93a-5285-402a-bfd0-5af30d9ac298","block_type":"box","text":"within BlackRock to give advice to clients that may cause these clients to take actions adverse to the interests of the","page_number":128,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"72572254-9dd4-45a7-8bc0-a9613798d15f","block_type":"box","text":"Fund. To the extent such transactions are permitted, a Fund will deal with BlackRock on an arms-length basis.","page_number":128,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"f7acb2d2-de5e-49cc-9bab-754b0535986a","block_type":"box","text":"To the extent authorized by applicable law, BlackRock may act as broker, dealer, agent, lender or adviser or in","page_number":128,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"08ac542e-66f8-4445-940f-e4367047fdfb","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":128,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"897635d0-5d46-4dc4-83c3-379c5922a639","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":128,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"67681690-54a3-4f26-80ad-71e6ff811e6a","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":128,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"42a3f6fd-eb04-4892-964e-4780698614eb","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":128,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"b6102466-8ec9-4b81-94dd-01c6581e3372","block_type":"box","text":"amounts that are favorable to BlackRock and such sales personnel, which may have an adverse effect on the Funds.","page_number":128,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"4575db9f-630d-4319-a65c-d927d6386659","block_type":"box","text":"Index based funds may use an index provider that is affiliated with another service provider of the Fund or BlackRock","page_number":128,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"22594b18-a9db-4e93-9301-80a5b1b4c0c0","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":128,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"3d144262-176e-4789-a3d4-6a48d9df0caf","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":128,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"bab6db63-ca3b-4570-839b-50068d86081f","block_type":"box","text":"other amounts that they receive in connection with their service to the Funds as broker, dealer, agent, lender, adviser","page_number":128,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"2d089daa-cd37-4658-8d0c-b01398a0abf2","block_type":"box","text":"or in other commercial capacities. 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BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":129,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"00666542-a533-4bbe-a58d-7a36a5015e38","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterparties will rely on the credit of","page_number":129,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"b28b7cde-7e7a-4899-8a23-4788060759e9","block_type":"box","text":"BlackRock in evaluating the Fund’s creditworthiness.","page_number":129,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"3ead2f0e-a506-4d01-9ca1-f861a8fe6324","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":129,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"f7bc7e02-e0bb-4c06-ad16-83946d23d569","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":129,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"dc2e7ae2-a2b5-4879-8cf2-7e2aeaa7a2ae","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":129,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"80ef950e-ea77-4f61-8db7-72ff4d891669","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":129,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"f4acd0bf-072e-4766-a64c-1b45c3abdfc2","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":129,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"4044b7c5-c6c8-48d4-9671-338d0446f944","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":129,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"ac6c25b7-e7cd-4697-8386-3b134ef56cd6","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":129,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"15a2db56-b768-4131-907e-e071d7e9eaa5","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":129,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"d60af274-fc18-431c-9c97-36934aa0a8f7","block_type":"box","text":"BlackRock. As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":129,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"dfc690fe-8251-4f5f-9d49-9a1d48289237","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":129,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"aeafa614-d640-466e-af72-0fcd8909b651","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients and/or","page_number":129,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"2fe2f03e-a17c-4f76-b16d-913f2101d5dc","block_type":"box","text":"funds against a shortfall in collateral in the event of borrower default. 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BlackRock oversees the risk model that calculates projected collateral shortfall values using","page_number":129,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"42c5426f-c935-40cf-92fe-951f2e82b4fb","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":129,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"805e6dd9-718f-475b-8c05-c612ae2eca40","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":129,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"ec293d22-635c-4758-955e-66e5354de9f0","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":129,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"4ad2dcfc-d937-4250-b9fe-645a7783f3a5","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":129,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"b7d3241f-15ea-4939-b9c3-2ef8ac8e42fc","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending opportunities for certain loans (including by","page_number":129,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"69d27543-fbe6-463a-93a8-9ad886e74bd1","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":129,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"bccd893f-3c3a-41ff-91d2-dbae47699c14","block_type":"box","text":"BlackRock may decline to make a securities loan on behalf of a Fund, discontinue lending on behalf of a Fund or","page_number":129,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"60dc1cc9-028d-4476-91e7-2c2b12a82f0f","block_type":"box","text":"terminate a securities loan on behalf of a Fund for any reason, including but not limited to regulatory requirements","page_number":129,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"c4cebad6-ebe8-467b-bd8e-57b91852ce32","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":129,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"5895ce8d-bebd-4a2e-b963-ace95967bb46","block_type":"box","text":"eliminating the volume of lending opportunities for certain types of loans, loans in particular markets, loans of","page_number":129,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"788ddd8b-025a-405b-8578-857526f5e10c","block_type":"box","text":"particular securities or types of securities, or for loans overall. In addition, some borrowers may prefer certain","page_number":129,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"88d9ad5a-82cf-4c11-9e13-eae460d661e1","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":129,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"196fe27d-5b91-4ad6-8174-cc3cb575eaeb","block_type":"box","text":"regulation.","page_number":129,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"ee302a9e-600b-4f57-8f65-e82f46aba087","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":129,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"13d2e6c4-ef2a-4b29-a095-fdc35bce4716","block_type":"box","text":"order to allocate a loan to a portfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":129,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"0c68d379-9a90-40d5-b4d9-950ee0f1c27d","block_type":"box","text":"various program limits (","page_number":129,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"a8b0bcfd-9e0a-4970-93ee-e15cb17101d5","block_type":"box","text":"i.e.","page_number":129,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"7d696555-335b-46d3-9250-18f205b1ad32","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending portfolio must","page_number":129,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"c40419c3-1ef1-4a27-ace9-6c2e6c810f6c","block_type":"box","text":"hold the asset at the time a loan opportunity arrives; and (iii) the lending portfolio must also have enough inventory,","page_number":129,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"bc44c55f-de3a-400b-bf72-0cf7064f7f2e","block_type":"box","text":"either on its own or when aggregated with other portfolios into one single market delivery, to satisfy the loan request.","page_number":129,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"f54c8426-86dd-47f8-aa98-d5deae074bff","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending opportunities for all portfolios, independent of whether","page_number":129,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"fd0290a6-fcf2-4b55-8eb0-61a17a1dd036","block_type":"box","text":"BlackRock indemnifies the portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes.","page_number":129,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"b9149214-522c-4869-b670-4808976477a5","block_type":"box","text":"Specifically, short and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":129,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"885ed84d-ce94-444a-8842-d3d6b308c5b6","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":129,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"33705ec5-69f2-44b5-aae4-de80a769e2b0","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":129,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"f8dff1e0-d5e5-423f-aa92-152da2e535eb","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":129,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"66cc5da5-e9e1-485b-ab2b-892a16223515","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if portfolio","page_number":129,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"6060ba9a-a744-420e-ad42-30b24e7ae8f7","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":129,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"7ab16788-1f84-4f45-9295-704012423796","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":129,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"5e40c9e7-1a9c-4660-b356-434b287f6317","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":129,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"6709d12e-6f27-4725-9c04-cba674cc1950","block_type":"box","text":"entire volume of securities purchased or sold. When this occurs, the various prices may be averaged, and the Funds","page_number":129,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"c2fa6afb-8ba2-4b7e-ac0e-9643c0eb17bb","block_type":"box","text":"will be charged or credited with the average price. Thus, the effect of the aggregation may operate on some","page_number":129,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"b0038818-f483-4dd1-a1b5-9249864ca072","block_type":"box","text":"II-92","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0a1278a6-be08-4899-a083-a5a99a95e237","block_type":"box","text":"NM1026U-5993100-129/236","page_number":129,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"695199f4-005b-4cb6-ba86-81dfe52b3730","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under certain circumstances, the Funds will not be charged","page_number":130,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"db401151-1c61-48aa-8981-657e64cf595e","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":130,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"b0d6675f-0091-4ecb-8031-6abcad633103","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage—Transactions in Portfolio","page_number":130,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"7985d225-6f2b-42e7-85e8-254ddddc43b6","block_type":"box","text":"Securities,” BlackRock, unless prohibited by applicable law, may cause a Fund or account to pay a broker or dealer a","page_number":130,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"ff3c18e6-eb67-42ee-9969-c27ae5007246","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":130,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"c729a19d-cb44-4f45-96ab-5fb2a9c1e4c4","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":130,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"29dc9d86-0fc2-4985-82cb-8fed1192dd70","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":130,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"99b60a01-933d-4276-9bf9-9882e1fe1480","block_type":"box","text":"sub-adviser to certain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":130,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"91d103de-6008-4c7a-bb08-bddc88e552f1","block_type":"box","text":"than through client commissions.","page_number":130,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"2156c257-ab0d-4797-8bf0-1692dae0791f","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":130,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"f0c0a377-5a2d-4981-afcc-f4ccb88817a8","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":130,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"e4f99b96-e98d-4856-86a4-069134c6cb46","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":130,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"3984c344-fbc8-4a2c-8ad6-1f8373e79809","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":130,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"8424d3b4-ca47-47cb-a980-6605144666c0","block_type":"box","text":"services may include, to the extent permitted by law, research reports on companies, industries and securities;","page_number":130,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"db131837-dacf-4bf1-aedb-032d1b473a48","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":130,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"6e12004c-15fb-4d30-beaa-cc95e5fc201b","block_type":"box","text":"research-oriented software and other services and products.","page_number":130,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"b3e82356-d937-4316-94b2-4b042bbf064a","block_type":"box","text":"Research or other services obtained in this manner may be used in servicing any or all of the Funds and other","page_number":130,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"3f13ada4-1e17-442d-b9bd-b7ca2717fbfc","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":130,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"de8ec025-4aaf-4a7a-9fd3-50ef83ccbe0c","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":130,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"7de8ed4f-d78b-4a0c-9441-78f2707fde9b","block_type":"box","text":"disproportionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":130,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"4489735c-6c31-451a-8541-2c8ce610e692","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":130,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"61099b61-cdfe-48dc-a84d-a98eb12b46cd","block_type":"box","text":"that are paid for through one client’s commissions may not be used in managing that client’s account. In addition,","page_number":130,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"49055672-50ba-4ecb-aa51-8a3a39c0febc","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including disproportionate benefits, of economies of scale","page_number":130,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"0960e80a-cadf-467a-a6fa-ae8306cea793","block_type":"box","text":"or price discounts in connection with products and services that may be provided to the Funds and to such other","page_number":130,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"b8812f00-0b07-43a3-ad17-3323db8db89e","block_type":"box","text":"BlackRock client accounts. To the extent that BlackRock uses soft dollars, it will not have to pay for those products","page_number":130,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"583b6203-9f0d-44dd-b90d-ccda672233b0","block_type":"box","text":"and services itself.","page_number":130,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"51a3616b-d486-4796-bc5d-5d22c86f4bae","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":130,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"80d6d3bf-c689-4416-9f85-f62616a3796d","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":130,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"43732f45-a556-412c-b10e-2cd2caeb678e","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":130,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"c8f46de0-8ce1-4874-abd7-017fac8c8597","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":130,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"76e7ba2c-280c-40f2-bc7e-fae829e21596","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":130,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"c87b255c-4f54-4fe1-a43e-13a49717fae1","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a portion of the commissions or","page_number":130,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"3d7c8576-4a59-400a-a151-8dbcea5f1398","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":130,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"1e10bc67-4d0a-427d-881a-9bce9ebfcb44","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":130,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"00d115c6-d716-4558-bce8-b51668b44393","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":130,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"79d7bca8-2282-4665-b1fa-4e99d8a1c73d","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":130,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"628768bb-ba02-49dc-b454-bbca96971f13","block_type":"box","text":"securities transactions for certain types of securities. These ECNs may charge fees for their services, including","page_number":130,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"634fbf12-9ae7-4f1f-9447-bd21f951ef4c","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":130,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"9140265a-b1e3-4a66-816e-2b1093fbd72f","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":130,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"67e5fb7b-76f0-461e-a5b7-21e0a46322ee","block_type":"box","text":"the cost of the securities purchased. Access fees may be paid by BlackRock even though incurred in connection with","page_number":130,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"4bebf078-0513-40e9-9ad1-1def3939f3cc","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer volume","page_number":130,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"f40a7383-b236-4f58-bacf-0efacb850cc0","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":130,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"5ba0db85-53bd-4c7a-9214-1e452229763f","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":130,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"82fb404d-bebf-4ded-aafb-792ce72bfb48","block_type":"box","text":"BlackRock owns a minority interest in, and is a member of, Members Exchange (“MEMX”), a newly created U.S.","page_number":130,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"4c3b821e-d5b4-43ff-8b92-3394aa99210a","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third party brokers select MEMX as the","page_number":130,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"bc894198-779a-4a44-a0ee-b015acec5cfb","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client portfolios.","page_number":130,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"46039ebd-a9df-49ae-bd0e-2faeadcfa604","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":130,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"f6984662-9dad-4b68-a279-e4fa56c13464","block_type":"box","text":"voting decisions that it makes on behalf of advisory clients, including the Funds, and to help ensure that such","page_number":130,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"60e32a30-7e02-4f94-87b2-2704d28fc0bf","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Nevertheless, notwithstanding","page_number":130,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"94593fe1-6567-403b-a83c-4898fcde9786","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":130,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"07fceda1-4d6b-4fe7-9b72-24a8647807b7","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":130,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"3e68ee1c-71ed-4f04-b11f-2f314280f4db","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":130,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"1a594bbb-1c3b-439f-b3e8-a1d015b9ff14","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":130,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"8df1e875-c80a-4ea4-850e-35214c22112b","block_type":"box","text":"II-93","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a4c5157a-da23-48e1-8605-6b11dfb9b6c2","block_type":"box","text":"NM1026U-5993100-130/236","page_number":130,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5a0ce7c4-112b-40e2-93de-136209a1bb09","block_type":"box","text":"It is also possible that, from time to time, BlackRock and/or its advisory clients (including other funds and","page_number":131,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"d1921a03-0c95-407e-a191-3bc9a6ef3e2b","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":131,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"5ceebb68-fc0f-4b35-aa53-68933056c5cb","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":131,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"1fa86ab4-c2ea-4ff3-b95e-415582c76b51","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":131,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"cd86838c-02aa-4403-ab2e-212211a21f97","block_type":"box","text":"applicable law, to redeem at any time some or all of the shares of a Fund acquired for its own accounts. A large","page_number":131,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"f8537246-67b0-4dc8-a2ae-6fcc1936e60a","block_type":"box","text":"redemption of shares of a Fund by BlackRock could significantly reduce the asset size of the Fund, which might have","page_number":131,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"1a7fe0bd-4a86-4676-a07f-bc51ff0f229b","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, portfolio diversification and expense ratio. BlackRock seeks to","page_number":131,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"33c9d7e0-7312-4768-b3e1-af6c0d260eb2","block_type":"box","text":"consider the effect of redemptions on a Fund and other shareholders in deciding whether to redeem its shares but is","page_number":131,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"42c9fd7b-c976-489f-a9b8-3d2153928ada","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":131,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"f9947837-8667-4a02-ad01-e2ddddf84df9","block_type":"box","text":"It is possible that a Fund may invest in securities of, or engage in transactions with, companies in which","page_number":131,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"4a721ed0-d6f6-41dc-970b-7c69967dad0f","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. 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With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":131,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"0bf36aa8-70e0-4c23-a402-a8e26591e14a","block_type":"box","text":"sales of the Funds or other products may be greater than remuneration and profitability relating to services to and","page_number":131,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"79ba2d1d-1a05-4870-96eb-3b9fca4e9089","block_type":"box","text":"sales of certain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":131,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"78a34801-69ff-40dd-aee1-60a708a0b1ef","block_type":"box","text":"directly or indirectly receive a portion of the fees and commissions charged to the Funds or their shareholders.","page_number":131,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"6be71903-1d98-4e15-90ae-0d97f929b9c5","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":131,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"5aac75f4-11b5-455f-a772-2b0f147d3090","block_type":"box","text":"management. 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While BlackRock will generally","page_number":131,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"3c5f0753-1301-4448-8269-cbef6b4e797b","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":131,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"e73de7bf-246a-40db-b815-10fd93fa29da","block_type":"box","text":"may be instances where the Fund’s pricing vendors or fund accountants assign a different valuation to a security or","page_number":131,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"5977eeb4-0187-41b5-b9a7-87ebede0c674","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":131,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"738dfd70-096d-44f1-81ce-03da21e33672","block_type":"box","text":"As disclosed in more detail in “Pricing of Shares—Determination of Net Asset Value” in this SAI, when market","page_number":131,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"a2066305-e813-4852-ab48-f30f66f20cd8","block_type":"box","text":"quotations are not readily available or are believed by BlackRock to be unreliable, a Fund’s investments are valued at","page_number":131,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"85e766db-7ab8-43b0-8067-d2d8e047f267","block_type":"box","text":"fair value by BlackRock. BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":131,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"5bfb4925-1c38-4a78-b24e-a56190bef85d","block_type":"box","text":"under the Investment Company Act and acts through BlackRock’s Rule 2a-5 Committee (the “2a-5 Committee”), with","page_number":131,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"12e793f4-b718-46cf-a25e-38efbdd93e38","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":131,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"529c91de-2eb3-45ac-a912-870fcca68a38","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":131,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"3d98bca2-b48c-4334-a5e6-962b9b54d9cd","block_type":"box","text":"price that a Fund might reasonably expect to receive from the current sale of that asset or liability in an arm’s-length","page_number":131,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"6966ba1c-7fc1-4c62-83ef-85efc9b1f488","block_type":"box","text":"transaction. The price generally may not be determined based on what a Fund might reasonably expect to receive for","page_number":131,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"fdfdf884-ad97-42df-a61c-4ffeef346d82","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. While fair value determinations","page_number":131,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"2640ae1c-76a0-4711-b578-53d579e5256d","block_type":"box","text":"will be based upon all available factors that BlackRock deems relevant at the time of the determination, and may be","page_number":131,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"674d221e-eb82-4afa-9276-431078c4ffcd","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third party valuation models, fair value","page_number":131,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"eedf82e1-13ff-413e-bf60-b379ca100e64","block_type":"box","text":"represents only a good faith approximation of the value of an asset or liability. The fair value of one or more assets or","page_number":131,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"eae5d985-b208-444b-94fd-74ff28e0290e","block_type":"box","text":"liabilities may not, in retrospect, be the price at which those assets or liabilities could have been sold during the","page_number":131,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"d69420f8-736a-4250-ad4d-f92f4eb0350c","block_type":"box","text":"period in which the particular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":131,"box":{"x":70,"y":770,"width":779,"height":12}},{"id":"54cb2fc2-c4cf-4042-bcfc-b4f58e409b07","block_type":"box","text":"redemption of its shares at NAV, at a time when a holding or holdings are valued by the 2a-5 Committee at fair value,","page_number":131,"box":{"x":69,"y":785,"width":834,"height":12}},{"id":"947a09ed-f842-497c-b4cc-5ce3d05442fe","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":131,"box":{"x":69,"y":801,"width":788,"height":11}},{"id":"50ce812e-5a30-4695-8443-2ab9d4f1d5a3","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":131,"box":{"x":69,"y":816,"width":765,"height":11}},{"id":"2b6789b6-718f-4425-a3af-e06b4d1e824e","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its short term cash investments in","page_number":131,"box":{"x":101,"y":838,"width":784,"height":11}},{"id":"5cdbc144-1593-4b73-b955-0f50ea131fa0","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":131,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"08f6e496-f08b-4b13-9224-7a003b150cd1","block_type":"box","text":"such investments, a Fund, to the extent permitted by the Investment Company Act, may pay its share of expenses of","page_number":131,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"f0dd77cd-c8a5-4ead-953c-efb94e648ebb","block_type":"box","text":"a money market fund or other similarly-managed private fund in which it invests, which may result in a Fund bearing","page_number":131,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"73a90f73-0178-4d27-ba17-3da07cf1e942","block_type":"box","text":"some additional expenses.","page_number":131,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"cfb34159-8840-4ff8-ae8c-3a443b1ee3f6","block_type":"box","text":"II-94","page_number":131,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"63d032a4-f1be-484c-80c8-56b07d74f13e","block_type":"box","text":"NM1026U-5993100-131/236","page_number":131,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c05f29b0-297b-4cab-af1d-8161fbe672e4","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":132,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"d71470e2-71ed-4b2f-b0e7-eb52ee9a7ab8","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. 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To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":132,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"ad6b144d-ca49-4b91-b459-47db03b1c1f9","block_type":"box","text":"BlackRock each have adopted a Code of Ethics in compliance with Section 17(j) of the Investment Company Act that","page_number":132,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"fcc8bb1a-e703-46bb-a8d0-d1d6aaf6feeb","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":132,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"95a6f2b2-5d0f-4e78-96b5-e778b8f93986","block_type":"box","text":"possession of information regarding the Fund’s portfolio transactions. Each Code of Ethics is also available on the","page_number":132,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"a60686a8-405d-410e-a70f-d2834a4a032c","block_type":"box","text":"EDGAR Database on the Commission’s Internet site at http://www.sec.gov, and copies may be obtained, after paying","page_number":132,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"96708a3b-7038-4c75-bc14-24df3abedd4e","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":132,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"9d86871d-378c-46f0-a88d-3fa95937021d","block_type":"box","text":"BlackRock will not purchase securities or other property from, or sell securities or other property to, a Fund,","page_number":132,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"f18ff219-e6e0-4b87-bd2e-db68e5c04517","block_type":"box","text":"except that the Fund may in accordance with rules or guidance adopted under the Investment Company Act engage in","page_number":132,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"36fc441f-d6be-4c7c-94e9-d58af1bd29a4","block_type":"box","text":"transactions with another Fund or accounts that are affiliated with the Fund as a result of common officers, directors,","page_number":132,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"697134f7-e7fb-49bf-ae7a-3ec429d52eee","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":132,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"f0df063e-95ac-4d72-99c4-6bf78471c9a2","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":132,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"f495f9d6-97e8-40aa-a3f4-b368ec50a39b","block_type":"box","text":"for the Fund to purchase and another client of BlackRock to sell, or the Fund to sell and another client of BlackRock","page_number":132,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"6c22b2b0-5536-4921-a14d-7d8c0713fb06","block_type":"box","text":"to purchase, the same security or instrument on the same day. From time to time, the activities of a Fund may be","page_number":132,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"0d3a810d-4844-466a-9362-031ec1c7749e","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":132,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"4dba5a94-3854-4071-b3bd-b219dbda2a55","block_type":"box","text":"to comply with, limit the applicability of, or that otherwise relate to such requirements. A client not advised by","page_number":132,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"d77a9b33-2dfa-42e6-ae1b-4ab151ef5920","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":132,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"30384a33-2faa-4f43-8546-f8a08e4e0ddf","block_type":"box","text":"initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":132,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"f65928d8-5215-4921-94b6-657d97cdd82e","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is performing advisory or other","page_number":132,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"326df340-831f-4310-9cde-d005fb8c2381","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":132,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"32ec2a33-49e9-40bd-915d-3fdb5b35447a","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":132,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"57ed8580-98a9-4b58-9148-54c909065467","block_type":"box","text":"of that company on behalf of a Fund, particularly where such services result in BlackRock obtaining material non","page_number":132,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"ab78382f-7412-4997-b319-78124d7cc2c7","block_type":"box","text":"public information about the company (","page_number":132,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"62c52b94-3e95-4aa6-bda7-65de7cc769f9","block_type":"box","text":"e.g.","page_number":132,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"72687bc4-11d6-4b71-82fb-13202bffe2f4","block_type":"box","text":", in connection with participation in a creditors’ committee). Moreover,","page_number":132,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"81551ea2-81a7-4a7b-9c37-a7beb305bd7a","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":132,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"d10d6185-0ce0-4fdd-98b3-1932a97a4526","block_type":"box","text":"BlackRock from effecting certain portfolio transactions or taking other actions in respect of an investment on behalf","page_number":132,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"5adc9ce3-93c5-4096-87b7-583690365265","block_type":"box","text":"of a Fund, including where BlackRock and/or clients advised by BlackRock already have an interest in such issuer or","page_number":132,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"5147d0a8-186a-4feb-83a8-2192d49397a1","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":132,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"00dd7064-4250-4c11-b129-f88b64fb008e","block_type":"box","text":"securities of which the Funds wish to purchase or sell. However, if permitted by applicable law, and where consistent","page_number":132,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"6eb73836-a6c4-410b-90b3-618caa5ad3a0","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":132,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"527329b9-a2d0-428e-9af7-b86a57aab595","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":132,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"b6fcc52a-2591-4d45-8b35-e14c64fdc92a","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":132,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"7cf544ef-a501-44ad-bc5f-dd06ca95c852","block_type":"box","text":"of the issuer.","page_number":132,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"43eed213-51a0-46a0-af81-53829bf868b3","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":132,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"3a50a017-d143-4bd9-9ca5-d5d59bd1c1e8","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Certain","page_number":132,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"5d0f4c65-77eb-49b2-9e76-61c4c03ed591","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":132,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"2f4c12fc-364f-4c9f-a0b5-860fb283dcd2","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Certain portfolio management teams within BlackRock may","page_number":132,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"747f7058-4e95-4d52-b918-d40a3ce645c8","block_type":"box","text":"make decisions or take (or refrain from taking) actions with respect to clients they advise in a manner different than","page_number":132,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"d8f5a90b-284a-4170-a0a8-cddb3cdb5707","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ portfolio management teams. The","page_number":132,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"4764ea48-7103-4e8e-820a-34ae9e41cfaa","block_type":"box","text":"various portfolio management teams may not share information with each other, including as a result of certain","page_number":132,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"f30c3c89-aafc-44b7-9776-a68d6f6a0670","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":132,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"608a2d81-dcc2-4913-aeb5-22db31a39ee8","block_type":"box","text":"BlackRock has established certain information barriers and other policies to address the sharing of information","page_number":132,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"002f2e02-c0ff-4f14-b0e1-8301a90a9da8","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":132,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"df11ee19-6197-4305-a2bf-0906cc9e4253","block_type":"box","text":"portfolios and voting proxies with respect to certain index equity portfolios versus those responsible for managing","page_number":132,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"e05fe33b-6f23-4d11-b75d-c79165cf8e2d","block_type":"box","text":"portfolios and voting proxies with respect to all other portfolios. As a result of information barriers, certain units of","page_number":132,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"4900bbf5-7783-4960-961b-a5509eff1e39","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to certain information and personnel, including","page_number":132,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"32458756-40fd-4aac-b09d-e50494262fad","block_type":"box","text":"senior personnel, in other units of BlackRock, and generally will not manage the Funds with the benefit of information","page_number":132,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"55a5a4a6-db09-4db8-a284-ed523067865d","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":132,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"2259f06a-ea94-4f65-80ff-56129119292f","block_type":"box","text":"with the benefit of information held by certain areas of BlackRock.","page_number":132,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"4cdbff8f-8224-44f5-8205-2366b4a63efe","block_type":"box","text":"BlackRock may determine to move certain personnel, businesses, or business units from one side of an","page_number":132,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"57d3f57f-ae8a-44c8-82e5-b36797c07fb6","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":132,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"405289b9-c67e-4b59-a62d-d3ee32bb3df8","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":132,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"bad427d6-ff52-40d3-b66e-d39ef50054d4","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":132,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"c753d6fd-4b90-4cd1-a344-2c9f6d0ab164","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":132,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"5ee85157-fa13-4395-bb54-456c26248de7","block_type":"box","text":"II-95","page_number":132,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"13807b06-d1db-4983-8895-d0914aaff268","block_type":"box","text":"NM1026U-5993100-132/236","page_number":132,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"596268d7-00f7-46ed-a45a-23cd5c245e68","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":133,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"76334191-8b56-4a45-8df3-036f007407fb","block_type":"box","text":"purchased or sold for a client in the absence of a change to an information barrier). Information barriers may not","page_number":133,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"cb1b2348-70a1-47b9-a0c9-9118d4b72157","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadvertent crossings of the barriers,","page_number":133,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"93964090-952d-487b-a8cd-ec1c79286254","block_type":"box","text":"and actions by personnel on one side of a barrier may impact the potential actions of personnel on the other side of","page_number":133,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"229b60e8-b81c-4918-8f6d-f7f0b1f69002","block_type":"box","text":"a barrier.","page_number":133,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"59d6f18b-b254-4913-8425-13349bb1e1ba","block_type":"box","text":"Although the information barriers are intended to allow for independent portfolio management decision-making","page_number":133,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"8e68aa82-c5d3-49b2-9e9a-bb3aa414f8a9","block_type":"box","text":"and proxy voting among certain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":133,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"bf91f4b8-dc26-4b12-aa9d-709b24ebaf3e","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":133,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"66a7fdf4-601e-4628-8561-5e2a194482c7","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":133,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"8e5ab954-bb45-4738-9326-14dcd56db96a","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":133,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"1bd4c021-36e0-4b04-a590-a7faf27b6c7a","block_type":"box","text":"issuers. For example, in certain circumstances where a BlackRock client invests in securities issued by companies","page_number":133,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"0d008251-9b92-4b25-a891-ee550c5d3bf3","block_type":"box","text":"that operate in certain industries (","page_number":133,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"91680cb2-63ae-49e2-87f9-bc768d314083","block_type":"box","text":"e.g.","page_number":133,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"94b2fd25-b1d2-4a59-bc6c-1efcd746a0a7","block_type":"box","text":", banking, insurance, and utilities) or in certain emerging or international","page_number":133,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"54913d02-ccc1-4e1f-9dfd-dc65f2e0aea5","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":133,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"d206ef9b-fa50-4fa1-98ce-8570f12556b4","block_type":"box","text":"e.g.","page_number":133,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"2f9d2860-ce92-426f-8de4-d4ef41d5ccdc","block_type":"box","text":", with mechanisms such as poison pills","page_number":133,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"5fe29190-3a63-40de-b2c6-d61c5a068e9b","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in certain futures and derivatives, there may be","page_number":133,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"f60c28a1-53d1-4496-afa5-e36f62bb5244","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":133,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"38ff76ec-d7d7-4b27-8605-309c6bee2d9b","block_type":"box","text":"not be exceeded without the grant of a license or other regulatory or corporate approval, order, consent, relief, waiver","page_number":133,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"bcb432b1-66ee-412f-a322-a0901f0530ee","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":133,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"b47510ac-c4e0-4edd-be66-0223e4bafed7","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance reporting, increased","page_number":133,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"520432c4-9486-44d0-b07d-37350d8d05d7","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of certain restrictions, BlackRock may also","page_number":133,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"7bebeccd-e67f-4353-aeec-40c26c62ff53","block_type":"box","text":"seek to make indirect investments (","page_number":133,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"c35c9d2b-d51b-4a0c-a8b8-a137cd71c1b7","block_type":"box","text":"e.g.","page_number":133,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"cbd71121-96c7-4aee-ab03-c5014f178bc7","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to certain","page_number":133,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"d939fdd0-2b16-42b4-b6cf-0e80b5dbebb7","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":133,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"cb4decad-4430-4d84-b49f-92919d8ed132","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":133,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"a4fed1ca-8261-4419-b8e7-b5ed1dd9fadc","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":133,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"f833e1c6-68d2-450e-a6da-d276935057de","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":133,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"15643a29-a38a-4384-9ffb-7cca81482107","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Certain clients or shareholders may have their","page_number":133,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"56cb501d-5f32-44c0-9923-011e6aa1879b","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":133,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"77f9bb5f-487a-47ab-ae56-c0e5f0d29423","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":133,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"6529aabf-19da-4242-b14f-32f82291e052","block_type":"box","text":"client or as a result of corporate actions by the issuer, the ability of BlackRock on behalf of clients to purchase or","page_number":133,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"ded1e1b4-96ff-4115-90a6-1b57345f946a","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or undertake business transactions, may be restricted by","page_number":133,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"d22b8705-1df2-4e20-81ee-c8196ae6ef34","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":133,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"6cb97f7e-75bd-4050-8695-1de459196c67","block_type":"box","text":"an ownership limitation or restriction, a client may be unable to purchase or directly hold a security the client would","page_number":133,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"0b94a5fc-4e6e-4294-8a85-9e08237ca1f4","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":133,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"a08ea509-82b8-4845-9132-8f6e81bc9825","block_type":"box","text":"instead of the specific client being restricted. For index funds, this means a fund may not be able to track its index as","page_number":133,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"5486a032-165c-4410-97da-7550380e1a99","block_type":"box","text":"closely as it would if it was not subject to an ownership limitation or restriction because the fund cannot acquire the","page_number":133,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"cfe587f5-3c11-4eed-a972-9bbdd8bb9fd8","block_type":"box","text":"amount of the impacted security included in its index. BlackRock on behalf of its clients may limit purchases, sell","page_number":133,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"bb3eb6f1-e58d-4e49-a7c7-28668afc0de3","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":133,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"a93bf605-124e-4c47-a2de-e03fb2771273","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":133,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"62ff31a1-fe52-4f89-b29d-32b5c3362bd9","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":133,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"187fb528-79b0-4670-8e2d-f740cacfed50","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":133,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"d293a09e-8bac-4a93-be56-56f25dec885c","block_type":"box","text":"restrictions could negatively impact a client’s performance or ability to meet its investment objective.","page_number":133,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"05bda05c-0005-44d9-9499-8ff6bddb640b","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":133,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"47773f6f-f4b4-4f16-8d1b-8f4487d9ba1f","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":133,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"f00a3fae-c088-4678-a01e-336867e3ca65","block_type":"box","text":"permission will be granted, or that, once granted, it will not be modified or revoked at a later date with minimal or no","page_number":133,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"7011a773-61c4-407d-8fbf-a43fa9edad60","block_type":"box","text":"notice. The issuer and/or regulator may also require that BlackRock on behalf of itself and its clients take or refrain","page_number":133,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"da106e01-8947-411b-9fcd-1de4e0e5e464","block_type":"box","text":"from taking certain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":133,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"d94cb180-d77d-47a8-803c-492318984296","block_type":"box","text":"may accept if it believes the benefits outweigh the costs and may limit BlackRock from taking actions that it","page_number":133,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"e3e75562-2c69-4962-a1f9-69527bb844f2","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":133,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"b55edf0e-db83-48a6-a697-775e193ff45c","block_type":"box","text":"BlackRock seeks to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":133,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"09eaf643-790d-423a-9260-6199fe36c7b2","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent the","page_number":133,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"458ef1bb-1c6b-42df-b42b-3897af0ec2c8","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":133,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"404e7b90-b2e0-4853-8225-ee6917896870","block_type":"box","text":"certain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":133,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"3c98a6ae-7222-4346-9032-4857cd173be3","block_type":"box","text":"respect to ETFs, remove such securities from the list of Deposit Securities to be delivered to the Fund in connection","page_number":133,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"cff443b7-19cc-4f9d-9087-b59987b0dd9a","block_type":"box","text":"with purchases of Creation Units of such Fund. If client holdings of an issuer exceed an applicable threshold and","page_number":133,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"d0780c69-7ace-4533-9e7a-8608286eaeac","block_type":"box","text":"BlackRock is unable to obtain relief to enable the continued holding of such investments, it may be necessary to","page_number":133,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"0bd84927-b38c-4f34-80eb-553a04ccff7e","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":133,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"914e6e4f-632a-420a-b3d5-fa311a6cbd72","block_type":"box","text":"actions. 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Any Fund that enters into a license for a BlackRock index cannot be assured that the terms of any","page_number":134,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"ab9ca6a0-ee9e-4aac-bcee-7222fce8ce0a","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":134,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"87313e9e-8448-4ac9-85d5-635727c0a04a","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-party service providers to a Fund (","page_number":134,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"f794af6a-50e9-4e88-91a2-9b4b4b9dd61c","block_type":"box","text":"e.g.","page_number":134,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"3f300473-f4d0-41aa-9d0b-acf5e52362af","block_type":"box","text":", custodians,","page_number":134,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"e02d6c8a-5723-4ad9-bc90-1f29eccf68e2","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":134,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"39d27b05-c57d-443f-b226-a3b83f6fb67b","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":134,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"fdb220e3-7ee1-4096-a5d9-950253654033","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":134,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"aecdde9c-1b67-4467-883c-11d4a7461428","block_type":"box","text":"provider’s services are terminated with respect to a Fund. To the extent that BlackRock is responsible for paying","page_number":134,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"b4a08103-5375-482e-96f2-f095200dec7b","block_type":"box","text":"service providers out of its fees that it receives from the Funds, the benefits of lower fees, including any fee","page_number":134,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"0baf7c4d-c8f9-4cd7-b4d1-23d43ea25ffb","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in part, to BlackRock, which could result","page_number":134,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"3d9f8ceb-a305-47c8-96ee-b263386a9649","block_type":"box","text":"in conflicts of interest relating to the use or termination of service providers to a Fund. 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For example, differences in the advisory fee structure may create the","page_number":134,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"0f258639-71ed-499c-b08d-99e98a6e1a61","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":134,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"575fb02a-9485-4679-bd13-8f21362a039b","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":134,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"626aa533-4e85-44f7-bddc-2aabf3e0474b","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/or","page_number":134,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"e5101982-5173-4415-9ab0-023aefe71e08","block_type":"box","text":"information systems used by Fund service providers. These systems are, or will be, used by a Fund service provider","page_number":134,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"28d21d1d-0987-4393-b571-c1c859c3b27e","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":134,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"f7b87cdc-d6a2-4a2f-812f-32e23e50846d","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":134,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"6851bcdd-1dfb-4621-a60e-f02fa1371438","block_type":"box","text":"provider remunerates BlackRock for the use of the systems. A Fund service provider’s payments to BlackRock for the","page_number":134,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"02ba08f1-f07d-4ed5-ac69-1518f86ef3ed","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":134,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"9bb1a7a3-fd01-4cd9-9f94-7a350eb93b0c","block_type":"box","text":"BlackRock’s receipt of fees from a service provider in connection with the use of systems provided by BlackRock","page_number":134,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"5b1fc1c8-c495-43b9-92ca-253d8267787c","block_type":"box","text":"may create an incentive for BlackRock to recommend that a Fund enter into or renew an arrangement with the service","page_number":134,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"e9db4bda-6266-462d-aea0-a472236a3e30","block_type":"box","text":"provider.","page_number":134,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"69c1062e-4439-4732-8087-fc6dd998c392","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":134,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"438a0d29-c240-4037-94c6-c49904683a9f","block_type":"box","text":"arrangements for certain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":134,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"43a9e8b8-5d15-4aca-b193-da036838a839","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":134,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"4b24c973-2a29-4542-be39-379cce3c971e","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":134,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"1763f445-bca5-490c-a5cf-b1ed835cf0a8","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":134,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"957cd9bf-5a65-4c55-925e-4a83c13e6fd1","block_type":"box","text":"PURCHASE OF SHARES","page_number":134,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"842b2946-e4d4-4fd8-afbf-dd689b70e00a","block_type":"box","text":"Most BlackRock-advised open-end funds offer multiple classes of shares under a plan adopted under Rule 18f-3","page_number":134,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"ae71a41c-cb69-4051-9e5d-7953cbc5574f","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":134,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"fe4a466d-cde5-47f4-8bba-0f401a5caabd","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Short Obligations Fund are","page_number":134,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"3b2e32f2-64c2-4e9d-a506-58b2e7d3cac6","block_type":"box","text":"generally not subject to an initial sales charge, and Investor C Shares are sold to investors choosing the deferred","page_number":134,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"849fb834-ebe9-4a77-b880-87775e258280","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to certain investors purchasing shares of Funds","page_number":134,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"46905eb8-472c-492f-9955-6d32a66e0cb5","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":134,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"b893df16-0008-4d7e-8c6a-a8a678869707","block_type":"box","text":"II-97","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c242b0c2-eb32-4751-8522-dcc86a3eab22","block_type":"box","text":"NM1026U-5993100-134/236","page_number":134,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ef03d59d-872e-4950-9c15-1723ec6afa67","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":135,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"54b46012-62c6-4ed7-b551-cec1e27d888d","block_type":"box","text":"Certain Funds offer Class R Shares, which are available only to certain employer-sponsored retirement plans and are","page_number":135,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"b3ef1cf6-7035-446a-b5ca-9b257f88afc9","block_type":"box","text":"sold without a sales charge. Certain Funds offer Class G Shares, which are available only to investors on eligible","page_number":135,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"9787e603-634a-4fd5-81e5-a6f1d912f680","block_type":"box","text":"platforms, which are platforms where clients invest in the Fund through a single omnibus account in the name of a","page_number":135,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"1ab03f27-af48-466f-8397-70b25d56c64e","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, certain Funds offer Service","page_number":135,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"a6183165-54ae-46ce-a698-d9cc6203f9b0","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to certain eligible investors. Please see the","page_number":135,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"200fc309-d2b7-477b-acee-f10d5b92bef6","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":135,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"e0d1fdb1-2f57-4a0a-8968-86b7d68aa778","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":135,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"c91024b0-3eb0-4a9a-b672-913e85c55371","block_type":"box","text":"The applicable offering price for purchase orders is based on the NAV of a Fund next determined after receipt of","page_number":135,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"00def561-1be9-4fc9-999c-f7b7d963c502","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":135,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"18973a10-8297-4a84-9b03-7067df36464a","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":135,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"42ba5e04-1fa6-4a70-b8bf-52c6abcc0b83","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":135,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"fa0e3013-4ad4-4c87-97de-98255d854459","block_type":"box","text":"offering price of each affiliated underlying fund is based on the NAV of such affiliated underlying fund next determined","page_number":135,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"f683e93f-b5a9-4886-a278-f7d11fe3fc2e","block_type":"box","text":"after a purchase order is received, or deemed to be received upon receipt by a Selling Dealer, by the BlackRock","page_number":135,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"327bccff-7bd8-4f20-99ef-99ce27452ba0","block_type":"box","text":"Target Date Funds that allocate a portion of such purchase order to such affiliated underlying fund. As to purchase","page_number":135,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"5d3109b7-dece-45c2-bd32-816ab29aef2a","block_type":"box","text":"orders received by Selling Dealers or BlackRock Target Date Funds prior to the close of business on the New York","page_number":135,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"9cfb41b2-4021-4da6-a624-c863ea8248a4","block_type":"box","text":"Stock Exchange (“NYSE”) (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the order is placed,","page_number":135,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"56262f3e-fbf7-4821-b3f0-51d74a0ce93e","block_type":"box","text":"including orders received after the close of business on the previous day, the applicable offering price is based on","page_number":135,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"4a875967-509c-4c12-80fd-c8c6cd0d2dc0","block_type":"box","text":"the NAV determined as of the close of business on the NYSE on that day. If the purchase orders are not received by","page_number":135,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"8172eb29-18d0-4c68-ac2d-50edd2eb02e6","block_type":"box","text":"the Selling Dealer or a BlackRock Target Date Fund before the close of business on the NYSE, such orders are","page_number":135,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"bd0c36a4-d369-4536-aecf-af9f48e382e7","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":135,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"70174b1a-4e3d-44c4-976e-4d52dbd8f29d","block_type":"box","text":"payment on a timely basis. Generally, if payment is not received within the period described in the Prospectuses, the","page_number":135,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"097a07ea-2f35-4698-9178-b1b8b5a7677a","block_type":"box","text":"order will be canceled, notice thereof will be given, and the broker and its customers will be responsible for any loss","page_number":135,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"e2a66f10-2550-4d84-9af4-4c52fb825a1a","block_type":"box","text":"to the Fund or its shareholders. Orders of less than $500 may be mailed by a broker to the Transfer Agent.","page_number":135,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"58e507be-2ae9-4808-96c2-15738026e895","block_type":"box","text":"The minimum investment for the initial purchase of shares is set forth in the Prospectus for each Fund. The","page_number":135,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"8688eba7-be95-4dd3-8b17-9c1407e8d324","block_type":"box","text":"minimum initial investment for employees of a Fund, a Fund’s Manager, Sub-Advisers or BRIL or employees of their","page_number":135,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"1ad8066e-90e5-4e24-a12c-14645d04aad5","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":135,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"813228ab-6d4f-49d0-97a6-02eb4992f358","block_type":"box","text":"investment is $25.","page_number":135,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"d6bceb58-ea36-4772-b86d-3b101ff9ee0e","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":135,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"a0cb3882-ed3b-4972-baec-74a33ceecdf7","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for certain investors","page_number":135,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"444aa02c-a0dd-4201-954f-f4f1ad72f235","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":135,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"458f7779-270f-4353-b9a1-63bbd1ff1e21","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":135,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"d9fde818-4a11-41b5-b33f-fc1534833406","block_type":"box","text":"subsequent investment requirements and suspend and resume the sale of any share class of any Fund at any time.","page_number":135,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"b73d9056-7667-47b9-b30e-e2919a747966","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":135,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"924b619c-6f7b-4e33-8e18-90aa0ed2fbf5","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":135,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"feb0a39a-9e00-496f-ace8-c684000c3bb9","block_type":"box","text":"class of shares of the same Fund, provided that the exchanged shares are not subject to a contingent deferred sales","page_number":135,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"bf886def-8c68-4ee0-a5d7-f6408735dfa4","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":135,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"244e0ed5-2547-4ee4-a3b4-bb4cb2e923bd","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":135,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"4901d6e4-85ed-40f4-8378-90b44a641450","block_type":"box","text":"Each Fund or the Distributor may suspend the continuous offering of the Fund’s shares of any class at any time","page_number":135,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"12c179d8-0249-4eea-b9cc-21bd8dc8b425","block_type":"box","text":"in response to conditions in the securities markets or otherwise and may resume offering the shares from time to","page_number":135,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"fa315992-43e9-47b2-b654-a724d40a0a31","block_type":"box","text":"time. Any order may be rejected by a Fund or the Distributor. Neither the Distributor, the securities dealers nor other","page_number":135,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"7a6ca7d4-9500-4551-9ae0-85e44624ad8c","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":135,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"4b9c8339-7785-460a-a5d2-4418279fcd05","block_type":"box","text":"The term “purchase,” as used in the Prospectus and this SAI, refers to (i) a single purchase by an individual,","page_number":135,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"6faef9f0-4ae7-44e0-8da5-4cdcc28362fb","block_type":"box","text":"(ii) concurrent purchases by an individual, his or her spouse and their children purchasing shares for his, her or their","page_number":135,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"6874aecd-b601-4547-a705-9f4d23ff5e13","block_type":"box","text":"own account, and (iii) single purchases by a trustee or other fiduciary purchasing shares for a single trust estate or","page_number":135,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"4e553c3a-7ea5-498b-b989-e20d271ecb3a","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":135,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"71329f81-694f-425c-94a7-0aa2b99dd921","block_type":"box","text":"purchases by any “company,” as that term is defined in the Investment Company Act, but does not include purchases","page_number":135,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"19123f08-9638-4264-8aa1-fefe2ec394ef","block_type":"box","text":"by (i) any company that has not been in existence for at least six months, (ii) a company that has no purpose other","page_number":135,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"ca63de3d-5e02-44a0-a032-8dac24c73000","block_type":"box","text":"than the purchase of shares of a Fund or shares of other registered investment companies at a discount, or (iii) any","page_number":135,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"a237726f-8c42-45ba-a2aa-7e87cd859a32","block_type":"box","text":"group of individuals whose sole organizational nexus is that its participants are credit cardholders of a company,","page_number":135,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"46b71d59-6108-4ccb-8ab5-7756a7569d85","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":135,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"c412259a-dd0f-45bc-bb17-36eaa4dfc673","block_type":"box","text":"adviser.","page_number":135,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"2200b856-824e-4d32-996e-bab4abe57936","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":135,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"20487cf1-be9f-437d-ba4d-0c5c67215db1","block_type":"box","text":"and may not be distributed by a foreign financial intermediary. Under this policy, in order to accept new accounts or","page_number":135,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"2cbf59b6-87c3-4bb3-9765-a2f4d9188357","block_type":"box","text":"II-98","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"efdd50bc-a2da-4e24-a9f4-57e13094db48","block_type":"box","text":"NM1026U-5993100-135/236","page_number":135,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"08762378-068d-4b5d-97a9-de7d2176d253","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":136,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"318cd131-18c3-470e-9e6c-32bf93b0299f","block_type":"box","text":"requires that (i) a shareholder that is a natural person be a U.S. citizen or resident alien, in each case residing within","page_number":136,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"a72a8a8e-622b-4698-a322-d30bd2ada988","block_type":"box","text":"the United States or a U.S. territory (including APO/FPO/DPO addresses), and have a valid U.S. taxpayer","page_number":136,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"9ed0c931-2869-4ae0-a417-abac8eb3b7bf","block_type":"box","text":"identification number, and (ii) a financial intermediary or a shareholder that is an entity be domiciled in the United","page_number":136,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"de5c304c-c9a7-41e0-b8dd-8ae5741c7e8a","block_type":"box","text":"States and have a valid U.S. taxpayer identification number or be domiciled in a U.S. territory and have a valid U.S.","page_number":136,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"996a5d7a-4fee-490f-962b-4b740b59134b","block_type":"box","text":"taxpayer identification number or IRS Form W-8. Any existing account that is updated to reflect a non-U.S. address will","page_number":136,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"54cb46d3-f801-4ae9-b284-a0711e5077a8","block_type":"box","text":"also be restricted from making additional investments.","page_number":136,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"297f5d46-d3b1-4305-aedd-03ce35518bd9","block_type":"box","text":"In-Kind Purchases","page_number":136,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"c66e2b4a-f9cc-4dc4-aca0-6ec0bac312c1","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":136,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"8a3700fb-c62a-456c-887b-3ef632bc17da","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":136,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"9138098b-863a-4ff5-9b38-ec8bf8f36cf0","block_type":"box","text":"limitations of the Fund as described herein. In connection with an in-kind securities payment, the Fund may require,","page_number":136,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"04830a60-1bf4-4fc4-9490-c154f97a4822","block_type":"box","text":"among other things, that the securities: (i) be valued on the day of purchase in accordance with the pricing methods","page_number":136,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"424b101f-8f39-4eef-b8b9-6f6886dd35f9","block_type":"box","text":"used by the Fund; (ii) be accompanied by satisfactory assurance that the Fund will have good and marketable title to","page_number":136,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"2e36f0f9-fa64-44ff-9f0e-e227f30d787d","block_type":"box","text":"such securities; (iii) not be subject to any restrictions upon resale by the Fund; (iv) be in proper form for transfer to","page_number":136,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"2e488a31-3f25-4a37-8586-8d42fcf4594a","block_type":"box","text":"the Fund; and (v) be accompanied by adequate information concerning the basis and other tax matters relating to the","page_number":136,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"bb5b4e78-b015-479d-9d4b-4cb29ae2382f","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become the property","page_number":136,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"63372915-a230-4d03-a20f-a7bcbcc678fc","block_type":"box","text":"of the Fund engaged in the in-kind purchase transaction and must be delivered to the Fund by the investor upon","page_number":136,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"21969926-418d-4d1b-b6c2-48ca3326e961","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":136,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"a9fc8508-5c6d-4ea6-b8e0-e52fa850efa5","block_type":"box","text":"has settled.","page_number":136,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"f03ea12a-d590-4919-94a6-d536d1dc1191","block_type":"box","text":"Institutional Shares","page_number":136,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"c3d1043b-1a36-49eb-bb21-347264d1090d","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are eligible to","page_number":136,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"00cfd42a-0bbb-4980-b675-8c4cb63771dd","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":136,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"6c2ba8e8-5507-4576-a1aa-ef05d4b7e986","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":136,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"f7a365ec-d5ff-4935-a128-9ef09e30e79d","block_type":"box","text":"Investor A, Investor A1, Investor C, Investor P, Class R or Service Shares. A Fund may in its discretion waive or modify","page_number":136,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"5288b3d6-19e7-457a-8a18-cff69a0de312","block_type":"box","text":"any minimum investment amount, may reject any order for any class of shares and may suspend and resume the","page_number":136,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"50cf3a0a-31a2-421d-8702-99c24d16f03f","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":136,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"929d38dc-75a0-4bbb-8e6a-228b5c4ceeae","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":136,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"feec1f36-fad0-4f94-b1e1-de1081935739","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":136,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"79a977c9-e225-443f-888d-1b6598f57c67","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":136,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"13b5b972-52fa-4ea0-8bc1-b4a06e1e6809","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":136,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"a244987f-4afc-4f4f-8448-c94499bece90","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":136,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"ae64b86f-0a47-4862-a156-0c73179b2bec","block_type":"box","text":"redemption of Fund shares. Each broker-dealer or agent is responsible for transmitting to its customers a schedule of","page_number":136,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"0562eca2-3d7d-45c8-834a-196bf8a5e791","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":136,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"2c58f6b5-ed45-4d32-a584-6292bf214436","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":136,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"ae749c2a-a893-49d2-8da3-f5ad466a5130","block_type":"box","text":"these fees and conditions.","page_number":136,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"97da4a12-036a-4020-ac03-62e7210f6706","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":136,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"910684ac-20a0-4e08-87db-12483531e94a","block_type":"box","text":"4 p.m. (Eastern time) on the first business day following receipt of the order. Payment may also, in the discretion of","page_number":136,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"b02ee6ca-fe11-4b23-a739-b8027f436ee1","block_type":"box","text":"certain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":136,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"be854d6d-bdf6-4faf-b0e2-f6c6ebb57d2d","block_type":"box","text":"purchase order is not received by the prescribed time, an investor may be liable for any resulting losses or expenses","page_number":136,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"6133a21e-425f-4339-a2a9-b6a22fbfe037","block_type":"box","text":"incurred by the Fund.","page_number":136,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"c08c8525-830d-4320-88b4-6ed0a4bb66e7","block_type":"box","text":"Certain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":136,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"d7ae151b-d470-4dcd-a1b9-aac4fff6b121","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":136,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"bbfd596b-e541-4253-a898-02c9367963cb","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":136,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"576b8f71-c009-48e1-a87b-0f6fcd7dd159","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":136,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"ad66cddb-7fff-47d1-a8e8-03d26fd20b85","block_type":"box","text":"investment of $2 million who may purchase shares of a Fund through a financial intermediary that has entered into","page_number":136,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"e20f89cc-7ba5-4986-8e23-3e97934a9f23","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":136,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"ed6a17a1-66a3-4f21-9fe9-ee362de25ae4","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":136,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"67618510-45a9-4e34-bd85-5db3308f9aeb","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":136,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"456b6e39-ebed-43cd-b0ad-7cfe31c14c90","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":136,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"6bb55d1d-c4d6-4b09-9b33-0fac69e89476","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":136,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"941cde7d-9252-4dbf-8a39-ccefdf9e1e66","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":136,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"7d6f171e-37e9-411a-8b03-bb053a04aef3","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":136,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"933e9488-24ab-449e-8b08-082f17e96c5a","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":136,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"fda29b3e-92ad-4fbe-9c88-34373ca54599","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":136,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"10a78bf9-347f-45fc-bc5f-df3f406d8f42","block_type":"box","text":"(i) charge such clients a fee for advisory, investment consulting, or similar services or (ii) have entered into an","page_number":136,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"b010a63b-7491-450e-a88a-320d7c4f5e9f","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":136,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"e50a1ec3-0360-48de-ba9b-b77e435a2ab8","block_type":"box","text":"II-99","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b204d6f0-76d1-4c8d-8be6-4cdba6648d16","block_type":"box","text":"NM1026U-5993100-136/236","page_number":136,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"718dbe97-311d-4ace-8a1b-31f4931586f0","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":137,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"c1ec1790-3edd-458d-abab-2a294aff4b9c","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":137,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"0372b7ae-bc71-4ecf-845d-c5492e9043a6","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":137,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"455eb754-eb0a-4197-9e90-ad1ff5132346","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":137,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"fc9bbd83-f5e3-405f-81e4-6c4433df4aba","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":137,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"7471fa66-48d4-41f1-8ce3-0151f24072b9","block_type":"box","text":"minimum initial investment of $1,000; trust department clients of Bank of America, N.A. and its affiliates for whom","page_number":137,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"c6d2928a-076c-4a17-815f-1ae38ad70875","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise have","page_number":137,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"db0fabb2-9dd2-4d0b-b05a-0c564bd93e19","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of certain BofA Corp.","page_number":137,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"d47a2a09-0316-4b0d-80b0-6e5845a7fb1e","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":137,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"3c3ff7e6-1efd-43c2-bbd9-28c1ffc49b74","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":137,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"372ceae6-792e-476c-99b1-5319da9b188d","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":137,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"ff6592f1-4121-42e9-904a-ab99c657905f","block_type":"box","text":"Funds, BofA Corp. or their respective affiliates; and any trust, pension, profit-sharing or other benefit plan for such","page_number":137,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"9466cacc-07f4-4fcd-8761-534cf01dfb59","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":137,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"0e08b8d4-dc9b-4485-8a9c-304669711365","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by virtue of the familiarity of these persons","page_number":137,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"b26576f5-20e3-46ab-b63c-96c686c39d92","block_type":"box","text":"with the Fund. Employees, directors, and board members of other funds wishing to purchase shares of a Fund must","page_number":137,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"7874102b-da4d-4cb1-8cf4-5027574cf771","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":137,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"9e184358-56c7-4a50-9df2-9fc17c1e9815","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":137,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"cf72848a-4b6c-424f-a4f0-73ad79d6484b","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":137,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"7a0bb015-1cf1-4c80-b0af-5a6884d85b02","block_type":"box","text":"Shares are offered only (i) for purchase by certain employer-sponsored retirement plans and fee-based programs that","page_number":137,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"d941158a-9aa8-43f5-905a-8fa0cb7c5273","block_type":"box","text":"have been previously approved by certain Funds, and (ii) to certain investors who currently hold Investor A1 Shares","page_number":137,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"1dc3a0ec-8a0b-436e-8d94-93e2cd2c41b0","block_type":"box","text":"for dividend and capital gain reinvestment only. The Investor A1 initial sales charge does not apply to the transactions","page_number":137,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"39bb9e2d-b210-41a1-8de8-27107cc4d052","block_type":"box","text":"described in (i) and (ii). For ease of reference, Investor A, Investor A1 and Investor P (discussed below) Shares are","page_number":137,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"31fc22f6-076a-486d-9d6f-e8f01912072e","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":137,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"b08f5bb6-1d27-4d0b-ad37-eddf99a8a03d","block_type":"box","text":"BlackRock Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":137,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"b58662cc-b038-4107-b876-513fa1a5f44b","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":137,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"6c8eb0db-8568-4af7-821a-65b777bd6289","block_type":"box","text":"particularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":137,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"cb930c12-ba25-4651-9323-3d2525a58220","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":137,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"a07e5898-bdf1-4a19-829c-3115ea3796f6","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":137,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"15af0868-47ff-4b90-9d70-6c06f7faafad","block_type":"box","text":"for an extended period of time also may elect to purchase Investor A Shares, because over time the accumulated","page_number":137,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"d87319b5-aef0-41d8-8d49-9baa0724099e","block_type":"box","text":"ongoing service and distribution fees on CDSC shares may exceed the front-end load shares’ initial sales charge and","page_number":137,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"8aef2b80-b1dd-4036-8016-12a3f6e434af","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":137,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"8bd97af7-12eb-4bf9-a4bd-a440049be6ee","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":137,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"ba5e0a5e-f542-41aa-ad90-491e775cccc4","block_type":"box","text":"BlackRock front-end load and CDSC share holdings, will count toward a right of accumulation that may qualify the","page_number":137,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"68dbc4a7-f7b4-45bc-876c-4b913dc78e10","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":137,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"08699552-be81-411f-9722-eb21dd448a77","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":137,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"d9b5b182-f246-460b-8aee-1db880f489dc","block_type":"box","text":"have lower total returns than the initial sales charge shares. The ongoing front-end load shares’ service fees will","page_number":137,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"ff5eaf03-b057-4c79-827e-3f4af35d30e6","block_type":"box","text":"cause Investor A, Investor A1, Investor P and Service Shares to have a higher expense ratio, pay lower dividends and","page_number":137,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"f47f8c49-a61a-4bef-b120-66b13b16857a","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":137,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"90280d7d-2649-4849-b9ec-9ef214e5694b","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":137,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"0c90c0e0-8450-4373-9b28-003e4d1c00ce","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":137,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"9ace4a92-3f85-4e54-88e8-8eb33647ffdf","block_type":"box","text":"periods indicated.","page_number":137,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"8c572281-a9d4-4834-83e0-6d491f0f4dfe","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":137,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"1447e58e-4bd6-4d00-b93e-acced1459743","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":137,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"9c388e14-c523-4286-b4b6-fb4d74a6a682","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":137,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"6ae7e15d-eb5e-4d05-b7d6-c2bc216fedf1","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":137,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"daa2bd37-576d-418c-bc22-5f28afe1490b","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":137,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"1882d92d-840b-43e1-960f-f9907407cd89","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":137,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"69e5da75-89c8-48c5-a834-f4721c2b4280","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":137,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"b44d33eb-afba-47ee-8e41-f345c5beaa3b","block_type":"box","text":"entered into an agreement with the Distributor to offer such shares and are subject to an initial sales charge. The","page_number":137,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"19759c55-a2aa-45ce-b989-855ed7a7911e","block_type":"box","text":"ongoing front-end load shares’ service fees will cause Investor P Shares to have a higher expense ratio, pay lower","page_number":137,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"51250f45-415e-420c-a3f0-541b3ef71cef","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":137,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"05097a76-74a7-4b29-b491-135a5c7448da","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":137,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"fa405982-b37b-4ea4-9eed-dca05267b0de","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":137,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"5f5e69f8-5aa8-4699-8d58-16db46ddaf98","block_type":"box","text":"II-100","page_number":137,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4e2a3283-75b9-47e9-8b0d-9b264be73455","block_type":"box","text":"NM1026U-5993100-137/236","page_number":137,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bbaa773e-cf88-401f-b5ed-0070b4214d1f","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":138,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"8f11a763-a47f-4c88-9a2b-723187579c7b","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":138,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"1d8d7617-d235-4f02-a24c-9a924db09f33","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":138,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"d3e1ec8f-c112-4275-a872-9bbfd09ab069","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":138,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"c5c82b17-104d-42b5-b47a-cc605e51fdd1","block_type":"box","text":"Reduced Initial Sales Charges","page_number":138,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"6bac65cc-8e94-4a88-9c32-ec7a01348db8","block_type":"box","text":"Certain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":138,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"f180e5f2-2003-4802-a574-ae22ebde3159","block_type":"box","text":"and/or the reduced sales efforts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":138,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"7e71297c-7379-4bb3-bc86-124364e28b96","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":138,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"17e4524b-9e0b-48ff-9228-550986d2bcba","block_type":"box","text":"exchange shares of a Fund from one class of shares to another class of shares of the same Fund provided that the","page_number":138,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"2e941b2f-6682-426f-9d34-3f116dc8b2c1","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":138,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"545acd8b-af29-4101-a1e5-0184629c9ca7","block_type":"box","text":"requirements of the new share class. Certain sales load reductions and waivers may be available to customers of","page_number":138,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"3264e7fa-83ac-49ed-86bc-2a7c011fe5bd","block_type":"box","text":"certain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":138,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"21425478-12de-4c5f-86f6-e3f78d98361b","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":138,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"f5a04779-1169-4fb9-af4c-c9f9c1bab071","block_type":"box","text":"Reinvested Dividends.","page_number":138,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"88344638-f635-4ef0-8291-418e366b8cb5","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":138,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"c01069d5-21fd-4f60-96b5-1ab14c00a53d","block_type":"box","text":"reinvestment of dividends.","page_number":138,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"95f6608d-827a-433f-af28-384a2b7af83a","block_type":"box","text":"Right of Accumulation.","page_number":138,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"d2ce53e5-2754-4a5d-9602-32123efb289c","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":138,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"3803dbf4-9b97-4883-8bca-e6ae4d439696","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":138,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"0ec65a17-0c99-4aa0-9848-2b9b84d53213","block_type":"box","text":"a reduced front-end sales charge: (i) the current value of an investor’s existing Investor A, Investor A1, Investor C,","page_number":138,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"2637bbf7-82ee-4344-802e-848aa0844291","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares in most BlackRock Funds, (ii) the current value of an investor’s","page_number":138,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"4d331700-aa59-468f-b26e-85003dd42162","block_type":"box","text":"existing shares of certain unlisted closed-end management investment companies sponsored and advised by","page_number":138,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"6aa15b20-a8ab-4ae7-95a9-48025d83287a","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":138,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"21dfc6ca-b24f-4d6f-8600-5adac6683abc","block_type":"box","text":"CollegeAdvantage 529 Program by the investor or by or on behalf of the investor’s spouse and children. Financial","page_number":138,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"a4fa3741-4453-4e4c-9d98-6a8c2ee82aed","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":138,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"1b068e98-4f8c-4507-ac45-c01e6b1e918d","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":138,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"e723f1ea-95aa-4992-8d84-6ce678422ee1","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must alert BlackRock to the existence of","page_number":138,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"4209db2d-6960-45f9-8094-352d36d530fc","block_type":"box","text":"any previously purchased shares. Certain funds employ a “passive” management approach and attempt to match the","page_number":138,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"f1b41a21-18a6-4bcb-a114-057f1c2c06b8","block_type":"box","text":"performance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":138,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"bbd318bd-b956-470e-88ba-92bae0fc4761","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Short Obligations Fund generally are not subject to a sales","page_number":138,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"fb51327a-5347-46c3-8191-7069fcc9d370","block_type":"box","text":"charge, an investor’s existing Investor A, Investor A1, Investor C, Investor P, Institutional, Class K and Premier Shares","page_number":138,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"203e5071-65fc-4ec1-958a-a035475eb2a8","block_type":"box","text":"in the Index Funds and BlackRock Short Obligations Fund may be combined with the amount of an investor’s current","page_number":138,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"bcf0075c-2cce-4981-9a0c-2ba3cf6f3950","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":138,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"bfecd973-1e56-4e31-92b8-d6b779072e3d","block_type":"box","text":"Letter of Intent.","page_number":138,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"379f6ef0-d54a-42b2-bfe6-aee5a3157dea","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":138,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"8b5d4ab0-8376-42f7-9a02-32fb7ece7a97","block_type":"box","text":"Intent” stating the investor’s intention to make one or more of the following investments within the next 13 months","page_number":138,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"a27ce5eb-92b4-44d5-a148-8aa25eaa0abc","block_type":"box","text":"which would, if bought all at once, qualify the investor for a reduced sales charge: (i) buy a specified amount of","page_number":138,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"ffb8e3a5-f7cf-4f30-96d9-dbc88438b3b1","block_type":"box","text":"Investor A, Investor C, Investor P, Institutional, Class K and/or Premier Shares, (ii) make an investment in one or","page_number":138,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"39e901f3-4916-4561-8b5c-b98e8f9861e8","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":138,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"73e8ebe6-b5ad-420c-91f5-fee540861335","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":138,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"b057263e-950e-4c60-8ec2-73ad20415308","block_type":"box","text":"initial purchase requirement. The 13-month Letter of Intent period commences on the day that the Letter of Intent is","page_number":138,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"36a20892-4936-4e7a-812a-4fdde8f099a9","block_type":"box","text":"received by the Fund. The market value of current holdings in the BlackRock Funds (including Investor A, Investor C,","page_number":138,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"d897142a-080b-4df7-8f3d-25774e9e55cf","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":138,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"6e979780-4a8e-4300-8b69-01f46c5b9e32","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":138,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"8e22bc65-b429-48ea-82dc-690b8df98c4e","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":138,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"096a27d9-9d45-4e0b-acf8-5e33e1f800ea","block_type":"box","text":"the Fund of (i) any current holdings in the BlackRock Funds, Eligible Unlisted BlackRock Closed-End Funds and/or the","page_number":138,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"8ee81bed-5c5f-415b-83bb-f5d378db0608","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":138,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"702af419-6dd4-4697-ae02-1c19fdbd4389","block_type":"box","text":"subsequent purchases that should be counted towards the Letter of Intent. During the term of the Letter of Intent,","page_number":138,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"4317317f-9c56-4a69-90be-791ee46f6615","block_type":"box","text":"the Fund will hold Investor A Shares and/or Investor P Shares, as applicable, representing up to 5% of the indicated","page_number":138,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"e7a29256-5cef-4c26-bc91-33c31a23c6f3","block_type":"box","text":"amount in an escrow account for payment of a higher sales load if the full amount indicated in the Letter of Intent is","page_number":138,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"f0e3851c-7255-42e1-be25-51b484a3de3e","block_type":"box","text":"not purchased. If the full amount indicated is not purchased within the 13-month period, and the investor does not","page_number":138,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"cb302e74-fb7e-4b60-a8a1-d1b7a208a3ef","block_type":"box","text":"pay the higher sales load within 20 days, the Fund will redeem enough of the Investor A Shares and/or Investor P","page_number":138,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"34579c38-9b5c-41d3-9a0c-2f5cbccd59fd","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":138,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"60a4154a-65ae-48d6-9a04-827c716568a0","block_type":"box","text":"Placement Fees.","page_number":138,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"a26ac2a9-8dd9-4770-8408-42da875fe623","block_type":"box","text":"BlackRock may pay placement fees to dealers on purchases of Investor A and Investor P Shares of all Funds,","page_number":138,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"4cf8b553-e323-4406-a90d-288fcc88045d","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":138,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"1100f2ff-a3ad-4a7b-af45-8bdcc8d253b5","block_type":"box","text":"II-101","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a18afab2-50f2-4b1e-9d3b-ebd5e996f525","block_type":"box","text":"NM1026U-5993100-138/236","page_number":138,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"12a7e1d7-455a-48c2-a68d-4682ed7d0031","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":139,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"d7c48df1-a5c5-404c-9c46-e3cef5210c1a","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"3ed4b95b-cb8e-430e-bb01-b55286c7ca37","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":139,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"94c11373-e75b-4415-b698-74e168ebf852","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"d4ba3f76-e266-4015-a9fa-aada275332e7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"840cc868-e62b-412d-96dc-10ad98a5b47d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"c27ffef8-3cb3-4135-95b9-81845d0001df","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"9d772a66-d73b-4446-a33f-e8a407629c05","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":139,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"781558f4-9383-4aa4-bcfc-1906f98900b1","block_type":"box","text":"Portfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares","page_number":139,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"8df7ba3a-5e72-427a-8cc6-94170b57c056","block_type":"box","text":"purchased prior to July 1, 2020) of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV","page_number":139,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"02edba58-d150-4ed3-8937-182a3a93779d","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":139,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"027593a9-8f35-4ffd-aa95-41dff2282e0c","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"561080d3-c9ca-4c3d-a269-2949be7bd7c9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":139,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"f755196e-0c74-43c9-bbc6-7c6351ba7789","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"2aa56581-f928-47e8-98a2-02e2bab98e66","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"c5db548c-7207-4aca-b64f-f914f466a6ae","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"dd95cc28-ac3e-4b06-8b79-344f41dea781","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"5537ac42-92fc-40e5-9497-b34da2cdb61f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":139,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"d9753eae-0f95-4868-a051-9eb1ddb38b11","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Opportunities Fund of BlackRock Funds","page_number":139,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"91de5e3c-6593-4ded-a9ae-17069a8307d7","block_type":"box","text":"SM","page_number":139,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"080e8254-b26d-4841-9f56-dd6b413a6ba4","block_type":"box","text":",","page_number":139,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"73b3535c-56b9-4990-a748-85cb4ba76913","block_type":"box","text":"BlackRock High Yield Portfolio, BlackRock Core Bond Portfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":139,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"e8a2ff3c-0042-42bb-b68b-24fbf5a58fe8","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":139,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"9d87f39a-c7e4-4fe1-84d1-c7b72dcfac70","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"5bbd5d80-e8e1-41b4-80a6-a92612b364b9","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"b042d83b-64c6-4cb1-9f72-228e48a40b7b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":139,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"93864173-72ee-48fc-a186-c231c41c9a0a","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"68563af7-e971-4b24-b748-f861d7922284","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"7c9c9120-ac06-48e1-a9d6-4e0ce007abb4","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"e4187c43-2e1b-4f9a-805d-84d20c9338c7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"ca491a0b-fca7-4034-b4d3-05023964e914","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mortgage-Backed Securities Fund and BlackRock Impact","page_number":139,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"fec24ea9-7253-4d3c-9bf1-a2e43cf85db8","block_type":"box","text":"Mortgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"216a7c90-ebfb-4d0e-afe8-073d85a22a86","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"88240c27-53d7-4734-84d7-08d0406f3670","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"78b71cf9-edee-4606-98bf-bc7f6959cec1","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"155a62b9-6e68-4bd6-9f1e-7ef75e935c83","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"8d7a77e0-00b4-4122-9d5d-795187bf2a1d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"5e4fc269-af21-455b-b18e-6836ca373dc9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":139,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"a0a359e5-7d17-40be-aabf-cc4ba458ff43","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":139,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"825e480d-a878-47fb-9af3-e0d17ae43f2a","block_type":"box","text":"may be up to the following amounts:","page_number":139,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"1dedb593-8d5e-4526-8fc0-892a51f6f7cb","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"43540f27-7249-4edb-a962-c8031809e160","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"fddd22c6-47dc-4a2f-a703-4e0d5a7f23db","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"0fa25ffe-6a07-4dd5-b38e-3d709e5f5d31","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"cd68e7f4-423c-4c71-9867-0ac3500a5cad","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"ffc51193-d14d-48f2-901b-a70a3b6af304","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":139,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"95b0a619-fc8b-4112-8ada-9abbfae46f8d","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Portfolio of BlackRock Funds V, the","page_number":139,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"11f5a6ba-ce65-4d32-a78a-e914674f1c91","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"8c973cbf-09d8-42da-afae-e64df604977b","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"91653ac3-c77b-4f98-9eef-af18799449d0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":139,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"9011b555-dbde-4170-9777-ed1e6b7334ef","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"e6347423-1c4b-4417-9b2c-4a86c94d2b8f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":139,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"ee6583ea-8e3d-4b93-ba53-ef269638ed05","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"7a507e12-d283-4c9d-9a71-211b49cbcc1d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":139,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"97d1d6a3-db72-4af3-b28a-3a01f1a8be85","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income","page_number":139,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"6153945b-0463-4d9f-92b3-1f1cc7cff1fb","block_type":"box","text":"Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V, the","page_number":139,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"557dd8ec-9c52-46ef-9896-ecc086540423","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"ec1dfe56-5b77-4670-baf3-ad1880931e62","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"644b3e69-74b4-4112-bdf3-bacc10ebd43b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":139,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"566cbb4b-2e7f-486d-bc5d-9896efc39402","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"ed916946-b9ee-4b2b-97f2-e8dd8fc4279a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"e3db12f6-db51-4be8-86f2-f81cad21ec12","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"a0b63339-9975-4264-9fab-d92c7806e0e2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"db0febf3-b9c1-4215-83de-f298ec026b1a","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":139,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"4d5958b2-95d4-41c1-b593-bb36ed0c8fce","block_type":"box","text":"Inc. (for shares purchased prior to March 18, 2019), the placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"be9ca12d-79d4-4e2f-a30b-43de514410f0","block_type":"box","text":"$250,000 and above . . . .","page_number":139,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"55e6aadb-c567-49a3-b921-af8a8a3f1141","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"77967aec-28a2-4c97-8420-37b670402b2b","block_type":"box","text":"II-102","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4725410f-2d49-4765-9b62-db3c90a0fda6","block_type":"box","text":"NM1026U-5993100-139/236","page_number":139,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e7855416-0b6c-4c9f-8912-7d41a60efeae","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":140,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"6a9a246f-4035-494b-bbd6-52a4e67edb0b","block_type":"box","text":"Inc. (for shares purchased on or after March 18, 2019 and prior to July 1, 2020), the placement fees may be up to","page_number":140,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"ac5e5238-8299-404f-a217-909370691408","block_type":"box","text":"the following amounts:","page_number":140,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"4712d46a-f97b-41f2-98fb-1f945e59f4fe","block_type":"box","text":"$100,000 and above . . . .","page_number":140,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"b5f75c5b-360e-4e28-99c5-275b6c51fbfb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"77331852-f7f8-479a-a6e3-bda23609775f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":140,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"085367ea-6c94-499b-9aaa-e4a9249c3a3e","block_type":"box","text":"Inc. (for shares purchased on or after July 1, 2020), the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"44f3b4bc-c9ae-44af-972b-265c10389cbc","block_type":"box","text":"$250,000 and above . . . .","page_number":140,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"a49f0181-fc18-4fcf-8312-89ee28cd78f9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"9278792c-c575-42e4-8faa-30b694d0d650","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal","page_number":140,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"6e701231-f77f-40bc-87d8-9f33e0d4782c","block_type":"box","text":"Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":140,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"0eee064d-2f33-4396-bbcb-dd3083c8d738","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":140,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"5ddda0d9-84ed-4783-8061-bc4a02532be4","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":140,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"ad935347-8fa4-4d61-8cc5-b5dc31a6eb70","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"a3656c9b-3bd9-4737-844d-169fcd92cb30","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"ff905ef3-254e-44bf-85d5-90b61d0b1999","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":140,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"9f108c9a-ab5a-4de9-ae0e-fe6a239adae0","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"d055d84f-db5b-4234-9882-6282d25a8612","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"f0b9f158-6961-4b65-9ebf-b31babdae26b","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"4c0e0e4a-2436-4234-83f4-642410671697","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"834e6016-c450-49f9-b9d8-cfa8d6a8bc8e","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Portfolio (for shares purchased on or after","page_number":140,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"b97cdcfc-8a8f-4254-913d-e0580130ae03","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares purchased on or after July 1, 2020) of","page_number":140,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"f2e8aae4-6d11-4ccf-83df-cf912cfd60c8","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":140,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"87f13cfa-e314-4089-a3bb-248896a8d78e","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":140,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"1c0a5d8a-c097-45ef-813a-795bc1f1c782","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"75e8a4d7-d52d-4a98-adcc-3c1decc0136e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":140,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"039c87f8-d6d9-4560-93d5-50f0aac98984","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"1cc54cdb-c54d-4c7b-a63e-9ad15c8380dd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"a74ae29f-a282-479c-8501-57e8aed57432","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"16d1f4b0-613c-4059-bbca-f645d68928e8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"f76447f4-aa5a-4a5e-83d3-14cf0aec79df","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":140,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"910f2dc8-e40a-4d2a-a710-9470781b936d","block_type":"box","text":"®","page_number":140,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"cf41c54a-fbc0-424d-b2be-ff3cced5ba5d","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":140,"box":{"x":513,"y":463,"width":264,"height":10}},{"id":"fa5b2763-9583-44d1-bb8b-ab7c730d4b6d","block_type":"box","text":"®","page_number":140,"box":{"x":778,"y":463,"width":6,"height":5}},{"id":"6c6516c9-13b8-4b78-893b-39bf3f4affc6","block_type":"box","text":"Index 2035","page_number":140,"box":{"x":791,"y":463,"width":79,"height":9}},{"id":"4cc04c70-ed21-48fa-ab7d-5fa9e5cacb6e","block_type":"box","text":"Fund, BlackRock LifePath","page_number":140,"box":{"x":70,"y":478,"width":177,"height":11}},{"id":"deee04cf-5253-4640-8dbb-700bfbe531f9","block_type":"box","text":"®","page_number":140,"box":{"x":249,"y":478,"width":6,"height":5}},{"id":"add66795-db55-4847-8c3f-bd0a55e492b7","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":140,"box":{"x":261,"y":478,"width":265,"height":11}},{"id":"3e8ffc37-d083-405f-a0f0-b385002f8303","block_type":"box","text":"®","page_number":140,"box":{"x":527,"y":478,"width":6,"height":5}},{"id":"493053a0-7b96-41ce-81b9-966cc4ab485a","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":140,"box":{"x":539,"y":478,"width":265,"height":11}},{"id":"5ca15d27-4bfd-40fd-a09f-2e9911a52112","block_type":"box","text":"®","page_number":140,"box":{"x":805,"y":478,"width":6,"height":5}},{"id":"4545c0a0-519e-41a6-a7c3-0f0279358711","block_type":"box","text":"Index 2050","page_number":140,"box":{"x":817,"y":478,"width":80,"height":9}},{"id":"afd5800f-a657-48da-a15f-a285924dd64f","block_type":"box","text":"Fund, BlackRock LifePath","page_number":140,"box":{"x":70,"y":493,"width":177,"height":11}},{"id":"e3159219-ed6e-4b41-8137-d347e0da7990","block_type":"box","text":"®","page_number":140,"box":{"x":248,"y":494,"width":6,"height":4}},{"id":"1688a17d-59da-42fa-ab18-1eb9911d7726","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":140,"box":{"x":261,"y":493,"width":263,"height":11}},{"id":"94892f08-0b6d-4469-a132-06177ec95c3e","block_type":"box","text":"®","page_number":140,"box":{"x":526,"y":494,"width":6,"height":4}},{"id":"57352400-b453-4b3e-96f9-b4896c35535e","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":140,"box":{"x":538,"y":493,"width":264,"height":11}},{"id":"562cafb0-5098-4b75-9b00-bd3ab19b135a","block_type":"box","text":"®","page_number":140,"box":{"x":803,"y":494,"width":6,"height":4}},{"id":"cb907f31-fe19-4db5-8868-18aeccaeac1d","block_type":"box","text":"Index 2065","page_number":140,"box":{"x":815,"y":493,"width":80,"height":9}},{"id":"a08e81d6-d170-4836-b002-36ef4fcd89b6","block_type":"box","text":"Fund, BlackRock LifePath","page_number":140,"box":{"x":70,"y":508,"width":177,"height":11}},{"id":"4c7640a9-9812-40f4-b82f-fcb1b6d6619e","block_type":"box","text":"®","page_number":140,"box":{"x":248,"y":509,"width":6,"height":4}},{"id":"7ff893f0-707b-4ffc-9390-53dbf4f170b7","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":140,"box":{"x":261,"y":508,"width":290,"height":9}},{"id":"210a53b3-8041-4083-b8a1-817a56bd0663","block_type":"box","text":"®","page_number":140,"box":{"x":552,"y":509,"width":6,"height":4}},{"id":"63d36818-751a-424a-aa11-54c067f2e952","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":140,"box":{"x":564,"y":508,"width":324,"height":11}},{"id":"127ca45a-3a21-4236-b9f6-7303cd7fc3e6","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":140,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"7e96969a-9100-45d5-8b9f-e38d3d662076","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":140,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"b5d25fa6-2ed5-456d-a435-da0e60203037","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":140,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"9b010f2b-e9c8-4fc4-aed3-572eb16edd26","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":140,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"d835ffec-2fb3-447e-8344-492c9327d661","block_type":"box","text":"SM","page_number":140,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"441c8448-b8bb-4dae-96f4-9da8357b6ed5","block_type":"box","text":", the placement","page_number":140,"box":{"x":773,"y":575,"width":110,"height":11}},{"id":"8a474a08-9447-417a-b767-af9e456babc4","block_type":"box","text":"fees may be up to the following amounts:","page_number":140,"box":{"x":68,"y":590,"width":294,"height":11}},{"id":"5662577b-267a-4dab-b159-c82a9e329fe0","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":140,"box":{"x":167,"y":617,"width":206,"height":11}},{"id":"6056679a-5e77-4d4f-8f39-e92a7b6e99c4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":380,"y":618,"width":443,"height":9}},{"id":"b20c9d83-52e0-45e5-9782-838204d8f5f3","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":140,"box":{"x":101,"y":642,"width":787,"height":11}},{"id":"011c81aa-9acc-429a-8b88-fb445147e951","block_type":"box","text":"Russell 2000 Small-Cap Index Fund of BlackRock Index Funds, Inc. and iShares S&P 500 Index Fund and iShares","page_number":140,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"64252ba9-0a6b-429c-8654-7306af0b7f52","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":140,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"fda08656-f69a-4132-924f-2401445d101f","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":140,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"306cc1c3-6583-4bcf-b754-7c22c4c05830","block_type":"box","text":"example, a sale of $4 million worth of Investor A Shares of BlackRock Impact Mortgage Fund of BlackRock Funds V","page_number":140,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"0b639581-22b3-4d79-ab38-c0cc94c4466c","block_type":"box","text":"will result in a placement fee of up to 0.50% on the first $3 million and a placement fee of 0.25% on the final","page_number":140,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"d6a8f9d3-3426-456b-ba2c-2438246e96c0","block_type":"box","text":"$1 million).","page_number":140,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"293046e6-62e2-4c3f-a874-d0d7036832ba","block_type":"box","text":"Other.","page_number":140,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"85e23b1c-a97b-4b50-85fa-821408d3c8d5","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":140,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"d7ec021d-886a-4dc9-b7a7-a20bf7a2ee9f","block_type":"box","text":"(a) certain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":140,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"6c2f84fa-1f68-46a2-a1dd-9e0f3813451d","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through certain employer","page_number":140,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"708ab437-d90d-444c-b1f0-7a3944935b56","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":140,"box":{"x":69,"y":808,"width":825,"height":11}},{"id":"bf937194-a09e-4918-ad20-2393e89c29fe","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":140,"box":{"x":68,"y":823,"width":773,"height":11}},{"id":"a1ae1287-62ba-43c3-883a-266c737a7f9c","block_type":"box","text":"proceeds are contributed to a BlackRock IRA through an account directly with the Fund; or purchases by IRA programs","page_number":140,"box":{"x":70,"y":839,"width":838,"height":11}},{"id":"0531ec77-7949-439c-a70e-098b659394d6","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":140,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"fb298656-5d8a-4c3b-8754-13a9e6f1ba8a","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":140,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"0c8374a4-c9a7-4a59-b849-f52148deaef4","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust departments exercising","page_number":140,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"100a9267-5568-45f5-8cbf-1e5061055a62","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons participating in a","page_number":140,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"40459e76-7ecb-48d9-9ecd-7c715a0d3548","block_type":"box","text":"II-103","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5fc34b91-5f43-4324-9e31-796fbaab7d4b","block_type":"box","text":"NM1026U-5993100-140/236","page_number":140,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2470b687-f3dd-4382-94c8-370e86f56c4e","block_type":"box","text":"fee-based program (such as a wrap account) under which they pay advisory fees to a broker-dealer or other financial","page_number":141,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"b9a2e7a3-2b0b-46de-86e8-cd60adf1eb34","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":141,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"8c76cb49-0d56-432d-9324-442862751dff","block_type":"box","text":"approved by the Distributor to offer Fund shares to self-directed investment brokerage accounts that may or may not","page_number":141,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"f0c70ccc-d5dd-4f47-87e9-feb0b9d529df","block_type":"box","text":"charge a transaction fee; (g) state sponsored 529 college savings plans and rollovers of such 529 plans into Roth","page_number":141,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"2cf75f58-9598-48e4-b120-dda9fa5cfd2a","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":141,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"4d0ed946-6bde-4504-b732-55767f20746b","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":141,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"d8a72573-12af-4a60-beef-7b30d20d2607","block_type":"box","text":"involuntarily liquidated from a Fund, who within 60 days of liquidation buy new shares of another BlackRock Fund (but","page_number":141,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"b6f836f2-670a-4786-981a-f2b158678fb2","block_type":"box","text":"only up to the amount that was liquidated). The following persons associated with the Funds, the Fund’s Manager,","page_number":141,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"f55b92ac-d0fc-4eb3-a6da-a76bb54bdbb6","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":141,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"7abea6cf-8dfa-45b4-b112-0cf31bbe871b","block_type":"box","text":"or Investor P Shares of each of the Funds without paying a sales charge to the extent permitted by these firms","page_number":141,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"91f4a77b-884c-4f0c-8778-2dbe692e467a","block_type":"box","text":"including: (a) officers, directors and partners; (b) employees and retirees; (c) employees or registered representatives","page_number":141,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"32d03459-ef45-4484-a12e-201cb365e5b7","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":141,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"f95198c0-c319-470b-8046-b7619fd7c35d","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":141,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"3a619945-e691-4330-8e5c-3833370e3704","block_type":"box","text":"spouse or domestic partner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":141,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"17703c76-acaf-4ab6-bc1e-194366cc1c49","block_type":"box","text":"plan for any of the persons set forth in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":141,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"21e05370-4518-459b-b1e7-b764eb9a6e38","block_type":"box","text":"sales charge should purchase Investor A or Investor P Shares. In addition, a sales charge waiver may be available for","page_number":141,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"5fd603b5-f4c2-4c9f-aceb-fd087df333a1","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":141,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"47fb2481-6cca-424e-8fbf-5f5976c8ec8b","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":141,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"bf9370fe-4e99-4182-a5ad-1cc5c06a452c","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":141,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"2bff31d3-d246-49b7-9e59-b851b3e11e4d","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":141,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"037273cb-0142-462c-b50a-63cc5db2fd1e","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":141,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"804308c1-be80-4d23-847c-fbfbda8051ae","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset","page_number":141,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"a3df85f2-1713-4d94-b103-96c264b3b02e","block_type":"box","text":"Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":141,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"a202f7a1-7f4b-494f-a7e6-d9495538d088","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":141,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"0605a3a4-6eba-4eab-9f58-2404282cb9de","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni","page_number":141,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"3a370202-d2c9-426b-b512-96beaae833e6","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock","page_number":141,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"c020ded7-4b88-41f2-af25-fbfa04874ed9","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series","page_number":141,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"ff375ac3-2773-4e6d-bf7e-bdbdc087f203","block_type":"box","text":"Trust, BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":141,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"55d0b951-acba-495b-864f-434f7e4a5048","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":141,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"16388403-2137-4ea5-9710-3901141e43d7","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock","page_number":141,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"b449a536-0425-48a8-9843-6a061b764c4c","block_type":"box","text":"Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of","page_number":141,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"227d5fc7-d283-47b5-bbff-4dfc8548944a","block_type":"box","text":"BlackRock Funds V) or more in Investor A or Investor P Shares, as applicable, you may not pay an initial sales charge.","page_number":141,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"ebc4df57-ec79-4769-953b-dab789a60bcc","block_type":"box","text":"However, if you redeem your Investor A or Investor P Shares, as applicable, within 18 months after purchase (a","page_number":141,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"9a5e5b38-475e-422c-be4b-3c25ba09417c","block_type":"box","text":"shorter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":141,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"912a9e31-f326-49d9-8ef7-f0d5245af1c8","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to certain redemptions of Investor A Shares of the Index","page_number":141,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"2b3b2976-f85f-4e14-b31e-6b983b4a1bce","block_type":"box","text":"Funds and BlackRock Short Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":141,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"213fc088-3790-4ec3-b9b4-7526af8ba908","block_type":"box","text":"portfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":141,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"c33f521f-7bdc-4284-8f84-ec7f32e228b5","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Portfolio”) as part of an investment of $1,000,000 (lesser amounts may","page_number":141,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"9bde9f59-7db6-4ea8-b993-723461249e54","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Portfolio) or more. The Investor A Shares deferred sales","page_number":141,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"84880629-4f76-4664-a8c2-97dc992b4532","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":141,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"e8a2012a-fbc2-42a9-bfb7-d8c292f0a3b5","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply depending","page_number":141,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"3f62bf87-12b0-4d01-9397-149e844dc423","block_type":"box","text":"on the Investor A Load-Waived BlackRock Portfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":141,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"a973c89d-d93a-4d7b-803a-4af92d03c89c","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shorter holding","page_number":141,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"eeafd904-d9a6-43e1-8730-8ad2320c51fe","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":141,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"6f4ddadb-2cfd-4b80-abd2-dd9c988f1025","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Short Obligations Fund).","page_number":141,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"af192e44-fc42-496b-ab9c-7ab918accbca","block_type":"box","text":"The deferred sales charge on Investor A or Investor P Shares, as applicable, is not charged in connection with:","page_number":141,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"501a410a-3dff-4d19-b174-cbb83947bc6f","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored retirement plans","page_number":141,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"5b742660-a087-439c-9768-0a622f914336","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":141,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"4d68143d-5ead-4c41-b17d-57fbbd462003","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":141,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"63796a64-292d-4497-b50f-1e9a7b5c34d4","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":141,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"6da741e2-ef32-4375-a21d-d700fa55802f","block_type":"box","text":"certain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":141,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"4c6c3588-be36-4e9e-b38a-13c478238c69","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the","page_number":141,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"56c00442-8f08-4235-9f71-ad2ba4e338fa","block_type":"box","text":"distribution of account assets to a beneficiary of the decedent) or (ii) in connection with a shareholder’s disability (as","page_number":141,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"5b0e29f9-b9e0-4b13-8be2-13829cb51650","block_type":"box","text":"defined in the Code) subsequent to the purchase of Investor A or Investor P Shares; (f) involuntary redemptions of","page_number":141,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"87fbeecc-2ab6-4106-9835-730847fa41c7","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":141,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"4ce41b67-3a0b-48aa-8d52-d64470ed7da9","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":141,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"e4049905-98db-430a-99a5-0af1d36c65f0","block_type":"box","text":"II-104","page_number":141,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"64291e83-ae0e-4b34-a95a-fc1f1b8cc67e","block_type":"box","text":"NM1026U-5993100-141/236","page_number":141,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c871208b-52f0-45b3-9d7d-3109f294997d","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":142,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"ca7fc631-cd8b-4fac-9b76-503981f365de","block_type":"box","text":"the absolute discretion of a Fund.","page_number":142,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"f623bf06-1034-40a1-bd51-cc021e3ad1d6","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":142,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"6bd9b751-330f-4790-9e8d-4a40d49746c0","block_type":"box","text":"fee, the Fund may, at its own discretion, waive the CDSC related to purchases of $1,000,000 ($250,000 for","page_number":142,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"af8e21ed-dea1-4918-ab1c-b7d11413c98e","block_type":"box","text":"BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income Portfolio and BlackRock Managed Income","page_number":142,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"186566f5-28b0-4e7c-9450-84da4ab3b63d","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":142,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"92c2434a-a168-4bfd-b125-0698305e5d7f","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":142,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"4940384b-c25b-44c1-a86f-b3d8dc251804","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":142,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"78a1c408-f917-4d63-bbe7-9ec9ccd93a71","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":142,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"f2ed8fa5-bba5-4b96-852b-c9c92181494a","block_type":"box","text":"Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":142,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"5416515b-6688-4a7a-807c-b82ba5b105ca","block_type":"box","text":"Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":142,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"3521ff7d-fec8-4570-bfb1-3eddf843612d","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":142,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"fc3bc935-6444-4241-8d78-4f7bf6a2e4ef","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock","page_number":142,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"9d9fb1a9-e110-45c6-8c8e-10f31001fe15","block_type":"box","text":"Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or","page_number":142,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"f7fec568-40e6-432b-a10e-44b4db822908","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":142,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"ac712f0c-e1b5-429c-ad81-2886c65b34c8","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":142,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"805f9561-5512-4d15-b11f-fc8198f116fd","block_type":"box","text":"Investor A and Investor P Shares are also available at NAV to investors that, for regulatory reasons, are required","page_number":142,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"6f323a73-764a-49b4-9e2d-09d414024fa7","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":142,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"7635fc89-2084-4948-a8e6-025bff1d7174","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":142,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"80e758ca-e810-4f10-99e5-c70fd31ae67f","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":142,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"629291c9-0d6d-4863-913f-e1183ba000ee","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":142,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"72a8c398-28d4-47f0-a95b-93009a449e35","block_type":"box","text":"connection with the acquisition of the assets of, or merger or consolidation with, a personal holding company or a","page_number":142,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"ccfd0d65-f082-42cf-87eb-7ff814f473d5","block_type":"box","text":"public or private investment company.","page_number":142,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"d53c2331-c96e-4956-99a7-891ef46aa232","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":142,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"acbfd631-9f6f-4800-b11f-0e5501632eec","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":142,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"6e3989e8-90b6-4b00-b1b8-c4f2988f4657","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers, selected securities dealers","page_number":142,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"7b929b17-b917-4fc5-b52f-2618a16413d4","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":142,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"b009ffb7-4166-4d2a-a338-64bb6f6ce774","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":142,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"edae74cd-d96b-4a77-b9c3-60dfafaf11f8","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncertain","page_number":142,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"03ccc325-ed1c-4e0c-bd58-47ac7d7eea1e","block_type":"box","text":"as to the length of time they intend to hold their assets in a Fund. If you select Investor C Shares, you do not pay an","page_number":142,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"18c23bbf-2594-4d11-b269-edf60e8e2b37","block_type":"box","text":"initial sales charge at the time of purchase. A Fund will not accept a purchase order of $500,000 or more for","page_number":142,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"cbb8f565-2b4b-4ca8-b4d5-9b89975cdf75","block_type":"box","text":"Investor C Shares (may be lower on funds that have set a lower breakpoint for NAV). Your financial intermediary may","page_number":142,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"0d827f1a-0111-4177-87c7-b10dc24676cc","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":142,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"b4a7d1e5-b800-43ca-8476-b2c114fed046","block_type":"box","text":"Investor C Shares are not available in accounts opened or held directly with a Fund that do not have a financial","page_number":142,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"81029cbe-3c3d-45af-b796-fbeb875a115f","block_type":"box","text":"intermediary associated with the account.","page_number":142,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"9247bbc6-06ed-42af-8b5d-3787359a1c6a","block_type":"box","text":"If you select Investor C Shares, you do not pay an initial sales charge at the time of purchase.","page_number":142,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"7c02393d-118d-4a45-9d71-c33ba8d9c2db","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for the","page_number":142,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"52194d36-2b1e-415a-82c8-22e44333b6b8","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":142,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"4dffa191-4163-40ff-9162-1aec40ca730b","block_type":"box","text":"these fees potentially may be offset to the extent any return is realized on the additional funds initially invested in","page_number":142,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"265e74a2-9e37-4081-abe0-4f5f0c8770d2","block_type":"box","text":"CDSC shares.","page_number":142,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"3ddbf712-44b3-476d-a6a1-128061489efa","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":142,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"ea3a182b-ee79-408d-9056-8db706c97bfb","block_type":"box","text":"of purchase from its own funds. Proceeds from the CDSC and the distribution fee are paid to the Distributor and are","page_number":142,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"f376c5cb-04ec-4248-9dee-1841959ae4ac","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":142,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"e30b4bdf-106c-4fce-9b5b-36d39d2553bf","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":142,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"8b7f2459-13fc-4c26-a6a7-d7349673e404","block_type":"box","text":"of the CDSC and the ongoing distribution fee facilitates the ability of each Fund to sell the CDSC shares without a","page_number":142,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"a7d4eb04-44ee-4f0d-98c8-8fc4abddb78a","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":142,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"09c554f6-8767-4384-95fb-e22317fe82e7","block_type":"box","text":"Imposition of the CDSC and the distribution fee on CDSC shares is limited by FINRA (as defined below) asset-based","page_number":142,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"0d94bc99-b753-4906-b19e-5062c4392323","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":142,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"e296d6a3-1a7d-459e-a114-9c8cd880fc25","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":142,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"f7f888d0-1d8f-4ff4-9875-637753221137","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":142,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"d14a977d-ac6b-4ca5-9d3c-e1de8aa154b9","block_type":"box","text":"connection with sales of Investor C Shares to certain employer-sponsored retirement plans sponsored by the Fund,","page_number":142,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"49bc9698-1623-4acf-b475-220e188c30bb","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":142,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"91cb668b-b532-46aa-9f42-f78cc818ae9a","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":142,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"5f2109fc-0a9b-4e31-b8e1-62ec1d2c1c47","block_type":"box","text":"II-105","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"577a3eb9-078a-4d74-8394-be37293e199b","block_type":"box","text":"NM1026U-5993100-142/236","page_number":142,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bf1b8c3d-4718-4588-9617-0f117bbd34d5","block_type":"box","text":"with sales of Investor A, Investor A1 and Investor P Shares. These may depend upon the policies, procedures and","page_number":143,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"49164b05-3581-4134-9c14-0673342e43c2","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":143,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"8c3cf22f-41f4-4601-946f-71f17a18ab9a","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":143,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"a2a476c7-0307-43fe-b55b-61fef5e9eb6f","block_type":"box","text":"Investor C Shares held for approximately eight years will be converted into Investor A Shares, as set forth in each","page_number":143,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"a6e737f5-8ee0-4cb4-a421-1cbb10d2ac82","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":143,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"be8a635e-75f6-449f-ab27-eae9158bed95","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted to","page_number":143,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"61b294c7-b143-4557-b9fa-6f75cea53d69","block_type":"box","text":"Investor A Shares.","page_number":143,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"905d7715-8e43-4f1c-83c4-db61cc9eb07e","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":143,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"027e498f-7fa9-46e0-8f4d-f8450ad5ef45","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":143,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"c1b38a0e-ede7-4f81-8f1d-8e20b8dd50fe","block_type":"box","text":"of each Fund will convert automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":143,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"b0a0fee9-54ef-4d94-be32-331db98154c1","block_type":"box","text":"Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":143,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"5641598f-7359-4bd2-9e45-bd171c7fd6de","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":143,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"50460c92-2f31-49e9-af41-b5c00548282e","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":143,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"61dec4a5-f678-408d-bd57-a4ab7ee52840","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":143,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"ace1ea6e-c70c-40c6-a606-1d8c4d1a8901","block_type":"box","text":"certain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":143,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"2b018a42-37ca-48ce-bd78-53326cf07fee","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":143,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"9a4ba386-d32f-40cd-b8c0-b526b42e53d9","block_type":"box","text":"Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after","page_number":143,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"c18c19a5-94a0-4298-b16c-af74920d8ca3","block_type":"box","text":"the Effective Date. If, as of November 23, 2028 (eight years after the Effective Date), a financial intermediary has","page_number":143,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"22b5d5e8-e554-4fc1-9d17-baab071fc892","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":143,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"61c71588-ebfe-42f8-8e96-9a6c7bdd7534","block_type":"box","text":"holding Investor C Shares through such financial intermediary will no longer be eligible to hold Investor C Shares and","page_number":143,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"c18d9f2d-6369-4857-a221-7bfeca93ea03","block_type":"box","text":"any such shares will convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":143,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"7554513f-4ea2-4513-9a43-867b0d4ddeb0","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":143,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"487d518a-a97c-4771-920c-496c1648ce72","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted into Investor A","page_number":143,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"22bb190a-5df6-4d9e-aa3b-44cb5c210cde","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":143,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"c4b0d5b1-8181-42b3-9d98-b113e2a34be5","block_type":"box","text":"“Investor C Conversions”).","page_number":143,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"7d38f60c-cf2b-4527-b710-fcdac05a271f","block_type":"box","text":"The Investor C Conversions will occur at least once each month (on the “Investor C Conversion Date”) on the","page_number":143,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"763ebe9c-d698-4080-bf71-73d659812081","block_type":"box","text":"basis of the relative NAV of the shares of the two applicable classes on the Investor C Conversion Date, without the","page_number":143,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"aa33e3d8-7e15-4982-af6d-4181eba77f04","block_type":"box","text":"imposition of any sales load, fee or other charge. The Investor C Conversions will not be deemed a purchase or sale","page_number":143,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"68cb6c78-dff0-441b-94fe-57fd7ac37295","block_type":"box","text":"of the shares for U.S. federal income tax purposes. Shares acquired through reinvestment of dividends on Investor C","page_number":143,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"847c3141-3506-4a11-bc70-8d4a00a168ec","block_type":"box","text":"Shares will also convert automatically to Investor A Shares, as set forth in each Fund’s Prospectus. The Investor C","page_number":143,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"510f112a-87a6-4f36-b916-021fc4679239","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":143,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"a6fda0d5-da5a-44b8-9ae1-04bcc8e5d568","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":143,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"83770cec-b323-4013-b69f-1fb63a5d02d2","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":143,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"fd6e8207-0e38-4ffe-a515-0ad96f24e5af","block_type":"box","text":"Investor C Shares that are redeemed within one year of purchase may be subject to a 1.00% CDSC charged as a","page_number":143,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"9022cc0a-2026-4012-98f2-64b978ad1016","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":143,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"490ae7a3-15c0-4294-86f2-8fa492e5ce9c","block_type":"box","text":"a redemption, the calculation will be determined in the manner that results in the lowest possible rate being charged.","page_number":143,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"3f03c3c2-7488-4fc7-8776-bcd5fc93c5ee","block_type":"box","text":"The charge will be assessed on an amount equal to the lesser of the proceeds of redemption or the cost of the","page_number":143,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"7f991fe8-0bba-4b15-9432-320a77069fc5","block_type":"box","text":"shares being redeemed. Accordingly, no CDSC will be imposed on increases in NAV above the initial purchase price of","page_number":143,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"d150f75e-2a80-46b7-a9e8-4d02e16dfd25","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":143,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"a894677d-2493-445d-9fd4-fcdc21871615","block_type":"box","text":"dividends. It will be assumed that the redemption is first of shares held for over one year or shares acquired","page_number":143,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"4dc1cf7a-f63d-4172-8e68-0f8653f79254","block_type":"box","text":"pursuant to reinvestment of dividends and then of shares held longest during the one-year period. A transfer of","page_number":143,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"2c8888ec-5a45-4d66-b96c-0c069a51e328","block_type":"box","text":"shares from a shareholder’s account to another account will be assumed to be made in the same order as a","page_number":143,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"370b6b5e-eb89-42f5-91f2-790602b9f67b","block_type":"box","text":"redemption.","page_number":143,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"0a0a7fc5-e5c1-461e-a2ae-542423610af7","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":143,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"6ccc4e5c-9c9b-461d-9808-cf594815894e","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":143,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"fd155f94-a73b-4a22-bf0f-6e262ea2c279","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":143,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"5fde80d8-77e0-48c1-af05-9721d6401fb6","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":143,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"636537cb-8898-4762-a42f-f0ec2416bcf7","block_type":"box","text":"purchased through certain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":143,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"075d003a-e9a1-403d-b22c-83b934da050c","block_type":"box","text":"certain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":143,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"68941c35-1063-40bf-ae4e-a8227bdb2b82","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":143,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"c2eec90d-ef2f-499e-81b6-93f8cf35762d","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain","page_number":143,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"15ae95c5-06d2-4b50-a75a-5aa9a27d823a","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":143,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"47d3505a-677c-4b8e-86a4-855e4eeb9a80","block_type":"box","text":"shareholder’s death as long as the waiver request is made within one year of death or, if later, reasonably promptly","page_number":143,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"f56326a9-2fdf-4d58-8eab-0c38074f41f4","block_type":"box","text":"II-106","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1dbc01b3-cde4-466d-be52-434348d3ba39","block_type":"box","text":"NM1026U-5993100-143/236","page_number":143,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"221a6776-ab72-4030-bb05-156a65ae9168","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":144,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"fa3f6e03-ee62-451e-a111-1b612b7f2c6f","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":144,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"262e1f16-5b04-4f8f-a2a8-98db45805e55","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":144,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"7034aeb2-2182-4cd9-805e-a7e47f6a12b0","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":144,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"b609d489-9652-485f-be1a-6e4971b98e1e","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":144,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"366e08a9-3647-44bf-90e8-4c6d002e4e6b","block_type":"box","text":"limitations set forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":144,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"7f2f60b3-0413-458e-82da-84de260d2d57","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":144,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"8e5bba95-7e20-4799-b972-f6f83bdd8175","block_type":"box","text":"demonstrate hardship, in the absolute discretion of the Fund. In addition, no CDSC is charged on Investor C Shares","page_number":144,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"e378edac-755b-4252-b452-0f3c7f6d9152","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":144,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"28722bab-7029-460c-a084-ec751b5dc2de","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain financial","page_number":144,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"17504cd3-b31d-4a01-814f-235929f97ecb","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":144,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"8d296426-e488-4bda-ad66-aa2613ec8b12","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":144,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"86bc7893-f085-407a-bfc3-11c910a1663e","block_type":"box","text":"Class R Shares","page_number":144,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"a4107629-dec2-4a7c-833d-194752831f25","block_type":"box","text":"Certain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":144,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"965d224c-6718-4fa6-b932-3ed68f32b91a","block_type":"box","text":"available only to certain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":144,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"5eacd522-0ff2-40e6-8300-f3901155a08b","block_type":"box","text":"charge or a CDSC but are subject to an ongoing distribution fee of 0.25% per year and an ongoing service fee of","page_number":144,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"aa7fc8d9-06d5-461e-82ae-9af4a60376bd","block_type":"box","text":"0.25% per year. Distribution fees are used to support the Fund’s marketing and distribution efforts, such as","page_number":144,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"585483f5-4392-48aa-a15c-2fd84e77a58f","block_type":"box","text":"compensating financial advisers and other financial intermediaries, advertising and promotion. Service fees are used","page_number":144,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"1d42d333-e520-4347-860a-7287ee6bf85e","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":144,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"d25f18cb-c260-43d0-85fb-8e6ed2b07c90","block_type":"box","text":"If Class R Shares are held over time, these fees may exceed the maximum sales charge that an investor would","page_number":144,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"a34400fd-031a-4e5f-b8b2-1224f316b0ed","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":144,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"f0fb31d3-1f0f-444c-a81b-b08d20bf7a11","block_type":"box","text":"Class K Shares","page_number":144,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"8c79b6df-cf7d-4d5f-8a28-a91b7cff8c5c","block_type":"box","text":"Certain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":144,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"1fca4bc6-1812-47c4-b47e-9b0b9b11ed4e","block_type":"box","text":"only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored","page_number":144,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"28f63152-f538-4ae8-b4e1-f90e1a80140e","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":144,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"acc75a77-6677-414a-a2e1-609521c79e19","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":144,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"1da4b845-d036-4ccc-8021-80abc224f73a","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":144,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"ac8ada1c-f188-4959-94f4-c05bca90108f","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":144,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"f1a80b65-8ba9-4531-84c4-6cd837cd3ca6","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":144,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"ea5f9487-76f2-411c-98b4-838f098c3767","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":144,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"b6080583-457c-4e8b-89ea-81365a6ac0ab","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":144,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"70a1a07a-222c-45e6-a835-6404ab8acfc3","block_type":"box","text":"banks that purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":144,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"b83d0e32-e4d8-4cf0-b427-b3a2f944d9c9","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":144,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"8db76f43-2aab-4d46-bdab-bba7a81f221d","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":144,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"99024452-8dab-4e21-aec9-3dabc193ad9d","block_type":"box","text":"offer such shares to fee-based advisory clients through an omnibus account held at the Fund or (b) transacts in the","page_number":144,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"08e09c55-fda4-417a-bb26-1d6fc0fa8b5d","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":144,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"1e390010-96c3-43c3-9029-7bda5285bd31","block_type":"box","text":"met the eligibility criteria for BlackRock Shares or Class K Shares prior to August 15, 2016 and have continually held","page_number":144,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"e0e468ff-8b54-484b-a64b-51c893319f34","block_type":"box","text":"Class K Shares of the Fund or the respective Predecessor Fund in the same account since August 15, 2016. The","page_number":144,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"57e3ecd5-65f2-42ed-b8af-4fb63ff4e7a1","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":144,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"5f3416cc-44cc-406b-8ab7-45f82ae01afd","block_type":"box","text":"distribution and marketing agreement.","page_number":144,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"ab9a94b3-cdbb-4a23-bfb6-b4ca22b9586f","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":144,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"fc671d44-fbab-465e-a764-7a2082e94820","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":144,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"d606e90c-afcf-4894-9051-5c29758590fd","block_type":"box","text":"Eligible individuals who would like to convert existing holdings to Class K Shares must contact BlackRock.","page_number":144,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"1dc2b9da-8fff-452d-9c9d-b495bd665f58","block_type":"box","text":"Class G Shares","page_number":144,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"fdbc91f5-5749-4adc-8307-afb9104806a3","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":144,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"15628d8e-03d8-4462-bc53-3683b458d766","block_type":"box","text":"are those where clients invest in the Fund through a single omnibus account in the name of a financial intermediary","page_number":144,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"b24750f9-f613-4728-979a-9117aaf93a9c","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":144,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"bf2e9587-f2e0-4c3d-8145-43afaf0d54ee","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":144,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"b8cc3efb-104e-4e43-ae5d-45bb9bddfd8a","block_type":"box","text":"eligibility requirements.","page_number":144,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"9fb4a2ff-85c9-44f6-a1a9-3f4c85b045c4","block_type":"box","text":"II-107","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4b6b1bff-15a6-49d8-a035-490066814f6b","block_type":"box","text":"NM1026U-5993100-144/236","page_number":144,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"94013211-7eb4-424b-b581-480f04e3a78e","block_type":"box","text":"Service Shares","page_number":145,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"c6059cb4-93f9-48e8-9754-c1046d754659","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain financial","page_number":145,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"11b88625-2d07-474b-b1aa-18ea8bdb5f98","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain persons who were","page_number":145,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"ea6c9c7e-62ce-4375-a320-41e621d25e25","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":145,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"b999b59f-9ca7-43f0-904f-a7abe8a2d1ff","block_type":"box","text":"®","page_number":145,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"c452fd07-35d0-425c-911f-261179120943","block_type":"box","text":"Fund in 1996; and","page_number":145,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"8654af9d-f992-4916-8678-ac2421231d57","block_type":"box","text":"(iii) participants in the Capital Directions","page_number":145,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"e96626f5-9c25-4023-813c-11053a1a1d1b","block_type":"box","text":"SM","page_number":145,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"4223b178-4651-488f-83d3-4bd60a493490","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":145,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"60f37156-90ba-4fc7-8421-8effef3466fe","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set forth in the applicable Fund’s Prospectus.","page_number":145,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"95058b93-011a-444e-b04e-298055b28f4e","block_type":"box","text":"BlackRock Shares","page_number":145,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"79172b86-2146-486b-b129-03ca823f22d0","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares are","page_number":145,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"1ae7f80a-8418-4916-b956-9143f0f8f9f6","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and certain","page_number":145,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"4a380de0-1559-4002-ab4e-506ca9630646","block_type":"box","text":"fee-based programs.","page_number":145,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"fd7600ce-2239-43d9-8e6c-c100127bb2f2","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":145,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"3ea04e3c-cd4a-4884-8073-13de3a8fd2cb","block_type":"box","text":"Each Fund has adopted a plan (each, a “Plan”) pursuant to Rule 12b-1 under the Investment Company Act with","page_number":145,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"3955564f-ffb5-419f-9a24-bbcbaf9952fe","block_type":"box","text":"respect to certain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":145,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"e6b61614-b1ea-4b75-81dd-08a3c7246716","block_type":"box","text":"shareholder servicing fees for certain services provided to its shareholders.","page_number":145,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"10f8768e-6905-4a41-8a94-3b1e0f4b0d37","block_type":"box","text":"Pursuant to the Plans, a Fund may pay BRIL and/or BlackRock, or any other affiliate or significant shareholder of","page_number":145,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"1b8d042c-cc79-4f39-aa03-140a80accac4","block_type":"box","text":"BlackRock, fees for distribution and sales support services with respect to Investor A, Investor A1, Investor C,","page_number":145,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"1807da88-842e-4c6c-8dee-29703d271f7b","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described further below, only Investor C and Class R Shares","page_number":145,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"9645b6e3-f956-4468-a9f1-4c0236600a65","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":145,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"b54e170a-1bd2-43aa-ab03-335665431c41","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":145,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"c553c71a-0a8c-483d-b0a8-a5b27f058b2f","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate efforts to effect sales of the shares, but it is","page_number":145,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"39e20e65-8823-454e-956f-c6c350fee7fd","block_type":"box","text":"not obligated to sell any particular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":145,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"557ad50d-23d1-4b9c-b36e-667409fcd07a","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":145,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"532a496b-5725-408e-92c3-57d266211337","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":145,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"d88153c0-8d70-4d8a-a5b7-73aebafe87c3","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":145,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"920e7d8c-35a0-4f7c-92f6-ea2145b193cd","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":145,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"b6a659f9-46d8-4628-be0a-ebba4609563b","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for certain support services rendered by Service Organizations to","page_number":145,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"a9757cd5-9380-4fea-96d3-d194601dc994","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":145,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"6d469ef9-e682-45ab-b8e6-b2da6625aa80","block_type":"box","text":"Service and Class R Shares of a Fund. Such services are intended to supplement the services provided by the","page_number":145,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"f98f0ebe-2638-4cb6-b28d-f2801d488270","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":145,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"c23f392f-06aa-4855-b595-f4c48f8c29d9","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services, which include,","page_number":145,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"15ff2891-4cee-458f-807f-fb3d67a4378d","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":145,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"6c28c6b1-1e0e-4b6c-8d99-64c942d66d7d","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and certain other matters","page_number":145,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"90c8a71e-963a-48cb-b203-16fda0092eda","block_type":"box","text":"pertaining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":145,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"6823fb71-b000-4cd2-8052-7536c481783a","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":145,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"62573f6f-c72c-48d5-9a66-1e8c78b5ecee","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":145,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"a028ce9b-6ed5-4533-96ba-a51a4b7c23b4","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":145,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"88fe1b34-e2e6-472e-97f1-abf1ba87d41e","block_type":"box","text":"Payments under the Plans are based on a percentage of average daily net assets attributable to the shares in","page_number":145,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"6695df90-dbc9-465b-aad7-0ed2aaf6cdf7","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":145,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"51bb8e0f-355e-43d4-b0b1-82bacc2f2850","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":145,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"e7ec4daa-78b6-41fc-8585-17f26c37d70b","block_type":"box","text":"with respect to the related class. Information with respect to the payments under the Plans and expenses incurred in","page_number":145,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"632fb964-0b71-4125-9604-dec3d85a24ae","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quarterly.","page_number":145,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"3b0715eb-0392-4ee3-a583-24476e472cb7","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":145,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"6ac489a3-2bc1-4258-93bb-e86ce7371792","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":145,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"ace2f5e0-ad77-4d4f-b19b-3c8cd3284023","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":145,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"61bb2076-b01b-488e-8545-94a98f65bccb","block_type":"box","text":"expenses, advertising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":145,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"0bc49f40-3674-4215-a849-8d68124f35c1","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":145,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"c7f67bb3-4f99-4f4c-a059-c712379702fc","block_type":"box","text":"compensation for selling different classes of shares.","page_number":145,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"b0514b36-6352-4c66-a8fb-ce3f3d962f3c","block_type":"box","text":"Each Plan is subject to the provisions of Rule 12b-1 under the Investment Company Act. In their consideration of","page_number":145,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"4c600a25-2b0b-42f4-a09a-b88b2cd7a26b","block_type":"box","text":"a Plan, the Directors must consider all factors they deem relevant, including information as to the benefits of the Plan","page_number":145,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"e95a5b4a-1b2d-4d00-9099-c12d877cfcd3","block_type":"box","text":"to the Fund and the related class of shareholders. In approving a Plan in accordance with Rule 12b-1, the non","page_number":145,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"3d2d0b4a-ff42-488a-87d2-435e4048463c","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":145,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"949c2fc0-f0ac-4d27-a64e-9643076bc078","block_type":"box","text":"II-108","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8251195b-5bdc-43f5-afd8-e9ed9ad6ad82","block_type":"box","text":"NM1026U-5993100-145/236","page_number":145,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"cd3a0247-7efc-45c0-94b0-9e685966d9bf","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quarterly","page_number":146,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"7abe73ec-3b7d-4be5-be84-63f5c148251f","block_type":"box","text":"reports regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":146,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"7b8b26ea-f8ad-4f5f-9c92-147a7e4015a7","block_type":"box","text":"(ii) the Plan will continue in effect for so long as its continuance is approved at least annually by the Board of","page_number":146,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"fe7eb90e-94ab-41fc-9bce-e66d38ab34cf","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":146,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"a13659b9-fcd5-4fc0-ad6a-e6fb37a55da8","block_type":"box","text":"Company Act) and who have no direct or indirect financial interest in the operation of the Plan or any agreement","page_number":146,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"8caccff2-075c-481e-800c-42f16e2bff17","block_type":"box","text":"entered into in connection with the Plan (the “12b-1 Directors”), acting in person at a meeting called for said purpose","page_number":146,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"2de19cbd-3349-420d-b39a-52b7f689dfc0","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":146,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"51b0395d-ea40-45b8-8b99-1248b10c2398","block_type":"box","text":"approved by the Board of Directors, including the 12b-1 Directors, acting in person at a meeting called for said","page_number":146,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"e45f30db-0776-4202-9259-f10962843a98","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":146,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"f895412e-1f18-432a-b27d-808a643b5e5e","block_type":"box","text":"services pursuant to the Plan shall be effective only upon approval by a vote of a majority of the outstanding shares","page_number":146,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"7f28fa9e-cf38-42ff-a616-66373938dc76","block_type":"box","text":"of such class and by a majority of the Board of Directors, including the 12b-1 Directors, acting in person at a meeting","page_number":146,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"7a7de586-5521-400b-885e-27efd4788426","block_type":"box","text":"called for said purpose; and (v) while the Plan remains in effect, the selection and nomination of the Fund’s Directors","page_number":146,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"48fd6a90-e907-407a-bfd3-e34db9822ed9","block_type":"box","text":"who are not “interested persons” of the Fund shall be committed to the discretion of the Fund’s non-interested","page_number":146,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"d0831e74-2cea-4710-b718-67b2cc684a7b","block_type":"box","text":"Directors. Rule 12b-1 further requires that each Fund preserve copies of each Plan and any report made pursuant to","page_number":146,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"8aeba9ef-3fc2-4bb1-bff8-279baf01bf76","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such report, the first two years in an","page_number":146,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"48cf8dbc-4642-4890-891b-00cc484219c4","block_type":"box","text":"easily accessible place.","page_number":146,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"96d4254d-2958-4fe3-8d56-a958edaecde9","block_type":"box","text":"Each Plan is terminable as to any class of shares without penalty at any time by a vote of a majority of the 12b-1","page_number":146,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"f5c80b9a-4e22-476e-8b33-41710b9b5533","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":146,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"1828194e-4dab-4a9e-a52f-fb51372493ed","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":146,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"e60ba38b-d1b3-4f58-9d28-3741ec02ec86","block_type":"box","text":"information relating to the fees paid by your Fund to the Distributor under each Plan during the Fund’s most recent","page_number":146,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"5889289c-bf87-4c95-955b-3d5d75c9618a","block_type":"box","text":"fiscal year.","page_number":146,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"3a61bd1b-bd77-4551-b899-936c4174e26b","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":146,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"332f8f34-30ca-4071-bb02-7f3087112ed3","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":146,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"e85cd604-fd39-4a0d-9023-c24c4df56c17","block_type":"box","text":"imposes a limitation on certain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":146,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"0968a8d5-e792-452d-8091-36031a5daa76","block_type":"box","text":"the distribution fee and the CDSC borne by the Investor C Shares. This limitation does not apply to the shareholder","page_number":146,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"aab6e932-042c-44a3-839e-d572c0b3e2af","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":146,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"4f419531-d07c-41c7-b556-5c8b5751e32c","block_type":"box","text":"distribution fee payments and CDSCs payable by a Fund to (1) 6.25% of eligible gross sales of Investor C and Class R","page_number":146,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"a76bafbf-bb88-41a5-aee6-a5479963922b","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":146,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"6e677831-15a5-4e18-a658-c55adabd3caa","block_type":"box","text":"(2) interest on the unpaid balance for the respective class, computed separately, at the prime rate plus 1% (the","page_number":146,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"0b60e932-e24a-40ba-8b64-35880220a96e","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":146,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"4c9a4224-7378-4dab-ae3b-b53d492ea57d","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI","page_number":146,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"fa8d35df-7842-4e9b-9351-429096b04ad4","block_type":"box","text":"for comparative information as of your Fund’s most recent fiscal year end with respect to, if applicable, the Investor C","page_number":146,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"455bde3d-59c5-43e2-bdbd-18d7719e730b","block_type":"box","text":"and Class R Shares of your Fund.","page_number":146,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"cc47db33-58a8-413d-9992-3f765f13b518","block_type":"box","text":"Other Payments by the Fund","page_number":146,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"60cd26ae-d4b3-46c8-ab16-55fea2475787","block_type":"box","text":"In addition to shareholder servicing fees that a Fund may pay to a Service Organization pursuant to the Plan and","page_number":146,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"b1de9893-af4e-4346-8aa7-912544eb3e01","block_type":"box","text":"fees the Fund pays to its Transfer Agent, BlackRock, on behalf of a Fund, may enter into non-Plan agreements with","page_number":146,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"7ee2e790-86db-4789-89eb-9e44410b31e4","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":146,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"2206b565-6ed4-4674-b37b-d4449ba10aca","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":146,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"fee8f3f5-4c8e-4c30-ac3b-8839a53be0fe","block_type":"box","text":"generally based on either (1) a percentage of the average daily net assets of Fund shareholders serviced by a Service","page_number":146,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"08de615b-166b-45d4-ab8d-36fc413e079a","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":146,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"17d093f3-57bf-4600-8a2e-beb575e51d2d","block_type":"box","text":"of these payments may be substantial.","page_number":146,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"f15ba5f7-e745-4c51-a427-28de7917cbfb","block_type":"box","text":"Additional Payments by BlackRock","page_number":146,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"1aaed1a2-63de-402c-948e-f0ede58d006a","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":146,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"46a7a33a-189e-4948-8d42-de424e0a51c6","block_type":"box","text":"may compensate Service Organizations for the sale and distribution of shares of a Fund, for services to a Fund and","page_number":146,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"1688a272-0c33-4478-b919-bbd11c0df90d","block_type":"box","text":"its shareholders and/or for data provision or technology support. A Service Organization may perform these","page_number":146,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"402b3eac-e46e-4975-8fa3-7dd1906dd78e","block_type":"box","text":"obligations itself or may arrange for a third party to perform them. These payments, which are not made pursuant to","page_number":146,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"28a72626-e537-43bb-a735-17c4992dd925","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":146,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"020d0247-78e7-40dd-856c-88255af3b496","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":146,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"aad45fbc-4b1e-4b4d-b207-e2f46a8db3e7","block_type":"box","text":"paid by a Fund to BlackRock for various services, such as investment advisory services). These payments are not an","page_number":146,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"b4548dec-0b82-4094-8a11-14a08bafba72","block_type":"box","text":"additional charge to a Fund or its shareholders and do not change the price paid by shareholders for the purchase of","page_number":146,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"90007522-ab72-4f4d-9a8b-5273638bebf8","block_type":"box","text":"a Fund’s shares or the amount a Fund receives as proceeds from such purchases. Additional Payments made to","page_number":146,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"d4394a98-085c-40ac-aff3-aa1c2671d7c5","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":146,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"e7006ebc-187c-4405-938c-a0ff75553d4f","block_type":"box","text":"II-109","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5814ec13-6224-45b0-ae4f-2856991dc03f","block_type":"box","text":"NM1026U-5993100-146/236","page_number":146,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1a7f7e57-eb5b-4135-875a-9485f044a47e","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":147,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"25db0571-9704-4f32-ae9c-37f2570ce671","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":147,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"ea93c00a-290d-4a2e-a2a3-339a125b39d0","block_type":"box","text":"applicable FINRA regulations, the details of certain of these payments, including the Service Organizations receiving","page_number":147,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"ef1c5445-a572-42c1-ac1f-7fea13399100","block_type":"box","text":"such payments in connection with the sale and distribution of Fund shares, are required to be disclosed. While FINRA","page_number":147,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"e7fd9415-7d62-473b-8e23-7c33260521e6","block_type":"box","text":"regulations limit the sales charges that shareholders may bear, there are no limits with regard to the amounts that","page_number":147,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"25dfb5cc-ad86-4179-8064-786a2488460b","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":147,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"cbbf8c98-c565-4b32-b5cc-bf1730f3f2ee","block_type":"box","text":"Additional Payments may be made as a fixed dollar amount, may be based on the number of Customer accounts","page_number":147,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"87c4931f-3b36-4c61-8d4d-ff0d7cd1dd8d","block_type":"box","text":"maintained by a Service Organization, may be based on a percentage of the value of shares sold to, or held by,","page_number":147,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"92f85378-e34d-499a-8b7a-140da6406752","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":147,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"c74c7456-dad5-46c8-b4cb-6c6424ae8c23","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":147,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"0b0a661c-91a9-492c-84bd-1a5e55b09716","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":147,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"5f0f72b6-6ed0-4ea8-8a6e-b17ac7200899","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":147,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"0e3f28ed-9e01-4bb1-bae2-2479fe1af7c2","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":147,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"5742036a-afb4-44dd-9dbf-6400a658a370","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":147,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"d9c0c30f-c5f5-493e-ad80-fbf974e60cac","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In certain","page_number":147,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"e160f5e6-7bb5-4a00-af16-01d89800c6c4","block_type":"box","text":"cases, these payments may be subject to certain minimum payment levels.","page_number":147,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"ae878eaa-566c-4214-84ad-b4a6d41833ec","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":147,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"8d98b6d1-121d-4855-8726-d004db9ab30d","block_type":"box","text":"certain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":147,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"0f999d09-e0eb-4010-b4e8-54ca9cc582e9","block_type":"box","text":"same Service Organization, or one or more of its affiliates, may receive payments under more than one category of","page_number":147,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"3e80cb14-60a8-4ada-b04d-21a1476adb13","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":147,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"cc3e16d6-64f3-4c49-8399-f974db4b87f6","block_type":"box","text":"Funds.","page_number":147,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"ec4c3ef1-92f6-4a2e-adeb-d58a852e8122","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":147,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"ed13b614-b70c-4b22-80e2-e69c11632a19","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing support activities. 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BlackRock","page_number":151,"box":{"x":70,"y":341,"width":833,"height":11}},{"id":"ccecb8aa-ffdf-4091-8bf4-0709988cff78","block_type":"box","text":"configures these tools and calculators and localizes the content for Service Organizations as part of its customary","page_number":151,"box":{"x":69,"y":356,"width":817,"height":11}},{"id":"f66a4b77-86ce-4723-9f8e-84c05dc34936","block_type":"box","text":"digital marketing support and promotion of the Funds or other BlackRock funds, iShares ETFs and other exchange","page_number":151,"box":{"x":69,"y":371,"width":815,"height":11}},{"id":"7ab62f9e-2f27-4473-a0d4-1929b57b743d","block_type":"box","text":"traded products.","page_number":151,"box":{"x":68,"y":386,"width":116,"height":11}},{"id":"15d63900-e744-4186-81c9-6e74b95ec87f","block_type":"box","text":"F. Conflicts","page_number":151,"box":{"x":102,"y":409,"width":78,"height":9}},{"id":"70fc66b8-3f57-451a-a07d-6c0374099f93","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":151,"box":{"x":101,"y":431,"width":710,"height":12}},{"id":"f6629697-67dd-4249-8949-fcdccf79af0c","block_type":"box","text":"arrangements may be an important factor in the Service Organization’s willingness to support the sale of a Fund","page_number":151,"box":{"x":69,"y":446,"width":803,"height":12}},{"id":"d3610604-113c-4c23-a0a2-e6d6ae08294d","block_type":"box","text":"and/or particular share class through its distribution system or to perform services with respect to such Fund.","page_number":151,"box":{"x":69,"y":462,"width":788,"height":11}},{"id":"8d032e3c-c25a-4e7c-9da8-be4cff5d0738","block_type":"box","text":"Additional Payments and other incentive arrangements may also be important factors in the Service Organization’s","page_number":151,"box":{"x":68,"y":477,"width":819,"height":11}},{"id":"82d7bf60-854c-422d-b589-185ad3b088f9","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":151,"box":{"x":68,"y":492,"width":473,"height":11}},{"id":"4c92c979-4560-4699-a822-1bac683d8e4a","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":151,"box":{"x":102,"y":515,"width":793,"height":11}},{"id":"3b778396-78e4-4856-8559-fc4edd029eff","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":151,"box":{"x":69,"y":530,"width":835,"height":11}},{"id":"ae5d1d6b-04c5-4001-8352-88d7a33cd86d","block_type":"box","text":"the extent Service Organizations sell more shares of a Fund or retain shares of a Fund in their Customers’ accounts,","page_number":151,"box":{"x":68,"y":545,"width":833,"height":11}},{"id":"0c4c4456-8567-49b9-8c66-96fbee0b0c35","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":151,"box":{"x":70,"y":560,"width":830,"height":11}},{"id":"2b8e6265-7d65-475e-bf61-62b403fe3b68","block_type":"box","text":"Service Organizations may have financial incentives for recommending a particular Fund, share class or fund","page_number":151,"box":{"x":102,"y":583,"width":774,"height":11}},{"id":"ebaea9f5-433f-4230-8307-7f93a6d386f0","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":151,"box":{"x":69,"y":598,"width":794,"height":11}},{"id":"08dd0dc6-70f0-41f5-86c1-0e4fdb886303","block_type":"box","text":"purchase or redemption of Fund shares or for account-related services which are in addition to the sales and other","page_number":151,"box":{"x":70,"y":613,"width":818,"height":11}},{"id":"b477e254-5d7c-4d41-9e46-49d3df1e0df3","block_type":"box","text":"charges described in the Fund’s Prospectus and this SAI. Such charges may vary among Service Organizations but in","page_number":151,"box":{"x":69,"y":628,"width":836,"height":11}},{"id":"3384403d-b6dc-4a06-adc0-34e0d0cb3dc5","block_type":"box","text":"all cases will be retained by the Service Organization and will not be remitted to a Fund or BlackRock.","page_number":151,"box":{"x":69,"y":643,"width":723,"height":11}},{"id":"49c32bf3-0a2a-4627-9103-4d590188bf6d","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":151,"box":{"x":102,"y":666,"width":759,"height":11}},{"id":"4077f938-c477-4d06-a45d-2e5beab37b0c","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":151,"box":{"x":69,"y":681,"width":760,"height":11}},{"id":"12ce4dd7-853c-4622-b9df-ec77cb8b0d0a","block_type":"box","text":"appropriate.","page_number":151,"box":{"x":69,"y":696,"width":84,"height":11}},{"id":"ce5ae1db-0069-4e27-aaaa-b606f891d1ae","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":151,"box":{"x":160,"y":696,"width":738,"height":11}},{"id":"37924328-aa8a-428f-ab42-cf4f41f6246f","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":151,"box":{"x":69,"y":711,"width":795,"height":11}},{"id":"f3aaf9f3-c5ee-4ebb-880f-5ac8e3f3c659","block_type":"box","text":"described above.","page_number":151,"box":{"x":69,"y":726,"width":122,"height":9}},{"id":"c2632ac4-d04f-423c-88a3-b2ee94395b6d","block_type":"box","text":"REDEMPTION OF SHARES","page_number":151,"box":{"x":385,"y":756,"width":208,"height":9}},{"id":"3b63258c-3e8a-4dcd-8f0e-8018370d8a3b","block_type":"box","text":"Shares normally will be redeemed for cash upon receipt of a request in proper form, although each Fund retains","page_number":151,"box":{"x":102,"y":778,"width":798,"height":12}},{"id":"5ac260b5-25b3-43a9-9723-ce763fb55dd7","block_type":"box","text":"the right to redeem some or all of its shares in kind (valued in the same way as they would be valued for purposes of","page_number":151,"box":{"x":68,"y":794,"width":836,"height":11}},{"id":"23ad9dc3-d69a-4477-b7c6-b8cfb80a18f0","block_type":"box","text":"computing a Fund’s NAV), by delivery of securities and other assets selected from the Fund’s portfolio holdings at the","page_number":151,"box":{"x":69,"y":809,"width":840,"height":11}},{"id":"ccf8611b-8912-462c-8412-2779f2234504","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in portfolio securities and other assets rather","page_number":151,"box":{"x":70,"y":824,"width":814,"height":11}},{"id":"9d521f05-bf75-4afe-b1db-91e91107cb79","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":151,"box":{"x":68,"y":839,"width":809,"height":11}},{"id":"20e5b4ba-1d35-4af6-894d-42edefdb3a4d","block_type":"box","text":"able to accept securities in kind, and may also be used in stressed market conditions. If this occurs, the redeeming","page_number":151,"box":{"x":69,"y":854,"width":827,"height":11}},{"id":"97189593-5892-495a-8f8c-bd3057c7128f","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to convert the securities and other assets to cash. Each","page_number":151,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"073c167f-7c76-428f-b82a-d9b388711785","block_type":"box","text":"Fund has elected, however, to be governed by Rule 18f-1 under the Investment Company Act so that the Fund is","page_number":151,"box":{"x":70,"y":884,"width":797,"height":12}},{"id":"c87d580e-8d04-49ac-a977-a0f4fb799b38","block_type":"box","text":"II-114","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"89affb2d-28a9-4fac-9b5c-6fe0dc2a9437","block_type":"box","text":"NM1026U-5993100-151/236","page_number":151,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0b024df9-ddeb-41de-adfb-bda9a1b9aca3","block_type":"box","text":"obligated to redeem its shares solely in cash up to the lesser of $250,000 or 1% of its NAV during any 90-day period","page_number":152,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"5c70eebe-32d8-4834-9602-d84579889a0e","block_type":"box","text":"for any shareholder of the Fund.","page_number":152,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"a53a7171-a084-4cb2-8254-c9d52194e043","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":152,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"cce9ca6a-768f-4645-9677-ab34ba111679","block_type":"box","text":"redemption. The value of shares of each Fund at the time of redemption may be more or less than your cost at the","page_number":152,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"4540746f-4b21-4fac-bf32-028ef987c1c6","block_type":"box","text":"time of purchase, depending in part on the market value of the securities held by the Fund at such time. Except for","page_number":152,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"5f54aeed-0b8c-4e84-8eef-1f8af9f31eb8","block_type":"box","text":"any CDSC that may be applicable, there will be no redemption charge if your redemption request is sent directly to","page_number":152,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"8edf24d7-daa1-4059-b280-7cf97baf1532","block_type":"box","text":"the Transfer Agent. If you are liquidating your holdings you will receive all dividends reinvested through the date of","page_number":152,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"a334bb04-4ff8-4002-8b45-8421e1aee467","block_type":"box","text":"redemption.","page_number":152,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"37bc2d17-bc2a-457c-9713-e1612cb3bf1f","block_type":"box","text":"The right to redeem shares may be suspended or payment upon redemption may be delayed for more than seven","page_number":152,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"3a74f74e-6503-45e5-b4fc-5c32ec30c9d0","block_type":"box","text":"days only (i) for any period during which trading on the NYSE is restricted as determined by the Commission or during","page_number":152,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"48c8fe1d-65ec-4fd2-86bd-4c19221d03f1","block_type":"box","text":"which the NYSE is closed (other than customary weekend and holiday closings), (ii) for any period during which an","page_number":152,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"80f5e219-8c44-43a6-9269-9269eb1e1485","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of portfolio securities or","page_number":152,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"9268e0e0-3371-4187-b9d0-45f2ea53bb2e","block_type":"box","text":"determination of the NAV of a Fund is not reasonably practicable, or (iii) for such other periods as the Commission","page_number":152,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"1a767dfe-a2e1-414d-84be-9dee38f74eb4","block_type":"box","text":"may by order permit for the protection of shareholders of the Fund. (A Fund may also suspend or postpone the","page_number":152,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"45839fbc-69ae-4024-b0f2-bff7023ec598","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":152,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"9e02fc1d-656b-4908-993b-e46501cb3b4c","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":152,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"160e5042-3652-4ca0-944f-ff37105beaf8","block_type":"box","text":"credit with a syndicate of banks that is intended to provide the Fund with a temporary source of cash to be used to","page_number":152,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"041ebf35-0d78-4adc-930b-cac467d5c734","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":152,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"54e44c6e-0478-42a4-8c9e-6cf318acd7b1","block_type":"box","text":"Each Fund may redeem shares involuntarily to reimburse the Fund for any loss sustained by reason of the failure","page_number":152,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"8756bde1-96ea-4dd7-98d1-755c5c2054fd","block_type":"box","text":"of a shareholder to make full payment for shares purchased by the shareholder or to collect any charge relating to a","page_number":152,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"529b2dd6-edf2-4d99-9635-1bbcd5474cc0","block_type":"box","text":"transaction effected for the benefit of a shareholder. Each Fund reserves the express right to redeem shares of the","page_number":152,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"2c7229ff-a8c2-4f8e-88c9-15efa14a7fbc","block_type":"box","text":"Fund involuntarily at any time if the Fund’s Board of Directors determines, in its sole discretion, that failure to do so","page_number":152,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"5f52b38c-5abc-4af6-9c0b-9e69ce91b806","block_type":"box","text":"may have adverse consequences to the holders of shares in the Fund. Upon such redemption the holders of shares","page_number":152,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"3161aced-493b-4a29-93f3-17f2b909b10b","block_type":"box","text":"so redeemed shall have no further right with respect thereto other than to receive payment of the redemption price.","page_number":152,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"59ac7647-e438-4022-b4a0-17c7853b947e","block_type":"box","text":"Redemption","page_number":152,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"01d44c29-0ddb-4064-b899-1a00598b0ee0","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":152,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"fbb72e6c-31e7-4dee-8b67-ee23f5d1587f","block_type":"box","text":"Redeem by Telephone:","page_number":152,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"4db93a21-c5c9-4e95-a7f6-36e105d6145c","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":152,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"2dae1820-a72b-4cf1-9e42-7aeaa3bce2de","block_type":"box","text":"telephone request if certain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":152,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"0a6cd9b0-7da4-498d-8971-d251dc9a58fd","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":152,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"3bce34ec-90e2-4037-831c-b0a5bac1a556","block_type":"box","text":"Certain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":152,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"0f04c1ab-fa86-4d2f-a5ee-a08344e2176d","block_type":"box","text":"verified banking information on file; or (ii) the proceeds are not paid to the record owner at the record address, must","page_number":152,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"fe0995d8-4dee-4497-a421-55ab6d40f02d","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":152,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"8365f4ce-fff5-4e81-80a2-cb4373cb5dd7","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":152,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"8a5ba08f-baea-416b-8571-495d479c5f07","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, certain redemption","page_number":152,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"3796baa9-b3d2-45dc-90b2-0a24929f71a5","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":152,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"13aadf02-fd1e-43c3-a25f-d1e098702f62","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":152,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"ae432ec3-a9e5-4938-8762-eff284c55c38","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":152,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"4705751f-5e07-46a3-9973-cdd5b11249ef","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":152,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"4db859e7-0604-415f-8d27-ac5499ba41cc","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of these programs","page_number":152,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"f8ac723c-802b-40d9-9f80-79372c3727b7","block_type":"box","text":"will not be accepted. A notary public seal will not be acceptable. Generally, a properly signed written request with any","page_number":152,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"50603365-8ab6-4aa9-a05e-09f6ede631ca","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":152,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"d292795c-b254-499a-836c-a9304bad7a6f","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":152,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"bfd40810-0184-48d8-ade0-331b2248a4a4","block_type":"box","text":"is requested by a corporation, partnership, trust, fiduciary, executor or administrator.","page_number":152,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"bdc73dd2-9dcb-4425-a455-4a4f9e4612e1","block_type":"box","text":"If you make a redemption request before a Fund has collected payment for the purchase of shares, the Fund","page_number":152,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"ab7364b4-ec6c-4c1a-9a5d-596851608827","block_type":"box","text":"may delay mailing your proceeds. This delay will usually not exceed ten days. A Fund, its Administrators and the","page_number":152,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"9d576240-827b-4f88-ba89-aad8cc0bdeb5","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":152,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"30453cd6-db32-4d66-b328-53a47919cd89","block_type":"box","text":"Telephone redemption requests will not be honored if: (i) the accountholder is deceased, (ii) the proceeds are to be","page_number":152,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"6ea6758f-cb91-47c3-8229-eb89808792f9","block_type":"box","text":"sent to someone other than the shareholder of record, (iii) a Fund does not have verified information on file, (iv) the","page_number":152,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"016da6b4-5fff-45a5-a4a7-d2af2ab59dff","block_type":"box","text":"request is by an individual other than the accountholder of record, (v) the account is held by joint tenants who are","page_number":152,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"43f11567-9420-4168-8467-7ed000e3838e","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share certificates have been issued","page_number":152,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"a9fb8400-823a-45e5-b558-446e60cf6a09","block_type":"box","text":"on the account, or (vii) to protect against fraud, if the caller is unable to provide the account number, the name and","page_number":152,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"4548d5b5-8ec0-423d-85c1-c8d231d4e0ea","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":152,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"f523264c-8fab-4d0a-b394-728b228a007c","block_type":"box","text":"service providers will not be liable for any loss, liability, cost or expense for acting upon telephone instructions that","page_number":152,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"2fdf94b2-896e-4382-8d77-b74be9d8c147","block_type":"box","text":"II-115","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"757792da-2a14-49c7-a817-51ecdf0167fd","block_type":"box","text":"NM1026U-5993100-152/236","page_number":152,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f675de3e-8005-4dcc-be84-ef9bfa60e143","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":153,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"e3bbc123-90c9-4445-bbf6-2a18d936571c","block_type":"box","text":"honored, signature approval from all shareholders of record on the account must be obtained. The Fund may refuse a","page_number":153,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"41ae8192-603b-4e5b-be77-d375782db88e","block_type":"box","text":"telephone redemption request if it believes it is advisable to do so. During periods of substantial economic or market","page_number":153,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"f3ed1ac8-2382-4376-8400-653001c63ac3","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":153,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"ea18e271-b656-4a93-b601-fdf46941ed4e","block_type":"box","text":"Redemption orders for Institutional Shares placed prior to 4:00 p.m. (Eastern time) on a business day will be","page_number":153,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"f78f8e79-f352-430f-b5d1-df169e4d37cf","block_type":"box","text":"priced at the NAV determined that day. If redemption orders are received by 4:00 p.m. (Eastern time) on a business","page_number":153,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"7b78db24-4476-4b4e-a7b3-3fb16e3dc5dd","block_type":"box","text":"day, payment for redeemed Institutional Shares will normally be wired in Federal Funds on the next business day. If","page_number":153,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"3886fdcb-d4fa-470b-9b77-94b5d07a1ba4","block_type":"box","text":"the Federal Reserve Bank of Philadelphia is not open on the business day following receipt of the redemption order,","page_number":153,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"28722571-a7cb-4af2-b92f-5fc0192683fa","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":153,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"9bd73e09-86e7-4917-b96e-a5b66e626314","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":153,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"f9ce68f1-2a2b-42bf-ae05-91e0f659f52d","block_type":"box","text":"Redeem by VRU:","page_number":153,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"2b816b18-7a47-4550-af84-4cdc5600cb1a","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":153,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"23dcc781-699e-4bd0-9159-1aaa82f24891","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":153,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"5977a1c1-4968-465d-b595-07a40730ca23","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":153,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"428995a2-b7d8-408b-9458-cc4dd1d312ac","block_type":"box","text":"Redeem by Internet:","page_number":153,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"d2a5f94b-2faa-452b-b649-0a2a4990dc19","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":153,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"2360c2a0-8849-4a01-823e-916598e6ec57","block_type":"box","text":"BlackRock website at www.blackrock.com. Proceeds from Internet redemptions may be sent via check, ACH or wire to","page_number":153,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"fc8339eb-4d2b-4212-974e-43ca0e9e60f2","block_type":"box","text":"the bank account of record. Payment for shares redeemed by Internet may be made for non-retirement accounts up","page_number":153,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"a20dbc1c-98e6-4bfe-a60b-f6f6ab13f695","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to certain","page_number":153,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"776a5eaa-979c-4ce5-b88e-4401137edab7","block_type":"box","text":"institutional investors.","page_number":153,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"cbad6ba1-7d0d-41f4-ba0d-8038fadfeaa0","block_type":"box","text":"Redeem in Writing:","page_number":153,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"4a6cb8a7-5bd6-45a2-a420-88b8625e66c2","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":153,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"431a514c-77c6-4c7d-b820-aea78817dedc","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":153,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"9b72d1ee-ce2e-4605-84de-91e07fc52f3b","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":153,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"8ce1596f-ad0c-4a00-8a87-ed1ba5eed784","block_type":"box","text":"Pennsylvania 15222. If you hold share certificates issued by your Fund, the letter must be accompanied by","page_number":153,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"5f11e692-e985-4fcf-b36e-35f3d8f592aa","block_type":"box","text":"certificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":153,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"cb2162f6-855d-43a8-8084-010a7e846a72","block_type":"box","text":"generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature","page_number":153,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"377e38c5-915f-4b57-9b63-9255535765b5","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":153,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"29d7dec5-f95b-4cc4-92f4-e33d48374f5a","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":153,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"a8f9816d-a2a8-4aba-bd33-c04a06e79e10","block_type":"box","text":"hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":153,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"b9756c27-de8b-4842-8d61-711a894130c0","block_type":"box","text":"or wire to the bank account of record.","page_number":153,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"bc739984-0907-4346-b3be-4027536cf090","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":153,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"b6e920cf-9757-4f82-a684-d5afa473b64d","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":153,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"25cdaaef-2ef2-4876-bdfe-5c44ce711d09","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":153,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"6020e15f-f110-4810-aa18-5f70d79fce61","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":153,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"be0a1358-0759-463c-a9ee-4f54ece1bd76","block_type":"box","text":"of receipt of the proper notice of redemption. A Fund may delay the mailing of a redemption check until good payment","page_number":153,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"bdc58538-397b-496f-a351-3a94426b79a4","block_type":"box","text":"(that is, cash, Federal funds or certified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":153,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"4c1f1a30-109c-4da3-95bf-67df1efa9904","block_type":"box","text":"shares, which delay will usually not exceed 10 days. If your account is held directly with the Transfer Agent and","page_number":153,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"8dad833f-20cb-4497-bbf9-0f426aba5369","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":153,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"38fd45ce-ccf4-4ce6-8a39-180cc1d01395","block_type":"box","text":"redeemed by the Fund.","page_number":153,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"1b5fce85-e3f6-418c-8f88-d58276c174e4","block_type":"box","text":"Note on Low Balance Accounts.","page_number":153,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"ad9a67e1-1051-4396-8181-3d6eef06f955","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":153,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"4c03bff3-33b9-42af-b255-17fd8a2804fc","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":153,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"c5d7057e-b6c8-4446-bdd2-63a5270377e3","block_type":"box","text":"Minimum”), and may redeem the shares in your account if the NAV of those shares in your account falls below $500","page_number":153,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"3365fb3a-f7ee-4488-bccc-3d1c04c4b280","block_type":"box","text":"for any reason, including market fluctuation.","page_number":153,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"5de65fef-77f9-4ad8-8b86-56e075cf4d01","block_type":"box","text":"You will be notified that the value of your account is less than the Fund Minimum before the Fund makes any","page_number":153,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"acac9125-8504-49b9-a683-76087494880a","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":153,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"9eb6f399-be0a-44ed-8527-ace8c092f1fd","block_type":"box","text":"investment in order to bring the value of your account to at least $500 before the Fund makes an involuntary","page_number":153,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"61318e21-140d-4a90-887e-e7496ccafb43","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":153,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"776bd64e-c73c-4296-bc67-45c2e7f1effd","block_type":"box","text":"certain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":153,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"6c2e085c-98cc-4347-b99e-34e5db2b5586","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":153,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"7b908b66-ace3-4154-b6c4-37015fda0510","block_type":"box","text":"Redemptions in Kind:","page_number":153,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"9e384974-899d-43fb-bc73-66024f2bbb4c","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":153,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"88f40dbe-e7e7-43cb-9e34-8f0d31a074ee","block_type":"box","text":"whole or in part by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":153,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"d135fafd-1d83-487d-abe2-be8a11ba019f","block_type":"box","text":"Fund’s NAV, except that each Fund is obligated to redeem shares solely in cash up to the lesser of $250,000 or 1%","page_number":153,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"eb222115-a5f1-4ecd-b789-fede97f628ad","block_type":"box","text":"of the Fund’s NAV during any 90-day period for any one shareholder. Redemptions in excess of those amounts will","page_number":153,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"4e1b0f7b-68fd-42a7-af44-4878d42bf1e7","block_type":"box","text":"normally be paid in cash but may be paid wholly or partly by a distribution in kind of securities.","page_number":153,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"a90bc265-ddfe-4bf3-b03d-b067b6f53284","block_type":"box","text":"II-116","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e311a81e-ce45-4ea3-a0cb-b9bd6e692f08","block_type":"box","text":"NM1026U-5993100-153/236","page_number":153,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7a167c94-88ef-44fb-93a9-74c183870254","block_type":"box","text":"The specific security or securities to be distributed will be determined by the Manager and could include a pro","page_number":154,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"e4ec43a3-d893-4c9e-a5b7-715631147b87","block_type":"box","text":"rata representation of the Fund’s portfolio or a non-pro-rata representation of the Fund’s portfolio depending upon","page_number":154,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"d6d9281b-2d68-4500-94bf-a12766649abd","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":154,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"c8b0c671-f5e9-4758-a498-6da6451f55ac","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":154,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"152eac2b-9ad5-4443-9131-84fafb787451","block_type":"box","text":"considering certain factors, including, without limitation, the portfolio management team’s model or optimal portfolio,","page_number":154,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"1dffca72-fc17-4daa-a012-472de64314a0","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":154,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"583e8aaa-ef55-4304-b477-e904e84cc1f7","block_type":"box","text":"liquidity of the securities, and the tax basis of the securities. There is no assurance that BlackRock will select to","page_number":154,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"2b58c1cd-4966-448b-bc0c-88d1fc0f5f42","block_type":"box","text":"retain those securities that will perform the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":154,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"4a1bdfdd-8dff-4c0b-a5f0-a68066018f5e","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of portfolio holdings","page_number":154,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"231fa7c5-4900-4fcd-857f-53b4ea3c3cf5","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":154,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"87ea9677-b5fa-459e-b3e3-8ec935476380","block_type":"box","text":"The Funds may effect redemptions in kind in an effort to, among other considerations: (a) manage the portfolio","page_number":154,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"5565adab-c94b-424f-90b7-f6974df1857e","block_type":"box","text":"efficiently or for any other portfolio management purpose, and (b) externalize certain transaction costs that would","page_number":154,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"a2d62ea1-a26c-458c-81ab-4adac5d835e3","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or portfolio turnover. Redemptions in kind may","page_number":154,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"a2296e69-6cac-437c-85c2-2d5fbb857c69","block_type":"box","text":"reduce the need for the Fund to maintain short-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":154,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"08e8d51c-bc5e-4725-a09a-0a96b3ae5761","block_type":"box","text":"for the Fund to sell its investments at inopportune times, and lower Fund capital gain recognition, all of which may be","page_number":154,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"443a4c07-e358-4656-aaef-fa11e32c35ca","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":154,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"9ae6703f-133a-4d5b-a975-123723fc72d1","block_type":"box","text":"redemptions in kind can or will be effected when they would be beneficial to a Fund, and it may be impractical or","page_number":154,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"eee4ad90-3b3c-469c-bc22-43d847887f72","block_type":"box","text":"impossible to effect redemptions in kind with many or substantially all of the Fund’s shareholders because of, among","page_number":154,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"8be5a8ea-2c26-49b5-9f27-99d27844996e","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":154,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"97f49fc6-a65d-4819-8d79-b81823ca3302","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s portfolio, or a","page_number":154,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"97ac049f-912d-47c2-85b7-31781020779c","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":154,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"169779c5-c12c-4cec-b8fa-d05fa4f62514","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":154,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"8f9e5907-121a-461a-827f-8ee472bc2e3b","block_type":"box","text":"kind rather than in cash. A Fund’s ability to pay these redemption proceeds in kind relieves the Fund of the need of","page_number":154,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"48a88bc7-e011-43cc-a1d9-36d5dda4cf1c","block_type":"box","text":"the Fund to sell the securities that are distributed in kind and incur brokerage and other transaction costs associated","page_number":154,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"d468a23a-7246-473e-b9cd-8a9cb5b98f23","block_type":"box","text":"with such sale, and may have the effect of reducing the amount of taxable gains the Fund would otherwise be","page_number":154,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"987330d2-677c-48ba-a8eb-3ca9e8cd3566","block_type":"box","text":"required to distribute to shareholders. A Fund’s ability to engage in such transactions is subject to, among other","page_number":154,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"72b4e010-ca82-442e-8b78-297b4ed9ed90","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":154,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"b02b38af-3ac9-4944-a3a5-7b2f3767c8a8","block_type":"box","text":"to transact in kind, and there is no assurance that the Fund can or will effect any redemptions in kind. Financial","page_number":154,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"c854ad38-40ea-49e3-a9a7-976ea92496cc","block_type":"box","text":"institutions that participate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":154,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"b04bafb4-425a-4d3f-b6f6-a0dfaf0210b3","block_type":"box","text":"doing so. The Funds’ short-term trading policy shall not apply to the transactions described in this sub-section.","page_number":154,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"e4030b0f-5b21-492e-9048-58ea3c59c191","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to convert them to cash, you may pay taxes","page_number":154,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"8c53a666-f46b-4677-a446-771ab3eec296","block_type":"box","text":"and brokerage and other transaction costs to dispose of the securities. You may also receive less for the securities","page_number":154,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"21b10fe4-8b60-4037-a93d-85408d496c8f","block_type":"box","text":"than the price at which they were valued for purposes of effecting the redemption. There may also be a risk that","page_number":154,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"64af97de-364e-48dd-954b-c9990c814b45","block_type":"box","text":"redemption in kind activity could negatively impact the market value of the securities distributed in kind and, in turn,","page_number":154,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"f5d5c734-7e12-411b-9d7a-9237687dfa6a","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":154,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"29cb53ae-387c-4a0f-9757-924115333e56","block_type":"box","text":"Repurchase","page_number":154,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"ef22e812-94f7-44a3-b1fd-ea4114c52aa7","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":154,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"da679236-7f31-49b2-9845-0ac5d7b4d296","block_type":"box","text":"priced at the NAV of the Fund next determined after receipt of the repurchase order by a Selling Dealer that has been","page_number":154,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"37eba8a8-eb99-4592-8467-189cc641f82b","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":154,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"42f97db9-990f-4f49-8722-1aa848a8e4a3","block_type":"box","text":"prior to the close of business on the NYSE (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the","page_number":154,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"32f508e0-e78e-4b0b-8064-0252692f8cd5","block_type":"box","text":"order is placed, which includes orders received after the close of business on the previous day, the repurchase price","page_number":154,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"4c78c842-5769-4766-aba7-a0c229719151","block_type":"box","text":"is the NAV determined as of the close of business on the NYSE on that day. If the orders for repurchase are not","page_number":154,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"98aa2b00-afd3-4244-bc0f-3730d653865c","block_type":"box","text":"received by the Selling Dealer before the close of business on the NYSE, such orders are deemed received on the","page_number":154,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"b3157034-efa6-4217-be57-27bfe89d2451","block_type":"box","text":"next business day.","page_number":154,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"8de7e0de-fc1f-4887-b984-9a9a6fe1f5a3","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":154,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"d3d9793a-5aaa-4287-8e11-9ce31d3b6f27","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":154,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"33cf47c7-af0a-49a5-bd48-cf7b76b9d550","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":154,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"5440ef44-d685-4ac4-a8f2-bd6a84fd3434","block_type":"box","text":"impose a transaction charge for transmitting the notice of repurchase to the Fund. Each Fund reserves the right to","page_number":154,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"fef05a51-b552-44e5-8764-2dfb9a434b47","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":154,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"c88bb7e9-4947-44bc-a09e-cc54d1ebdd4e","block_type":"box","text":"redeem shares as set out above.","page_number":154,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"0d065a23-171a-42fd-8af3-c678664c9685","block_type":"box","text":"II-117","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e79f8229-597e-45ab-a994-c99022ca5138","block_type":"box","text":"NM1026U-5993100-154/236","page_number":154,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f2ce3202-4422-4ba5-ad55-a6abf028497a","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":155,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"93b4a722-c85d-4c33-a8ec-d1d4c6772609","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":155,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"f6625352-00be-48e9-83fe-82004852cdc3","block_type":"box","text":"reinvest all or a portion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":155,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"18b372b6-558d-49c9-9b93-373cb2451637","block_type":"box","text":"Shares of the same or another BlackRock fund without paying a front-end sales charge. This right may be exercised","page_number":155,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"8af92c03-ac6c-4b3a-b0e5-1317991f8c3f","block_type":"box","text":"within 90 days of the redemption, provided that the Investor A or Investor P Shares, as applicable, of that fund is","page_number":155,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"3f5ae7f8-2c26-48a9-b808-92020fdd8954","block_type":"box","text":"currently open to new investors or the shareholder has a current account in that closed fund. Shares will be","page_number":155,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"7bccee9c-c270-431e-87f0-17d4539a4dca","block_type":"box","text":"purchased at the NAV calculated at the close of trading on the day the request is received in good order. To exercise","page_number":155,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"23265f66-1dc1-45ce-bb71-4b9972375119","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":155,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"c1b6a9f6-2ec5-4cf8-91eb-03f71f6f5e2d","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":155,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"37e82671-0423-446a-8d7e-5e3b876ae2de","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":155,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"8032b3a1-7fb2-4fef-a2dd-447ce8f2fa5c","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":155,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"46008efc-2328-40eb-bb7c-74af1525e926","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":155,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"04f4bb60-b997-419a-86ea-14d21cdd7f49","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":155,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"18225bb2-bc7b-487f-9823-8b754e8345f8","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":155,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"e0c696ce-3a0a-47f2-8914-b312cedf83df","block_type":"box","text":"other financial intermediary. Certain of these services are available only to U.S. investors.","page_number":155,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"ea91ed85-fc78-4491-87da-1c8dd01ecd54","block_type":"box","text":"Investment Account","page_number":155,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"a9d45a21-cef0-47e0-8741-d12a63214985","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":155,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"012942df-c135-4611-8aa1-c6789d870066","block_type":"box","text":"least quarterly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":155,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"6ff21b37-40a6-4e42-8d94-b78eb3b884f8","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":155,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"0cac83d0-6232-453c-891c-7d2f192cca77","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":155,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"42f91602-36fe-40bd-b81a-42c359ccc0da","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":155,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"3def2bbe-b185-4c5c-a87a-d637987ce161","block_type":"box","text":"the Transfer Agent you may make additions to it at any time by mailing a check directly to the Transfer Agent. Each","page_number":155,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"ddeb0401-ff16-43c4-9cf7-f21a5c5fedcb","block_type":"box","text":"Fund limits purchases by personal check to $500,000 per trade. You may also maintain an account through a","page_number":155,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"63741b0f-25ed-41f9-8823-f9c648c028a9","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":155,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"d985b3c5-8577-4643-8be5-c7ce1cde6dc5","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":155,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"c50f5398-d274-42b7-99f3-513fc7e916cc","block_type":"box","text":"automatically at the Transfer Agent.","page_number":155,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"f125eb44-d233-4d4e-bd99-5dc57fd75039","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":155,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"e50c033b-109a-404d-b92b-1d464df47f37","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Certain","page_number":155,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"40999ca2-f5be-4c43-94d1-a0ebfe4d2303","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":155,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"590e0213-ee05-47a9-a3e1-4a8774a50eee","block_type":"box","text":"coordinated by the new firm. If you wish to transfer your shares to a securities dealer or other financial intermediary","page_number":155,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"98f1e42a-16be-4db2-ba37-2fa69403529d","block_type":"box","text":"that has not entered into an agreement with the Distributor, you must either (i) redeem your shares, paying any","page_number":155,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"27eaf2eb-8103-47ff-9c6d-b5afd1bec6b3","block_type":"box","text":"applicable CDSC or (ii) continue to maintain an Investment Account at the Transfer Agent for those shares. You also","page_number":155,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"7702daee-3c78-4c70-b0ed-fc4b2c756e8f","block_type":"box","text":"may request that the new securities dealer or other financial intermediary maintain the shares in an account at the","page_number":155,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"520cbd4a-d957-4ad7-835a-7720be3f2a34","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":155,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"0af3276a-9a36-4a5f-a74a-8ebfaa137e67","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":155,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"ce8297b6-b4d3-4ed9-b771-6f530d2118b1","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share certificates will","page_number":155,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"b28e49e6-7b30-4ab5-8288-e4c521b98c32","block_type":"box","text":"not be issued physically. Shares are maintained by each Fund on its register maintained by the Transfer Agent and","page_number":155,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"9be1f0ca-231c-4f25-8695-7472f6d03217","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if certificates had been","page_number":155,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"c2f32f7c-1c05-423a-81b3-99886dd7150c","block_type":"box","text":"issued.","page_number":155,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"4971fe3f-c66c-45c5-9a8a-f61256d15ec1","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":155,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"68086e4a-5be9-415e-b300-99b87af4a638","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":155,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"4262b7ed-42b2-477f-88f5-782e09db6856","block_type":"box","text":"that if the new firm will not take delivery of shares of the Fund, you must either redeem the shares (paying any","page_number":155,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"b39a5480-a994-4ba4-93fb-24e68d1a7b02","block_type":"box","text":"applicable CDSC) so that the cash proceeds can be transferred to the account at the new firm, or you must continue","page_number":155,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"b4f16709-aedd-4628-a4ac-f7d7894494e3","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":155,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"7f60a251-83bc-4872-bd27-abe3800a98a6","block_type":"box","text":"Exchange Privilege","page_number":155,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"04827471-e612-403a-b9a0-07456d07302d","block_type":"box","text":"U.S. shareholders of Investor A, Investor A1, Investor C, Investor P, Class K, Institutional and Class G Shares of","page_number":155,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"25f0d991-0d7d-4e6e-ac93-4260ec2af0e1","block_type":"box","text":"each Fund have an exchange privilege with certain other Funds. However, Investor A1 Shares may only exchange out.","page_number":155,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"322036e8-2cbc-42b5-9f75-58360362977b","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":155,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"a9e27f76-c2fb-4c67-a4d3-e58e1d464d0b","block_type":"box","text":"$1,000 if you already have an account in the Fund into which you are exchanging. You may only exchange into a","page_number":155,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"e8fef12e-2056-4ebf-82d2-421f06724aca","block_type":"box","text":"share class and a Fund that are open to new investors or in which you have a current account if the class or fund is","page_number":155,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"af2f7d1b-6d5c-46e4-a73b-95b135c175ef","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":155,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"ea04b9c9-0339-4272-84a9-d4aa564d71ee","block_type":"box","text":"II-118","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a36b5504-dcbd-4415-8876-42025f2d8803","block_type":"box","text":"NM1026U-5993100-155/236","page_number":155,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e7df1297-3de8-42de-901c-9a35dd116e34","block_type":"box","text":"into which you wish to make the exchange. Exercise of the exchange privilege is treated as a sale of the exchanged","page_number":156,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"cc91048b-bcba-4300-9c58-ba8e605385c4","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":156,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"c611b533-dcdb-45e5-98da-f4a8c9a4f80a","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":156,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"16e307a7-6592-439b-b6b5-91255c37483d","block_type":"box","text":"Institutional Shares","page_number":156,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"f7f21df7-1889-4bd4-afb4-5db26e9de631","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":156,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"44429f0e-32f1-4496-8eeb-007b34688703","block_type":"box","text":"Investor A Shares of other Funds to the extent such shares are offered by your financial intermediary. Investor P","page_number":156,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"f2f64c19-1c1d-4bcd-ac5c-20b885ff94ef","block_type":"box","text":"Shares are exchangeable for Investor P Shares of other Funds, to the extent such shares are offered by your financial","page_number":156,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"7a3449eb-ef7a-4d1c-b456-6a236692c271","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":156,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"9365ec3c-3886-45b3-bf24-d7b7fbadc3ce","block_type":"box","text":"for Class G Shares of other Funds.","page_number":156,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"73534e41-9919-439c-aab0-4e1e9809d0bd","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":156,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"47540aa3-83f7-4705-8c4a-fcb3ebe4d08b","block_type":"box","text":"market fund are effected on the basis of relative NAV per Institutional Share. Exchanges of Investor A or Investor A1","page_number":156,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"cbc94e36-dbc9-423f-9ffc-d8fcd06d763d","block_type":"box","text":"Shares outstanding (“outstanding Investor A Shares”) for Investor A Shares of a second fund, or for shares of a","page_number":156,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"3968a5d1-e010-4814-b225-2ee647eaccbe","block_type":"box","text":"money market fund (“new Investor A Shares”) are effected on the basis of relative NAV per share. Exchanges of","page_number":156,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"942910fe-8bc1-4129-b6aa-d9dc079bcd7b","block_type":"box","text":"Investor P Shares outstanding for Investor P Shares of a second fund are effected on the basis of relative NAV per","page_number":156,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"a3404eab-3ee2-49bc-bdf8-5c280d8c869f","block_type":"box","text":"share. Exchanges of Class K Shares outstanding for Class K Shares of a second fund, or for shares of a money","page_number":156,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"c5485b18-a4dd-465e-b29c-eda4dcc58f67","block_type":"box","text":"market fund are effected on the basis of relative NAV per share. Exchanges of Class G Shares outstanding for Class","page_number":156,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"b4178423-7e35-409d-adeb-a88a020d52df","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":156,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"354c428e-66de-475e-95a1-2d0f7cf3b72f","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":156,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"ebc9784a-b9b7-4e1c-b7c4-f5dd1463355f","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding (“outstanding","page_number":156,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"2bcf7e63-58fe-47e7-beda-85c367f3cc47","block_type":"box","text":"Investor C Shares”) may exchange their shares for Investor C Shares of a second Fund (“new Investor C Shares”) or","page_number":156,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"bf97c8e7-9398-44dd-83e4-adceb63d4a0e","block_type":"box","text":"for shares of a money market fund (“new money market fund Shares”) on the basis of relative NAV per share, without","page_number":156,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"7955c965-a0cd-4885-b8fb-d7da3b83b831","block_type":"box","text":"the payment of any CDSC. Certain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":156,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"10927308-42f4-4ccb-b1d8-465f0fee7dcc","block_type":"box","text":"upon redemption of new Investor C Shares or new money market fund Shares, as applicable, the time you held both","page_number":156,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"65836021-291f-4d59-8a02-0398e7b1a243","block_type":"box","text":"the exchanged Investor C Shares and the new Investor C Shares or new money market fund Shares will count","page_number":156,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"669ab40a-6cea-4a39-be54-76da4f236534","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":156,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"6035eeda-9a8e-4518-8206-073dbf1bbaa7","block_type":"box","text":"Exchanges of Service Shares.","page_number":156,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"380fb3bd-4ea6-4e48-84b9-0ac27c74c072","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":156,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"1f538f03-7101-4afd-b308-860272482912","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":156,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"0c510797-43a8-41ef-8521-318c9ac94199","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":156,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"ab5ba296-c0b2-464c-91d8-5d4abffb6619","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":156,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"d0dee2b5-0a31-4a6e-8188-b701f1aa3561","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":156,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"abc28541-98f9-4361-a830-2138ee9192d6","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":156,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"bf5da997-1416-4d8f-b193-7e50962072e4","block_type":"box","text":"classes of shares: exchanges of Investor A, Investor A1 and Institutional Shares of a Fund will receive Investor A","page_number":156,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"99816c17-f254-4493-a4ca-64854f37a07d","block_type":"box","text":"Shares of Summit and exchanges of Investor C Shares of a Fund will receive Investor C Shares of Summit. You may","page_number":156,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"35c76ade-31d4-43b6-a74a-8008bfb27773","block_type":"box","text":"exchange Investor A Shares of Summit back into Investor A or Institutional Shares of a Fund, if you are eligible to","page_number":156,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"5b28f391-3542-43d0-88e4-d394ebf80d01","block_type":"box","text":"hold such shares. You may exchange Investor C Shares of Summit back into Investor C Shares of a Fund and, in the","page_number":156,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"bd82df2f-bb2c-4bed-b0ec-6fa4666759d2","block_type":"box","text":"event of such an exchange, the period of time that you held Investor C Shares of Summit will count toward","page_number":156,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"c4f8d342-a49f-49c8-98a1-bdae5ad2b5ab","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":156,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"601dc9d4-b09b-4901-b966-f6b12e4f4a1d","block_type":"box","text":"subject to a distribution fee at an annual rate of 0.75% of average daily net assets of such Investor C Shares.","page_number":156,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"38a9fb7d-dd77-4e20-bcd0-726f0158e848","block_type":"box","text":"Exchanges of Investor C Shares of a money market fund other than Summit for Investor C Shares of a Fund will be","page_number":156,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"a39af1b9-1637-47a4-8fe9-3582d6c92f8a","block_type":"box","text":"exercised at NAV. However, a CDSC may be charged in connection with any subsequent redemption of the Investor C","page_number":156,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"490adfe5-a070-4533-9537-c25cc3dc5183","block_type":"box","text":"Shares of the Fund received in the exchange. In determining the holding period for calculating the CDSC payable on","page_number":156,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"af94aa11-d5c6-45f7-8118-9a1221088558","block_type":"box","text":"redemption of Investor C Shares of the Fund received in the exchange, the holding period of the money market fund","page_number":156,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"9108e4f7-c5fc-46a2-85ae-2913b0ba078e","block_type":"box","text":"Investor C Shares originally held will be added to the holding period of the Investor C Shares acquired through","page_number":156,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"1e048b98-eeb2-4a4b-b2b7-a5c6cc05e0a9","block_type":"box","text":"exchange.","page_number":156,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"4684710b-9d12-47d7-856d-e899eb166826","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":156,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"bf74d17b-5f1f-4635-87f2-3d0ec86875af","block_type":"box","text":"The exchange privilege may be modified with respect to certain","page_number":156,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"88df605c-22bf-48ca-b3c9-fd73b2adc154","block_type":"box","text":"participants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":156,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"f38ce088-538e-4fff-bd47-cc7effb32916","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":156,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"99523d1e-3f2d-400c-8c9a-297c0f4bb0b2","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":156,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"431dbc2d-abc1-406a-8376-bca98130645f","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":156,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"a36d6686-714c-4890-a054-168ef6d1b964","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":156,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"06627c65-fc16-476d-a979-206f70fb4442","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share certificates, you may","page_number":156,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"882de0bd-48f8-4a6b-a68e-8bc18d906272","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":156,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"7d05af90-c9cc-44c7-bb85-14ae3bc1686b","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":156,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"8c1651fe-113f-45fc-b738-dfbeb2508ca0","block_type":"box","text":"A shareholder who wishes to make an exchange may do so by sending a written request to the Fund c/o the","page_number":156,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"06e23044-5c97-4015-a7c0-0a31e1f65b4f","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":156,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"63e3c53f-40a1-49ab-b47e-11bf2b8628e2","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":156,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"c53406cf-0895-4554-ad4a-49dfce4ae2cd","block_type":"box","text":"Application that they do not wish to use this privilege. To add this feature to an existing account that previously did","page_number":156,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"fd7a0fbb-1f56-417d-bbd6-e9d7319ab25b","block_type":"box","text":"not provide this option, a Telephone Exchange Authorization Form must be filed with the Transfer Agent. This form is","page_number":156,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"1e5c567c-8a39-4b7a-a5b4-3f3ac7e1c705","block_type":"box","text":"II-119","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6afd258c-6d7e-4ffe-a5d5-d4a9c464e209","block_type":"box","text":"NM1026U-5993100-156/236","page_number":156,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5d19ff56-3e86-445f-b8c7-f9b429e74971","block_type":"box","text":"available from the Transfer Agent. Once this election has been made, the shareholder may simply contact the Fund by","page_number":157,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"2ca4e1e8-ad23-472e-9952-e285421b9656","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":157,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"b597a665-4b2c-475c-9c46-3fa3ebb7ed17","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":157,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"8211622e-fa7d-4c94-a0d6-574665ae0b02","block_type":"box","text":"Transfer Agent in writing.","page_number":157,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"5769a9c7-37db-4173-9f3d-5c5755086a2f","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being","page_number":157,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"6024b766-f3d0-4e6c-97ea-30459806f68c","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":157,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"a1119c4c-4c71-4fdc-8d3d-3be027260839","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":157,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"f71e4839-74bb-436a-a14b-6cd97167b7cd","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to participate in the","page_number":157,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"b7c75d3f-0bea-4e03-aff0-af2f27d531d7","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":157,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"a595d850-7b32-469b-bb64-2ef07ef2b94b","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":157,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"8cf3ecdf-ce17-4e75-93e7-f75535a89e60","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":157,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"d43717d4-1dc9-4d9c-8dba-f78527d391a9","block_type":"box","text":"must be legally available for sale in the state of the investor’s residence. For U.S. federal income tax purposes, a","page_number":157,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"32826570-6357-445b-8c50-182623765905","block_type":"box","text":"share exchange is a taxable event and, accordingly, a capital gain or loss may be realized. Before making an","page_number":157,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"4ed1485e-60b8-4a91-9580-8636ad83ce36","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":157,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"1f770435-dcc0-4a80-b72c-f7d6227e6e12","block_type":"box","text":"objective, policies and restrictions of the investment portfolio into which the shareholder is making an exchange.","page_number":157,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"e9d3218c-4f63-44c4-bad2-8620ba8dc7cf","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":157,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"b7a01e71-cc3b-4a27-9f1c-4eb172456ff2","block_type":"box","text":"The Funds reserve the right to suspend, modify or terminate the exchange privilege at any time. Notice will be","page_number":157,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"d2eb8583-0582-45fb-95a1-d2d5a87ef755","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":157,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"86bfe940-8d6d-42d8-908a-144e580dd698","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":157,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"1c304ec6-bc4a-4325-89f4-2f0d94dad9e1","block_type":"box","text":"amount or frequency, and to other restrictions that may be established from time to time to ensure that exchanges","page_number":157,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"552be08b-e61d-4448-9d3a-6e22b42f4565","block_type":"box","text":"do not operate to the disadvantage of any portfolio or its shareholders.","page_number":157,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"7b60ae93-2986-40b6-ab0a-ac7dbee293e1","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":157,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"29fdfd8d-e338-448b-9dd2-0bd8e7b65662","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":157,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"f5c090ff-1ce1-49e0-beea-138439e53428","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":157,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"13ec9769-b827-42e2-8708-a59f9fb2178e","block_type":"box","text":"such procedures. By use of the exchange privilege, the investor authorizes the Fund’s Transfer Agent to act on","page_number":157,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"848564ee-b660-4810-8956-22f9d0887896","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":157,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"bb06ca36-2170-4534-85aa-8df23423f15e","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent pertaining to such instructions are","page_number":157,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"3d383c5b-2f91-45a0-8566-e63c9a776237","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":157,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"321d5a96-010d-4944-9358-2fde1cd875a8","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":157,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"6de73dcb-b466-4d46-bd45-98fe5f5ba1fb","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":157,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"ace26c09-079c-4e08-a79d-63cd1dfec366","block_type":"box","text":"Certain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":157,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"26d28954-0944-456a-ae73-dd81c9bc7501","block_type":"box","text":"such offering from time to time. The exchange privilege is available only to U.S. shareholders in states where the","page_number":157,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"f1ccc91d-9778-4fd3-ad24-a88fbd56ef7f","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":157,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"800401af-70e7-48f7-8179-7ba101418744","block_type":"box","text":"may be distributed by the Distributor.","page_number":157,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"95f7ea4e-a989-43e5-b258-d0d3df3c11dc","block_type":"box","text":"Participation in Fee-Based Programs","page_number":157,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"2980387e-ab88-4fa0-bafe-c2f7dcc2864b","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":157,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"bf7f0efa-3c10-4e02-8d3b-ea52b7654af8","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in certain fee-based","page_number":157,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"5ccfb514-7bfa-418e-808b-1cbcbc5d1a27","block_type":"box","text":"programs in which BlackRock participates, you may be able to buy Institutional Shares, including by exchanges from","page_number":157,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"2018ed9c-1ecb-418f-bc1b-c569fbfdcd3e","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under certain","page_number":157,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"e0f5c0d8-208e-4878-b218-d02f988c3aac","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":157,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"bd37b068-45e0-4cc1-a2a7-5c772f316453","block_type":"box","text":"if you choose to leave the fee-based program, you may have to redeem your shares held through the program and","page_number":157,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"a6dcff83-d5b6-418f-bf9f-8dc9ebf21baf","block_type":"box","text":"purchase shares of another class, which may be subject to distribution and service fees. This may be a taxable event","page_number":157,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"8ed8aef0-1220-4434-a648-2944831c4f66","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":157,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"167e969a-aaa0-4ce1-af4f-d319fd5fd945","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":157,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"77cf79e4-5c9c-46de-a2c8-b5743a608afe","block_type":"box","text":"Generally, upon termination of a fee-based program, the shares may be liquidated or the shares can be held in","page_number":157,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"da6aa5be-4b22-44bf-b680-70079d08173a","block_type":"box","text":"an account. In certain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":157,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"777fd803-8967-40a4-98c3-86ff0a2edfb5","block_type":"box","text":"class was held in the program can be held after termination. Shares that have been held for less than specified","page_number":157,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"0e51b499-75af-4a88-b69a-d54782204e32","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":157,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"7706fb86-f26b-4dc6-8801-fd6273d0731e","block_type":"box","text":"Institutional Shares in the program may be eligible to purchase additional shares of the respective share class of a","page_number":157,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"0964ec9c-3ad4-4152-b48e-99f0c57544b8","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":157,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"8ba0a009-19ca-4352-9d87-f9932cd9ad3a","block_type":"box","text":"Institutional Shares are permitted only if you have an existing position at the time of purchase or are otherwise","page_number":157,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"97e35331-1ad3-4de4-85b1-9c40a3e106cc","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":157,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"64bb3f53-80b5-4d4f-8ee3-2a8de9d47a22","block_type":"box","text":"II-120","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2bdae98c-80e3-49d3-81d1-5da72d21a513","block_type":"box","text":"NM1026U-5993100-157/236","page_number":157,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3084254b-2d2b-4b50-96b6-697b131ad3e7","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":158,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"9b53bf9d-7dd6-4c55-87c4-743c139bd914","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":158,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"eaa11b62-6c5b-4113-b999-dcb1fbf3dde7","block_type":"box","text":"intermediary’s policies and procedures, exchange the share class held in the program for another share class of the","page_number":158,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"6c5b9322-55b4-467f-8454-5364e22223ab","block_type":"box","text":"same fund, provided that the exchanged shares are not subject to a sales charge and the shareholder meets the","page_number":158,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"d3f54f50-8416-4084-a574-c971006e88da","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":158,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"3ad4e72b-f552-497b-ad89-399b3eb42675","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":158,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"521f9ea1-7368-4276-bb6a-7cf846307563","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":158,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"61a111fb-5022-44ce-ac5f-e3ca53e4d21a","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":158,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"0d105443-9dbc-43f6-86ea-3cffb44ce910","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":158,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"548aeded-7c8b-4ac8-ab54-9213e1651d32","block_type":"box","text":"information.","page_number":158,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"e4f90650-1c6e-4cc2-9e80-835447aceaed","block_type":"box","text":"Retirement and Education Savings Plans","page_number":158,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"1db7786c-9830-4f8c-acfe-0900fe26be75","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":158,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"e383b574-5427-4637-a7de-c69a7a7ddb86","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and certain of","page_number":158,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"9b372e17-9916-4cf5-bdd4-37fd905369e0","block_type":"box","text":"the other mutual funds sponsored by the Manager or its affiliates as well as in other securities. There may be fees","page_number":158,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"ed80ab9d-38d8-45a1-9059-9547fdf8ee94","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":158,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"865c67d3-2302-4d98-9858-27e808079fde","block_type":"box","text":"your financial intermediary.","page_number":158,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"f5f927e2-272c-44e2-9ea2-81b31ac7e48a","block_type":"box","text":"Dividends received in each of the plans referred to above are exempt from U.S. federal taxation until distributed","page_number":158,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"78ee0dbd-6a4d-4f14-b3af-24231271a9bc","block_type":"box","text":"from the plans and, in the case of Roth IRAs and education savings plans, may be exempt from taxation when","page_number":158,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"102ef5b1-5631-4a14-84eb-d27cb5384470","block_type":"box","text":"distributed as well. Investors considering participation in any retirement or education savings plan should review","page_number":158,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"3c019bed-ca3c-4cb4-98cf-0130b5f2d8f2","block_type":"box","text":"specific tax laws relating to the plan and should consult their attorneys or tax advisors with respect to the","page_number":158,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"d61376d0-b6ee-4104-bc0d-ec144615029a","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":158,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"829aa7ea-8eb4-436d-a0b6-9bf4a0d60303","block_type":"box","text":"Automatic Investment Plans","page_number":158,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"8c1338db-e3d8-4641-9d5c-f477fb283bde","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the Compass","page_number":158,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"f1aeb395-e88d-441e-bee3-da6712ed7d9a","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":158,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"c7fdd234-3073-42a1-b2bb-8f2de0431fb4","block_type":"box","text":"®","page_number":158,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"ac3e5a1e-2bf1-45cf-abd4-e074bda25fe0","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":158,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"c7c8ff59-ecd6-40bb-a323-01647c86ced3","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":158,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"2b34686c-c530-4c4a-8ce6-9fb12a8c3fbc","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through certain accounts, no minimum charge to","page_number":158,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"d5ea71cb-ecfc-483e-9cf9-58f5713ac231","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":158,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"c5317c3e-b720-4a26-ba0c-154ddd1c40f1","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":158,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"8f5d8941-22cd-43fc-8dae-56cefb8bb608","block_type":"box","text":"Each Fund will distribute substantially all of its net investment income and net realized capital gains, if any, to","page_number":158,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"3b355264-834a-41e5-adf2-c162757e9436","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":158,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"dd6067a4-b125-4afc-8f79-84882f7c09f3","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set forth in a","page_number":158,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"38865805-242d-4793-8fbf-ef199312dc84","block_type":"box","text":"Fund’s prospectus. Such election, or any revocation thereof, must be made in writing to the Transfer Agent, and will","page_number":158,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"690af0e3-1b67-4e8d-a640-997aa37772a0","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":158,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"c1bc91dc-08e6-4e12-b1b6-eb2a1a62ba1f","block_type":"box","text":"Systematic Withdrawal Plans","page_number":158,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"c4c95959-71be-476b-9a2b-0209fd83ad80","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":158,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"8f42a2ab-37e6-4c53-b3cd-bd3ff3167112","block_type":"box","text":"Upon commencement of the SWP, the account must have a current value of $10,000 or more in a Fund.","page_number":158,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"bef08002-6b07-40f3-ae79-dd7c39c48fda","block_type":"box","text":"Shareholders may elect to receive automatic cash payments of $50 or more at any interval. You may choose any day","page_number":158,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"772a03fa-513c-44b5-8d51-b8319c1ee245","block_type":"box","text":"for the withdrawal. If no day is specified, the withdrawals will be processed on the 25th day of the month or, if such","page_number":158,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"e131bbf5-4c6b-4755-a3c3-9a983662b9cd","block_type":"box","text":"day is not a business day, on the prior business day and are paid promptly thereafter. An investor may utilize the SWP","page_number":158,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"db26da62-28a0-4276-8897-27b46aeab604","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":158,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"1c00decf-28d8-4922-a117-e7667d2f70de","block_type":"box","text":"www.blackrock.com.","page_number":158,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"e3a283cf-cbc9-4c9f-a1ff-3537d7d69c92","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":158,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"8027941a-e90b-438b-b9ed-8307a0919248","block_type":"box","text":"will be depleted. To participate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":158,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"93b4bb37-305c-41ae-b9db-6b9d1a04527e","block_type":"box","text":"Shareholders may change or cancel the SWP at any time, upon written notice to the Fund, or by calling the Fund at","page_number":158,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"d1b272b6-3df2-4dfd-872d-c712faad3a1f","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":158,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"3f5920e9-04a0-48dc-b0a3-87e7f22dfaee","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":158,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"a4527cac-f08a-47fe-b467-4c01a80df452","block_type":"box","text":"CDSC will be assessed on redemptions of Investor C Shares made through the SWP that do not exceed 12% of the","page_number":158,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"d36c1785-cda6-410a-adde-244291eefe59","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP redemptions of","page_number":158,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"09a6081b-2b48-4669-ac96-35203e5a815b","block_type":"box","text":"II-121","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a2c59871-95fa-413b-b6e5-66d4bc8337f4","block_type":"box","text":"NM1026U-5993100-158/236","page_number":158,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7adc2810-1586-4397-8d44-af9bc756213b","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quarterly) and 6% (semi","page_number":159,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"ecee6bc2-6a6b-4eab-8718-5bb756a34b0f","block_type":"box","text":"annually), respectively, of an account’s NAV on the redemption date. SWP redemptions of Investor C Shares in excess","page_number":159,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"ab845cdd-05c7-4402-870e-99695db6fdbd","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":159,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"b91d6abc-113f-4699-b5c5-effa59934ddd","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above (see “How","page_number":159,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"5a751a81-d755-4525-88a4-e68a0795e1d0","block_type":"box","text":"to Buy, Sell, Exchange and Transfer Shares” or “How to Buy, Sell and Exchange Shares,” as applicable, in the Fund’s","page_number":159,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"4b82ca46-fc31-4354-9953-f4852ced61a2","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":159,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"fefe1089-5c71-42c7-b936-981703d87c91","block_type":"box","text":"Dividend Allocation Plan","page_number":159,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"d2cf11d5-0b56-4a51-ace5-7d081344e773","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":159,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"ffd3796e-5a78-495a-add8-f825eaee7c95","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":159,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"e1c924a7-e79e-4dd4-b134-baed4f79f8f5","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":159,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"f4656fac-2847-4bb9-bc28-3a7012dd6e69","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":159,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"890094c3-ba4d-4ba6-8690-960ca609d493","block_type":"box","text":"PRICING OF SHARES","page_number":159,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"3ffe359e-6182-4f56-91bc-c2aba4a8e1bd","block_type":"box","text":"Determination of Net Asset Value","page_number":159,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"88ada61c-9572-42e5-9dd1-e4d583ad4ec3","block_type":"box","text":"Valuation of Shares.","page_number":159,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"f4b3633d-d690-4baa-a59c-1611da3a3636","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":159,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"2d5a5835-9ca2-473e-9afe-129fb84696c0","block_type":"box","text":"regular trading hours on the NYSE (currently 4:00 p.m. Eastern Time) on each business day the NYSE is open.","page_number":159,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"05182f84-fa64-4589-9acb-5f42a7eaadb5","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":159,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"c5ddad71-80a2-4dfa-9205-64a085dcf055","block_type":"box","text":"Equity Investments.","page_number":159,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"2d91965e-c99e-439e-aca9-937e2893c479","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":159,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"11e9d61d-25f4-4fbe-8d7d-d3fe8bede826","block_type":"box","text":"e.g.","page_number":159,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"76a0f79d-e591-473b-95bb-e0b739267e04","block_type":"box","text":", NYSE), on separate","page_number":159,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"f586bc83-1647-4543-a86a-f763fdcdca64","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":159,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"27b8e829-7e2a-42f7-b7b4-9e5a840b4abe","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":159,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"dd6cfbb4-aac9-4a18-be9f-e30eb5929af2","block_type":"box","text":"generally at the Exchange closing price or if an Exchange closing price is not available, the last traded price on that","page_number":159,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"9aee5aad-e106-445d-a642-8e64d0296aa7","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under certain circumstances,","page_number":159,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"0f505aaf-76a7-44e3-8367-fd6c213d1233","block_type":"box","text":"other means of determining current market value may be used. If an equity security is traded on more than one","page_number":159,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"77308275-ac78-45cc-b2cc-8add6e47dd0b","block_type":"box","text":"Exchange, the current market value of the security where it is primarily traded generally will be used. In the event that","page_number":159,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"15ec568d-306a-41a6-a854-637b87d4621b","block_type":"box","text":"there are no sales involving an equity security held by a Fund on a day on which the Fund values such security, the","page_number":159,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"95e8debc-3ba6-41ff-b409-e3bc248d3f87","block_type":"box","text":"last bid (long positions) or ask (short positions) price, if available, will be used as the value of such security. If a Fund","page_number":159,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"bf98a055-8853-40d2-9b99-c3d3a4a3a289","block_type":"box","text":"holds both long and short positions in the same security, the last bid price will be applied to securities held long and","page_number":159,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"7275479e-c52d-4bdc-837f-57a6635a026d","block_type":"box","text":"the last ask price will be applied to securities sold short. If no bid or ask price is available on a day on which a Fund","page_number":159,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"c2d27a3a-a928-46cb-afc2-5c3ee854683e","block_type":"box","text":"values such security, the prior day’s price will be used, unless BlackRock determines that such prior day’s price no","page_number":159,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"aba9a0c6-e70a-40b5-acc6-e29c7aa505d5","block_type":"box","text":"longer reflects the fair value of the security, in which case such asset would be treated as a Fair Value Asset (as","page_number":159,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"c99777a3-a75d-4a43-9057-21b3b5c7753b","block_type":"box","text":"defined below).","page_number":159,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"d242f5ec-f983-4693-8f2f-7c600404ae64","block_type":"box","text":"Fixed-Income Investments.","page_number":159,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"017b304b-e24c-4beb-a78b-3c45dcdbd779","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":159,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"22499544-870e-4206-ba55-e930525b4927","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services, each in","page_number":159,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"189319e3-095e-487e-8fb7-349390b40aa5","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize certain inputs","page_number":159,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"ab6d660a-9f99-4246-ad27-b1d6860f2978","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":159,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"ad8971dc-f350-42c8-9e88-dca00f0d3b3b","block_type":"box","text":"e.g.","page_number":159,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"958e7411-e31d-40b2-a58d-ba007e7cb4c8","block_type":"box","text":", recent representative bids and offers), credit","page_number":159,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"e2a596da-5780-4274-9c9d-c202e30b4fa5","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":159,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"29e857d2-9b05-48cf-b63e-ca4851d783d7","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":159,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"facfe9d9-c4d9-402c-80fe-eb94e9875b5f","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":159,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"33f44bab-e85a-44bf-9a37-4a6a334d8238","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":159,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"e00a46b8-a810-4298-bbb6-f7a16453101b","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain asset","page_number":159,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"3dbf9719-4834-4452-9155-b2fdd06f6f67","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":159,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"54f26716-75cd-4bf3-8b8b-b447c20d5b85","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amortized cost method of valuation may be used with","page_number":159,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"3fe2689f-a356-49e5-97ef-b02956600ae1","block_type":"box","text":"respect to debt obligations with 60 days or less remaining to maturity unless such method does not represent fair","page_number":159,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"7b7bc5af-216a-4791-bed1-16d04ef7a290","block_type":"box","text":"value. Certain fixed-income investments, including asset-backed and mortgage related securities, may be valued","page_number":159,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"c1ae91a0-28d0-4690-ab69-20fb764aca1c","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":159,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"e747f620-772f-4e4a-a0d7-001d9e2cc9ea","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":159,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"3ea631a4-93f8-4f0c-b597-e95e15dc3830","block_type":"box","text":"attributes of the tranche.","page_number":159,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"cfeeea87-b73e-428c-897b-b5bc819cd5d2","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":159,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"9a5d6332-bba2-4685-8f5f-34830fb315b7","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":159,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"0e2ae2f6-4f2c-4047-9663-a52beef1c5db","block_type":"box","text":"index options or those that are customized) for which market quotations are readily available are valued at the mean","page_number":159,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"2e5e6f35-6990-43f4-a9cd-e82c62afbc39","block_type":"box","text":"of the last bid and ask prices as quoted on the Exchange or the board of trade on which such options are traded. In","page_number":159,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"06199275-26ed-4647-a6d8-3b15677056be","block_type":"box","text":"the event that there is no mean price available for an exchange-traded equity option held by a Fund on a day on which","page_number":159,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"af2abe65-a910-4708-8d33-d8cc065ea7b3","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (short positions) price, if available, will be used as","page_number":159,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"bd0a795a-6e18-4aac-83ed-ab6d7731fba3","block_type":"box","text":"the value of such option. If no bid or ask price is available on a day on which a Fund values such option, the prior","page_number":159,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"dfb4ed1a-757a-4f10-9e37-c8df91ae25b3","block_type":"box","text":"II-122","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6b835c88-e042-49ef-a089-f1e863231718","block_type":"box","text":"NM1026U-5993100-159/236","page_number":159,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d893d484-a56f-4bca-8aac-116a82bebb15","block_type":"box","text":"day’s price will be used, unless BlackRock determines that such prior day’s price no longer reflects the fair value of","page_number":160,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"fcae5967-c685-4aee-a443-906bf6dcea31","block_type":"box","text":"the option, in which case such option will be treated as a Fair Value Asset. Customized exchange-traded equity","page_number":160,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"edcebd23-a8d0-45ea-8106-6ccd7df6d334","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":160,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"b0e79247-8967-40ba-a78a-77e8808a181c","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":160,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"66a6b966-6fe4-4f7e-bbb4-386703932ed9","block_type":"box","text":"on exchanges, are valued at their last sale price or settle price as of the close of such exchanges. Swap agreements","page_number":160,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"f23f20f7-eb74-4f3e-81ed-3372f0406bf1","block_type":"box","text":"and other derivatives are generally valued daily based upon quotations from market makers or by a pricing service in","page_number":160,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"a9446d3e-69a2-4241-81ee-6b22a3f7ced3","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":160,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"436faca3-a7e7-4330-8ebf-c24596eaee9e","block_type":"box","text":"Underlying Funds.","page_number":160,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"a9e3de9e-8942-480b-b619-9ce067054eef","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":160,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"e6438284-3f05-4039-bfec-16139d011d5f","block_type":"box","text":"market funds) are valued at NAV. Shares of underlying exchange-traded closed-end funds or other ETFs will be valued","page_number":160,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"08c87b6a-3f89-47c9-969e-7bb95140981c","block_type":"box","text":"at their most recent closing price.","page_number":160,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"85b7128c-b677-4e0c-a757-c57a89a5c797","block_type":"box","text":"General Valuation Information.","page_number":160,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"897565b1-1e78-4328-b0f1-67ffe7cd3711","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker-dealers or","page_number":160,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"2fc7ccec-595d-4582-9849-4a4edd9fd6e3","block_type":"box","text":"market makers to value each Fund’s securities and other assets and liabilities are based on information available at","page_number":160,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"f6d116ec-0932-4034-8c3b-d05fbe130d5c","block_type":"box","text":"the time the Fund values its assets and liabilities. In the event that a pricing service quotation is revised or updated","page_number":160,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"8d30b465-a87d-43c5-ae27-25d6fba21a12","block_type":"box","text":"subsequent to the day on which the Fund valued such security, the revised pricing service quotation generally will be","page_number":160,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"d5661ec9-ceb3-4e55-837c-9211e2bc97b0","block_type":"box","text":"applied prospectively. Such determination will be made considering pertinent facts and circumstances surrounding","page_number":160,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"acfea32c-446b-467e-aa2f-81d76496a23f","block_type":"box","text":"the revision.","page_number":160,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"04a26fe2-2610-4763-a26b-dabd37afdb8d","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third-party pricing","page_number":160,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"cacd2b80-e6b4-4a48-bd55-15e40405b00a","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":160,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"c8661e4a-d00d-4408-a2b0-1e53cd06f4bc","block_type":"box","text":"matrices, yield curves and other specified inputs and assumptions. This may result in the assets being valued at a","page_number":160,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"d606f3c7-a55b-45c3-8637-795456495711","block_type":"box","text":"price different from the price that would have been determined had the evaluated pricing method not been used. The","page_number":160,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"a3fca5d0-84fa-410a-a980-f1b2bbdcc59c","block_type":"box","text":"price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation","page_number":160,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"0606b273-a9a8-432e-8132-611dfef0fb06","block_type":"box","text":"of the investment, particularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":160,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"5301d8be-918a-4e51-9686-259a98c65b51","block_type":"box","text":"methodology or a price provided by an independent pricing service. As a result, the price received upon the sale of an","page_number":160,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"0e302832-a076-4441-90f8-6a52dd1df8e0","block_type":"box","text":"investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss","page_number":160,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"13a2da91-7d41-46ee-bf6e-5008ecbce426","block_type":"box","text":"or lesser than expected gain upon the sale of the investment. The Fund’s ability to value its investment may also be","page_number":160,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"9669701c-6f5a-4712-b296-5e57bc718496","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-party service providers.","page_number":160,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"7b84918d-3f96-4817-8552-039fd71f50ff","block_type":"box","text":"In the event that application of the methods of valuation discussed above result in a price for a security which is","page_number":160,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"29775cc7-fe5e-4170-a630-6fb581dbb7a5","block_type":"box","text":"deemed not to be representative of the fair market value of such security, the security will be valued by, under the","page_number":160,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"e68382d3-34ef-40e4-bedc-89efe5854e8f","block_type":"box","text":"direction of or in accordance with a method approved by BlackRock, the Fund’s valuation designee, as reflecting fair","page_number":160,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"93cbe410-67f8-4d9c-a7fa-22629d28f9db","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":160,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"7d593c7d-8fc1-4877-bc2d-2a91e202b91a","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":160,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"1ddb95c2-eef4-464a-8e85-4cf1fe30ba80","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":160,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"bf03b510-fb55-4d91-af8e-b782cc0bf8f9","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":160,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"8b6abab1-2bd7-42e6-afc2-d9d149f7f5cc","block_type":"box","text":"Certain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":160,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"87f834dd-07a9-4a49-8aee-3c114e97c279","block_type":"box","text":"which a Fund’s NAV is not calculated. In such cases, the NAV of a Fund’s shares may be significantly affected on","page_number":160,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"10f61445-a125-4e4a-ba9e-c1c5be3c7d7e","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":160,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"30c3ba5d-608c-4e6e-a495-82bdffc807f9","block_type":"box","text":"Fair Value.","page_number":160,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"2f84dd78-c3ba-4b06-8cf5-c85f055b9604","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":160,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"49f55e53-79d9-4657-8560-0a3287297791","block_type":"box","text":"Fund’s investments are valued at fair value (“Fair Value Assets”). Fair Value Assets are valued by BlackRock in","page_number":160,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"c3745282-c7b0-47b3-bb7d-0707b1031fde","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":160,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"fecc5b7d-7de7-4f3e-9bfe-3909e70328af","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":160,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"6f45e504-3d9a-4673-bcf9-83f62bf26bd9","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":160,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"1944699d-7bac-46dc-85ab-44d365a7b6d4","block_type":"box","text":"unreliable if, among other things, a security or other asset or liability does not have a price source due to its","page_number":160,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"33b072b4-5728-4d73-af9e-b3d47bb50bbd","block_type":"box","text":"complete lack of trading, if BlackRock believes a market quotation from a broker-dealer or other source is unreliable","page_number":160,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"9dae49b4-28b7-44d8-8327-02397d3db7cf","block_type":"box","text":"(","page_number":160,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"980681ce-a90d-4228-908c-85000a4facea","block_type":"box","text":"e.g.","page_number":160,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"18cc00a0-153d-4e01-a3a4-3a34672bc260","block_type":"box","text":", where it varies significantly from a recent trade, or no longer reflects the fair value of the security or other asset","page_number":160,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"dc99c68d-3b24-45fe-a958-63d49a57046b","block_type":"box","text":"or liability subsequent to the most recent market quotation), or where the security or other asset or liability is only","page_number":160,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"b31f1b0e-cc4f-4cbc-9f61-336025ad085a","block_type":"box","text":"thinly traded or due to the occurrence of a significant event subsequent to the most recent market quotation. For this","page_number":160,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"679df7b1-36cc-4626-8385-cd3d0685936d","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":160,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"c2b47ae7-a1ab-46e6-921e-7d74d55df036","block_type":"box","text":"an event has occurred after the close of trading for an asset or liability but prior to or at the time of pricing a Fund’s","page_number":160,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"8c5f5c78-a822-45ca-8e10-c5da60044fea","block_type":"box","text":"assets or liabilities, is likely to cause a material change to the last exchange closing price or closing market price of","page_number":160,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"16a2f474-28f0-4b8b-a5e3-b0dd99683677","block_type":"box","text":"one or more assets held by, or liabilities of, the Fund. On any day the NYSE is open and a foreign market or the","page_number":160,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"4d6756c2-8aa9-4d48-b6f1-4d08c79fbcbf","block_type":"box","text":"primary exchange on which a foreign asset or liability is traded is closed, such asset or liability will be valued using","page_number":160,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"c0500873-22f7-49b6-9a18-2ef57ced3e09","block_type":"box","text":"the prior day’s price, provided that BlackRock is not aware of any significant event or other information that would","page_number":160,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"943d1ed7-65a9-4d3d-a71d-0ef2fce6e032","block_type":"box","text":"cause such price to no longer reflect the fair value of the asset or liability, in which case such asset or liability would","page_number":160,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"9348b34c-a345-45af-b158-9a52efffbec3","block_type":"box","text":"be treated as a Fair Value Asset. For certain foreign assets, a third-party vendor supplies evaluated, systematic fair","page_number":160,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"cea71cd1-f880-4fcd-9338-d875de2254b4","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":160,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"1fad0b86-5ac5-4f90-8fb3-aa834169e187","block_type":"box","text":"II-123","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0ea26c3d-db1c-406b-b370-b1f2999b7fca","block_type":"box","text":"NM1026U-5993100-160/236","page_number":160,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3d87fd08-6131-48a4-9d7d-0b4c9e7e4be0","block_type":"box","text":"closed. This systematic fair value pricing methodology is designed to correlate the prices of foreign assets in one or","page_number":161,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"9e7067b5-30b4-42e4-828f-8f3878f19d01","block_type":"box","text":"more non-U.S. markets following the close of the local markets to the prices that might have prevailed as of a Fund’s","page_number":161,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"652aee75-8619-4faf-ba7a-fb446cd9db36","block_type":"box","text":"pricing time.","page_number":161,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"c6277406-219e-4a0d-83f2-5f035b4164e8","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":161,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"dd1d1b97-4647-4454-84fb-c22bd1618ff4","block_type":"box","text":"and significant inputs used in the fair valuation of Fund assets or liabilities. In addition, the Funds’ accounting agent","page_number":161,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"6fdf9578-9b83-4c60-b547-3fba2fac8e49","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-party pricing services,","page_number":161,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"9181cff9-f48c-4a64-8094-d50112086736","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":161,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"ff035e73-a5d5-40fd-af1d-f3c6da253daa","block_type":"box","text":"assets and liabilities of the Funds.","page_number":161,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"0aaae9b1-0fe5-4005-9736-2a7b8c96bb93","block_type":"box","text":"When determining the price for a Fair Value Asset, BlackRock will seek to determine the price that a Fund might","page_number":161,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"a8dd3eb4-5c28-47da-8f3c-01da5feedff4","block_type":"box","text":"reasonably expect to receive from the current sale of that asset or liability in an arm’s-length transaction on the date","page_number":161,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"165035cb-9612-4c18-97fb-c29e7a215da5","block_type":"box","text":"on which the asset or liability is being valued, and does not seek to determine the price a Fund might reasonably","page_number":161,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"76fc451c-1c60-4bc3-89e0-9aeb33033df8","block_type":"box","text":"expect to receive for selling an asset or liability at a later time or if it holds the asset or liability to maturity. Fair value","page_number":161,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"f59bc8eb-eede-4023-8a2d-92d060898ee0","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":161,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"7ae452a1-43fd-4625-9dd2-dc4adfcbb773","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-party","page_number":161,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"34796fdb-820f-4d82-98b8-a145c2b4d6a2","block_type":"box","text":"valuation models.","page_number":161,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"734dae9f-7115-47dc-bcb8-cf0779fba413","block_type":"box","text":"Fair value represents a good faith approximation of the value of an asset or liability. When determining the fair","page_number":161,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"1add71ac-2d7f-45b0-a804-09f30c55e6dc","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on certain factors, including","page_number":161,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"2e035e81-61ed-47d1-88c7-d2955998bed1","block_type":"box","text":"the asset type). For example, the investment may be initially priced based on the original cost of the investment or,","page_number":161,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"6323108f-3148-4e57-baad-15d9e866af72","block_type":"box","text":"alternatively, using proprietary or third-party models that may rely upon one or more unobservable inputs. Prices of","page_number":161,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"ad94cb86-36d0-4f53-944b-1ab202ad42db","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":161,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"8f8f0b3c-12f5-43cc-9697-b0331be72f80","block_type":"box","text":"appropriate, an appraisal by a third-party experienced in the valuation of similar instruments, may also be used as a","page_number":161,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"007a08d1-200c-4d17-bec3-a8d8b4bec37e","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":161,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"ca26e74e-bd9c-4acf-844d-650a983cb624","block_type":"box","text":"The fair value of one or more assets or liabilities may not, in retrospect, be the price at which those assets or","page_number":161,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"55dc38c7-f740-43c3-ae89-02c91f68e430","block_type":"box","text":"liabilities could have been sold during the period in which the particular fair values were used in determining a Fund’s","page_number":161,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"1bc74e77-3412-4f6a-bfb6-0574dcb394d9","block_type":"box","text":"NAV. As a result, a Fund’s sale or redemption of its shares at NAV, at a time when a holding or holdings are valued at","page_number":161,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"fb5d250c-dfed-43bc-a516-5a25c42d2d7c","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":161,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"3ca454c4-ab20-4ac0-b10b-97d1f70fba3b","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":161,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"53fb4b89-91d4-442c-b0bc-3fb3a6d0f32f","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set forth in","page_number":161,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"22931adf-8d0b-4ff9-b5d9-e8f7d0e11184","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":161,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"6c51507c-35d6-4b5e-a91b-37232e20b3ba","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":161,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"828a9267-c874-4c6e-a5aa-97980ce71043","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":161,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"381b5519-6a89-417e-a9dd-505668070a79","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":161,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"4684bb53-b503-4e9d-a03b-86c64371e79b","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":161,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"c0500195-c67a-4bc4-a867-4776b0d93db2","block_type":"box","text":"of the fair market value of assets or liabilities, to the extent such rules become more stringent, would tend to","page_number":161,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"0d0a6fd8-71b9-43a9-a4b9-617bc38ff9b2","block_type":"box","text":"increase the cost and/or reduce the availability of third-party determinations of fair market value. This may in turn","page_number":161,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"5fa4741d-1eb0-4c93-b05e-8220bd438a88","block_type":"box","text":"increase the costs associated with selling assets or affect their liquidity due to a Fund’s inability to obtain a third","page_number":161,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"71ce5922-4002-41e1-b725-ee8c9c6c3652","block_type":"box","text":"party determination of fair market value.","page_number":161,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"b97d10c3-74a8-4e1c-a74f-11135e5f2505","block_type":"box","text":"Computation of Offering Price Per Share","page_number":161,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"95d5bf09-dfd1-4915-947e-d50ad945d28c","block_type":"box","text":"See “Computation of Offering Price Per Share” in Part I of a Fund’s SAI for an illustration of the computation of","page_number":161,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"8951af24-9397-490c-8996-e6dbbbd35e4b","block_type":"box","text":"the offering price for shares of your Fund.","page_number":161,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"b3963db0-b43e-4905-8981-17c8118e2362","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":161,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"0a354d47-62c7-45fb-a8cf-461370ffec8c","block_type":"box","text":"Transactions in Portfolio Securities","page_number":161,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"c406ae05-4a48-4e67-bba2-3020cb516b33","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":161,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"150ba352-c575-4ae5-b829-6a07a95fa268","block_type":"box","text":"a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":161,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"7c0a5c28-295e-437d-80d5-d1367bd2dbd3","block_type":"box","text":"particular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account certain factors","page_number":161,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"628cecf4-6c8a-4c3a-87a3-c530628f6234","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":161,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"25f506fb-e98f-472a-a26f-d0e8006d1542","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":161,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"5013bd59-fc81-4ec7-a8e3-43240284db0e","block_type":"box","text":"consistent with obtaining the best price and execution in particular transactions. Subject to applicable legal","page_number":161,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"cdf11d4b-dddd-44aa-9737-ca81d662f9d4","block_type":"box","text":"requirements, BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":161,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"2d8d29e3-708e-4a1c-8eb1-e000d2501cd3","block_type":"box","text":"BlackRock and its clients, including a Fund. In return for such services, BlackRock may cause a Fund to pay a higher","page_number":161,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"666442ce-92f2-44f4-a72b-28db1325ee23","block_type":"box","text":"II-124","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8d0d38eb-fd6e-4f92-b84d-47c4ee76bc2b","block_type":"box","text":"NM1026U-5993100-161/236","page_number":161,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6bbd29c0-3d76-420f-a8ca-eee581d4433b","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":162,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"0b045c92-a939-4eef-8513-f44de6b3d6ed","block_type":"box","text":"reasonable in relation to the services provided.","page_number":162,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"e9d8a83f-1887-4ef2-a0e1-d28d0bb4860e","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":162,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"9a2dc06b-8595-4c54-8a47-03561480b564","block_type":"box","text":"Master Portfolio, it is expected that all transactions in portfolio securities will be entered into by the Master Portfolio.","page_number":162,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"f178c751-2c22-437a-b300-ea869e054b78","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to obtain","page_number":162,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"240c2a56-53d8-4efe-8ef6-b0afb20d5f22","block_type":"box","text":"the best price and most favorable execution for a Fund, taking into account a variety of factors including: (i) the size,","page_number":162,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"af859edc-470b-4198-8938-276f9cfae777","block_type":"box","text":"nature and character of the security or instrument being traded and the markets in which it is purchased or sold;","page_number":162,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"c6c68427-240a-4a6e-943d-f82f009a693c","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":162,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"2efd5d87-8d41-4f8e-a0ff-4235e6671377","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the particular security or instrument,","page_number":162,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"02366e68-db4c-44ca-9993-5ed1f74e2c54","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":162,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"f8e954ab-481b-4f76-9641-019f755e51a0","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":162,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"b928c580-63a7-44f4-b261-9effb671e495","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":162,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"28f9b946-03cd-40a5-bac9-eb5e7cc35605","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":162,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"2ef4ce5f-5595-45f8-89db-3e5367f7994b","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain circumstances","page_number":162,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"3dffc939-a8ba-41b9-8196-c6cd06e5a5c5","block_type":"box","text":"to cause an account to pay a broker or dealer a commission for effecting a transaction that exceeds the amount","page_number":162,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"82b4e032-6b16-45ab-bfff-a546171976f5","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":162,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"6fde45f1-a548-49d8-905b-b4c0ebbe0c76","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":162,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"6df0c569-bb78-4d7e-9f0b-d6d4ab6605a8","block_type":"box","text":"principal transactions under certain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":162,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"7803b757-91ab-4345-84be-a27543be9633","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":162,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"7989f930-f2e5-4119-9614-a19b7cfdc8da","block_type":"box","text":"performance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":162,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"c82f56d7-8b69-4fe9-8f7f-a8484813c8a8","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers,","page_number":162,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"277ab973-7129-442f-b13a-a5728c73633a","block_type":"box","text":"industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and","page_number":162,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"2c70871b-bc58-4ef2-ac87-491f2a403e43","block_type":"box","text":"(3) effecting securities transactions and performing functions incidental to securities transactions (such as","page_number":162,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"419c4622-21d0-4c26-a3ba-d2d14df5910a","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":162,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"85ea119c-2636-46cc-acd9-4448e0dd2c60","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":162,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"8e5b54ff-b56d-4c64-981b-489f33a4ab13","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements under which","page_number":162,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"a46f7cfe-816f-4047-b938-07f93527859e","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a portion of","page_number":162,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"fac59c4e-f4e1-42a1-820b-b4ad5e61ff30","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":162,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"39d75fb7-cb88-4634-bc97-aa9e6c4dde3a","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":162,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"ba0b7ec6-8cfe-426b-bd5b-cd20f7801e23","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":162,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"ec5dcb08-ee9d-45c8-96fc-bc2c7232b5a0","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":162,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"b5e86b67-c1a3-4e05-b51e-5e15d182a67e","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":162,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"a0b533a8-e011-46d7-990e-d036616e0321","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":162,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"877e9eec-9117-4d2c-813e-8a239dd5ff74","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":162,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"5a0537f5-713d-4350-b619-130503436c4d","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":162,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"45790088-5116-4d95-aabe-b44b666321b2","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":162,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"135b3ca0-0ca1-40f2-a6cf-ff92cd028a97","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":162,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"55f43134-2fc5-4449-aeeb-3dd2e22cf0e0","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":162,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"7d3b067c-d755-4d8e-926f-a0c646d9372c","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-party and provided to BlackRock by the broker-dealer)","page_number":162,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"38b84fb5-daf8-4741-b142-7c5f69d1d7e7","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":162,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"e69df314-361e-47dc-8e70-758ffc81bf34","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":162,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"45b9cd02-99b7-460c-b45b-b4437b3538ac","block_type":"box","text":"portfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":162,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"2dcf0b62-516e-4c6c-8c96-0000e8cba5c0","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":162,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"95033d82-da78-411e-9c51-ede68bce4890","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":162,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"67d6f857-b712-48e0-a708-545ff2fd45d3","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":162,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"db1aecda-c53f-4726-900c-60116e246f82","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":162,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"4ae7a251-248e-4600-aa07-bd5a9b56d649","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-party related research and","page_number":162,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"5953be3d-7b45-41b1-9d11-b62fd089851a","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":162,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"b1addc92-b6f1-4fb4-a1ce-a269eb088b35","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":162,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"81c3900c-7ad2-4abb-ae50-4e903256d096","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":162,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"06aee8e0-abc0-454b-9e5a-f1f82628c60c","block_type":"box","text":"particular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":162,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"dce6cf97-811e-4a51-a967-342f3b6d801a","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":162,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"d28b2c49-c78e-4951-937d-1241a120d6b1","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":162,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"78edea61-f0c4-4926-b705-d68198a1101d","block_type":"box","text":"used in servicing some or all client accounts and not all services may be used in connection with the Fund or account","page_number":162,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"72319054-e817-4056-bdee-a38263f5d772","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":162,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"34555e49-c0c3-478d-af37-45bd1c61f071","block_type":"box","text":"II-125","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"16a6c39f-206b-4345-9d2c-038f7bf04f4e","block_type":"box","text":"NM1026U-5993100-162/236","page_number":162,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"45394f3b-f220-4190-85e1-1a163bebbf9c","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":163,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"abbda0c5-1a3f-4c58-9e47-b9c6c970939b","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":163,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"3a688d63-e00a-4ab9-ba5d-e0e953d1a541","block_type":"box","text":"paid by a Fund to BlackRock are not reduced as a result of BlackRock’s receipt of research services. In some cases,","page_number":163,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"fb810a63-c219-4474-be09-d5e1c7b66ffd","block_type":"box","text":"BlackRock may receive a service from a broker that has both a “research” and a “non-research” use. When this","page_number":163,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"ca48f8a0-22d8-4f79-b447-b52a05b21daf","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":163,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"b37015cc-68ae-4d7f-a36f-86d49baecb0d","block_type":"box","text":"research uses of the service. The percentage of the service that is used for research purposes may be paid for with","page_number":163,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"98c1e857-eff3-4549-8371-588f83cd8779","block_type":"box","text":"client commissions, while BlackRock will use its own funds to pay for the percentage of the service that is used for","page_number":163,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"69f4773d-de96-4c95-a313-4a1484f4f530","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":163,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"d9752196-550a-44a1-ad29-841c5555a92a","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":163,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"baa038f5-a512-4944-a79c-a44eb5e1318c","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":163,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"c81639cb-27d3-43de-a7cd-d6455d6e6101","block_type":"box","text":"Under MiFID II, investment managers in the EU, including BIL, are not able to use soft dollars to pay for research","page_number":163,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"65bf04e8-ab53-4939-a1bd-0419e074259e","block_type":"box","text":"from brokers. Investment managers in the EU are required to either pay for research out of their own profit and loss","page_number":163,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"910d8bbb-bcf9-47ac-a40a-fef90c75b973","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":163,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"8e57581e-7839-4558-9732-7001f7f91f8c","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":163,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"40e191af-e3f4-4ecc-9822-78b3ac9174da","block_type":"box","text":"payments for research are unbundled from the payments for execution. BIL will pay for any research out of its own","page_number":163,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"6c4cc2d6-6f49-4762-a2e0-0dac0ee03823","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":163,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"bd614a6d-f02f-4202-8bb4-e59c9588060a","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio with respect","page_number":163,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"1003d979-2778-410f-8fe2-aaeef1f26e72","block_type":"box","text":"to the Feeder Fund (or affiliated persons of such persons), will be made in accordance with Rule 17e-1 under the","page_number":163,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"9fd17316-916e-428b-bea7-54005b08e976","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Portfolio, BlackRock","page_number":163,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"201def55-bbfa-4131-9b9e-529df95f6ddd","block_type":"box","text":"is primarily responsible for the execution of the Master Portfolio’s portfolio transactions and the allocation of","page_number":163,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"ec2d99ee-ed09-4527-8c31-6a6c19baa81b","block_type":"box","text":"brokerage.","page_number":163,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"7031572d-5691-41eb-a24a-53a9b9a52dbd","block_type":"box","text":"From time to time, a Fund may purchase new issues of securities in a fixed price offering. In these situations,","page_number":163,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"b479b0fe-052c-49a7-81ca-d3dbeee12a55","block_type":"box","text":"the broker may be a member of the selling group that will, in addition to selling securities, provide BlackRock with","page_number":163,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"25a45a61-37cc-4673-b55d-d0fa55cda48b","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under certain","page_number":163,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"045f4931-2f71-4fb7-9008-df5fc7650a0e","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":163,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"b80d696a-263d-4d76-ba04-a952d5b16e80","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":163,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"9833c88f-44be-4c2c-bdd3-c84530d3f45c","block_type":"box","text":"Section 28(e).","page_number":163,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"1de63e46-d002-459a-8740-6448fd815d72","block_type":"box","text":"BlackRock does not consider sales of shares of the mutual funds it advises as a factor in the selection of","page_number":163,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"d892c167-2103-49d1-8b8d-cedf977b24d7","block_type":"box","text":"brokers or dealers to execute portfolio transactions for a Fund; however, whether or not a particular broker or dealer","page_number":163,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"56d9f815-1acd-4ae0-a5fd-0aebc2cbf2fd","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":163,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"e4668a4d-9a83-434b-8f35-e2b1168b10e6","block_type":"box","text":"execute transactions for those mutual funds.","page_number":163,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"945e224b-2263-44b8-8f5d-18498a61ffcf","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":163,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"f1f479bc-7b10-414f-8ca7-9f03f8f6ae42","block_type":"box","text":"primarily on the principal stock exchanges of the applicable country. Foreign equity securities may be held by a Fund","page_number":163,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"956590b4-a83f-4356-b69d-99f05891f858","block_type":"box","text":"in the form of depositary receipts, or other securities convertible into foreign equity securities. Depositary receipts","page_number":163,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"b0e21415-73bf-491b-8be7-fb92e00c6f99","block_type":"box","text":"may be listed on stock exchanges, or traded in OTC markets in the United States or Europe, as the case may be.","page_number":163,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"ed62ff95-3ef3-4dd4-821b-cee2d7933efc","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":163,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"508eb655-d633-4487-a246-e767162e2daf","block_type":"box","text":"commission rates. Because the shares of each Fund are redeemable on a daily basis in U.S. dollars, each Fund","page_number":163,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"abe7e907-680e-4276-91c5-27f712b9b142","block_type":"box","text":"intends to manage its portfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":163,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"44303333-98c8-48a6-8450-b5db2aac2970","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":163,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"98ccb770-05a4-4622-b013-6c69210ae784","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":163,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"dc24ee50-7d7e-42e8-9cb5-8df6ce6e61a5","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":163,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"1151660f-4ca6-413a-98b0-2d28173b0578","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":163,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"62827d00-bc49-4170-ad66-620cac819124","block_type":"box","text":"Each Fund may invest in certain securities traded in the OTC market and intends to deal directly with the dealers","page_number":163,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"c8b44f0b-d556-4503-ac35-6d0ef258f728","block_type":"box","text":"who make a market in the particular securities, except in those circumstances in which better prices and execution","page_number":163,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"10d0e182-c56c-40ca-886b-50b4d98c7f77","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":163,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"845bce8c-4e6b-4325-96ad-f9200f24a46e","block_type":"box","text":"affiliated with such affiliated persons are prohibited from dealing with the Fund as principal in the purchase and sale","page_number":163,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"cd7612f8-2bf2-43a2-8456-891a954b27c9","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":163,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"f680f000-3894-4e57-94d7-003ee562146b","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":163,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"f1441472-7844-4cae-9cc6-10a0e24be52b","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":163,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"6c11efdb-5064-4f6e-a0af-d69e4eff9df5","block_type":"box","text":"person of a Fund may serve as its broker in OTC transactions conducted on an agency basis provided that, among","page_number":163,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"d4f71311-8331-4c48-811b-b13607cee658","block_type":"box","text":"other things, the fee or commission received by such affiliated broker is reasonable and fair compared to the fee or","page_number":163,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"f6d5b10f-dc4b-4614-a93c-6dc0fb02eb2a","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":163,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"7a79032f-de49-4f09-a6e2-5ba8e6adb5da","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":163,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"9f8703c5-17b7-4a28-bed9-f1774de0437d","block_type":"box","text":"normally traded on a “net” basis without a stated commission, through dealers acting for their own account and not","page_number":163,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"c501271f-e4fa-43f1-bfe3-89fb55daf58a","block_type":"box","text":"II-126","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9cb75f82-82e7-4ee4-b5e1-61864c0a2906","block_type":"box","text":"NM1026U-5993100-163/236","page_number":163,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ea623ec5-ec48-4938-b2d7-07fe262c3ff0","block_type":"box","text":"as brokers. The Funds will primarily engage in transactions with these dealers or deal directly with the issuer unless a","page_number":164,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"7e81352a-07fd-4e81-9eed-38af6cf18a0d","block_type":"box","text":"better price or execution could be obtained by using a broker. Prices paid to a dealer with respect to both foreign and","page_number":164,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"37200ae0-8ee0-477c-88f5-6e4172da2801","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":164,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"bad9c4ac-e7a2-4c2c-8536-1027018c7fdd","block_type":"box","text":"is willing to purchase and sell the specific security at the time, and includes the dealer’s normal profit.","page_number":164,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"e55f7e4e-9ea3-466e-972b-6ffb81d0b49d","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":164,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"441b93cd-a059-498c-a0d5-9ee23309362b","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":164,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"9dc06193-e3bd-49de-984c-eee5f72348ee","block_type":"box","text":"instruments are generally traded on a “net” basis with dealers acting as principal for their own accounts without a","page_number":164,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"8eb3ec6b-57f6-4218-b611-e1a155eba041","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":164,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"3cbcdb8b-522f-4bb4-bce7-0bda345a9568","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":164,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"e78819fb-4ef0-4cb4-8fcb-59d2f219141d","block_type":"box","text":"with the rules of the Commission. As a result, the portfolio turnover rates of a money market fund will be relatively","page_number":164,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"706f2a4e-95d6-4e26-85b7-542ad355ce14","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":164,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"b580987b-2d10-4a40-b59e-729f335edd8f","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":164,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"d677d240-ed71-4466-9645-2d68446f711f","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":164,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"4bb6c79d-4961-4e7e-8043-c0c43004e5da","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":164,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"3d23e8e5-90cc-4c49-a091-c9705e838ac6","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":164,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"93bdcde8-2c1b-43e0-b735-0bc74c386199","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers","page_number":164,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"db2f9723-dbec-4627-acca-abe0f22c90c9","block_type":"box","text":"selling commercial paper to consider the repurchase of such securities from a Fund prior to maturity at their original","page_number":164,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"aa6caf79-11d7-4f01-9541-587ae8b452d2","block_type":"box","text":"cost plus interest (sometimes adjusted to reflect the actual maturity of the securities), if it believes that a Fund’s","page_number":164,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"aa252468-8a8a-49b6-ac48-ec4c44ba8240","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":164,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"66e0d968-9df7-48c2-853c-2d8baad54ef1","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":164,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"cd4d035d-ac1a-4290-b7d9-6d52f82c8190","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":164,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"125c0623-33ab-48cc-881a-90e9d58b015b","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":164,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"f404f879-ec2d-407a-8cc0-99d88b150a47","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":164,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"a7b026bf-2524-40b8-b31e-9786861ba0de","block_type":"box","text":"accounts in a fair and equitable manner over time. A variety of factors will be considered in making such allocations.","page_number":164,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"8f664c15-965e-4be0-bc9d-54c6e734f1a9","block_type":"box","text":"These factors include: (i) investment objectives or strategies for particular accounts, including sector, industry,","page_number":164,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"f73948f1-b0f5-4d91-a32e-fe03121475e0","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":164,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"21d3e824-8a1c-496f-b0a8-14055da41e81","block_type":"box","text":"concentration parameters for an account, (iv) supply or demand for a security at a given price level, (v) size of","page_number":164,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"8d15b595-1107-4007-a6ce-0af37e08ac33","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":164,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"2524b778-b7dc-4204-a837-4bcacbdb9818","block_type":"box","text":"(viii) minimum investment size of an account, (ix) relative size of account, and (x) such other factors as may be","page_number":164,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"d0a4591e-7ee2-4aeb-bac6-bb2542af34e2","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":164,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"94d5a7d6-d743-478c-93fb-7de94322d716","block_type":"box","text":"another based on any of the following considerations: (i) to favor one client account at the expense of another, (ii) to","page_number":164,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"e0e7fee7-663c-45da-a72b-e6962d665895","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater performance compensation to","page_number":164,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"1858c596-9d66-492e-82ee-14e46463edac","block_type":"box","text":"BlackRock, (iii) to develop or enhance a relationship with a client or prospective client, (iv) to compensate a client for","page_number":164,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"650660d4-0833-4d62-ae17-0226cefac016","block_type":"box","text":"past services or benefits rendered to BlackRock or to induce future services or benefits to be rendered to BlackRock,","page_number":164,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"6afc5a85-b355-4787-8efd-cee90638af83","block_type":"box","text":"or (v) to manage or equalize investment performance among different client accounts.","page_number":164,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"f1af3c64-a316-4103-b835-7631f5016c71","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":164,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"9c29ac90-2ea3-4da4-9bed-41ade86ccbbf","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":164,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"e32e107c-0a46-4f1a-bc26-46e2f170e312","block_type":"box","text":"accounts and compliance constraints.","page_number":164,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"7d65a4e0-6d6d-4855-8527-dd867fc6e87c","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":164,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"32f957ec-8ed5-4f46-a808-5d0c6a9ef81b","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":164,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"c42c0382-73e8-4f7a-b6bd-161644521976","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":164,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"236bc6dd-fefd-4877-a187-8d27c57191ab","block_type":"box","text":"among client accounts over time, each portfolio manager or a member of his or her respective investment team will","page_number":164,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"ec990bb0-dbc7-4553-89de-b251d8ead72b","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a particular offering with respect to eligible client","page_number":164,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"7270ef41-80fb-4b5a-bbe2-67ff33934e02","block_type":"box","text":"accounts for which that team is responsible. Initial public offerings of U.S. equity securities will be identified as","page_number":164,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"89e96cad-133a-479a-ab57-58523bac33f4","block_type":"box","text":"eligible for particular client accounts that are managed by portfolio teams who have indicated interest in the offering","page_number":164,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"9d8434b2-320b-4f02-ac62-c5558a6ad231","block_type":"box","text":"based on market capitalization of the issuer of the security and the investment mandate of the client account and in","page_number":164,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"81a3690b-87c5-42e5-b393-e7126cc47c3d","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":164,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"4eb6bc07-7741-4244-bb39-aed41b01531c","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among participating","page_number":164,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"50e2c9e8-d1db-436a-aa89-364403e15e36","block_type":"box","text":"client accounts within each investment mandate on a pro rata basis. In situations where supply is too limited to be","page_number":164,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"05fa3992-9084-4dc3-a5bc-880b493dd682","block_type":"box","text":"allocated among all accounts for which the investment is eligible, portfolio managers may rotate such investment","page_number":164,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"0bdeb881-bdc0-4f32-8cfc-2a756aa1b82c","block_type":"box","text":"opportunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":164,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"b9346810-4b68-41f3-bcbf-e814fbe85081","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":164,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"93e35523-6ffe-4985-8ac2-33dadf3d3674","block_type":"box","text":"clients may be used as well.","page_number":164,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"d6ed2fd6-3fe8-4539-92f7-55601bd0043b","block_type":"box","text":"II-127","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bc25823f-3f50-4180-b343-dff5027dba1e","block_type":"box","text":"NM1026U-5993100-164/236","page_number":164,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"912d2aec-ce7c-40de-a61c-07b65f566f84","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":165,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"88258d94-1eeb-4824-8754-016b07aeb5df","block_type":"box","text":"the same securities at the same time for different clients based on the particular investment objective, guidelines","page_number":165,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"8ae53057-6502-4553-94fa-90c2ce84bdec","block_type":"box","text":"and strategies of those accounts. For example, BlackRock may decide that it may be entirely appropriate for a growth","page_number":165,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"947a7067-dc67-4b41-a55a-1327b8b6a0d0","block_type":"box","text":"fund to sell a security at the same time a value fund is buying that security. To the extent that transactions on behalf","page_number":165,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"687dc70f-8e29-46ca-ba45-43c96b451ac1","block_type":"box","text":"of more than one client of BlackRock or its affiliates during the same period may increase the demand for securities","page_number":165,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"05084a06-61ab-4dfb-aeae-d51c08137c89","block_type":"box","text":"being purchased or the supply of securities being sold, there may be an adverse effect on price. For example, sales","page_number":165,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"e72a31e4-dcdd-4112-a2cf-d7c198cb9d77","block_type":"box","text":"of a security by BlackRock on behalf of one or more of its clients may decrease the market price of such security,","page_number":165,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"468ce97e-b5f8-4919-980c-5df56133d22f","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":165,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"ddebe081-1701-411e-a6b7-10721e4b2e60","block_type":"box","text":"consideration at or about the same time that would involve a Fund or other clients or funds for which BlackRock or an","page_number":165,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"1dea18ee-04ce-44af-9389-1ffa4c4f0691","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":165,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"6ba0dab5-7211-4808-9680-e7704eb93a3e","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":165,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"69fea8e8-8f61-42c9-b454-2faa2d6df144","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":165,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"54ea8aee-8097-4bbf-90a5-762b4d2051ae","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":165,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"3730754f-1912-4789-b505-25b70e124833","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or investment team","page_number":165,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"869c58d7-38b4-42cb-a870-fd2856d4ac49","block_type":"box","text":"will be aggregated in a single order if the trader believes the aggregated trade would provide each client with an","page_number":165,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"c6d69fb4-21f1-4870-aff2-700a8e1ca1c7","block_type":"box","text":"opportunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":165,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"8ab62ac2-7472-4d07-9dfb-a31ae4b31dc6","block_type":"box","text":"aggregated order will be shared pro rata among the clients in the aggregated order. Generally, if an order for a","page_number":165,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"d9d4e11d-750e-4e39-af39-37e8a1d78830","block_type":"box","text":"particular portfolio manager or management team is filled at several different prices through multiple trades, all","page_number":165,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"a5f486ba-2f43-48e7-aa12-59226d5c3e99","block_type":"box","text":"accounts participating in the order will receive the average price except in the case of certain international markets","page_number":165,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"5ec38c7e-e92b-4cbc-b5e6-401c74051a64","block_type":"box","text":"where average pricing is not permitted. While in some cases this practice could have a detrimental effect upon the","page_number":165,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"7976f3c9-0065-4d33-9072-63d0fe4127ec","block_type":"box","text":"price or value of the security as far as a Fund is concerned, in other cases it could be beneficial to the Fund.","page_number":165,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"3679199c-8bc7-49bd-9bd9-758702b2ced9","block_type":"box","text":"Transactions effected by BlackRock on behalf of more than one of its clients during the same period may increase","page_number":165,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"59e1023c-26f8-4d7b-aec3-2fae382b1ca1","block_type":"box","text":"the demand for securities being purchased or the supply of securities being sold, causing an adverse effect on price.","page_number":165,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"f948dcaa-00dd-42e9-97db-c352f68916a3","block_type":"box","text":"The trader will give the aggregated order to the broker-dealer that the trader has identified as being able to provide","page_number":165,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"d3dd124b-57d8-439e-97c3-3e594b678b0b","block_type":"box","text":"the best execution of the order. Orders for purchase or sale of securities will be placed within a reasonable amount","page_number":165,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"b5ad1076-0242-4601-a7ce-d1fbc29202fb","block_type":"box","text":"of time of the order receipt and aggregated orders will be kept aggregated only long enough to execute the order.","page_number":165,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"f944922e-6746-47b2-ba5c-d517d596c5ee","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":165,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"bc0eb0b1-5bce-455b-b388-53ad9d0c0c65","block_type":"box","text":"securities of which BlackRock, BRIL or any affiliated person (as defined in the Investment Company Act) thereof is a","page_number":165,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"84061aa8-d42c-435a-b11b-c62d2ce61e95","block_type":"box","text":"member except pursuant to procedures adopted by the Board of Directors in accordance with Rule 10f-3 under the","page_number":165,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"1dcb5c21-8aff-4fce-9a18-6833e24c6ba2","block_type":"box","text":"Investment Company Act. In no instance will portfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":165,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"faabf141-e1cb-42ae-8716-1544fe70082f","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":165,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"9a53d1d0-711d-450a-8aff-fed771ab8cfe","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":165,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"01cc4511-b549-4a4c-b651-f6c53b3c3d38","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of portfolio securities of a Fund and","page_number":165,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"9f2f4291-cf59-404a-b33c-5fd0f3e290f8","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":165,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"4a588666-51b5-4446-ab53-819661978ff2","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":165,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"06f068f2-0052-4bc1-b022-96d13724225b","block_type":"box","text":"to all by BlackRock. In some cases, this procedure could have a detrimental effect on the price or volume of the","page_number":165,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"eb50c0ea-99dd-4334-b927-0349b08fece6","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to participate in volume","page_number":165,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"58e6c920-1ff4-484d-a111-77ec847b981a","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":165,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"acefd104-630a-4afe-a278-0b8b71bc85e3","block_type":"box","text":"invest for its own account in the types of securities in which a Fund may invest. BlackRock may, from time to time,","page_number":165,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"da799c7a-2f09-47c3-a4f7-3dc796caa521","block_type":"box","text":"effect trades on behalf of and for the account of a Fund with brokers or dealers that are affiliated with BFA, in","page_number":165,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"d806d622-84f9-49ad-8ee9-1f50daab0792","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":165,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"2dda3b6b-1c26-4b22-ba4c-89512b4a3e78","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":165,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"502b2577-05ea-4b84-b3ae-5990722f0cac","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":165,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"89bbe963-dcae-452e-a386-9e9674423d32","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":165,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"babec632-a979-424c-89ac-1c200e8e1ba4","block_type":"box","text":"Portfolio Turnover","page_number":165,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"137f1b5b-0eb0-47cc-90a0-e8d9fd607a95","block_type":"box","text":"The portfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of portfolio","page_number":165,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"16fafdf7-affc-4302-8b1e-2b46e96f126f","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":165,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"9bd396de-ec49-4652-a2ce-5ceb40c5e0f1","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the portfolio during","page_number":165,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"dcbc84e7-8dd3-4ef8-b88d-5ffef9c72d04","block_type":"box","text":"the year. A high rate of portfolio turnover results in certain tax consequences, such as increased capital gain","page_number":165,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"4dfcb5b9-b09d-4f6e-a01e-1001f4ab4c92","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":165,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"13b3b8ee-aaa7-450f-86c5-0dab8bfab40f","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":165,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"508f6fa0-917c-4303-b003-284c9af42073","block_type":"box","text":"II-128","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"98ae7914-92d9-452d-abc5-2d22d5c0fac1","block_type":"box","text":"NM1026U-5993100-165/236","page_number":165,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8452e299-deb8-427f-b938-4d0f55a0aa7c","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":166,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"e4d06bf6-6c43-48e8-8473-2c714a2aefed","block_type":"box","text":"Dividends","page_number":166,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"505d953f-b993-43df-a5cf-c0e699af865d","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":166,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"ebb8458c-f269-4b5e-a566-7a0a16bb1238","block_type":"box","text":"investment income are paid as set forth in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":166,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"71ada01f-5a66-47fa-9eea-71d7285c634c","block_type":"box","text":"realized capital gains, if any, as set forth in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":166,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"040c14da-9b33-406c-9fe9-d70e90a82d06","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that certain","page_number":166,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"3df18f84-b6cc-4e53-b292-c977e24a994b","block_type":"box","text":"percentages of its ordinary income and capital gains be distributed during the year. If, in any fiscal year, a Fund has","page_number":166,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"a05668c1-7b89-4753-831c-cd0c69f7c967","block_type":"box","text":"net income from certain foreign currency transactions, such income will be distributed at least annually.","page_number":166,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"e2f7ed67-9586-40a7-a10b-071cec66c979","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":166,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"4d98d7ff-b489-47d8-836c-315c5e72086f","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":166,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"7b3bea88-e8d8-4016-9912-5b3ecab983e0","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":166,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"6501aa0e-8ece-4cd6-b89e-04797e5b8f99","block_type":"box","text":"whether they are reinvested in shares of the Fund or received in cash. The per share dividends on front-end load","page_number":166,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"a6b1489e-b65e-4e7d-ba82-1c361ec15f27","block_type":"box","text":"shares, CDSC shares and Service Shares will be lower than the per share dividends on Institutional Shares as a","page_number":166,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"96598810-050b-4c71-bfed-3e4209b57b3c","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":166,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"74f5136e-a25d-4145-a9c9-d5a12073c4a6","block_type":"box","text":"applicable to front-end load shares and Service Shares, and the service and distribution fees applicable to Class R","page_number":166,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"66938731-84fc-4d68-b2b6-0820dff0ce2e","block_type":"box","text":"Shares. Similarly, the per share dividends on CDSC shares and Class R Shares will be lower than the per share","page_number":166,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"90e107d5-0f6f-4007-957b-d6292c06a57e","block_type":"box","text":"dividends on front-end load shares and Service Shares as a result of the distribution fees and higher transfer agency","page_number":166,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"fc01308e-1185-4229-ad88-5780c4cabcd3","block_type":"box","text":"fees applicable to CDSC shares and the distribution fees applicable to Class R Shares, and the per share dividends","page_number":166,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"3b466830-5602-4c93-9f3a-20c8a65304f6","block_type":"box","text":"on CDSC shares will be lower than the per share dividends on Class R Shares as a result of the higher distribution","page_number":166,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"c6bef767-d50b-4763-8cfb-e4279d12a145","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":166,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"1270849d-fcec-4367-8e54-6d728f4be7de","block_type":"box","text":"Taxes","page_number":166,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"59388d7b-937d-45e6-a89e-768599f1596d","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":166,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"653e6b69-b018-4ba0-8a63-9678f3df5d97","block_type":"box","text":"companies under the Code. As long as a Fund so qualifies, the Fund (but not its shareholders) will not be subject to","page_number":166,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"caabf9cd-f9d3-4a89-99e7-92e9caffd60b","block_type":"box","text":"U.S. federal income tax on the part of its investment company taxable income and net realized capital gains that it","page_number":166,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"3365eb0f-c32a-45f9-a8bf-e382721351f8","block_type":"box","text":"distributes to its shareholders in years in which it distributes at least 90% of its investment company taxable income","page_number":166,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"706cc150-78ac-4126-b242-874559a4409f","block_type":"box","text":"and at least 90% of its net tax-exempt interest income, if any, for the year. To qualify as a regulated investment","page_number":166,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"6395b229-80a7-4019-9c0a-fb325396ba63","block_type":"box","text":"company, a Fund must meet certain requirements regarding the source of its income and the composition and","page_number":166,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"03885dc9-46e2-470c-a542-08e88af2af8d","block_type":"box","text":"diversification of its assets. See Part II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":166,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"8f8a4e27-38b5-473f-b237-0b9da0445a5f","block_type":"box","text":"for a discussion of the asset diversification requirements. In the case of a Feeder Fund, such Fund may look to the","page_number":166,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"53193b0b-0b0e-477b-8222-305c309eb025","block_type":"box","text":"underlying assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":166,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"fae7ad75-1247-479c-b545-38fef3eabbe5","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":166,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"a6b2a2b6-1206-4d37-a3cc-717645c107c2","block_type":"box","text":"A Fund may be able to cure a failure to derive at least 90% of its income from the sources specified above or a","page_number":166,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"d0295e08-c60f-4382-bbb2-db335eb53608","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of certain assets, or by","page_number":166,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"e8b5ac67-80ce-4e49-85f2-b8598d45675b","block_type":"box","text":"paying a tax and disposing of assets. If, in any taxable year, a Fund fails one of these tests and does not timely cure","page_number":166,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"7a354168-d62a-483d-b3d0-0d9351287dc0","block_type":"box","text":"the failure, the Fund will be taxed in the same manner as an ordinary corporation and distributions to its","page_number":166,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"87e54eb0-28e9-4ae9-8209-ddf2e60ceebc","block_type":"box","text":"shareholders will not be deductible by the Fund in computing its taxable income. Although in general the passive loss","page_number":166,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"73268692-b26f-44a7-8825-f60fe1828b15","block_type":"box","text":"rules of the Code do not apply to regulated investment companies, such rules do apply to a regulated investment","page_number":166,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"5a92118f-c17e-4234-b265-5f991eaba907","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s","page_number":166,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"3ba9297b-3e25-4b3a-8e1c-41b4d721cdf2","block_type":"box","text":"investments in partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject","page_number":166,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"490b78e0-f093-47d0-875b-37da7a797986","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":166,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"6fe62cad-fd28-4c96-bb57-7dad1e195f95","block_type":"box","text":"Each Fund intends to distribute substantially all of such income and gains. If, in any taxable year, a Fund fails to","page_number":166,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"6879e9c5-939e-449c-8991-2f57666c02c2","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of certain relief","page_number":166,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"5d9debea-d62d-4ea6-9e1a-5a57203f612d","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":166,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"bb7d8536-b349-4887-95ad-789c7f2e6fad","block_type":"box","text":"earnings and profits (as determined under U.S. federal income tax principles) to its shareholders would be taxable as","page_number":166,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"c1ba7779-b39c-4492-a4cd-51324315e15d","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":166,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"7bc4451f-4684-49fd-8804-ea05337c74f5","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":166,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"fbb044d7-1bbf-4796-a6f0-1c56e2629aa9","block_type":"box","text":"exempt obligations, as defined herein, would no longer qualify for treatment as exempt interest. Each Fund that is a","page_number":166,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"ef1353e2-66c2-436e-8e8c-0808a77703e2","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":166,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"f9dd6a3a-4593-41be-ae93-581a5bbca99a","block_type":"box","text":"U.S. federal income tax purposes, and therefore is considered to be a separate entity in determining its treatment","page_number":166,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"7b43d3ba-769e-436a-9bf7-fdf17744201a","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":166,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"1c6be8cb-bcc2-4c8b-b5fa-17b0612aebb3","block_type":"box","text":"offset gains in another, and the requirements (other than certain organizational requirements) for qualifying for","page_number":166,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"545e0b7e-adcd-49e4-a226-b523722a3be2","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":166,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"842ab859-e870-45e8-b004-cd11ee1bd986","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":166,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"d4f16192-aaa4-4536-9cad-8ab64e8ee681","block_type":"box","text":"II-129","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ba709efa-9173-4c2e-be1d-cd02b97cd1b9","block_type":"box","text":"NM1026U-5993100-166/236","page_number":166,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0e6b7901-34b9-4add-b2e0-118e993e4e85","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":167,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"62a7a142-b69c-4aab-8a25-c892343fe403","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":167,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"9c9d56b2-fe2b-41c1-9bab-6ffcc9ccae25","block_type":"box","text":"determined on a calendar year basis, and at least 98.2% of its capital gain net income, determined, in general, as if","page_number":167,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"14f82630-fb54-4151-bfd4-de3149fecd72","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus certain undistributed amounts from the","page_number":167,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"0eda87a9-1418-4ac0-aac6-ea7f89ff22e0","block_type":"box","text":"previous years. While each Fund intends to distribute its income and capital gains in the manner necessary to avoid","page_number":167,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"1a535543-0947-4ae5-8fb4-91d2b3ae1b25","block_type":"box","text":"imposition of the 4% excise tax, there can be no assurance that a sufficient amount of the Fund’s taxable income","page_number":167,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"3e46b9cb-31ba-4fbd-b95f-bbac5dd4e38a","block_type":"box","text":"and capital gains will be distributed to avoid entirely the imposition of the tax. In such event, a Fund will be liable for","page_number":167,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"94d6c663-6a35-41fa-8b5c-9e25d1ff03e1","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":167,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"5e9070d9-2fa7-48aa-955c-bbdeac56f3cb","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":167,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"4de8bdad-3bc8-4a00-bac8-f5f927e35c29","block_type":"box","text":"have been reduced to zero. In the event that the Fund were to experience an ownership change as defined under the","page_number":167,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"6097f03b-28fe-4f43-b080-9cdf815cef3b","block_type":"box","text":"Code, the Fund’s loss carryforwards and other favorable tax attributes of the Fund, if any, may be subject to","page_number":167,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"be8ad7a4-75f2-4fa2-b4d1-418bfaa1fe79","block_type":"box","text":"limitation.","page_number":167,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"a041246c-b7ff-4358-9b25-4f8f812659fd","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net short-term capital gain over net long","page_number":167,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"3ea2f9ea-ca2f-4ccc-b7a4-41e8c14a2397","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":167,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"7ab0b579-dd07-4ce5-b2cd-c404c6d85e0d","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net short-term capital loss (including","page_number":167,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"26d23fe6-5a4b-46b5-aa40-1bc1fc938084","block_type":"box","text":"gains or losses from certain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":167,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"1ab57796-e9e8-423a-b575-1fcade9ae4e6","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":167,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"cf89fb08-7477-4a17-b534-d3aa994bfb77","block_type":"box","text":"Distributions paid by a Fund that are reported as exempt-interest dividends will not be subject to regular U.S. federal","page_number":167,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"6b84b70c-bcda-4a17-9bdc-3ea022de88f9","block_type":"box","text":"income tax. Certain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":167,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"84b13d15-4290-42bd-9b18-6e23ca2dacc8","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":167,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"51cbf1b5-b026-4870-b08a-27ba9037811d","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":167,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"b02955de-28b1-41a9-866b-8a8606810e35","block_type":"box","text":"taxable to such shareholder at long-term capital gain rates provided the shareholder has held the shares on which","page_number":167,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"885a9484-dd5c-46d9-a9db-04b76fa99348","block_type":"box","text":"the dividend was paid for at least 61 days during the 121-day period that begins on the date that is 60 days before","page_number":167,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"7d5792e0-eda8-411a-aae1-275ac3b24570","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of certain","page_number":167,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"fd8d9685-25ba-4b08-9404-e1266aa1b027","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":167,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"113716b2-a9b5-4cfe-ace1-428d58b577ac","block_type":"box","text":"was paid for at least 91 days during the 181-day period that begins on the date that is 90 days before the date on","page_number":167,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"f2d3d783-563e-4d6e-b9d8-10d19d980481","block_type":"box","text":"which the shares become ex-dividend with respect to such dividend). However, to the extent a Fund’s distributions","page_number":167,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"f8cd2182-339e-4aa8-95b4-1aa8d5f3462f","block_type":"box","text":"are derived from income on debt securities, certain types of preferred stock treated as debt for U.S. federal income","page_number":167,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"b2ca2ad8-2c4f-42dd-a786-26527942eefe","block_type":"box","text":"tax purposes and short-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":167,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"9cd1ecbb-3526-44e9-bff1-1a6d136ed379","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":167,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"2ef046c0-ad5a-462d-95a8-1fce2b5bdb35","block_type":"box","text":"constitute “qualified dividend income.”","page_number":167,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"63ca8416-3da0-4247-aa91-01408f81ea02","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":167,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"d552bb3c-f7a7-48e0-847a-87dd1816aea1","block_type":"box","text":"proceeds) of certain individuals, trusts and estates.","page_number":167,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"e53536dc-3084-4d8d-a37e-09658487789a","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net short-term capital losses) is not","page_number":167,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"8c2767ef-d34f-4da8-a1dd-96639efce112","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":167,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"88ca5da1-f326-4e03-863c-534b10ea71e5","block_type":"box","text":"Fund retains net capital gain, it is subject to tax on that gain, and may designate the retained amount as","page_number":167,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"dc1fb874-c36a-48ef-97af-6c29f6a90bc1","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":167,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"f76b04ef-dc44-40db-b0f6-c3e08586825d","block_type":"box","text":"income, as long-term capital gain, their proportionate shares of such undistributed net capital gain, will be deemed to","page_number":167,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"63aab6eb-b132-4874-ae19-3c4d4e5aa50d","block_type":"box","text":"have paid and may claim as a credit against their U.S. federal income tax liability (and as a refund to the extent it","page_number":167,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"ee3b9566-ff65-4ed2-88d5-f2ce4df0507e","block_type":"box","text":"exceeds that liability) their proportionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":167,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"413ef71a-9766-4ddc-a287-11179fe95537","block_type":"box","text":"basis of their shares in the Fund by the excess of the amount included in income over the amount allowed as a credit","page_number":167,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"b244d068-660d-4be9-abfa-e6a4439c04ad","block_type":"box","text":"against their taxes.","page_number":167,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"6543d624-9dc7-484a-a955-6308b490e4e4","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":167,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"4535398e-0739-4285-8301-c8612f8420b1","block_type":"box","text":"tax basis of a holder’s shares and after such adjusted tax basis is reduced to zero, will constitute capital gains to","page_number":167,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"9f278c00-25dd-4ca9-b3e2-c04681d18d59","block_type":"box","text":"such holder (assuming the shares are held as a capital asset). Distributions in excess of a Fund’s minimum","page_number":167,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"546cd821-f0c6-4dc9-b91c-d00c65d4460c","block_type":"box","text":"distribution requirements (or taxable income) but not in excess of a Fund’s earnings and profits will be taxable to","page_number":167,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"e8ba29ec-f010-4078-bfd4-da1b81b458e1","block_type":"box","text":"shareholders and will not constitute nontaxable returns of capital. In the case of a Fund with a non-calendar taxable","page_number":167,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"40bb2460-50a9-45d2-9ef6-ffbf355be434","block_type":"box","text":"year, a Fund’s earnings and profits are allocated first to distributions made on or before December 31 of the taxable","page_number":167,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"fc88c999-2e5d-4d84-9c45-23eda2bf69b4","block_type":"box","text":"year, and then to distributions made after December 31 of the taxable year. Any loss upon the sale or exchange of","page_number":167,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"f7211121-543f-4db9-aebd-6d19308444ba","block_type":"box","text":"Fund shares held for six months or less will be treated as long-term capital loss to the extent of any capital gain","page_number":167,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"8a33302e-62da-48d6-8795-d1ea0e41cd46","block_type":"box","text":"dividends received by the shareholder.","page_number":167,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"85e51540-6a37-4f52-a6e0-89c871ab7984","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":167,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"276d8549-f85a-4483-b34e-6a100c9b915a","block_type":"box","text":"shares of a Fund. Distributions by a Fund, whether from ordinary income or capital gains, generally will not be eligible","page_number":167,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"d96ff34a-92ae-44b7-bc41-bf93ec88bc23","block_type":"box","text":"for the dividends received deduction allowed to corporations under the Code. If a Fund pays a dividend in January","page_number":167,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"3e6faf13-5db5-4df7-821f-229cdcf40dfe","block_type":"box","text":"that was declared in the previous October, November or December to shareholders of record on a specified date in","page_number":167,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"893ec609-a348-4856-bd58-003a20aabb39","block_type":"box","text":"II-130","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b94ae3d9-f1b4-4925-a9fd-d62b8bc4d081","block_type":"box","text":"NM1026U-5993100-167/236","page_number":167,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a036a580-9960-428c-bd05-570b850c98af","block_type":"box","text":"one of such months, then such dividend will be treated for tax purposes as being paid by the Fund and received by its","page_number":168,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"b6db7c28-f1d0-46ff-9692-0ba8f215f06a","block_type":"box","text":"shareholders on December 31 of the year in which the dividend was declared. In the case of a Fund with a non","page_number":168,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"6c776a44-27c2-47fb-ae98-cff99079e8b1","block_type":"box","text":"calendar taxable year, if the Fund reports more capital gain dividends than it earns in such taxable year, then the","page_number":168,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"62a7dba6-c97e-42e9-800a-aea4fbc7b0d1","block_type":"box","text":"Fund will reduce the amounts reported as capital gains. Where possible, such reduction will first be allocated to","page_number":168,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"133d01fe-6279-4141-8d38-6a3457b330fa","block_type":"box","text":"dividends made after December 31 of such taxable year. A Fund may elect to defer recognizing, until the following","page_number":168,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"8145bdf0-57ed-491e-a73d-2f81f7669d36","block_type":"box","text":"taxable year, certain net capital losses arising after October 31 of the current taxable year, and certain net ordinary","page_number":168,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"61034c6c-f0a3-4808-bbb9-8fc93f11f4a3","block_type":"box","text":"losses arising after October 31 and/or December 31 of the current taxable year. This may have the effect of","page_number":168,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"dc2d1233-9663-4de6-b027-57bb997ab423","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":168,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"9fd8ba34-cdd8-4454-adf9-886a7fe5ef35","block_type":"box","text":"taxable year.","page_number":168,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"95061b46-797e-49ca-b6da-1a6b86f46bbb","block_type":"box","text":"No gain or loss will be recognized by Investor C shareholders on the conversion to Investor A Shares. A","page_number":168,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"46f2eeb6-fd0b-497e-9098-ef3f87a3e136","block_type":"box","text":"shareholder’s tax basis in the Investor A Shares acquired upon conversion will be the same as the shareholder’s tax","page_number":168,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"7f5fecaa-46a9-4a4b-9450-58aba7294f31","block_type":"box","text":"basis in the converted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":168,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"96580b92-5fd3-44ec-84f3-844716086572","block_type":"box","text":"holding period for the converted Investor C Shares.","page_number":168,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"8637c3ec-225c-4873-ade1-9ad4af83b597","block_type":"box","text":"If a shareholder of a Fund exercises an exchange privilege within 90 days of acquiring the shares of a Fund, but","page_number":168,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"cb783dcf-f310-4ab8-a032-a39aee0917cf","block_type":"box","text":"on or before January 31 of the following year, then the loss that the shareholder recognizes on the exchange will be","page_number":168,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"b44b86b1-10a1-490f-b4bb-a9a4184f1ca9","block_type":"box","text":"reduced (or the gain increased) to the extent any sales charge paid on the exchanged shares reduces any sales","page_number":168,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"becab316-362e-4e36-b119-1dac4372e4a6","block_type":"box","text":"charge the shareholder would have owed upon the purchase of the new shares in the absence of the exchange","page_number":168,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"d467d1a8-050c-415a-81db-0eac96f0e3d1","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":168,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"d6aa1218-c551-4833-9e09-6cc22ac83de1","block_type":"box","text":"A sale, redemption, or exchange of Fund shares may give rise to a gain or loss. In general, any gain or loss","page_number":168,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"cf76d912-c375-49e7-a486-4155973be2c2","block_type":"box","text":"realized upon a taxable disposition of shares of a Fund will be treated as long-term capital gain or loss if such shares","page_number":168,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"1b0c45ae-1936-4252-9354-313372773d5b","block_type":"box","text":"have been held for more than 12 months. Otherwise, the gain or loss on the taxable disposition of Fund shares will","page_number":168,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"a3404c5b-8c82-4a83-83fe-bf983fe613d6","block_type":"box","text":"generally be treated as short-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":168,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"1638fd48-a7bb-43aa-874a-80ff35ff9672","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than short-term capital loss, to the extent of any","page_number":168,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"095f3bce-6efd-4140-ad64-6df5cb8bea09","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":168,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"dc454a7a-87c0-491f-b9b9-3a62339bb58d","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":168,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"59ba8e2e-cabb-4d5e-bd14-dcbe5214c6c4","block_type":"box","text":"plan described in section 401(a) of the Internal Revenue Code should see the Fund’s Prospectus for a discussion of","page_number":168,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"8a306ce9-6982-4091-8ce0-0dfa14c15ec9","block_type":"box","text":"special tax rules that apply to their investments.","page_number":168,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"67955cac-b7d7-4d49-a946-701ef5f86cd8","block_type":"box","text":"A loss realized on a sale or exchange of shares of a Fund will be disallowed if other substantially identical shares","page_number":168,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"28b76e93-155c-49c4-80f1-dbcdb8f4e03b","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":168,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"d3d18417-c6f0-466a-81e5-4e86ef4f2d87","block_type":"box","text":"30 days before and ending 30 days after the date on which the shares are sold or exchanged. In such case, the","page_number":168,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"4fa8b029-ede8-44fd-9667-355393ac7e72","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":168,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"85c8709e-3faa-47be-91fd-15ada478d642","block_type":"box","text":"A Fund is also generally required by law to report to each shareholder and to the IRS cost basis information for","page_number":168,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"48ce9add-042d-4f49-b5c0-ad44f392054a","block_type":"box","text":"shares of the Fund acquired on or after January 1, 2012, and sold or redeemed after that date. This information","page_number":168,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"14d1665b-8523-4ecc-a96f-67dc7c34d1af","block_type":"box","text":"includes the adjusted cost basis of the shares, the gross proceeds from disposition, and whether the gain or loss is","page_number":168,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"56a5c634-fc5c-410e-8895-2079080987ea","block_type":"box","text":"long-term or short-term. The adjusted cost basis of shares will be based on the default cost basis reporting method","page_number":168,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"191b7201-fd6d-4e8c-acf3-f15b940b3a89","block_type":"box","text":"selected by the Fund, unless a shareholder, before the sale or redemption, informs the Fund that it has selected a","page_number":168,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"752fa5f2-5eaf-4c2f-9d38-580eb6473be7","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":168,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"73c825d1-8c0d-45b8-834c-f8e8b83c025f","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":168,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"e38cd642-f2aa-4ee4-87df-98827cd76a5f","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis reporting","page_number":168,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"fda5954d-c1dd-4512-8574-dad645956496","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":168,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"6748c5cc-ce7a-4914-a9ab-8de455f189fd","block_type":"box","text":"apply, but the Fund will continue to report to the IRS the gross proceeds received by a shareholder from the sale or","page_number":168,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"a1e73cba-ef71-4db1-8758-cbeee0b14409","block_type":"box","text":"redemption of such shares.","page_number":168,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"39a5e3d9-24b9-4070-960d-19ca8654dd44","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute portfolio securities in kind for the","page_number":168,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"e64dd144-8fdb-4a9e-abb9-37ef7385d23d","block_type":"box","text":"purposes of portfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":168,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"4f88d803-b73e-4dfa-bca2-e9e8a32b339c","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the portfolio securities it distributes to the redeeming","page_number":168,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"5774e832-8f14-413a-b37b-adece1b9f89c","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":168,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"b4af0923-66c2-4be8-9ccc-d20662e9b898","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":168,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"97f49dbe-04ae-414b-a38e-2a8dab8b190d","block_type":"box","text":"capital gains as described above, the Funds do not employ a systematic approach to tax management. There is no","page_number":168,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"11094942-1054-4cb2-935f-f551a5a78717","block_type":"box","text":"assurance that a Fund can or will be successful in effecting any redemptions in kind and shareholders should expect","page_number":168,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"773549aa-b342-4cf3-bd90-16daa176ea5d","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":168,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"1b3290a4-ddcd-44f7-9c6c-7bd0d7877965","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":168,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"f6154c02-b1eb-490d-ac7e-419f95d080e9","block_type":"box","text":"agreements. The U.S. federal income tax treatment of a derivative contract may not be as favorable as a direct","page_number":168,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"7e01a26b-443b-483c-a72f-573eb4bc21b0","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":168,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"df71ffc4-5c95-4c3e-bee8-8f5c245b1047","block_type":"box","text":"realizes from its investments. As a result, a larger portion of the Fund’s distributions may be treated as ordinary","page_number":168,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"47dab794-367c-43cb-9d13-7b9165d1fc0d","block_type":"box","text":"II-131","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0c60be41-fe3b-49a4-9639-4a0d66bcac6f","block_type":"box","text":"NM1026U-5993100-168/236","page_number":168,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"95ae59c5-6076-48e7-9fc1-6f13b52638ce","block_type":"box","text":"income rather than capital gains. In addition, section 1256 contracts held by a Fund at the end of each taxable year","page_number":169,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"90776904-3e9e-4b9a-8fb7-3930a03a5511","block_type":"box","text":"(and, for purposes of the 4% excise tax, certain other dates as prescribed under the Code) are generally “marked-to","page_number":169,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"6520f322-3666-42d8-b2ff-99a6b87e46ba","block_type":"box","text":"market,” such that unrealized gains or losses are treated as though they were realized (with such gain or loss being","page_number":169,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"aee5334e-f12c-4665-9e26-287562c8d97a","block_type":"box","text":"considered 60% long-term and 40% short-term capital gain or loss), which may increase the amount that must be","page_number":169,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"6ea72a5f-192b-45ba-b036-769ad144bcdd","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of certain","page_number":169,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"0cf4c6bf-4c97-4984-8482-402352bec966","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":169,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"9d50cee2-545d-41a9-bb51-a67c8d6334a8","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":169,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"98e74436-660a-471f-83b1-b7d7776dc2ee","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":169,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"b01d4261-b559-40c0-a044-3aa7d58954d6","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":169,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"32fa05e6-4d3e-4cee-b597-e0f32b62d51e","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":169,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"67fc4b74-7325-4d7e-a5ba-5a7e96abc73d","block_type":"box","text":"agreements since all the income on a notional principal contract may be ordinary income, whereas 40% of the gain","page_number":169,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"a35ed639-d42a-4aab-bdd3-a4d2d172a483","block_type":"box","text":"on a section 1256 contract is treated as short-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":169,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"6cc556ea-3828-4b88-9efc-155a8b1f3c87","block_type":"box","text":"term capital gain taxed at more favorable rates when distributed to shareholders. The rest is long-term capital gain,","page_number":169,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"25264384-16c4-4da7-a2e2-de9f1504030a","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":169,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"baefc707-8786-4845-9927-5f73a6932611","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":169,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"e9167238-452d-4f67-beee-cd058304a14f","block_type":"box","text":"finalized, these regulations could result in the Fund having to treat more of its income on swap agreements and more","page_number":169,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"e2641d61-b8ef-47aa-8785-d6474bf5870a","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":169,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"cdcd32a2-c303-4b73-9652-174fb0067f99","block_type":"box","text":"Certain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":169,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"b987cff8-06bf-4d94-bcd1-50c5df9dc82a","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":169,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"c2147d72-9ab5-4597-83c2-bd28f3e039b6","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a portion of the excess of the stated redemption","page_number":169,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"56e8a150-377c-4a12-b3e6-658acd75d673","block_type":"box","text":"price of the securities over their issue price (“original issue discount”) each year that the securities are held. Since","page_number":169,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"1cac5bcc-3df8-4582-a22e-212fbc54a0fb","block_type":"box","text":"the original issue discount income earned by a Fund in a taxable year may not be represented by cash income, the","page_number":169,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"e6abb193-949f-41de-aad3-63daec06546e","block_type":"box","text":"Fund may have to dispose of securities, which it might otherwise have continued to hold, or borrow to generate cash","page_number":169,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"a5d62b70-e861-4ec4-b219-887514731706","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":169,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"58178abf-bbbe-48bb-a877-b1b1e370d7cf","block_type":"box","text":"currency denominated or referenced debt securities, certain asset-backed securities and contingent payment and","page_number":169,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"3bd059d2-2cca-465e-bd6d-2d76d01cf9b9","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":169,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"07247e12-bf7d-4012-88c9-dd010680fe17","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":169,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"a3d44fa5-0614-47a9-be12-defc841092b6","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or certain foreign currency options, futures","page_number":169,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"e78bfa66-b744-4c0a-8682-67315178fde8","block_type":"box","text":"contracts or forward contracts (or similar instruments) may give rise to ordinary income or loss to the extent such","page_number":169,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"97423b85-67cc-48ed-bb0f-3b00e5c9ca38","block_type":"box","text":"income or loss results from fluctuations in the value of the foreign currency concerned. Any such net gains could","page_number":169,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"3bfbee02-1b11-44ae-b7ea-71995c0ad025","block_type":"box","text":"require a larger dividend toward the end of the calendar year. Any such net losses will generally reduce and","page_number":169,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"edcfb518-8336-4f30-afd6-43fe4d9a43b4","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":169,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"d8cd4059-6554-49f8-860c-885aaf34a7bd","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":169,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"f290d18c-d2da-4503-8bc0-a31d0231e746","block_type":"box","text":"income. Any net ordinary losses so created cannot be carried forward by the Fund to offset income or gains earned","page_number":169,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"411b492e-d851-4693-bafc-c9930e870dce","block_type":"box","text":"in subsequent taxable years.","page_number":169,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"607685ac-6a6d-4d53-bb94-1c9be4c23dc0","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":169,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"66889904-2f45-4f91-b6e3-3fb5b0d275c9","block_type":"box","text":"through entities to the extent owned by U.S. persons) generally will be subject to a 30% U.S. withholding tax under","page_number":169,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"7bbd505b-a4e4-4cfa-9b35-af3157036253","block_type":"box","text":"existing provisions of the Code applicable to foreign individuals and entities unless a reduced rate of withholding or a","page_number":169,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"dcb3f8e4-50fd-4e46-8963-a5fe48650912","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":169,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"62883d68-870a-410e-bf82-0604b2766bab","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly reported as capital gain dividends, generally will","page_number":169,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"cac8159b-f29b-477d-89f5-8fd853ec24a6","block_type":"box","text":"not be subject to a 30% withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":169,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"d48dab21-2291-46b0-8ba5-7515af7ea7f8","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original issue","page_number":169,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"3fa74e79-678b-43f2-9075-48712ec54699","block_type":"box","text":"discount and market discount) and paid to shareholders who are nonresident aliens or foreign entities, if and to the","page_number":169,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"f1dca795-88d4-429c-8a62-95d1de7255b0","block_type":"box","text":"extent properly reported as “short-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":169,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"0188ac33-65dd-4da2-92b4-a97292cc92f5","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to report such dividends as interest","page_number":169,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"10e32648-77ca-48d9-8637-fd517a8a2a5b","block_type":"box","text":"related dividends or short-term capital gain dividends. However, depending on its circumstances, a Fund may report","page_number":169,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"51a393c6-ab28-4b7b-a0c5-52f4ef148c07","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as short-term capital gain dividends, and/","page_number":169,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"adb38eea-8b8b-4ac6-b62f-70362380ca9d","block_type":"box","text":"or treat such dividends, in whole or in part, as ineligible for this exemption from withholding. In order to qualify for","page_number":169,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"fb80ab01-8fe1-4e08-9be2-c88e585c902c","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification requirements","page_number":169,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"7ff9b01b-98c8-4774-8286-fda4bbc4b4a2","block_type":"box","text":"relating to its foreign status (including, in general, furnishing an IRS Form W-8BEN, IRS Form W-8BEN-E or substitute","page_number":169,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"66d2bd6c-7e36-4304-9d7b-c73495db630d","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund reports the","page_number":169,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"4aa48b49-6752-49f0-8a77-83f2ccf7aa76","block_type":"box","text":"payment as an interest-related or short-term capital gain dividend. Foreign shareholders should contact their","page_number":169,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"1462a10a-10af-4557-a0e9-563a86d27227","block_type":"box","text":"intermediaries with respect to the application of these rules to their accounts. It is not possible to predict what","page_number":169,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"acea77ba-cdff-4059-aba8-20466b06816a","block_type":"box","text":"portion, if any, of a Fund’s distributions will be reported as interest-related dividends or short-term capital gain","page_number":169,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"05e929f2-6f7b-46f2-9c38-8d20b56aabaa","block_type":"box","text":"dividends under these rules.","page_number":169,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"9ee402f0-7dbc-4a25-97b0-29cd638f7cf5","block_type":"box","text":"II-132","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1a960840-53bf-41ec-b325-61fb424d31e1","block_type":"box","text":"NM1026U-5993100-169/236","page_number":169,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"33c3b5c7-9a34-4bf6-bf53-5d26c4847b80","block_type":"box","text":"Distributions to certain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":170,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"a1f63976-6f66-47c2-84e1-8150f4ceeee9","block_type":"box","text":"property interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":170,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"377b20a3-c303-402c-be99-2428942d41c7","block_type":"box","text":"the date of the distributions, to the extent the distributions are attributable to gains from sales or exchanges of U.S.","page_number":170,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"cf150513-3699-4741-84a2-e83ea7ebbcfa","block_type":"box","text":"real property interests (including shares in certain “U.S. real property holding corporations” such as certain REITs,","page_number":170,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"add9d4d0-bcd7-4d8a-bea6-150dcbb1b53e","block_type":"box","text":"although exceptions may apply if any class of stock of such a corporation is regularly traded on an established","page_number":170,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"eb050334-d3aa-4af9-8db8-23ccdc1a5a1a","block_type":"box","text":"securities market and the Fund has held no more than 5% of such class of stock at all times during the five-year","page_number":170,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"f90556b8-5508-4829-8025-1ebe6afe1ace","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":170,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"52bbfe92-a40a-4dbd-a5bd-13689026d1c6","block_type":"box","text":"effectively connected to a trade or business within the United States, which is generally subject to tax at the","page_number":170,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"4d0edf25-c16c-4949-918f-c2b129503667","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":170,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"e7e74435-2b20-422c-b330-f7ef8373e912","block_type":"box","text":"than 5% of any class of stock of the Fund at all times during the previous one-year period ending on the date of the","page_number":170,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"2dfef168-8c40-4ba6-aa44-889a580eb7b4","block_type":"box","text":"distributions. Such distributions will be subject to U.S. income and withholding tax and generally will require a foreign","page_number":170,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"76c9552a-811a-47a2-8aa9-e1f81a4f386f","block_type":"box","text":"shareholder to file a U.S. federal income tax return. If the foreign shareholder held no more than 5% of any class of","page_number":170,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"ee97f89f-c7c8-4f1d-b88f-b92152ac98fa","block_type":"box","text":"stock of the Fund at all times during the previous one-year period ending on the date of the distributions, the","page_number":170,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"92c4e3a3-e41c-4f11-a271-85b14403d04e","block_type":"box","text":"distributions will be taxable as ordinary dividends and subject to withholding at a 30% or lower treaty rate. In addition,","page_number":170,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"fe349fdf-acf3-4df6-81be-6feacfabbbf1","block_type":"box","text":"sales or redemptions of shares held by certain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":170,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"4eb5629b-9725-47b6-ad86-7e91fcbf5f67","block_type":"box","text":"income and withholding tax and generally will require the foreign shareholder to file a U.S. federal income tax return,","page_number":170,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"fe7ea319-41aa-496e-a2c7-606e4e03164b","block_type":"box","text":"although exceptions may apply if more than 50% of the value of the Fund’s shares are held by U.S. shareholders or","page_number":170,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"01b25517-c4f1-4936-bb1d-b39e0041d1ae","block_type":"box","text":"the foreign shareholder selling or redeeming the shares has held no more than 5% of any class of stock of the Fund","page_number":170,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"fbb4311a-35e6-41bc-b2ed-cbed427f7ae1","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":170,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"9f92e4bf-f36b-4565-9c2f-1ad9375c661d","block_type":"box","text":"Provided that more than 50% of the value of a Fund’s stock is held by U.S. shareholders, redemptions and other","page_number":170,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"b6b0c713-0442-4372-8310-96a49bc8492e","block_type":"box","text":"distributions made in the form of U.S. real property interests (including shares in certain “U.S. real property holding","page_number":170,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"68c25f56-0ace-47f7-b09a-62d18519bcc1","block_type":"box","text":"corporations”, although exceptions may apply if any class of stock of such a corporation is regularly traded on an","page_number":170,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"2764e7fe-aa06-4fee-87c8-5ebddeb0442f","block_type":"box","text":"established securities market and the Fund has held no more than 5% of such class of stock at all times during the","page_number":170,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"4ca8c40e-5a60-4277-980f-632ade45f0a2","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a portion of any","page_number":170,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"1b0884bf-d3cf-4cab-98b7-e81ff2e634dc","block_type":"box","text":"unrecognized gain in the U.S. real property interests equal to the product of (i) the excess of fair market value of","page_number":170,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"6d720742-1c17-4910-ac48-90a9caeb9192","block_type":"box","text":"such U.S. real property interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":170,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"20885243-5a9c-44ef-ada6-4db14a286289","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":170,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"ee14e487-0793-4cc2-807a-660e4a2c0476","block_type":"box","text":"A foreign shareholder may also be subject to certain “wash sale” rules to prevent the avoidance of the tax filing","page_number":170,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"ee61b4d9-f517-484e-9a16-898c6e523a04","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":170,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"82262646-15d0-407d-9b14-a4323a97b4f8","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":170,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"02e06d58-42d4-448c-a004-301737b2eec3","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":170,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"1765fe15-9414-4491-b7ab-cc7ef1621e76","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":170,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"b01f4f59-cdd6-4a06-90c8-bf60ffa0c584","block_type":"box","text":"items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other foreign entities. To","page_number":170,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"18f6c02e-7dee-4a87-a7ee-1ed906d3d83b","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":170,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"8b953b27-4fae-44fc-9086-b49d255c757a","block_type":"box","text":"report to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":170,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"98604a42-faa4-4907-9f86-850939741b28","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on certain payments made to noncomplying","page_number":170,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"2c55298c-f0dd-4ba9-96cb-4cb599119b8e","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":170,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"caf47cf8-5b76-4bb4-b75b-1d5a9cefdb5b","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":170,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"7d9af522-aa72-4856-bac3-e7d1619d1a39","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or certify there are no such owners.","page_number":170,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"8ef01447-53ad-44ff-a2e9-8191feda46c6","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":170,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"ec8defb3-096d-4808-8d25-9f7defd75e77","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":170,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"9832b845-4c0a-4332-ab38-d8ae7cee48b7","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no certified taxpayer identification number","page_number":170,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"441be8c4-23d6-49a4-aa86-238935969bdd","block_type":"box","text":"is on file with the Fund or who, to the Fund’s knowledge, have furnished an incorrect number. When establishing an","page_number":170,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"5c851c78-776a-4201-939f-933a2ba5d087","block_type":"box","text":"account, an investor must certify under penalty of perjury that such number is correct and that such investor is not","page_number":170,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"b1221305-d3f1-4f68-a80e-750c224f7b3a","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":170,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"c5679757-4258-4f07-bd75-976465386cb3","block_type":"box","text":"may be allowed as a refund or a credit against a shareholder’s U.S. federal income tax liability, provided that the","page_number":170,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"cc0feb43-67d4-49d5-9774-62c80d5482a2","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":170,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"22a4d951-3d6b-4e82-9ede-5e8976b6a105","block_type":"box","text":"If a shareholder recognizes a loss with respect to a Fund’s shares of at least $2 million in any single taxable","page_number":170,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"e7c426c4-ed5f-4e3b-8b72-ef011f893199","block_type":"box","text":"year or $4 million in any combination of taxable years for an individual shareholder or $10 million in any single","page_number":170,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"aad635c1-9cdf-41e2-9105-971debe532d6","block_type":"box","text":"taxable year or $20 million in any combination of taxable years for a corporate shareholder in any single taxable year,","page_number":170,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"afa80f2b-78df-41ec-816c-04fb75cd8609","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of portfolio","page_number":170,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"31f92ad8-508f-4245-84e0-86ca572e4a92","block_type":"box","text":"securities are in many cases exempted. That a loss is reportable under these regulations does not affect the legal","page_number":170,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"9ec76639-29e0-428c-ad0a-5d920d41487c","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":170,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"5e1694c9-0b50-4733-a830-e9757480aabc","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":170,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"3acb8007-efff-49ec-9aa9-8af1fd3b40d3","block_type":"box","text":"II-133","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"430f86bd-cd30-42ed-92d8-d2cf10aad42e","block_type":"box","text":"NM1026U-5993100-170/236","page_number":170,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6f8d1e7a-98b3-416c-8b57-9297e1c8b905","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits, taxable","page_number":171,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"40b791ca-01ac-47c0-b528-4a54c7e93fec","block_type":"box","text":"mortgage pools or other investments may cause the Fund to report some or all of its distributions as “excess","page_number":171,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"53346916-59ff-4671-b5fe-22b1a006e2a4","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":171,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"f857f7cb-95b5-49a0-adfc-352d26de697d","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":171,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"779c35ce-794b-447c-8f07-3aaeaaff3556","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable entities; (ii) not","page_number":171,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"4910aab1-74db-46af-b25c-8ae179c81220","block_type":"box","text":"be offset by otherwise allowable deductions for tax purposes; (iii) not be eligible for reduced U.S. withholding for non","page_number":171,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"6c15ea33-5201-46c8-9244-ee4217cad8a4","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if certain “disqualified","page_number":171,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"a000c5c5-737c-4271-ba3a-35401947892c","block_type":"box","text":"organizations,” as defined by the Code, are Fund shareholders. The Fund tries to avoid investing in REITs that are","page_number":171,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"74589a41-b7b8-43f2-979c-db714ddf318f","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":171,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"f9c74585-fad9-4dcc-bd4f-c77261fd47bf","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":171,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"7cad99d8-ca2c-4327-8a7c-81ca60163e66","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":171,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"53a83d0a-c7b0-4051-9219-ae7173eef0de","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":171,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"3a368f71-0562-41a2-afef-9b3743983e74","block_type":"box","text":"investment opportunities.","page_number":171,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"3f9e548d-0226-4057-9176-51f51fd5680a","block_type":"box","text":"Dividends and interest received and capital gains realized by a Fund may give rise to withholding and other taxes","page_number":171,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"557afc8e-735e-4c72-89c6-671be77aa4e6","block_type":"box","text":"imposed by foreign countries. Tax conventions between certain foreign countries and the United States may reduce or","page_number":171,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"ccb38bce-7f87-42ee-8117-2c93703b5236","block_type":"box","text":"eliminate such taxes. Shareholders of a Fund more than 50% by value of the assets of which at the close of a taxable","page_number":171,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"1435d719-e1b7-4062-82bb-729125ed5931","block_type":"box","text":"year are foreign securities may be able to claim U.S. foreign tax credits with respect to such foreign taxes paid by the","page_number":171,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"1f97a388-571d-4039-b286-e159b5824f01","block_type":"box","text":"Fund, subject to certain requirements and limitations contained in the Code. For example, certain retirement","page_number":171,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"eef3d54f-04e6-49b1-8039-d1c622d4b5f4","block_type":"box","text":"accounts and certain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":171,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"c2e7822e-1ae2-4ffa-9588-238c59062d80","block_type":"box","text":"held in a Fund. In addition, a foreign tax credit may be claimed with respect to withholding tax on payments with","page_number":171,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"6f76665b-18a0-493e-aa03-ccb0307c3cad","block_type":"box","text":"respect to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":171,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"5bd48afb-31ac-447e-ad00-b49a9e6e7606","block_type":"box","text":"shareholder and the Fund must meet these holding period requirements, and if a Fund fails to do so, it will not be","page_number":171,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"9aa12fe6-c82a-4a0c-8043-e483238c132f","block_type":"box","text":"able to “pass through” to shareholders the ability to claim a credit or a deduction for the related foreign taxes paid by","page_number":171,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"e49db5a0-24db-4a98-a83c-c1ba69cb7707","block_type":"box","text":"the Fund. Further, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":171,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"7638bc59-7061-450f-ad1d-8a8c07a37d98","block_type":"box","text":"subject to foreign taxes, it may not be able to pass through to its shareholders the ability to take a foreign tax credit","page_number":171,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"3296edeb-9bd5-4fc5-8079-b18805daf617","block_type":"box","text":"for those taxes. If a Fund satisfies the applicable requirements, such Fund will be eligible to file an election with the","page_number":171,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"788cd480-f4e0-448c-b5af-7a8dac3b59fc","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their proportionate shares of such foreign","page_number":171,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"a659bb12-af3e-48bb-81da-d6cba76b446c","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such proportionate shares as taxes paid by them, and","page_number":171,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"73abf9b3-6e07-4785-aef9-0125504c1fed","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":171,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"b8328a9f-e644-48d0-9ee7-969579e35992","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":171,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"52c086e9-99e8-4da5-aa53-9c347c0d24cc","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":171,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"5e8f1f3b-378c-4d36-b5dc-5ea5b03dbeea","block_type":"box","text":"corporation may be subject to U.S. withholding tax on the income resulting from a Fund’s election described in this","page_number":171,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"de670347-4b9d-4b57-ac75-c619395c71d9","block_type":"box","text":"paragraph but may not be able to claim a credit or deduction against such U.S. tax for the foreign taxes treated as","page_number":171,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"8b033073-b151-4e4d-83af-d844b2a84a93","block_type":"box","text":"having been paid by such shareholder. A Fund will report annually to its shareholders the amount per share of such","page_number":171,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"c2f4c047-a9cd-4c0c-ba1b-677c80c66000","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":171,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"5095e2e1-bcdc-46e4-800d-4e9378b66ef3","block_type":"box","text":"Certain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":171,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"33af4e72-3cb9-481f-88d9-a7378b786094","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":171,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"fdbde13e-bb2e-4439-b1f8-43b08e3812d3","block_type":"box","text":"allowance of certain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":171,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"f8764a88-8621-4a15-90f1-a580f29d8837","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":171,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"8e6e1437-18ed-47c5-b1c5-a7fab9d9abdb","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":171,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"f0c71555-bb33-4ae7-bab3-8dfada697ad2","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market certain types of","page_number":171,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"d261a808-d556-4c62-82bb-b5a00c8c4f29","block_type":"box","text":"positions in its portfolio (","page_number":171,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"3d7d1149-6cb2-42c2-8fe9-4f7ea145b823","block_type":"box","text":"i.e.","page_number":171,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"0fca4043-6706-43f8-adae-20051c6cba0d","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":171,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"7b31b928-dde4-41c0-8c9d-955fc28285e9","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":171,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"27e3bc18-38c7-4ba3-9bc1-02aa73e218e3","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":171,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"fe40ed17-4b27-4821-bc8d-5969b7b4b1eb","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":171,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"4004de38-55ea-4d00-9538-a09bb5a26a3c","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":171,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"577ca860-d3ec-4b8d-a42d-f776c2e3eac2","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":171,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"d3ee9c9e-47c5-487e-bfed-94cf42fa72fb","block_type":"box","text":"any of the Fund’s transactions in foreign currencies and hedging activities, are likely to produce a difference between","page_number":171,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"0af55dd7-1065-45f9-9aed-0671fb66d329","block_type":"box","text":"its book income and the sum of its taxable income and net tax-exempt income (if any). If such a difference arises,","page_number":171,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"c9706194-2186-43d8-8a96-74f1a7ef8238","block_type":"box","text":"and the Fund’s book income is less than the sum of its taxable income and net tax-exempt income, the Fund could","page_number":171,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"36c1995d-b57b-4545-9683-7749a1fad3a2","block_type":"box","text":"be required to make distributions exceeding book income to qualify as a RIC that is accorded special tax treatment","page_number":171,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"61b7b32a-dfd6-4701-b852-a6d22223e3a7","block_type":"box","text":"and to avoid an entity-level tax. In the alternative, if the Fund makes any distribution based on book income and such","page_number":171,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"0fa04e70-a802-4b20-85eb-64841b4581e0","block_type":"box","text":"book income exceeds the sum of its taxable income (including realized capital gains) and net tax-exempt income, the","page_number":171,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"db5262fb-390f-4288-8141-c0b84f503488","block_type":"box","text":"distribution (if any) of such excess generally will be treated as (i) a dividend to the extent of the Fund’s remaining","page_number":171,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"e22a020e-aca8-414e-adb6-08bdb0eeeff6","block_type":"box","text":"II-134","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f71ada13-659c-4c15-9375-d0d93584a438","block_type":"box","text":"NM1026U-5993100-171/236","page_number":171,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6d5b21d0-ea0c-49b1-bb90-7643a8a233f5","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":172,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"9c211eb0-b305-41c5-945c-95a2212ec48b","block_type":"box","text":"capital to the extent of the recipient’s basis in its shares, and (iii) thereafter as gain from the sale or exchange of a","page_number":172,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"06374816-347b-45ec-97fc-d47244edd6d9","block_type":"box","text":"capital asset.","page_number":172,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"ae5ba0b9-c9a7-477a-b124-8df0ef140412","block_type":"box","text":"If a Fund invests in underlying funds, the Fund’s realized losses on sales of shares of underlying funds may be","page_number":172,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"d1dbd397-cd9c-4c81-a33b-0cc637964bc6","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains by underlying funds will","page_number":172,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"aea11976-2f7a-473d-9d20-e9fdd150c4d7","block_type":"box","text":"be recognized as ordinary income by the Fund and would not be offset by the Fund’s capital loss carryforwards, if","page_number":172,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"4793409b-de99-4bd1-a73d-b807eac61f68","block_type":"box","text":"any. Capital loss carryforwards of underlying funds, if any, would not offset net capital gains of the Fund. Each of","page_number":172,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"33af6e87-123a-49af-a295-6a2c173a163f","block_type":"box","text":"these effects is caused by the Fund’s expected investment in the underlying funds and may result in distributions to","page_number":172,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"bb257481-2b3a-4a83-ae30-317d9aa891e4","block_type":"box","text":"Fund shareholders being of higher magnitudes and less likely to qualify for lower capital gain tax rates than if the","page_number":172,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"f1d76c25-d48c-4c8a-877e-ab50134da414","block_type":"box","text":"Fund were to invest otherwise.","page_number":172,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"ddd55baf-63e8-430f-9448-9a8ba551d973","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":172,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"f1064eed-de7e-440b-968f-1503d76b4383","block_type":"box","text":"“Subsidiary”). It is expected that the Subsidiary will be a “controlled foreign corporation” and that all of its net","page_number":172,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"f9e362ea-60d1-405f-8eec-4f6b171f8aa4","block_type":"box","text":"income will be “subpart F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":172,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"8e8ab9bc-0356-4aaf-b853-f5eb08604dc0","block_type":"box","text":"to report all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":172,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"fd1cd035-de55-4ab9-b67d-96bf4688c582","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":172,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"4a4f4374-d4f4-4c35-81ed-1ab445b71a35","block_type":"box","text":"to the Fund. (Previously taxed income will not, however, be taxable again when distributed.) If a net loss is realized by","page_number":172,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"a047cf15-8a96-4473-b40d-baad8ed95553","block_type":"box","text":"the Subsidiary in any taxable year, the loss will generally not be available to offset the Fund’s other income. It is not","page_number":172,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"6d61e86b-bad5-4bd8-9818-24ab54d058df","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":172,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"44c156eb-cd88-4a5e-b0b7-65bc0e1701f0","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":172,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"56ac8677-e79d-4e6d-b71c-cb621dd7f7f4","block_type":"box","text":"the Fund will generally be treated as owning shares in a passive foreign investment company (“PFIC”) for U.S. federal","page_number":172,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"d58f3572-5640-43cb-9853-35e5ec38f7e3","block_type":"box","text":"income tax purposes. A Fund may be subject to U.S. federal income tax, and interest charges (at the rate applicable","page_number":172,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"5fceadc6-a638-4e24-83c7-b029ac5d3e85","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to certain distributions from such","page_number":172,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"07727766-8bf6-4de2-a654-20f8c0768fba","block_type":"box","text":"a company and on gain from the disposition of the shares of such a company (collectively referred to as “excess","page_number":172,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"ad0d6488-587c-4cf0-8a2a-8a62aa529060","block_type":"box","text":"distributions”), even if such excess distributions are paid by the Fund as a dividend to its shareholders. However, a","page_number":172,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"12a41a9b-a379-466a-bfb8-0cce98a2e4b7","block_type":"box","text":"Fund may elect to “mark-to-market” at the end of each taxable year shares that it holds in PFICs. The election is","page_number":172,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"f0ce3f6d-eea1-4e12-8903-1312c8b787fd","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":172,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"372b53e8-0f36-4d84-8f96-60d48822bda7","block_type":"box","text":"revoked with consent from the IRS. Under this election, a Fund would recognize as ordinary income any increase in","page_number":172,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"a76eba1e-c3b2-4f9d-9e87-f3721f24b076","block_type":"box","text":"the value of its shares as of the close of the taxable year over their adjusted tax basis and as ordinary loss any","page_number":172,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"9ac630f7-b596-4ee3-902d-ea1586321beb","block_type":"box","text":"decrease in such value, but only to the extent of previously recognized “mark-to-market” gains. By making the mark","page_number":172,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"8003361a-9e6f-4be4-a91f-a0d07167cb51","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":172,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"b7ae674d-5291-4845-9f98-4ba2a789517f","block_type":"box","text":"PFICs, but in any particular year might be required to recognize income in excess of the distributions it received from","page_number":172,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"0da57aee-19b3-4af8-83dd-1f7707c0ca58","block_type":"box","text":"PFICs.","page_number":172,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"45ed7e69-4053-4f42-94a6-2fddfa6866e2","block_type":"box","text":"If a Fund were to invest in a PFIC and elect to treat the PFIC as a “qualified electing fund” under the Code, in lieu","page_number":172,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"ce759d84-4a3b-4f3d-b421-a7db0b5ea341","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a portion of the ordinary","page_number":172,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"b4bec7b5-e317-4e7c-b3b4-8edf0a020010","block_type":"box","text":"earnings and net capital gains of the qualified electing fund, even if not distributed to the Fund, and such amounts","page_number":172,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"ff657c58-4250-406c-a3a8-c34e8de0ae29","block_type":"box","text":"would be subject to the 90% and excise tax distribution requirements described above. In order to make this election,","page_number":172,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"34aa599f-1701-4b78-8b2b-8ca5f9f551c9","block_type":"box","text":"the Fund would be required to obtain certain annual information from the PFICs in which it invests, which may be","page_number":172,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"8774273f-baac-4e98-bb0c-505d9bb68c27","block_type":"box","text":"difficult or impossible to obtain.","page_number":172,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"4bfe262f-2123-4c6f-9bc0-bd9c44f0becc","block_type":"box","text":"In certain situations, a Fund may, for a taxable year, defer all or a portion of its net capital loss (or if there is no","page_number":172,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"628d5139-5fb3-4c7e-99a5-06e20e9e6656","block_type":"box","text":"net capital loss, any net long-term or short-term capital loss) realized after October and its late-year ordinary loss","page_number":172,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"d223bb33-35cb-4a39-a77d-8e3b40edccea","block_type":"box","text":"(defined as the sum of the excess of post-October foreign currency and PFIC losses over post-October foreign","page_number":172,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"708de859-8192-4a3f-ba08-71e00eb85443","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":172,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"f69246fd-a516-44df-a6c8-2651cce0f55c","block_type":"box","text":"the next taxable year in computing its investment company taxable income and net capital gain, which will defer the","page_number":172,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"dc5dc115-0ab4-4ebb-a7d7-c576c3f25fd7","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":172,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"4ac286eb-834f-4621-becf-bd51787a5428","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":172,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"cc51a9a3-1ff1-4bab-981f-56b093e5f673","block_type":"box","text":"Municipal Funds","page_number":172,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"3960f633-6bee-4982-ac82-ffd07c8602a0","block_type":"box","text":"Each Municipal Fund intends to qualify to pay “exempt-interest dividends” as defined in Section 852(b)(5) of the","page_number":172,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"126809ef-4a8c-450f-8c8e-77d9306872bf","block_type":"box","text":"Code. Under such section if, at the close of each quarter of a Fund’s taxable year, at least 50% of the value of the","page_number":172,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"a09d63c5-a44d-450f-8129-d0bb33729149","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":172,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"356f5a3e-7b04-47ad-a5c7-f65d1901ce87","block_type":"box","text":"Section 103(a) of the Code (relating generally to obligations of a state or local governmental unit), the Fund shall be","page_number":172,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"d2ba0c4a-7e2c-4414-945a-33d098548814","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":172,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"32d8b19c-8d6e-411e-9bc9-8907eecc7b95","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any part thereof paid by a Fund that are attributable to","page_number":172,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"b40793dc-0a02-4df7-917a-af826f754509","block_type":"box","text":"interest on tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":172,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"516fed67-0dc9-460d-9ecf-87cfa889cf99","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":172,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"9913a5e9-6352-48c0-857a-a46c83bc2779","block_type":"box","text":"II-135","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6d12360b-5768-4647-a152-3e67bf398541","block_type":"box","text":"NM1026U-5993100-172/236","page_number":172,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c0d76a04-033b-4ff9-8c06-66d3437de4db","block_type":"box","text":"below) among the Fund’s shareholders according to a method (that it believes is consistent with the Commission rule","page_number":173,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"6d94e72b-c818-4343-b7c5-2789752dfba4","block_type":"box","text":"permitting the issuance and sale of multiple classes of shares) that is based upon the gross income that is allocable","page_number":173,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"12400500-7d2e-4ea8-b758-821d28c49639","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":173,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"9272f20f-a3de-4748-b237-a839248e6e37","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":173,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"ceb45e93-adca-4a9a-8160-5566ef1d0d74","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the portion, if any, of a person’s social","page_number":173,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"6b54294e-f44a-495c-9c97-3b0a7656c398","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":173,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"f01c8189-cfe9-4c17-8309-2b350d55a6e5","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":173,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"9ad1fb20-8a9a-4381-855d-55004969dcd5","block_type":"box","text":"the Fund, will not be deductible by the investor for U.S. federal income tax purposes to the extent attributable to","page_number":173,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"a1945fd3-0a0d-4911-af87-b865473d5f17","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":173,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"f2d54564-da1f-4e15-b2db-e020eba82513","block_type":"box","text":"interest dividends retain the exclusion under Code Section 103(a) if a shareholder would be treated as a “substantial","page_number":173,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"01e18d8d-fb3e-49bf-99ce-b8bc013d3aac","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to property financed with the proceeds of an issue","page_number":173,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"77ad7766-5fd7-449a-bf9f-868832cc6fe2","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":173,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"c62168a8-db3e-4c53-81e8-393fcc14b06e","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":173,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"e26a47df-0f7a-46fe-b618-672b2ef83dfb","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":173,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"5528e13c-6a57-486e-8555-da226407e678","block_type":"box","text":"constitute exempt-interest dividends.","page_number":173,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"b23056c8-2ad0-49a1-a4c4-6f811a52d9ff","block_type":"box","text":"Distributions in excess of a Fund’s earnings and profits will first reduce the adjusted tax basis of a holder’s","page_number":173,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"f5f896f0-0d7a-4702-8ce4-d2cf21cd53ee","block_type":"box","text":"shares and, after such adjusted tax basis is reduced to zero, will constitute capital gains to such holder (assuming","page_number":173,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"fc381a29-5c51-448b-a8de-37e55db186a4","block_type":"box","text":"the shares are held as a capital asset). Any loss upon the sale or exchange of Fund shares held for six months or","page_number":173,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"f55c6377-c8b3-4a3f-88c2-1c1ca980ffdf","block_type":"box","text":"less will be disallowed to the extent of any exempt-interest dividends received by the shareholder. In addition, any","page_number":173,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"9f93ff29-cf73-4e1e-a0bc-264e2eb8fb3e","block_type":"box","text":"such loss that is not disallowed under the rule stated above will be treated as long-term capital loss to the extent of","page_number":173,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"0ce4787e-5a89-4ed0-b644-5effd3931f83","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":173,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"0631984b-62e3-4b0a-b66f-0aa8284ab9cd","block_type":"box","text":"All or a portion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":173,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"ba4acd08-d5d0-4ad0-b126-117f1a7a8a5f","block_type":"box","text":"discount will be treated as ordinary income rather than capital gain. This rule may increase the amount of ordinary","page_number":173,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"0dece950-9de7-4d70-8c8c-7dc9006e9469","block_type":"box","text":"income dividends received by shareholders.","page_number":173,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"865ff17f-bb14-455b-b733-dc67ea56f142","block_type":"box","text":"Any market discount recognized on a bond is taxable as ordinary income. A market discount bond is a bond","page_number":173,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"32a4c532-43b5-43cd-af30-ca5699bbd4cb","block_type":"box","text":"acquired in the secondary market at a price below redemption value or adjusted issue price if issued with original","page_number":173,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"c334a73d-d3f7-4fd3-9fce-bf724fe2bb91","block_type":"box","text":"issue discount. Absent an election by the Fund to include the market discount in income as it accrues, gain on the","page_number":173,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"132eb6c3-6c84-456a-9ae2-5a6954daa764","block_type":"box","text":"Fund’s disposition of such an obligation will be treated as ordinary income rather than capital gain to the extent of","page_number":173,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"9100418a-a6ee-4a49-9482-e6f9776feacb","block_type":"box","text":"the accrued market discount.","page_number":173,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"d3c39b24-ecde-4c6b-b349-8c5bee1b7619","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative minimum","page_number":173,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"ab88debc-f8ac-4775-880b-937443a1c034","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on certain “PABs” issued after August 7, 1986. PABs","page_number":173,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"7a3bc672-c81f-46fd-9c83-fb4a8e75e756","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally performed by governmental","page_number":173,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"8961c4d6-79c6-4fc1-a65d-f24fe4d15abf","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":173,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"72213936-d498-4c77-a863-c919a1af1710","block_type":"box","text":"e.g.","page_number":173,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"728a7abd-9ab2-42dc-aa96-8e57be9edade","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":173,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"5726882d-13b1-4e41-bd2c-c3fe340440eb","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject certain investors in","page_number":173,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"6c88ccc7-a46b-4c25-a248-09a4be6008d0","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":173,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"f9b3c1b4-2dc2-4ec6-8cce-7d805bb45ddf","block_type":"box","text":"“PABs” and will report to shareholders after the close of the calendar year the portion of the Fund’s dividends","page_number":173,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"30f95bf4-f42c-45c8-9a7f-cfd22ac096e0","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":173,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"5576c058-d324-4b7c-909f-4734e3970c7f","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":173,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"f23a4057-3cdf-4e1f-8ffc-d4097a306140","block_type":"box","text":"the taxation of interest rate swaps are not entirely clear and may require a Fund to treat payments received under","page_number":173,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"3a3d6e0b-9b20-4452-861c-808b3c369449","block_type":"box","text":"such arrangements as ordinary income and to amortize payments made under certain circumstances. Because","page_number":173,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"9831f053-ef1c-45e2-b871-39c0d62c2112","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":173,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"364da6a7-9431-4a31-ac50-e904060d7036","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income proportionately, they","page_number":173,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"ee93b608-fc8b-464b-84ee-453ce05605b3","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":173,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"12406b7d-fcf4-49e2-993b-7814aacd1659","block_type":"box","text":"Please see Part I of your Fund’s SAI for certain state tax information relevant to an investment in BlackRock","page_number":173,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"e32ccaae-0332-4324-9e25-558c44a86c41","block_type":"box","text":"California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":173,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"d4571d03-9536-4b13-9b3c-015786e73882","block_type":"box","text":"Opportunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":173,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"b086a1da-7a8b-462f-b88a-94fcda9fbf90","block_type":"box","text":"within each applicable state.","page_number":173,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"7c614971-1968-4881-a3b4-b48138eea970","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Portfolio in","page_number":173,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"cb3c2dfb-6164-4187-b7ea-12dabe4fca47","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":173,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"028f8d18-e57a-4b20-80f6-6bbc6c57b16c","block_type":"box","text":"investment companies. Each Master Portfolio is classified either as a partnership or a separate disregarded entity","page_number":173,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"5f3137bf-cf30-4cd2-8d2f-08f71c22eb81","block_type":"box","text":"(depending on the particular Master Portfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":173,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"6bbe2665-6358-42ef-bed8-159f94f0d5e3","block_type":"box","text":"to change the classification of a Master Portfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":173,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"d0bc4dda-e4fb-47c3-a312-ad8b4fac1d5a","block_type":"box","text":"its discretion, the appropriate course of action for the Feeder Fund. One possible course of action would be to","page_number":173,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"f206993b-266a-44a7-adac-1708f09a3640","block_type":"box","text":"II-136","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"95062127-4253-498b-af03-cf2140cbdf6d","block_type":"box","text":"NM1026U-5993100-173/236","page_number":173,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ae337c09-d285-4578-b9bb-8e0d7991dfe5","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to manage","page_number":174,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"0e010df9-dc1b-44ff-a08b-061acfe3c6ac","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":174,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"bcbe2496-54c7-4ba1-a899-80acbad08a1e","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states exempt","page_number":174,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"03c8eaf1-7256-493b-9953-aa6e39f36cad","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":174,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"6c47b879-26fa-44e8-8c3b-def5f8d7a2b8","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":174,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"024a3ca5-5f98-4ad9-afab-c82cd4b383e8","block_type":"box","text":"exempt from state income tax.","page_number":174,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"35c61b1d-4f75-432e-ba5d-5cd87704066e","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":174,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"62a0e92a-04da-401d-bb1d-d9000f90fa12","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":174,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"e053e083-7666-4dc1-a1fb-7ae7e5f9cc48","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":174,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"176f39b5-04e7-4327-ba9f-fae5e676e54f","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":174,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"4a822b11-4bdd-4698-afd7-3ec8386508de","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":174,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"a6709924-5d51-43dc-85f0-f2209aeddb8a","block_type":"box","text":"court decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":174,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"8ab61d68-6e7e-4acd-a96e-e0bc6914b20e","block_type":"box","text":"decisions may have a retroactive effect.","page_number":174,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"3605ff90-1fb1-45f3-ab5d-fc3b8c1a5cae","block_type":"box","text":"PERFORMANCE DATA","page_number":174,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"91a88084-21ea-4518-8c31-bae68c6897a6","block_type":"box","text":"From time to time a Fund may include its average annual total return and other total return data, and, if","page_number":174,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"53ad9c9d-82a9-408f-8329-b55e6e5c2861","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or prospective","page_number":174,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"cf08b50f-d420-499e-824b-b0fea7a83da5","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical performance and is not","page_number":174,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"2388e828-b4aa-4210-8ba6-e54dee1da74e","block_type":"box","text":"intended to indicate future performance. Average annual total return is determined separately for each class of","page_number":174,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"8bcb461a-768b-49ba-8107-8e342b882686","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":174,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"b0394187-f178-424d-870c-c1257a0327de","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":174,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"00e654f9-330b-4682-af1b-7b398242a347","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":174,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"d5384bea-4a0d-4928-b38f-1a757ac11de5","block_type":"box","text":"gains or losses on portfolio investments over such periods) that would equate the initial amount invested to the","page_number":174,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"f9aaaddf-500c-4717-ab8d-b01d9e995571","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":174,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"8d48c492-cc1c-41f6-8053-936739123893","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":174,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"7785db07-ebb4-4e19-9bbe-924909d97221","block_type":"box","text":"expenses, including the maximum sales charge, in the case of front-end load shares, and the CDSC that would be","page_number":174,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"c38d7a8f-cbe4-4ea3-b999-bd3f29de18aa","block_type":"box","text":"applicable to a complete redemption of the investment at the end of the specified period in the case of CDSC shares,","page_number":174,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"ac6fd759-444e-4836-8179-2612db7948ba","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":174,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"ab731176-0078-4b70-a732-bd970f86744f","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":174,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"b399736a-1c51-427e-bdee-c71cbe899145","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":174,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"c883fcfd-6d26-4f8e-995d-6cef0a5cb9d4","block_type":"box","text":"value of such investment at the end of each period assuming payment of taxes on dividends received during such","page_number":174,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"93fb7c38-e61c-471e-8917-fe184efdcc4f","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":174,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"5b25cd74-21ea-48dd-9c27-52982848fb99","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":174,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"c7baf401-d8a7-4deb-ad73-2b213e60c563","block_type":"box","text":"including the maximum sales charge, in the case of front-end load shares and the CDSC that would be applicable to","page_number":174,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"f71250ed-c4f9-402a-a23b-1f0515394ce9","block_type":"box","text":"a complete redemption of the investment at the end of the specified period in the case of CDSC shares. The taxes","page_number":174,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"de23fffe-4cb7-4eec-839e-941656fdb19b","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":174,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"d80d1a8f-eafc-48a3-bd29-4232bd5369d4","block_type":"box","text":"income tax rates in effect on the reinvestment date for that dividend. The rates used correspond to the tax character","page_number":174,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"2cfdf0ca-7264-4107-b7e7-0eb96c0acf54","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":174,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"e30d2ded-c83e-44ff-9ad4-85c7c27664c6","block_type":"box","text":"taxable amount and tax character of each dividend are specified by each Fund on the dividend declaration date, but","page_number":174,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"9e82bb4f-96f4-48fa-a6f3-15e456c020b1","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":174,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"ae9bdb23-6b5b-4ddb-ba54-eb9b92ebf1f0","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":174,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"bd64acbf-8947-4a2f-ade6-7179af5e022d","block_type":"box","text":"credits, are taken into account according to U.S. federal tax law. The ending value is determined assuming complete","page_number":174,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"91095f1a-9f5c-4f09-b6f9-36976a2bae9e","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":174,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"b562b7b3-fd28-4c8f-940e-b06773f9fe6c","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":174,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"b4f882ee-46f7-434b-b844-65b3a43caa91","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":174,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"2cf4bce5-9f6e-41fe-bd7b-3df96aa5ac20","block_type":"box","text":"invested to the ending value of such investment at the end of each period assuming payment of taxes on dividends","page_number":174,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"b0ad0630-159c-4b95-9ea5-ca48c3a9b415","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":174,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"12a79333-f09e-4fcf-8f5a-3f79535711de","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":174,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"5c517da8-fd5e-4555-bda8-9cb55cf08837","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":174,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"7f1ce6eb-8a0f-4ccb-a529-6a5793d5e159","block_type":"box","text":"charge in the case of front-end load shares and the CDSC that would be applicable to a complete redemption of the","page_number":174,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"fdef26e4-5c86-480a-948a-5e7844a3b3b1","block_type":"box","text":"investment at the end of the specified period in the case of CDSC shares and assuming, for all classes of shares,","page_number":174,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"8dd63269-c639-4ae5-854f-3f804cb097ef","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":174,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"dc3852f4-d5d6-45a8-8de3-1d38e32d0ced","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":174,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"4400fd8f-1f8a-4a3c-937a-6c0b4f591edc","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":174,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"30898b20-c017-4655-ac38-361d45049363","block_type":"box","text":"II-137","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e91f07b6-79e1-4e50-a2ff-bf8a489b2afc","block_type":"box","text":"NM1026U-5993100-174/236","page_number":174,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5698a1ad-87ae-4300-b91b-c1db4246474f","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":175,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"eb4402dc-e317-4871-a2b1-15b42556bf5a","block_type":"box","text":"individual income tax rates in effect on the reinvestment and/or the redemption date. The rates used correspond to","page_number":175,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"9462501d-0322-41b4-9be7-ed35784869e5","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":175,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"9e574fe3-0a30-44e1-8aaa-d2b7c7968380","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":175,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"8c7c57ac-7404-4f44-97bd-5f071d0ad458","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":175,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"549eb4dd-fe2b-4bc7-aaf5-694561163554","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":175,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"288a9d7a-1fca-4657-9103-eabf09f564a2","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":175,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"8492bc75-7016-4e43-92f7-43940539ebe3","block_type":"box","text":"performance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":175,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"10b20e6c-b64d-446e-a617-81e7c1447bb4","block_type":"box","text":"some other amount, for various periods other than those noted in Part I of each Fund’s SAI. Such data will be","page_number":175,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"420013fe-2e2a-4d50-a20e-18484dabd618","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":175,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"cf47f6d3-b2bc-4a0a-b6b5-890b8f4b2439","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":175,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"4c9b9b02-9d50-42b1-a916-bc159217997d","block_type":"box","text":"will not be included with respect to annual or annualized rates of return calculations. Aside from the impact on the","page_number":175,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"f97138d6-93a6-491a-bb22-41550ffbfea0","block_type":"box","text":"performance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":175,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"2179fe10-645e-4e7a-b5fd-a006f5146b91","block_type":"box","text":"annualized total return data generally will be lower than average annual total return data since the average rates of","page_number":175,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"c0155c56-ae25-4852-b75c-27c90e50b230","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":175,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"be76b0c4-2c8e-4ed8-9d02-859f0923f74f","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":175,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"7960b4ec-4259-4a5c-acbc-2bb9316aa38e","block_type":"box","text":"Yield quotations will be computed based on a 30-day period by dividing (a) the net income based on the yield of","page_number":175,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"97583571-2bf7-412f-9357-b721f714a87a","block_type":"box","text":"each security earned during the period by (b) the average daily number of shares outstanding during the period that","page_number":175,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"59557fe4-ed40-4505-a3ee-d2addf951720","block_type":"box","text":"were entitled to receive dividends multiplied by the maximum offering price per share on the last day of the period.","page_number":175,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"e3f5c67a-7bdc-4f92-871d-0f15b02c8415","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the part of a Fund’s yield that is tax-exempt by (b) one","page_number":175,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"a8086c4e-0027-4b0e-b4eb-ae0f83a48959","block_type":"box","text":"minus a stated tax rate and adding the result to that part, if any, of the Fund’s yield that is not tax-exempt.","page_number":175,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"611f012f-34f0-406a-b61d-2a133deefbe9","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s portfolio, a","page_number":175,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"89df9264-5a08-477e-bc4f-cf4b0e3a88ef","block_type":"box","text":"Fund’s operating expenses and the amount of realized and unrealized net capital gains or losses during the period.","page_number":175,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"427fe137-5664-4b80-8c59-ec2d04489647","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be worth more or","page_number":175,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"5b722c18-ccad-48d0-afbb-3d5b90cf1993","block_type":"box","text":"less than their original cost.","page_number":175,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"5a3e803d-af7b-4b31-8a31-2eaa4eed0c3f","block_type":"box","text":"In order to reflect the reduced sales charges in the case of front-end load shares or the waiver of the CDSC in","page_number":175,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"f3e7ac72-3b14-4026-8bbf-8a852295d2f4","block_type":"box","text":"the case of CDSC shares applicable to certain investors, as described under “Purchase of Shares” and “Redemption","page_number":175,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"6d08e9fe-27cd-4ea3-96f3-5410b3aba643","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in advertisements directed to such investors may","page_number":175,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"f3ac8d9d-1154-48dc-b645-02e83b535e18","block_type":"box","text":"take into account the reduced, and not the maximum, sales charge or may take into account the CDSC waiver and,","page_number":175,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"649978ab-2355-4ff4-9437-226f7d6378a6","block_type":"box","text":"therefore, may reflect greater total return since, due to the reduced sales charges or the waiver of sales charges, a","page_number":175,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"1c88df51-9641-4868-a8f1-1c8f2ce1fa91","block_type":"box","text":"lower amount of expenses is deducted.","page_number":175,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"567f37a0-80a9-41d7-be67-ee1d8de0e42e","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark index","page_number":175,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"52dacac3-fc50-49e2-8399-13177e35389a","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":175,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"21fae6a6-e6be-467e-99e2-0f3e348ae7bb","block_type":"box","text":"indices, or to performance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":175,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"49ef8fdb-e2b2-4577-a67e-82a50fd151b2","block_type":"box","text":"Money Magazine, U.S.","page_number":175,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"52cc2d36-37e4-4e2e-a6aa-4be4d76c1fcb","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":175,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"622f8446-770f-4977-9c18-73fa75991545","block_type":"box","text":"or other industry publications. When","page_number":175,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"2cd29878-34c7-4026-8246-aab32b609fe9","block_type":"box","text":"comparing its performance to a market index, a Fund may refer to various statistical measures derived from the","page_number":175,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"3213acd4-174f-4c94-9fa6-a94baabb7386","block_type":"box","text":"historical performance of a Fund and the index, such as standard deviation and beta. As with other performance","page_number":175,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"f13acc58-5dd8-40a3-9f11-1f5101894644","block_type":"box","text":"data, performance comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":175,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"563aa276-e671-4a68-8b5c-7ed1f5271ffc","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted performance ratings","page_number":175,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"6f30b390-e9ca-49ff-b931-77b6db1e1b08","block_type":"box","text":"assigned by Morningstar in advertising or supplemental sales literature. From time to time a Fund may quote in","page_number":175,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"59283c9e-493f-4c56-93bb-ba47fed3fb2f","block_type":"box","text":"advertisements or other materials other applicable measures of Fund performance and may also make reference to","page_number":175,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"49761dd7-81ea-49be-8b90-87076bff9319","block_type":"box","text":"awards that may be given to the Manager. Certain Funds may also compare their performance to composite indices","page_number":175,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"47b4bdd6-bf0e-4eca-bc68-9c7a3f2a62f5","block_type":"box","text":"developed by Fund management.","page_number":175,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"185a415f-aed7-4dbd-8603-43be2896e0f6","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":175,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"c92b8c6e-6161-459e-b222-881762767429","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":175,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"9804f632-7067-42ee-8f0f-346bce5cfdd6","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":175,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"945ed9fa-0281-46ca-8bac-7b758a2ac5bf","block_type":"box","text":"and risk tolerance, discussion of a Fund’s portfolio composition, investment philosophy, strategy or investment","page_number":175,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"3552e1ce-b070-4a54-a64d-030442fde98a","block_type":"box","text":"techniques, comparisons of the Fund’s performance or portfolio composition to that of other funds or types of","page_number":175,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"ded24ee6-1c49-4f69-95bd-a1aa91c9d8ed","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model portfolio. A Fund may also","page_number":175,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"679d96b2-e1e7-4b5d-886d-dc0dc1a39710","block_type":"box","text":"quote various measures of volatility and benchmark correlation in advertising and other materials, and may compare","page_number":175,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"ba8f7660-d5df-46cb-bb0a-f4300c4def20","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":175,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"b3e15973-023c-4f11-9e1c-b1d87a3f710d","block_type":"box","text":"II-138","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d6b6dfde-a62a-4446-8652-0994ee8967ee","block_type":"box","text":"NM1026U-5993100-175/236","page_number":175,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7cceca2d-ce2c-47d5-b186-1c56331fbe9a","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":176,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"9f115103-5918-40d0-8595-d75654c44142","block_type":"box","text":"The Board of Directors of the Funds has delegated the voting of proxies for the Funds’ securities to the Manager","page_number":176,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"67d5c294-ad29-43ad-9acf-a57dd75dccd3","block_type":"box","text":"pursuant to (i) the Open-End Active and Fixed Income Index Fund Proxy Voting Policy (the “Active Fund Proxy Voting","page_number":176,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"c50aa538-3c25-4808-a051-12a8d833a612","block_type":"box","text":"Policy”), with respect to certain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to certain other","page_number":176,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"8b98f2e0-8e82-41a0-9808-171eb08c454c","block_type":"box","text":"Funds, as applicable. Please refer to Part I of this SAI, which discloses the policy applicable to each Fund.","page_number":176,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"f2d80763-2e88-470f-a987-e33b0aa4a061","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":176,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"05795863-efaf-4f77-879c-78508c9aa046","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Certain of such","page_number":176,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"eb87d04b-7d26-4a77-86d3-b279bc4e2e06","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Part I of this SAI, follow supplemental","page_number":176,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"5771f653-32e7-4104-b611-223e9adda241","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to certain climate and decarbonization issues (the “BAIS","page_number":176,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"81485aa9-eeea-4f8d-9d7f-3698aa6a3854","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":176,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"f85a7dd8-7ff4-4d51-b1b2-db6d08af0a93","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":176,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"8fe5a9f1-13f1-4252-a650-269b25cdb2ef","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":176,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"f5eeea0e-3e14-4e20-8b27-7e28e64335d4","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":176,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"8abe14df-bdea-4ab2-b43e-903f406262be","block_type":"box","text":"addition, certain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Part I of","page_number":176,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"863987a0-029d-424d-b68a-3451d549f11b","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to certain climate and decarbonization issues (the “BIS","page_number":176,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"2f0441c6-08c6-4165-b016-b2db5657ea92","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":176,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"29de0bcd-c0ff-456a-9d69-25d3f7f650be","block_type":"box","text":"If a Fund invests in an underlying fund managed by BlackRock, the Fund will use its proxy voting policy when","page_number":176,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"b9117a27-1204-4a9a-accf-26628a47aebd","block_type":"box","text":"voting on proxies for the underlying fund while the underlying fund will use its proxy voting policy when voting proxies","page_number":176,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"e7bfe533-98d3-4a86-8972-a408449e2359","block_type":"box","text":"on investments the underlying fund holds. Therefore, the Fund may use the Active Fund Proxy Voting Policy while an","page_number":176,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"a4f86171-e02e-411b-b552-ac390352653b","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":176,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"4f31ff70-5de7-4c46-90fc-953a12e6a8c8","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":176,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"8b392e98-2487-4bbd-8173-7875c2a3b740","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":176,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"28fd65c3-0510-401b-aa63-1a7a9b8ef1f6","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a particular Fund pursuant to the","page_number":176,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"7f3a6f16-5ba2-44e1-92f9-95d4ccccc627","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a part of the","page_number":176,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"85299c0f-237f-40c1-836d-04016eba8bf4","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to portfolio securities during the most recent 12-","page_number":176,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"3b3973d6-0b59-4827-b2d1-7bfc1f59fc47","block_type":"box","text":"month period ended June 30 is available without charge, (i) at www.blackrock.com/proxyrecords and (ii) on the","page_number":176,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"a786cc20-4f3c-4065-a10c-2848842ddd05","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":176,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"64d92fac-cb72-4b67-93da-d6860a812438","block_type":"box","text":"GENERAL INFORMATION","page_number":176,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"e2f285b0-bf8e-4aee-bff5-528eaec85364","block_type":"box","text":"Description of Shares","page_number":176,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"d25fca02-f8d0-4313-93fd-6b9eb428a664","block_type":"box","text":"Shareholders of a Fund are entitled to one vote for each full share held and fractional votes for fractional shares","page_number":176,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"9a8ecb44-e1ae-401f-8656-38dec442a03c","block_type":"box","text":"held in the election of Directors and generally on other matters submitted to the vote of shareholders of the Fund.","page_number":176,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"15338354-a1c7-4a17-949d-cfaa7bbee891","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":176,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"8574cfe3-b2fe-4267-af84-7114e92e3380","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":176,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"a67a070f-54c6-4278-84ab-f5d5cd1fb21f","block_type":"box","text":"more than 50% of the shares voting in the election of Directors can, if they choose to do so, elect all the Directors of","page_number":176,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"46abffa0-8517-424a-a24e-4cc8eff1ed79","block_type":"box","text":"a Fund, in which event the holders of the remaining shares would be unable to elect any person as a Director.","page_number":176,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"13917e7d-6dfc-4cbf-b61d-8cc65aa44205","block_type":"box","text":"No Fund intends to hold annual meetings of shareholders in any year in which the Investment Company Act does","page_number":176,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"311bae92-a00d-417f-b205-ddf0823955f3","block_type":"box","text":"not require shareholders to act upon any of the following matters: (i) election of Directors; (ii) approval of a","page_number":176,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"3f60b17d-1688-4ba6-aa2b-4bcd8e818bb8","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":176,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"2405b4f7-14f4-4acc-a7c4-17a5e65cc769","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":176,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"3da4835c-f754-476b-aa8f-73732d68cf72","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":176,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"17693d1b-add5-4aea-8be2-b8a63fdef1a5","block_type":"box","text":"Common Stock is entitled to participate equally in dividends and distributions declared by a Fund and in the net","page_number":176,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"845b1f75-8b57-4dbb-b4e5-a95156d4edf1","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":176,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"602de64f-2484-4ed5-86a7-0e4c2518da00","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":176,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"36e86396-4bc7-4c35-ae47-25cabfe0fbb3","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":176,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"c637ada7-5568-414e-b757-f8410fdc9544","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":176,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"6cafe02e-f47f-4365-92d6-c3434425e53d","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":176,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"380645ce-e094-4b33-b9b0-a8a5e84543cb","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for its","page_number":176,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"8661cc32-3645-4a1a-b317-726d1e543cdc","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":176,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"a1197a6f-0e27-4b33-b842-d3361b7fbd49","block_type":"box","text":"with all amendments thereto (the “Declaration of Trust”), is on file in the office of the Secretary of the","page_number":176,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"f1aee9fe-346f-40ab-a8c7-201b44c63cf9","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":176,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"794cbcd7-0e9b-471e-8dd4-2cc651acd094","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust property for any","page_number":176,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"2c2b43c7-012a-4af5-951e-62625615098e","block_type":"box","text":"II-139","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8bc127cd-515f-43ff-8030-a88622ebdf86","block_type":"box","text":"NM1026U-5993100-176/236","page_number":176,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4ecc1c1f-026b-4c63-a77c-1e4c390227ff","block_type":"box","text":"shareholder held personally liable for the obligations of the trust. The Declaration of Trust also provides that a trust","page_number":177,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"510f6459-d845-4544-a52d-0585d7ad8472","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":177,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"f5d58475-624e-4a7a-a3e7-c997c1767df9","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":177,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"3cdf81e9-11ae-4c81-ab2e-f7a62897ac4e","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":177,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"c0835187-b753-4730-822e-bd8e600b4092","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":177,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"a620fee3-5d72-4538-a709-8dcc42eae1f0","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":177,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"078345e4-791d-4ed4-ab8e-34a45b4d7a57","block_type":"box","text":"Additional Information","page_number":177,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"c76ad0e9-03b6-4566-ad54-374457ba0cba","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock” name and","page_number":177,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"9af5dac4-7f6b-4931-a35c-43371f9a486c","block_type":"box","text":"has reserved the right to (i) withdraw its consent to the use of such name by a Fund if the Fund ceases to retain","page_number":177,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"22299a21-b401-4c5c-95be-2b5f2f5e36d8","block_type":"box","text":"BlackRock Advisors, LLC or BlackRock Fund Advisors, as applicable, as investment adviser and (ii) to grant the use of","page_number":177,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"2bba8803-e45f-4bc2-82d7-0d9dac1fb4ce","block_type":"box","text":"such name to any other company.","page_number":177,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"32dc7481-8a33-4c56-98d8-0b0e54989dc0","block_type":"box","text":"II-140","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"73815cb6-0c38-45b0-8efb-1dbe639447ee","block_type":"box","text":"NM1026U-5993100-177/236","page_number":177,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c228124e-67c1-4c22-8bb1-15f14fc258d3","block_type":"box","text":"APPENDIX A","page_number":178,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"2171c96d-8c04-4123-a89d-b41d53cb5126","block_type":"box","text":"Description of Bond Ratings","page_number":178,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"1ddfa1d0-b241-4815-ad30-e99934e4d885","block_type":"box","text":"A rating is generally assigned to a fixed-income security at the time of issuance by a credit rating agency","page_number":178,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"2b48949b-7e8c-4d6c-8f86-1dd3626168c4","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":178,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"56d68f7a-2839-449b-b5a3-24014fd9406d","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they undertake no obligation to do","page_number":178,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"1c5bb9a2-91eb-4a49-8ad5-d7b66f0bf615","block_type":"box","text":"so, and the ratings given to securities at issuance do not necessarily represent ratings which would be given to these","page_number":178,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"eedec145-f156-4eb4-98d9-15237327eedc","block_type":"box","text":"securities on a particular subsequent date.","page_number":178,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"947baf6d-9c67-42f3-85e1-c5bb400043b9","block_type":"box","text":"NRSROs may rate specific investments (","page_number":178,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"25cb14b6-a1c0-450a-9072-d414fa9e45ec","block_type":"box","text":"e.g.","page_number":178,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"69f62a55-676e-4bcc-a71f-b07d2cc254c9","block_type":"box","text":", bonds), issuers (","page_number":178,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"dd1f088b-a3c3-431f-b96d-c0081981f0e6","block_type":"box","text":"e.g.","page_number":178,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"90ae84ef-8a85-4bd6-9797-5de25477b0d3","block_type":"box","text":", corporations, governments and financial","page_number":178,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"d4a537ce-ba84-4346-b18d-2e8a2b68c6e7","block_type":"box","text":"institutions) and/or programs (","page_number":178,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"decaf838-7e90-4632-a99b-f7778fcfcc66","block_type":"box","text":"e.g.","page_number":178,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"9b071069-2b71-4069-8731-73655e238249","block_type":"box","text":", commercial paper programs). However, certain types of investments may not be","page_number":178,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"3c811569-474a-40ac-be91-24106ff71043","block_type":"box","text":"rated by NRSROs, such as certain government/sovereign obligations, US agency securities, commercial paper, time","page_number":178,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"805d55ba-796a-439d-83fa-b6b29b62becf","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":178,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"7ae9aa38-fd79-49be-9f51-8adbb32f0383","block_type":"box","text":"investments, as well as US Treasury securities (some of which are not rated), where an NRSRO has not rated the","page_number":178,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"6b0266b8-1d92-4067-871c-3bae7c7340f7","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":178,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"6f2eefb2-1745-47be-972d-7db6ed11e488","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":178,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"e152d4db-494c-45fa-93c4-2f418bde05e6","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":178,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"0d8aa340-17fa-44e1-a24c-d2ac6d8fa0e3","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":178,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"5f168f2b-f95c-444f-b910-d00280ed72e4","block_type":"box","text":"security (","page_number":178,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"7664dbdd-c833-434e-9ba0-7bc16efd8d9a","block_type":"box","text":"e.g.","page_number":178,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"8ce0ff87-99e8-4005-864b-bec9916f459c","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":178,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"ccba27eb-9cc2-4bca-a4e8-6bc24adb142e","block_type":"box","text":"highest of the multiple ratings.","page_number":178,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"fb411fe0-e68c-4a23-a2dd-d54bcea1b7bf","block_type":"box","text":"New issue securities (regardless of type) may not be rated by an NRSRO at the time of their initial offering.","page_number":178,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"fa7a6a5b-fe5f-4fdb-adfe-57f97d6bb46e","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":178,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"ad5274bf-9518-4258-b70a-5938cb244a4a","block_type":"box","text":"determined by the underwriter and/or issuer) or an NRSRO rating for the issuer of the security. If applicable, when","page_number":178,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"fea6e8d1-5e08-4519-89ab-cc0941bdc8ef","block_type":"box","text":"deciding whether to purchase a new issue security that has not yet been rated by an NRSRO, BlackRock may","page_number":178,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"63ed4d1a-ad07-4d9e-b65c-20cd82e0de7f","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set forth in the","page_number":178,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"925e6f69-b75a-4c65-a4bd-8a680cccf0eb","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set forth in","page_number":178,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"64d65c97-0138-43b9-916d-ede9ac1b86d2","block_type":"box","text":"the preliminary prospectus or term sheet for the security; or (iii) with respect to asset-backed securities, the rating of","page_number":178,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"38565cae-f971-498d-8d2d-b2329ac225f0","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":178,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"2249a9b6-0380-4f46-8c2f-dde22d3e4198","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit ratings","page_number":178,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"aa450466-986f-463f-abd8-49b816e43b74","block_type":"box","text":"eligibility criteria as part of its index methodology, the fund may purchase any security within the index, such security","page_number":178,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"35b0af07-2259-49fb-87a4-04453c484838","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":178,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"778ca8a2-56f2-4f57-9a4a-3302f0e71f8c","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Further, the fund may","page_number":178,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"2ab957f8-0a6c-44ee-a522-99fc62b6ea99","block_type":"box","text":"invest, directly or indirectly, in securities that are not rated by a rating agency or securities with a credit rating that","page_number":178,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"d0d9fe20-38a1-4b71-8d30-0b2bd41c73d6","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":178,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"894728b5-fe0e-43ae-b747-cbe2747f143d","block_type":"box","text":"downgraded but not yet removed from an index, following the removal of a security from an index prior to its sale by","page_number":178,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"801e9197-ae73-4292-962c-9fb50fa5bc86","block_type":"box","text":"the fund or as a result of a corporate action or restructuring affecting an issuer of a security held by the fund.","page_number":178,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"dda74866-d2c5-4a6b-b517-941f5eae8074","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":178,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"3fdfe64c-f323-4f65-8396-032cc0fa8b09","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":178,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"41472d64-7497-47d7-84d4-87d0af7329b5","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":178,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"687d60e2-af66-42c2-9d16-71e3a6236029","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":178,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"ca1a1f5b-b5aa-4048-a0f3-0b6c6959629e","block_type":"box","text":"Investors should note that the assignment of a rating to a security by an NRSRO may not reflect the effect of","page_number":178,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"09829426-d9b4-4dd3-baac-26930a061684","block_type":"box","text":"recent developments on the issuer’s ability to make interest and principal payments or on the likelihood of default.","page_number":178,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"0671b6a7-89b3-40e7-80c9-f4c7ddb71b22","block_type":"box","text":"Securities deemed to be high yield are rated below Baa3 by Moody’s and below BBB- by S&P Global Ratings and","page_number":178,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"b63cf9c9-01bd-4aa7-bcef-c83665a323a3","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":178,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"f18ff49b-ce0e-47f7-a061-a38e7588cec5","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":178,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"e141d160-e41c-4a93-873f-fe03175cb278","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":178,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"eb4fde56-2100-43d9-a352-fc85b5f8f299","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":178,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"6120f1f2-d981-4d21-893d-29837dca2804","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and short-term rating scales and are forward-looking","page_number":178,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"42cd9b91-ec08-4773-b966-0ac41c84ef52","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":178,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"1f0d5d88-c61c-4400-9354-5aaddf753692","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":178,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"501f6b3b-2978-4a35-9f02-08909539a9f2","block_type":"box","text":"risk that an entity may not meet its contractual financial obligations as they come due and any estimated financial","page_number":178,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"b25f131e-3c6d-4f76-872f-1e9620b894b9","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":178,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"e4032b71-6760-473e-9c65-3a58b064f168","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascertainable amount, which may vary based","page_number":178,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"ba02cba0-f009-4ffa-a515-afb5faf070f6","block_type":"box","text":"upon standard sources of variation (","page_number":178,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"00ad4810-d3b1-44b9-a46b-bd229b69038f","block_type":"box","text":"e.g.","page_number":178,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"b42289dd-7d01-4120-bbf4-76ec5270945c","block_type":"box","text":", floating interest rates), by an ascertainable date. Moody’s rating addresses","page_number":178,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"3b812646-3293-433e-b6cb-d57f60d03b3e","block_type":"box","text":"A-1","page_number":178,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"40af9446-9153-4946-9a4e-e1d8f67addd3","block_type":"box","text":"NM1026U-5993100-178/236","page_number":178,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b494fc00-b28b-4573-9c56-f69e8e438d2a","block_type":"box","text":"the issuer’s ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s ratings do","page_number":179,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"1f135714-6c31-4f95-96cb-5fff31e3afcb","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":179,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"4f609127-34a8-4bc2-b355-450f6b26f82b","block_type":"box","text":"e.g.","page_number":179,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"25020520-0c3d-4afe-b137-46bbaae1e824","block_type":"box","text":", equity indexed), absent","page_number":179,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"dcbd4637-ed37-45a2-b4ee-b672f6c85caa","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":179,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"b08d6506-1cfa-4bef-8584-070cc8e23b43","block_type":"box","text":"assigned to issuers or obligations with an original maturity of eleven months or more and reflect both on the","page_number":179,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"ed255814-c768-4104-85cc-3547477e9044","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":179,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"ba9a1bba-2bbf-42ab-88a5-a7280b57616e","block_type":"box","text":"the event of default or impairment. Short-term ratings are assigned for obligations with an original maturity of thirteen","page_number":179,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"c5603d9f-149c-46ff-aac5-4ba232fcdcc3","block_type":"box","text":"months or less and reflect both on the likelihood of a default or impairment on contractual financial obligations and","page_number":179,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"8db38e83-a650-4909-9f74-a6c07299450a","block_type":"box","text":"the expected financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level","page_number":179,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"ee9add1b-1f8d-4033-a256-f4216f0cbae5","block_type":"box","text":"and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made publicly","page_number":179,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"c5bc401d-f327-4248-9c8d-41ce02f7d63d","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":179,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"ef1ca91a-2bb8-49cb-8894-4720b01516cd","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":179,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"c4a3a958-16f5-4849-b2c3-84b847207d01","block_type":"box","text":"i.e.","page_number":179,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"8f8e8280-7c42-4b9e-88a0-1592651b7221","block_type":"box","text":", ratings on nonfinancial","page_number":179,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"14c4a2d5-f4d8-4b4a-8cd5-aef6bd0dab1d","block_type":"box","text":"corporate, financial institution, and public sector entities) on the global long-term scale by adding (sf) to all structured","page_number":179,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"85e9356a-4edf-488e-9d7d-3f883cd05084","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":179,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"7503c5c9-69ea-4594-b635-d2c754411bd5","block_type":"box","text":"and fundamental ratings at the same letter grade level will behave the same. The (sf) indicator for structured finance","page_number":179,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"83079d9c-3aff-44e3-ba07-8d7920299db8","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":179,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"6453aa91-3551-48e1-87fd-a9b78b38fc96","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":179,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"2c6d38dc-c5f9-4f00-b59b-1baafc275b86","block_type":"box","text":"expected equivalence in structured finance and fundamental rating performance when measured over a long period","page_number":179,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"00794d06-a719-4f80-8408-795deb1dae18","block_type":"box","text":"of time.","page_number":179,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"2f389fa2-d5d6-4aae-b7ab-74c59f3eb66a","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":179,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"d0b5b2fd-6b5b-45a7-b391-56317caa88a0","block_type":"box","text":"Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit","page_number":179,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"c3579207-c517-4743-8d05-38cf3a5a55b4","block_type":"box","text":"risk.","page_number":179,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"58944604-f14e-4207-b026-96afd19ba54c","block_type":"box","text":"Aa Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.","page_number":179,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"c05a7a61-df56-4fe6-a7b7-4bd2e35bd393","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":179,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"781b7099-deb7-4d3f-a6b7-2dbb10eff022","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":179,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"ac2852c9-b88a-457b-8a19-22f8c2d391cf","block_type":"box","text":"such may possess certain speculative characteristics.","page_number":179,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"a81940d7-0186-49b2-894b-bd45aff92bad","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":179,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"fc9b73cb-9990-4f7f-b9c4-82b788ccaca1","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":179,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"be08efb6-e716-48f8-a607-de293e4f7209","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":179,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"e12dc615-3102-4d0a-a99a-36116b80752f","block_type":"box","text":"credit risk.","page_number":179,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"d7f3bbb1-d3d1-401a-94ec-3ea3da494aee","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":179,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"985b4aef-656e-4c56-b00f-3b621b8c6109","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":179,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"c3159d64-ba80-405d-a087-242f4d5cf400","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":179,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"17047a4b-7a58-4e6e-934e-34a1573d1e79","block_type":"box","text":"of principal or interest.","page_number":179,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"48bff473-3898-4547-afb4-906f03d887e7","block_type":"box","text":"Note:","page_number":179,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"92521ec4-aa95-4f9f-aca3-0b98279d79cc","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":179,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"63e4baa6-49d5-424a-bf42-73d5b83e1807","block_type":"box","text":"Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2","page_number":179,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"597c06da-00a6-41e6-9c5b-1500df2c9c2c","block_type":"box","text":"indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.","page_number":179,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"03ac87d6-33a6-4e49-ac87-4f5f059b4802","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":179,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"b9363a05-0930-43e9-985d-23b59bd31020","block_type":"box","text":"companies, and securities firms.","page_number":179,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"b1cb916c-f039-4358-902d-1007d3895f38","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":179,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"497cd79c-b270-48c5-8d0f-548a263b7822","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":179,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"7c7e4f87-7aed-4c25-a191-47e03c5391db","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":179,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"c731e8a8-a939-459c-a5d7-2732e6ae9150","block_type":"box","text":"long-term obligation rating assigned to a hybrid security is an expression of the relative credit risk associated with","page_number":179,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"97cf4e71-09f2-4003-9a1b-3819d7ad233e","block_type":"box","text":"that security.","page_number":179,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"0701c53f-8b46-4951-8d05-1d26a1a67b20","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":179,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"6ab276ac-39c4-4a2d-8f65-88c5cd65ff8e","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":179,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"93d1aae3-e28b-4af5-9b77-10b6e044e90f","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":179,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"a16d770c-99ea-48c1-b2c7-ac505c386aea","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":179,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"62260703-b56c-4b2e-805d-9302b84313db","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":179,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"4f2d9c89-b0bf-447f-8ffe-d981e78528b5","block_type":"box","text":"categories.","page_number":179,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"6e856fb7-0ab1-40f2-a418-177a4fcb2830","block_type":"box","text":"A-2","page_number":179,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"fde40f96-7336-4230-aab9-6156438de04d","block_type":"box","text":"NM1026U-5993100-179/236","page_number":179,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bb5b5909-60d8-4ee7-8f5c-7d2f8d9ebf70","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":180,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"4f2a585a-67b7-4d94-a4e6-f82f221e866c","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":180,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"0c14eb1d-ad86-4b28-bf85-7538f76e903b","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":180,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"2d856c26-b14d-42ee-8209-774c52eb8c5d","block_type":"box","text":"an issuer’s self-liquidity.","page_number":180,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"45d46c29-f654-43cf-9c88-8b7d244a197c","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":180,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"7bd87ba8-3bf1-452e-a438-b91d8ad73eb8","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":180,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"f5a1740e-ba21-463d-a25a-776346a9003f","block_type":"box","text":"MIG Ratings","page_number":180,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"48b3da7f-ab76-49e3-b47b-2fce08ef6cb3","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain other short","page_number":180,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"268babbf-59eb-4739-9f47-e551021be39a","block_type":"box","text":"term obligations, which typically mature in three years or less. Under certain circumstances, Moody’s uses the MIG","page_number":180,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"38c8821c-c5bb-4f18-bf4f-6b77d036a48b","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":180,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"7ad41dd1-4b15-46ed-a923-66f7573d8a04","block_type":"box","text":"MIG Scale","page_number":180,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"858c109f-941f-4e8f-bbee-3c8bf901f107","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":180,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"a0daa712-64ea-480c-ab3a-cb268256812e","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":180,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"3ae87ed5-caee-4bc9-979d-2901ba76fbd6","block_type":"box","text":"refinancing.","page_number":180,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"6b2440f5-3f66-4c9d-9e61-cbf79d65c13e","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":180,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"cbab29fb-d027-4e53-9648-1a26ce6d18f3","block_type":"box","text":"large as in the preceding group.","page_number":180,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"6f70da34-450d-41e3-978e-35c9fad9aef9","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":180,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"996c7756-38bb-481c-97cd-f2739d0bab3b","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":180,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"abf229cc-154f-4ef3-b72f-fcb71239cca6","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":180,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"eca1e1fd-9d68-464f-85a0-a4377ebc112b","block_type":"box","text":"lack sufficient margins of protection.","page_number":180,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"2ed2416f-61be-4a4b-8b68-6ae063a70c3b","block_type":"box","text":"VMIG Ratings","page_number":180,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"e5b31a7d-4535-4e28-822b-ddf72aa7534d","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":180,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"c4032b15-e4d9-4f6f-be6f-257110bad029","block_type":"box","text":"are a long-term rating and a short-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":180,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"c9eed72f-866c-4b37-9201-2de03905dd9a","block_type":"box","text":"to meet scheduled principal and interest payments. The short-term payment obligation rating addresses the ability of","page_number":180,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"ee2dc0c5-3684-4889-8ca1-410aca071233","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":180,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"0bb6a4e4-3dae-4605-94a6-41b609e4d3d1","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The short-term demand obligation rating uses the VMIG scale.","page_number":180,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"3a6a6e82-3115-45f6-8d45-fa81c80ea64e","block_type":"box","text":"VMIG ratings with liquidity support use as an input the short-term Counterparty Risk Assessment of the support","page_number":180,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"0cfa42ef-f86e-45df-8aa8-ea931b848b7c","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third party liquidity support. Transitions of","page_number":180,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"6f63bc59-8506-403d-af1a-c61182730c0c","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity support differ from transitions on the Prime scale to","page_number":180,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"ec3eed1b-a8e3-493d-b955-637bff8a419b","block_type":"box","text":"reflect the risk that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":180,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"202375b9-7acc-4f35-b9f9-ebcb7bd12002","block_type":"box","text":"grade.","page_number":180,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"83031058-0892-46a4-8dca-27fc1c1cf2f7","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand feature is","page_number":180,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"12349e7f-61d3-4117-8812-3d6bd3728e4e","block_type":"box","text":"less than every three years. If the frequency of the demand feature is less than three years but the purchase price is","page_number":180,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"1d06b133-fe89-4c5e-a5d7-194fcac1a954","block_type":"box","text":"payable only with remarketing proceeds, the short-term demand obligation rating is “NR”.","page_number":180,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"4a43f477-bc83-4934-8d47-00fcba730d80","block_type":"box","text":"Industrial development bonds in the US where the obligor is a corporate may carry a VMIG rating that reflects","page_number":180,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"4ea18b37-da77-4e63-9cc7-b2eb88b19844","block_type":"box","text":"Moody’s view of the relative likelihood of default and loss. In these cases, liquidity assessment is based on the","page_number":180,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"b68ab581-7d00-4ec5-aa29-8764ef614f00","block_type":"box","text":"liquidity of the corporate obligor.","page_number":180,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"097f8a85-d6b6-4460-8164-99e1758f2f80","block_type":"box","text":"VMIG Scale","page_number":180,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"ee6b0347-f963-4094-b668-b3bbec8ce2c4","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":180,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"5fe05b41-fbd1-469f-9b3c-1823bd3ebee5","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections.","page_number":180,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"37dd53e9-c612-4ea5-b83b-06eefbd3a031","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":180,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"469afa2e-90ff-4467-9e19-d1e55ed144f9","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":180,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"dbcad8ed-8cc1-4bf1-9504-38e00dd06d25","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":180,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"c280a36e-0548-4eb6-94ca-dc2ba76150cf","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal protections.","page_number":180,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"ad0dfaa5-7bd1-4031-99f4-7f43626cd387","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":180,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"9a96d79a-06cd-4c56-83d5-29f8fbfe8fb5","block_type":"box","text":"may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or","page_number":180,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"0752b95a-d133-4276-b423-cce42480cb10","block_type":"box","text":"may lack the structural or legal protections.","page_number":180,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"368d6a34-30ab-4fb9-a832-aa46f06c8042","block_type":"box","text":"A-3","page_number":180,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"19cea597-35b4-4a85-9438-d5fba2faf16f","block_type":"box","text":"NM1026U-5993100-180/236","page_number":180,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c95e90ce-a7a8-44c6-9c38-5d19d16ff661","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":181,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"25bf39f7-1962-4a60-b110-0e43d2d0d031","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with respect to a","page_number":181,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"553058b8-024e-401a-b3f8-d32535ffe794","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":181,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"a140c4a5-b630-42ad-93b6-c1c249c399be","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of","page_number":181,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"aa326da6-1337-472e-ac2c-ad5be542e9d3","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":181,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"d31168d9-683b-43b7-9555-4b7ad52ae7b8","block_type":"box","text":"which the obligation is denominated. The opinion reflects S&P’s view of the obligor’s capacity and willingness to meet","page_number":181,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"91e8267f-b657-4647-8e88-51b2bb7da7a5","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":181,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"cb585a1f-5ab4-41d9-b4a2-c40f70daae77","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":181,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"11c8624f-f911-4082-a2aa-7ec927b4ddfb","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally assigned","page_number":181,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"4559d1a8-5d71-435e-b6b3-db06df1915ad","block_type":"box","text":"to those obligations considered short-term in the relevant market, typically with an original maturity of no more than","page_number":181,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"acbefbf8-75db-4908-823a-33a7a72ab754","block_type":"box","text":"365 days. Short-term issue credit ratings are also used to indicate the creditworthiness of an obligor with respect to","page_number":181,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"3bd5f9a7-481b-4014-88d3-16b8ec353cf2","block_type":"box","text":"put features on long-term obligations. S&P would typically assign a long-term issue credit rating to an obligation with","page_number":181,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"407e2e90-5b52-4b41-a170-156973129ffc","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to certain instruments may diverge","page_number":181,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"9a201314-3c62-4e68-9da7-0ec228838fe1","block_type":"box","text":"from these guidelines based on market practices.","page_number":181,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"fac03d7a-9273-4994-b8d7-426a011e6554","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":181,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"90661572-553b-47b3-91c2-3673522c602a","block_type":"box","text":"•","page_number":181,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"e467a0b5-ab06-440f-8a25-c368f7a61467","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":181,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"51540a17-3c33-4f39-b5eb-6c3ac40ee76a","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":181,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"799a035d-cc34-49e0-9b08-dc7818ccc182","block_type":"box","text":"•","page_number":181,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"89042341-3d02-411f-8c39-67598319e0f6","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":181,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"5a5cafc6-a8e1-4783-8561-5fbc576f99f8","block_type":"box","text":"•","page_number":181,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"01cd4e93-325e-43c4-89cf-f60c59ca403b","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":181,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"37417a8c-501c-4edf-b3fd-419e92a29a0a","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":181,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"d79f378a-1737-4098-b2da-771259bd57ef","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":181,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"a58ff07b-06da-4cf3-a6af-6a30f609824b","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":181,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"ba9ce513-3cf0-4f71-983c-aecedf7eda06","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":181,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"a9573d52-d322-4a9e-8b2c-89be39da7d87","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":181,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"78d436e8-026a-445c-bc27-d0d01f2a1b35","block_type":"box","text":"obligations.)","page_number":181,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"53188e9d-109e-4c6c-be59-dbb2cbcf5cae","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":181,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"486d91be-0676-4c88-95c8-91033907223e","block_type":"box","text":"AAA An obligation rated ‘AAA’ has the highest rating assigned by S&P. The obligor’s capacity to meet its","page_number":181,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"5a444052-827b-466f-8814-11411430ce16","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":181,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"af72882b-ed82-4dc9-976e-18d38faafbd5","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":181,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"7b609556-8ae1-4491-aad8-857ca1f6bbad","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":181,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"fbc2814a-7c6c-4aba-a81b-95f98fc60045","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":181,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"15219e11-2a4d-4089-bd7a-18b5449beef2","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":181,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"4641ffbe-b303-46e2-b186-13b56f33c4aa","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":181,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"12102e4f-be00-4966-ac1e-ba8a0c814a1a","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":181,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"8d4011f7-c364-4267-8af7-e20927828935","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":181,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"8d1704bb-3157-41f8-ae26-7b7595555d86","block_type":"box","text":"financial commitments on the obligation.","page_number":181,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"5387c9f0-b044-47c4-b290-ff64cda51ef9","block_type":"box","text":"BB,","page_number":181,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"b00212a7-c4b6-4c23-832a-87aedd235ad9","block_type":"box","text":"B,","page_number":181,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"2b0b6562-95e4-4763-b2e5-4ab6e489512d","block_type":"box","text":"CCC,","page_number":181,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"d752179a-cfb7-4643-8d45-a5368182e6c5","block_type":"box","text":"CC,","page_number":181,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"09dfe6e4-18aa-405f-8f46-0dd29cbbdb6e","block_type":"box","text":"and C","page_number":181,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"147f4f1d-47f6-4db6-bfa4-4308956317a2","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":181,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"f4d26352-8cce-416d-8eb1-4faf2759816c","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":181,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"393d365a-e859-46eb-8121-865a97d003b7","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":181,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"d2953235-1177-4f68-a168-9f81d5449a49","block_type":"box","text":"large uncertainties or major exposure to adverse conditions.","page_number":181,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"f4136897-5bf2-4d64-89bc-f4c6989fef44","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":181,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"efeb159d-16c5-4c75-8871-5193a78b6cbb","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic","page_number":181,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"e5b0d54a-0ab2-4398-a695-85407426daab","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":181,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"b2c8fb8c-74b7-4eb8-847d-3cbf8fce87f4","block_type":"box","text":"on the obligation.","page_number":181,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"acf8654f-398e-4d06-8fe0-f15c242e37ff","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":181,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"108d2833-cdea-4fc0-8f93-3aee3772f846","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":181,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"4650e81e-9d85-49a0-b2d0-0964a4b1f635","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":181,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"c720d7c1-d958-4eaa-bbb2-bbebff01d97b","block_type":"box","text":"financial commitments on the obligation.","page_number":181,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"0c8a043b-b008-4af3-8f68-3e429cb18a2f","block_type":"box","text":"A-4","page_number":181,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"cbffabe0-4ff2-494d-931e-afa63646bd2a","block_type":"box","text":"NM1026U-5993100-181/236","page_number":181,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d2a7b99e-efea-4b9a-83c2-dfa57ba4f07f","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":182,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"0912197e-90e1-4be6-ab56-685f4f342ddc","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":182,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"d2159f3d-b808-4d9f-a1b7-f7863a606268","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":182,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"5ec26b71-41da-4507-804e-0eb570f7b267","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":182,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"3a481c4b-1bf6-4cc0-a686-3001029933c7","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":182,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"d971d3c3-78da-44bc-9711-25c9cdb3962b","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a virtual certainty, regardless of the","page_number":182,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"b28c0d71-3d2b-4eb7-9f0e-a742a39f9c93","block_type":"box","text":"anticipated time to default.","page_number":182,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"0d946fc2-1277-44f0-8c42-8c04c67d2ad0","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":182,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"ab1d9b19-6d9d-489b-9d12-da5eeca2733e","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":182,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"ffd92524-67fa-4eef-8131-4192a679f0e1","block_type":"box","text":"higher.","page_number":182,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"488107fc-1e61-498c-a3f7-c174480ae2aa","block_type":"box","text":"D An obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid capital","page_number":182,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"afd3d3ce-7f36-4f44-bf8e-86373619a69b","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":182,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"45ca05a2-3f27-4b60-8a03-a2fe7400f63d","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":182,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"df2f42a4-a81c-4543-854e-0721c065a4c8","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":182,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"809dbed0-9ec9-404a-99cf-ba2ecc222377","block_type":"box","text":"days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking of similar","page_number":182,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"d528d4fb-f2a4-4ee9-9f4c-3695404132bc","block_type":"box","text":"action and where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":182,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"863845fd-df48-4566-8a1d-1150b6a447a9","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":182,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"a6e82a8f-a66a-4288-8855-ae920a920ea3","block_type":"box","text":"restructuring.","page_number":182,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"33fca85d-2226-41b2-bcd3-e7ca18bfb5ac","block_type":"box","text":"*Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative","page_number":182,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"52f94353-f869-4228-bdc8-b28edde811bd","block_type":"box","text":"standing within the rating categories.","page_number":182,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"633e9eaa-937c-432b-81ab-b2fa192e2a9e","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":182,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"3ee2c3a5-f4b1-4ef1-a74c-c21766395e83","block_type":"box","text":"A-1 A short-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":182,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"22421060-72d0-4f7b-8aff-80b1f4bc120d","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations","page_number":182,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"06bcf5e9-d790-4b07-8213-f215c113666c","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":182,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"e8516336-d08c-46f4-81d4-e506cd7b2de3","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":182,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"bed9f963-6bb4-4e66-9014-91a18f41adcb","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":182,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"3b58109b-4aee-413d-b31f-4954cd2381d5","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":182,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"4d8f49c0-23e4-4992-b24c-8755a59f43d7","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":182,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"9d06faeb-7a31-4c8b-ac6b-3e11b2017f89","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":182,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"bd6d64a8-1139-499c-8d09-db8e952eefe3","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":182,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"56820bf4-3589-4b86-9df5-458f6cc4b6cd","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":182,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"99bfc5bb-cf43-4a29-9905-a742fce25980","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":182,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"be7cd8ba-199a-41f5-ba5e-b2208c498b1b","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":182,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"d1ee960e-d86a-4fa7-acc4-9e82fe426b28","block_type":"box","text":"it faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":182,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"5b7287ed-4d68-4cf2-a7ab-2a6002b13bda","block_type":"box","text":"financial commitments.","page_number":182,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"4cacf1ad-c80c-4792-84f6-e521013b0602","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":182,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"738f99c8-0302-43fa-90a0-d7e4f84253a6","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":182,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"8342a58a-26d7-4a23-a72b-73042dcd724b","block_type":"box","text":"commitments on the obligation.","page_number":182,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"4bcc47fe-8367-420e-bceb-950bd17f6dbe","block_type":"box","text":"D A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":182,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"5f1903cd-d256-4315-b128-b434799b3e63","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":182,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"fcd66fa8-2957-4c73-abee-a2a9e59fa328","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":182,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"4f807743-13c5-434b-b79b-942e0ca12447","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":182,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"c0bb9050-713a-4c69-b0da-f5a82e51e224","block_type":"box","text":"business days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking","page_number":182,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"9dd2df5c-3433-4b5f-a2c5-e6148d98cadb","block_type":"box","text":"of a similar action and where default on an obligation is a virtual certainty, for example due to","page_number":182,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"657c4db5-eab9-480e-9029-9ab16e9b9807","block_type":"box","text":"automatic stay provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed","page_number":182,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"8298ca40-146a-4035-828a-7235ac50cff2","block_type":"box","text":"debt restructuring.","page_number":182,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"f562a62d-9c1e-4d7c-811a-48c139796fcd","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":182,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"17d7ec3b-0bc8-4a59-83a6-c40dec570ded","block_type":"box","text":"An S&P U.S. municipal note rating reflects S&P’s opinion about the liquidity factors and market access risks","page_number":182,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"edb4f375-83b7-4841-b2ca-fa48e1649e6c","block_type":"box","text":"unique to the notes. Notes due in three years or less will likely receive a note rating. Notes with an original maturity","page_number":182,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"cb647155-50d9-4bca-8b16-b14207abf709","block_type":"box","text":"of more than three years will most likely receive a long-term debt rating. In determining which type of rating, if any, to","page_number":182,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"51304c09-b65a-4189-b215-81ebbaf17ab3","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":182,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"0ea9c47c-bcfa-49b3-a27d-7cbdd517b3c0","block_type":"box","text":"A-5","page_number":182,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"c1f93c33-dba8-4092-a21d-8f2802720149","block_type":"box","text":"NM1026U-5993100-182/236","page_number":182,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6e7cbe09-74d2-4397-a068-75f5008c5c2c","block_type":"box","text":"•","page_number":183,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"88c2659e-41d0-4fcb-939b-965eb3adaee9","block_type":"box","text":"Amortization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":183,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"e5621ac0-5a74-481a-85ae-6629905ef9d1","block_type":"box","text":"as a note; and","page_number":183,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"42311218-eddf-4404-94f5-a96ab1801a33","block_type":"box","text":"•","page_number":183,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"36ffa6a6-dfb9-4e00-b93d-a2dc52e1895f","block_type":"box","text":"Source of payment—the more dependent the issue is on the market for its refinancing, the more likely it will be","page_number":183,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"50f3f294-4557-48d1-9b4c-8ac6b9778c63","block_type":"box","text":"treated as a note.","page_number":183,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"96db8dd5-0672-43bb-a49e-e72543c39df0","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":183,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"5ca40a5e-432f-4f46-a444-8f7e305a5159","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":183,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"b8f83035-2e9f-42a0-9c7f-2575f47b7340","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":183,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"c5d9f869-9e56-413b-a2c2-6d046bd78371","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":183,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"5a7b0fd9-1d82-4300-8fd4-5159f2ae7641","block_type":"box","text":"economic changes over the term of the notes.","page_number":183,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"fa3bf332-8c5a-4b3c-ac82-6d34d205129e","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":183,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"54a1a39e-f2e4-4ef5-8c91-238fbcd876c4","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":183,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"224efd33-7b57-4790-992f-3d82279de3ee","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":183,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"bd0530c5-8d58-4f28-9fd5-3e516fc7e923","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":183,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"39afe424-0ba4-43ee-b92c-6459956f59d4","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":183,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"ea64fdf4-7fb9-457b-897d-2698e9de2112","block_type":"box","text":"Fitch publishes credit ratings that are forward-looking opinions on the relative ability of an entity or obligation to","page_number":183,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"0279978a-f7c0-4e10-b83a-46d1816b04bc","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":183,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"7eab96fc-d23c-4ec9-a2df-f53115de6696","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":183,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"36d85b6d-8b9e-4314-b3a9-57d339f928e0","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":183,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"df47c046-ce57-480b-9562-5394662881ab","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":183,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"661154db-dc08-4797-98c4-372591cc64ce","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":183,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"a8d221c2-9128-474b-95c9-add5a6aa93f1","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":183,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"37154180-ad0e-4877-a4ff-8019f21ae464","block_type":"box","text":"Fitch’s credit ratings relating to issuers are an opinion on the relative ability of an entity to meet financial","page_number":183,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"751dca0d-295e-4b84-b689-bb6ecfd9eb77","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty","page_number":183,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"c1f92b32-6eb4-4e06-a4a8-8e5f6dde1c34","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":183,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"a1297d41-b14c-48cc-8191-4331c261e087","block_type":"box","text":"Credit ratings are used by investors as indications of the likelihood of receiving the money owed to them in","page_number":183,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"d2bc60fb-f9cc-4258-91f9-1e84045d36ca","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":183,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"231b730b-9462-430f-a724-698bd34fa0cf","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":183,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"ff2b0a84-70a0-43f1-91a0-1188f918a546","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":183,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"a491e508-a39d-4404-95c6-7df549f1741c","block_type":"box","text":"receivables or other financial assets.","page_number":183,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"868f420f-ada2-4b54-98ab-fd08fd007c6f","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to","page_number":183,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"e1255d28-0865-4073-9556-b13329b0534f","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":183,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"0f5927bf-65ad-4b86-8fb8-2c7bd18f0bc3","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":183,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"e2445b46-3e68-4bbe-af2d-e8c3582a3af2","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":183,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"154f8d79-1360-4be2-9ec9-19130ca6414d","block_type":"box","text":"while ratings in the speculative categories either signal a higher level of credit risk or that a default has already","page_number":183,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"bf92e96b-fe27-4e43-b7d1-c231db282673","block_type":"box","text":"occurred.","page_number":183,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"5f9d0335-34f9-483d-b6e8-adb095fa7d04","block_type":"box","text":"Fitch may also include issues relating to a rated issuer that are not and have not been rated on its web page.","page_number":183,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"d9e021e2-1de7-4c9a-9297-24ee02a3a225","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":183,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"da2176d2-917e-4d72-be1b-5225c9e1125c","block_type":"box","text":"Credit ratings express risk in relative rank order, which is to say they are ordinal measures of credit risk and are","page_number":183,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"44826926-3f20-45fc-a02f-29d2bf89b502","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":183,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"beeb6214-87d5-43eb-b3e1-f0888403548c","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not deal with","page_number":183,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"5cef6aaf-5fca-4e3f-8ea5-1557e2563ebf","block_type":"box","text":"the risk of a market value loss on a rated security due to changes in interest rates, liquidity and other market","page_number":183,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"db811d5a-eb7e-49e4-a090-f5da5d38d573","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":183,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"1766f6f1-ba20-435f-9761-eb9086cd62a7","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":183,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"32d05ce6-a7b3-45c1-bff3-96f5a10e1816","block_type":"box","text":"Ratings nonetheless do not reflect market risk to the extent that they influence the size or other conditionality of","page_number":183,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"83307b07-e72e-45eb-b05b-a00ffde87048","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":183,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"f5fea866-4566-4ef1-ae0f-1619114ef45f","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":183,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"a59fd533-75fc-4ed1-a216-823d4345edd1","block_type":"box","text":"to the likelihood of non-payment or default in accordance with the terms of that instrument’s documentation. In","page_number":183,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"7d40e78e-1b63-450b-ba35-a7ef5b158ed5","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":183,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"df1b957d-356b-4078-8aef-d8672a88e8c1","block_type":"box","text":"i.e.","page_number":183,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"b39cd285-8e80-4d51-af56-103eb5dd81ef","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":183,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"95c940f2-e208-4b96-abb9-3d94662aa43c","block_type":"box","text":"the obligation’s documentation).","page_number":183,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"f01f3b5a-3c72-4873-b35b-6da871498008","block_type":"box","text":"A-6","page_number":183,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"61689704-c480-46ae-9464-e61818d86fa6","block_type":"box","text":"NM1026U-5993100-183/236","page_number":183,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b5995506-6bd9-4b52-a879-f35f957f7320","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or certain note","page_number":184,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"d7d0bf50-20f1-456b-8e52-5a904c14d553","block_type":"box","text":"issuance programs or for private ratings. In this case the rating is not published, but only provided to the issuer or its","page_number":184,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"2b5114d0-8adb-4a99-81bc-5493cf926b5a","block_type":"box","text":"agents in the form of a rating letter.","page_number":184,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"b2a40762-7fb0-4d00-888e-2392598447dc","block_type":"box","text":"The primary credit rating scales may also be used to provide ratings for a more narrow scope, including interest","page_number":184,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"2735a0dc-22d3-4954-8e0e-05237ec49f8b","block_type":"box","text":"strips and return of principal or in other forms of opinions such as credit opinions or rating assessment services.","page_number":184,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"0f9f450b-7399-497a-b4fa-f8ec87662cdf","block_type":"box","text":"Credit opinions are either a notch- or category-specific view using the primary rating scale and omit one or more","page_number":184,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"5cdbbe3e-b4ce-44b3-bdbb-519958cd8197","block_type":"box","text":"characteristics of a full rating or meet them to a different standard. Credit opinions will be indicated using a lower","page_number":184,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"8abff0ff-5e6a-4e5f-a5a9-38f1ca3e7021","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":184,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"722b44a6-a899-46b1-9b30-7974ccf8c12f","block_type":"box","text":"e.g.","page_number":184,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"5df7078b-f47d-41d5-a7d2-99df738d294e","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":184,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"795736aa-f0d4-4cd0-80fe-f366560de33c","block_type":"box","text":"opinions will be point-in-time typically but may be monitored if the analytical group believes information will be","page_number":184,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"3de38bcb-6504-49a5-b419-7ed341ac164b","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":184,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"7d139b68-b653-4470-a948-3f90da0c7ad5","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":184,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"a1b5e876-1367-4045-a170-984f5bdfe1ef","block_type":"box","text":"rating assessment services are point-in-time and are not monitored, they may have a directional watch or outlook","page_number":184,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"a112f69f-c595-4016-871d-25541b8a0495","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":184,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"bf26467e-0fb4-4513-b15b-17f2f2782588","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":184,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"53740e2e-e388-420a-9bff-0588efa10739","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":184,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"293b6d3b-a3f3-46d1-928b-7b9575245976","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":184,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"9b8a7feb-9f27-4dc3-96d5-6c0349d5b7c1","block_type":"box","text":"default on that liability is also included in the rating assessment. This notably applies to covered bonds ratings, which","page_number":184,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"ff7053be-0d11-42bd-9f96-e748cf4ab1f9","block_type":"box","text":"incorporate both an indication of the probability of default and of the recovery given a default of this debt instrument.","page_number":184,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"fc6d57a9-4577-4106-8de1-12b87ce39806","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":184,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"04b8f620-2f17-4bf5-844d-7545631437e2","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":184,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"c739344e-4498-42be-b6e5-4463479e9b1a","block_type":"box","text":"Individual obligations can be assigned ratings higher, lower, or the same as that entity’s issuer rating or issuer","page_number":184,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"ec985bda-35f1-4108-b5f0-4a4afa9b77b6","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":184,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"270d760c-0b92-46f3-a3c6-5c3e8681a3d1","block_type":"box","text":"Ratings.","page_number":184,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"dca992e8-8454-4474-b3a8-0eeaf6c49680","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":184,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"63c076d8-c6f1-404b-97b6-228e1037ad1d","block_type":"box","text":"same as that entity’s issuer rating or IDR, except DIP obligation ratings that are not based off an IDR. At the lower","page_number":184,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"d0026fe8-82df-4656-af81-6ec6b7e4464f","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":184,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"a07613d1-c9cc-42dc-bf7b-5cd5f960019c","block_type":"box","text":"obligation ratings.","page_number":184,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"71fad2ea-325f-4d7e-af6a-042c5f60c5d4","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":184,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"8a3ae154-6175-44fd-ba33-65792299aa27","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":184,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"d04e4fcc-7f3b-4cad-8672-2f915e7b4456","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":184,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"645fffa9-b19a-41a7-b5aa-eee46d1f2432","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":184,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"34b8705e-49c5-4902-93e8-98d73d0f4014","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":184,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"239cbe17-16b0-472f-bd4c-c5e93defadcf","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":184,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"f1bfff45-749b-4993-9c44-0da360fd3a3c","block_type":"box","text":"to foreseeable events.","page_number":184,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"ac92fcb7-4eaa-41cb-b177-dfb17063b13c","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":184,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"1e6c6be5-448a-4286-a6a4-657909ebce60","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable","page_number":184,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"c43d1eca-1b6c-4929-a4f3-d18643ba3586","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":184,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"2807e88b-8311-4265-b2b1-082d8414ffbc","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":184,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"37228c60-812d-4ea5-a743-fb3e1a982f74","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":184,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"c8228eed-12e2-4a94-b361-7025c0fdb3e9","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":184,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"4bf25f1f-0a33-4b2e-aaaa-f6ff4b8d8a28","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of","page_number":184,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"bae557d6-cc06-4b13-9df7-f676f484c7d3","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":184,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"9dea2d7f-63ec-4cd9-ad47-75be8f10e441","block_type":"box","text":"flexibility exists that supports the servicing of financial commitments.","page_number":184,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"f1953dc8-b828-42df-ae21-3a903dd95130","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":184,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"17270e35-0c93-409d-8af1-39d948225d83","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":184,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"acc5b4d3-f642-43b8-836f-763befb1086a","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":184,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"84fab59f-3256-4c8a-a757-2446862be440","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":184,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"cea7a067-7155-4763-a72e-fe5188de8c9f","block_type":"box","text":"possibility.","page_number":184,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"762d683a-be54-4dc4-a080-fd27ce61a136","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":184,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"03d5c3f3-6bda-4d3f-bf8c-e9985ddb28e0","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":184,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"a73aa8c8-ae84-4367-b2b9-063215dcef3d","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":184,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"cffbe885-5d3b-43b0-890d-4fb6148f32ff","block_type":"box","text":"A-7","page_number":184,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"1d19c3e1-bab6-4d9a-a37a-7a66d72276ac","block_type":"box","text":"NM1026U-5993100-184/236","page_number":184,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"df4d9e9e-951b-491e-bc22-88d8bfb98400","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":185,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"3b043657-f154-4d6e-89ff-eebfb700c6c2","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":185,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"c4c34d5b-9949-4a94-b50b-a89e71570866","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":185,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"6c9b287b-eb9a-4b86-b45d-08c5e06d0651","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":185,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"f3c59349-9910-4638-b040-54b1b3ae3f0b","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":185,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"13cc7056-bb30-4dbe-9507-acb40a72b2ba","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":185,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"56930e0b-92b2-43a1-aa95-2c93393e7074","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":185,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"07c9a30f-0d3e-4888-b266-137c7acb7b27","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":185,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"6feceb86-320e-4951-a4fd-3077ed518d67","block_type":"box","text":"relative status within major rating categories.","page_number":185,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"f2ffbde5-dc60-4ae2-95d3-2c11df50c11f","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":185,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"37763fe6-30c9-4ed4-8eaf-717133380bc5","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the short-term rating","page_number":185,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"9f33f431-3ca4-4d66-8c52-5d97d8395c50","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":185,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"7bb00f2a-173d-4474-a642-beab6d22cdcf","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":185,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"eb0d6a76-1417-4150-962e-e74b61f007b4","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated","page_number":185,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"bf2e8234-9ab3-4377-997d-95622c4ad7fa","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":185,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"0f9c01c1-5fe8-42eb-a7b2-0b5aa33f6e45","block_type":"box","text":"relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to","page_number":185,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"8adc7dd0-2a20-49e3-9047-14539e22ecbe","block_type":"box","text":"obligations whose initial maturity is viewed as “short term” based on market convention. Typically, this means up to","page_number":185,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"06759fbb-bac9-467a-9d4f-07a55b2a3ce4","block_type":"box","text":"13 months for corporate, sovereign, and structured obligations and up to 36 months for obligations in U.S. public","page_number":185,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"d6d4e515-1137-4e22-a00e-8f986f5bb091","block_type":"box","text":"finance markets.","page_number":185,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"80ffba2d-1b7f-4275-b29d-26eb4f4b285f","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":185,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"7b6880d5-c13e-4685-a771-40d73906d34c","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":185,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"fcb7dff8-7229-44a3-844c-806e62e3666d","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":185,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"449831e4-60af-4a22-8557-09fb4c094a27","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":185,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"8738a7ee-ce98-483f-8925-924e0736c250","block_type":"box","text":"commitments.","page_number":185,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"8162b10c-5742-4154-9c74-805b455997ce","block_type":"box","text":"F3 Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":185,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"7b26e0f3-bb05-4a6a-966f-dd5e2433dcb9","block_type":"box","text":"adequate.","page_number":185,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"f8123929-99b9-46de-8d5e-90596aac2ede","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":185,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"f42d1607-2462-4e68-853a-705bd22debe6","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":185,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"a197b4ef-b448-47e0-88fc-8975ca22c3b9","block_type":"box","text":"economic conditions.","page_number":185,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"121c713b-3f18-4918-ad1a-b86b380502cd","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":185,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"76b79122-ba45-43d2-92e4-9520e2e162a3","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":185,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"5642ef2f-cffe-4130-b54d-76afa8bbe154","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":185,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"6b5b8e24-efbf-418c-a8fc-8e710d54751a","block_type":"box","text":"ratings only.","page_number":185,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"52af9bb7-f053-4040-8395-8775895dc6dc","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a short-term","page_number":185,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"c34689f1-f974-4ff8-8ceb-e1098d12feda","block_type":"box","text":"obligation.","page_number":185,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"0584978e-708b-45fe-9776-89d06a7c6206","block_type":"box","text":"A-8","page_number":185,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"8c875bc8-9b1c-4ced-a7cc-00b084030470","block_type":"box","text":"NM1026U-5993100-185/236","page_number":185,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"404c368b-40e7-43de-8604-85322401bf97","block_type":"box","text":"APPENDIX B","page_number":186,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"23b0f164-946c-4234-abac-f1fd05595055","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting 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The guidance informs the voting recommendations BAIS","page_number":190,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"c8083973-88ef-4bb0-9eb2-0379e6f3b987","block_type":"box","text":"makes to BlackRock’s active portfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":190,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"2e14de7f-7ca1-441f-8313-c414b9a4efeb","block_type":"box","text":"equity, systematic equity and multi-asset solutions strategies. It also may apply to holdings in BlackRock’s index and","page_number":190,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"003e7eca-7ad5-4f0d-85a7-5991f17ec08a","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":190,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"d97897d0-ef0c-462a-8567-d6ff8036cfe0","block_type":"box","text":"The guidelines are not prescriptive as active portfolio managers have discretion as to how they integrate these","page_number":190,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"8763bf93-b6b8-4ea6-8db0-34626cf6c0c4","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":190,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"ea02ab36-7094-447a-99fc-f1017225bde7","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":190,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"0d4d118a-2275-4c31-8302-d6c1a10a528b","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":190,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"40c452fd-fb0f-475e-84ef-38e005ccb517","block_type":"box","text":"1","page_number":190,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"7e89f9cb-9205-4e7b-b503-6f3dccb862c8","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":190,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"2dc017ca-f8ed-4ee6-9b0c-98564d935ba0","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":190,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"af59b4e5-8685-456a-ac12-17a1d96dc053","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":190,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"d93d19a5-439f-4812-be94-16e2a0d67777","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":190,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"4ca1d372-4b90-4a98-afc9-45c9814910a1","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":190,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"6f3d0ec8-4c73-4d94-b380-0ccc00351d91","block_type":"box","text":"2","page_number":190,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"a6758574-4754-4403-ae65-d7bdab5df09b","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part","page_number":190,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"4c69a037-31fc-46a8-902e-f70283b1bce3","block_type":"box","text":"of a strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. As a","page_number":190,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"1b5c69c7-c310-45bc-aeff-9024b4546903","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":190,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"7827aa44-1a1d-4006-869f-e5a376a1f72c","block_type":"box","text":"policies.","page_number":190,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"99369968-54bb-4c7f-99c3-d98068cb48c0","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":190,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"1f09ccce-ac51-46b0-99e3-c0865850eeeb","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":190,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"909f1efb-422e-414d-97f6-60f3a71266ff","block_type":"box","text":"NM1026U-5993100-190/236","page_number":190,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b9a6e114-986e-4631-93a6-b4baff8edc41","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":191,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"702544c5-492e-4aa3-b042-19795d13c166","block_type":"box","text":"BlackRock’s mission is to help more people invest better. The money BlackRock manages is not its own — it","page_number":191,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"baff3fe4-7d00-4285-ae6c-b6d30adfd1f4","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio construction decisions.","page_number":191,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"bb4af64c-e723-4eed-adf5-7c5444d3a296","block_type":"box","text":"As a fiduciary, BlackRock invests on clients’ behalf to help them meet their investment objectives. The firm does this","page_number":191,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"57a215f9-646d-473a-adee-b519cd3d9c3e","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":191,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"e3a22ec7-f238-4477-8e4e-ca85928da5ee","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":191,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"aa5c91ad-3738-4fa6-812b-f7118a3bbb2a","block_type":"box","text":"this work with research, data and analytics.","page_number":191,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"7fb73c25-5d4b-4fbc-991d-88050e1ae54f","block_type":"box","text":"At BlackRock, investment stewardship is core to our role as an asset manager and a fiduciary to our clients. As","page_number":191,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"377274d6-4768-45d6-842e-3716078e4428","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":191,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"c4e160bd-5e72-4199-bc55-d0f4c50dec12","block_type":"box","text":"practices that, in our experience, support companies in delivering durable, risk-adjusted financial returns over time.","page_number":191,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"84d331a6-e9b7-45d5-87e0-0d28cdcd9b61","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":191,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"77ad4c9e-00db-4353-a8cb-ad7c63a83cc9","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":191,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"85d5e601-c19e-4a10-b7c4-422ae1b9203d","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":191,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"0d73d4f2-1e7b-43cf-be3a-c244a2ba7587","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management Group and","page_number":191,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"4590a1d2-4df9-4834-b953-3cc9910f384a","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":191,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"bc9edf9b-5aa5-4813-8025-3b190d7e6bcb","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":191,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"d6a24533-6375-4416-bdf4-b720e20c82c2","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":191,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"b555d0f5-de08-4667-9c96-956bdcc30e33","block_type":"box","text":"investment analysts and portfolio managers, with whom we work closely in engaging companies and voting at","page_number":191,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"80068114-9835-4271-8e40-b70e7d0fd91f","block_type":"box","text":"shareholder meetings.","page_number":191,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"bace676e-7a67-4e5a-8142-471b0fa47500","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":191,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"0eaba701-9ebf-4e03-a0e3-138f3d06de1f","block_type":"box","text":"investing.","page_number":191,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"a639b907-6665-4cbe-be44-48411c274ea5","block_type":"box","text":"3","page_number":191,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"56e2afa9-8589-45b2-9691-df54e85dd9c8","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":191,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"29b495c4-68c6-4e6d-90e8-773b7ab0fce7","block_type":"box","text":"manage risks and opportunities to deliver durable, risk-adjusted financial returns. Portfolio managers and","page_number":191,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"19401da5-e218-4442-8fd6-bb9ab0592275","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":191,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"542d7735-5b90-4282-b470-51a93be3b858","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":191,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"78c34811-b450-456c-a1db-58a0a6edd4c8","block_type":"box","text":"corporate strategy, capital structure and financial performance, operations and material sustainability-related risks,","page_number":191,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"3e952e12-99d1-4239-9adb-0079a735cf69","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":191,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"fd5434e0-e4b4-431f-8cec-dea0ec2ce8dd","block_type":"box","text":"supportive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":191,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"dfe04662-a479-4ac8-93fc-93c14cdd1ef0","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":191,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"1979d1c2-b04d-4ab3-b14f-533e918dcb10","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":191,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"d62c9a8f-fec9-4b29-ba86-146c26e0c211","block_type":"box","text":"each portfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":191,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"1086d5d2-19ff-4be9-b242-b0f61e39074d","block_type":"box","text":"vote the holdings in Systematic Active Equity portfolios in accordance with these guidelines. We provide voting","page_number":191,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"57670181-9fe1-4893-b24c-7dc0e5bcea0b","block_type":"box","text":"recommendations to fundamental equity portfolio managers, who may determine to vote differently based on each","page_number":191,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"71de6bf8-290a-4a60-9b80-c2e1ade3def6","block_type":"box","text":"portfolio’s investment objectives and strategy.","page_number":191,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"8ded273a-9f8b-4b2f-8be4-e7abbd561018","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":191,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"d5a064b1-17c7-44d4-aaa0-d2a95ee76f53","block_type":"box","text":"management teams and board directors","page_number":191,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"14bdeee0-1038-4ac4-9fae-f414bda4b006","block_type":"box","text":"4","page_number":191,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"54e581d5-372d-41a0-a181-9d27be8c1b61","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":191,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"5d202f21-7d16-4101-960d-dd81a0df853a","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":191,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"a8b299bf-7038-47e7-92dc-b82211b66241","block_type":"box","text":"applicable elements of governance that support a company’s ability to manage material risks and opportunities and","page_number":191,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"2cd256f3-244b-423a-b635-24c5ea919b9b","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":191,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"7b9b3706-6d03-4a34-b8e9-013ef307f1e1","block_type":"box","text":"norms within their local markets or, particularly in markets without well-established norms, aspire to widely","page_number":191,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"a920a42a-03eb-40dc-8f46-00996ab418d3","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":191,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"57c108c6-1abe-4d9a-ad72-ec6352dab580","block_type":"box","text":"to – direct a company’s strategy or its implementation. We look to companies to provide disclosures that explain how","page_number":191,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"db4fd8e0-63a7-4139-a0e2-747971fa3d38","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":191,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"f17f3bc6-e6db-4bcf-9ae9-28d9b6e0fdc5","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":191,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"1414774f-7b54-4fbb-aee1-556d3c78c406","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of corporate","page_number":191,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"1a27fcd3-d43f-4078-9c70-363e4d05884a","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an important mechanism for investors to express","page_number":191,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"9f183f1c-22f7-458b-8455-a0edf59990b8","block_type":"box","text":"support for, or concern about, a company’s performance. As a fiduciary, BlackRock is legally required to make proxy","page_number":191,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"a35e2f1a-3e9f-4bd0-add8-4363d075a946","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":191,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"15d225bb-86c2-4af7-9cd4-05b8ff723633","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":191,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"09e81b6b-54e3-4c5e-8520-56949643051c","block_type":"box","text":"3","page_number":191,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"d581f908-58e7-44f1-8679-59e51ea923da","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":191,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"25306399-4b78-4b34-ad7a-45d7dd62889a","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":191,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"e7508fd5-5f28-4309-aaca-f826f554d35e","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":191,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"965d28d8-3c70-4c02-a5fa-bf5d62a1269b","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":191,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"1c9c4e14-e390-43a4-bc49-13bcb2f5a827","block_type":"box","text":"4","page_number":191,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"80e30345-ab2b-407b-881c-4ece9e4da965","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":191,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"1612935e-37dc-4049-90a2-d01c52631ebe","block_type":"box","text":"boards and their members, where relevant.","page_number":191,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"26e07e20-c05f-43f7-a6ac-8442ebe9eefd","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"cccdbda6-68d6-45ad-b713-efa0790dce34","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":191,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"237b2526-592a-453a-b548-25b10dda4cf1","block_type":"box","text":"NM1026U-5993100-191/236","page_number":191,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b7859e2d-7c34-4c1c-b97a-3cbd9c871e31","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As indicated","page_number":192,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"0753f540-9d33-463d-86cb-a7cb563ef110","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":192,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"9044a3bf-176f-4cc6-ad3f-98adf1042ba4","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":192,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"ad21a9f8-8343-44e6-bdad-fda9ac02f5df","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":192,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"2bc95fb9-62b8-47d8-8c50-f560f4dfb0f8","block_type":"box","text":"on a case-by-case basis, in the context of a company’s situation and the investment mandate we have from clients.","page_number":192,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"7efb45fb-e50e-48b3-92a5-67c72385b79a","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":192,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"1feec772-afe5-495c-96fe-88e2bf41bb80","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":192,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"5eacaf81-bebf-47aa-bcc9-8f2eb4add720","block_type":"box","text":"5","page_number":192,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"842d7a9f-7370-47ea-bc30-d78d8a708832","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":192,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"47a03245-42b7-40ad-aaec-0882e7bb29ea","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":192,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"19e630e5-951a-4aac-b59a-259dce3b98a5","block_type":"box","text":"component of fixed income investment strategies at BlackRock, particularly for those with sustainability objectives in","page_number":192,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"d614ad63-dec5-4645-b5c5-7eb44451525c","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are undertaken in","page_number":192,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"9ab59371-807a-45fb-bbb8-ede6f903c894","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":192,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"918219c2-714e-41c8-bd6b-71345bea866a","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":192,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"ae118d64-e3f0-4c3b-9703-064e61ba52b8","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":192,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"df20128f-db4b-4124-8834-233323c1c2e2","block_type":"box","text":"5","page_number":192,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"764bb607-508e-41f3-bdd0-5b642c970052","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":192,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"6e13a35a-af19-4b4a-93d0-7c1aba7459f6","block_type":"box","text":"multi-asset solutions strategies, as well as holdings in BlackRock’s index and active fixed income strategies, to the","page_number":192,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"fd1fc302-29ce-4cb4-ae19-211a5f534999","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":192,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"765fdc6f-70bc-4b86-94ac-62f186f87269","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a32cd969-c3cb-47cb-91cb-f3d9d827d306","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":192,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"d010349c-1ba3-49ce-82f4-86b6b0a41321","block_type":"box","text":"NM1026U-5993100-192/236","page_number":192,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"511fc242-a1ca-46aa-a251-a8b2236ee6f9","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":193,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"82a8eb82-0f80-4a1a-9c18-bac78ba3531a","block_type":"box","text":"Roles and responsibilities","page_number":193,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"a498fef9-436b-4681-a1a7-01de08fc8c58","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":193,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"72dd7c6e-31ec-461f-a63b-9589d983aac1","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":193,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"672fd9be-ee6e-4d4d-9de2-c9feeb50421b","block_type":"box","text":"6","page_number":193,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"0822f00c-8c3b-43c6-8539-3c5bc96ac786","block_type":"box","text":"We look to the board of directors (hereafter the “board”) to have an oversight role in the establishment and","page_number":193,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"376ee299-a676-4d9a-b08e-15bcc4220394","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":193,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"b22b3f6b-b548-4f47-9c77-a803194b2cf4","block_type":"box","text":"can better position a company to be resilient in the face of a changing business environment, help reduce the risks","page_number":193,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"8b668226-ff75-4f9e-84a1-4bf88d3e798f","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":193,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"70767225-c411-426e-b0f3-810078f9427e","block_type":"box","text":"performance over time.","page_number":193,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"0bfc66c3-21e0-44a9-8a93-60c87b473087","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":193,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"6d6cddbc-ddda-4d38-86c3-e65421585bf0","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":193,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"be668085-73b8-4f98-9801-ecd14078c931","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":193,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"e7b76b4e-4ba8-469f-ac1e-7c76d5335eab","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the performance of the CEO","page_number":193,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"e1943ecf-604d-4319-bb6d-27bd615e7ad8","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":193,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"2149a5a4-683d-4056-abdc-b5955ab2103b","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":193,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"e2522e7d-8b53-4a7d-965e-ec39cbf86c43","block_type":"box","text":"Composition and effectiveness","page_number":193,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"b8a17aa9-f0cb-4685-b282-19f38c0cb480","block_type":"box","text":"Appointment process","page_number":193,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"a9c67b67-4d42-4393-829b-576d7da5acd5","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":193,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"3e707bd4-0dfe-47a4-be12-35726d82d825","block_type":"box","text":"board is composed of directors with the appropriate mix of skills and experience. Generally, the board or a sub","page_number":193,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"e31f469e-1468-49fd-8296-896ec53e8ef3","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":193,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"53d97a7b-f400-4a87-a00b-384612ab7702","block_type":"box","text":"e.g.","page_number":193,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"4a783331-c3ec-491a-84e6-e7adcc511266","block_type":"box","text":", sector, maturity, geographic","page_number":193,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"c360fe68-4151-4b07-8124-56cb90fde097","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":193,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"5a1504e7-2b83-4d78-a49c-730b14becf39","block_type":"box","text":"e.g.","page_number":193,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"3a26c12a-0302-4bda-b5c6-d90357003e75","block_type":"box","text":", financial expertise, industry track record). To","page_number":193,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"f9b30735-357d-4312-a076-45f2669757e7","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":193,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"d4278ebb-aa75-4315-8828-8f37473bc8db","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":193,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"24310dfb-ae23-4e81-ad35-0baffa1d2c6e","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":193,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"9e8aa452-90db-4afc-a91d-951a5e7bdae0","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":193,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"bb5ee1bc-1964-4f9e-9fd7-4d0ed368a282","block_type":"box","text":"and local market requirements.","page_number":193,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"cac7549c-8a03-4dd1-bf5b-699969d5339c","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any particular board","page_number":193,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"789c9830-7c8b-41cb-880a-a31aa39816b5","block_type":"box","text":"composition in our engagements or voting but seek to understand how well placed a board is to act in investors’","page_number":193,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"b0bd0b03-f545-4cce-93aa-d700e13344f5","block_type":"box","text":"interests. We may vote against the election of the most senior independent director, or the chair of the relevant","page_number":193,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"4a712c13-e8ef-4b2f-95f4-edef52edd30e","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":193,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"af055529-fefc-43e9-8038-bf2f382ee42b","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to support strong financial","page_number":193,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"507c6f8a-b02d-463c-842e-5f1c14a1a168","block_type":"box","text":"performance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":193,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"90abd11c-f8b8-4f7d-97a2-0a729a2517cf","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":193,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"6d0374e5-a3f3-4467-a675-a0e4bad6dc7f","block_type":"box","text":"Independence","page_number":193,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"633a2a0c-e857-4f78-be8e-c72d41e4bc64","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":193,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"877c133a-23f9-4e79-9e6b-6949ba6e8fea","block_type":"box","text":"e.g.","page_number":193,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"f09fbdd0-34a6-4d31-b0d0-aaf46ee29037","block_type":"box","text":", government or","page_number":193,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"67ff6b1e-ac5d-46b4-8856-fb6ff3aa6337","block_type":"box","text":"employees) is of paramount importance to the protection of the interests of minority shareholders such as","page_number":193,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"3965009b-1548-4c58-8ed8-0fa20cca1f94","block_type":"box","text":"BlackRock’s clients. We consider it good practice for at least half the directors to be independent and free from","page_number":193,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"852c7e49-bf1d-488c-9273-98ca315a9115","block_type":"box","text":"conflicts of interest or undue influence.","page_number":193,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"36f11aa0-ad2c-469d-9959-9d493252ea00","block_type":"box","text":"7","page_number":193,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"c3c38c97-4caa-4a56-b608-c4cc2d173237","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":193,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"37ccdbd5-3cad-4c6a-884f-7f3ab360b0a5","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":193,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"a4cbd341-304e-46d5-9840-528fd5e8bb01","block_type":"box","text":"independence should meet those local requirements.","page_number":193,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"df343833-84e5-459a-800b-db4661488b2e","block_type":"box","text":"We may vote against the election of non-independent directors if the board does not have a sufficient balance of","page_number":193,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"d72d15dc-fdbf-4b60-8932-1113ef2efacd","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":193,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"8532bf5a-eeb2-4ddc-97d0-099c53739e43","block_type":"box","text":"composition if this is a perennial issue.","page_number":193,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"e04b3a15-04a7-41f2-8a49-a783070f53f2","block_type":"box","text":"6","page_number":193,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"950651af-21cf-46a9-ad64-065731fad7fc","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":193,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"51dae742-69ce-4156-88c6-203aee3946b2","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":193,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"a4925025-3b3f-40b3-b72c-69ddff158d99","block_type":"box","text":"7","page_number":193,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"e8da3d1d-bf39-4bfa-9da0-4dd2c44a3686","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":193,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"a885f699-a427-4b90-b0e2-f762a57ee7bf","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":193,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"069c2520-106a-4dab-8f66-01a4be039642","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":193,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"ae4d8d5d-171c-4a33-a1d0-eadf005d0083","block_type":"box","text":"could, or could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests","page_number":193,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"bdd345e0-3fd6-4ded-966a-df242cb90c9b","block_type":"box","text":"of the company and shareholders.","page_number":193,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"2102ea24-4474-4ac4-8b81-f3de8159228b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"274d89e6-b8c0-4e47-a7e0-6b045485560f","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":193,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"c4919113-36e4-4348-8f2b-ea8a06b2d4e1","block_type":"box","text":"NM1026U-5993100-193/236","page_number":193,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"baac84fd-6b37-4bba-be01-b6cc244180c1","block_type":"box","text":"Independent board leadership","page_number":194,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"37e6542c-250a-4dd6-91b5-542b8634e0a3","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":194,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"100a627a-bab6-4622-b376-92650be4f3ff","block_type":"box","text":"board leadership. One is a non-executive, independent chair of the board who is responsible for leading the board in","page_number":194,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"7d73b32e-8baf-4245-87af-353398c2a7d7","block_type":"box","text":"the effective exercise of its duties. The other is a lead or senior independent director, who is responsible for","page_number":194,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"5e9a8289-abcc-422d-a896-35ac9f78444c","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":194,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"f712c3c9-f6c0-4136-b8a4-48620a48b5a0","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":194,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"2081ae7a-9e4c-4cef-9b1d-2941288ad150","block_type":"box","text":"ensure the board is effectively fulfilling its responsibilities. In our view, the independent leader of the board, and/or","page_number":194,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"0df136b9-98d8-4324-8015-bf40fff014ba","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":194,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"ad25023b-80ce-4296-b758-d2e7597b57f8","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board leadership model and","page_number":194,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"6622e4dc-b516-4f4e-9937-6b0b4d7c3cca","block_type":"box","text":"how it serves the interests of shareholders.","page_number":194,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"0cf62572-bfcb-4083-9c44-474499806a8a","block_type":"box","text":"We may vote against the election of the chair of the committee responsible for board composition if there is not","page_number":194,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"1901b8f2-9dce-4cc4-9ebd-7fb956e31eaa","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board performance. We may vote against","page_number":194,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"9576695d-bf08-487f-92dd-aeda7d4dfe61","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":194,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"876a2de2-a496-4525-b30c-086ff6d45859","block_type":"box","text":"Tenure and succession","page_number":194,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"d2581ca3-4adb-429d-be04-5ffa01caad45","block_type":"box","text":"In our view, it is good practice for boards to establish the length of time a director would normally be expected to","page_number":194,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"29e1aa11-8255-4d10-aa53-be53e056d3cf","block_type":"box","text":"serve, in line with market norms where those exist. We find it helpful when companies disclose their approach to","page_number":194,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"18c2dae7-bd39-470b-b2c8-71258a8a6619","block_type":"box","text":"director tenure particularly around the contributions of directors who have served for longer periods than typically","page_number":194,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"d5f05442-6d85-456a-bfe1-56d140fb91f6","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":194,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"87f6bae1-ccf3-4ef5-81b2-3190e31e8a2a","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":194,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"c0d7d90d-595c-4bd4-8650-e914d3af29f6","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":194,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"ffb79f25-bc7c-4794-ab3c-1706b74334d4","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and expertise with continuity through the","page_number":194,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"efe58567-9334-4bd2-be6b-93f745935e06","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":194,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"610192e8-0e46-4793-90d4-0bfc8e53f439","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":194,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"1f482ff9-90e2-4aff-aa79-057fcba45875","block_type":"box","text":"practices, we may vote against the election of the chair of the committee responsible for board composition if a","page_number":194,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"32e46c03-6ae6-4d78-b696-d4a9d81edc8c","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":194,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"418c5db3-ecbc-4cdb-942c-5c3f35a5c926","block_type":"box","text":"election of directors who have served for more years than is typical in markets with specific guidance, where the case","page_number":194,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"98b9c926-575a-4526-9220-a5ec17e81248","block_type":"box","text":"for their continued service is not evident.","page_number":194,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"c0cde9c8-e1de-47c3-8e25-d76a6d9cd5cb","block_type":"box","text":"Capacity","page_number":194,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"c40c0261-0640-4a99-9ae5-2c5feeed93c0","block_type":"box","text":"To be effective and engaged, directors need to have the time and energy to commit to the role. In our view, an","page_number":194,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"a38a5028-65ea-480c-b13a-0fe336ae6fba","block_type":"box","text":"effective board will assess the ability of its members to maintain an appropriate focus on board matters and the","page_number":194,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"36380867-9161-43ba-b827-d5ba9b4e15a1","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":194,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"20c69f84-9423-40c9-85f1-3c840cc9e9a9","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":194,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"13360829-38e6-47a4-bc38-ce6683667258","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":194,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"2a55e49e-1eda-4511-b852-1d2082bfc161","block_type":"box","text":"determinations across markets.","page_number":194,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"0335d525-4074-4e5c-bd49-36c10b1975d4","block_type":"box","text":"We may vote against the election of directors who do not seem to have sufficient capacity to effectively fulfill","page_number":194,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"23bf3102-6c15-45ec-b1ea-745706db00ba","block_type":"box","text":"their duties to the board and company.","page_number":194,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"85f1db43-f4f6-4b71-be30-f6914f51d136","block_type":"box","text":"Director elections","page_number":194,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"f7c60c03-f0c9-4465-baa5-80a376827dd4","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A classified board","page_number":194,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"d2bd06a4-0813-4a85-ba33-a196bbd23d3c","block_type":"box","text":"structure","page_number":194,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"78984b8c-10ea-4d53-b477-b21444472fd8","block_type":"box","text":"8","page_number":194,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"ee8b3185-c3dc-440c-b7cc-15ed6c639b87","block_type":"box","text":"may be justified by a company when it needs consistency and stability during a time of transition, or on the","page_number":194,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"547c1d27-78c6-4f60-bac7-16b7cb29e5b3","block_type":"box","text":"basis of its business model (","page_number":194,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"6aa2abfd-ce1b-48e4-a903-8f8b0592d18b","block_type":"box","text":"e.g.","page_number":194,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"f17a32cb-130a-49af-80f9-4e21597281bb","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":194,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"0d60c19e-fbe2-4bc3-b912-570e3bb5989d","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in bundled","page_number":194,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"e59dfb3a-6234-4acc-926a-56de87538259","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":194,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"6ad6d45e-3fd9-4cee-9ca8-c0f14ee4637e","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not support the election of directors","page_number":194,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"af067d5d-c2ee-4862-a633-6cc9086cc3e1","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":194,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"5212395c-b386-4d55-b4b4-32c31c733d9d","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":194,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"863e22f2-6633-4dcb-80f4-6bf8ab26ac8f","block_type":"box","text":"shareholder meeting. Where a company’s practices differ, we look to the board to provide a detailed explanation as","page_number":194,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"d682f87a-fbdf-46c8-b767-82b1d6875672","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":194,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"aa2e4f4e-6345-495a-83a3-e09c2f6cdc8f","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":194,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"f023e9a5-4013-44c4-9a56-bcd6a05398a0","block_type":"box","text":"a simple majority vote standard for director elections. We may vote against all the directors standing for election as","page_number":194,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"a6d6c75f-69f2-40cd-acc7-52f345d4f204","block_type":"box","text":"part of a single slate if we have concerns about the profile or performance of an individual director.","page_number":194,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"5bf2e54d-84d1-4ec1-8429-1ade252e4f48","block_type":"box","text":"8","page_number":194,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"c37305df-6c8d-4ea6-a158-62bcd0d3aad9","block_type":"box","text":"A classified board divides the directors into classes with different overlapping terms. As a result, only one class of","page_number":194,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"5a180822-fe44-403a-9c60-eaa5f0401228","block_type":"box","text":"directors stands for election in any one year.","page_number":194,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"34a03eff-e1c0-4bca-a925-fa6139d9b517","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"78f28c08-3df0-4233-98a1-da09ec5b0691","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":194,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"347d16b8-f631-4b13-817d-518cb060d498","block_type":"box","text":"NM1026U-5993100-194/236","page_number":194,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2c0b95ee-f4ab-496d-b84d-e4dab8610a8d","block_type":"box","text":"Committees","page_number":195,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"2bedc53f-4642-4579-8ca9-9156d86ad63a","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":195,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"e47f73ec-f933-4fe8-af97-f8351472b7f5","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":195,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"c07c000f-9e9c-4584-bc23-4d00c9b5a67d","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":195,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"8769dd46-a952-45d2-b8e6-b97ad5e7b437","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":195,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"73b7a2a2-8013-4c2a-8627-b579edf3dde3","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":195,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"54cd3ff0-405f-47b0-b974-b353bee6d9a9","block_type":"box","text":"matters are assigned either to the full board or to one of the committees. It is helpful to investor understanding when","page_number":195,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"e251d34e-6ba4-4b5c-bdd7-4e00daf87602","block_type":"box","text":"the board discloses the structure, membership, proportion of independent directors, and responsibilities of each","page_number":195,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"aab70862-bf29-49af-b352-1b9c73a1ab0e","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":195,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"68701e73-fb1f-4623-9dc2-9ae0cfaeceab","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"f9144ec9-39f0-4172-954a-a244f68a7b6d","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management and","page_number":195,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"4ab31271-ec15-4173-a104-716cc410141b","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":195,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"a839c756-d8a1-4de0-a99a-5f02ba522bd5","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":195,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"73c0e8f6-2859-4a6d-857e-34478ae5ff5f","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"30d490b9-f46a-4285-bf65-3e4953dd45b6","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":195,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"975be56f-9761-4ce4-8a97-0902db8ed2e3","block_type":"box","text":"practices of the company, including the periodic review of board performance; responsibility for succession","page_number":195,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"11eaca2c-c973-4ddc-9642-9c50ec4c05be","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":195,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"00019a5c-16aa-467b-831c-2417fb3c0bb3","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":195,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"d9b03ba1-bb3f-439d-9ba8-11543f5d05aa","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"e2623c6e-03e8-4009-abd3-1c0917a5e31c","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":195,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"79b08f0b-af12-463a-84ee-400cab7f04e5","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":195,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"9493d7c1-2629-4ab3-9798-8a14f275e084","block_type":"box","text":"firm-wide compensation policies.","page_number":195,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"0896e5c4-c296-4cc6-9a98-e0feeb8476f0","block_type":"box","text":"We may vote against the election of the chair of the committee or other directors serving as committee members","page_number":195,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"f1569fb6-2a63-4e62-b1e7-7d6668827e6c","block_type":"box","text":"to convey concerns about how a committee has undertaken its responsibilities. We may vote against the election of","page_number":195,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"f1dcdd2a-57d2-42b4-b69f-83eabcfacc59","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":195,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"4cdfafd2-4d3b-457a-8b44-e66ea378bd59","block_type":"box","text":"Board and director evaluation","page_number":195,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"3748fd28-8e3b-4ab6-b3a3-08740b55efe6","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the board, the","page_number":195,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"21cd9509-ae4e-4860-bd5a-698126aff0ba","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be undertaken by an independent third","page_number":195,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"35ce1185-aa96-424a-928a-084499ce5cb0","block_type":"box","text":"party able to bring objective perspectives to the board on governance and performance. We encourage companies to","page_number":195,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"dd2ada08-d473-435a-8ab2-bd2a8a6d60a9","block_type":"box","text":"disclose their approach to and the objectives of evaluations, including any changes made to the board’s approach as","page_number":195,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"8330e98c-56c5-40ae-9401-bff345d1ac7b","block_type":"box","text":"a result.","page_number":195,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"de6cc550-a1cc-4204-817c-14ff00729ac4","block_type":"box","text":"Access to independent advice","page_number":195,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"5cbc2c99-0012-458e-b51a-8efc4741f64d","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":195,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"9528f71b-e820-4510-8f1d-9a1467d81924","block_type":"box","text":"access to independent advice. In certain circumstances, it may be helpful to boards to retain independent third","page_number":195,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"82db8322-3820-4a88-86cd-4660fb938ae2","block_type":"box","text":"parties to advise on critical matters. These might include new industry developments such as emergent and","page_number":195,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"ffdb8716-ea25-4466-8311-a3fcdae69b95","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":195,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"50bd3ca8-c328-4689-ba27-5e97117f5fd6","block_type":"box","text":"performance, or significant transactions. Board committees may similarly retain third parties to advise them on","page_number":195,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"2fcc178b-d193-465e-830a-dde8c5736dcc","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":195,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"fa26bb35-97bc-4fcf-b004-778a42d1f909","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":195,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"6d70d007-a40b-4a57-b5b0-928d8fee223c","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to recruit,","page_number":195,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"738448dd-9842-4e2c-85be-2e3f5e12dd18","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":195,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"9fb9b8d0-3c44-472d-9176-1d035fae0247","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":195,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"e0c90c45-8e5b-4d7f-a639-59d73976d3a2","block_type":"box","text":"performance.","page_number":195,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"19fd79dd-015c-4230-b130-3254f1425e16","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":195,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"b89ae24e-b307-4be8-8053-1f7a0ba19eea","block_type":"box","text":"performance against short-term metrics, incentives – most often share-based that reward performance against long","page_number":195,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"395c9c58-e004-4af1-b55f-24735365fdc7","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":195,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"edba596e-c6d0-4867-bf83-671b4297c054","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":195,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"aa60d446-8572-4035-8192-2411b82f9f0f","block_type":"box","text":"to be tailored to the company, its sector and long-term strategy, as well as the individuals the board is seeking to","page_number":195,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"8cec1d24-8aec-4d29-b025-e219677ef015","block_type":"box","text":"recruit and motivate.","page_number":195,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"b4709cc9-2601-4bf6-b315-c065db7332a9","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a company’s","page_number":195,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"0266ee3f-e9d7-4a3c-8338-59d408ec0a55","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":195,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"6e9a55cb-e70c-4ef7-97be-d92c65e5a96b","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":195,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"7d49c7f1-9f6a-43fc-9f99-cead464739ed","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":195,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"4fb2d448-2f9b-46be-9ed9-cf47cd154e3f","block_type":"box","text":"arrangements include:","page_number":195,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"dc28e9ae-8e06-4af9-89f4-e7d329e9f677","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"55599a84-dfac-4b35-b8b9-c199374ad96a","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":195,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"00eb51ee-24f3-4f4c-97c7-a8a9f2257852","block_type":"box","text":"the company’s size, sector and market.","page_number":195,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"e9f81211-637c-4ca6-a6ac-4c34d9013d97","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"0fe45e8d-dbfa-4d4b-b298-1ecd97bb70f0","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":195,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"b6d726b6-7863-45f6-a5e6-6f9e657a3f32","block_type":"box","text":"NM1026U-5993100-195/236","page_number":195,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e99a2acb-98ef-42a3-a29b-2f5cc5c2fdb5","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"f751ebf3-9247-4e71-b630-015f21bc1545","block_type":"box","text":"Variable pay subject to performance metrics that are closely linked to the company’s short- and long-term","page_number":196,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"8b3138ed-dbbc-456e-9399-7c5e65c4c85a","block_type":"box","text":"strategic objectives.","page_number":196,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"ee33410b-fd43-4eb5-9a7f-e168c127034d","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"962a3994-e326-4fd3-8ba1-7e3643fc5559","block_type":"box","text":"Long-term incentives that motivate sustained performance across a multi-year period.","page_number":196,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"9849b9c2-ec3f-403e-bd34-d668a80b46eb","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"d1990d9e-4db2-4241-9ae4-62778e2fe55d","block_type":"box","text":"A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and","page_number":196,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"52792f27-5ef2-4de7-8364-3c546efe3cff","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":196,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"2edf458a-bda7-4c64-be21-a19d0c496d69","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"12c9d864-fbe4-4f27-99ef-d459eb907e54","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":196,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"028be2e8-035a-4372-b6ec-7018c49b56f7","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"93087f0d-3b6e-4401-933b-0c79de470e21","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":196,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"a7f0b1c2-19d7-48a2-8e32-10a257f19809","block_type":"box","text":"transparently.","page_number":196,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"49469782-7aa2-4a2d-a2e8-564ac0815382","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"c204a261-c20b-43e6-9a49-d5cfcc0c75be","block_type":"box","text":"A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":196,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"eead5de8-6a95-4827-a097-9becc3b69313","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":196,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"0a2f9c3e-6afc-45bb-8da0-7f05a0c870bf","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"99a3d471-6be4-4ea7-8776-5c9e1b4dea7a","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":196,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"dcaba38a-d3b1-4ad5-a479-e129dc871314","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"78bd0df0-d548-4935-a0e1-0b866ad56152","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":196,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"a2e2b852-d020-4289-8919-827592c84614","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial reports, or executive","page_number":196,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"ca1582fd-a911-4d0d-9fb2-7536c9835aed","block_type":"box","text":"misconduct.","page_number":196,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"b5c4dbeb-d2de-4bee-be0f-f0acbb8b8c4c","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"a05824e9-bd29-4707-9141-cd2dd4d06ef9","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":196,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"c6796f7f-7bc4-444c-9139-59a2f0ccfe36","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":196,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"dc7f6d54-1cf2-4894-a422-e7fb7d005317","block_type":"box","text":"approve the compensation report where we do not see alignment between executive compensation arrangements","page_number":196,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"db19a3ad-9338-4a68-a39f-8388729fc4bc","block_type":"box","text":"and our clients’ financial interests. When there is not an alternative, or where there have been multi-year issues with","page_number":196,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"ce5eb224-1f9b-4ebd-a5e6-2e8556b13860","block_type":"box","text":"compensation misaligned with performance, we may vote against the election of the chair of the responsible","page_number":196,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"14e58213-4421-41fb-90bc-0205d185b1f3","block_type":"box","text":"committee, or the most senior independent director.","page_number":196,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"0a9927ce-c288-4652-8f38-740d96947d27","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":196,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"c59a63fa-9ce6-4278-8d67-ce9bada419c0","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":196,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"091de13f-1bbd-45e4-bf2e-c84ce63eaf94","block_type":"box","text":"the two. Some companies also pay additional fees for service on board committees or in board leadership roles. We","page_number":196,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"a8ba5dac-d595-40ad-b47f-0b0bfbca1962","block_type":"box","text":"do not support non-executive directors participating in performance-based incentive plans as doing so may create a","page_number":196,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"33c7099e-7eec-4c78-8806-fb09f5e18f5c","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":196,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"634c0cdf-b778-446f-9220-b8202d19ec4c","block_type":"box","text":"CAPITAL STRUCTURE","page_number":196,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"2d8d3c3b-5c92-43f9-af90-e0bfcd388beb","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":196,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"27f55a6c-3136-471e-a433-8c2033a73a5e","block_type":"box","text":"appropriate capital allocation in support of long-term financial resilience.","page_number":196,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"a9249292-048c-491b-866c-20cd9f162a03","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":196,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"95ccc0b3-919a-496e-b1ac-0fa49d74afa6","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":196,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"cb595699-e998-4b58-8231-19d09fc0b834","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":196,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"174c9738-a8dc-4c37-a6cd-072d2c645726","block_type":"box","text":"company’s approach. We may also support a shareholder proposal seeking conversion of shares with differentiated","page_number":196,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"d34fdced-71cc-4656-a387-2a3aa4b5cc23","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":196,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"bd1fe980-1119-4728-8dd1-c5042395638f","block_type":"box","text":"Share issuance","page_number":196,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"aca6597e-eb53-49c5-b51c-5b53c1d6ca15","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will generally","page_number":196,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"2c9cf369-baa5-4dcf-8b1a-61d02fb0c6d3","block_type":"box","text":"support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":196,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"9f753005-f944-432f-9a12-fd089a848f4f","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":196,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"77b3373b-79b8-48f0-bea4-e367c8a0bfbf","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":196,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"759abf0d-f707-453f-945c-ea6da68d048e","block_type":"box","text":"market environment.","page_number":196,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"923edf1a-913b-4d7a-a620-47252c518e80","block_type":"box","text":"Share buybacks","page_number":196,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"af693f32-2619-44ca-a5b3-2154640386f9","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":196,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"9063bc75-6a53-4206-8f72-2217cd66c04a","block_type":"box","text":"management’s determination of the appropriate balance between investment that supports the long-term growth of","page_number":196,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"6ebabe75-97c9-44e9-82c9-7cb1cf64f7ea","block_type":"box","text":"the company and returning cash to investors. We also take into consideration the effect of a buyback program on the","page_number":196,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"88cc5d6b-9dfd-4a8b-8add-a0cbf50200f0","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":196,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"95f76c28-6b77-49d0-a49d-3928c670845c","block_type":"box","text":"relative to market price. We consider it good practice for companies to seek regular approval of these authorities to","page_number":196,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"33c740d7-0687-47d4-b8d2-6906bc86ba8f","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":196,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"3055bb59-2e1f-442d-a315-88467529086e","block_type":"box","text":"of the company and the market environment.","page_number":196,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"34cfd180-28b7-407b-acec-3a94d6070e76","block_type":"box","text":"Dividends","page_number":196,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"fec7ea6e-e523-4dfe-8231-aab09bd79214","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further clarification","page_number":196,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"da77c976-532a-4ff0-a128-c8ab5770d350","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":196,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"f5d2a9e4-bb47-4c4e-a844-75e479448572","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"1e48e7ab-fc5b-4139-9f6d-ecaee1bf936e","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":196,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"eb0988e4-a956-44eb-a0b7-432af5f0f9c3","block_type":"box","text":"NM1026U-5993100-196/236","page_number":196,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"506585a0-8abc-4e56-b9ae-677e85375cda","block_type":"box","text":"Differentiated voting rights","page_number":197,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"58167f0d-2217-4afa-acb2-9a6b7e16662c","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":197,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"ddcbf023-bb97-47b4-a7d4-95be65fc837b","block_type":"box","text":"exposure. Certain companies, particularly those new to public markets, could make the case to adopt a","page_number":197,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"83cacf6a-a9e4-458e-8606-8e4e0b54ca78","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":197,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"580c8fd0-456a-419a-b15f-ddebef0400d2","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":197,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"3535a184-5c8f-4353-beb8-5e1cd10091e0","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":197,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"4fb19894-9ec2-43cb-b998-ee92360868f7","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own detailed","page_number":197,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"719dd2eb-161e-4df0-9312-01eadbd26be1","block_type":"box","text":"analyses of proposals.","page_number":197,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"5373bddd-8407-4e37-8b97-91c56079462f","block_type":"box","text":"Mergers and acquisitions","page_number":197,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"0871885a-2370-41ab-afa6-490ab7731ffb","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":197,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"257c0fa5-af12-4c9a-8986-5000f0f99e77","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":197,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"6908a157-573d-4f50-a5ff-f4767ef7df48","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":197,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"4055a0ee-b22c-4c69-9ae2-5beaa1110f1f","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":197,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"140daa65-c5c8-4113-b68a-283f8e7417ab","block_type":"box","text":"an ad hoc transaction committee to undertake an independent assessment of a significant merger or acquisition, in","page_number":197,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"868e6d7e-b10b-42f0-b99c-36514aa29085","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":197,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"222e6eb3-2efc-4e34-ac0f-a4e1aa11f474","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":197,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"fb96da05-26ce-4f6f-806e-c01808436d9c","block_type":"box","text":"Anti-takeover defenses","page_number":197,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"c24ec85e-1ea3-44a2-9eda-8908f11ff636","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":197,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"2233a7a3-ff47-4076-8f5c-14b4400189e1","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":197,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"b134f224-1f7f-4179-be3c-efcaf63d86eb","block_type":"box","text":"shareholder value. By exception, a poison pill may be supported if its purpose is to delay a takeover that is","page_number":197,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"b85b0230-519f-4383-b28f-725e99912021","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":197,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"7a3cd64c-e8c8-462a-a67f-7a26a8961c4d","block_type":"box","text":"case to use a poison pill to block a shareholder activism campaign that may be counter to the interests of other","page_number":197,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"acf852a8-3986-44af-909e-792e54f5b28e","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":197,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"042e4e65-695d-47be-9c5f-5d619704510a","block_type":"box","text":"be closely monitored by the independent members of the board. We consider it good practice for companies to put to","page_number":197,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"ffb4c884-d834-49a1-812c-6ed093fa5f9a","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":197,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"289f05c2-cc7f-4850-a306-429a8784cca0","block_type":"box","text":"Shareholder activism","page_number":197,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"3bb01efd-cdd0-49b6-9ad6-9f7bf18febea","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":197,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"137bf61b-8e2d-480b-ad30-d28622fcc1e7","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":197,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"791f62af-285f-4be1-b69b-7c1f100f7e8d","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":197,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"ba2ad7ae-fc93-4994-9704-dff901be7b50","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":197,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"c92251ab-bcd8-4b74-95f8-12e3429e2a93","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each party’s candidates. We evaluate","page_number":197,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"b3f4a516-7f74-4110-afb2-3ff15e591c1b","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":197,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"bab88a73-409e-41a9-b6ed-d474e6ffffbe","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":197,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"936b24b0-ca54-4e3a-a37c-5077b1c1f527","block_type":"box","text":"the relevant portfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":197,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"45ff1abc-8101-46c1-901b-aa5a645247d4","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and expertise or have a poor track record of","page_number":197,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"d9d8431e-7428-4d5b-be2e-7c46cf90f2e1","block_type":"box","text":"protecting shareholders’ interests.","page_number":197,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"6aebb42a-62b9-4ddf-b13a-8d3fbd7df654","block_type":"box","text":"Significant shareholders and related party transactions","page_number":197,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"aef18f43-af28-4816-8de1-bc2537cf5da3","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":197,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"0c457d58-14e8-4b29-9495-4c7e89ab073e","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":197,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"09e02ed6-9aa9-4d17-beab-3879b5184609","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or companies","page_number":197,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"918b394c-d4af-4a5c-980a-1d9952db4351","block_type":"box","text":"affiliated with the public company, to be disclosed in detail and conducted on terms similar to what would objectively","page_number":197,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"8080adc4-1447-461e-a0d3-ec86b99c375d","block_type":"box","text":"have been agreed with a non-related party. In our view, such transactions should be reviewed and approved by the","page_number":197,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"3e6e597e-1f75-46ae-b34e-d122cf35a8cd","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":197,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"c7b84968-9a3e-439c-96cb-f285186e0571","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":197,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"27ba260c-07ea-42b6-ae3a-45f086d71f49","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":197,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"cc4c0b77-767c-459f-93c0-2406c6255210","block_type":"box","text":"implementation and financial performance, as well as to assess the quality of management and operations and","page_number":197,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"a4cae254-b377-413a-841f-5ac147c249df","block_type":"box","text":"potential for the company to create shareholder value over time. We consider it good practice for the board to","page_number":197,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"2f28a4a9-a703-4d7c-9668-64ffbbc3c0bd","block_type":"box","text":"oversee corporate reporting and the policies and procedures underpinning the internal audit function and external","page_number":197,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"598742be-cca9-4512-b9ae-c7ea91d62b52","block_type":"box","text":"audit.","page_number":197,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"0a4d55fa-b0b0-407f-9ff9-e926579c82d6","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other stakeholders,","page_number":197,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"ed52c7b6-0e74-4b73-ad6b-41862b6641f8","block_type":"box","text":"on its financial performance and position. It should provide an accurate and balanced assessment of the risks and","page_number":197,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"27e3cf94-c044-462e-af15-1e17f1f54ae5","block_type":"box","text":"opportunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":197,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"ee1fc235-0fc4-4965-b00c-86121ace3c8e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"69fb996e-4c28-4371-a425-88efabc9cfa7","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":197,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"75894b6a-323c-429f-a0be-af7a07de8b3e","block_type":"box","text":"NM1026U-5993100-197/236","page_number":197,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"14de6902-38af-4438-b429-f0ac3fe4ebe9","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":198,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"876755fd-cd8c-42bd-aef3-ab2debe9eb27","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed reporting standards and any","page_number":198,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"808c3735-7d79-4a3c-b663-ca1d24f1d6bf","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":198,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"c081f0f4-2ec0-43f8-bef6-177baff35eee","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":198,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"5e802617-875d-41fb-b28f-705ec417d1be","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":198,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"e79bb8dc-9a73-41d9-bc42-c2470ec63198","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":198,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"b271dc89-2a65-490d-96b2-2d48bb0786a3","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":198,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"456b8485-d045-4217-942c-92a84ae99f4f","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":198,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"15f33788-475b-4669-8bc9-517443ebc838","block_type":"box","text":"important level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":198,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"a6d4dd69-6f18-41a8-bc58-76cba6b5fe94","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":198,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"b61ffd5c-cb50-4dfc-a0b1-c70d08a2bfa8","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":198,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"67ba4db1-b7b3-4852-9a1a-ed3c88c02aa4","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":198,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"cbb6589c-dde4-47fe-bf43-72136748f541","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and opportunities. The International","page_number":198,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"5c2f1eff-266a-4a79-9a82-4364247d3cd6","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its reporting standards,","page_number":198,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"701987d9-b43b-46d3-88ba-8da6908abe93","block_type":"box","text":"which may be helpful to companies in preparing such reports.","page_number":198,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"9360527a-a648-4cae-9c06-c94e7660cda2","block_type":"box","text":"9","page_number":198,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"f732af2e-2cf4-4e59-952a-a5c27900c074","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":198,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"1bfd136c-f50d-408e-a4fe-e78c8fa7b4eb","block_type":"box","text":"framework, and note that companies in certain jurisdictions are subject to mandatory reporting requirements under","page_number":198,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"004a246b-7fec-4dc0-80a0-45e2ee15acd2","block_type":"box","text":"standards specified by policy makers.","page_number":198,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"1e5ad7ad-5eb7-4770-ad26-dbd6d00a20c8","block_type":"box","text":"10","page_number":198,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"506e14da-93b4-4746-bee1-3ac743c91b21","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":198,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"ed0a64dd-bf5b-459f-977d-301977c6ee69","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":198,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"48fcdc52-121e-4207-ad78-625d97210235","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":198,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"e6cfb38f-21d8-4368-b4cb-4125232638e1","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":198,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"699c56e8-fe85-4cfb-8fed-dbfa23bae4e5","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":198,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"04fc2556-e504-4c59-958f-ed2ac7002749","block_type":"box","text":"of corporate reporting. It is helpful when the audit report gives some insight into the scope and focus of the audit, as","page_number":198,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"506ab7d7-c666-4888-8214-4c43f6defbae","block_type":"box","text":"well as any critical audit matters identified and how these were resolved. A comprehensive and effective audit is time","page_number":198,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"bbcb7c47-1083-4c92-a010-8144f82e85bd","block_type":"box","text":"and resource intensive, and the audit fee should be commensurate. Fees paid to the audit firm for non-audit","page_number":198,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"d3efa51c-29e4-4536-96b8-edb094ba4e3b","block_type":"box","text":"consulting should not exceed the audit fee to a degree that may prompt concerns about the independence of the","page_number":198,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"53f29efb-4dcf-44c8-a8b6-4276758f06e7","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":198,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"a8c5f1e5-8171-41f2-a11b-8eaebc9e935b","block_type":"box","text":"remained independent.","page_number":198,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"0fdf3dec-5d2a-48d0-ba19-c62db962b51d","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or there are","page_number":198,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"bff8518c-a82f-4bff-b05c-b39e3a917f43","block_type":"box","text":"material misstatements in financial reports. In markets where relevant, we may vote against a proposal to approve","page_number":198,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"5c49582e-c814-4e59-888f-c052dbf0255c","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":198,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"43041803-a86d-4dc1-b2ae-835f83720323","block_type":"box","text":"reporting or the audit. We may vote against proposals to appoint the auditor, ratify the audit report, or approve the","page_number":198,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"f556cad2-0caf-48a2-a145-24d1e04d0773","block_type":"box","text":"audit fee if we are concerned about the auditor’s independence, the quality of the audit, or there are material","page_number":198,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"bac253ae-8fb2-47b9-9f1f-9afaa26e910c","block_type":"box","text":"misstatements in financial reports and the board has not established reasonable remediation plans.","page_number":198,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"1a4001ea-94d3-47d1-bc6e-7b4e6e121c5e","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":198,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"a320f7f1-62ab-4dc7-ae4e-46960dd4fb9e","block_type":"box","text":"General shareholder meetings","page_number":198,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"77f23ab8-9735-48fa-9e52-7ccc60f0bf2b","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":198,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"a550c420-ebb1-49c0-8f9f-7940361d4b0e","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":198,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"58c362ec-d226-42a1-a0fa-1c7eb099063f","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":198,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"b814e24f-4a3d-4679-9618-b0a2554c5209","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of participating in the","page_number":198,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"5ee97b51-c485-4a63-a662-e64a499ec55b","block_type":"box","text":"meeting virtually which, whilst welcome, should not limit the rights of shareholders to participate as they would during","page_number":198,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"3f0e1f77-076c-494b-a503-ae901db3874d","block_type":"box","text":"an in-person meeting.","page_number":198,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"951f9fb6-5c28-4363-81bd-72e958cd2e9a","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":198,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"480e6e49-8126-42ca-a0ea-d41b15af8511","block_type":"box","text":"provided in a timely manner or do not provide sufficient information for us to make an informed voting decision. We","page_number":198,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"50928349-8ef7-4e6b-a6e5-73f62ccd3628","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":198,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"1b2edb96-ca96-41b8-9810-09fd3136f0eb","block_type":"box","text":"participation.","page_number":198,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"b54e0d85-c3ea-445a-a39f-a9d565b814d8","block_type":"box","text":"9","page_number":198,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"f674213f-5137-475c-8af6-2501bbb6f4d5","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":198,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"68cb22af-5c14-4912-ae9c-2d4b8debe6b3","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":198,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"5ac31a21-1528-40b6-8f42-c5714e768373","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":198,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"9ac716d0-0ef4-4060-a83f-b78a5e051a65","block_type":"box","text":"Disclosures.”","page_number":198,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"cc6946eb-0b26-4c67-a59b-39a39451c849","block_type":"box","text":"10","page_number":198,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"2defe133-dff5-49de-aa7c-954e55ea9bd8","block_type":"box","text":"See, for examples, https://www.ifrs.org/news-and-events/news/2025/06/ifrs-foundation-publishes-jurisdictional- profiles\r\nissbstandards/ and https//financeeceropae/capitalmarketsnionandfinancialmarkets/compan","page_number":198,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"0834b1a8-12fa-46d0-99ef-055b448bd1ac","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyreporting\r\nandaditing/companreporting/corporatesstainabilitreportingen","page_number":198,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"28a83281-697d-499f-a697-4b2fda4acd99","block_type":"box","text":"p/ p//p/p\r\nreporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.","page_number":198,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"0b6f7228-017e-408d-8a87-133ce0ed7624","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"6b9cf635-a6f6-4f28-bab8-7aadac1fb07f","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":198,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"32bddfeb-05ec-4e38-b1e4-0c8e06e4560b","block_type":"box","text":"NM1026U-5993100-198/236","page_number":198,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4b708244-100c-4a62-9094-ce77020e0f63","block_type":"box","text":"Bylaw amendments","page_number":199,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"b8b5f5ad-13e7-43af-bce5-f6ec49d75b9f","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally support","page_number":199,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"9738b272-3505-4bdc-b8c2-b41bfc539269","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":199,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"9e4391f2-9768-47f5-8889-72a9224a2af5","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":199,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"3e31e179-110e-4b54-95cf-ab6dabfd3ca5","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":199,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"d931f136-f3f1-4b9e-977f-e8746d8bc997","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":199,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"9c52fd5c-91b2-46cd-93a9-55f940c9f531","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":199,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"7c047321-6f81-425f-ae9b-93f49d798e29","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":199,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"76017f99-64c2-4eba-8ce5-9140241c11cc","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":199,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"6698e27b-5fe8-4fd9-a91c-f23b044dede7","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":199,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"b34017a0-bb49-4d31-8126-de5dd07a9208","block_type":"box","text":"group, with a meaningful shareholding, the right to nominate directors to the company’s board. The threshold for this","page_number":199,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"874d17c4-f0b5-446b-85b5-1b1bdf6b8ac7","block_type":"box","text":"right should be set so that shareholders can exercise it without being unduly disruptive to the board’s own","page_number":199,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"22b47e22-44a1-45fa-89c2-c78ea5ce0893","block_type":"box","text":"nomination process.","page_number":199,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"60a138da-e5a7-42f7-ac3a-3e9f4774347c","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability mechanisms.","page_number":199,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"da6f10d0-b434-4cd0-9344-ce92ccfc98e2","block_type":"box","text":"We may vote for a shareholder proposal seeking the addition of either of these provisions to a company’s bylaws.","page_number":199,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"2c6c2dfa-7a74-4699-bdfa-193e0b1f7394","block_type":"box","text":"Change of domicile","page_number":199,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"b2675913-d60a-4143-bae7-6404e5acb1d3","block_type":"box","text":"We generally defer to management on proposals to change a company’s domicile as long as the rationale for","page_number":199,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"1993f548-8efc-422a-8a54-12934fb6a207","block_type":"box","text":"doing so is consistent with the company’s long-term strategy and business model and the related costs are","page_number":199,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"60cf314f-0705-4e0f-aa1e-1f8ee408804e","block_type":"box","text":"immaterial.","page_number":199,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"1a989304-774d-407b-a3a1-bb61f4d60623","block_type":"box","text":"We may vote against directors or a proposal to change a company’s domicile where it does not seem aligned","page_number":199,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"297d7480-c664-4f65-9074-8e5933f0111b","block_type":"box","text":"with our clients’ financial interests.","page_number":199,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"7e9770c2-7860-4075-9616-eff090bd0009","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":199,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"e40b6ae6-8b03-4bef-aa88-b560b0eaa423","block_type":"box","text":"Plans to materially change the nature of a company’s business or its purpose should be disclosed and explained","page_number":199,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"9b3594e5-2978-47b9-86d4-cd7990cb76fe","block_type":"box","text":"in the context of long-term strategy and business dynamics. Such changes may significantly alter an investor’s views","page_number":199,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"a7f20120-714f-44dc-8f47-1da5df6b5c3c","block_type":"box","text":"on the suitability of a company for their investment strategy or portfolio.","page_number":199,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"55b27bc2-bece-4b07-b45d-dc533088c08e","block_type":"box","text":"Where relevant, we may vote against proposals to change a company’s purpose or the nature of its business if","page_number":199,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"bddd9519-a018-42a0-8048-0eced4bd029e","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":199,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"df1e1d96-ca50-43f4-9e9e-e591ec2aefa9","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":199,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"598728f6-880d-41c5-97d2-c121d2f8f6b3","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals to the","page_number":199,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"91162d5f-3acb-4025-b5bd-630e66298205","block_type":"box","text":"general shareholder meeting asking a company to take a particular course of action subject to the proposal being","page_number":199,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"b9c02bd5-47f4-4801-9ad9-cdf7eaf07090","block_type":"box","text":"supported by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":199,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"1bfdf588-8d6d-4fc7-aa81-c940f038fe20","block_type":"box","text":"relevant to a company’s business.","page_number":199,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"b35d5ce5-9409-44d1-94f1-8ffec5beeadd","block_type":"box","text":"We vote on these proposals on a case-by-case basis. We assess the relevance of the topic raised to a","page_number":199,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"ddd229f2-4606-42f2-a476-cd592aeb84e8","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":199,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"adb240dd-71ec-4cb6-a71a-309bf7c3926f","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial performance.","page_number":199,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"f0d4e4ed-9e1a-4aa2-9ce3-78fdc8430882","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or performance is to","page_number":199,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"385829b2-3fcf-4505-9e49-e661bbc55dc4","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":199,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"2a11dd9d-be06-4833-a618-e17a8eae33bd","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may support a relevant","page_number":199,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"dbb2a0a2-7872-4701-905d-8798cb94ee39","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not support","page_number":199,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"d375e629-b67d-4004-a600-d88bfb309e84","block_type":"box","text":"shareholder proposals that are legally binding on the company, seek to alter a company’s strategy or direct its","page_number":199,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"02e2c015-16a1-4096-81c5-03dc92500bb7","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":199,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"548d1a32-a735-4fb4-8121-a706cf79f51d","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":199,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"60245207-4b87-4f61-8b38-c3c1378f023f","block_type":"box","text":"and limitations on how we can interact with the companies in which we invest on behalf of our clients, including our","page_number":199,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"1ebbe394-6407-4395-b355-f9fea6fa98d8","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":199,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"6f38a002-0d30-4886-b57f-92726676771c","block_type":"box","text":"who authorize us to do so, on proposals put forth by others.","page_number":199,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"bd171dce-5b4f-4167-9b50-b39c3d4f7609","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":199,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"75c56869-28df-47e9-822c-c59595374fab","block_type":"box","text":"A corporation’s ability to engage in the policy process is subject to rules and regulations set by the jurisdictions","page_number":199,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"08dfdd40-cf77-4605-bc7c-8a4e26f078b3","block_type":"box","text":"in which they engage. When a corporation reports material financial risk related to policy and or regulatory changes,","page_number":199,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"462a3ab9-b499-46d1-a765-ac419ea52eaa","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":199,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"1ba84b8b-29fc-401b-8c5f-ab689e8e0492","block_type":"box","text":"companies engage in corporate political activities and ensure that their participation is consistent with their public","page_number":199,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"57189bd7-8102-451c-a3cd-65fb9d554c61","block_type":"box","text":"statements on policy matters material to the company’s long-term strategy. The board should be aware of the","page_number":199,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"48090606-ac92-49d8-8b88-52164ec4d110","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":199,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"2a0888ac-917b-48d0-bab0-93d6baf352f5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"0a1994f7-3420-4a1f-b08a-b0f07c1bc160","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":199,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"8d755586-2878-4b8b-a363-c9442e6045c9","block_type":"box","text":"NM1026U-5993100-199/236","page_number":199,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6815f6bd-5622-48c8-bdd7-6def6b1cc6ec","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":200,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"a7408a67-ba3c-4ad2-893f-17493fa38ef1","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":200,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"f09da587-e27f-4c89-88e5-c1ff2a77dcdc","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":200,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"1b1abfb9-df21-4385-99b9-90a561b688a1","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":200,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"64678e75-aad0-47d4-8d1f-8e857c1dd4e7","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":200,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"413cb7a2-8eb1-44c6-82e8-986c753ee64a","block_type":"box","text":"undertaken by trade associations on behalf of members.","page_number":200,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"040f5e94-01c7-4ec6-99bb-b6acd8819275","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":200,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"7b964ccf-ebbc-44c6-aac1-1a0aa74e00f0","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":200,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"750e8a6e-3243-4fd5-98a6-313cd4866502","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"32f24bbb-91a5-4390-b25d-719ee42b77bd","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":200,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"a33971ab-c230-4e36-b20f-34e68b42261f","block_type":"box","text":"NM1026U-5993100-200/236","page_number":200,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5896aeae-bc1f-41b0-9a0d-b801adfd2b9f","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":201,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"e36c0859-afd5-4163-851a-0a8375727820","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their business","page_number":201,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"430f3c7e-79cd-4685-ac8b-908aca8f2e96","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":201,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"0e7f3c85-c6dc-4afc-b45c-cbd89ac05117","block_type":"box","text":"11","page_number":201,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"f6cedd9e-3290-470e-b555-93b7fb41b85f","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":201,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"5f5da617-c52d-42ec-bb38-f33bdbb40e6c","block_type":"box","text":"its financial performance, are generally operational considerations embedded into day-to-day management systems.","page_number":201,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"16916421-961f-41a2-b6af-2226a9f127a5","block_type":"box","text":"Certain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":201,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"63f6d6d7-722b-4e00-9192-77d1eb3504c3","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":201,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"7593fc04-92bd-40da-bed6-b14a9cf4880c","block_type":"box","text":"regulatory requirements.","page_number":201,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"0ecd0790-e1ce-49a7-b87c-fb78c4ce5d7d","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":201,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"a076287f-093a-4b8b-951c-450b13ddba18","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":201,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"8948c854-57ba-4678-a284-a050e162e002","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":201,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"d4f5ccdb-5ab3-47a8-a458-2d8412b2083a","block_type":"box","text":"integrating material sustainability-related risks and opportunities into their business decision-making and practices.","page_number":201,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"c6dfba92-2ca5-4025-95c9-2acdae193c91","block_type":"box","text":"Doing so helps us undertake a more holistic assessment of a company’s potential financial performance and the","page_number":201,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"05a82a03-3390-4ead-911d-682fe38d5278","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":201,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"db208ce1-7298-4f85-afcc-e243ab4d5867","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about how a","page_number":201,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"e5cfc973-4344-4c5d-aba6-dcbeb0e1dc9b","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":201,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"c3297c40-b5b9-4b95-ac26-a618a0abc694","block_type":"box","text":"returns.","page_number":201,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"42daeff7-e604-436f-b716-f4471b316def","block_type":"box","text":"KEY STAKEHOLDERS","page_number":201,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"e51a633d-eec1-4412-afaa-5017af34ac43","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various parties on","page_number":201,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"5c2efe32-dddc-4da8-bce2-6e54df560b24","block_type":"box","text":"whom they depend for their success over time. It is for each company to determine their key stakeholders based on","page_number":201,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"6ca37522-4151-47c6-9b4e-f3c562cb3de6","block_type":"box","text":"what is material to their business and long-term financial performance. For many companies, key stakeholders","page_number":201,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"4337f78b-0e4e-4830-91d7-2d0e4502f732","block_type":"box","text":"include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":201,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"f1b04970-ad15-44c7-98d4-24af162b6934","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":201,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"8b857762-24c6-4995-9cb8-b48217f54458","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":201,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"7a790d74-2c62-4d98-ac9b-f46aa25deee1","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":201,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"f652db91-0740-4d7b-91f5-68049340dca8","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":201,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"25832296-123d-4e43-a603-8b9976253b1d","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":201,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"3db9702a-0f4c-4e02-87ab-0768f818f6a1","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":201,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"ea58f83c-9c9b-4911-83e0-142ec4da67ce","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":201,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"07c9912f-f258-4a90-bacc-a08f53d37676","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":201,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"c37ae49d-b152-4f63-9c59-4616f31d13e9","block_type":"box","text":"i.e.","page_number":201,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"ec56fe8b-4d9f-45ac-809e-49ac46ca12b7","block_type":"box","text":", one in which global","page_number":201,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"4b73b77d-e20e-4d56-963d-0bd1f60a56e8","block_type":"box","text":"temperature rise is limited to 1.5°C above pre-industrial levels. In addition, clients in separately managed accounts","page_number":201,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"34991bd1-345e-4735-87b3-26970d8eb1bb","block_type":"box","text":"may instruct BlackRock to apply these guidelines to their holdings. Both in the case of funds and separately managed","page_number":201,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"46b6f8e9-eaec-4eff-a3c8-a62c678e2679","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":201,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"7e12319d-2230-4df0-9e6d-69482bb97f61","block_type":"box","text":"client.","page_number":201,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"ce9abc13-45bb-4c93-a446-cef1b871742a","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":201,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"8afa9e52-13d9-4417-b7b0-16a243eac1ca","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":201,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"1e9f81af-8e13-425a-a6b1-2b1360203a67","block_type":"box","text":"the low carbon transition, based on reported and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":201,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"ac50ccc4-4a61-41a2-8ac7-8c53c05f0e03","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":201,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"b352bd21-4669-408c-8f70-3b09d37fca85","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":201,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"fec62007-8afb-4e11-9445-1a684c4b96b5","block_type":"box","text":"include an explanation of the decarbonization scenarios a company is using in its near- and long-term planning, as","page_number":201,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"3e9a5a4d-f136-4ade-bd27-7d256c2bd0bd","block_type":"box","text":"well as its scope 1, scope 2 and material scope 3 greenhouse gas (GHG) emissions and reduction targets for scope","page_number":201,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"96329cf6-c797-4dd2-9dd1-1938ade2ae30","block_type":"box","text":"1 and 2 emissions.","page_number":201,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"cffa8f7a-56b2-42d7-a812-7c8381be3f30","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":201,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"8bf1bdc9-2654-4d6b-817f-0feba3d8f721","block_type":"box","text":"support for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":201,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"4631c20b-7b9f-4802-9c2d-3a43b44ea935","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":201,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"c82d1fd7-33d1-4128-9b03-41bd05d68580","block_type":"box","text":"specific guidelines. We may recommend supporting shareholder proposals seeking information relevant to a","page_number":201,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"a1437b3b-ddb9-4490-ac77-54ab3eb185d0","block_type":"box","text":"11","page_number":201,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"943a6898-7096-41cc-b99d-b6f60e773e38","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":201,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"ca127d9a-6326-4310-9167-6a0f5a833dc2","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":201,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"33cce407-53ab-4343-bf9a-c702beb838bb","block_type":"box","text":"issues include, but are not limited to, water use, land use, waste management, and climate risk. Examples of social","page_number":201,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"f34f7297-f53a-4895-87ef-7d9e8fbefd7b","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":201,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"aa8a4d55-d9d2-4663-9d22-87128e88ceea","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":201,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"fa1bfd51-f742-48ed-a274-caa2f2ef151c","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses.","page_number":201,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"afe6671b-7ba0-47aa-8cf0-037f5481bcc5","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":201,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"52c32182-0a2b-4767-abb0-6c30c3f3ece3","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":201,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"b2751ae8-28ef-43ed-a7a1-fb70e710ccaf","block_type":"box","text":"sound governance framework.","page_number":201,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"adaeea4d-ef24-4116-adb7-fd9c8e69ebbe","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"fe246df8-ff7c-4e58-8a9e-ef2fba30e6f2","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":201,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"adba7ad9-f5c9-44e5-8590-c09e914d513b","block_type":"box","text":"NM1026U-5993100-201/236","page_number":201,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6fbd749f-a553-4cbc-8bb1-c83904fd0efd","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":202,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"05c13da0-2280-4a43-8cc2-b6e6270a44fa","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend support for shareholder proposals that","page_number":202,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"fd9d09b1-f0eb-41b4-9407-a1f04e972dce","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":202,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"f5ee9fbd-e9fe-44d6-9202-ede2ed9e7c42","block_type":"box","text":"the BAIS benchmark approach, the active portfolio managers are ultimately responsible for voting consistent with","page_number":202,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"484e655b-b966-4cab-86a6-8f2c81e08e0c","block_type":"box","text":"their investment mandate and fund objectives. For the funds and accounts in scope, voting on matters not related to","page_number":202,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"010f79b5-2748-4767-bdc3-7d5e00c80061","block_type":"box","text":"climate risk and the energy transition is undertaken in line with BAIS’ benchmark guidelines.","page_number":202,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"51ab4898-2af7-4efd-8b67-4b28351b6b8c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"05d11792-ea21-403d-80e1-2ecbd4a99e4b","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":202,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"f33e556d-e5b3-4235-8c95-c6471d916cbb","block_type":"box","text":"NM1026U-5993100-202/236","page_number":202,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a736d1c7-1f59-4ca9-ac14-f121cc08b67c","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":203,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"00b3f780-4f88-4bf9-ac26-a59fdb6c9e7c","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":203,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"90e467bc-cf01-4a29-9bc1-3c668da83c29","block_type":"box","text":"Oversight","page_number":203,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"7b73eb1c-0f3a-4831-8637-7c1b58ec7ab8","block_type":"box","text":"The Global Head of BAIS has primary oversight of and responsibility for the team’s activities, including voting in","page_number":203,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"4f4ce736-6b9c-4e17-9c62-c8a8e27cdbf7","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":203,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"1fa3a181-aeb0-4e7a-8884-a506596c3b9e","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":203,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"da935b6d-f44a-4c26-a115-ec445f532e1f","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":203,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"11f75f3e-f5b6-4e17-be60-52e983be8f60","block_type":"box","text":"in our engagement and voting activities, reporting lines, and oversight.","page_number":203,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"304fd518-a5fa-4d91-a4d5-f3b55241138d","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":203,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"9de7d11d-4d19-402e-bf0f-7f2808d77360","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":203,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"b2ba6214-0776-438b-8c52-9b010aa96b80","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":203,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"2be06bb4-8e02-4af4-86ab-6627078feb08","block_type":"box","text":"to BAIS’ policies and practices. It does not determine voting decisions, which are the responsibility of BAIS and the","page_number":203,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"b8ccb746-4bfe-4e20-bf98-15ebeed628a9","block_type":"box","text":"relevant active equity investors.","page_number":203,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"00db684f-8bc0-4d11-900c-c7081441eb1c","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":203,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"d6206a56-00e6-42ea-a458-7a4e43157da1","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":203,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"cba5f5d3-0667-49d7-891a-ce04a280c754","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and participates in industry discussions to","page_number":203,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"6231c577-5e9d-4280-83c9-b0a8c78afe5e","block_type":"box","text":"contribute to and keep abreast of important developments in the corporate governance field. BAIS may use third","page_number":203,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"63863501-c75d-4b07-b2a1-aaa4747e5600","block_type":"box","text":"parties for certain of the foregoing activities and performs oversight of those third parties (see “Use and oversight of","page_number":203,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"13e6e099-9c65-45b8-b0c5-643b80fcd414","block_type":"box","text":"third-party vote services providers” below).","page_number":203,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"93fed34d-9800-4f9e-b532-4eed8146dd64","block_type":"box","text":"Voting guidelines and vote execution","page_number":203,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"2a412785-8af0-4367-ac30-50c15f002a5a","block_type":"box","text":"BlackRock votes on proxy issues when our clients authorize us to do so. We carefully consider the voting items","page_number":203,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"048bf18a-3642-4632-898f-c873e7ad239b","block_type":"box","text":"submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have voting authority. BlackRock votes","page_number":203,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"f641fea5-56b7-4f86-adf0-f52c6a76b7ff","block_type":"box","text":"(or refrains from voting) for each Fund for which we have voting authority based on our evaluation of the alignment of","page_number":203,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"716cef71-b65e-49e5-bab8-dd94c750fe27","block_type":"box","text":"the voting items with the long-term economic interests of our clients, in the exercise of our independent business","page_number":203,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"fb166344-d756-43c6-9421-6b1358f91a96","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":203,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"3c6c6c01-a846-4188-9142-c52d6a1cf61d","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":203,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"5e75fae4-a654-40a0-8d44-4ce847fcf71e","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":203,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"794841d6-6bf6-402c-b636-ac960958446b","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":203,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"03f49695-3905-40cb-9376-e1584d9cf514","block_type":"box","text":"although portfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":203,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"b21db606-f6a6-40ea-a8fe-01b1e85d56b9","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":203,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"f3aa8ce5-6965-4065-b9c2-f19e4e0ebdc8","block_type":"box","text":"The Guidelines are not intended to be exhaustive. BAIS applies the Guidelines on a case-by-case basis, in the","page_number":203,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"5442e845-57dc-4e6a-bb68-af4211a42a5f","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":203,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"fe4bb2a4-0947-41b7-a4d7-0314807c4b6d","block_type":"box","text":"do not indicate how BAIS will vote in every instance. Rather, they reflect our view about corporate governance issues","page_number":203,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"39c23a10-738f-4f29-b496-ab5c5bb79d81","block_type":"box","text":"generally, and provide insight into how we typically approach issues that are commonly put to a shareholder vote. The","page_number":203,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"0c514747-241c-4a8f-b47f-ca2dbfa6559d","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":203,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"f8fdcbf7-64fd-4f2e-8fa7-22d5b1eb9f05","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":203,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"7e8f5712-e823-4757-a396-c417870ba211","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":203,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"05243f32-30f2-45f0-9e09-a63b18921273","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":203,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"b88fa2b5-5a05-4e84-9ac0-b859ab603186","block_type":"box","text":"well as the desirability of voting such proxies. These issues include, but are not limited to: i) untimely notice of","page_number":203,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"f36868aa-480c-4d8b-96ba-a2ad80e92e10","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":203,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"c9b8b4cf-f570-4920-a746-e6a0e3a77ee4","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":203,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"e5effc2c-9bd8-4ee2-85f7-e8fb6853ed76","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":203,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"f5a42068-6bbf-4fa6-be15-80d4b5a49118","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":203,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"859a0e46-80bf-46cb-9f8a-2a51abc0e889","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":203,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"51a083ed-87a0-4beb-a8d5-5001ea3bcb1c","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":203,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"f93a5a38-c02b-427b-86d5-2a6b69f8e686","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine that it is","page_number":203,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"dd58733a-32b8-497a-b214-83878ed543fb","block_type":"box","text":"generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs","page_number":203,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"e5680691-b686-4ab9-9e48-87d7681a171b","block_type":"box","text":"(including but not limited to opportunity costs associated with share-blocking constraints) associated with exercising","page_number":203,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"22c2276c-7ec9-40da-a70b-c282313bab14","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":203,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"0a101d35-c303-42bb-a8e0-7363c7b5fb23","block_type":"box","text":"Voting Choice","page_number":203,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"58bac721-c3c5-4407-8447-8a596ea80b50","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":203,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"f68f747e-ba69-4e63-96c4-02ac633b97e6","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":203,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"559a5ad7-e2ed-47e5-9e9b-1852749dcebf","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"2afb8cf3-ecc3-4ba5-b431-51644c27b02e","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"554b0233-5d69-42d3-9439-d444be8c5a4b","block_type":"box","text":"NM1026U-5993100-203/236","page_number":203,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fea313a0-aaac-4771-8944-c44f254e2f02","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":204,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"8e42aa30-48cc-4f5a-bbde-c389ab57e1f3","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":204,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"0e98ee16-d524-4c3e-8332-a6763e8ceb04","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":204,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"dba61fd0-f3ab-419c-bf64-37694ccf51a7","block_type":"box","text":"strategies.","page_number":204,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"6cf4bc94-c048-4f42-be31-01afd3dfa589","block_type":"box","text":"12","page_number":204,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"0f538ac9-dd92-46f2-ba08-a28fba673d09","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":204,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"97e7773c-5e46-4461-bd06-61ef475bf150","block_type":"box","text":"on whether our clients have authorized BAIS to vote on their behalf, have authorized BlackRock to vote in accordance","page_number":204,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"439d5d39-720b-4b3a-b246-f943ebcabd83","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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However, in certain instances, BlackRock may determine, in","page_number":205,"box":{"x":69,"y":677,"width":813,"height":11}},{"id":"312452f2-cf35-4321-bfc7-63aee4595ee4","block_type":"box","text":"our independent business judgment as a fiduciary, that the value of voting outweighs the securities lending revenue","page_number":205,"box":{"x":69,"y":692,"width":825,"height":11}},{"id":"2f2a6ed6-1b95-495e-80e1-99f97e105a4e","block_type":"box","text":"loss to clients and would therefore recall shares to be voted in those instances.","page_number":205,"box":{"x":70,"y":707,"width":568,"height":9}},{"id":"3f60e79b-dad0-4140-8f87-102b08ecf3cc","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":205,"box":{"x":102,"y":725,"width":790,"height":12}},{"id":"c1fd7a75-884a-45ca-b2bd-d05f7edec28b","block_type":"box","text":"and may modify it as necessary.","page_number":205,"box":{"x":69,"y":740,"width":228,"height":11}},{"id":"0342f0a8-a2d3-46a6-8c0a-57d8e6aa9e9e","block_type":"box","text":"Reporting and vote transparency","page_number":205,"box":{"x":69,"y":763,"width":239,"height":11}},{"id":"0cbedd45-892a-4940-9fbd-3f1f7b384b44","block_type":"box","text":"BAIS is committed to transparency in the stewardship work we do on behalf of clients. 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Reliance upon this information is","page_number":206,"box":{"x":68,"y":822,"width":823,"height":11}},{"id":"0e7b7f9f-2872-443d-aff1-e9487061496a","block_type":"box","text":"at the sole discretion of the reader.","page_number":206,"box":{"x":69,"y":837,"width":250,"height":9}},{"id":"f5c3565c-a5ef-4d43-87ae-f0914d562573","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":206,"box":{"x":69,"y":868,"width":196,"height":10}},{"id":"664b0bf9-7324-4e14-8047-78366a5aa994","block_type":"box","text":"©","page_number":206,"box":{"x":68,"y":898,"width":6,"height":4}},{"id":"ee26e393-76a3-4426-8ae6-dd69466e275e","block_type":"box","text":"2025 BlackRock, Inc. All rights reserved. BLACKROCK is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":206,"box":{"x":75,"y":898,"width":809,"height":11}},{"id":"db84beba-693e-4632-ab35-0b955cdb3c15","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":206,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"89d4751b-683c-4c67-8f9f-0d8f862ddb4e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a35982e1-2c45-4cdf-ae81-0fbbd9f61434","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":206,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"bc607fc0-1f49-4e85-abb1-7546dd9126ec","block_type":"box","text":"NM1026U-5993100-206/236","page_number":206,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f50e6472-b52f-41e7-840f-c227baf88fec","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":207,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"457bac13-a3d6-4696-9c2d-8ea697c7179c","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund 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Funds","page_number":207,"box":{"x":205,"y":173,"width":589,"height":11}},{"id":"3b49cdc2-5df1-4a1e-99c3-0587e16e86f1","block_type":"box","text":"□","page_number":207,"box":{"x":405,"y":196,"width":14,"height":11}},{"id":"fad8b1a8-da33-41db-8c08-c5d24bd7b152","block_type":"box","text":"Money Market Funds","page_number":207,"box":{"x":426,"y":196,"width":147,"height":11}},{"id":"6dd1c232-96e9-4ba4-99e6-5a0b7319e261","block_type":"box","text":"□","page_number":207,"box":{"x":416,"y":218,"width":14,"height":12}},{"id":"957cdb64-80fd-484b-8bf3-2d5d0e09d764","block_type":"box","text":"Closed-End Funds","page_number":207,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"3792324b-f050-463e-ac2a-7b506c75c7f0","block_type":"box","text":"□","page_number":207,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"e8ddb489-1cab-4641-8fd8-fabed716ebe8","block_type":"box","text":"Other","page_number":207,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"c21d8f0b-4f50-4870-87bf-eeff46b3e997","block_type":"box","text":"Objective and Scope","page_number":207,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"61a3958c-503f-4c45-b854-35a44ab87207","block_type":"box","text":"Set forth below is the Index Equity Fund Proxy Voting Policy.","page_number":207,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"08168315-9600-4d78-8f4c-70761a6b5bfb","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":207,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"12da90b5-1ba3-4872-98c0-87d9e2d00fd5","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":207,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"77721776-5a77-4a14-9795-f1323b3edf2b","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":207,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"f07a5580-2b64-4685-9e5a-f07beb0e11df","block_type":"box","text":"voting proxies relating to portfolio securities of the Funds, and have determined that it is in the best interests of","page_number":207,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"9748e28b-70cb-449b-8c72-f44f13cff177","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":207,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"19a1c6d0-de3f-457e-986e-0eda1dd05304","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":207,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"391824e7-4808-44d7-afd6-77059cb6801b","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":207,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"a91989ac-fe62-4967-80cb-ac583b13ca73","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":207,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"5f339e1e-e091-4425-bb6f-750852e47542","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":207,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"c1f5273b-12e4-44a3-b106-7064100cd9f9","block_type":"box","text":"the iShares Core S&P 500 ETF. In addition, BlackRock has adopted guidelines and procedures (as from time to","page_number":207,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"46b8742c-f774-4411-890f-6a4b5fed3746","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":207,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"37eca960-721b-40e4-b592-559cc4815941","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":207,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"30a8ffc4-dd38-4e6a-9fd5-ead0bb928d25","block_type":"box","text":"Appendix A.","page_number":207,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"f91c65a0-90a7-42f1-95be-9c63d21561f8","block_type":"box","text":"BlackRock will cast votes on behalf of each of the Funds covered by this policy on specific proxy issues in","page_number":207,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"2a37c5de-f499-4a30-b1bd-58bd2b04b01d","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines and","page_number":207,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"3db44ab0-1fcf-494b-881d-acf2e902134d","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":207,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"924d28f2-a078-4a24-b5e3-ff4cdf752a8e","block_type":"box","text":"Conflicts Management","page_number":207,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"1ac02f32-354c-4a34-9f03-419d576aedd2","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":207,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"f6daab0a-1e1d-4956-845c-c267779d046f","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":207,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"e9dd699c-59c6-4da4-ae9f-bbe0d3cc54e0","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":207,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"258f5ea6-67ed-484e-b61f-7e63d3c80cc7","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":207,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"c9138d30-d14d-4e82-b976-68c76845c3fa","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":207,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"4570c86c-ed31-403c-a5eb-97d99abab19e","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":207,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"2d144ce9-f609-47fc-a50f-f59dac5c4913","block_type":"box","text":"connection with proxy voting.","page_number":207,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"014df8b2-bbee-4d09-8154-6555708dd242","block_type":"box","text":"Reports to the Board","page_number":207,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"cab21af9-13e0-4327-b3a7-b678a0232d07","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":207,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"756bb66d-5204-489a-8c0d-d94e516da440","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all 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Our role, on behalf of clients as long-term investors, is to better","page_number":211,"box":{"x":69,"y":526,"width":840,"height":11}},{"id":"c45cfa2c-f3bf-4e5e-a90a-380b9f9a0d77","block_type":"box","text":"understand how corporate leadership is managing material risks and capitalizing on opportunities to help protect and","page_number":211,"box":{"x":69,"y":541,"width":835,"height":11}},{"id":"e99ae96d-97fd-48a3-a79a-661150d05491","block_type":"box","text":"enhance the company’s ability to deliver long-term financial returns.","page_number":211,"box":{"x":69,"y":556,"width":481,"height":11}},{"id":"732b0479-3705-4233-949a-51611e52d9da","block_type":"box","text":"STEWARDSHIP IN PRACTICE","page_number":211,"box":{"x":384,"y":586,"width":210,"height":9}},{"id":"5460c26f-1923-4169-818a-16429cd906e2","block_type":"box","text":"The assets BlackRock manages belong to our clients, which include public and private pension plans, insurers,","page_number":211,"box":{"x":101,"y":609,"width":791,"height":11}},{"id":"bc1b1a45-fd97-4a63-8001-d2a36816f820","block_type":"box","text":"official institutions, endowments, universities, charities, family offices, wealth managers, and ultimately, the","page_number":211,"box":{"x":69,"y":624,"width":772,"height":11}},{"id":"f597dac9-ff1a-4958-8693-5f282d7b2b73","block_type":"box","text":"individual investors that they serve. Through stewardship, we assess how companies are creating long-term financial","page_number":211,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"f9e9dfbd-0c4f-4f46-80cf-64747f07c5f2","block_type":"box","text":"value to serve our clients, many of whom are saving for long-term goals, such as retirement. 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Engagements provide companies with the","page_number":211,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"24e4cbf0-d7cb-4b0d-9014-fe367396ce99","block_type":"box","text":"opportunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":211,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"d7c6d216-aad2-436a-915b-1d8975307baf","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":211,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"7dea1e06-3c2f-405e-9649-8d5a40a9a6a8","block_type":"box","text":"1","page_number":211,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"4d44f0b0-ea4d-4cc9-aa04-553fe7097b90","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":211,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"c643eb8c-5d08-4c30-97c4-42f619abbede","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":211,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"ad289f82-6fed-4e07-99ea-ec06630be8fc","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":211,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"d8f5062c-e687-4feb-a480-ec78ae59fdec","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":211,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"f9f0894e-f3ca-4787-b706-b315283fc571","block_type":"box","text":"2","page_number":211,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"8ecf2a06-0432-467a-a042-16264c75e0b9","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":211,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"ca010763-ba7b-41cc-8cfb-2b1426f88745","block_type":"box","text":"five themes on which we most frequently engage companies, where they are relevant, as these can be a source of","page_number":211,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"2ef83ab9-97ab-4d52-9ddd-80958a8c86de","block_type":"box","text":"material business risk or opportunity.","page_number":211,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"294a8bae-8663-46d6-9965-21c79c7408fb","block_type":"box","text":"BlackRock Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"eb0a349f-659e-46e2-815f-a4064ca23e3a","block_type":"box","text":"Global Principles | 3","page_number":211,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"56be0030-bd9e-4af7-9241-2d1896672e32","block_type":"box","text":"NM1026U-5993100-211/236","page_number":211,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3244bfd1-6bda-47a3-84cc-5f1a86bc5ff2","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of corporate","page_number":212,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"f4396754-d3a7-485e-b191-a9c3969237ea","block_type":"box","text":"governance. As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":212,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"783164f9-3041-4a5d-bac2-d930deaa2ba5","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":212,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"e9fb0d40-cfe4-48ef-87b9-e0bb71239732","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":212,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"1ceec243-9970-4c81-87b7-d111d1903536","block_type":"box","text":"judgment of what is in the long-term financial interests of clients. 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These are topics that shareholders may have","page_number":212,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"6ea1d665-0ca5-4f12-8ca7-b10376522717","block_type":"box","text":"the ability to vote on at shareholder meetings. 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Our regional voting guidelines explain how the BIS Global","page_number":212,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"b6a035ef-4444-43dc-b8ee-9c27204e2ee1","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":212,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"8f35d20d-1013-433a-a477-37dd926c1479","block_type":"box","text":"4","page_number":212,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"cec50996-0c4b-426a-9763-bb8f2bb8ce9d","block_type":"box","text":"3","page_number":212,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"b537115e-d3d7-4eb9-b321-bc7fb873b250","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":212,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"65202d76-bb08-4e7d-8f4d-0b9881796e46","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":212,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"5f122017-6d18-446d-81d7-9c923aef224a","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":212,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"eda297fe-7883-46a6-bd83-a19c8592852a","block_type":"box","text":"4","page_number":212,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"19d14b52-c518-424d-a605-df14b05a8fad","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":212,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"e38ae255-b5f1-426d-894d-4e527ede6cb4","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":212,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"afa826a9-43b9-4c19-9658-fafc7a3d2abc","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":212,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"fb928fb1-d270-47ec-8d9b-c7c62d34e7b4","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":212,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"25859053-08cc-4934-af7e-b0d6a9f0a32b","block_type":"box","text":"guidelines.","page_number":212,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"5593592f-98f8-4e53-919d-cb9f8c23667b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a50bab04-35bd-489a-ad55-20c54b0a9110","block_type":"box","text":"Global Principles | 4","page_number":212,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"af76cd31-0f4e-4ded-8eb8-90f63c7d8d40","block_type":"box","text":"NM1026U-5993100-212/236","page_number":212,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fdcefcc1-a1ac-456a-9600-bd651dd245e8","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":213,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"cad75bf8-65ab-4675-9909-bbac82eaf892","block_type":"box","text":"Oversight role of the board","page_number":213,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"8ce820b1-0580-4b8b-b641-07562aef6d5e","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":213,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"c011e8d4-1225-4438-a5bf-33b5088b4ae5","block_type":"box","text":"characteristics relevant to a company’s business enhance the board’s ability to add long-term financial value and","page_number":213,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"6ccf5dd4-91e3-43b0-818b-1491a3e8233b","block_type":"box","text":"serve as the voice of shareholders in board discussions. In our view, a strong board gives a company a competitive","page_number":213,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"b50c060f-cd20-4a6d-a686-981fb67916e0","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most important management decisions that support","page_number":213,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"357eb53b-a310-40b9-9072-2e19e6649845","block_type":"box","text":"long-term financial performance.","page_number":213,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"dc7913d1-b968-4ae8-adbf-c5d3fda147bc","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors. We","page_number":213,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"8f65567e-673c-4193-b54f-21181d583e09","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":213,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"007cba61-39dd-43ba-afe9-b470f03bac5c","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":213,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"b649d5e6-3c41-4b27-8abf-ab6d910259ff","block_type":"box","text":"the business environment in which a company is operating.","page_number":213,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"b2550574-0736-4c0b-a964-30f23093c16f","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":213,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"33643944-1ea3-4343-92e9-9a0079ba22d7","block_type":"box","text":"governance mechanisms that supports its oversight of the company’s strategy and operations, consistent with the","page_number":213,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"57626d16-8424-4253-97ad-40c07e59209a","block_type":"box","text":"long-term financial interests of investors. This includes having clear descriptions of the role of the board and the","page_number":213,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"8c1afce3-27f8-4fa1-842d-e2ad1f439ff8","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":213,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"d602c74f-89a6-4c4e-b33a-5bf17fd72bd0","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":213,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"e78b922e-d665-4c96-b5a9-7eb223c993fd","block_type":"box","text":"mitigating such risks.","page_number":213,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"72f2762b-5d91-407a-b38f-190bfe1735fd","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":213,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"e23b97fc-5a0b-4ef6-8dc3-c91f949cb201","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":213,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"f1bd0dea-1902-497a-9e2f-8360a68147e4","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":213,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"b77c5188-3f56-46d6-afd5-45ed213d1dae","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to articulate the effectiveness of these","page_number":213,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"a727af46-8d0b-4ae6-a903-c38aaf36642e","block_type":"box","text":"mechanisms in overseeing the management of business risks and opportunities and the fulfillment of the company’s","page_number":213,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"9a8b860e-068f-453c-bcdf-e4f191d735dc","block_type":"box","text":"strategy.","page_number":213,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"34d2f28e-3925-4dcf-9f45-92aa787acc75","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":213,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"0acf2a10-f3db-4ebb-bcf9-816cb1c0a874","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not supporting the election of directors who, in our","page_number":213,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"32ee04b6-9148-4cdf-8a05-83ce0e5fd7ed","block_type":"box","text":"assessment, have particular responsibility for the issues.","page_number":213,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"0757e88b-8e4b-4dba-83a1-e881b055e670","block_type":"box","text":"When casting vote decisions on behalf of clients on the election of directors, some of the factors that speak to","page_number":213,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"509ea935-e51d-4bf2-a91b-ecbdb386da30","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":213,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"174424ad-117d-4295-a598-71eeb6060928","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":213,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"2afea077-06ae-4652-9a47-1c079309aece","block_type":"box","text":"performance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":213,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"a5bcfa96-2d1d-4e0d-8360-da25b3212acd","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":213,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"2f5590a0-d41d-4027-b6f5-b3549cceb43f","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":213,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"e66610f6-0b5e-4be9-9f8e-103cfd0ce7bb","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":213,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"9787bee4-d398-4eb6-9808-b589bcd16b37","block_type":"box","text":"Regular accountability through director elections","page_number":213,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"d292f6a9-9470-457e-8ea5-ab923fc2ecd5","block_type":"box","text":"The election of directors to the board is a right of shareholders and an important signal of support for, or","page_number":213,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"d88891a9-0a9c-45e7-990f-5fb5ab5567a8","block_type":"box","text":"concern about, the performance of the board in overseeing and advising management. To ensure accountability for","page_number":213,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"64b2d587-3994-46a2-ac69-cd8c5fdcaa86","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":213,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"bb23a68d-4583-4a2a-906f-42b7c0efc530","block_type":"box","text":"5","page_number":213,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"a06affcc-268f-487b-b317-1adb6dfe4b4d","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support for, or concerns about, board members’","page_number":213,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"78e31b19-a8d9-439a-8aac-4434776c6577","block_type":"box","text":"decisions in a timely manner. When board members are not elected annually, we consider it good practice for boards","page_number":213,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"c2ed88d0-3c28-4a43-a028-9959d989f9bc","block_type":"box","text":"to have a rotation policy to ensure that, through a board cycle, all directors have had their appointment re-confirmed,","page_number":213,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"e672ca71-b33b-4746-97ae-93532e5e3695","block_type":"box","text":"with a proportion of directors being put forward for election at each shareholder meeting.","page_number":213,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"ff00a93b-7ea8-4d73-bef2-ea1e396ecdb6","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":213,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"1bc94f9a-7067-4fc5-9352-62531c79278f","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way to reflect","page_number":213,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"ecc886c7-79d3-40c7-b95a-482a366e6164","block_type":"box","text":"developments in the company’s strategy and the market environment. In our view, it is beneficial for new directors to","page_number":213,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"e8907eb5-8daa-463a-9057-772241f6e698","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while supporting both continuity and","page_number":213,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"0dce6414-1053-4908-9132-87c6ac10949b","block_type":"box","text":"5","page_number":213,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"fdc182d8-ba92-4b05-80cb-efbe776ff269","block_type":"box","text":"In most markets, directors stand for re-election on an annual or triennial basis, as determined by corporate law,","page_number":213,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"a9c78bc6-6e6a-463f-9bd6-9fa0859c71c3","block_type":"box","text":"market regulation or voluntary best practice.","page_number":213,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"0369963e-fc73-4749-b763-67f5b7175fdf","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a3e8b807-0e74-4ec1-9927-a0d988dd94c1","block_type":"box","text":"Global Principles | 5","page_number":213,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"10bf5483-ad3b-45bb-be85-f7a1fabd934d","block_type":"box","text":"NM1026U-5993100-213/236","page_number":213,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ca4fe752-a5b5-4b78-aeab-ff5f6f3d9631","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":214,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"7ef3c69b-54a3-4b21-8a09-efdbc91f4bf3","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":214,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"b2ab5911-a3f4-434f-a6bc-3c907a821d90","block_type":"box","text":"recently.","page_number":214,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"c26fb152-8471-4ece-b45c-d0d48406bfd6","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":214,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"00a7c627-7b38-4f2a-b56c-d40ff26be685","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":214,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"f8613308-ce4b-4eb2-84f0-c949b5d4055c","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":214,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"71209f2c-53f0-446f-a8cc-81e6e5b97ec6","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":214,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"4708d78d-c565-4648-bd3f-8729d705213b","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":214,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"dee661db-4b52-4b31-9d01-5826b4008360","block_type":"box","text":"Director independence","page_number":214,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"802e38ac-4572-490f-b3a0-3d74e3722f1a","block_type":"box","text":"Director independence — from management, significant shareholders, or other related parties — is a central","page_number":214,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"39e91632-82c6-4f1a-80a3-f160761cdcb3","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":214,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"1a3f1208-07af-40f2-800e-b688e4217667","block_type":"box","text":"6","page_number":214,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"4811f9d9-87ef-4e00-be51-f32f1d3ca683","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":214,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"3da5ffa0-cdda-4e7e-b5ea-8899e5e60b24","block_type":"box","text":"directors, free from conflicts of interest or undue influence, to ensure objectivity in the decision-making of the board","page_number":214,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"749abbd2-2ea0-4e22-aafa-f99152b1ac34","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":214,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"27591baa-f75e-4adc-933d-5cb36d745cbf","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":214,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"9ac383c6-4723-4b42-aa4e-b2f97857ecda","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":214,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"389b132c-f34e-4121-99ba-4eb5c77761d7","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"ead4d66a-2579-4f05-9c96-5e05a882e14a","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":214,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"103fc6bc-745e-45e8-9f44-a52a38792024","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"60091ec5-3e91-47e4-afa6-5a0abb2fa5d6","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":214,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"875092ec-0543-49da-bf9d-9d7532eee1f2","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"ea12d0dd-825c-42a1-8393-21e8b85e983d","block_type":"box","text":"Interlocking directorates","page_number":214,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"10ed4d0f-579c-4269-b93b-5a0611b99f70","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"0f231b38-e26f-4908-813a-8d78446fca79","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":214,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"2ee6a497-e7bc-48e4-9183-1be1161b2f47","block_type":"box","text":"materially interfere with a director’s ability to act in the best interests of the company and shareholders","page_number":214,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"097fb48a-7f97-47b6-8081-80b9e97a582f","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":214,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"00983545-4d22-4737-a177-0a3f59007100","block_type":"box","text":"independent board leader. This director may chair the board, or, where the chair is also the CEO (or is otherwise not","page_number":214,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"191a1b13-92cd-4a31-9581-452e056cdaba","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to support independent board","page_number":214,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"1ce74c50-9a3a-4401-a46c-fe07cff00d65","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":214,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"9930813b-bc84-4260-b416-37fd88120844","block_type":"box","text":"is provided to the board, and encouraging independent director participation in board deliberations. We appreciate","page_number":214,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"47be5c19-2330-4cb8-acc0-f1b50f13b7a4","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":214,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"ffd4b1b7-25a0-4097-89e3-9efa2a9c9790","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":214,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"4fd09c83-af73-4efa-a70c-88cfa5df61fd","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":214,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"0301ad08-3412-477d-8264-ad644652f7ba","block_type":"box","text":"require additional focus. It is our view that objective oversight of such matters is best achieved when the board forms","page_number":214,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"f37dfa4d-0a00-402e-b1b5-88347f142c96","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":214,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"37f8c9e3-12cb-47da-a356-cf772ef5296a","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":214,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"15336e64-3c47-4834-aa33-b22a4faea72e","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":214,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"ad198387-5d04-460e-9d27-e1bc787e343b","block_type":"box","text":"particularly one involving a related party, or to investigate a significant adverse event.","page_number":214,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"52f547be-d7a6-4b01-ac4c-4c83cfb7ce1a","block_type":"box","text":"Sufficient capacity","page_number":214,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"756fac17-431a-4360-b3be-ab622773390c","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":214,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"60ad5ac1-939e-41e3-b367-725ffc51262d","block_type":"box","text":"appropriate amount of time to board and committee matters. It is important that directors have the capacity to meet","page_number":214,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"808acae1-28df-44fd-967b-d085bb42ab11","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":214,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"4f87ce77-e8d5-43e4-8151-aab603494d9a","block_type":"box","text":"practice when they don’t take on an excessive number of roles that would impair their ability to fulfill their duties.","page_number":214,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"110fa1da-0fc1-4f24-905c-c497973a1800","block_type":"box","text":"Board composition","page_number":214,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"152f7f2b-a050-4cae-80de-a6cee2400c0c","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":214,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"2c096fa0-8cdf-40ca-95e7-68e7a9522941","block_type":"box","text":"capitalization, and ownership structure, as well as the market in which the company operates. We find it helpful when","page_number":214,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"582e1aee-b737-40ba-a1b9-c2e59216596f","block_type":"box","text":"companies explain how their approach to board composition supports the company’s governance practices.","page_number":214,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"7cd52b69-1028-4bdf-b3a2-5a94964cd179","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":214,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"bae719ba-2f64-4fba-a47d-b1ce49952956","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":214,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"7f6887d7-15d0-47ac-8245-33c1edd84302","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and expertise of the","page_number":214,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"def3850a-90ab-4629-9598-d03e64e4d62a","block_type":"box","text":"board, as well as the particular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":214,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"e8f14e2a-4797-4cec-89b3-683dde2456b5","block_type":"box","text":"6","page_number":214,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"de4929b9-7a4c-41d1-a2ea-48c6a8fffce7","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":214,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"f1908362-46e0-4d6a-95dd-842a2ed88ae6","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":214,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"df6edcba-fbd6-4d92-b46e-85c2836c93f3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ac2a95c7-4564-45e1-9cbc-77a97b02be2c","block_type":"box","text":"Global Principles | 6","page_number":214,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"14a9d20c-9446-4900-bcec-d61546d810ab","block_type":"box","text":"NM1026U-5993100-214/236","page_number":214,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"77eeccd4-1e7f-4d80-8bab-2d7090c2f577","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":215,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"9b6d5a9f-254c-44e8-afe2-a8b7cf3ef906","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":215,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"78268c2e-c858-4639-ad08-2eb458db1144","block_type":"box","text":"It is in this context that we are interested in a variety of experiences, perspectives, and skillsets in the board","page_number":215,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"a626b66a-5f26-4835-844e-2659f2e13f09","block_type":"box","text":"room. We see it as a means of avoiding “group think” in the board’s exercise of its responsibilities to advise and","page_number":215,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"90867699-9d94-4eb7-8f16-b26226349fbc","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":215,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"1dc0b572-8794-4c83-aa05-74e9d70c9321","block_type":"box","text":"may discuss with companies, particularly if there is a risk their board composition may be misaligned.","page_number":215,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"f09059a9-6266-4a68-872f-189eaa4f53ea","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":215,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"a84407b8-768c-41dd-a6ac-0ada053fb19e","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate portrayal of a","page_number":215,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"4df0f5f7-d2e2-4d6d-bdc3-5b3839681669","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":215,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"8b80df17-3420-4a5f-bf5a-0d466b97777f","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":215,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"def347d3-514d-4adf-98a3-d16655124afe","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":215,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"77fd3268-280b-455b-9e03-4a46db98d07b","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important role in a","page_number":215,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"2faf5102-7a91-4838-9142-5fc22456a39c","block_type":"box","text":"company’s financial reporting system by providing independent oversight of the accounts, material financial, and,","page_number":215,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"462985d4-590e-4c1a-940c-cb50f1d1d10d","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":215,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"85fc88c5-67f2-455c-8a53-d616189faa82","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":215,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"33639106-dfe1-45aa-8a88-ec6c8d047191","block_type":"box","text":"systems.","page_number":215,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"99c3bdc7-f2cc-41d7-be28-aa5e8493bf17","block_type":"box","text":"7","page_number":215,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"247745ed-741b-4c3e-9602-23b9f08d12fd","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":215,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"e6ad7ac5-e8c7-4f84-9e19-b4b9d76a38d5","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders.","page_number":215,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"7a3e0d23-e151-43ce-8cc4-ee2bfa05a76e","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":215,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"5cebe260-74eb-432c-b645-5fa9a0de1fea","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":215,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"53eabc5c-908b-4a68-8663-1473a19fe2c6","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":215,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"f9a9c473-dc35-400f-a2a8-f37e9ceec317","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":215,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"6937b3b2-c45e-49b3-8ec3-a5af00012ed8","block_type":"box","text":"expertise to monitor and oversee the audit process and related activities.","page_number":215,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"6b0622ad-cf39-42ed-b242-13d6e4be547f","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant financial","page_number":215,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"b5185282-122e-431e-bfdd-072c631e1295","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":215,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"7cccf8bd-c578-46f6-9044-6a51cbe97916","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":215,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"4ce2363b-d8a5-40b0-8005-fc123e2d17c2","block_type":"box","text":"or internal audit function.","page_number":215,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"19403b64-3db7-414b-8b42-3bc0dda65887","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":215,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"d8cfb520-c9ac-4e7a-a522-b363b9737dda","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is important that auditors are,","page_number":215,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"27940179-b31b-4f7f-beb6-1ebe49954d63","block_type":"box","text":"and are seen to be, independent. Where an audit firm provides services to the company in addition to the audit, we","page_number":215,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"b227f5d6-8806-4627-8c7a-72f5776d56b2","block_type":"box","text":"look for the fees earned to be disclosed and explained. We look for audit committees to have in place a procedure for","page_number":215,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"9bd29c56-3c1c-4f28-af6d-559d773848a5","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":215,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"574fc5ea-6a6d-4bd4-aafa-b44a10be9278","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":215,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"768b5ebc-733f-451c-bafc-39a5bb225579","block_type":"box","text":"management practices and, more broadly, the quality of the board’s oversight. We look to the audit or risk committee","page_number":215,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"47354f5e-487c-45f1-a9ce-8b93896063f9","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":215,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"aff1cd86-221e-43ea-b8d4-c0f6e713013b","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":215,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"a741227f-5acf-4b76-be5e-943bbf2ef48b","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":215,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"45cdeaff-54a1-4aed-94bb-2c00aed57622","block_type":"box","text":"risk.","page_number":215,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"4b5c8c62-7929-41ab-8486-0db20b8b123e","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":215,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"b26fc90e-ad19-46bf-b28d-c1b5a00b0b9b","block_type":"box","text":"The capital structure of a company is critical to shareholders as it impacts the value of their investment and the","page_number":215,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"a4b88ad7-40ba-4ce7-ae67-c798c09a13fc","block_type":"box","text":"priority of their interest in the company relative to that of other equity or debt investors. Pre-emptive rights are a key","page_number":215,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"44ec1d11-bd5e-457f-99c1-1450df291b97","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":215,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"044d5240-b0bc-4316-b125-98674529b6a9","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":215,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"32eda082-97e7-44f5-a193-740845ebeaad","block_type":"box","text":"differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce the adoption of","page_number":215,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"3af70426-04c1-4357-98c0-40aa5eebb673","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":215,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"003f6133-19f2-4141-af35-0c715c83854e","block_type":"box","text":"7","page_number":215,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"505f09fd-4585-40e0-99d6-de8d609dbddf","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":215,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"fc8e974f-09b0-49fd-9d65-1b5eb3093059","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":215,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"8deb5d74-e26f-4c39-a15f-5d46b4ac9dde","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":215,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"57d60d7d-d224-4e67-a839-c75626d93ebd","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":215,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"7e2c5edc-327f-4daf-9e7e-0b85df11a700","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":215,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"5701faaf-673d-40b0-ba1d-2d5601ee51a7","block_type":"box","text":"BlackRock Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"88e1ac6d-f471-4fc4-a997-2d3fd34b313b","block_type":"box","text":"Global Principles | 7","page_number":215,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"f171c4b2-9a10-46a4-a939-e5e9f44f4bce","block_type":"box","text":"NM1026U-5993100-215/236","page_number":215,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1f8bd54a-dfaa-43f7-b9e4-d47dadea649a","block_type":"box","text":"However, we recognize that in certain markets, at least for a period of time, companies may have a valid reason","page_number":216,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"dafea612-e34d-430f-871e-b09206e88201","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":216,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"3374d53d-ff71-4205-a918-9de33c6b513d","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":216,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"71862d65-0bfb-4eca-9129-0a6e51a6c6c1","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":216,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"c0d55208-c55d-4772-a6e3-355a3cc75c93","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the opportunity to affirm the current","page_number":216,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"ccf8a93a-810f-4886-a64d-e7b2ab6d4e73","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":216,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"b9033ae3-e218-46df-9c58-b5dee24ff874","block_type":"box","text":"minimizing costs to shareholders.","page_number":216,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"1f8275ac-d5d9-4eb0-8f63-3cb64f8cc16e","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":216,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"8ed907eb-bbd0-4701-8edb-7c5f3119009f","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":216,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"f24056f7-21d1-4559-a7b2-e99dcc0a7add","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous support of the","page_number":216,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"c6cce14d-ef71-4664-b512-21c571b27a56","block_type":"box","text":"board and has been negotiated at arm’s length, and whether the board or management has clearly explained its","page_number":216,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"78b7de8c-4991-4c5d-b607-fe57a2307c8b","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":216,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"1ead7eac-dda4-4c1f-824a-69cee59160c5","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":216,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"d534a437-e8dd-45d7-9ea5-e8be49441dd7","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related parties, the recommendation to","page_number":216,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"45d37d7e-6aa6-49be-b75e-d7f2f1f14f47","block_type":"box","text":"support should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":216,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"67f97487-e08c-465a-970f-606f6136cd2e","block_type":"box","text":"have been assessed through an independent appraisal process. In addition, it is good practice that it be approved by","page_number":216,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"fc70bd08-c134-452f-9003-788e5d614839","block_type":"box","text":"a separate vote of the non-conflicted parties.","page_number":216,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"5745e040-9623-449e-8bc1-dcfd106424eb","block_type":"box","text":"As a matter of sound governance practice, shareholders should have a right to dispose of company shares in the","page_number":216,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"48762fa4-ffa9-42da-96bb-368b902d9590","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":216,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"da79c7c6-a6bc-4645-be1a-e25706c9416e","block_type":"box","text":"ability to sell their shares are contrary to basic property rights. Such mechanisms can serve to protect and entrench","page_number":216,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"9b9f22eb-ce8f-465f-9beb-750b036be564","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":216,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"b755a8ae-6e65-422d-bb82-9030c8cbc2b5","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":216,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"5408486c-77eb-4989-b045-4a53d5122804","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":216,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"0eb47294-7bc8-4797-8233-8579b7f5a0c9","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":216,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"787d393d-3809-4fc6-a170-b34308d1afd2","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value creation. A","page_number":216,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"99e0e616-8ff4-495d-8282-7041ab07456a","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":216,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"b939a629-9a18-4d48-8c3a-7ff3b02a13d7","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":216,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"65b3c331-7663-4699-a55a-2ff7e0b46228","block_type":"box","text":"ownership.","page_number":216,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"34c349d2-de03-410b-942c-3de3713b77e9","block_type":"box","text":"8","page_number":216,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"622911b0-b4c6-4c14-8988-a214a7206279","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support sustained","page_number":216,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"de45b8e8-bdbe-4c1f-8ba3-6141374fef69","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when performance targets incorporate","page_number":216,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"c669f753-6d6a-4046-97c6-b518dfefd8e5","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":216,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"63be6e47-2545-43a2-b2f7-62c9d6f138dc","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":216,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"7b5dc746-bd74-4836-a657-6c567f7dccd4","block_type":"box","text":"structures, but, where they are included, we look to companies to be as rigorous as they would be in setting other","page_number":216,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"0978a772-2da2-4115-b3b0-8db5c6a9f9e9","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":216,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"a1d2c6bc-c35f-45d2-90f5-ac3d0054c84b","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":216,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"74bd9aed-7990-4817-a000-99b2d3d10929","block_type":"box","text":"results over a period of years.","page_number":216,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"158aa760-c66a-4075-896e-fb72fb6ee8c7","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":216,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"ece35729-8011-4c92-97e0-770eb8a849ca","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":216,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"0fba7e27-f110-4131-af10-79ea822637bf","block_type":"box","text":"company’s risk profile, the environment it operates in, and the individuals the board is trying to attract and retain. We","page_number":216,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"46c48a7c-3abd-4a9d-9458-af7c1595d7f3","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":216,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"be638eda-f44a-4028-aaef-8326918e771c","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":216,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"dfe70ba7-a348-438c-a31a-194e4fa768c9","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":216,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"e4bcc915-6f56-4d1a-82c7-dfef4d43aa95","block_type":"box","text":"executive compensation strategies.","page_number":216,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"0d9fc003-7011-4354-99c6-6bc1a8c620ad","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance. Where","page_number":216,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"f62c97f0-b0ba-4c29-aa8c-6748a1e1c02c","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":216,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"9fcc9264-f58e-4c80-a2a0-73dc9d5ca639","block_type":"box","text":"and why the discretion was used, and how the adjusted outcome is aligned with the interests of shareholders. In","page_number":216,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"6f171d03-cf7b-44c7-8c0d-f48be107e7f1","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":216,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"74beaad2-4e79-48d3-8f5e-7dc25b09339d","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":216,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"c9341579-8d4b-434a-9379-26631adb7446","block_type":"box","text":"performance rather than solely base increases in total compensation on peer benchmarking.","page_number":216,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"5cf3845e-2839-4d1a-82ac-05f128e2b621","block_type":"box","text":"8","page_number":216,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"8275e667-d7dd-4292-9fd8-c8f95acf3c70","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":216,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"e4d42049-96e5-47be-b1f5-3aaa9d5abb09","block_type":"box","text":"different markets.","page_number":216,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"4217adb3-53bb-4a7e-ba06-b6a1f08167a9","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"dab70dd5-94bb-494b-aa60-48d62dd3efe9","block_type":"box","text":"Global Principles | 8","page_number":216,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"b05947a3-834a-4eb9-a3d4-92d3a44870b2","block_type":"box","text":"NM1026U-5993100-216/236","page_number":216,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"454f4b66-a8a6-4ce6-b588-56502340c514","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":217,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"02009b86-270f-4f08-89f7-67da21284f1f","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":217,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"b7d5fd0e-6b22-45ad-ba3f-2156ac77510c","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":217,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"a0583251-bd02-48d8-b7a0-ee3a1f52f6d1","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":217,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"daeceba6-08cb-407c-b77f-5e480e594e7d","block_type":"box","text":"In our view, non-executive directors should be compensated in a manner that is commensurate with the time and","page_number":217,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"04739d8c-d09c-4204-b80e-43354de28880","block_type":"box","text":"effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":217,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"0300d649-207a-4efd-b8ae-dab7b0ff210f","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":217,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"7f5309e7-f391-4353-a3fc-bfdbff96b2b3","block_type":"box","text":"whom they are charged with overseeing.","page_number":217,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"29ec2e82-c6e9-4374-9113-86502d48e9d0","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":217,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"8fddf9e3-69b4-4ef0-9c8a-8081b44895f9","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":217,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"e0833f16-7b05-477e-a178-18dee1628eb8","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":217,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"777d886f-ce6d-424b-829a-639bd87175e0","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance, BIS may not","page_number":217,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"fd61433c-3db7-4e41-a5dc-eab77e2631af","block_type":"box","text":"support management’s proposals to approve compensation, where they are on the agenda. We may also not support","page_number":217,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"1e7a5219-a5e1-4637-aaeb-246b999f6647","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":217,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"d27f573a-0e64-4b85-bfe2-26d54d4a60e6","block_type":"box","text":"structures.","page_number":217,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"8004f9c9-6835-48fa-b043-ebd2a5df6ce1","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":217,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"c234d3e9-1e30-415b-91ae-c7df7af344b1","block_type":"box","text":"Corporate form","page_number":217,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"272c505b-7a83-4191-b4f4-a7f6165306e8","block_type":"box","text":"In our view, it is the responsibility of the board to determine the corporate form that is most appropriate given","page_number":217,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"810920fa-aa36-4271-aa84-074dc32515fa","block_type":"box","text":"the company’s purpose and business model.","page_number":217,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"6e00d286-5c2f-4dba-bbfb-d90af9e1bf4b","block_type":"box","text":"9","page_number":217,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"c597d57a-869c-47da-b756-433d570105f2","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":217,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"db3c7c5c-d81c-4121-8f85-6bbf6bc5dce6","block_type":"box","text":"public benefit corporation, or similar entity, to put it to a shareholder vote if not already required to do so under","page_number":217,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"7e3268ed-a820-424c-a854-00b362f327ca","block_type":"box","text":"applicable law. We appreciate when supporting documentation from companies or shareholders proposing to alter the","page_number":217,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"dd00c23c-923a-4efe-a1ac-fc8e79705123","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":217,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"fc20f507-44a9-4494-b59e-170f1a65b6d3","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally support","page_number":217,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"761bfb90-7efe-4753-bd8b-0d0445869b8d","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":217,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"3ad6f38a-609d-4a03-abf4-96f13f4ef288","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":217,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"3aa13784-7516-4749-8058-b37c7a27f765","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":217,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"6cd38d82-48ca-4bba-8ba2-172f29f95aff","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":217,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"12632864-b200-44dc-a923-edd054d8abeb","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":217,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"640986c3-6210-4431-8783-6b533c95d8ee","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":217,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"db2259f2-2522-4def-95ba-0ef1a0adcc4a","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":217,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"7f1e13aa-f841-4cf1-89da-839b11e02f29","block_type":"box","text":"BIS takes a case-by-case approach to voting on shareholder proposals and maintains a singular focus on the","page_number":217,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"e1bc8dc1-8868-439c-84ea-7ac93d1f7632","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":217,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"5d0f50b4-9267-4430-a162-e513b387301a","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial performance. BIS","page_number":217,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"3d862299-046a-4ced-9546-08da2fa163e3","block_type":"box","text":"may support shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":217,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"8e4d0b44-f7ec-46c8-8deb-339cb241d888","block_type":"box","text":"clients, better understand the material risks and opportunities companies face and how they are managing them,","page_number":217,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"b48387c6-04c1-49a5-b206-73de6d21eb59","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":217,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"df121ae7-35be-4766-b758-26ed17f7141c","block_type":"box","text":"between the specific request formally made in the proposal, the supporting documentation, and the proponents’","page_number":217,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"bf40f67f-3a46-4892-b1d2-419f1d644c5e","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":217,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"71d4d395-5d64-42f2-a813-c8e3c72e162a","block_type":"box","text":"benefits to the company of meeting the request made in the proposal. We take into consideration a company’s","page_number":217,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"ca29d389-253e-4ea9-a833-fd923e5e133c","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":217,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"d01ab0c1-378a-4940-8ff4-e7bcfa6da9ff","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":217,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"3af51ceb-0db1-48db-a6a1-8cff9bed29e1","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":217,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"35ed3797-6f7e-4d4d-92f2-e7bac50b08db","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":217,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"563d1180-45c5-45cd-9da3-4e38a1bf79fe","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":217,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"2d62f90e-5f4c-46c7-af43-573f861dc7df","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":217,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"482d5b32-38d9-4162-9174-ed098b11e113","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":217,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"26382bf6-74a5-4522-901a-f8d8f113920e","block_type":"box","text":"requests. Further, the proponent’s supporting statement may refer to topics that are not directly related to the","page_number":217,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"388a97ad-439f-46c8-9b6b-cff0d23d57fc","block_type":"box","text":"request made in the proposal. In voting on behalf of clients, we must vote yes or no on the proposal as phrased by","page_number":217,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"97870bae-e89b-4ca0-af18-a47ab9c4ca0b","block_type":"box","text":"the proponent. Therefore, when we vote in support of a proposal, we are not necessarily endorsing every element of","page_number":217,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"5e52f06e-802f-4ec0-8f37-359f1754f362","block_type":"box","text":"9","page_number":217,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"68f085e4-717a-45cf-a835-b96d3c133ebd","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":217,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"d47ec5f2-6cfc-40c5-bf83-4fb8cba29473","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"b827b60b-cac6-4faa-9e29-71509d758b3a","block_type":"box","text":"Global Principles | 9","page_number":217,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"f87fb9cf-c746-4bfa-8a84-6d53c632884b","block_type":"box","text":"NM1026U-5993100-217/236","page_number":217,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1d539ecb-ad02-4b71-b907-b6928660f8e1","block_type":"box","text":"the proposal or the reasoning, objectives, or supporting statement of the proponent. We may support a proposal for","page_number":218,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"bd5eacbf-d311-4343-9dca-efd892ac2c4c","block_type":"box","text":"different reasons than those put forth by the proponent, when we believe that overall it may advance our clients’","page_number":218,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"240a15fb-ab3b-49d5-a3ca-27d6f2465d66","block_type":"box","text":"long-term financial interests.","page_number":218,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"9f5f060a-dd6c-4d4f-8a24-e23e6fff295d","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that place","page_number":218,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"f155750e-012d-4878-a9d4-fe3351715460","block_type":"box","text":"restrictions and limitations on how BlackRock can interact with the companies in which we invest on behalf of our","page_number":218,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"e766e418-3aae-4bcd-b648-4dce6c63fcb3","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":218,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"2d393a47-122b-4fdf-bc3a-fad48f9ce3f0","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":218,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"b810027b-e673-48cb-8d25-bed4cbbe8d17","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":218,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"722f498b-77b0-42c4-bc78-257e6d185791","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks and","page_number":218,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"da907e1a-f156-4990-9dde-5ff5283a8dbe","block_type":"box","text":"opportunities, is an important component of having an effective governance framework that supports durable, long","page_number":218,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"cae6ff4b-1ad0-4d79-8824-d58a92ba9808","block_type":"box","text":"term financial value creation.","page_number":218,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"57e68825-3e1f-4650-91b4-ad1c99cf6132","block_type":"box","text":"10","page_number":218,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"580d5ea1-7dc8-4dca-a672-6b7fc837766c","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":218,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"69f93abf-7e05-48eb-abd3-652d2944c21b","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and opportunities. We find it helpful","page_number":218,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"33c2fe4c-67f7-431a-b619-a49cf388389b","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":218,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"62edc397-d54a-4d2a-b668-5caa0e0fdb1f","block_type":"box","text":"sustainability-related risks and opportunities into their strategy, risk management, and metrics and targets, including","page_number":218,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"b6c634e8-99d9-403a-9ae7-a134cdff15ff","block_type":"box","text":"industry-specific metrics.","page_number":218,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"b5418630-c932-4880-8873-238463b3c3af","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions. The","page_number":218,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"4c747377-8a83-4222-be0c-ae9a9a6b8b7c","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":218,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"e4e7cd77-6f4e-4241-9eec-83a223be5391","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":218,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"d8348682-dbcb-4d7d-910e-88103e542510","block_type":"box","text":"11","page_number":218,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"4c9f0c8e-a2f1-4c1a-a822-93ea10ea2198","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":218,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"b9ea3e48-08b8-4bd6-9a81-22df8a53bcf0","block_type":"box","text":"companies should use, and recognize that companies may report using different standards, some of which may be","page_number":218,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"08dee651-f75a-42a1-baec-7d12e957477b","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":218,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"b3e82560-e5b9-4818-b701-387ead632fca","block_type":"box","text":"specific.","page_number":218,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"b7e1ab62-9393-4fed-8967-f5f0d28eac38","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not prescribe timelines","page_number":218,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"2c140b1b-a470-4d0e-b437-1a4ca96c86ae","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":218,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"b0833e83-16c2-4502-8a19-d2d094ea496a","block_type":"box","text":"them sufficiently in advance of their shareholder meeting, to the best of their abilities, to provide investors with time","page_number":218,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"5735e56d-ae44-407f-af4f-896891037247","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":218,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"c13ab31b-dbbb-4834-916f-70e477664b39","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":218,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"15364b0f-b4d2-4abc-b819-e7a1000d5869","block_type":"box","text":"best practices and disclosures. While not a voting item, we find it helpful to our understanding of investment risk","page_number":218,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"e309c108-aadf-4aba-80b6-d9f018dbaad6","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":218,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"ef248a2c-3d55-4279-bcc9-595441ba3853","block_type":"box","text":"which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors","page_number":218,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"3cbf0758-f1ca-4870-8666-ab862aea7f17","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":218,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"70e7d306-3c20-48a7-b8fa-5cf54ff40ed4","block_type":"box","text":"10","page_number":218,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"45a68c13-a60b-4d56-8860-0f30662e8399","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":218,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"2ef8c4b6-2cbb-45e4-baa9-d004518b74d9","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":218,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"3088dd7b-8d43-4a50-a8c8-271b1976256d","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":218,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"6f64c334-80c8-4783-9699-e674c88842c1","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":218,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"a3cd8249-c217-446e-9204-9baa183cc39f","block_type":"box","text":"converged under the ISSB. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":218,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"6c714737-c26a-4366-a143-a6fbb2b8587d","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":218,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"f0ca955a-93ae-4f00-9fe5-806bb9ad2f62","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":218,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"212f8b55-22ce-4200-9cce-406f1062c83b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"cb44d5b9-8709-4b09-a793-e6df7f0abbdb","block_type":"box","text":"Global Principles | 10","page_number":218,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"8b07ccb5-ea38-4276-8256-e7c0edb73906","block_type":"box","text":"NM1026U-5993100-218/236","page_number":218,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6298c2c1-155a-4d4e-b70d-2b52f853c45f","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":219,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"2599fe67-2edf-49e5-8299-d604b2913d61","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":219,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"506a30d2-6854-4ae5-af25-29f4a9e276ef","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":219,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"3d6fc2a2-0778-4004-bec4-7fb200dff3ef","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial performance through","page_number":219,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"a53f90e4-8ed0-4952-8a3a-8941ed0ea9cd","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":219,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"ab43d4e0-b1a9-440d-b0d1-17e6e7b090d8","block_type":"box","text":"12, 13","page_number":219,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"1134a58a-e086-4851-9455-492211373200","block_type":"box","text":"From company disclosures and","page_number":219,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"b6ad7d0c-0f49-43e1-8fc9-062857155f00","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":219,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"acab50d6-a744-4239-8a65-78e087dfdd32","block_type":"box","text":"opportunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":219,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"68161fd9-be1d-4390-ac0d-a08b661e9657","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate large","page_number":219,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"58bd25d9-e8ce-4122-b291-7e6851ecbf1d","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":219,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"d13aac60-f9b5-4d2e-8851-069f45b0b7aa","block_type":"box","text":"viewed as best practice in the market.","page_number":219,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"ecb3e88d-b47b-46d3-ac9d-fb4c15125e76","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":219,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"f8b0065d-0da8-44a8-8220-e95cb3e31100","block_type":"box","text":"climate-related risks and opportunities, and informing investment decisions. Such disclosures also provide investors","page_number":219,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"c0b015c3-b97d-481c-a9c2-77c84dba297f","block_type":"box","text":"with insights into how companies are managing the risks associated with a transition to a low-carbon economy by","page_number":219,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"958dcd4d-f68b-40dd-bc8e-d637c7ae0c2a","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":219,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"d0033c55-a98d-4422-be71-e2553144ab5d","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-, medium- and","page_number":219,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"13e6e0d9-1159-454f-9737-b9ea43ab0d9a","block_type":"box","text":"long-term targets, ideally science-based where these are available for their sector, for scope 1 and 2 greenhouse gas","page_number":219,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"a69787c8-1f6e-4ebf-8a5c-f6f63a102682","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":219,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"dbcdc8a7-c504-4440-a0e4-5fefaec5231f","block_type":"box","text":"interests of their investors.","page_number":219,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"3d7dcc28-6713-4b4d-a0b2-33e837537a2e","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this stage,","page_number":219,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"cfb190bc-99b3-4451-adad-73a217d9400e","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncertainty,","page_number":219,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"740cba3a-0393-4706-9942-e79466f8d4eb","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":219,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"54eb4e25-f8c2-4801-ace2-65850e323daa","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":219,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"1fe20c63-e19b-48ab-8dd0-f40e9f3ffc5c","block_type":"box","text":"good-faith basis as methodology develops.","page_number":219,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"ed360533-47a3-4e2c-8caf-ebe0543e6c65","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or supply","page_number":219,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"ef7c9cce-104d-4817-ad3d-ad3eb887ed44","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and opportunities may affect their ability to","page_number":219,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"ddc3ef4a-743d-41e9-99bb-a83bce5d2e8d","block_type":"box","text":"generate long-term financial returns.","page_number":219,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"870d5c45-0dff-4a25-b9ad-f3399d534e9d","block_type":"box","text":"14","page_number":219,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"dbe0b8f4-0ac2-4e07-a37f-679b31ce0b8c","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":219,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"22db193a-6fc4-4fe1-aacc-8f64d2fb2b82","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":219,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"1d9e158c-565b-41c5-b68a-948eedb26b51","block_type":"box","text":"15","page_number":219,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"7c6ddbc3-b282-454f-8101-736ee7e5e884","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":219,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"6c14e4e5-aa8a-446c-b2ca-d559ce102d24","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":219,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"4a4bcff7-6844-411b-af28-d8f544b1f39e","block_type":"box","text":"performance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":219,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"d47d153e-22f9-4ade-803a-34df63d8471f","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":219,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"3ff7c4e6-8ae7-4a5b-b81a-0a612cdabc34","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":219,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"28665fec-b205-48f9-97d2-b526aab8d4a5","block_type":"box","text":"more likely to deliver durable, long-term financial performance. By contrast, we have found that poor relationships","page_number":219,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"adb1646d-7760-48b6-9126-2c0428daa7b6","block_type":"box","text":"12","page_number":219,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"f446f2ca-8415-48e5-b197-0820bd9b93f4","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":219,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"6dbf5d4a-2cd8-4d4a-bf26-0232218fe4f4","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":219,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"55dc651d-f667-4263-9330-7786f1d736ce","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":219,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"745df295-11e5-4799-b1fd-9a681be70057","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":219,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"3109c422-b222-47d5-ac4b-2056c9e5287c","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":219,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"689aa6cc-b393-4310-a3d0-bfdf7ee61678","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":219,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"4f8104d4-4400-4094-8f54-ae09acf5bf95","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":219,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"48366c8a-fd08-4d19-81f9-50ab254b0375","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":219,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"e79c7cc7-d6e3-43b8-a78d-3629563a6115","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":219,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"c7ecb171-0237-43da-8977-36eba78e8480","block_type":"box","text":"13","page_number":219,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"6fe46608-1b69-4e19-a507-b50f559f932d","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":219,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"51f2bef4-06ff-49df-8b62-e7588ce1642d","block_type":"box","text":"2025.","page_number":219,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"2acf84f3-02b7-46ba-bd6c-0e5e4daf2f0e","block_type":"box","text":"14","page_number":219,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"87b8bcf3-e533-41a1-8652-41e466d92ece","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":219,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"fb7153ae-2e0b-4c18-af03-a5affa4cca60","block_type":"box","text":"2025.","page_number":219,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"6ad8cd7a-e467-4296-8264-9f1627d3c437","block_type":"box","text":"15","page_number":219,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"1b4fe527-de40-47ca-b65d-581a3856fb76","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":219,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"5f9b746e-06b2-44d4-9d5a-3e621c76d970","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":219,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"a574eb26-eed5-4530-8027-ca51b72b8747","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":219,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"891c396d-dad8-498a-811b-5fa4f52e012a","block_type":"box","text":"some companies may report using different standards, which may be required by regulation, or one of a number of","page_number":219,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"cd994dbf-5f9e-4bc9-8e8e-f4fadfeabde2","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":219,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"82706ba1-5f29-4d08-b8fb-d52453b06ee5","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"7933e187-9a64-43b5-a72b-91ea04f04bcc","block_type":"box","text":"Global Principles | 11","page_number":219,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"203e6f0b-9832-48d2-ab86-b8ab12f8bb29","block_type":"box","text":"NM1026U-5993100-219/236","page_number":219,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3c9bc4bd-0aec-4ecf-a40b-f0402181f668","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":220,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"d970034e-10e6-4a7b-b12a-2098d2f7f8f2","block_type":"box","text":"This is particularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":220,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"00e30811-7285-4374-b64a-ef073c1a7761","block_type":"box","text":"16","page_number":220,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"34634eb2-2c09-48a9-908e-418e2953d408","block_type":"box","text":"As a long-term shareholder on behalf of our clients, we find it helpful when companies disclose how they have","page_number":220,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"bb198bac-6c6e-4378-8936-31589ab9002e","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":220,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"3b7fb6b2-46b2-4108-93b6-31290890f78e","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":220,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"2a002281-c696-4ff7-804b-cfe08c5135d9","block_type":"box","text":"needs of their workforce today, and the skills required for their future business strategy. We are also interested in","page_number":220,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"51d1fae4-7926-4d0b-bc34-bbbd7b51c2df","block_type":"box","text":"understanding how the board monitors and engages on these matters, given it is well positioned to ensure that the","page_number":220,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"c56ebb4b-5331-4e59-8e70-4d98426de2ec","block_type":"box","text":"approach taken by management is informed by and aligns with the company’s strategy. BIS does not direct a","page_number":220,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"d41f9791-5bbf-40b5-8f67-a6e28983967d","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":220,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"6b8a06c4-181f-40c4-a800-e47e232ca501","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":220,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"9f06f908-01ad-4fac-961b-64ae903b4c54","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":220,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"1960b489-a860-48ff-8fa9-0e1c12fb8301","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":220,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"97bd114b-c6c8-4c13-9083-2a17cab392a7","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":220,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"2cfb5a92-c83c-44ef-a1b8-0e1b436b68f4","block_type":"box","text":"impacts.","page_number":220,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"7d959d73-38cd-4983-adfe-e5a594331dde","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":220,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"f17932b9-7325-4043-a1e2-b61c13721752","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or supporting a business relevant","page_number":220,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"825758dd-8c7d-4366-9cb2-919b0be78589","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":220,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"cc2261ae-8584-4f37-ac79-31403d32d8f6","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":220,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"32b2b293-37b6-44dc-a04f-f56ded88bb30","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on behalf of","page_number":220,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"fb7ee5ae-3efb-4f4d-9ae8-f0a6aa9c0213","block_type":"box","text":"clients at the global and regional level.","page_number":220,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"775b38b6-52c9-4b17-b097-15ecefacdefa","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":220,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"897a2bd5-db68-46c9-a599-a038b3a4d1fa","block_type":"box","text":"supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":220,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"401d3744-12b0-4d6b-b893-a655d35028d4","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":220,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"55a5f534-b1c1-41ff-bca3-8e292c90e3f6","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic reports regarding the votes cast by","page_number":220,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"926e1cad-3d6d-4cef-b257-927ceb496afb","block_type":"box","text":"BIS on behalf of clients, as well as updates on material process issues, procedural changes, and other risk oversight","page_number":220,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"118d8907-6d90-4397-ae2c-258a0994b49d","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":220,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"717f9229-30f2-4951-bc38-7c2ca6c476c1","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":220,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"5801f847-8303-4da1-9f82-860f7985a8c1","block_type":"box","text":"are independent from the investment stewardship function.","page_number":220,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"a0840568-331a-48a5-96c6-88a001a5cf42","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":220,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"4446cb24-c62a-43fd-9b55-8d68ac991d54","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":220,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"3f5d8cea-4512-4912-ab2d-eee7975b52d4","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":220,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"742e1780-35d2-4506-aba4-c3466ae1c647","block_type":"box","text":"VOTE EXECUTION","page_number":220,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"7cb93c52-e1ae-4ff4-babb-1dcf87663884","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":220,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"1bc8a7f2-c2fa-4e22-8167-66b5110f2dc0","block_type":"box","text":"processes in place to consider all proxies for which we have voting authority, and submit voting decisions, or refrain","page_number":220,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"52fc24be-595f-46be-abfa-7e6e81ae7b23","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":220,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"a8091096-88f0-431e-a5eb-9ccaed78a946","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":220,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"0f795c5c-d032-4092-be5c-17e868dbdb60","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":220,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"ca78e581-3acd-483f-88e3-b2d1d33f4beb","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":220,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"9813961a-9f89-4b65-acae-b8a89105f46c","block_type":"box","text":"management policies and procedures,” below).","page_number":220,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"a2ef05ba-3578-44a7-9a68-407ca492609a","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":220,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"d767c5a1-f4f8-4137-a3ab-ea9334edec63","block_type":"box","text":"of voting such proxies on behalf of our clients. These issues include, but are not limited to: 1) untimely notice of","page_number":220,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"372e2836-d4ee-48d6-af49-c4af69e184aa","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":220,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"4e253b1c-bf19-45ed-956b-804cf40a5677","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":220,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"fd69181c-85e4-4327-85fb-3c2893ae8900","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the after the shareholder meeting","page_number":220,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"0121d98c-ef9a-41d2-abd9-031b9f0de898","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":220,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"db07da11-cb41-40b6-997f-51ae7bc39549","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to","page_number":220,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"405c1e7f-bd28-4edd-9883-36f804544827","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":220,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"f0f90396-1a54-4a41-b2c5-2efd7469de49","block_type":"box","text":"16","page_number":220,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"158257e1-bf84-4a58-9623-76ee87a9fc38","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":220,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"efe2c547-dcfe-410e-8e20-0c56fc2a858b","block_type":"box","text":"December 2025.","page_number":220,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"08be19f4-840b-4d23-836d-df1f7b9b0678","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"726844bb-bf3a-4fa1-8047-3296757841d3","block_type":"box","text":"Global Principles | 12","page_number":220,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"a5f60948-274e-4f38-9a5b-ea0269238dd0","block_type":"box","text":"NM1026U-5993100-220/236","page_number":220,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1eed5554-d218-4630-992e-08b1ea65b9ad","block_type":"box","text":"BIS votes proxies in these situations on a “best-efforts” basis. In addition, BIS may determine that it is generally","page_number":221,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"4c99d5cc-2ee3-489a-baec-a6c989057a0f","block_type":"box","text":"in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs (including but","page_number":221,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"0e94eb8a-c069-490f-8c7d-b05c10dfcda7","block_type":"box","text":"not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":221,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"2aca36c4-b3bc-463c-be30-9d8a28ed46aa","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":221,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"2889e5b7-65f5-4e9b-8985-c0c2546d306e","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":221,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"7f739327-21b4-455c-84cb-89aa8e9e1598","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business partnership or","page_number":221,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"30b0621b-e337-4e55-ab9d-d98e2a342084","block_type":"box","text":"enterprise-level vendor management activities.","page_number":221,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"e5feaf35-0ec6-4274-a17c-c1ad516229b4","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":221,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"f7b5d32f-4afe-48e8-8085-d246ef3e43cd","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":221,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"fbbd7885-c3bd-4869-a881-f2f9d38e7661","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":221,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"51b46dc3-bf74-4a35-9729-291dae720077","block_type":"box","text":"BlackRock employees.","page_number":221,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"72b89be4-e249-4371-853a-f4f84f9fe71f","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":221,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"fff2e156-71b0-479c-ab0e-487648ddd8f0","block_type":"box","text":"SECURITIES LENDING","page_number":221,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"9b12313f-bb22-4b9f-b2a0-f95acb7d866e","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":221,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"23ecff8d-bc8d-4e59-a069-988692991b97","block_type":"box","text":"enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending agreements allow it to","page_number":221,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"4ee99b20-93c5-4048-8e68-5abfce5c09ec","block_type":"box","text":"recall securities out on loan at any time. BlackRock (or any other lender) does not retain voting rights for securities","page_number":221,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"e4e9e3dc-cee6-436e-9a0f-969b8f6753a4","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":221,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"0807b718-95b5-41b2-9deb-1579c10ccded","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":221,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"93bc2bba-b395-4d0d-8664-521de33d02c1","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":221,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"f2d80ba5-7df0-4c1c-8bed-756790d07d12","block_type":"box","text":"loan and may determine to recall them for voting, as guided by our fiduciary duty as an asset manager to our clients","page_number":221,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"e01e5c32-8613-46d9-8de6-1289f4f639b7","block_type":"box","text":"in helping them achieve their investment goals. 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All other trademarks are those of their respective owners.","page_number":223,"box":{"x":70,"y":898,"width":624,"height":11}},{"id":"f7022cf6-8c68-4deb-ace3-da43278999a5","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d35346d0-321b-4f7a-8a33-503fd56c0d2a","block_type":"box","text":"Global Principles | 15","page_number":223,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"f9f07f0d-effb-4f23-a740-80c16986055c","block_type":"box","text":"NM1026U-5993100-223/236","page_number":223,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"625cd67f-747b-4946-b0a5-00d25cd4e1a6","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":359,"y":45,"width":260,"height":11}},{"id":"a20147c7-2b01-4bba-95f5-4d2cc02981e6","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines","page_number":224,"box":{"x":297,"y":67,"width":384,"height":11}},{"id":"f28c44e0-c19a-4f42-bcb8-5a1e5faac888","block_type":"box","text":"Effective as of January 2026","page_number":224,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"48e62f2d-4afe-4940-a47f-0ad558220051","block_type":"box","text":"NM1026U-5993100-224/236","page_number":224,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fa2fc7e1-c679-4f04-bae0-4bf30e28dcae","block_type":"box","text":"Contents","page_number":225,"box":{"x":456,"y":45,"width":66,"height":9}},{"id":"a4e42ee8-9207-4ce1-9f6a-11617dfe1834","block_type":"box","text":"Introduction to BlackRock Investment Stewardship 3","page_number":225,"box":{"x":69,"y":80,"width":840,"height":11}},{"id":"2227eb71-ea1b-437b-9f71-959b82050764","block_type":"box","text":"Stewardship for clients with investment objectives relating to the low-carbon transition 3","page_number":225,"box":{"x":68,"y":96,"width":841,"height":11}},{"id":"be89b5e6-dd73-4e5c-a8ea-880355eb2fe4","block_type":"box","text":"The Climate and Decarbonization Stewardship Guidelines 3","page_number":225,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"4ac38134-0cdd-40c8-9714-269f66787055","block_type":"box","text":"Understanding the investment implications of the transition to a low-carbon economy 4","page_number":225,"box":{"x":69,"y":129,"width":840,"height":11}},{"id":"6a6ced26-10d5-41b3-91a5-e21de22e52ac","block_type":"box","text":"The Guidelines’ design principles","page_number":225,"box":{"x":68,"y":146,"width":240,"height":11}},{"id":"4413980c-b81f-49e1-a6fb-11c692805c79","block_type":"box","text":"4","page_number":225,"box":{"x":900,"y":146,"width":9,"height":8}},{"id":"8905d4d0-7a16-4cfd-9e0b-e373caaf5377","block_type":"box","text":"Voting approach under the Guidelines","page_number":225,"box":{"x":68,"y":162,"width":273,"height":11}},{"id":"7be20438-5913-4c68-81bf-f890c769bf83","block_type":"box","text":"5","page_number":225,"box":{"x":901,"y":162,"width":8,"height":9}},{"id":"34050454-2b78-4de7-af59-bb25decfe3ba","block_type":"box","text":"Related matters","page_number":225,"box":{"x":69,"y":178,"width":117,"height":9}},{"id":"b50c5b29-ec3e-4094-857b-235859f9a12d","block_type":"box","text":"8","page_number":225,"box":{"x":900,"y":178,"width":9,"height":9}},{"id":"474a4408-375b-4a09-a757-928c3724cf63","block_type":"box","text":"Appendix 1","page_number":225,"box":{"x":68,"y":195,"width":82,"height":11}},{"id":"4696942d-a1d6-499e-af01-7f3178aa8141","block_type":"box","text":"10","page_number":225,"box":{"x":891,"y":195,"width":18,"height":9}},{"id":"344acd6a-7be9-451c-8f76-78f64519a0db","block_type":"box","text":"Appendix 2","page_number":225,"box":{"x":68,"y":211,"width":82,"height":11}},{"id":"8e3a6fb0-0d72-445f-a797-e32a0c0edd90","block_type":"box","text":"11","page_number":225,"box":{"x":891,"y":211,"width":18,"height":9}},{"id":"ae92508d-b3df-44cf-b5c5-a7df7da87a83","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"211e6eb3-f5e9-4c77-91da-f8110ffb3927","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 2","page_number":225,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"9bcf867b-5bbb-4e7f-a3c7-8e50c2e27475","block_type":"box","text":"NM1026U-5993100-225/236","page_number":225,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9dec7f03-4133-4697-ac47-82a980a25784","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":226,"box":{"x":264,"y":45,"width":450,"height":9}},{"id":"2d49fe57-818f-446f-a178-a031db7cf88e","block_type":"box","text":"At BlackRock, investment stewardship serves as a link between our clients and the companies they invest in and","page_number":226,"box":{"x":101,"y":68,"width":807,"height":10}},{"id":"10d53df9-e3d3-4478-bf99-e926c0934b04","block_type":"box","text":"is one of the ways we fulfill our fiduciary responsibilities as an asset manager on their behalf. 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Under the Guidelines, the dedicated team","page_number":228,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"f0e20e7a-22b6-4765-b98e-ceab944dc730","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":228,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"6f216fe0-49ae-4e79-b8e8-a214fa0d352f","block_type":"box","text":"judgment of the priorities and outcomes most aligned with participating clients’ investment objectives.","page_number":228,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"a81744ff-0143-4663-8b58-119bb23ae082","block_type":"box","text":"Voting approach under the Guidelines","page_number":228,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"0fa972ca-db36-42d4-8997-ee4763e5a7b9","block_type":"box","text":"12","page_number":228,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"30876e8b-a6f3-4ba8-a2d5-81b8206820ff","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":228,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"8f3a1eea-2e8b-4156-8a12-5adc98e245f6","block_type":"box","text":"case-by-case approach that reflects the uneven pace of the low-carbon transition across sectors and markets, and","page_number":228,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"970848e0-e113-40e5-af05-c76a28310e66","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":228,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"cabfcf64-2fd6-4a2c-b70e-4f106a5bad01","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":228,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"054fe05b-d937-4999-9c04-f2caf63bf12f","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":228,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"80060889-14b4-402d-8e6f-cfc7d7fd4c10","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":228,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"c07e2ae8-1aab-415c-8fa0-5e5c0fe99aab","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":228,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"fb099775-b340-4a97-ba64-a58a7cec9305","block_type":"box","text":"Corporate Disclosures","page_number":228,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"d0f369a1-a51e-4b32-ac89-669c5e4984c0","block_type":"box","text":"13","page_number":228,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"ec339d6c-a3cf-43ad-a360-4869ecb4cd98","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":228,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"37cf96f1-2214-4d59-8962-264b10d346e7","block_type":"box","text":"assess whether the company’s strategy is aligned with the low-carbon transition. As a general point, the team looks","page_number":228,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"3aff282d-e7b3-4869-b681-eded222f1642","block_type":"box","text":"to companies that are important to the transition to a low-carbon economy to explain the strategy and governance","page_number":228,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"a227899e-50b1-45ca-b4db-4234c7d56b91","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":228,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"1533d787-c31f-42ca-bc2a-fe714927507d","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":228,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"5ab61a44-d110-4fdf-b995-83a15706c8de","block_type":"box","text":"temperature rise to 1.5°C above pre-industrial levels. This would typically include a long-term strategy to achieve","page_number":228,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"c5bc15f5-4675-4d8d-8a0b-d36d16ce878d","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":228,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"141f4db7-90ec-444d-9168-b5857e8466d1","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data supports investors","page_number":228,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"a12a93e3-699f-408a-b7c1-dbfa962dea5e","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":228,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"77fb56e3-d8be-4864-9299-b13a46a6f111","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":228,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"82f91558-95d7-4f8f-86af-399f2388f01c","block_type":"box","text":"14, 15","page_number":228,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"eb1b3e03-fded-41f2-a493-29f573e85ff1","block_type":"box","text":"IFRS","page_number":228,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"7b93024e-e7a6-4a58-aacf-e6330c63d489","block_type":"box","text":"S1 addresses the general requirements of sustainability reporting and IFRS S2 sets out the disclosures that","page_number":228,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"d1936680-3281-4cb2-b31c-130fb1a9940c","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":228,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"cb9079be-a85d-4498-82ec-71f7a5c6486f","block_type":"box","text":"transition-related risks and opportunities. This includes receiving independent, third-party assurances, as audit","page_number":228,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"016b7161-10bd-4d6a-b91d-dce945a05a14","block_type":"box","text":"and assurance standards are developed.","page_number":228,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"2e5cf0f9-baa2-4b4c-ba4b-df3db65f7eab","block_type":"box","text":"12","page_number":228,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"f185aeeb-8792-4e6b-b679-6a0705c4374f","block_type":"box","text":"These Guidelines are not intended to limit the analysis of individual issues at specific companies or provide a guide","page_number":228,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"e184a68d-b52b-4831-8935-af820f08b61f","block_type":"box","text":"as to how the dedicated team will engage and/or vote in every instance. The Guidelines are applied by the dedicated","page_number":228,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"3c7afaf8-3296-4e99-a304-b5c1cfa0e4da","block_type":"box","text":"team with discretion, on a case-by-case basis, taking into consideration the range of issues and facts specific to the","page_number":228,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"1c3888c1-e51e-498f-96ce-690c12e817e0","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":228,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"0a4460e7-fddb-4ef6-9dc5-986ef7b44c48","block_type":"box","text":"13","page_number":228,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"913216f3-191a-440f-a9f7-c0c3a200ca99","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":228,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"9d4b7fa5-c57f-44b0-89e1-84de54aae3e9","block_type":"box","text":"reporting methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their","page_number":228,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"0ab6e7a1-0dd6-471d-b2c2-9aaef6c8e83c","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":228,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"d35feb64-0d68-4cb9-99af-497ffbcd50f5","block_type":"box","text":"14","page_number":228,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"24a332af-8837-4453-8ba4-bc3abea27f67","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":228,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"7afa2728-a241-4ce3-83bc-61e502d15ad4","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":228,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"e3b6bb64-ecff-4868-97ec-1009d9899e62","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":228,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"e535c9bd-cbf5-492b-8afc-10823be8cc45","block_type":"box","text":"converged under the ISSB. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":228,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"d2de0275-0756-4450-949f-04bbd93d3414","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":228,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"2e456f10-4d9a-45f3-98b2-1a1dec1d0f2d","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":228,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"d376c98c-84a5-4e42-ad7a-e28648ca7e82","block_type":"box","text":"15","page_number":228,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"c76c5128-38f1-4091-9153-4a95bbd8d5b6","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":228,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"9fa593ae-b234-41dc-bf5d-31a8916616c0","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":228,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"77b2ccea-154e-47c3-9a80-61424e6871fa","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we","page_number":228,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"75eafa6a-087f-4038-b76d-713a18c93b1c","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":228,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"08c9008e-8394-4d57-925e-7ad7586e5d73","block_type":"box","text":"may be phasing in reporting over several years. We do not prescribe timelines regarding when companies should","page_number":228,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"a65049b4-e37f-40a1-9a06-d04b6a141f35","block_type":"box","text":"BlackRock Investment Stewardship","page_number":228,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"492ef4f9-437c-4fb2-b379-088cf56b1e90","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":228,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"88a491c9-ef62-400f-9489-6a5a724a4e3d","block_type":"box","text":"NM1026U-5993100-228/236","page_number":228,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"84227fba-b83f-40e5-a70c-0ed7aa817ea7","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":229,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"45bef8c0-8f8f-4f1b-b70a-af32f419fa9c","block_type":"box","text":"16, 17","page_number":229,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"2b314ca9-76f9-4cf2-9cdf-21cdad49cf8e","block_type":"box","text":"In addition, the dedicated team looks to","page_number":229,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"c317b600-17c3-448e-9cf5-6e2f780dc584","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":229,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"cc79fb9d-b9fb-4c1e-8532-ea4485ec98b0","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":229,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"54711c59-e868-4f7a-bd73-6c78d9d4bb66","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":229,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"fc8cdb9e-7989-4be2-a582-f3905dfbc360","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":229,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"6e6507b7-7e6f-4e43-bb1a-44d4020cac92","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":229,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"e0db4b63-73de-4ada-b874-3b6e9822bb05","block_type":"box","text":"18","page_number":229,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"cbb3e358-cdce-477e-a21e-62a3a4db180b","block_type":"box","text":"However,","page_number":229,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"56a8e970-0d19-440d-860e-c4f1d2223b8d","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different parts of","page_number":229,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"13a8958c-0551-4b82-9978-6fcc95049432","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":229,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"299bbc6d-d389-4101-bbe5-35b68bb2633e","block_type":"box","text":"their decarbonization targets. 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As defined by the ISSB, a transition plan “lays out the entity’s targets, actions or resources for","page_number":229,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"1a4fa1e7-ee5d-45ab-854c-717911ec73d3","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":229,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"55fd3808-5a90-4a71-94c4-e4eb841d5f20","block_type":"box","text":"(see Appendix 1).","page_number":229,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"e310d999-6307-489d-abd2-61ddd2479cdc","block_type":"box","text":"19","page_number":229,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"d1df2819-135c-49b1-b9d9-74d08e24ba17","block_type":"box","text":"Work is also underway in a number of jurisdictions on establishing a common approach in a market to corporate","page_number":229,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"5bef1238-7fb1-403c-bea8-9c531169edfb","block_type":"box","text":"transition plans.","page_number":229,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"43934197-1089-4e7c-9bf0-172f7eaffd92","block_type":"box","text":"20","page_number":229,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"892a5207-406f-4f0c-b461-dd78b98d52ac","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":229,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"cdcf6d86-31ad-4496-847e-1d86af49277d","block_type":"box","text":"reporting approaches.","page_number":229,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"2ae8f42f-0781-4a4e-9057-8ffe31ee7bc0","block_type":"box","text":"While the preparation of a transition plan, or lack thereof, is not, in itself, a voting issue, these disclosures","page_number":229,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"788c6052-d3df-4d39-b9e6-962b7e647ea4","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":229,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"b90356de-5a56-43a0-bd60-a1cb6577416c","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":229,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"2ab513e2-cac5-437e-b228-70523e486cef","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":229,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"d993869b-2ddb-4fae-b4ab-fb01ddbfb05e","block_type":"box","text":"their shareholder meeting, to the best of their abilities, to provide investors with time to assess the data and make","page_number":229,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"322a5de7-4317-46d6-a66e-7e7db229ebf3","block_type":"box","text":"informed voting decisions.","page_number":229,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"c727b434-66e6-44f7-b7bd-a1b3ebe522d0","block_type":"box","text":"16","page_number":229,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"1467a179-4468-4356-9e18-b480346f041e","block_type":"box","text":"FTSE Russell address the materiality of different categories of scope 3 GHG emissions by sector in a January 2024","page_number":229,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"1cbcbfb1-e70d-496f-82e4-dfcddb73bab8","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":229,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"ab180bb8-be07-4a5a-8998-65f9c0280279","block_type":"box","text":"December 2025.","page_number":229,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"424d3f24-9618-414e-af46-2b22355683ac","block_type":"box","text":"17","page_number":229,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"3abbd054-014f-4fdf-8f81-0577d52be99c","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":229,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"3d422675-08f2-436f-9e22-24caf99cabff","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":229,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"5203355b-37ca-48d4-ad96-0e4f5b7f8772","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":229,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"f4fb6639-4e87-4dc4-8616-be3c7614a6a3","block_type":"box","text":"science-based and net-zero targets in line with the global 1.5°C goal.” Websites accessed in December 2025.","page_number":229,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"79befee5-056d-46c3-8eca-245b0f319b4d","block_type":"box","text":"18","page_number":229,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"ab04ec59-bdbe-47c7-b196-1e2cdf7a834d","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":229,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"34b3cffa-06a8-4c3b-b284-49b7e73d15b8","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":229,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"eb0bb4c7-7848-45a6-960a-db0facef8bf6","block_type":"box","text":"complexity for scope 3 emissions and the lack of direct control by companies over the requisite data, we find it most","page_number":229,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"1cf35fc9-c08d-4d9c-b0d8-73d15311cb6a","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":229,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"b18f4ceb-a32e-47f1-8a3e-45c934ae3ac9","block_type":"box","text":"material to their business models.","page_number":229,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"c9c0d3b1-019a-416a-95f0-f86332f5bf86","block_type":"box","text":"19","page_number":229,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"87380d42-84bb-453b-84af-454a87b0a322","block_type":"box","text":"International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":229,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"1ee932e2-7da9-47c9-a57d-f27b05fd1ef6","block_type":"box","text":"December 2025.","page_number":229,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"4fcc7801-e800-40fe-af9f-3ffc9a2a50e4","block_type":"box","text":"20","page_number":229,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"4052edd7-90a0-44d0-b7ad-f907c6ac1415","block_type":"box","text":"More companies are developing such plans, and public policymakers in certain markets are signaling their","page_number":229,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"f27733bf-64d1-4950-8f85-3ccb374b4816","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":229,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"c2e593c6-5dd6-4859-92ab-906f0cd3fde6","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":229,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"23379214-4dc7-4ed9-9116-cbaa2309873b","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":229,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"15bcf82c-f138-40e6-93c3-2e9610a472ba","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":229,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"dea386ec-b902-472d-bcc2-4272b5070264","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Given forthcoming regulatory requirements in certain jurisdictions, some companies are voluntarily","page_number":230,"box":{"x":101,"y":420,"width":774,"height":11}},{"id":"17948f4e-6d2e-4178-88c2-c6040728d1db","block_type":"box","text":"disclosing scope 3 emissions reductions targets and plans, setting out how they are working on decarbonization","page_number":230,"box":{"x":101,"y":435,"width":800,"height":11}},{"id":"0015c61c-beea-423f-941b-5d2885a07877","block_type":"box","text":"with the different constituents in their value chain.","page_number":230,"box":{"x":101,"y":450,"width":358,"height":9}},{"id":"8f396768-c2d5-4e09-8164-67f218565155","block_type":"box","text":"21","page_number":230,"box":{"x":461,"y":451,"width":9,"height":4}},{"id":"2141e54c-bc52-48c3-85b5-535364e0dd26","block_type":"box","text":"•","page_number":230,"box":{"x":69,"y":473,"width":6,"height":5}},{"id":"50b7cfd5-33ed-49d2-8448-554c32d5ed62","block_type":"box","text":"The company’s governance and oversight processes for managing material risks associated with corporate","page_number":230,"box":{"x":101,"y":470,"width":761,"height":12}},{"id":"8ea24d68-47e5-4268-b293-b1b656443d43","block_type":"box","text":"political activities including applicable policies and procedures where relevant.","page_number":230,"box":{"x":102,"y":486,"width":556,"height":11}},{"id":"b82acdb6-ccbd-490a-a153-d2b7b65a8e4a","block_type":"box","text":"22","page_number":230,"box":{"x":660,"y":486,"width":8,"height":4}},{"id":"43b9fb7a-8f8a-4899-9e01-6913aa7f57f6","block_type":"box","text":"The dedicated team looks for","page_number":230,"box":{"x":674,"y":486,"width":208,"height":9}},{"id":"3081a192-e5ff-4663-89c6-44f49b1d191d","block_type":"box","text":"public policy engagement to be consistent with a company’s stated strategic policy objectives, including those","page_number":230,"box":{"x":102,"y":501,"width":783,"height":11}},{"id":"f625a046-929e-4ac3-9447-bfe47217cab6","block_type":"box","text":"related to the low-carbon transition.","page_number":230,"box":{"x":102,"y":516,"width":251,"height":9}},{"id":"a230add4-e12d-4092-87a2-6bd6cc836ac8","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":230,"box":{"x":68,"y":546,"width":420,"height":11}},{"id":"3fde88de-9dce-4e31-a734-701347c9f710","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally supports non-executive directors standing for","page_number":230,"box":{"x":102,"y":569,"width":781,"height":11}},{"id":"2a4477a0-85a4-4000-8ff7-5ddec2665e7c","block_type":"box","text":"election where, in its assessment based on company disclosures and engagement, a company is executing on its","page_number":230,"box":{"x":69,"y":584,"width":811,"height":11}},{"id":"a0605deb-2ab1-4720-b2eb-32bf52cb829b","block_type":"box","text":"commitment to align with the transition to a low-carbon economy, as defined above. 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The directors most likely to be in focus are the chair of the board","page_number":230,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"9a4c7664-b938-445c-9b85-40f168af61d7","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":230,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"b7718205-bad1-4444-be89-46e332b011ee","block_type":"box","text":"relevant committee, the lead independent director or the non-executive chair of the board. 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The Guidelines consider these","page_number":231,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"723dd198-efc6-4988-8cfd-4988769ac65a","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":231,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"b7091bd6-f40b-4f88-b2c5-2bdf7327a661","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally supports management’s climate","page_number":231,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"5be2b62e-9aef-4bf2-bfe9-e12bf8f8e4b3","block_type":"box","text":"strategy proposal if, in the team’s assessment based on these Guidelines, the strategy is aligned with the low-carbon","page_number":231,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"47a0dfe4-8b2d-4080-8d35-ef72a29a2a87","block_type":"box","text":"transition. Similarly, the dedicated team generally supports management’s proposal on a progress report if the","page_number":231,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"d4b92147-35cb-45a9-a172-4048ec6e0a0f","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":231,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"173977ee-b3b6-42cc-86d6-cc216992f140","block_type":"box","text":"transition plan and targets.","page_number":231,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"34851838-0749-4cb3-afea-9ee75312f279","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":231,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"da15a959-0b68-4551-a782-bdf7adaa82bb","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":231,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"1d262690-e63f-47bc-a4f7-016fe7f9fa1d","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":231,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"9ef80ed4-032d-4211-b2e0-b80e7d405b83","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may support","page_number":231,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"f5e82db2-02bc-401b-b53f-bc58c453e379","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":231,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"66052216-a284-402c-9bc4-649fa3f6e6ac","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"8a47685d-b82a-4991-abae-3ddf72603ed6","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":231,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"5da0ad88-7971-4189-89ba-11301f6e1154","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":231,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"85f00ea5-807b-4399-8065-920f9ddeab99","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"08d18b5b-ef74-4ba1-9f13-8cf766155ff4","block_type":"box","text":"Align scope 1 and 2 GHG emissions reduction targets to, and/or discuss how their targets align with, a long-term","page_number":231,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"8e438535-34f7-4d9a-a187-335d246d6ff2","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":231,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"2e4e8660-db05-439e-8c91-a0a01730c529","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"acedb63c-732b-443f-83a4-589452b7fff0","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":231,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"7364b889-bed6-4693-a08f-2613fbdc71d8","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"12a7698a-bf81-4eac-ba9d-267aae953d24","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":231,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"c411135f-0eec-4b2c-a9db-d261baccc752","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":231,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"ae0c7ef5-12d5-41a0-9172-085960df919e","block_type":"box","text":"25","page_number":231,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"444721ee-af55-4f41-9aca-1ee827e6588a","block_type":"box","text":"The dedicated team does not support shareholder proposals that seek to constrain board or management","page_number":231,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"3e163a42-8597-4fae-8dc1-a58d0bc6d27d","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":231,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"0db82725-c1be-4423-8a78-dcffa6a9a09e","block_type":"box","text":"RELATED MATTERS","page_number":231,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"b85d648c-ea61-4402-a7d3-4f7999889d9e","block_type":"box","text":"There are other business items not covered above that may be put to a shareholder vote that could address","page_number":231,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"9cbad345-081b-4d15-8aee-cb58c37c6966","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. 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Some companies, in light of their long-term strategy, may decide to include relevant","page_number":231,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"10d01f8b-a6cc-4914-b261-1ad5af2e70f8","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. 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The dedicated team will continue to take a","page_number":231,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"f6d71101-a9eb-472d-b1f0-bcf26fd14fa2","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":231,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"ceafad2e-0489-4133-a0c8-d060619fb7af","block_type":"box","text":"25","page_number":231,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"737f34d7-1d38-4077-9aca-853cd11325d0","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":231,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"064566bc-7e23-4a91-acab-4ec4c15ec2ae","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":231,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"c44271cb-0a1d-4370-81a6-85ff9e8b9737","block_type":"box","text":"BlackRock Investment Stewardship","page_number":231,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4c875798-369c-4414-8aa0-d1054f0d062b","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":231,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"d4fe95c4-13d5-4131-9a56-b82d15237dcd","block_type":"box","text":"NM1026U-5993100-231/236","page_number":231,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7ff34e13-31bf-4402-9957-26e3cca9e258","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":232,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"03c765c8-5a31-4602-ba9c-1946b3c56ae6","block_type":"box","text":"strategy and risk management.","page_number":232,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"4f88d9dd-71bc-43af-9a45-762e75429933","block_type":"box","text":"Auditors and audit-related issues","page_number":232,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"bbb5f4bb-4982-4c8a-b413-1b28a0aaa148","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the dedicated","page_number":232,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"0616f7e3-fed4-4b8a-abd9-a3a8583732da","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":232,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"d3dbe217-8f62-451d-8a32-32ba5bd235d2","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":232,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"d6a6a3ac-7ec4-4e25-a4d0-2119ec7d78a1","block_type":"box","text":"context of its audit report. 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These include a company’s impacts or dependencies on natural capital and key","page_number":232,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"6428ca3f-6476-4139-af23-98600b35d0c9","block_type":"box","text":"stakeholders.","page_number":232,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"6538ea92-f9df-4bae-9b94-e12a3ccda308","block_type":"box","text":"26","page_number":232,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"1faec3c3-cf46-4fcd-9c1d-a25033059ba8","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":232,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"e849520c-298d-43da-bf3b-63fd65298bf2","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":232,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"fd046d36-c82e-448c-aac4-87e5908cfaa7","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. 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This can be carried out by countries, companies and even","page_number":233,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"458f0282-2cef-403a-9c70-3bb3623a7432","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":233,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"799b7b8d-9117-42a1-a933-94748a9bacd6","block_type":"box","text":"e.g., methane.","page_number":233,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"e8d2c872-ecd9-4fe5-a95f-4d6728c0ee8a","block_type":"box","text":"Climate-related risks and opportunities:","page_number":233,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"bf8775fc-06d7-4097-a77d-7df47f6c25f0","block_type":"box","text":"The investment opportunities and risks associated with the transition","page_number":233,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"0ffa8beb-93ac-4931-9275-da64486e84b7","block_type":"box","text":"to a low-carbon economy, including transition risks and opportunities and physical risks and opportunities in adapting","page_number":233,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"10f6e69a-e0f2-4d12-93f1-840a59c22564","block_type":"box","text":"to physical climate change.","page_number":233,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"c30c0cc7-16ef-424f-a2fc-1fac5dd83dde","block_type":"box","text":"Climate-related transition plan:","page_number":233,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"22385a8a-07c9-4678-b410-d4738d245202","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":233,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"445e9f98-33c5-41cb-b9f8-b5d722643a8a","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":233,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"661f6a95-7450-49e2-a68d-40bd549722ce","block_type":"box","text":"greenhouse gas emissions.”","page_number":233,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"7abb90ce-079d-4bec-b84e-6a23e8dc3e1e","block_type":"box","text":"27","page_number":233,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"09423c82-d335-4583-b3a0-46fef9e15ed8","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":233,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"5ed0bc41-bd7f-4026-bbb4-fecc99db43fc","block_type":"box","text":"Targets that “","page_number":233,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"47f39ac6-3390-4ff6-8365-482ba1f17359","block_type":"box","text":"are in line with what the latest climate science","page_number":233,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"be703724-2886-44aa-9f1c-06e2bd07d790","block_type":"box","text":"deems necessary to meet the goals of the Paris Agreement — limiting global warming to 1.5°C above pre-industrial","page_number":233,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"7bf61e3d-5417-4ff6-ac04-4b547b2594d9","block_type":"box","text":"levels. 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